[oecd] Bundling can provide both benefits and drawbacks to broadband customers. In general, bundled services are less expensive when purchased together and consumer surplus from one good in the bundle can help “subsidise” another less-valued element. Bundling also allows the integration of products in a way that benefits consumers such as by giving them unified billing, a common helpline number or the integration of voice mail message retrieval via the television set.
In other cases bundles can lead to situations where customers are worse off. Consumers may be required to purchase a bundle which contains one product they value and others they do not. Bundling also raises some significant concerns regarding transparency and consumer “lock in”. Bundles may make it difficult or impossible for subscribers to switch providers of certain bundled services and not others.
An OECD data collection of over 2 000 offers of stand-alone and bundled services from 90 firms across 30 OECD countries reveals that broadband services in the OECD are overwhelmingly sold as mixed bundles, allowing users to choose among stand-alone offers or bundled services. Of the 90 operators surveyed, 77% allow users to buy stand-alone broadband service. 17% tie broadband service to a fixed-line voice service and 4% require a television package to obtain broadband access. Only 2% of the offers surveyed required subscribers to take a triple-play service to have broadband.
Broadband bundles are typically sold with a significant price discount over stand-alone prices. The average bundled discount compared with buying the services separately is USD 15 (PPP) per month or 26%. The average price of a triple-play bundle across all countries and operators is USD 65 (PPP) per month, while the median price is USD 59 PPP. The average entry-level price for a triple-play bundle is USD 41 PPP per month.
Consumers often consider the incremental cost of adding broadband to an existing phone and television subscription. The minimum incremental cost of adding broadband service to an existing service ranges from USD 0 to 37 (PPP) across countries in October 2009. Overall, the average incremental price of broadband once a user already has a phone or cable line is USD 15 (PPP). This is, on average, a 32% reduction off the minimum stand-alone price available in the market.
Bundling plays a key role in extending broadband access to those who value it less than the lowest stand-alone price in the market. There are 14 countries where consumer surplus is maximized for a consumer by a bundle which includes a broadband component even when the user places a value on broadband below the minimum stand-alone broadband price in any market. Broadband is also a component of the welfare maximising bundle in two countries (Switzerland and France) even when the
user’s perceived value of broadband is set at zero.
The benefits to consumers largely derive from having a choice between stand-alone and bundled services and stand-alone offers still play a key role in maximising consumer surplus. The percentage of countries where a consumer’s optimal service selection includes at least one stand-alone service varies between 43% and 63% when users are willing to pay the OECD average monthly price for voice (USD 19 PPP) and video (USD 24 PPP) and their willingness to pay for broadband varies between USD 0–50 (PPP) per month.
The availability of stand-alone services will also play a key role in the competitive potential of overthe-top (OTT) services that allow consumers to watch video or make voice calls “over-the-top” of an existing broadband connection. The development and maturation of these services may lead to more users subscribing to just stand-alone broadband services. Because OTT services require a certain level of network quality to function correctly they should be considered in any debates surrounding traffic prioritisation/network neutrality.
The complexity of communication offers and bundles has made it increasingly difficult to understand and compare service prices and characteristics. A lack of transparent information about services and their prices makes consumer price comparisons more difficult and leads to market inefficiencies.
Regulators and consumer-protection agencies should encourage ISPs to provide more information on the characteristics of packages they are selling and to make prices clear and understandable for consumers.
Some regulators may consider requiring ISPs to include all services, fees and taxes clearly in one total price which is available visibly on the website. Websites and tools that can help users compare bundled offers are beneficial to the market and lead to stronger price and service competition. Regulators may be the best positioned to build these tools.
Bundled services can also lead to consumer lock-in for sub-optimal service choices if subscribers are not able to switch providers easily and with minimal expense. One of the key responsibilities of telecommunication regulators is to ensure that markets function efficiently and that consumers can switch providers when better offers appear – essentially “voting with their feet”.
Regulators should take steps to ensure that switching is as simple as possible for consumers by addressing any procedural, financial or relational switching barriers. Procedural costs can be addressed by requiring better price information from operators, seamless switching across providers and number portability across services. Ensuring users can port numbers at any time during a subscription and making porting available to over-the-top providers could also help improve consumer mobility.
Telecommunication providers often require minimum contract lengths to cover their fixed costs but consumers should be allowed to move to a month-to-month contract once the initial term is over.
Regulators and competition authorities may need to work together to address lingering problems with market dominance, noting that operators face varying levels of competition in different areas of the country. This may also include examining options for sharing infrastructure either via extended unbundling regulations or by investments in separated/mutualised infrastructure.
Incremental improvements in consumer broadband valuations can lead to higher broadband take-up and its resulting network effects in the economy. Boosting the perceived value of broadband (e.g. willingness to pay) to USD 25 (PPP) would make broadband a part of an optimal service mix in all OECD countries assuming consumers will pay the average OECD price for stand-alone voice and video.
Governments can work to increase broadband value by making more public-sector information available and reducing any barriers or disincentives to interacting with the government online. Governments can also increase the perceived value of broadband connections by helping to promote the adoption of smart-grid technologies for electricity, reducing bureaucratic blocks to effective e-health applications, developing innovative online transportation applications and making more e-learning options available.
Broadband Bundling: Trends and Policy Implications OECD Digital Economy Papers No. 175. DSTI/ICCP/CISP(2010)2/FINAL
Tuesday, March 01, 2011
Roaming Hubs - BICS and Vodafone are to interconnect their hubs for better management of roaming traffic
[telecoms.com] International carrier services collaboration BICS, which is formed of Belgacom, Swisscom and MTN, has pooled roaming resources with Vodafone Roaming Services to connect their respective roaming hubs. The move will initially simplify the administration of roaming traffic between the Belgacom, MTN, and Vodafone networks but will eventually expand to handle all operator members of both hubs.
As well as decreasing the administrative and technical tasks associated with roaming, the move will enable all operators on both roaming hubs to increase the number of roaming services and destinations they can market to, the firms said.
Whereas roaming agreements can be struck in a bilateral manner between two operators, creating more complexities and paperwork with each agreement, roaming hubbing seeks to improve the process by allowing operators to join hubs and have the hubs strike interconnect deals with other hubs.
“This cooperation is a major step for the mobile industry to guarantee seamless roaming for all mobile users when they cross national borders, and is a direct response to the expansion of the mobile environment globally in terms of subscribers, networks, technologies and applications”, said Daniel Kurgan, CEO of BICS.
Vodafone, BICS, polish up roaming hub deal
As well as decreasing the administrative and technical tasks associated with roaming, the move will enable all operators on both roaming hubs to increase the number of roaming services and destinations they can market to, the firms said.
Whereas roaming agreements can be struck in a bilateral manner between two operators, creating more complexities and paperwork with each agreement, roaming hubbing seeks to improve the process by allowing operators to join hubs and have the hubs strike interconnect deals with other hubs.
“This cooperation is a major step for the mobile industry to guarantee seamless roaming for all mobile users when they cross national borders, and is a direct response to the expansion of the mobile environment globally in terms of subscribers, networks, technologies and applications”, said Daniel Kurgan, CEO of BICS.
Vodafone, BICS, polish up roaming hub deal
REACH - Telstra and PCCW have completed a restructuing of the joint venture, clearing the way to further overseas expansion
[intl business times] Australia’s telco giant Telstra and Hong Kong-based telecom service provider PCCW have completed their Reach restructure. The two announced in January that the international assets in their 50/50 Reach joint venture would be divided between both parties. The remaining joint assets will continue to be managed by Reach in Hong Kong.
The restructure represents a milestone in Telstra International’s strategy to drive greater customer and shareholder value.
Telstra International’s expanded platform in the Asia Pacific region enables business growth and increased control over the end-to-end service delivery platform. This will allow its enterprise and global service provider customers to experience enhanced customer service, improved service management and delivery and more competitive market positioning.
As a result of the restructure Telstra International will have: direct ownership of more undersea cable assets in particular the Reach North Asia Loop; an international PSTN voice capability that already boasts the carriage of 4.5 billion minutes per year; additional Points-of-Presence globally thereby creating an extended product portfolio across all regions; the ability to transition the international voice network to Internet Protocol (IP) to allow more synergies between voice and data services; and, satellite services and associated base stations that reach over two thirds of the Earth’s surface.
Telstra is also acquiring additional global backbone and backhaul systems and a Global Roaming Exchange platform, otherwise known as a GRX.
Telstra International Executive Director Global Sales, Mr Philip Mottram said the greater control over the global assets will enable Telstra International to achieve operational efficiencies and reduce time to market for new connectivity and managed services, helping create an overall simpler customer service experience.
“At a time when customers are increasingly demanding support for innovative delivery models, this restructure will enable us to accelerate our new product development program which comprises the build, deployment and launch of new strategic products and services that address key emerging network and service provider market opportunities.
“This is an extremely exciting time for Telstra International, as we can continue to focus on driving connectivity into the Asia Pacific region, whilst streamlining processes and passing the benefits of enhanced customer service and more competitive market positioning,” Mr Mottram said.
Australia's Telstra, Hong Kong's PCCW complete Reach restructure
The restructure represents a milestone in Telstra International’s strategy to drive greater customer and shareholder value.
Telstra International’s expanded platform in the Asia Pacific region enables business growth and increased control over the end-to-end service delivery platform. This will allow its enterprise and global service provider customers to experience enhanced customer service, improved service management and delivery and more competitive market positioning.
As a result of the restructure Telstra International will have: direct ownership of more undersea cable assets in particular the Reach North Asia Loop; an international PSTN voice capability that already boasts the carriage of 4.5 billion minutes per year; additional Points-of-Presence globally thereby creating an extended product portfolio across all regions; the ability to transition the international voice network to Internet Protocol (IP) to allow more synergies between voice and data services; and, satellite services and associated base stations that reach over two thirds of the Earth’s surface.
Telstra is also acquiring additional global backbone and backhaul systems and a Global Roaming Exchange platform, otherwise known as a GRX.
Telstra International Executive Director Global Sales, Mr Philip Mottram said the greater control over the global assets will enable Telstra International to achieve operational efficiencies and reduce time to market for new connectivity and managed services, helping create an overall simpler customer service experience.
“At a time when customers are increasingly demanding support for innovative delivery models, this restructure will enable us to accelerate our new product development program which comprises the build, deployment and launch of new strategic products and services that address key emerging network and service provider market opportunities.
“This is an extremely exciting time for Telstra International, as we can continue to focus on driving connectivity into the Asia Pacific region, whilst streamlining processes and passing the benefits of enhanced customer service and more competitive market positioning,” Mr Mottram said.
Australia's Telstra, Hong Kong's PCCW complete Reach restructure
Zimbabwe - Mobile operators are now disconnecting unregistered customers on their networks, potentially large numbers involved
[new zimbabwe] ZIMBABWE’S three mobile phone companies at midnight began disconnecting customers who failed to register their sim cards by Monday’s deadline.
Industry regulator, the Postal and Telecommunications Authority of Zimbabwe (POTRAZ), introduced the new requirement in June 2010, initially setting a deadline of August 31 of last year for networks to keep details of their users.
At the end of August, however, only 3,8 million subscribers had registered their sim cards out of about 6,5 million mobile phone users in the country.
No figures were immediately available of how many more subscribers had registered by Monday night, but the networks have been ordered to stop services to unregistered users.
POTRAZ says registering mobile phone users, a standard in many countries around the world, will help in the fight against crime, but some civil rights campaigners are registering hesitantly given a high level of mistrust of the government. Most people don’t trust the government with their personal details in fear of surveillance.
But POTRAZ says it wants to, among other things, “combat transmission of messages or making of telephone calls that are … grossly offensive, obscene or threatening in nature; spread falsehoods for the purposes of causing annoyance, inconvenience or needless anxiety to any other person … (and) making a series or combination of telephone calls without reasonable cause for the purpose of causing annoyance, inconvenience or anxiety.”
The mobile operators – Econet, Telecel and Net One – have used notices on radio, television and newspapers to raise awareness of the registration deadline.
Requiring mobile phone users to register has the potential to stall telecommunications' spectacular growth of recent years, according to the forecast group IHS Global Insight.
"The introduction of mandatory registration of SIM cards in at least 10 countries has resulted in a dramatic slowdown in subscriber growth and will see the disconnection of millions of unregistered subscribers," IHS Global Insight said in a recent report.
The requirement has already negatively impacted South Africa, which has led implementation of the policy and gave customers until end of last year, as MTN and Vodacom recorded drops in users by 6.4 and 5 percent respectively.
Drops are expected elsewhere as nine other nations, which include Kenya, Cameroon, Ivory Coast and Ghana, and account for about 80 percent of subscribers in Sub-Saharan Africa, follow suit.
"As the registration deadline passes in each country, a significant one-off drop-off is expected as those unregistered SIM cards are deactivated," IHS said recently.
A similar move by Algeria in 2008 hit subscriber numbers. The second biggest operator Mobilis had nearly two million SIM cards de-activated and revenues fell to $140 million in fourth quarter 2008 from $173 million in 2007.
The United Nations has noted that the ease with which Africans can get mobile phone lines, which they can now buy on the streets - with no need for documentation - has helped swell official user numbers from just one million in 1996 to an estimated 350 million by the end of 2009.
Other countries requiring mobile phone users to register include Japan, Australia, Thailand and Germany. United States lawmakers last month unveiled a bill to identify pre-paid users to stop terrorists, drug dealers and gangs from using unknown numbers.
Mobile networks disconnect unregistered customers
Industry regulator, the Postal and Telecommunications Authority of Zimbabwe (POTRAZ), introduced the new requirement in June 2010, initially setting a deadline of August 31 of last year for networks to keep details of their users.
At the end of August, however, only 3,8 million subscribers had registered their sim cards out of about 6,5 million mobile phone users in the country.
No figures were immediately available of how many more subscribers had registered by Monday night, but the networks have been ordered to stop services to unregistered users.
POTRAZ says registering mobile phone users, a standard in many countries around the world, will help in the fight against crime, but some civil rights campaigners are registering hesitantly given a high level of mistrust of the government. Most people don’t trust the government with their personal details in fear of surveillance.
But POTRAZ says it wants to, among other things, “combat transmission of messages or making of telephone calls that are … grossly offensive, obscene or threatening in nature; spread falsehoods for the purposes of causing annoyance, inconvenience or needless anxiety to any other person … (and) making a series or combination of telephone calls without reasonable cause for the purpose of causing annoyance, inconvenience or anxiety.”
The mobile operators – Econet, Telecel and Net One – have used notices on radio, television and newspapers to raise awareness of the registration deadline.
Requiring mobile phone users to register has the potential to stall telecommunications' spectacular growth of recent years, according to the forecast group IHS Global Insight.
"The introduction of mandatory registration of SIM cards in at least 10 countries has resulted in a dramatic slowdown in subscriber growth and will see the disconnection of millions of unregistered subscribers," IHS Global Insight said in a recent report.
The requirement has already negatively impacted South Africa, which has led implementation of the policy and gave customers until end of last year, as MTN and Vodacom recorded drops in users by 6.4 and 5 percent respectively.
Drops are expected elsewhere as nine other nations, which include Kenya, Cameroon, Ivory Coast and Ghana, and account for about 80 percent of subscribers in Sub-Saharan Africa, follow suit.
"As the registration deadline passes in each country, a significant one-off drop-off is expected as those unregistered SIM cards are deactivated," IHS said recently.
A similar move by Algeria in 2008 hit subscriber numbers. The second biggest operator Mobilis had nearly two million SIM cards de-activated and revenues fell to $140 million in fourth quarter 2008 from $173 million in 2007.
The United Nations has noted that the ease with which Africans can get mobile phone lines, which they can now buy on the streets - with no need for documentation - has helped swell official user numbers from just one million in 1996 to an estimated 350 million by the end of 2009.
Other countries requiring mobile phone users to register include Japan, Australia, Thailand and Germany. United States lawmakers last month unveiled a bill to identify pre-paid users to stop terrorists, drug dealers and gangs from using unknown numbers.
Mobile networks disconnect unregistered customers
Nigeria - Continuing controversy over the fourth attempt to privatize NITEL
[Leadership/All Africa Global Media] The Nigeria Telecommunication Limited (NITEL) has gone into many troubles in an effort to privatise it with each effort crashing like a pack of sand at the end of every exercise. BETHRAND NWANKWO, in this report, x-rays the various attempts to sell the embattled telecommunication firm and concludes that the Bureau of Public Enterprises (BPE) still has an unfinished job.
The Bureau of Public Enterprises (BPE) on Thursday 17, 2011 announced the cancellation of the sale of the Nigeria Telecommunication Limited (NITEL) and its subsidiary, the Nigerian Mobile Telecommunication Limited (M-tel) to New Generation Telecommunications, the consortium that won the bid during the February 2010 privatisation exercise of the telecommunication firms. The cancellation, according to the privatisation agency, was due to the inability of the New Generation consortium to complete the agreed payment terms on the transaction.
In line with the rules, Omen International, the reserved bidder during the transaction was expected to be invited to acquire the troubled telecommunication firms.
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Giving reason for the cancellation of the exercise, the Director-General of BPE, Ms Bola Onagoruwa, while speaking at a budget defence session with the House of Representatives Committee on Privatisation, said New Generation failed to abide by the terms of the deal in spite of several extensions of the payment deadlines.
She disclosed that the BPE had already made recommendations to the National Council of Privatisation (NCP) that NITEL/M-tel should go to the reserved bidder, adding that the privatisation agency would seal the deal with Omen International as soon as the approval of the NCP was received.
"We wrote the NCP Chairman in January over the issue intimating him on the situation and gave him our recommendations. He wrote back seeking for clarification which we have given. What we are now waiting for is the permission of the NCP to go ahead to give the sale to Omen International," she said.
