Monday, March 14, 2011

Singapore - Regulator has taken three actions to contain problems with mobile data roaming charges

[iDA] With more consumers buying smartphones and using them overseas, some consumers may inadvertently incur high data roaming charges. Consumers will soon be able to manage their data roaming usage with more peace of mind with the introduction of three new consumer protection measures for data roaming. From 1 July 2011, mobile operators will have to obtain explicit consent from their subscribers before providing any roaming services (including data roaming services), which may currently be available by default to mobile subscribers. Mobile operators are also required to explicitly direct consumer to the prices, terms and conditions of the roaming services to ensure that consumers can make an informed choice on whether or not to subscribe for such services.

Secondly, consumers will soon be able to limit their data roaming usage in any single monthly billing cycle to no more than $100. IDA has directed mobile operators to offer a free data roaming service suspension option that caps data roaming usage at $100. Operators are expected to implement such a service by the first quarter of 2012.

Lastly, should consumers not wish to utilise any data roaming service while overseas, apart from switching off the data roaming feature in their smartphones themselves, they will soon be also able to deactivate data roaming service prior to leaving Singapore. Consumers who return to Singapore can reinstate their data services and continue using their data service locally as per normal. The service is expected to be implemented the first quarter of 2012.

While IDA has established these new requirements, IDA has left it to the operators to work out the specific implementation methods and to supplement them with additional consumer protection measures commercially if they wish to do so. Operators would also need the lead time to iron out the implementation details and service provisioning to meet IDA's requirements.

IDA's New Regulations for Mobile and Broadband Services Empower Consumers to Make Informed Choices

UK - Low take-up of FTTC in Wales frustrating to incumbent operator

[think broadband] BT Openreach have stated their frustration at the low take up of next-generation fibre-to-the-cabinet (FTTC) technology in Wales despite an intensive advertising campaign promoting BT Infinity to customers. Cardiff is one area that the company has highlighted as seeing poor adoption of the new faster services which it is rolling out through a £2.5bn investment program.

The problem is not limited to just Cardiff, with other enabled areas also seeing low take up. One exception is Whitchurch, one of the areas selected under BT's initial FTTC pilot program, which has seen 7% of premises connect up to the new service.

BT will be looking to ramp up local awareness through focused marketing in the Cardiff and will be joining forces with Cardiff Council to try and encourage adoption of the new services.

There are various reasons why people may not have opted to take the new services. Many ISP's still don't currently offer FTTC broadband, with BT Retail as the only large operator to do so, and BT may not necessarily be a customers first choice. Our fibre broadband guide offers a quick reference of providers who currently offer FTTC broadband. TalkTalk will be coming on board soon having announced their fibre broadband boost. Some people who are interested may be restricted by contracts tying them to their existing provider, or be put off by higher prices charged by some operators for the faster service.

Of course, there will be those that are just not interested. If current broadband speeds are sufficient to allow people to browse the web, catchup with friends via e-mail and access BBC iPlayer, what advantage will they get by upgrading to the faster products.

Low take-up of FTTC broadband services frustrating BT

Tuesday, March 08, 2011

Nigeria - Registraton of SIM cards is now obligatory, others will be disconnected

[vanguard] The Executive Vice Chairman of the Nigerian Communications Commission, NCC, Dr. Eugene Juwah, weekend, said that with effect from yesterday, no new SIM card would work until it was fully registered.

Juwah who was speaking with Vanguard Editors during a courtesy visit to the corporate headquarters of the newspapers, also disclosed that the National Security Adviser quelled the raging debacle between his commission and the operators over who should register the new and old subscribers in the country.

Juwah said: "All the decisions taken on SIM card registration were taken by all the interested parties. The forum included all the telecommunications service providers, security services, the police, SSS, NSA, and all other prospective service providers.

"Along the line, a directive was issued to the service providers to start registering the new subscribers only. They went and started registering the old subscribers also. That is actually, where the controversy started because by the agreement, they were to register new subscribers from May 1, 2010.

"This controversy later became very serious. The national security adviser summoned us and everybody made their case. The operators' case was actually that they had spent some money doing the registration, for which they were worried that all their work would go down in vain, if the exercise was cancelled.

Checking text messages.

Our own case was that the initial agreement was that they register only the new SIMs and should not have delved into registering old subscribers."

He noted, however, that after all deliberations, it was unanimously agreed that NCC, alongside the service providers, would do the SIM card registration together.