The New Generation Telecommunication won the bid on an offer of $2.5 billion for a 75 per cent stake in NITEL/M-tel, while the reserved bidder, Omen International Consortium, offered $956,996,091.
The current effort to transfer NITEL/M-tel to a competent investor is the fourth in the series and all the previous attempts ended in controversies.
In the history of privatisation worldwide, hardly has there been a more difficult privatisation process than the attempt to divest the Nigeria Telecommunication Limited (NITEL), and its mobile arm, the Nigerian Mobile Telecommunication Limited (M-tel).
The tortuous road to NITEL's privatisation first began with the liberalisation of the telecommunication sector in 2001. This empowered more efficient and business minded private competitors to reap from the sector while the political managers operating NITEL, busied themselves with stripping the national asset of the last breath of life remaining in it.
In 2002, Investors International London Limited (IILL) made an attempt to acquire NITEL, but defaulted in paying the bid price of $1.317 billion and lost the opportunity. After that attempt to sell the firm failed, BPE, under the former Minister of Federal Capital Territory (FCT), Mallam Nasir el-Rufai working on the instructions of former President Olusegun Obasanjo, took formal steps to outsource management of NITEL by engaging an unknown firm, Pentascope of Netherlands to manage the pioneer telecommunication company in Nigeria.
However, despite the hues and cries from Nigerians that Pentascope had no known address and telecom experience to revive the ailing company, the then director general of BPE, Mallam el-Rufai stood his ground and handed over the telecom firm to the Dutchmen.
Under the contractual agreement, Pentascope was expected to manage and prepare NITEL for its eventual privatisation. If it had been properly managed, NITEL would have attracted capable and eligible investors. The management contractor was also expected to expand its services in 2003, by creating more land lines and providing at least 500,000 lines for M-tel, that was never to be.
In spite of inheriting several billions of naira upon taking over NITEL, Pentascope was said to have incurred several billions of debt within the two years, thereby creating doubts about its ability or competence in managing the troubled NITEL. By the time the Dutchmen left, NITEL, which hitherto, had over 400,000 lines could not boast of 300,000 lines.
However, NITEL's problem was compounded when its monopoly was broken with the award of second national carrier licence to Mike Adenuga's Globacom.
The second attempt at privatising NITEL was in the late 2005, when BPE came close to selling it to Egypt's Orascom Telecom, which analysts said had experience of countries with infrastructure problems as Nigeria and would have been well-placed to revive NITEL's fortunes, but it failed as a result of greed on the part of government.
The Egyptian telecom had offered $256.5 million which federal government said was below expectation and thereafter cancelled the transaction. It was learnt that federal government has pegged the price as $500 million but the Egyptian firm only offered $256.5 million which was rejected.
After the failed attempt to sell NITEL to Orascom, a group of Nigerians led by the former Director General of Nigeria Stock Exchange (NSE), Prof (Mrs) Ndi Okereke-Onyiuke and guided by former President Olusegun Obasanjo, horridly formed Transnational Corporation (TransCorp) and NITEL and Mtel were handed over to TransCorp at the cost of $500 million.
The sale of NITEL to TransCorp in 2006 was believed to be the most successful with TransCorp acquiring 75 per cent share of NITEL/M-Tel which was later reduced to 51 per cent due to issues of finance and labour problems.
NITEL's problem under TransCorp was more internal than external. A combination of visionless/inexperienced majority owners, inept management, poor financial profile, demoralised employees and a lack of customer service acumen made nonsense of the exercise.
There is no doubt that the federal government contributed in the company's woes and helpless situation NITEL finds itself at the moment. Nevertheless, if one looks back with the benefit of hindsight, it is apparent that the process that led up to its privatisation had set NITEL up to fail and eventually go bankrupt.
Prior to the last privatisation exercise which was won by the New Generation consortium, BPE had planned to unbundle NITEL and sell it in bits but at the same time wanted an investor who was ready to acquire the entire conglomerate. The NITEL's components include: the undersea cable, otherwise known as SAT-3; domestic fixed line telephony; national fibre optic transmission backbone; code division multiple access (CDMA) network; and M-tel (the GSM arm).
Prospective investors were then invited to apply to acquire either a 75 percent equity in the entire NITEL conglomerate or a stake in one or several of its components. So many telecommunication firms including; MTN Nigeria Communication Limited and Globacom Nigeria Limited indicated interest to acquire the entire conglomerate but were latter disqualified on the advice of the Nigeria Communications Commission (NCC), which advised that any existing GSM operator in Nigeria should not be allowed to buy entire NITEL because since the operator has a GSM licence, it would amount to having two licences.
The Mike Adenuga's Globacom was disqualified from NITEL conglomerate because it has both GSM licence and another licence as the second national carrier. Acting on the advice from NCC, firms such as MTN and Globacom were barred from bidding for the NITEL conglomerate but could only bid for one or several of the components they did not have similar licences.
Based on the rules, MTN Nigeria, therefore, placed a $25 million bid for a stake in the SAT-3, the undersea cable; Globacom was allowed for other components, except for undersea cable and the mobile unit.
At the end of the day, BPE cleared six companies to bid; these were: Brymedia (WA), AFZI/ Spectrum Consortium, MTN Nigeria Communication, Globacom Nigeria Ltd, Omen International Ltd (BVI) and New Generation Telecommunications Ltd (formerly Telefonica Consortium).
Since BPE said it would give preference to any firm or group of firms that would bid for the entire NITEL conglomerate, the firm was given to the New Generation Telecommunications Consortium which emerged preferred bidder offering $2.5 billion, Omen International came second with an offer of $956,996,091. Brymedia emerged third with $550 million offer. Other contenders who bid for the acquisition of 75 per cent equity in NITEL and its M-Tel subsidiary included AFZI/Spectrum Consortium, fourth with a bid of $375.5million.
The New Generation Consortium included: China Unicom of Hong Kong, Minerva Group of Dubai and Nigeria's GiCell Wireless Ltd.
After the emergence of the preferred bidders, an outcry was raised challenging the conduct of the process following controversial denials by some members of the consortium of some of the bidders denying any knowledge of the deal.
About six months after the bid was concluded, China Unicom (Hong Kong), a member of New Generation Consortium, took paid advertorials in one of the national dailies and denied being involved in the deal.
The telecom firm announced in a statement that one of its subsidiaries, China Unicom (Europe) Operations Ltd was interested in NITEL, but there are no discussions on any "substantive and legally binding agreements." Filing on the Hong Kong Stock Exchange (HKSE), quoted the firm as saying that its UK unit, China Unicom (Europe) Operations Ltd., "would be interested in exploring the possibility of equity investment in NITEL," and "indicated its interest in the provision of technical and managerial support services." The statement credited to China Unicom (Hong Kong) made many Nigerians uncomfortable, as why a member of the winning consortium was telling the world that there are no "legally binding agreements" on the sale of a corporation it bid for $2.5 billion. Worse, to say that its subsidiary "would be interested in exploring the possibility of equity investment in NITEL," after completion of the exercise raised serious questions about the position and interest of China Unicom in NITEL, and by extension, the New Generation Consortium.
Furthermore, according to postings on Bloomberg.com and Dow Jones, the firm, in the statement added that a possible investment in NITEL "is subject to certain conditions being fulfilled." The firm also disclosed that it has not started discussions on any "substantive and legally binding agreements." The controversy was ignited when Sophia Tso, spokesperson for China Unicom denied that the firm was part of the New Generation Telecoms consortium which won the bid for NITEL.
Speaking with Bloomberg on telephone from her Hong Kong base, Tso said, "neither Unicom nor its unlisted parent joined the bidding for NITEL, as Nigerian Telecommunications is known." The denial by China Unicom, was speedily followed by that of another consortium member, Telcom New Zealand, which also denied being part of the Brymedia consortium that came third in the bidding process, adding to speculations that all was not well with the deal even though Brymedia also swiftly responded to the denial which it claimed was not true.
Though BPE swiftly rose up to defend itself by denying the claims of the firms, the controversy raged on until it consumed the job of the former Director General of the Agency, Dr Christopher Anyanwu, which led to his suspension.
However, the Managing Director of GiCell, Alhaji Usman Gumi, the Nigerian member of New Generation Consortium, was able to douse the fear of many Nigerians when he reiterated the Chinese firm's involvement in NITEL bid, which he said, only extended to an interest in offering technical and managerial support.
Gumi assured Nigerians that the consortium had the financial backing from Dubai's Minerva Group and that the $2.5 billion bid was fair value for the firms.
Questions thus arose over the participation of China Unicom (Europe). For instance, was the "technical and managerial support" Gumi said Unicom was offering part of the $2.5 billion bid, or was the support coming free of charge? But Gumi, who is the only visible member of the consortium, was optimistic that the consortium had both the financial and technical know-how to manage the embattled NITEL. He said that China Unicom (Europe) would "consider a minimum of 20 per cent equity participation on terms to be agreed." What was not clear then was whether the remaining 55 per cent equity would be paid by Minerva Group and by extension, how much was each member of the consortium, including his GiCell Wireless, was going to contribute. Nigerians were not bothered on how much each member of the consortium would contribute, but what mattered to many was that the full price be paid, but that never came to be as the consortium kept dribbling BPE and the entire country.
In order to address the controversy, NCP set up a seven-man committee in March, 2010 to conduct further due diligence on several bidders, after Ms Bolanle Onaguruwa, a director in the Agency was named Acting DG.
In spite of the controversy, acting chairman, Technical Committee of the NCP, Taiwo Osipitan, after three months, in an assessment report not only recommended that the bid result be ratified, but that the preferred winner should be issued with a confirmation letter, as the transactions followed a "very transparent bid process" in accordance with international best practices and standards.
The President, thereafter, set up another committee headed by the former Attorney General and Minister of Justice, Adetokumbo Kayode, but the committee was still on its assignment when the cabinet was dissolved. Although, information available had it that the report prepared by the minister alone, upheld the transaction. Another committee, headed by the current Minister of Justice, Mohammed Bello Adoke was also constituted which equally upheld the transaction and asked the President to approve the deal.
However, after a few months delay, the President gave New Generation Consortium the go ahead to make the payment.
The New Generation was given 10 calendar days starting from October 25, 2010 to pay $750 million to secure the bid and thereafter pay the balance of $1, 750 million in 60 days from the date of the issue of an offer to close the deal that would give it operational control of NITEL.
The deadline expired on November 4, 2010, without the group making any payment but instead, sent a letter to the NCP, asking for an extension of time to 30 banking days to enable it remit the funds through its bankers.
The Consortium, thereafter, got another 20 working days extension to enable it pay the $750 million to secure the bid, having failed to pay within the initial 10 days in accordance with the provisions of the Requests for Proposal (RFP).
The GiCell boss hinged the inability of the consortium to make the payment to difficulty faced in concluding the due diligence and compliance processes associated with the transfer of such huge funds because its bankers had developed 'cold feet'. "The partners needed to be reassured of their investment security," he added.
New Generation made spirited efforts to meet the deadline, with two of its officials travelling to Dubai in an attempt to close the deal with the proposed financier and a member of the consortium, Minerva Group. But despite the attempts made, the consortium was unable to come up with the money.
With the inability of the consortium to meet up with the payment, the Federal Government had two options on its next line of action. One was to grant further extension or invite the reserved bidder, Omen International.
Last month, the GiCell boss had told LEADERSHIP in a telephone interview that the Consortium had secured funds from its foreign financiers and had written a letter to the BPE asking for more time to make the payment after the Christmas holidays because the financial world has closed for the year.
But before the Christmas break, the DG of BPE, Ms Bola Onaguruwa had warned that there would be no further extension of the deadline if the consortium failed to meet the deadline and true to the warning, the privatisation agency, on February 17, 2011 announced the cancellation of the exercise.
As it is now, many Nigerians expect the BPE to invite the New Generation Consortium which claimed it had secured funds from its foreign financiers to make the payment or better still, invite the reserve bidder, Omen International, which came second in the bidding process, to come forward and make payment. But it remains to be seen if New Generation will be considered again because the Director General of BPE had vowed never to extend the deadline.
Commenting on the issue, a source within the BPE who opted to remain anonymous, wondered how bidders without any track record in the telecom industry won the bid to manage a firm as big as NITEL.
His words: "NITEL is a prized national asset which unfortunately was ruined by mismanagement. We have made several efforts to sell it in the past without success and we should have learnt our lesson by now. The right thing to do is to allow a company that knows the Nigerian environment, a company that has a stake in the country, a company that can immediately revive the organisation. Going for a greenhorn in the industry may take us back to the days of Pentascope and IILL and we will begin another round of endless search for a core investor," he stated.
For a former staff member of NITEL and President, Association Telecom Companies of Nigeria (ATCON), Mr Titi Omo-Ettu, "NITEL no longer exists to me. I have long run out of ideas on saving NITEL." Like Omo-Ettu, many Nigerians have run out of ideas on saving NITEL, the telecom firm appears to have defied every solution to make it come back to life.
Writing on "NITEL, BPE and Strange Allegations," Mr Segun Oruame said there are mounting questions on whether the BPE has not already chosen a private-sector owner for NITEL and whether its advertisement asking prospective buyers to bid for NITEL is not a sham. According to him, there are growing allegations of bribery and money exchanging hands to pave way for a pre-selected buyer.
But the truth of the matter remains that, BPE has a litany of failed privatisation exercises that put the onus of responsibility on it to prove that it is transparent on the exercises. More than ever before, the BPE must show that it has no hidden agenda on the 'NITEL plague.'
Nitel/M-Tel - One Privatisation, Too Many
The Bureau of Public Enterprises (BPE) on Thursday 17, 2011 announced the cancellation of the sale of the Nigeria Telecommunication Limited (NITEL) and its subsidiary, the Nigerian Mobile Telecommunication Limited (M-tel) to New Generation Telecommunications, the consortium that won the bid during the February 2010 privatisation exercise of the telecommunication firms. The cancellation, according to the privatisation agency, was due to the inability of the New Generation consortium to complete the agreed payment terms on the transaction.
In line with the rules, Omen International, the reserved bidder during the transaction was expected to be invited to acquire the troubled telecommunication firms.
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Giving reason for the cancellation of the exercise, the Director-General of BPE, Ms Bola Onagoruwa, while speaking at a budget defence session with the House of Representatives Committee on Privatisation, said New Generation failed to abide by the terms of the deal in spite of several extensions of the payment deadlines.
She disclosed that the BPE had already made recommendations to the National Council of Privatisation (NCP) that NITEL/M-tel should go to the reserved bidder, adding that the privatisation agency would seal the deal with Omen International as soon as the approval of the NCP was received.
"We wrote the NCP Chairman in January over the issue intimating him on the situation and gave him our recommendations. He wrote back seeking for clarification which we have given. What we are now waiting for is the permission of the NCP to go ahead to give the sale to Omen International," she said.
The New Generation Telecommunication won the bid on an offer of $2.5 billion for a 75 per cent stake in NITEL/M-tel, while the reserved bidder, Omen International Consortium, offered $956,996,091.
The current effort to transfer NITEL/M-tel to a competent investor is the fourth in the series and all the previous attempts ended in controversies.
In the history of privatisation worldwide, hardly has there been a more difficult privatisation process than the attempt to divest the Nigeria Telecommunication Limited (NITEL), and its mobile arm, the Nigerian Mobile Telecommunication Limited (M-tel).
The tortuous road to NITEL's privatisation first began with the liberalisation of the telecommunication sector in 2001. This empowered more efficient and business minded private competitors to reap from the sector while the political managers operating NITEL, busied themselves with stripping the national asset of the last breath of life remaining in it.
In 2002, Investors International London Limited (IILL) made an attempt to acquire NITEL, but defaulted in paying the bid price of $1.317 billion and lost the opportunity. After that attempt to sell the firm failed, BPE, under the former Minister of Federal Capital Territory (FCT), Mallam Nasir el-Rufai working on the instructions of former President Olusegun Obasanjo, took formal steps to outsource management of NITEL by engaging an unknown firm, Pentascope of Netherlands to manage the pioneer telecommunication company in Nigeria.
However, despite the hues and cries from Nigerians that Pentascope had no known address and telecom experience to revive the ailing company, the then director general of BPE, Mallam el-Rufai stood his ground and handed over the telecom firm to the Dutchmen.
Under the contractual agreement, Pentascope was expected to manage and prepare NITEL for its eventual privatisation. If it had been properly managed, NITEL would have attracted capable and eligible investors. The management contractor was also expected to expand its services in 2003, by creating more land lines and providing at least 500,000 lines for M-tel, that was never to be.
In spite of inheriting several billions of naira upon taking over NITEL, Pentascope was said to have incurred several billions of debt within the two years, thereby creating doubts about its ability or competence in managing the troubled NITEL. By the time the Dutchmen left, NITEL, which hitherto, had over 400,000 lines could not boast of 300,000 lines.
However, NITEL's problem was compounded when its monopoly was broken with the award of second national carrier licence to Mike Adenuga's Globacom.
The second attempt at privatising NITEL was in the late 2005, when BPE came close to selling it to Egypt's Orascom Telecom, which analysts said had experience of countries with infrastructure problems as Nigeria and would have been well-placed to revive NITEL's fortunes, but it failed as a result of greed on the part of government.
The Egyptian telecom had offered $256.5 million which federal government said was below expectation and thereafter cancelled the transaction. It was learnt that federal government has pegged the price as $500 million but the Egyptian firm only offered $256.5 million which was rejected.
After the failed attempt to sell NITEL to Orascom, a group of Nigerians led by the former Director General of Nigeria Stock Exchange (NSE), Prof (Mrs) Ndi Okereke-Onyiuke and guided by former President Olusegun Obasanjo, horridly formed Transnational Corporation (TransCorp) and NITEL and Mtel were handed over to TransCorp at the cost of $500 million.
The sale of NITEL to TransCorp in 2006 was believed to be the most successful with TransCorp acquiring 75 per cent share of NITEL/M-Tel which was later reduced to 51 per cent due to issues of finance and labour problems.
NITEL's problem under TransCorp was more internal than external. A combination of visionless/inexperienced majority owners, inept management, poor financial profile, demoralised employees and a lack of customer service acumen made nonsense of the exercise.
There is no doubt that the federal government contributed in the company's woes and helpless situation NITEL finds itself at the moment. Nevertheless, if one looks back with the benefit of hindsight, it is apparent that the process that led up to its privatisation had set NITEL up to fail and eventually go bankrupt.
Prior to the last privatisation exercise which was won by the New Generation consortium, BPE had planned to unbundle NITEL and sell it in bits but at the same time wanted an investor who was ready to acquire the entire conglomerate. The NITEL's components include: the undersea cable, otherwise known as SAT-3; domestic fixed line telephony; national fibre optic transmission backbone; code division multiple access (CDMA) network; and M-tel (the GSM arm).
Prospective investors were then invited to apply to acquire either a 75 percent equity in the entire NITEL conglomerate or a stake in one or several of its components. So many telecommunication firms including; MTN Nigeria Communication Limited and Globacom Nigeria Limited indicated interest to acquire the entire conglomerate but were latter disqualified on the advice of the Nigeria Communications Commission (NCC), which advised that any existing GSM operator in Nigeria should not be allowed to buy entire NITEL because since the operator has a GSM licence, it would amount to having two licences.
The Mike Adenuga's Globacom was disqualified from NITEL conglomerate because it has both GSM licence and another licence as the second national carrier. Acting on the advice from NCC, firms such as MTN and Globacom were barred from bidding for the NITEL conglomerate but could only bid for one or several of the components they did not have similar licences.
Based on the rules, MTN Nigeria, therefore, placed a $25 million bid for a stake in the SAT-3, the undersea cable; Globacom was allowed for other components, except for undersea cable and the mobile unit.
At the end of the day, BPE cleared six companies to bid; these were: Brymedia (WA), AFZI/ Spectrum Consortium, MTN Nigeria Communication, Globacom Nigeria Ltd, Omen International Ltd (BVI) and New Generation Telecommunications Ltd (formerly Telefonica Consortium).
Since BPE said it would give preference to any firm or group of firms that would bid for the entire NITEL conglomerate, the firm was given to the New Generation Telecommunications Consortium which emerged preferred bidder offering $2.5 billion, Omen International came second with an offer of $956,996,091. Brymedia emerged third with $550 million offer. Other contenders who bid for the acquisition of 75 per cent equity in NITEL and its M-Tel subsidiary included AFZI/Spectrum Consortium, fourth with a bid of $375.5million.
The New Generation Consortium included: China Unicom of Hong Kong, Minerva Group of Dubai and Nigeria's GiCell Wireless Ltd.
After the emergence of the preferred bidders, an outcry was raised challenging the conduct of the process following controversial denials by some members of the consortium of some of the bidders denying any knowledge of the deal.
About six months after the bid was concluded, China Unicom (Hong Kong), a member of New Generation Consortium, took paid advertorials in one of the national dailies and denied being involved in the deal.
The telecom firm announced in a statement that one of its subsidiaries, China Unicom (Europe) Operations Ltd was interested in NITEL, but there are no discussions on any "substantive and legally binding agreements." Filing on the Hong Kong Stock Exchange (HKSE), quoted the firm as saying that its UK unit, China Unicom (Europe) Operations Ltd., "would be interested in exploring the possibility of equity investment in NITEL," and "indicated its interest in the provision of technical and managerial support services." The statement credited to China Unicom (Hong Kong) made many Nigerians uncomfortable, as why a member of the winning consortium was telling the world that there are no "legally binding agreements" on the sale of a corporation it bid for $2.5 billion. Worse, to say that its subsidiary "would be interested in exploring the possibility of equity investment in NITEL," after completion of the exercise raised serious questions about the position and interest of China Unicom in NITEL, and by extension, the New Generation Consortium.
Furthermore, according to postings on Bloomberg.com and Dow Jones, the firm, in the statement added that a possible investment in NITEL "is subject to certain conditions being fulfilled." The firm also disclosed that it has not started discussions on any "substantive and legally binding agreements." The controversy was ignited when Sophia Tso, spokesperson for China Unicom denied that the firm was part of the New Generation Telecoms consortium which won the bid for NITEL.
Speaking with Bloomberg on telephone from her Hong Kong base, Tso said, "neither Unicom nor its unlisted parent joined the bidding for NITEL, as Nigerian Telecommunications is known." The denial by China Unicom, was speedily followed by that of another consortium member, Telcom New Zealand, which also denied being part of the Brymedia consortium that came third in the bidding process, adding to speculations that all was not well with the deal even though Brymedia also swiftly responded to the denial which it claimed was not true.
Though BPE swiftly rose up to defend itself by denying the claims of the firms, the controversy raged on until it consumed the job of the former Director General of the Agency, Dr Christopher Anyanwu, which led to his suspension.
However, the Managing Director of GiCell, Alhaji Usman Gumi, the Nigerian member of New Generation Consortium, was able to douse the fear of many Nigerians when he reiterated the Chinese firm's involvement in NITEL bid, which he said, only extended to an interest in offering technical and managerial support.
Gumi assured Nigerians that the consortium had the financial backing from Dubai's Minerva Group and that the $2.5 billion bid was fair value for the firms.
Questions thus arose over the participation of China Unicom (Europe). For instance, was the "technical and managerial support" Gumi said Unicom was offering part of the $2.5 billion bid, or was the support coming free of charge? But Gumi, who is the only visible member of the consortium, was optimistic that the consortium had both the financial and technical know-how to manage the embattled NITEL. He said that China Unicom (Europe) would "consider a minimum of 20 per cent equity participation on terms to be agreed." What was not clear then was whether the remaining 55 per cent equity would be paid by Minerva Group and by extension, how much was each member of the consortium, including his GiCell Wireless, was going to contribute. Nigerians were not bothered on how much each member of the consortium would contribute, but what mattered to many was that the full price be paid, but that never came to be as the consortium kept dribbling BPE and the entire country.
In order to address the controversy, NCP set up a seven-man committee in March, 2010 to conduct further due diligence on several bidders, after Ms Bolanle Onaguruwa, a director in the Agency was named Acting DG.
In spite of the controversy, acting chairman, Technical Committee of the NCP, Taiwo Osipitan, after three months, in an assessment report not only recommended that the bid result be ratified, but that the preferred winner should be issued with a confirmation letter, as the transactions followed a "very transparent bid process" in accordance with international best practices and standards.
The President, thereafter, set up another committee headed by the former Attorney General and Minister of Justice, Adetokumbo Kayode, but the committee was still on its assignment when the cabinet was dissolved. Although, information available had it that the report prepared by the minister alone, upheld the transaction. Another committee, headed by the current Minister of Justice, Mohammed Bello Adoke was also constituted which equally upheld the transaction and asked the President to approve the deal.
However, after a few months delay, the President gave New Generation Consortium the go ahead to make the payment.
The New Generation was given 10 calendar days starting from October 25, 2010 to pay $750 million to secure the bid and thereafter pay the balance of $1, 750 million in 60 days from the date of the issue of an offer to close the deal that would give it operational control of NITEL.
The deadline expired on November 4, 2010, without the group making any payment but instead, sent a letter to the NCP, asking for an extension of time to 30 banking days to enable it remit the funds through its bankers.
The Consortium, thereafter, got another 20 working days extension to enable it pay the $750 million to secure the bid, having failed to pay within the initial 10 days in accordance with the provisions of the Requests for Proposal (RFP).
The GiCell boss hinged the inability of the consortium to make the payment to difficulty faced in concluding the due diligence and compliance processes associated with the transfer of such huge funds because its bankers had developed 'cold feet'. "The partners needed to be reassured of their investment security," he added.
New Generation made spirited efforts to meet the deadline, with two of its officials travelling to Dubai in an attempt to close the deal with the proposed financier and a member of the consortium, Minerva Group. But despite the attempts made, the consortium was unable to come up with the money.
With the inability of the consortium to meet up with the payment, the Federal Government had two options on its next line of action. One was to grant further extension or invite the reserved bidder, Omen International.
Last month, the GiCell boss had told LEADERSHIP in a telephone interview that the Consortium had secured funds from its foreign financiers and had written a letter to the BPE asking for more time to make the payment after the Christmas holidays because the financial world has closed for the year.
But before the Christmas break, the DG of BPE, Ms Bola Onaguruwa had warned that there would be no further extension of the deadline if the consortium failed to meet the deadline and true to the warning, the privatisation agency, on February 17, 2011 announced the cancellation of the exercise.
As it is now, many Nigerians expect the BPE to invite the New Generation Consortium which claimed it had secured funds from its foreign financiers to make the payment or better still, invite the reserve bidder, Omen International, which came second in the bidding process, to come forward and make payment. But it remains to be seen if New Generation will be considered again because the Director General of BPE had vowed never to extend the deadline.
Commenting on the issue, a source within the BPE who opted to remain anonymous, wondered how bidders without any track record in the telecom industry won the bid to manage a firm as big as NITEL.
His words: "NITEL is a prized national asset which unfortunately was ruined by mismanagement. We have made several efforts to sell it in the past without success and we should have learnt our lesson by now. The right thing to do is to allow a company that knows the Nigerian environment, a company that has a stake in the country, a company that can immediately revive the organisation. Going for a greenhorn in the industry may take us back to the days of Pentascope and IILL and we will begin another round of endless search for a core investor," he stated.
For a former staff member of NITEL and President, Association Telecom Companies of Nigeria (ATCON), Mr Titi Omo-Ettu, "NITEL no longer exists to me. I have long run out of ideas on saving NITEL." Like Omo-Ettu, many Nigerians have run out of ideas on saving NITEL, the telecom firm appears to have defied every solution to make it come back to life.
Writing on "NITEL, BPE and Strange Allegations," Mr Segun Oruame said there are mounting questions on whether the BPE has not already chosen a private-sector owner for NITEL and whether its advertisement asking prospective buyers to bid for NITEL is not a sham. According to him, there are growing allegations of bribery and money exchanging hands to pave way for a pre-selected buyer.
But the truth of the matter remains that, BPE has a litany of failed privatisation exercises that put the onus of responsibility on it to prove that it is transparent on the exercises. More than ever before, the BPE must show that it has no hidden agenda on the 'NITEL plague.'
Nitel/M-Tel - One Privatisation, Too Many
Bahamas - Sale of BTC to Cable & Wireless continues to be controversial
[jones bahamas] Despite hundreds pouring into the downtown area in protest of the pending sale of the Bahamas Telecommunications Company (BTC) on Wednesday, the majority of people polled by the Bahama Journal yesterday said the protest “simply didn’t make sense.”
Despite hundreds pouring into the downtown area in protest of the pending sale of the Bahamas Telecommunications Company (BTC) on Wednesday, the majority of people polled by the Bahama Journal yesterday said the protest "simply didn’t make sense."
Sheer pandemonium erupted in Rawson Square, after the massive crowd flooded in the area in protest of the government’s pending controversial sale of a 51 per cent stake of the BTC to British-based telecom giant Cable & Wireless Communications (CWC).
"Personally I don’t see what they’re protesting about because the deal has already been sealed according to facts and figures," Gloria Darville said.
Arnette Knowles felt the same way.
"When it was open for discussion, no one said anything," she said.
"The sale seems pretty much like a done deal. There’s no need to make any noise at this point but I understand they want to be heard. But as a government, sometimes tough decisions have to be made."
Dwayne Rodgers said BTC should have been sold a long time ago.
"I don’t know why people are making noise about it now," he said.
Rudolph Farrington shared similar views.
"The protest was politicised and it should not have been," he said.
"It’s good to demonstrate but do so peacefully and the way they operated yesterday was unacceptable. Imagine the amount of visitors that saw that action; I wonder what they thought?"
Lionel Munroe said too much politics was involved.
"All I saw down there was more yellow shirts," he said.
"The protest shouldn’t have happened. If BTC’s unions are fighting for their rights then let them do so alone without the influence of politics. I say sell BTC so we can get better service."
There were a few people however, who felt the protest was exactly what the country needed.
Tiffany Bullard said she agreed with the protest because in her view, everything in The Bahamas is being sold.
"BTC should not be sold it should remain in the hands of Bahamians," she said.
"It was definitely necessary," Alex Morely said.
"Sometimes you just have to say enough is enough and this is only the beginning. Anytime you see people challenge the system, even if its in a small way, you have to support that - that is what we need right now."
Franklyn Donaldson said the protesters simply did what was constitutionally right.
"They are doing what they feel is right by trying to help me, my children and my grandchildren in years to come," he said.
"What are my grandchildren’s’ children going to have?"
A young man, who identified himself only as Keno, told the Journal that the protest was long overdue.
"I feel good that Bahamians are standing up for themselves," he said.
"I feel right now that the government does not care anymore about us. They only seem to care about the foreigners and what they are bringing to the table."
Keno said there are many Bahamians who can do the work that foreigners are doing.
"This is real to me so I’m in agreement with the protest," he said.
"They needed to do that and if they don’t see it now, the Free National Movement will see it when it’s too late come election time."
Undoubtedly the protest will go down in the annals of Bahamian history.
Members of unions, political parties and civic organisations along with concerned citizens, swarmed Bay Street for a mass meeting of what they called "The People’s Parliament."
Chanting "Hubert and wireless gat to go," they carried Bahamian flags and placards that read: "Stop selling out our country, stop selling the future of our babies," "BTC-100% Bahamian is what we want," "Politicians if you vote for LIME, you’re fired."
Bahamians Sound Off On BTC Protest
Despite hundreds pouring into the downtown area in protest of the pending sale of the Bahamas Telecommunications Company (BTC) on Wednesday, the majority of people polled by the Bahama Journal yesterday said the protest "simply didn’t make sense."
Sheer pandemonium erupted in Rawson Square, after the massive crowd flooded in the area in protest of the government’s pending controversial sale of a 51 per cent stake of the BTC to British-based telecom giant Cable & Wireless Communications (CWC).
"Personally I don’t see what they’re protesting about because the deal has already been sealed according to facts and figures," Gloria Darville said.
Arnette Knowles felt the same way.
"When it was open for discussion, no one said anything," she said.
"The sale seems pretty much like a done deal. There’s no need to make any noise at this point but I understand they want to be heard. But as a government, sometimes tough decisions have to be made."
Dwayne Rodgers said BTC should have been sold a long time ago.
"I don’t know why people are making noise about it now," he said.
Rudolph Farrington shared similar views.
"The protest was politicised and it should not have been," he said.
"It’s good to demonstrate but do so peacefully and the way they operated yesterday was unacceptable. Imagine the amount of visitors that saw that action; I wonder what they thought?"
Lionel Munroe said too much politics was involved.
"All I saw down there was more yellow shirts," he said.
"The protest shouldn’t have happened. If BTC’s unions are fighting for their rights then let them do so alone without the influence of politics. I say sell BTC so we can get better service."
There were a few people however, who felt the protest was exactly what the country needed.
Tiffany Bullard said she agreed with the protest because in her view, everything in The Bahamas is being sold.
"BTC should not be sold it should remain in the hands of Bahamians," she said.
"It was definitely necessary," Alex Morely said.
"Sometimes you just have to say enough is enough and this is only the beginning. Anytime you see people challenge the system, even if its in a small way, you have to support that - that is what we need right now."
Franklyn Donaldson said the protesters simply did what was constitutionally right.
"They are doing what they feel is right by trying to help me, my children and my grandchildren in years to come," he said.
"What are my grandchildren’s’ children going to have?"
A young man, who identified himself only as Keno, told the Journal that the protest was long overdue.
"I feel good that Bahamians are standing up for themselves," he said.
"I feel right now that the government does not care anymore about us. They only seem to care about the foreigners and what they are bringing to the table."
Keno said there are many Bahamians who can do the work that foreigners are doing.
"This is real to me so I’m in agreement with the protest," he said.
"They needed to do that and if they don’t see it now, the Free National Movement will see it when it’s too late come election time."
Undoubtedly the protest will go down in the annals of Bahamian history.
Members of unions, political parties and civic organisations along with concerned citizens, swarmed Bay Street for a mass meeting of what they called "The People’s Parliament."
Chanting "Hubert and wireless gat to go," they carried Bahamian flags and placards that read: "Stop selling out our country, stop selling the future of our babies," "BTC-100% Bahamian is what we want," "Politicians if you vote for LIME, you’re fired."
Bahamians Sound Off On BTC Protest
Solomon Islands - Regulator intends to penalise Bemobile for failure to meet licence obligations
[solomon times] The Telecommunications Commission of the Solomon Islands (TCSI) has announced that Bemobile Solomon Islands Limited is in breach of its license.
The Telecommunications Commission says Bemobile has failed to provide telecommunications service to 75 per cent of the population by 1st February 2011 and has failed to rectify the situation by 14th February 2011 as required in its license.
Telecommunications Commissioner Nicholas Williams says Bemobile has failed to meet its obligations on a number of requirements since June last year.
This includes the launch of its service on 18th June 2010, coverage obligation of 50 per cent by 18th September 2010 and a required total of 75 per cent of the population by 30th November 2010.
Mr Williams says Bemobile has confirmed to TCSI that they have not been able to build any additional sites since December 2010.