Juwah added: "With the final passage of our 2011 budget in December, we really have authority to award contract on the SIM card registration to service providers and that, we have concluded.

The project of implementation has just started. By the end of this month, they will start rolling out to the streets.

Although the government has given us the end of June to complete this exercise but we could not start it together with SIM card registration, because the period of June started from January. We may conclude the substantial aspect of the registration by June, but may be it will be extended a little bit further."

Direction to operators

Juwah said the registration will cover every SIM card and that NCC has issued a direction to all operators from February 14, not to sell activated new SIM cards.

He added: "As from February 14 this year, all the SIM cards coming into the market will not be active until they are registered. New SIM cards will be registered by the operators, while the old SIM cards will be registered by both the operators and NCC.

"NCC has appointed seven contractors for the registration. One for each geo-political zone of the nation plus Abuja. So, all SIM cards will be registered by the time we conclude the registration. All SIM cards that remain unregistered will be stopped from functioning until it is registered."

NCC Descends On Unregistered SIM Cards Users

Nigeria - Regulator has pushed for registration of SIM cards, but this is proving not to have been effective

[daily independent] Nigerian Communications Commission (NCC) last week appointed seven consultant partners to register all the 69 million or more SIM cards of mobile phone subscribers nationwide. The consultants, including Chams, SW Global and PNN, are certainly aware of the high risk contract they signed in Abuja. But questions persist about whether or not their ad hoc staff, who will do the actual legwork, would be trustworthy and diligent about it.

NCC has a towering reputation as industry regulator. But it has descended into the implementors' arena alongside the telephone operators (telcos). Hardly can one predict the consequences. Soon, NCC, the consultants and their staff will have to answer police investigators' questions should any crime be committed with a fakely-registered SIM card. That is, even if a crooked staff of the telcos registered the number fraudulently!

NCC's Executive Vice Chairman Eugene Juwah explained at takeoff that NCC wants to fast-track the registration initiated by the telcos around April 1, last year. So far, they registered 11 million active subscribers out of 86,310,704. It wants to register all within six months.

Certainly, it is a faux pas! NCC has its Head Office in Abuja, plus regional offices in Kano, Enugu, Lagos, Ibadan and Port Harcourt. They cannot register the SIM cards. Hence engagement of consultants. It would either import new laptops and webcams attached or hire the DDC laptops from Prof. Attahiru Jega's INEC for the consultants' staff.

On paper, it sounds great. But wait! One day, police investigators trailing kidnappers demanding ransom in Abia State to SIM cards registered in Ogun State, find that it belonged to a crippled, primary school pupil who died six months previously! Of course, the criminals, always better organised than security agencies, could bribe, cajole or browbeat an ad hoc staff to register the SIM with the unsuspecting pupil's biometric data for the price of sweets! Then the blame game starts between NCC and its consultants versus the telcos over whodunnit! And of course the relations of the dead pupil would sue NCC for stealing his biometric data sold to the criminals!

As at November, last year, the telcos had 86.3m active subscribers in a total of 107.6m lines. Eleven million were registered; so, about 75.3m more subscribers are yet to be registered. NCC believes it has a magic formula. I wish it the best of luck.

The fact is, the telcos are not lacking in their duty. After all, it took me less than two minutes to register with Etisalat in Lagos. And some GSM companies are doing wayside registration with laptops under umbrellas in Lagos. But the registration of my second SIM, Airtel, is pending. Both lines are perfect. But I have to register two SIMs at different centres. Yet one of them, Etisalat, serves me perfectly.

My satisfaction with Etisalat comes from one-touch dialling and call completion, no drop call, accurate charges for calls on either Easy Starter or EasyLife tariff, smooth Internet access by GPRS or EasyNet bundle. Best of all, Etisalat alerts me if a Stone Age security zombi - fake or genuine - connects an illegal tapping device to my line.

Contrarily, other networks' imps connected the zombis' equipment to my phone, interrupted calls, called my friends to tell them rubbish, or worst of all, wrecked my phone when they wore their primitive, nuisance zombis' coats.

Meanwhile, some subscribers own up to four phones, a habit from the days when networks were too bad for a call. So, multiple phones were a necessity, hardly status symbols.