"TCSI has found that Bemobile has failed to meet its third coverage threshold of 75 per cent of the population that commenced on February 1st 2011, as well as during the 14 day rectification period that was provided for under the license."
He says the National Statistics Office and TCSI have both examined claims of whether Bemobile might have reached 64 per cent coverage and have both agreed that the figure is not correct.
Mr. Williams says the Telecommunications Commission has moved to exercise the US$1 Million dollar fine in connection with Bemobile's failure to meet the third threshold.
It is understood that TCSI is defending a court challenge by Bemobile on the lawfulness of the coverage obligation and exercise of the fine.
Bemobile Penalized
The Telecommunications Commission says Bemobile has failed to provide telecommunications service to 75 per cent of the population by 1st February 2011 and has failed to rectify the situation by 14th February 2011 as required in its license.
Telecommunications Commissioner Nicholas Williams says Bemobile has failed to meet its obligations on a number of requirements since June last year.
This includes the launch of its service on 18th June 2010, coverage obligation of 50 per cent by 18th September 2010 and a required total of 75 per cent of the population by 30th November 2010.
Mr Williams says Bemobile has confirmed to TCSI that they have not been able to build any additional sites since December 2010.
"TCSI has found that Bemobile has failed to meet its third coverage threshold of 75 per cent of the population that commenced on February 1st 2011, as well as during the 14 day rectification period that was provided for under the license."
He says the National Statistics Office and TCSI have both examined claims of whether Bemobile might have reached 64 per cent coverage and have both agreed that the figure is not correct.
Mr. Williams says the Telecommunications Commission has moved to exercise the US$1 Million dollar fine in connection with Bemobile's failure to meet the third threshold.
It is understood that TCSI is defending a court challenge by Bemobile on the lawfulness of the coverage obligation and exercise of the fine.
Bemobile Penalized
South Africa - Govt intends to extend its "special rights" in TELKOM with a view to ensuring rural services
[business live] The government is in discussions to extend certain special rights that it holds at Telkom, as it believes the company is a strategic asset that can assist with the roll out of broadband in rural areas.
THE government is in discussions to extend certain special rights that it holds at Telkom, as it believes the company is a strategic asset that can assist with the roll out of broadband in rural areas.
The state owns 39% in Telkom and has special rights through its Class A shares, which give it the right to appoint a chairman, four nonexecutive directors and veto powers regarding the CEO's appointment. The rights will expire on Saturday.
Telkom's board under the chairmanship of Lazarus Zim, who was appointed about two weeks ago, is working vigorously to ensure that it is able to appoint a CEO before the expiry date. Last week it interviewed candidates to take over from outgoing acting CEO Jeffrey Hedberg.
Communications Minister Roy Padayachie on Friday said that the government has "accepted" the rights will expire this week. However, the government is in discussions to "entrench certain special rights" it enjoys at Telkom, by including those rights in the new articles of association.
Mr Padayachie would not comment on which rights the state is keen to re-institute.
A Telkom executive said that to re-institute those rights, 75% of votes from other shareholders would be required. Combined with the Public Investment Corporation’s shares, the government owns about 54% in Telkom.
Mr Padayachie said the government was in discussions with the JSE to ensure that the rights it seeks are not in conflict with listing rules.
He said Telkom was a strategic asset and an important instrument to achieve universal access, including access to broadband services.
Meanwhile, Mr Padayachie held the first of a series of meetings with the CEOs and chairmen of the top 30 telecommunications and technology companies on Friday to discuss how they can, among other things, contribute to job creation and skills development.
The government aims to create 5-million jobs in the next 10 years.
Mr Padayachie said the New Growth Path also targets broadband infrastructure development as one of the main areas to fast-track economic development and job creation.
"We seek to guarantee that ICTs (information and communication technologies) will make its substantive contribution as an enabler for economic growth and the creation of new jobs and skills amongst our people as we strengthen the foundation for a knowledge-based economy."
Andile Ngcaba, the chairman of Dimension Data Africa, said jobs in the industry would come from many projects, such as the roll out of fibre networks and the migration from analogue to digital TV, which has the potential to create two indirect jobs per one direct job.
There are many layers in the digital migration process, from manufacturing, distribution and installation.
About 11-million set-top boxes, which can be used to receive the digital broadcasting signal, will be made in the next three years.
"The growth of (software) applications also provides job opportunities because we cannot always rely on international applications."
State seeks to extend special rights over Telkom
THE government is in discussions to extend certain special rights that it holds at Telkom, as it believes the company is a strategic asset that can assist with the roll out of broadband in rural areas.
The state owns 39% in Telkom and has special rights through its Class A shares, which give it the right to appoint a chairman, four nonexecutive directors and veto powers regarding the CEO's appointment. The rights will expire on Saturday.
Telkom's board under the chairmanship of Lazarus Zim, who was appointed about two weeks ago, is working vigorously to ensure that it is able to appoint a CEO before the expiry date. Last week it interviewed candidates to take over from outgoing acting CEO Jeffrey Hedberg.
Communications Minister Roy Padayachie on Friday said that the government has "accepted" the rights will expire this week. However, the government is in discussions to "entrench certain special rights" it enjoys at Telkom, by including those rights in the new articles of association.
Mr Padayachie would not comment on which rights the state is keen to re-institute.
A Telkom executive said that to re-institute those rights, 75% of votes from other shareholders would be required. Combined with the Public Investment Corporation’s shares, the government owns about 54% in Telkom.
Mr Padayachie said the government was in discussions with the JSE to ensure that the rights it seeks are not in conflict with listing rules.
He said Telkom was a strategic asset and an important instrument to achieve universal access, including access to broadband services.
Meanwhile, Mr Padayachie held the first of a series of meetings with the CEOs and chairmen of the top 30 telecommunications and technology companies on Friday to discuss how they can, among other things, contribute to job creation and skills development.
The government aims to create 5-million jobs in the next 10 years.
Mr Padayachie said the New Growth Path also targets broadband infrastructure development as one of the main areas to fast-track economic development and job creation.
"We seek to guarantee that ICTs (information and communication technologies) will make its substantive contribution as an enabler for economic growth and the creation of new jobs and skills amongst our people as we strengthen the foundation for a knowledge-based economy."
Andile Ngcaba, the chairman of Dimension Data Africa, said jobs in the industry would come from many projects, such as the roll out of fibre networks and the migration from analogue to digital TV, which has the potential to create two indirect jobs per one direct job.
There are many layers in the digital migration process, from manufacturing, distribution and installation.
About 11-million set-top boxes, which can be used to receive the digital broadcasting signal, will be made in the next three years.
"The growth of (software) applications also provides job opportunities because we cannot always rely on international applications."
State seeks to extend special rights over Telkom
Monday, February 28, 2011
South Africa - Govt considering local loop unbundling in urban areas this year to accelerate broadband roll-out
[fin 24] Government could possibly unbundle the local telecommunications loop (last-mile network) only in urban areas, in order to focus on better service delivery in rural areas.
This is according to Communications Minister Roy Padayachie, speaking in discussion with top business executives in the local ICT industry.
This was the first of the minister’s discussions with industry to improve cooperation between the industry and government, as well as negotiate on sticking points.
Open dialogue between the department and the private sector might have previously seemed unlikely. There was a tendency for industry to move in one direction and government in another, said Pa¬dayachie.
The minister told the media that government regarded the unbundling of the local loop as essential.
The local loop is used by Telkom [JSE:TKG] to deliver telephone and internet services to users. Its unbundling will give other companies access to the network, increasing competition and lowering prices.
Government plans to unbundle the loop by the end of this year, after delaying it for a year.
Padayachie reported that government was still in discussions regarding the best unbundling model, but the project would be completed before deadline.
However, there could be surprises in the type of unbundling model adopted, he said.
When Sake24 asked the minister to explain, he said government wanted to assess the impact of the unbundling very carefully. Questions needed to be asked about who would benefit most, and whether unbundling would really give rural areas the best access. It might be suited to urban areas, but not necessarily rural areas.
According to the minister, the department’s first priority was to improve and broaden the country’s telecommunications. It should be more inclusive, and expanding it into rural areas was very important.
Accelerated implementation of broadband was a core issue for the department, he said. The faster the cost of broadband could come down, the better it would be for the country.
Padayachie also stressed government wanted to work with the private sector to expand the industry and develop skills.
The country had to work together to stop the brain drain. Opportunities existed here in South Africa, not overseas, he said. Without skills the industry could not grow.
Government wanted companies to become international businesses and seize opportunities, particularly in Africa. European or American companies could not be allowed to snatch Africa from under South Africa’s nose.
The minister stressed various initiatives to overcome the difficulties, including the establishment of an e-skills institute.
Government and the industry had set up work groups to draw up a programme for the improvement of the country’s telecommunications. These groups comprised some of the foremost business executives, with the minister chairing each group.
A number of these business executives had lauded the minister’s discussions.
Allied Technologies chief executive Craig Venter said that from an industry point of view it was very refreshing to see the minister taking the reins.
Previously there might have been a lack of dialogue, he said, but current initiatives were not mere talk. Things were being done.
Govt to unbundle local loop in 2011
This is according to Communications Minister Roy Padayachie, speaking in discussion with top business executives in the local ICT industry.
This was the first of the minister’s discussions with industry to improve cooperation between the industry and government, as well as negotiate on sticking points.
Open dialogue between the department and the private sector might have previously seemed unlikely. There was a tendency for industry to move in one direction and government in another, said Pa¬dayachie.
The minister told the media that government regarded the unbundling of the local loop as essential.
The local loop is used by Telkom [JSE:TKG] to deliver telephone and internet services to users. Its unbundling will give other companies access to the network, increasing competition and lowering prices.
Government plans to unbundle the loop by the end of this year, after delaying it for a year.
Padayachie reported that government was still in discussions regarding the best unbundling model, but the project would be completed before deadline.
However, there could be surprises in the type of unbundling model adopted, he said.
When Sake24 asked the minister to explain, he said government wanted to assess the impact of the unbundling very carefully. Questions needed to be asked about who would benefit most, and whether unbundling would really give rural areas the best access. It might be suited to urban areas, but not necessarily rural areas.
According to the minister, the department’s first priority was to improve and broaden the country’s telecommunications. It should be more inclusive, and expanding it into rural areas was very important.
Accelerated implementation of broadband was a core issue for the department, he said. The faster the cost of broadband could come down, the better it would be for the country.
Padayachie also stressed government wanted to work with the private sector to expand the industry and develop skills.
The country had to work together to stop the brain drain. Opportunities existed here in South Africa, not overseas, he said. Without skills the industry could not grow.
Government wanted companies to become international businesses and seize opportunities, particularly in Africa. European or American companies could not be allowed to snatch Africa from under South Africa’s nose.
The minister stressed various initiatives to overcome the difficulties, including the establishment of an e-skills institute.
Government and the industry had set up work groups to draw up a programme for the improvement of the country’s telecommunications. These groups comprised some of the foremost business executives, with the minister chairing each group.
A number of these business executives had lauded the minister’s discussions.
Allied Technologies chief executive Craig Venter said that from an industry point of view it was very refreshing to see the minister taking the reins.
Previously there might have been a lack of dialogue, he said, but current initiatives were not mere talk. Things were being done.
Govt to unbundle local loop in 2011
South Africa - The CEO of state-owned Infraco has resigned after three months
[telecoms] The sudden departure of Broadband Infraco CEO Dave Smith on Friday last has left the South African stated-owned network infrastructure company’s future in doubt. Smith’s resignation comes just three months after the company launched its first commercial services.
With the firm already staggering under the weight of allegations of poor governance and dodgy procurement practices (which the company conceded had some substance and were under investigation), local industry players are now questioning the operation’s ability to come good on its mandate to deliver efficiently high-capacity, long-distance bandwidth to the country’s fixed and mobile operators.
Formed five years ago, when the SA government combined state electricity provider Eskom and railway operator Transnet’s ICT infrastructure, Broadband Infraco was tasked with providing a fibre-optic backbone aimed squarely at reducing costs and expanding the reach of the country’s communications networks. More than 12,000 km of fibre-optic cable was laid and the company is an anchor investor in the West African Cable System (WACS), due online this year and promising to link the south and west coast of the continent with Europe via 5.12 terabits of international bandwidth capacity.
With speculation regarding the organisation rife, there’s no mistaking the opportunity any potential privatisation of the entity would represent to a telco that was better positioned to take advantage of the infrastructure on offer.
In the face of mounting losses, Infraco launched last November – just in time for the biggest price slump in South African broadband history. In its first months the firm has had little impact, particularly as its mandate to enable low-cost broadband services has been stunted by its inability to move quickly enough to keep pace with the market. Nokia Siemens Networks oversees the 24x7x365 operations of the network.
SA’s Broadband Infraco in turmoil as CEO quits
With the firm already staggering under the weight of allegations of poor governance and dodgy procurement practices (which the company conceded had some substance and were under investigation), local industry players are now questioning the operation’s ability to come good on its mandate to deliver efficiently high-capacity, long-distance bandwidth to the country’s fixed and mobile operators.
Formed five years ago, when the SA government combined state electricity provider Eskom and railway operator Transnet’s ICT infrastructure, Broadband Infraco was tasked with providing a fibre-optic backbone aimed squarely at reducing costs and expanding the reach of the country’s communications networks. More than 12,000 km of fibre-optic cable was laid and the company is an anchor investor in the West African Cable System (WACS), due online this year and promising to link the south and west coast of the continent with Europe via 5.12 terabits of international bandwidth capacity.
With speculation regarding the organisation rife, there’s no mistaking the opportunity any potential privatisation of the entity would represent to a telco that was better positioned to take advantage of the infrastructure on offer.
In the face of mounting losses, Infraco launched last November – just in time for the biggest price slump in South African broadband history. In its first months the firm has had little impact, particularly as its mandate to enable low-cost broadband services has been stunted by its inability to move quickly enough to keep pace with the market. Nokia Siemens Networks oversees the 24x7x365 operations of the network.
SA’s Broadband Infraco in turmoil as CEO quits
UK - The strangely named Public Bodies Bill is being debated in the House of Lords
[parliament] The committee stage of the Public Bodies Bill will resume in the House of Lords on Monday 28 February. This seventh day in committee – detailed scrutiny of the Bill – was postponed following the all-night sitting of the House during committee stage debate on the Parliamentary Voting System and Constituencies Act.
The Lords are concerned over several provisions of the Bill and seem likely to amend or delete them.
Public Bodies Bill committee stage: day seven
The Lords are concerned over several provisions of the Bill and seem likely to amend or delete them.
Public Bodies Bill committee stage: day seven
USA - Analysis of the govt's national broadband map shows many schools lack sufficient broadband
[marketwire] The National Telecommunications and Information Agency (NTIA), a part of the U.S. Department of Commerce, recently released the National Broadband Map, the first searchable map of broadband availability across the country. The findings are particularly relevant for federal and state policymakers and point out that while virtually all schools are connected to the Internet, the speed of connection is woefully inadequate.
According to the press release from the NTIA, "...based on studies by state education technology directors, most schools need a connection of 50 to 100 Mbps per 1,000 students. The data show that two-thirds of surveyed schools subscribe to speeds lower than 25 Mbps, however."
"Ensuring high-speed broadband access for all students is a critical national issue and foundational to realizing our education reform and improvement goals," noted Douglas Levin, Executive Director of the State Educational Technology Directors Association (SETDA), the organization cited in the press release.
"And, high-speed broadband access is particularly important in rural and remote areas where opportunities for a wider variety of courses, especially in science, are fewer. Students everywhere need access to rich educational tools and resources; teachers need access for professional development and to engage in professional learning communities; administrators need high-speed broadband access to conduct online assessments and to access data for effective decision-making. Simply put, without continued and direct investment in broadband and educational technologies, education reformers are asking schools to improve, innovate and compete with one hand tied behind their back.
"We look forward to working with Congress and the Administration to ensure that all students have access to the tools and information necessary so that they can graduate fully prepared for college and 21st century careers," concluded Levin.
The SETDA report cited by NTIA is entitled, High-Speed Broadband Access for All Kids: Breaking through the Barriers, and is available online at: http://bit.ly/eCCvyU
National Broadband Map Reveals Quality of Schools Internet Connections Woefully Inadequate to Meet Education Goals
see also the National Broadband Map
and High-Speed Broadband Access for All Kids: Breaking through the Barriers
According to the press release from the NTIA, "...based on studies by state education technology directors, most schools need a connection of 50 to 100 Mbps per 1,000 students. The data show that two-thirds of surveyed schools subscribe to speeds lower than 25 Mbps, however."
"Ensuring high-speed broadband access for all students is a critical national issue and foundational to realizing our education reform and improvement goals," noted Douglas Levin, Executive Director of the State Educational Technology Directors Association (SETDA), the organization cited in the press release.
"And, high-speed broadband access is particularly important in rural and remote areas where opportunities for a wider variety of courses, especially in science, are fewer. Students everywhere need access to rich educational tools and resources; teachers need access for professional development and to engage in professional learning communities; administrators need high-speed broadband access to conduct online assessments and to access data for effective decision-making. Simply put, without continued and direct investment in broadband and educational technologies, education reformers are asking schools to improve, innovate and compete with one hand tied behind their back.
"We look forward to working with Congress and the Administration to ensure that all students have access to the tools and information necessary so that they can graduate fully prepared for college and 21st century careers," concluded Levin.
The SETDA report cited by NTIA is entitled, High-Speed Broadband Access for All Kids: Breaking through the Barriers, and is available online at: http://bit.ly/eCCvyU
National Broadband Map Reveals Quality of Schools Internet Connections Woefully Inadequate to Meet Education Goals
see also the National Broadband Map
and High-Speed Broadband Access for All Kids: Breaking through the Barriers
South Africa - Government recommitted to providing broadband for all, to boost the economy
[business live] The Department of Communications has reiterated its key policy of providing broadband for all in an effort to fast-track economic development, including job creation.
On Friday, Communications Minister Roy Padayachie outlined a strategy to create a R250 billion telecommunications industry in SA by 2020.
At a meeting with the country's top 30 information and communication technology (ICT) companies on Friday, he said that the Cabinet had called on the department to initiate programmes and activities to support the building of the New Growth Path. "We seek to guarantee that ICTs will make a substantive contribution as an enabler for economic growth and the creation of new jobs and skills among our people as we strengthen the foundation for a knowledge-based economy," Padayachie said.
The minister highlighted broadband access as a key policy priority. He said that the department aimed to improve broadband penetration to match countries including India, Brazil and Chile. "Our immediate activity will be to develop an Integrated Broadband Plan that will facilitate capital investment, innovation and rural access by 2020," he said.
The minister said that plans for connecting schools, health centres and government centres would not only improve service delivery but would also improve the uptake and usage of broadband by government and individuals. "To increase broadband penetration in schools and other public institutions, we will ensure that all outstanding universal obligations are implemented by industry by the end of 2011," Padayachie said. Policy and regulatory reform for convergence
The Department of Communications said that, by working with the Independent Communications Authority of SA (Icasa), it would ensure that a pro-competitive regulatory framework was put into place in the telecommunications subsector. Padayachie added that, in its quest to reduce the cost of communication, it would implement "pro-competitive remedies an all anti-competitive markets".
He said: "To achieve this, we will review the current funding model of Icasa to ensure that it is equal to the task while regulating competitively."
On Friday, the department announced the formation of a panel consisting of some of the leading private organisations in the ICT sector to tackle issues related to job creation, skills development, the adoption of forward-looking policies embracing convergence, and more work on the rollout of universal services.
The panel includes Andile Ngcaba, executive chair of Dimension Data SA, Craig Venter, CEO of Altech, Atul Gupta, chair and MD of Sahara Computers, Nolo Letele CEO of Multichoice, Pieter Uys, CEO of Vodacom, Sifiso Dabengwa, CEO of MTN, and Jayendra Naidoo, director and chair of J&J Group.
State reaffirms 'broadband for all' pledge
On Friday, Communications Minister Roy Padayachie outlined a strategy to create a R250 billion telecommunications industry in SA by 2020.
At a meeting with the country's top 30 information and communication technology (ICT) companies on Friday, he said that the Cabinet had called on the department to initiate programmes and activities to support the building of the New Growth Path. "We seek to guarantee that ICTs will make a substantive contribution as an enabler for economic growth and the creation of new jobs and skills among our people as we strengthen the foundation for a knowledge-based economy," Padayachie said.
The minister highlighted broadband access as a key policy priority. He said that the department aimed to improve broadband penetration to match countries including India, Brazil and Chile. "Our immediate activity will be to develop an Integrated Broadband Plan that will facilitate capital investment, innovation and rural access by 2020," he said.
The minister said that plans for connecting schools, health centres and government centres would not only improve service delivery but would also improve the uptake and usage of broadband by government and individuals. "To increase broadband penetration in schools and other public institutions, we will ensure that all outstanding universal obligations are implemented by industry by the end of 2011," Padayachie said. Policy and regulatory reform for convergence
The Department of Communications said that, by working with the Independent Communications Authority of SA (Icasa), it would ensure that a pro-competitive regulatory framework was put into place in the telecommunications subsector. Padayachie added that, in its quest to reduce the cost of communication, it would implement "pro-competitive remedies an all anti-competitive markets".
He said: "To achieve this, we will review the current funding model of Icasa to ensure that it is equal to the task while regulating competitively."
On Friday, the department announced the formation of a panel consisting of some of the leading private organisations in the ICT sector to tackle issues related to job creation, skills development, the adoption of forward-looking policies embracing convergence, and more work on the rollout of universal services.
The panel includes Andile Ngcaba, executive chair of Dimension Data SA, Craig Venter, CEO of Altech, Atul Gupta, chair and MD of Sahara Computers, Nolo Letele CEO of Multichoice, Pieter Uys, CEO of Vodacom, Sifiso Dabengwa, CEO of MTN, and Jayendra Naidoo, director and chair of J&J Group.
State reaffirms 'broadband for all' pledge
Oman - The third mobile licence has been issued by Sultan Qaboos to Sama, a Jordanian firm
[reuters] Sama Telecommunications has won Oman's third telecom licence, according to a decree issued by the Gulf Arab state's ruler, Sultan Qaboos, which was published on Sunday.
"Issuing a first grade licence for Sama Telecommunications LLC for the setting up and operation of a system to provide general international telecommunication services for 15 years," said the decree, carried by the state news agency ONA.
The agency did not give the value of the licence or other details.
State-controlled Oman Telecommunications Co. (Omantel) lost its monopoly in 2006, with the launch of Nawras, a unit of Qatar Telecommunications.
Sama Telecom wins third Oman licence - decree
"Issuing a first grade licence for Sama Telecommunications LLC for the setting up and operation of a system to provide general international telecommunication services for 15 years," said the decree, carried by the state news agency ONA.
The agency did not give the value of the licence or other details.
State-controlled Oman Telecommunications Co. (Omantel) lost its monopoly in 2006, with the launch of Nawras, a unit of Qatar Telecommunications.
Sama Telecom wins third Oman licence - decree
Egypt - Human rights group is suing operators for cutting off services denying access to emergency services
[it news africa] The Arabic Network for Human Rights Information (ANHRI) is suing mobile phone companies and Internet providers in Egypt for cutting off their service during the recent unrest in the country, the NGO said in a press release.
ANHRI, which defends freedom of expression in the Middle East and North Africa, filed a complaint to Egypt’s Prosecutor General last week, demanding that the minister of communications, chairman of the National Telecommunications Authority and CEOs of Mobinil, Vodafone and Etisalat companies, along with the country’s Internet providers, are put under investigation for the communication blackout that hit Egypt from January 28 through February 2.
During the 18 days of protests, which finally brought an end to the 30-year rule of Hosni Mubarak, the regime tried to cut communications in the country in the hopes that protesters would leave.
ANHRI said many lost their lives as a result of the cut in communications, not being able to call an ambulance or get urgent medical supplies to injured demonstrators.
The rights group said one of the victims of police brutality, Ahmed Abdel-Rahim Ahmed, 18, was shot in the chest by officers from the interior ministry while taking part in the peaceful demonstrations. His friends tried to reach an ambulance, but “the interruption of telecommunications denied Ahmed of the right to treatment.”
Shortly after Ahmed reached a hospital, carried by his friends, he died from massive blood loss.
“The criminality of telecommunications companies and ISPs during the revolution of January 25 did not stop at the violations of Egyptian citizens in communication and their right to free expression, but the criminality extended to participation in the siege of peaceful demonstrators and the deliberate denial of medical aid, which holds them criminally responsible and that the General Prosecutor has to open an urgent investigation so these criminals would not enjoy impunity,” the group said in a statement.
Egypt group sues over mobile blackouts
ANHRI, which defends freedom of expression in the Middle East and North Africa, filed a complaint to Egypt’s Prosecutor General last week, demanding that the minister of communications, chairman of the National Telecommunications Authority and CEOs of Mobinil, Vodafone and Etisalat companies, along with the country’s Internet providers, are put under investigation for the communication blackout that hit Egypt from January 28 through February 2.
During the 18 days of protests, which finally brought an end to the 30-year rule of Hosni Mubarak, the regime tried to cut communications in the country in the hopes that protesters would leave.
ANHRI said many lost their lives as a result of the cut in communications, not being able to call an ambulance or get urgent medical supplies to injured demonstrators.
The rights group said one of the victims of police brutality, Ahmed Abdel-Rahim Ahmed, 18, was shot in the chest by officers from the interior ministry while taking part in the peaceful demonstrations. His friends tried to reach an ambulance, but “the interruption of telecommunications denied Ahmed of the right to treatment.”
Shortly after Ahmed reached a hospital, carried by his friends, he died from massive blood loss.
“The criminality of telecommunications companies and ISPs during the revolution of January 25 did not stop at the violations of Egyptian citizens in communication and their right to free expression, but the criminality extended to participation in the siege of peaceful demonstrators and the deliberate denial of medical aid, which holds them criminally responsible and that the General Prosecutor has to open an urgent investigation so these criminals would not enjoy impunity,” the group said in a statement.
Egypt group sues over mobile blackouts
Sierra Leone - Libyan-owned Green Network has said it will launch it service in April
[tmc] Chief executive officer of Green Network Sierra Leone has said that once his company launches its commercial service in April this year, the network will offer affordable products that will meet the demand of their intended customers and the wider public.
Elmabruk S. Elgembari told dignitaries at the first official call on the company's network in Freetown that they were very much committed and determined to partner with the government to bring world class telecommunications services to the country.
"The products we will be offering after our commercial launch in April will meet the needs of our intended customers and Sierra Leoneans as a whole. Making the first official call to our network is a milestone for us," he said.
Mr. Elgembari thanked the government for their support and his team for working tirelessly to making the occasion a reality, while noting that their vision was connecting Africa for the future. He said one of their objectives was to contribute immensely towards national development and make the aspirations of the people become a reality through the quality telephone services they would be offering.
Answering to questions from the press, the chief executive officer disclosed that they currently have approximately 86 sites in the city and 42 in the provinces.
Minister of Information and Communication, Alhaji Ibrahim Ben Kargbo assured the company of his government's fullest support in ensuring that they succeed in the telecom business in the country.
"I want to pay special tribute to the leader and people of Libya for identifying Sierra Leone as a place for investment. We will continue to be friends with Libya and support them to invest in this country," he said.
Minister Kargbo reiterated government's commitment to develop the telecommunications sector since it plays a pivotal role in the country's development.
Libyan Ambassador to Sierra Leone, Dr. Al-Harari, commended the ministry of Information for the efforts made in facilitating the establishment of Green Network in the country.
He assured of the company's determination to provide job opportunities for many Sierra Leoneans and the best services in mobile communications.
Greennet to Offer Affordable Products - Chief Executive Promises
Elmabruk S. Elgembari told dignitaries at the first official call on the company's network in Freetown that they were very much committed and determined to partner with the government to bring world class telecommunications services to the country.
"The products we will be offering after our commercial launch in April will meet the needs of our intended customers and Sierra Leoneans as a whole. Making the first official call to our network is a milestone for us," he said.
Mr. Elgembari thanked the government for their support and his team for working tirelessly to making the occasion a reality, while noting that their vision was connecting Africa for the future. He said one of their objectives was to contribute immensely towards national development and make the aspirations of the people become a reality through the quality telephone services they would be offering.
Answering to questions from the press, the chief executive officer disclosed that they currently have approximately 86 sites in the city and 42 in the provinces.
Minister of Information and Communication, Alhaji Ibrahim Ben Kargbo assured the company of his government's fullest support in ensuring that they succeed in the telecom business in the country.
"I want to pay special tribute to the leader and people of Libya for identifying Sierra Leone as a place for investment. We will continue to be friends with Libya and support them to invest in this country," he said.
Minister Kargbo reiterated government's commitment to develop the telecommunications sector since it plays a pivotal role in the country's development.
Libyan Ambassador to Sierra Leone, Dr. Al-Harari, commended the ministry of Information for the efforts made in facilitating the establishment of Green Network in the country.
He assured of the company's determination to provide job opportunities for many Sierra Leoneans and the best services in mobile communications.
Greennet to Offer Affordable Products - Chief Executive Promises
Libya - State-owned Libya Telecom & Technology has launched a third mobile phone service
[bikyamasr] State-owned broadband provider Libya Telecom & Technology (LTT) has confirmed that it has launched Libya’s third mobile phone network, under the brand name LibyaPhone Mobile. Although no precise rollout details have been confirmed by the operator, it claims that its network has capacity for around 100,000 customers during the first phase of its operations.
LibyaPhone Mobile has pledged to extend coverage to areas under-served by fellow state-owned cellcos Libyana and Al Madar Telecomm Company. LTT claims that LibyaPhone Mobile will offer both 2G and 3G connectivity.
Although speculation regarding the launch of a third mobile phone operator in Libya has been rife for some time, in July 2010 it was confirmed that UAE’s Etisalat and Turkcell of Turkey had both been overlooked for a new LYD1 billion (USD825 million) concession. The General Telecommunication Authority (GTA) had previously launched an international tender for a combined fixed and mobile licence in February 2009, although its final decision was severely delayed, and no clear reasons were given for the lack of progress, merely that the international telcos were “unsuitable.”
According to TeleGeography, state-owned Libya Telecom & Technology (LTT) is the country’s dominant ISP and also acts as a moderator for the internet sector. The operator launched a commercial WiMAX network – operating in the 2.5GHz band – under the ‘LibyaMax’ banner in February 2009. Services have subsequently been expanded to over 25 locations, predominantly along the coast, covering around 65% of the population.
LibyaPhone Mobile enters Libyan wireless sector
LibyaPhone Mobile has pledged to extend coverage to areas under-served by fellow state-owned cellcos Libyana and Al Madar Telecomm Company. LTT claims that LibyaPhone Mobile will offer both 2G and 3G connectivity.
Although speculation regarding the launch of a third mobile phone operator in Libya has been rife for some time, in July 2010 it was confirmed that UAE’s Etisalat and Turkcell of Turkey had both been overlooked for a new LYD1 billion (USD825 million) concession. The General Telecommunication Authority (GTA) had previously launched an international tender for a combined fixed and mobile licence in February 2009, although its final decision was severely delayed, and no clear reasons were given for the lack of progress, merely that the international telcos were “unsuitable.”
According to TeleGeography, state-owned Libya Telecom & Technology (LTT) is the country’s dominant ISP and also acts as a moderator for the internet sector. The operator launched a commercial WiMAX network – operating in the 2.5GHz band – under the ‘LibyaMax’ banner in February 2009. Services have subsequently been expanded to over 25 locations, predominantly along the coast, covering around 65% of the population.
LibyaPhone Mobile enters Libyan wireless sector
Rwanda - Regulator has threatened to withdraw the licence of Libyan-owned Rwandatel
[east african business week] Rwandatel is at risk of losing its telecom license for failure to fulfill its license obligations, Rwanda telecom regulator has warned.
Rwanda Utilities Regulatory Agency (RURA) said the internet service provider and mobile services operator failed to meet its licence obligations. RURA said that Rwandatel failed to implement its investment plan, coverage, rollout plan and quality of services.
Rwandatel is a subsidiary of Green Network, which is part of Libya Africa Investment Portfolio (LAP), a US$5 billion Libyan foreign investment. LAP Green owns 80% of stake in Rwandatel while Rwanda Social Security Fund (RSSF) controls the rest.
Rwandatel was initially a public telephony firm and it was sold to LAP Green on November 18, 2008.In an enforcement notice issued on February 4, RURA gave Rwandatel only 30 days from the date of publication of the notice to meet its license obligations or lose its license.Before issuing the notice, RURA had been trying to persuade Rwandatel to implement its license obligations but in vain, the notice said.
RURA requested Rwandatel to meet its license obligations and submit an implementation report to the regulatory board at the end of the one-month notice.
Rwandatel was given seven days to appeal against the decision taken by the Regulatory board.
Attempts to seek comment from Rwandatel were futile its former Chief Commercial Officer (CCO) Mr. Francis Egbuson declined to comment.
Rwandatel at risk of losing telecom license
Rwanda Utilities Regulatory Agency (RURA) said the internet service provider and mobile services operator failed to meet its licence obligations. RURA said that Rwandatel failed to implement its investment plan, coverage, rollout plan and quality of services.
Rwandatel is a subsidiary of Green Network, which is part of Libya Africa Investment Portfolio (LAP), a US$5 billion Libyan foreign investment. LAP Green owns 80% of stake in Rwandatel while Rwanda Social Security Fund (RSSF) controls the rest.
Rwandatel was initially a public telephony firm and it was sold to LAP Green on November 18, 2008.In an enforcement notice issued on February 4, RURA gave Rwandatel only 30 days from the date of publication of the notice to meet its license obligations or lose its license.Before issuing the notice, RURA had been trying to persuade Rwandatel to implement its license obligations but in vain, the notice said.
RURA requested Rwandatel to meet its license obligations and submit an implementation report to the regulatory board at the end of the one-month notice.
Rwandatel was given seven days to appeal against the decision taken by the Regulatory board.
Attempts to seek comment from Rwandatel were futile its former Chief Commercial Officer (CCO) Mr. Francis Egbuson declined to comment.
Rwandatel at risk of losing telecom license
Rwanda - Regulator threatens to revoke licence of Rwandatel - owned by Libya Africa Investment Portfolio
[the east african] The licence held by Rwandatel, the country’s second telecom operator, is at stake following an enforcement notice issued by the Rwanda Utilities Regulatory Agency over failure to meet its obligations.
Rwandatel is a subsidiary of Green Network, which is part of the Libya Africa Investment Portfolio (LAP), a $5 billion foreign investment.
LAP Green has an 80 per cent stake in Rwandatel while the Social Security Fund of Rwanda has the remaining 20 per cent.
Through a legal enforcement notice signed by Rwanda Utilities Regulatory Agency (Rura) chairman Eugène Kazige, Rwandatel has been notified of its failure to implement its licence requirements, including coverage, rollout obligations, quality of services and investment plan.
The notice, seen by The EastAfrican, underlines Rwandatel’s non-compliance with the agreed investment plan as a telecom operator.