So, the 69m subscribers NCC is set to register may be as few as 60 percent of that number. What is lacking about the programme is adequate publicity. And subscribers' reluctance to make time for it. NCC's intervention has one advantage. The ad hoc staff will visit and register big men in their houses to shunt the reluctance. Houseboys cannot register SIMs for their Oga.

Mind you, my reluctance was not out of spite. This is the era of identity theft worldwide. I have no inclination to leave my inalterable biometric identity on the private telcos' databank.

And that was the first question I asked Etisalat officials at its Experience Centre: is my biometric data safe in their database? They explained that NCC currently warehouses the data for National Identity Management Commission. Etisalat had no data-base for the bio-data. Two minutes later, the registration was over - seamless, smooth, hitch-free.

However, the reluctant subscribers are few compared to the vast majority who are unaware of the exercise. Unfortunately, kidnappers and other criminals who make phone threat calls are not the big Ogas. More probably, they are among the riffraff majority, which makes it indispensable to register them at all cost. But as tax collectors say, it always costs more to reach those criminal few evaders than the majority voluntary payers.

So, NCC should rather provide publicity support for the telcos, co-ordinate them to rotate on zonal basis and hold them responsible if anyone registers fake lines. Each consultant supervises the zonal registration by the telcos at their own expense. One month of intensive registration per zone adds up neatly to six months to cover the entire country. NCC should provide saturation media coverage, especially on local radio stations.

Someone suggested the most effective way to get everyone to register is to set the deadline for telcos to register the willing. At its expiry, all unregistered SIMs, and new ones, should be rendered Receive-Only lines.

The subscribers want to make calls, the telcos want to make money. The telcos would use their disembodied recordings to remind Receive-Only subscribers to register their SIMs. Moreover, with all new SIMs on Receive-Only, it makes no difference if SIM cards were sold in supermarkets, at airport arrivals, from telcos or on the pavements - with no restrictions.

In fact, to make it easy on multiple SIM users, NCC must coordinate such that one registration will be valid for all numbers on other networks, too. After all, if INEC's registration is accurate, every Nigerian above 18 years has his biometric data on NIMC database. So, only the young ones and foreigners really need to register afresh. Multiple registrations are redundant in NIMC database.

This way, NCC would remain the reputable regulator atop its Olympus mount. As the sages say, if a reputable man descends to fight riffraff in the sewerage, he should not complain if disreputable riffraff sully him with muddy water. Then, if the police ask how it happened that the dead, crippled primary school pupil was demanding kidnap ransom, NCC knows which telcom to hold responsible without prevarications, lies and half-truths!

Communications Commission's Faux Pas With SIM Registration

New Zealand - Regulator has begun a review of wholesale unbundled bitstream pricing

[comcom] The Commerce Commission has launched a review of Unbundled Bitstream (UBA) broadband pricing. This review will consider UBA pricing components that are not included in a review of UBA data transmission costs currently being undertaken by the Commission.

“The Commission is of the view that other components that affect the UBA price should be reviewed as well. This decision is a result of submissions we received throughout the current review’s consultation phases as well as the Ministry of Economic Development’s release of the Supplementary Order Paper to the Telecommunications Amendment Bill on 16 February 2011. This Bill, if passed, will lock in the UBA price for three years,” said Dr Ross Patterson, Telecommunications Commissioner.

Under section 30R of the Telecommunications Act 2001, the Commission may undertake a review of all or any of the terms specified in a standard terms determination, in this case the UBA standard terms determination.

In order to consider the wider issues raised by interested parties, the Commission has launched the new section 30R review to be conducted concurrently with the data transmission cost review. The new review will cover (but is not limited to):

* how overage is treated;
* the ISP charge; and
* the avoided retail costs discount.

“The Commission is conscious that a decision needs to be made in a timely manner given the importance of the UBA price to the companies involved but is equally conscious of the importance of fully addressing all issues raised in submissions,” said Dr Patterson.

Commerce Commission to take wider look at UBA pricing

Europe - EC has approved Ericsson's acquisition of the multi-switching business of Nortel

[ec] The European Commission has approved under the EU Merger Regulation the proposed acquisition by Swedish company Ericsson over the Multi-Service Switching Business of Canadian Nortel Network Corporation. After examining the operation, the Commission concluded that the transaction would not significantly impede effective competition in the European Economic Area (EEA) or any substantial part of it.

Telefonaktiebolaget LM Ericsson ("Ericsson") provides telecommunication equipment and related services to mobile and fixed network operators. It comprises four main business units: Networks, Global Services, Multimedia, and CDMA and GSM Business.