“During their licence acquisition — when we privatised Rwandatel in 2007 through a competitive process — LAP Green came up as the best bidder because of its technical proposal and financial proposal,” said Regis Gatarayiha, the acting director general of Rura.
Lap Green paid the $100m for the financial proposal, but Mr Gatarayiha said it has not fulfilled its technical proposal obligations.
“We found it (technical proposal) very good if implemented. The technical proposal is the annex to the licence that they get, with clear deliverables per year,” he said.
LAP Green was selected from four bidders, including South African giant Vodaphone, as it presented the best offer, including the highest purchase price.
It was the second time the government was privatising the telecom company after Terracom, an American firm that had initially taken over in 2005, failed to meet its licence obligations.
The Libyan company committed itself to invest $87 million in the first year, and another $177 million spread over five years from 2007.
“Now they have been in the market for almost four years yet we see something like 40 per cent of what was supposed to be invested,” said Mr Gatarayiha.
Rwandatel’s commitments also included upgrading the network, but this has not been done for the data and mobile segments.
“When we privatised, they were on CDMA. They had to change to GSM, with a clear rollout plan to cover the whole country. The target by 2010 was 70 per cent coverage in urban areas and 60 per cent in rural areas. Today, they have about 50 per cent for both,” Mr Gatarayiha said.
The regulator has also received a series of complaints from the company’s subscribers regarding the ineffectiveness of the company’s Internet modems and high rate of dropped calls.
Second telecom operator may lose licence
Rwandatel is a subsidiary of Green Network, which is part of the Libya Africa Investment Portfolio (LAP), a $5 billion foreign investment.
LAP Green has an 80 per cent stake in Rwandatel while the Social Security Fund of Rwanda has the remaining 20 per cent.
Through a legal enforcement notice signed by Rwanda Utilities Regulatory Agency (Rura) chairman Eugène Kazige, Rwandatel has been notified of its failure to implement its licence requirements, including coverage, rollout obligations, quality of services and investment plan.
The notice, seen by The EastAfrican, underlines Rwandatel’s non-compliance with the agreed investment plan as a telecom operator.
“During their licence acquisition — when we privatised Rwandatel in 2007 through a competitive process — LAP Green came up as the best bidder because of its technical proposal and financial proposal,” said Regis Gatarayiha, the acting director general of Rura.
Lap Green paid the $100m for the financial proposal, but Mr Gatarayiha said it has not fulfilled its technical proposal obligations.
“We found it (technical proposal) very good if implemented. The technical proposal is the annex to the licence that they get, with clear deliverables per year,” he said.
LAP Green was selected from four bidders, including South African giant Vodaphone, as it presented the best offer, including the highest purchase price.
It was the second time the government was privatising the telecom company after Terracom, an American firm that had initially taken over in 2005, failed to meet its licence obligations.
The Libyan company committed itself to invest $87 million in the first year, and another $177 million spread over five years from 2007.
“Now they have been in the market for almost four years yet we see something like 40 per cent of what was supposed to be invested,” said Mr Gatarayiha.
Rwandatel’s commitments also included upgrading the network, but this has not been done for the data and mobile segments.
“When we privatised, they were on CDMA. They had to change to GSM, with a clear rollout plan to cover the whole country. The target by 2010 was 70 per cent coverage in urban areas and 60 per cent in rural areas. Today, they have about 50 per cent for both,” Mr Gatarayiha said.
The regulator has also received a series of complaints from the company’s subscribers regarding the ineffectiveness of the company’s Internet modems and high rate of dropped calls.
Second telecom operator may lose licence
Libya - Thuraya's satellite services are being jammed by Gaddafi's residual government
[reuters] Thuraya Satellite Telecommunications Co's services are being jammed by Libya, the UAE-based firm's chief executive said on Thursday, as a revolt continued against Libyan leader Muammar Gaddafi.
"Unfortunately there is deliberate jamming by Libya ... which is illegal," CEO Samer Halawi told Al Arabiya television.
"Jamming started on Feb. 17 and it continues today. Our equipment is reducing the effects of the jamming so that we have coverage in 70 percent of Libya," Halawi said.
Based in the United Arab Emirates capital Abu Dhabi, Thuraya provides satellite telephone and other services across Asia, Africa, Europe and the Middle East. Emirates Telecommunications Corp (Etisalat) is a main shareholder of the company.
Forces loyal to Gaddafi launched a fierce counter-attack on Thursday, fighting gun battles with rebels who have threatened the Libyan leader by seizing important towns close to the capital.
On Monday, Al Jazeera television said Libya's intelligence agency was behind the powerful jamming that has disrupted the widely watched Arab satellite broadcaster's signal across much of the Middle East and North Africa.
On Saturday, Arbor Networks, a U.S. company that monitors Internet traffic said Internet service had been cut off in Libya for a second consecutive day.
Thuraya satellite telecom says jammed by Libya
"Unfortunately there is deliberate jamming by Libya ... which is illegal," CEO Samer Halawi told Al Arabiya television.
"Jamming started on Feb. 17 and it continues today. Our equipment is reducing the effects of the jamming so that we have coverage in 70 percent of Libya," Halawi said.
Based in the United Arab Emirates capital Abu Dhabi, Thuraya provides satellite telephone and other services across Asia, Africa, Europe and the Middle East. Emirates Telecommunications Corp (Etisalat) is a main shareholder of the company.
Forces loyal to Gaddafi launched a fierce counter-attack on Thursday, fighting gun battles with rebels who have threatened the Libyan leader by seizing important towns close to the capital.
On Monday, Al Jazeera television said Libya's intelligence agency was behind the powerful jamming that has disrupted the widely watched Arab satellite broadcaster's signal across much of the Middle East and North Africa.
On Saturday, Arbor Networks, a U.S. company that monitors Internet traffic said Internet service had been cut off in Libya for a second consecutive day.
Thuraya satellite telecom says jammed by Libya
Libya - Thuraya says that its service is being subject to unlawful and intentional jamming
[tmc] The mobile satellite communication services of UAE's Thuraya Telecommunications have been subjected to harmful and intentional interference in Libya over the past seven days, affecting both data and voice communications over Libya and some surrounding areas.
In a statement issued on Friday, the company stated that it had conclusive evidence showing that the interference came as a result of unlawful and intentional jamming activities.
The company alleged that the reason for being a target of this jamming is likely to be the success of the company's products and services in the country and the wide availability of those in the market.
Thuraya also said it would be looking for legal recourse, but in the meantime, its technical teams have worked tirelessly to mitigate the impact of the interference. The voice services were restored over much of the country.
Thuraya-2 network is operational as normal in most of the coverage area. Thuraya is a leading provider of mobile satellite services in more than 140 countries in Europe, Africa, Middle East, Asia and Australia.
Thuraya services affected in Libya
In a statement issued on Friday, the company stated that it had conclusive evidence showing that the interference came as a result of unlawful and intentional jamming activities.
The company alleged that the reason for being a target of this jamming is likely to be the success of the company's products and services in the country and the wide availability of those in the market.
Thuraya also said it would be looking for legal recourse, but in the meantime, its technical teams have worked tirelessly to mitigate the impact of the interference. The voice services were restored over much of the country.
Thuraya-2 network is operational as normal in most of the coverage area. Thuraya is a leading provider of mobile satellite services in more than 140 countries in Europe, Africa, Middle East, Asia and Australia.
Thuraya services affected in Libya
Air - Lufthansa is reporting success with its broadband Internet access services in planes
[breaking travel news] The inflight broadband connectivity offered by Lufthansa has been very well received by customers. Since the launch of Lufthansa FlyNet in December, many passengers on longhaul flights to the United States have used the new service. “Email accessibility is immensely important, particularly for business travellers, but many leisure travellers are also taking advantage of the service,” says Christian Körfgen, Vice President Product Management and Innovation. “Meanwhile our surveys show that passengers are very interested in browsing the latest news on the Internet and accessing social networks.” Lufthansa is well on schedule and has already equipped 17 of its long-range aircraft with Lufthansa FlyNet, Körfgen explains. “Only two months after the introduction of this service, almost 20 per cent of our long-haul fleet is WiFi equipped.”
Through a hotspot, passengers have high-speed wireless access to the Internet via their laptop, iPad or smartphone. Thanks to the high bandwidth connection, e-mails – even with file attachments – can be sent and received without any time delay. Furthermore, FlyNet enables business travellers to connect to their corporate server via a Virtual Private Network (VPN). Data communication using the GSM and GPRS international cell phone standards will soon also be possible. In addition to WLAN, the communication options on board will then include cell phone text messaging and data transfer with smartphones such as the iPhone or BlackBerry. As before, however, passengers will not be permitted to use their mobiles phones to make calls.
Lufthansa offers the service in cooperation with its partners Panasonic Avionics Corporation and Deutsche Telekom. FlyNet is extremely easy to use. From any point in the aircraft cabin, passengers with a WLAN-enabled device can log on to the Internet in the same way as they would do at a public hotspot. After opening up their browser, they are automatically connected to the exclusive, free of charge Lufthansa FlyNet portal, which provides constant updates on business, political, sports and entertainment news. For Internet use various different billing options are available: passengers can pay by credit card or by redeeming Miles & More award miles. Alternatively, they can choose to be billed by Deutsche Telekom if that is their mobile service provider, or by an affiliated roaming partner. The one-hour flat rate is 10.95 euros or 3,500 miles; a 24-hour flat rate is available for 19.95 euros or 7,000 miles. Within the 24-hour period of validity, passengers can surf the Web on any connecting Lufthansa flight equipped with a hotspot or at a Lufthansa lounge after their flight.
Lufthansa FlyNet receives very positive response
Through a hotspot, passengers have high-speed wireless access to the Internet via their laptop, iPad or smartphone. Thanks to the high bandwidth connection, e-mails – even with file attachments – can be sent and received without any time delay. Furthermore, FlyNet enables business travellers to connect to their corporate server via a Virtual Private Network (VPN). Data communication using the GSM and GPRS international cell phone standards will soon also be possible. In addition to WLAN, the communication options on board will then include cell phone text messaging and data transfer with smartphones such as the iPhone or BlackBerry. As before, however, passengers will not be permitted to use their mobiles phones to make calls.
Lufthansa offers the service in cooperation with its partners Panasonic Avionics Corporation and Deutsche Telekom. FlyNet is extremely easy to use. From any point in the aircraft cabin, passengers with a WLAN-enabled device can log on to the Internet in the same way as they would do at a public hotspot. After opening up their browser, they are automatically connected to the exclusive, free of charge Lufthansa FlyNet portal, which provides constant updates on business, political, sports and entertainment news. For Internet use various different billing options are available: passengers can pay by credit card or by redeeming Miles & More award miles. Alternatively, they can choose to be billed by Deutsche Telekom if that is their mobile service provider, or by an affiliated roaming partner. The one-hour flat rate is 10.95 euros or 3,500 miles; a 24-hour flat rate is available for 19.95 euros or 7,000 miles. Within the 24-hour period of validity, passengers can surf the Web on any connecting Lufthansa flight equipped with a hotspot or at a Lufthansa lounge after their flight.
Lufthansa FlyNet receives very positive response
India - A month into mobile number portability, Vodafone has been the biggest winner
[economic times] Nearly a month after the nationwide rollout of mobile number portability services, Vodafone Essar has emerged as the biggest gainer, notching up 1.9 lakh new subscribers, whereas state-owned BSNL lost more customers than it attracted from other service providers.
Since the launch of MNP services, nearly 20 lakh mobile subscribers have switched service providers using the facility.
MNP allows users to change service providers while retaining their phone numbers.
"A total of 19,79,600 numbers of subscribers have ported their numbers so far using the MNP facility," according to official figures provided in the Rajya Sabha by the Department of Telecom ( DoT )).
Prime Minister Manmohan Singh had launched nationwide MNP services on January 20 this year. It has been a month since the service was started and as expected, older GSM operators like Vodafone Essar, Airtel and Idea Cellular continue to lure the bulk of subscribers to their networks.
According to latest available figures, Vodafone Essar gained as many as 1.9 lakh customers, followed by Idea Cellular, with a net gain of 1.5 lakh subscribers.
The figures denote the difference between the number of customers porting in and porting out.
The country's largest operator, Bharti Airtel remained at number three with a net gain of about 1.48 lakh subscribers till date.
However, most operators stick by the theory that MNP will not be a game-changer for the industry.
CDMA operators are facing a huge exodus of subscribers, with RCOM, Tata Teleservices and BSNL losing subscribers to old and established GSM service providers.
In the case of RCom (CDMA), as many as 1.34 lakh subscribers ported out, while 5,717 ported in. Similarly, TTSL (CDMA) lost over 1.04 subscribers while attracting only 8,298 subscribers to its fold.
All that a customer needs to do for changing his telecom operator is pay a maximum of Rs 19. He/she will get a new service provider within seven working days as per the guidelines of the sectoral regulator, Telecom Regulatory Authority of India .
Among the new operators, Uninor and Sistema Shyam attracted more subscribers than they lost, but others were hit by the facility as they lost more subscribers, the data revealed.
To combat this, these operators had lowered tariffs along with doling out freebies. Regional operators have also upped the ante, as they feared losing customers.
MNP services were first launched in Haryana in November last year and according to industry estimates, less than one per cent of subscribers opted for changing their operators.
Both pre-paid and post-paid consumers can use the MNP service.
Vodafone emerges biggest gainer of MNP,adds nearly 1.9 lakh users
Since the launch of MNP services, nearly 20 lakh mobile subscribers have switched service providers using the facility.
MNP allows users to change service providers while retaining their phone numbers.
"A total of 19,79,600 numbers of subscribers have ported their numbers so far using the MNP facility," according to official figures provided in the Rajya Sabha by the Department of Telecom ( DoT )).
Prime Minister Manmohan Singh had launched nationwide MNP services on January 20 this year. It has been a month since the service was started and as expected, older GSM operators like Vodafone Essar, Airtel and Idea Cellular continue to lure the bulk of subscribers to their networks.
According to latest available figures, Vodafone Essar gained as many as 1.9 lakh customers, followed by Idea Cellular, with a net gain of 1.5 lakh subscribers.
The figures denote the difference between the number of customers porting in and porting out.
The country's largest operator, Bharti Airtel remained at number three with a net gain of about 1.48 lakh subscribers till date.
However, most operators stick by the theory that MNP will not be a game-changer for the industry.
CDMA operators are facing a huge exodus of subscribers, with RCOM, Tata Teleservices and BSNL losing subscribers to old and established GSM service providers.
In the case of RCom (CDMA), as many as 1.34 lakh subscribers ported out, while 5,717 ported in. Similarly, TTSL (CDMA) lost over 1.04 subscribers while attracting only 8,298 subscribers to its fold.
All that a customer needs to do for changing his telecom operator is pay a maximum of Rs 19. He/she will get a new service provider within seven working days as per the guidelines of the sectoral regulator, Telecom Regulatory Authority of India .
Among the new operators, Uninor and Sistema Shyam attracted more subscribers than they lost, but others were hit by the facility as they lost more subscribers, the data revealed.
To combat this, these operators had lowered tariffs along with doling out freebies. Regional operators have also upped the ante, as they feared losing customers.
MNP services were first launched in Haryana in November last year and according to industry estimates, less than one per cent of subscribers opted for changing their operators.
Both pre-paid and post-paid consumers can use the MNP service.
Vodafone emerges biggest gainer of MNP,adds nearly 1.9 lakh users
Ethiopia - The dead and the retired assigned new posts in reshuffle of the telecoms monopolist
[ethiopian reporter] Prime Minsiter Meles Zenawi has assigned Arkebe Oqubay, advisor to the Prime Minster with the rank of minister, to investigate and take appropriate action over the mishandling of the reassignment of the staff of the former Ethiopian Telecommunications Corporation (ETC) following the takeover of its management by France Telcom in December 2010. Out of the 12,000 employees only about 4,000 have been assigned to new posts in the newly formed company called EthioTelecom while the fate of the remaining still not yet known.
Employees of ETC had complained that the committee set up by France Telecom and the Ethiopian government made grave mistakes while assigning the employees to new positions like assigning deceased employees of ETC and former employees who now reside abroad. The employees also said that the assignments were not based on merit but were rather driven by favoritism and political considerations.
The disgruntled employees have lodged a letter detailing their grievances to the premier. Accordingly, the Prime Minister assigned Arkebe to investigate the mishandling and seek solutions for the mishap. Sources told The Reporter that four executives of EthioTelecom who were tasked with carrying out the reassignment have been removed from their positions.
Following the announcement by France Telecom that it will need only 4,000 employees EthioTelecom is in a total disarray. Observers say this has led to a deterioration in the quality of the mobile phone and internet services.
Arkebe to probe mishandling of staff assignment in EthioTelecom
Employees of ETC had complained that the committee set up by France Telecom and the Ethiopian government made grave mistakes while assigning the employees to new positions like assigning deceased employees of ETC and former employees who now reside abroad. The employees also said that the assignments were not based on merit but were rather driven by favoritism and political considerations.
The disgruntled employees have lodged a letter detailing their grievances to the premier. Accordingly, the Prime Minister assigned Arkebe to investigate the mishandling and seek solutions for the mishap. Sources told The Reporter that four executives of EthioTelecom who were tasked with carrying out the reassignment have been removed from their positions.
Following the announcement by France Telecom that it will need only 4,000 employees EthioTelecom is in a total disarray. Observers say this has led to a deterioration in the quality of the mobile phone and internet services.
Arkebe to probe mishandling of staff assignment in EthioTelecom
Australia - Operator calls for an independent board to govern the NBN to ensure competition
[the australian] OPERATION of the $36 billion National Broadband Network should be put out to competitive tender if the project is to have a chance of being a commercial success, a senior industry figure has warned.
Optus chief executive Paul O'Sullivan said tenders for operation of the giant fibre network should be issued on a state-by-state basis to enhance competition and ensure the NBN has the best chance of delivering acceptable levels of customer service.
"These contracts should be reviewed every (few) years, based on the quality of service and efficiency of each of the operators," he said. "By having a variety of operators it will be possible to do comparisons between them.
"What's also important is that no retail carrier is able to take control or have a strong say in the operation of these companies."
Delivering a keynote presentation to a gathering of technology media on the Gold Coast, Mr O'Sullivan said the NBN should also be overseen by an independent board to ensure its operation remains at arms' length both from government and existing telecommunications players.
He likened such a body to Australia's Reserve Bank which is free to set monetary policy without direct government influence or intervention.
"Whatever the model it is important we have a structure in place to ensure we don't create another lumbering monopoly. We can't afford for the NBN to become the British rail or Telstra of the 21st century," he said.
Mr O'Sullivan, who has maintained a relatively low profile in the ongoing debate surrounding the NBN, said it was time to move on from the arguments about whether it should be built and instead focus on how it can best serve Australians.
"I want to take the view that the NBN is almost certainly going to be built," he said. "We can see that in the way that the Government is rolling (it) out now."
However he believes the ongoing debate has "shrunk" and many of the issues that should be being discussed are disappearing under arguments about things such as funding and fixed verses wireless networks.
Mr O'Sullivan also called for greater transparency over the agreements being Telstra and NBN Co around the migration of customers from the carrier's ageing copper phone lines onto the new network.
He cautioned that Telstra should be prevented from using the $11bn in payments it will receive for its customers as a way to subsidise their transfer to the NBN.
He said this will create an "uneven playing field" where other service providers will be disadvantaged as their costs of customer acquisition will be significantly higher.
"There will be a land-grab in the first years of the NBN," he said. "It will in fact be ‘stickier' for customers than any previous service, as it will be carrying television, broadband and (things like) cloud services. It will be difficult to churn."
Mr O'Sullivan also highlighted another area of concern around content and how steps need to be taken to ensure competition in this vital area remains strong in the era of the NBN.
He said a key concern is the rise of a "winner takes all" organisations which could potentially limit people's access to different sources of content.
Mr O'Sullivan pointed to companies such as Google and eBay which have reached such critical mass that other companies find it difficult to compete.
"There is a huge cliff edge for any second entrant who wants to be a challenger in those application areas," he said. "I don't have the answers, but I think it's a debate that needs strong discussion if we're to avoid the development of monopoly-type providers in the application world."
Independent board should run NBN, says Optus chief
Optus chief executive Paul O'Sullivan said tenders for operation of the giant fibre network should be issued on a state-by-state basis to enhance competition and ensure the NBN has the best chance of delivering acceptable levels of customer service.
"These contracts should be reviewed every (few) years, based on the quality of service and efficiency of each of the operators," he said. "By having a variety of operators it will be possible to do comparisons between them.
"What's also important is that no retail carrier is able to take control or have a strong say in the operation of these companies."
Delivering a keynote presentation to a gathering of technology media on the Gold Coast, Mr O'Sullivan said the NBN should also be overseen by an independent board to ensure its operation remains at arms' length both from government and existing telecommunications players.
He likened such a body to Australia's Reserve Bank which is free to set monetary policy without direct government influence or intervention.
"Whatever the model it is important we have a structure in place to ensure we don't create another lumbering monopoly. We can't afford for the NBN to become the British rail or Telstra of the 21st century," he said.
Mr O'Sullivan, who has maintained a relatively low profile in the ongoing debate surrounding the NBN, said it was time to move on from the arguments about whether it should be built and instead focus on how it can best serve Australians.
"I want to take the view that the NBN is almost certainly going to be built," he said. "We can see that in the way that the Government is rolling (it) out now."
However he believes the ongoing debate has "shrunk" and many of the issues that should be being discussed are disappearing under arguments about things such as funding and fixed verses wireless networks.
Mr O'Sullivan also called for greater transparency over the agreements being Telstra and NBN Co around the migration of customers from the carrier's ageing copper phone lines onto the new network.
He cautioned that Telstra should be prevented from using the $11bn in payments it will receive for its customers as a way to subsidise their transfer to the NBN.
He said this will create an "uneven playing field" where other service providers will be disadvantaged as their costs of customer acquisition will be significantly higher.
"There will be a land-grab in the first years of the NBN," he said. "It will in fact be ‘stickier' for customers than any previous service, as it will be carrying television, broadband and (things like) cloud services. It will be difficult to churn."
Mr O'Sullivan also highlighted another area of concern around content and how steps need to be taken to ensure competition in this vital area remains strong in the era of the NBN.
He said a key concern is the rise of a "winner takes all" organisations which could potentially limit people's access to different sources of content.
Mr O'Sullivan pointed to companies such as Google and eBay which have reached such critical mass that other companies find it difficult to compete.
"There is a huge cliff edge for any second entrant who wants to be a challenger in those application areas," he said. "I don't have the answers, but I think it's a debate that needs strong discussion if we're to avoid the development of monopoly-type providers in the application world."
Independent board should run NBN, says Optus chief
Saturday, February 26, 2011
USA - Report slams waste in spending billions from the Universal Service Fund
[ars technica] A new study issues a stern warning to the Federal Communications Commission as it embarks upon transitioning its Universal Service Fund from phone service to broadband. First, the government must address the fact that a big percentage of USF cash currently goes to "inflated overhead expenses," rather than to making a call more affordable.
Here's the bottom line, according to the Technology Policy Institute's report. Of each dollar distributed to the USF's High Cost Fund, which subsidizes phone carriers in mostly rural areas, 59 cents goes to "general and administrative expenses"—personnel, government relations, planning—rather than to the actual business of making telephone service cheaper. The study is based on a review of 1,400 receivers of these subsidies from 1998 to 2008.
"These results, consistent with a large body of economics literature, suggest that the Universal Service Fund's method for subsidizing service in high-cost areas should be radically overhauled as a key component of the current desire to shift USF support from voice to broadband," concludes the report, authored by the TPI's vice president for research Scott Wallsten.
This finding can't be a complete surprise to the FCC, which is in the process of managing that shift. The USF was designed "for a world that no longer exists," FCC Chair Julius Genachowski told the Information Technology and Innovation Foundation last month. It was created "for a world with separate local and long-distance telephone companies; a world of traditional, landline telephones before cell phones or Skype; a world without the Internet."
Report: huge chunks of your phone bill's USF fee wasted
see also Full text of report
Here's the bottom line, according to the Technology Policy Institute's report. Of each dollar distributed to the USF's High Cost Fund, which subsidizes phone carriers in mostly rural areas, 59 cents goes to "general and administrative expenses"—personnel, government relations, planning—rather than to the actual business of making telephone service cheaper. The study is based on a review of 1,400 receivers of these subsidies from 1998 to 2008.
"These results, consistent with a large body of economics literature, suggest that the Universal Service Fund's method for subsidizing service in high-cost areas should be radically overhauled as a key component of the current desire to shift USF support from voice to broadband," concludes the report, authored by the TPI's vice president for research Scott Wallsten.
This finding can't be a complete surprise to the FCC, which is in the process of managing that shift. The USF was designed "for a world that no longer exists," FCC Chair Julius Genachowski told the Information Technology and Innovation Foundation last month. It was created "for a world with separate local and long-distance telephone companies; a world of traditional, landline telephones before cell phones or Skype; a world without the Internet."
Report: huge chunks of your phone bill's USF fee wasted
see also Full text of report
China - Allegedly Govt is preparing a trade dispute against EU for subsidising EU manufacturers
[telecoms] An internally distributed study undertaken by China’s Ministry of Commerce reportedly suggests imminent action against the EU for its subsidisation of major telecoms infrastructure companies.
A “person familiar with the matter” has told the Wall Street Journal that China views EU subsidies for telecoms companies as a breach of WTO rules and is ready to retaliate in the event that Europe acts on its recent findings that Chinese giants such as Huawei and ZTE benefit from significant government financial backing.
Earlier this month, the EU Commission distributed findings that Huawei and ZTE are state-controlled and receive cheap government loans that give them an unfair advantage over European competitors. Huawei has strenuously denied the allegations, stating that its receipt of a $30bn credit line from China Development Bank was for customers buying the company’s equipment, not the organisation itself, and therefore complied with OECD standards. ZTE received a $15bn credit line from the China Development Bank and $10bn from the China Export-Import Bank in 2009.
On the other side of the fence, China points to EU research and development grants to telecom manufacturers totalling €9.1bn for 2007-2013 as well as $2bn-worth of loans on non-commercial terms from the European Investment Bank to three unnamed European telecom equipment makers as evidence of European hypocrisy.
The EU report arose from a complaint last year by Belgian wireless device manufacturer Option that has since been withdrawn, following an agreement with Huawei last October. The EU has proposed dropping the case, stating in a document issued to member-state governments that “It would be disproportionate to continue the investigation and impose measures following the withdrawal of the complaint.” Whether the Chinese government will feel the same about its findings on European big-guns such as Nokia and Ericsson remains to be seen.
EU-China spat brewing over telecoms subsidies
A “person familiar with the matter” has told the Wall Street Journal that China views EU subsidies for telecoms companies as a breach of WTO rules and is ready to retaliate in the event that Europe acts on its recent findings that Chinese giants such as Huawei and ZTE benefit from significant government financial backing.
Earlier this month, the EU Commission distributed findings that Huawei and ZTE are state-controlled and receive cheap government loans that give them an unfair advantage over European competitors. Huawei has strenuously denied the allegations, stating that its receipt of a $30bn credit line from China Development Bank was for customers buying the company’s equipment, not the organisation itself, and therefore complied with OECD standards. ZTE received a $15bn credit line from the China Development Bank and $10bn from the China Export-Import Bank in 2009.
On the other side of the fence, China points to EU research and development grants to telecom manufacturers totalling €9.1bn for 2007-2013 as well as $2bn-worth of loans on non-commercial terms from the European Investment Bank to three unnamed European telecom equipment makers as evidence of European hypocrisy.
The EU report arose from a complaint last year by Belgian wireless device manufacturer Option that has since been withdrawn, following an agreement with Huawei last October. The EU has proposed dropping the case, stating in a document issued to member-state governments that “It would be disproportionate to continue the investigation and impose measures following the withdrawal of the complaint.” Whether the Chinese government will feel the same about its findings on European big-guns such as Nokia and Ericsson remains to be seen.
EU-China spat brewing over telecoms subsidies
UK - Consumer panel calls for a ban on "up to" speeds for broadband
[isp review] The Communications Consumer Panel (CCP), an independent watchdog for the communications sector that doesn't really engage with consumers directly, has yet again called upon ISPs to stop using the "up to" expression in their broadband speed advertising. Instead they want providers to show a "typical speed".
Today's move came as part of CCP's official submission to the Advertising Standards Authority (ASA) and its current consultation on clearer broadband ISP advertising of internet access speeds and "unlimited" usage allowances.
The UK Consumer Panel Calls Upon ASA to BAN up to Broadband ISP Speeds
Today's move came as part of CCP's official submission to the Advertising Standards Authority (ASA) and its current consultation on clearer broadband ISP advertising of internet access speeds and "unlimited" usage allowances.
The UK Consumer Panel Calls Upon ASA to BAN up to Broadband ISP Speeds
Wednesday, February 23, 2011
Mauritius - NCA is investigation triple-play offer because of possible abuse of monopoly position on ADSL market
[telecompaper] The Competition Commission of Mauritius (CCM) has opened an investigation into Mauritius Telecom's MyT triple-play product due to concerns that the operator could be using its effective monopoly of the ADSL market to gain an advantage in the sale of TV services and international calls. It will look into whether Mauritius Telecom refuses to supply the higher-speed ADSL products except as part of a package, or prices the MyT bundle against the "ADSL-only" service in a way that influences customers to choose MyT. If the CCM finds that Mauritius Telecom's actions have restricted competition, it can impose remedial measures, but not financial penalties, which can only be applied for collusion between competing companies
Competition Commission investigates Mauritius Telecom
Competition Commission investigates Mauritius Telecom
Tuesday, February 22, 2011
India - Govt has conceded a parliamentary inquiry into the 2G spectrum licence scam
[reuters]Indian Prime Minister Manmohan Singh gave in on Tuesday to opposition demands for a parliamentary probe into a multi-billion dollar scandal over sales of telecoms licenses for kickbacks, a setback for his embattled government and a victory for the opposition.
Singh, wary that a parliamentary probe could drag on for months and overshadow his Congress party-led coalition, only bowed to pressure after months of opposition protests stalled the last parliamentary session and threatened to block passage of the Feb. 28 budget.
"Our country can ill afford a situation when parliament is paralysed," Singh told parliament.
The Hindu newspaper on Tuesday called the scandal, in which the state auditor said up to $39 billion was lost in revenues, "the biggest scam in the history of independent India."
The government will likely stay in power, but is wary of a repeat of 1989 when Congress lost a general election due to the Bofors scandal over gun contracts involving associates of then Prime Minister Rajiv Gandhi who were accused of taking bribes.
The latest controversy has halted the progress of reform bills and worried some investors in Asia's third biggest economy. Concerns about security of contract, combined with the global slowdown, have hit foreign direct investment and contributed to the Mumbai stock exchange's recent performance, the worst of the world's major share markets.
India PM bows to opposition
Singh, wary that a parliamentary probe could drag on for months and overshadow his Congress party-led coalition, only bowed to pressure after months of opposition protests stalled the last parliamentary session and threatened to block passage of the Feb. 28 budget.
"Our country can ill afford a situation when parliament is paralysed," Singh told parliament.
The Hindu newspaper on Tuesday called the scandal, in which the state auditor said up to $39 billion was lost in revenues, "the biggest scam in the history of independent India."
The government will likely stay in power, but is wary of a repeat of 1989 when Congress lost a general election due to the Bofors scandal over gun contracts involving associates of then Prime Minister Rajiv Gandhi who were accused of taking bribes.
The latest controversy has halted the progress of reform bills and worried some investors in Asia's third biggest economy. Concerns about security of contract, combined with the global slowdown, have hit foreign direct investment and contributed to the Mumbai stock exchange's recent performance, the worst of the world's major share markets.
India PM bows to opposition
India - In the face of corruption scandals, notably in telecoms, the Govt is now to ratify the UN Convention against Corruption
[indian express] The government's preoccupation with how to tackle the allegations of corruption which have dogged it in the last few months were reflected in President Pratibha Patil's address to both Houses of Parliament at the start of the Budget Session. The President announced that India would be finally ratifying a United Nations Convention against corruption, among other measures to “address frontally the concerns regarding the lack of probity and integrity in public life.”
Measures which the government appeared to have committed on include a partial public funding of elections, and a renewed commitment to bringing back Indian black money stashed abroad. She also detailed at length the direction in which a Group of Ministers on corruption will be working on. “The Group will consider issues relating to the formulation of a public procurement policy and the enunciation of public procurement standards., review and abolition of discretionary powers enjoyed by ministers, introduction of an open and competitive system of exploiting natural resources, fast tracking of cases against public servants charged with corruption, and amendments to the relevant laws to facilitate quicker action against public servants,” Patil said.
Corruption and inflation top govt priorities, says President
Measures which the government appeared to have committed on include a partial public funding of elections, and a renewed commitment to bringing back Indian black money stashed abroad. She also detailed at length the direction in which a Group of Ministers on corruption will be working on. “The Group will consider issues relating to the formulation of a public procurement policy and the enunciation of public procurement standards., review and abolition of discretionary powers enjoyed by ministers, introduction of an open and competitive system of exploiting natural resources, fast tracking of cases against public servants charged with corruption, and amendments to the relevant laws to facilitate quicker action against public servants,” Patil said.
Corruption and inflation top govt priorities, says President
Monday, February 21, 2011
Europe - EC has surveyed citizens on their use of roaming and attitudes to charges
[ec] Mobile phones are increasingly becoming not only the most important but also the only means of voice telephony for Europeans. 87% of respondents have a mobile phone compared to 80% in 2006 while 26% now use it exclusively in comparison to 20% in 2006.
Consequently, the group of potential users of roaming services is also constantly growing, both in terms of size and heterogeneity. The differences in mobile phone penetration between countries are shrinking and even the oldest age group, which showed significantly lower levels of mobile phone usage in 2006, are quickly catching up with their younger counterparts, with 71% now having a mobile phone compared to 57% in 2006.
Significantly fewer Europeans report having travelled in the EU in this present
survey than in 2006. This is undoubtedly a consequence of the economic downturn. In
2010, 48% of mobile phone users say they have travelled within last 4-5 years and 28%
have travelled both prior to and since the Roaming Regulation.
The results do not show significant evolutions in the proportion of respondents using different types of services, with the exception of Internet-related services, which seem to be used more now than in 2006. European mobile phone users continue to favour voice calls (55%) and text message services (52%) while abroad with 10% making use of Internet related services. The increased usage of roaming internet-related services reflects the recent market uptake of mobile data services.
While overall the proportion of roaming service users has remained stable since 2006, a higher proportion of frequent travellers are now using their mobile phones while abroad, possibly because they have first-hand experience of the recent price decreases.
Furthermore, the respondents are using roaming services to a greater extent
than in 2006. Significant increases can be observed in the frequency of making
(32%) and receiving voice calls (31%) and in particular of sending text
messages (43%) since 2006. Young people in particular are significantly more likely
to use these roaming services now than in 2006.