The Nortel Multi-Service Switching (MSS) Business is globally active in the sale of MSS switches to service providers delivering in real-time a variety of data, voice, and video services. The MSS Business also provides certain associated services such as maintenance and support services.

Both Ericsson and the Nortel MSS Business are MSS suppliers. Switches are devices used in the transmission of data. Ericsson is also active in the provision of complete networking solutions to telecommunication operators mostly in the GSM, CDMA, UMTS/W-CDMA (an interface standard used in 3G) and Voice over Internet Protocol (VoIP) technologies, where MSS are used as an input.

The Commission's market investigation identified no competition concerns in relation to the parties' overlapping activities in the market for MSS switches. MSS switches are only sold as replacement, add-ons and extensions to existing customers as there are newer switching technologies.

Commission approves the acquisition of Nortel's Multi-Service Switching business by Ericsson

Australia - Regulator has revised the list of initial points of interconnection for the NBN

[accc] The Australian Competition and Consumer Commission today issued a revised list of initial points of interconnect (POI) to the National Broadband Network (NBN).

"The revised list represents the agreed number and location of initial POI to the NBN. It follows a public confirmation process into the 120 initial POI that was developed by NBN Co in consultation with the ACCC and published in December last year," ACCC chairman Graeme Samuel said.

Submissions to the public confirmation process suggested the relocation, addition and consolidation of a number of POIs. The ACCC and NBN Co have considered the submissions in light of the competition criteria in the ACCC advice to government and the NBN Co planning criteria released in December.

After considering submissions, a small number of POI locations have been added and amended. The revised list of 121 initial POIs and submissions to the public confirmation process are available on the ACCC website.

It is also important to review the location of POI to the NBN over time. The ACCC expects the process for any subsequent relocation of POIs will be incorporated into NBN Co's special access undertaking.

The ACCC will maintain an updated list of POIs to the NBN.

The availability of competing fibre infrastructure was a key element of the ACCC's competition criteria. The ACCC has therefore also released today information about the number of competing fibre infrastructure owners across the country.

ACCC announces outcome of NBN points of interconnect confirmation process

Antitrust - Paper analysing search engines as essential facilities

[law profs] What is wrong with calls for search neutrality, especially those rooted in the notion of Internet search (or, more accurately, Google, the policy scolds’ bĂȘte noir of the day) as an “essential facility,” and necessitating government-mandated access? As others have noted, the basic concept of neutrality in search is, at root, farcical. The idea that a search engine, which offers its users edited access to the most relevant websites based on the search engine’s assessment of the user’s intent, should do so “neutrally” implies that the search engine’s efforts to ensure relevance should be cabined by an almost-limitless range of ancillary concerns. Nevertheless, proponents of this view have begun to adduce increasingly detail-laden and complex arguments in favor of their positions, and the European Commission has even opened a formal investigation into Google’s practices, based largely on various claims that it has systematically denied access to its top search results (in some cases paid results, in others organic results) by competing services, especially vertical search engines. To my knowledge, no one has yet claimed that Google should offer up links to competing general search engines as a remedy for its perceived market foreclosure, but Microsoft’s experience with the “Browser Choice Screen” it has now agreed to offer as a consequence of the European Commission’s successful competition case against the company is not encouraging. These more superficially sophisticated claims are rooted in the notion of Internet search as an “essential facility” – a bottleneck limiting effective competition. These claims, as well as the more fundamental harm-to-competitor claims, are difficult to sustain on any economically-reasonable grounds. To understand this requires some basic understanding of the economics of essential facilities, of Internet search, and of the relevant product markets in which Internet search operates.

The Problem of Search Engines as Essential Facilities: An Economic & Legal Assessment

Africa - World Bank has set out its new strategy: competitiveness, employment, vulnerability, resilience, governance and public sector capacity

[world bank] With Africa facing an unprecedented opportunity to transform itself and improve the lives of its people, the World Bank is responding with a new, ambitious strategy which could help African economies take off.

Key Areas

Competitiveness and employment

The plan will assist countries to diversify their economies and generate jobs, especially for the 7-10 million young people entering the labor force each year. It will help to close the gap between infrastructure needs and investments -- currently about $48 billion annually -- and support efforts to make it easier for business to operate. In addition, the plan will focus on building the skills of workers.

Vulnerability and resilience

Africa's poor are directly affected by shocks -- economic, health-related, natural disasters and conflict -- which keep them in poverty. By focusing on better health care, dealing preemptively with the effects of climate change through improved irrigation and water management, and strengthening public agencies to share resources more fairly and build consensus, the plan seeks to reduce the number of shocks and limit the damage from those that do occur.

Governance and public sector capacity

Critical services, in education, health and basic infrastructure, are too often either not delivered or delivered badly because of weak management of public funds. The Bank's program of support aims to give citizens better information on what they should expect from their governments, as well as the capacity to report on instances when services are not delivered properly. The Bank will also work directly with governments to help them improve their systems and capacity to deliver basic services and manage accounts.

Africa's Future and the World Bank's Support to it
see also Africa's Future and the World Bank's Support to it

UK - Lack of next-generation broadband is a threat to the development of tourism in Scotland

[the herald] Lack of next-generation broadband capacity and accessibility in Scotland presents the most significant threat to the development of tourism, the head of the industry group has said.

Speaking at the end of last week’s Scottish Tourism Week, Iain Herbert, chief executive of the Scottish Tourism Forum, said inadequacies of internet speed and mobile connectivity had emerged as the major theme.

“There was a lot of conversation about broadband and the fact that Scotland is lagging behind,” he said. “It’s a real concern that we are slipping down the international league table.”

Herbert added his voice to widespread industry approval of VisitScotland.com’s new “open platform” website, plans for which have ended a long-running source of tension between the national tourism agency and the industry grass roots.

The revamped site, to be rolled out over the next 18 months, has been devised by Robbie Parish, VS’s head of digital and media. VS is now seeking a new technology partner to operate the website, and a tender document for a four-year, £800,000-£900,000 contract was launched in the Official Journal of the European Community (OJEU) last month.

VS chief executive Malcolm Roughead said that the site, developed in conjunction with a 17-person industry expert group, is geared towards connecting Scotland’s “fragmented” tourism agency and engage with the one million internet users worldwide who use the existing site every month. It will give Scotland’s 26,000 tourism businesses direct and ready access to their own data, and allow operators to gather more data from businesses and make it more accessible to consumers.

“It has been a long journey and a learning journey, not just for this organisation,” Roughead said. “The whole world has been surprised by the exponential growth in [IT and mobile web technology] and you have to change the way you look at the opportunities.” Intended improvements include making content accessible via mobile apps, optimising content for searches, and boosting the “conversion” of browsers into buyers.

B&B operator Alan Keith, formerly of the Association of Dumfries & Galloway Accommodation Providers, said: “Robbie Parish’s proposals [for the site] are entirely in line with what the industry has been asking for. VisitScotland appears to have genuinely recognised what’s needed.”

Tourism boss makes broadband appeal as VisitScotland site welcomed

UK - Scottish Executive has published "Scotland's digital future" its national broadband plan

[isp review] The Scottish government has released its new national digital strategy - Scotland's Digital Future: A Strategy for Scotland (PDF), which sets out in more detail how they intend to achieve their digital "ambitions" and improve the country's broadband internet access.

As you might expect their ambitions are broadly in line with the UK and Europe's wider strategies. To be specific, their ambition is to make next generation broadband available to everybody by 2020. They hope to make "significant progress" on this by 2015. However the report does not define what next generation broadband actually is and instead points the UK's wider strategy (Britain's Superfast Broadband Future).

Furthermore Scotland wants the country's rate of broadband uptake to be at or above the UK average by 2013, and should be highest among the UK nations by 2015. At present 61% of the population have taken broadband, which is available to 99%. By contrast the UK average is 71%.

Scotland UK Reveals National Digital Future and Broadband Internet Access Strategy

UK - PwC reports variability of technologies in delivering broadband

[telappliant] The variability of different broadband technologies is highlighted by the findings of a recent Ofcom investigation, says PricewaterhouseCoopers (PwC).

In a study of the broadband market, Ofcom found the average connection has an access rate of 6.2 Mbps, compared with an industry average of 13.8 Mbps cited in advertisements.

However, PwC's telecoms strategy team director Brian Potterill suggests that the specific technology used in supplying the connection could have an impact on whether the top speed of the line can be achieved in reality.

"Cable and fibre are more likely to do what they say [in the advertisement]," he observes.

"This should not be a surprise, given the nature of the technologies."