However, an overwhelming 72% of mobile users continue to limit their mobile voice calls while abroad because they are concerned about the costs. It is also implied that some respondents substitute their voice calls by text messages and Internet-related services while abroad, i.e. they change their user pattern in terms of the type of services they use. Young respondents are particularly prone to cut down their voice calls while travelling. Among the 10% of mobile users who reported currently using data roaming services while abroad, the general tendency appears to be that the price of using data services is not regarded as fair.
The perceived excessive roaming costs still appear to discourage Europeans of using roaming services, even if a majority of mobile phone users agrees that these costs have decreased. Among frequent travellers, 61% are aware of the positive price developments that have occurred over the last four years.
Awareness of lower roaming prices is obviously strongly linked to first-hand experiences during the period of change: those who travel frequently and use any of the roaming services are significantly more likely to believe that costs have fallen than those who have not travelled both prior to and since the Regulation and those who avoid using their mobile phone while abroad. The oldest age group in particular tends to be less knowledgeable about recent developments.
SPECIAL EUROBAROMETER 356 - Roaming in 2010
Consequently, the group of potential users of roaming services is also constantly growing, both in terms of size and heterogeneity. The differences in mobile phone penetration between countries are shrinking and even the oldest age group, which showed significantly lower levels of mobile phone usage in 2006, are quickly catching up with their younger counterparts, with 71% now having a mobile phone compared to 57% in 2006.
Significantly fewer Europeans report having travelled in the EU in this present
survey than in 2006. This is undoubtedly a consequence of the economic downturn. In
2010, 48% of mobile phone users say they have travelled within last 4-5 years and 28%
have travelled both prior to and since the Roaming Regulation.
The results do not show significant evolutions in the proportion of respondents using different types of services, with the exception of Internet-related services, which seem to be used more now than in 2006. European mobile phone users continue to favour voice calls (55%) and text message services (52%) while abroad with 10% making use of Internet related services. The increased usage of roaming internet-related services reflects the recent market uptake of mobile data services.
While overall the proportion of roaming service users has remained stable since 2006, a higher proportion of frequent travellers are now using their mobile phones while abroad, possibly because they have first-hand experience of the recent price decreases.
Furthermore, the respondents are using roaming services to a greater extent
than in 2006. Significant increases can be observed in the frequency of making
(32%) and receiving voice calls (31%) and in particular of sending text
messages (43%) since 2006. Young people in particular are significantly more likely
to use these roaming services now than in 2006.
However, an overwhelming 72% of mobile users continue to limit their mobile voice calls while abroad because they are concerned about the costs. It is also implied that some respondents substitute their voice calls by text messages and Internet-related services while abroad, i.e. they change their user pattern in terms of the type of services they use. Young respondents are particularly prone to cut down their voice calls while travelling. Among the 10% of mobile users who reported currently using data roaming services while abroad, the general tendency appears to be that the price of using data services is not regarded as fair.
The perceived excessive roaming costs still appear to discourage Europeans of using roaming services, even if a majority of mobile phone users agrees that these costs have decreased. Among frequent travellers, 61% are aware of the positive price developments that have occurred over the last four years.
Awareness of lower roaming prices is obviously strongly linked to first-hand experiences during the period of change: those who travel frequently and use any of the roaming services are significantly more likely to believe that costs have fallen than those who have not travelled both prior to and since the Regulation and those who avoid using their mobile phone while abroad. The oldest age group in particular tends to be less knowledgeable about recent developments.
SPECIAL EUROBAROMETER 356 - Roaming in 2010
Europe - Survey of 112 emergency services number shows much work remains to be done
[ec] The survey’s fieldwork was carried out between 3 and 7 January 2011. Over 40,500 randomly selected EU citizens, aged 15 years and above, were interviewed in the EU’s 27 Member States. Interviews were predominantly carried out via fixed-line telephones, with approximately 1,500 in each of the Member States.
More than 9 in 10 (96%) EU citizens thought that it was very useful to have a European emergency number available throughout the EU (83% totally agreed and 13% tended to agree).
Just over a third of EU citizens agreed that people in their country were adequately informed about the existence of the European emergency number 112
The current survey results showed that EU citizens remained relatively unfamiliar with the European emergency number 112: only about a quarter (26%) of respondents could spontaneously identify 112 as the number to call for emergency services from anywhere in the EU. Awareness of 112 as an EU-wide emergency number has slowly increased from 22% in 2008 to this current figure in 2011 (+4 percentage points).
The European Emergency Number 112 - Analytical report
More than 9 in 10 (96%) EU citizens thought that it was very useful to have a European emergency number available throughout the EU (83% totally agreed and 13% tended to agree).
Just over a third of EU citizens agreed that people in their country were adequately informed about the existence of the European emergency number 112
The current survey results showed that EU citizens remained relatively unfamiliar with the European emergency number 112: only about a quarter (26%) of respondents could spontaneously identify 112 as the number to call for emergency services from anywhere in the EU. Awareness of 112 as an EU-wide emergency number has slowly increased from 22% in 2008 to this current figure in 2011 (+4 percentage points).
The European Emergency Number 112 - Analytical report
Thailand - True-CAT pact advances restructuring of the industry, with more to follow
[bangkok post] The government is embarking on an overhaul of the troublesome mobile phone concession regime, with the recent pact between True Corp and CAT Telecom seen as a model for restructuring the industry.
Officials have also been in talks with SK Telecom of South Korea and NTT DoCoMo of Japan to carry Advanced Info Service's mobile business in the worst-case scenario of the top-ranked operator failing to pay 74 billion baht compensation demanded by TOT Plc for damages resulting from changes to past contracts, a government source said.
The source said the overhaul was aimed at resolving the chronic problems impeding industry development, notably the inability to offer 3G wireless broadband service at a time when most other countries offer it and many are now preparing to launch 4G.
The present problems are rooted in a series of amendments _ some of them dating back as far as 15 years _ made to concessions between major operators and the two state telecom enterprises, TOT and CAT Telecom.
The Council of State, the government's legal adviser, concluded in 2007 that many of the changes, such as contract extensions and revisions in revenue-sharing terms, breached the 1992 Public-Private Joint Venture Act.
The Act requires special scrutiny of agreements for ventures worth one billion baht or more, with cabinet approval in some cases.
An investigative committee looking into all of the amendments forwarded its recommendations to the Information and Communications Technology Ministry.
The ministry last week opened talks with the private operators and state telecoms in an attempt to arrive at compensation figures.
The ICT Ministry committee overseeing the talks has asked the operators to propose a compensation formula by Friday.
The final compensation payment would not necessarily be the same as that proposed by the investigative committee or claimed by the state telecoms, said the government source, who has been part of a team looking into industry reform for the past three months.
"Compensation could be settled between the state telecoms and operators," he said.
"The payments could be spread over 15 to 20 years to ease the financial burden on operators."
TOT wants AIS to pay it 74 billion baht, including 40 billion in losses from the reduction of prepaid revenue-sharing.
For CAT, it is estimated that amendments for second-ranked mobile phone operator DTAC cost the state enterprise more than 20 billion baht, True Move 6billion and Digital Phone Co 3 billion to 4 billion baht.
The source said the reform plan was intended to solve private companies' problems and also help TOT and CAT survive as viable businesses in the future. They presently depend heavily on concession revenue payments.
"For a way out, we are looking to demand that private operators compensate
[TOT and CAT] for losses from past concession amendments, to end the old concession system and shift to a new business model," he said.
The source said that if the state enterprises and private operators failed to negotiate payments, the issue would go to the cabinet.
Another option is to take the case to the Civil Court, which would decide whether to accept it or recommend arbitration.
The study team has outlined a plan to draft a new contract model based on a wholesale-resale agreement, under National Telecommunications Commission regulations.
The source acknowledged that True Move was seen as a test case because of the urgency of its situation.
Its concession is due to end in 2013, while AIS's concession will end in 2015 and DTAC's in 2018.
When True acquired the small Hutch mobile business, in which CAT was also a partner, an opportunity arose for True and CAT to draw up a new working arrangement, resulting in a 3G service wholesale-resale contract lasting 14 years.
The source said top executives of the three major mobile operators had acknowledged the government's intentions. If they agreed with the plan, they would have to return their frequency rights to CAT and TOT.
They would then enter rental contracts to use the state telecoms' equipment and networks under new business conditions.
True-CAT model is a wake-up call
Officials have also been in talks with SK Telecom of South Korea and NTT DoCoMo of Japan to carry Advanced Info Service's mobile business in the worst-case scenario of the top-ranked operator failing to pay 74 billion baht compensation demanded by TOT Plc for damages resulting from changes to past contracts, a government source said.
The source said the overhaul was aimed at resolving the chronic problems impeding industry development, notably the inability to offer 3G wireless broadband service at a time when most other countries offer it and many are now preparing to launch 4G.
The present problems are rooted in a series of amendments _ some of them dating back as far as 15 years _ made to concessions between major operators and the two state telecom enterprises, TOT and CAT Telecom.
The Council of State, the government's legal adviser, concluded in 2007 that many of the changes, such as contract extensions and revisions in revenue-sharing terms, breached the 1992 Public-Private Joint Venture Act.
The Act requires special scrutiny of agreements for ventures worth one billion baht or more, with cabinet approval in some cases.
An investigative committee looking into all of the amendments forwarded its recommendations to the Information and Communications Technology Ministry.
The ministry last week opened talks with the private operators and state telecoms in an attempt to arrive at compensation figures.
The ICT Ministry committee overseeing the talks has asked the operators to propose a compensation formula by Friday.
The final compensation payment would not necessarily be the same as that proposed by the investigative committee or claimed by the state telecoms, said the government source, who has been part of a team looking into industry reform for the past three months.
"Compensation could be settled between the state telecoms and operators," he said.
"The payments could be spread over 15 to 20 years to ease the financial burden on operators."
TOT wants AIS to pay it 74 billion baht, including 40 billion in losses from the reduction of prepaid revenue-sharing.
For CAT, it is estimated that amendments for second-ranked mobile phone operator DTAC cost the state enterprise more than 20 billion baht, True Move 6billion and Digital Phone Co 3 billion to 4 billion baht.
The source said the reform plan was intended to solve private companies' problems and also help TOT and CAT survive as viable businesses in the future. They presently depend heavily on concession revenue payments.
"For a way out, we are looking to demand that private operators compensate
[TOT and CAT] for losses from past concession amendments, to end the old concession system and shift to a new business model," he said.
The source said that if the state enterprises and private operators failed to negotiate payments, the issue would go to the cabinet.
Another option is to take the case to the Civil Court, which would decide whether to accept it or recommend arbitration.
The study team has outlined a plan to draft a new contract model based on a wholesale-resale agreement, under National Telecommunications Commission regulations.
The source acknowledged that True Move was seen as a test case because of the urgency of its situation.
Its concession is due to end in 2013, while AIS's concession will end in 2015 and DTAC's in 2018.
When True acquired the small Hutch mobile business, in which CAT was also a partner, an opportunity arose for True and CAT to draw up a new working arrangement, resulting in a 3G service wholesale-resale contract lasting 14 years.
The source said top executives of the three major mobile operators had acknowledged the government's intentions. If they agreed with the plan, they would have to return their frequency rights to CAT and TOT.
They would then enter rental contracts to use the state telecoms' equipment and networks under new business conditions.
True-CAT model is a wake-up call
Ghana - MPs have yet to register their own SIM cards - required by June 2011
[My Joy] Most Parliamentarians are yet to register their SIM cards almost one year after the National Communication Authority made it mandatory for all to do so by June this year.
Information available to Adom News says an exercise to that effect was started last week but was suspended owing to the state of the Nation Address on Thursday February 17 but will continue this week.
A highly placed source at the National Communication Authority (NCA) said telecom operators have reported between 75 per cent and 90 per cent registered SIM cards between June 2010 and now.
The source fell short of mentioning the specific numbers or percentages that each operator reported saying that the NCA was yet to verify the figures and come out with actual numbers of valid SIM cards registered by each operator.
The verification would involve cross checking records of individual SIM card owners against the ID type they used in registering the SIM card.
“We will go to the respective institutions and verify the records of those who used their passports, drivers’ licenses, National Health Insurance card and Voters ID to register their SIM cards” the source said.
The source noted that there was a possibility that some records may not be check with the ID of the SIM card owners and that would mean that SIM card would be considered unregistered, even though telecom network may have counted it as registered.
Last year, almost all the operators posted lower subscriber-base than they expected and they blamed it on customers’ lackadaisical attitude towards SIM card registration.
Meanwhile, all the telecom operators have been instructed by the NCA to keep the provisional figures under wraps pending the verification slated for next month, March 2011.
But some of the telecom operators said most of the SIM cards registered are mainly from the rural communities and northern part of the country, and that most residents of Greater-Accra, Central, Volta and Western regions are still not registered.
“We want to take advantage of the debate of the Presidential State of the Nation Address in Parliament to register the MPs, since there is usually a full house during these kinds of debates,” they said.
The CEO of Tigo Ghana, Carlos Caceres had told Adom News that he expected a mass rush for SIM card registrations from next month, particularly in the southern sector of the country.
Vodafone Ghana CEO, Kyle Whitehall had also expressed similar sentiments in a chat with journalists.
Whiles some the telecom operators say they are confident that by the June 31, 2011 deadline, they would have registered all their customers, some expressed doubts about meeting the deadline.
Meanwhile the NCA has not given any indication of plans to extend the deadline, which means anyone whose SIM card is not registered by June 31, 2011 would lose his mobile phone number and all information on it for good.
Network operators have therefore been using separate interactions with the media to urge their customers to get their SIM cards registered and avoid losing their phone numbers and vital information.
SIM Card Registration-MP’s yet To Do So
Information available to Adom News says an exercise to that effect was started last week but was suspended owing to the state of the Nation Address on Thursday February 17 but will continue this week.
A highly placed source at the National Communication Authority (NCA) said telecom operators have reported between 75 per cent and 90 per cent registered SIM cards between June 2010 and now.
The source fell short of mentioning the specific numbers or percentages that each operator reported saying that the NCA was yet to verify the figures and come out with actual numbers of valid SIM cards registered by each operator.
The verification would involve cross checking records of individual SIM card owners against the ID type they used in registering the SIM card.
“We will go to the respective institutions and verify the records of those who used their passports, drivers’ licenses, National Health Insurance card and Voters ID to register their SIM cards” the source said.
The source noted that there was a possibility that some records may not be check with the ID of the SIM card owners and that would mean that SIM card would be considered unregistered, even though telecom network may have counted it as registered.
Last year, almost all the operators posted lower subscriber-base than they expected and they blamed it on customers’ lackadaisical attitude towards SIM card registration.
Meanwhile, all the telecom operators have been instructed by the NCA to keep the provisional figures under wraps pending the verification slated for next month, March 2011.
But some of the telecom operators said most of the SIM cards registered are mainly from the rural communities and northern part of the country, and that most residents of Greater-Accra, Central, Volta and Western regions are still not registered.
“We want to take advantage of the debate of the Presidential State of the Nation Address in Parliament to register the MPs, since there is usually a full house during these kinds of debates,” they said.
The CEO of Tigo Ghana, Carlos Caceres had told Adom News that he expected a mass rush for SIM card registrations from next month, particularly in the southern sector of the country.
Vodafone Ghana CEO, Kyle Whitehall had also expressed similar sentiments in a chat with journalists.
Whiles some the telecom operators say they are confident that by the June 31, 2011 deadline, they would have registered all their customers, some expressed doubts about meeting the deadline.
Meanwhile the NCA has not given any indication of plans to extend the deadline, which means anyone whose SIM card is not registered by June 31, 2011 would lose his mobile phone number and all information on it for good.
Network operators have therefore been using separate interactions with the media to urge their customers to get their SIM cards registered and avoid losing their phone numbers and vital information.
SIM Card Registration-MP’s yet To Do So
Roaming - African Union has again raised the possibility of a single African SIM card as a way to cut roaming charges
[the citizen] The African Union (AU) has unveiled its plans for a single standardized SIM card for all African mobile phone operators. According to AU commissioner for infrastructure and energy, Mr Elham Ibrahim, a study on the introduction of a single African SIM card has been underway and is expected to be completed within a month.
The commission would then hold a validation workshop with the key industry players in Addis Ababa, Ethiopia, to agree on the technical details for the SIM card, which it hopes would reduce the cost of roaming phone services.
According to AU’s head of telecommunication division, Mr Moctar Yedaly, funds for the assessment of the technical requirements to be fulfilled before the launch of the SIM are estimated at $100,000.
He added that the plan includes an agreement on revenue-sharing and the validity of prepaid airtime if the users of the single SIM card migrate to other operators in the various African countries. The AU is looking at the networks operated by the South African multinational MTN Group, which has operations in over 16 African countries.
The AU is also working on the registration of the domain name dot Africa, which it hopes to register. Mr Yedaly noted that a taskforce has been established to work out the modalities of registering the dot Africa internet domain.
African Union plans for single standardized SIM card
The commission would then hold a validation workshop with the key industry players in Addis Ababa, Ethiopia, to agree on the technical details for the SIM card, which it hopes would reduce the cost of roaming phone services.
According to AU’s head of telecommunication division, Mr Moctar Yedaly, funds for the assessment of the technical requirements to be fulfilled before the launch of the SIM are estimated at $100,000.
He added that the plan includes an agreement on revenue-sharing and the validity of prepaid airtime if the users of the single SIM card migrate to other operators in the various African countries. The AU is looking at the networks operated by the South African multinational MTN Group, which has operations in over 16 African countries.
The AU is also working on the registration of the domain name dot Africa, which it hopes to register. Mr Yedaly noted that a taskforce has been established to work out the modalities of registering the dot Africa internet domain.
African Union plans for single standardized SIM card
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