Rather, he argues that the report helps to detail the last-mile limitations of ADSL when premises are located a long way from their nearest branch exchange.

As consumers upgrade their connections to higher line speeds - perhaps including fibre or cable links in place of ADSL - he notes that the actual data rates achieved are seen to increase accordingly.

Ofcom figures 'highlight broadband variability'

Monday, March 07, 2011

USA - Netflix with its 20 million subscribers is using up to 20% of all bandwidth

[washington post] It has 20 million subscribers, way up from 12 million just a year ago. Its stock has tripled in that time. During periods of peak Internet use, a full fifth of all American bandwidth consumption is people watching movies on Netflix.com.

But the more that consumers embrace the movies-at-home ethos of Netflix, the more uncomfortable major players in the entertainment industry have become. Now Netflix, a secretive company known more for the laid-back attitude of its founder than for sharp elbows, has emerged at the center of a titanic clash over the future of television.

Because if Netflix can bring movies straight into your living room through the Internet, it can bring a full slate of TV shows, too. Pretty soon, who needs cable?

On the other hand, if cable companies can bring you movies and TV directly over high-speed Internet lines, who needs Netflix?

Multibillion-dollar corporations are fretting over those questions and fighting to influence the outcome.

"No one can deny that Netflix has become a huge player in the industry," said Deana Myers, a research analyst at the investment firm SNL Kagan. "But there are big questions surrounding the company, and they have big obstacles ahead."

Netflix has been disruptive since its inception in 1997. That year, Reed Hastings, a former Peace Corps volunteer and MIT engineering graduate, received a $40 video late fee and thought, "There has to be a better way."

So he built a Web site with partner Marc Randolph for Internet users to sign up for seven-day DVD rentals. Two years later, the mail-order service copied the health-club business model and offered unlimited DVD rentals for monthly memberships.

People liked it. No more late fees. No lines. You didn't have to go any farther than the mailbox to get your movies.

For Blockbuster, not so good. Netflix almost single-handedly wiped out the retail video rental business. Blockbuster went bankrupt last fall.

But even faster than the business model could go from storefront rentals to mail-order rentals, it changed again. The spread of broadband Internet service led to the rise of online movie-watching. And this is where it gets messy.

Just a middleman

Netflix has shifted more of its business to streaming movies straight to your home and mobile gadgets. A lot of other powerful corporate interests, though, are converging on this spot - a fundamental change in the way people consume entertainment.

If you think it through to its logical conclusion, you wind up with TV and Internet merging. Much of the telecom industry thinks that in a few years, people will watch TV and movies and surf the Web all with the same gear.

So who brings you that service? It could be cable companies. Comcast just bought NBC Universal, which makes it a one-stop shop for cable TV, Internet service and movies.

Or it could be phone companies. Verizon has a huge mobile Internet operation, plus fiberoptic cables into more and more homes.

Or it could be Netflix, which has the advantage of its relationship with an enormous subscriber base and a total stock-market value - known as market cap - of $11 billion.

"There is every reason to believe that between their market cap and public access to funds, Netflix is a buyer of content with big dollars," John Calkins, executive vice president of Sony Pictures Home Entertainment, said in a phone interview.

Some in the industry think that is ridiculous. Time Warner Cable's chief, Glenn Britt, said in an interview that Netflix is just a middleman - that it will soon go the way of Blockbuster when people realize they can get all they want directly from the big telecoms.

Others in the industry fear Netflix, worrying that it will dominate the marketplace and make content less valuable by imposing a low-cost Internet business model (how's the music business doing these days?). Investors in cable companies fear that TV subscribers will flee, leaving them with Internet access businesses that simply manage traffic created by Netflix customers.

"There are many incentives to create hurdles for online video firms like Netflix," said Parul Desai, policy counsel for Consumers Union, parent of Consumer Reports magazine. "They are going up against powerful media and Internet service providers who are trying to come up with their own Internet video strategies and could limit access to content and access to their consumers."

So far, Netflix is last on Hollywood's schedule. Movies first hit theaters and then DVD services such as Redbox. Last to receive "Inception" and other blockbusters are on-demand cable services and Netflix.

That's partly because Netflix doesn't pay as much, and partly because the big studios don't want to undercut their DVD and cable licensing deals.

"What Netflix and other broadband distributors mean for us is another avenue of distribution for our content and brand," Philippe Dauman, president of Viacom, said in a phone interview.

He said that he had viewed Netflix with skepticism until last year, when it began offering more money for licenses to stream Viacom programming. But he also wants to proceed slowly with partnerships online. Delays and access to only certain, mostly older, content are key. Want to watch the previous four seasons of "Friday Night Lights"? It's easy on Netflix, but you'll have to watch the fifth and final season through NBC. The Super Bowl and Academy Awards won't make it to Netflix, Hulu or YouTube for a long time.

That dynamic doesn't look to change anytime soon, Barclays analyst James Ratcliffe said. About 90 percent of TV viewers pay about $70 a month for cable or satellite TV. The networks that create shows get about $30 a month from those subscriptions.

Many of the telecoms have also mounted a campaign in Washington to establish regulatory roadblocks to a Netflix takeover of the American living room. They've helped shape a federal policy on Internet billing that could make it more costly for consumers to watch streaming videos.

"There is no such thing as free TV or a free lunch," said Kyle McSlarrow, president of the National Cable and Telecommunications Association, a cable trade group. "It's expensive to run a broadband network, and I wanted to make sure my companies were able to experiment with new business models."

On the defense

In January, Netflix responded by hiring its first Washington lobbyist, Michael Drobac. He has told lawmakers and Federal Communications Commission officials that allowing Internet service providers to charge based on how much bandwidth people use is unfair and poses risks to online video services.

And Netflix is continuing to expand aggressively, offering service on gaming consoles, smartphones and tablets. It is also working to snare more top-rated video content. In the past year, it bought rights from MGM, Paramount, Sony Pictures, Viacom and CBS.

Next year, the company is expected to renegotiate a contract with Starz, a major distributor with extensive movie rights, in a test of how far the company is willing to go to meet Hollywood's pricing demands.

Netflix is also having to deal with unconventional new competitors. Last month, Amazon announced its own streaming video service. Since then, Netflix's stock has pulled back from a high of $247.55 to $203.37 on Friday.

Back at Netflix headquarters in Los Gatos, Calif., the last Silicon Valley outpost before the Santa Cruz mountains, Reed Hastings told shareholders in a January letter that he wasn't worried about finding a place in the Hollywood firmament.

Basically, he wrote, there is enough business to go around. And alluding to the rise of the Fox network 20 years ago, Hastings said that people always fear new competition.

"Some consternation about Netflix success is natural," he said.

As telecom industry evolves, success of Netflix is its biggest threat

Sweden - 800 MHz auction for SKR 2 billion for the period to 2035

[the local] Sweden has completed the auction of its 800 MHz bandwidth, paving the way for three telecom firms to expand their mobile broadband services.

Following five days of bidding, the Swedish Post and Telecom Agency (Post- och telestyrelsen – PTS) announced on Friday it has awarded licences to HI3G Access, Net4Mobility, and TeliaSonera.

The auction of the licences, which are valid until 2035, generated 2 billion kronor ($314 million) in revenue.

The auctioning of the spectrum will allow the winning bidders to extend network coverage at a lower cost data-heavy devices such as smartphones and table computers with 4G capabilities.

"Now the license holders can start using the 800 MHz band for, for example, mobile telephony and wireless broadband, in order to meet the consumer demand for services," PTS head Göran Marby said in a statement.

TeliaSonera paid 854 million kronor for their blocks, while Tele 2 and Telenor, which together own network company Net4Mobility, spent a total of 769 million. HI3G Access, part of mobile provider Tre (3), paid 431 million kronor for its licence.

"We're very satisfied with the result of the 800-auction," said Peder Ramel, head of 3 Scandinavia, in a statement.

"Now we can continue to expand our award-winning mobile broadband network with higher speeds and better coverage."

TeliaSonera, meanwhile, said winning the licence was an important part of their efforts to bring 4G, the next generation of mobile communications standard, to more of Sweden.

“Our investment in the 800 MHz frequency band is the basis for a continued cost efficient 4G-roll out as well as providing a high quality customer experience," said HĂ„kan Dahlström, president of TeliaSonera Mobility Services, in a statement.

In December 2009, TeliaSonera became the first operator in the world to launch 4G networks in Stockholm and Oslo.

Currently, the company's 4G network covers 28 cities and villages in Sweden, but by the end of 2011, TeliaSonera expects its 4G network to cover a total of 237 towns.

PTS's Marby emphasised the importance of the auction for helping bring broadband to homes in Sweden currently lacking the service.

“It is also gratifying that 300 million kronor during the next few years will be used to cover precisely those households and companies that lack coverage today. This is a part of getting broadband coverage in the whole country,” he said.

Com Hem and Netett Sverige also participated in the auction but failed to win any of the licences.

Sweden completes new spectrum auction

India - GSM operators will give up excess spectrum in 2014

[economic times] All leading GSM operators will have to give up 'excess' airwaves they have when their mobile permits come up for renewal beginning 2014. This implies companies such as Bharti Airtel, Vodafone Essar and Idea Cellular, among others, which currently have up to 10 MHz or units of 2G airwaves in many regions, will be given only 6.2 units of radio frequencies when they renew their permits, according to a telecom department internal note reviewed by ET. Besides, telecom companies will also have to pay market rates for this 6.2 MHz of airwaves in every region when they renew their licences.

This has already been communicated to all mobile phone companies. "On renewal, spectrum is to be assigned maximum up to the prescribed limit. Value of spectrum to be paid separately," said a telecom department's letter that was sent to all service providers last week. Communications minister Kapil Sibal would be engaging the industry in a full-fledged discussion beginning this week.

At present, telcos hold separate permits for each of the 22 circles in the country and these are valid for a period of 20 years. The government gave away mobile permits from mid-90s. About 11 mobile phone companies will have to renew their permits between 2014 and 2021.

These developments come even as GSM operators maintain they don't hold any 'excess' airwaves. India's telecom sector has been mired in a controversy regarding the pricing of 'excess' second generation spectrum, used for basic mobile services since 2008. These companies - notably Bharti Airtel, Vodafone Essar, Idea Cellular and BSNL - claim that mobile permits entitle them to 15 units of 2G airwaves in every region, and add that there is no capping of airwaves at the 6.2 MHz limit.

The government is yet to decide on methodology to calculate the market value of spectrum when mobile permits are to be renewed. But, sector regulator Trai had recently prescribed that every MHz of 2G airwaves up to 6.2 MHz limit be priced at 1,769.75 crore. If the government accepts Trai's proposal, then a company such as Bharti Airtel will have to shell out a total of 10,972.45 crore for renewing its mobile permits from 2014-15 onwards.

A top executive with a GSM operator said that department's methodology and payment structure for licence renewal were only at the discussion stage, while adding that the proposal sent to service providers was nowhere close to being the final policy.

While mobile operators are set to protest any policy changes that will force them to couch up huge amounts for renewal of their permits, the regulator's latest proposals, if accepted, will be far more economical for the industry, when compared to its earlier recommendations on this issue. This is because, in May 2010, Trai had suggested telcos pay market rates for 2G airwaves during licence renewal, and added that this be based on the 3G spectrum price in last year's auction along with an additional 3% compounded interest for every year from then until the date of renewal.

Under that methodology, RCOM would have had to shell out the maximum at 20,729 crore, for GSM and CDMA renewal, followed by Bharti Airtel ( 20,689 crore) from 2014 to 2021. Vodafone would have to pay 18,087 crore, Tata Teleservices 12,850 crore (for GSM and CDMA) and MTNL 12,825 crore.

For India's beleaguered telecom sector, which shelled out more than 1,05,000 crore last year for 3G and broadband airwaves, renewal of mobile permits is just one of the many costs confronting the industry. The 14-players ultra competitive mobile market that is fighting stagnant revenues and plunging profits over the last 18 months due to the savage price war, may also have to pay for all additional 2G allocations through an auction process.

Additionally, the industry will also have to shell out 17,513 crore if government accepts Trai's recent recommendation that mobile phone companies be charged a one-time pan-India fee of 4,572 core for every unit of airwaves they hold beyond the contracted limit (6.2 MHz).

GSM operators to surrender excess spectrum during renewal in 2014

India - Mobile subscriber number greatly changed by measuring "active" subscribers

[economic times] Videocon lost more than 1 million subscribers, while Bharti Airtel, Reliance Communications and Vodafone Essar added 3 million subscribers each in January this year, the Indian telecom regulator said on Friday.

More than 71% of mobile subscribers in India are active users, data revealed by Telecom Regulatory Authority of India, or Trai, in January. Around 548.66 million people were using mobile phones of the total subscriber base of 771 million mobile subscribers.

Bharti Airtel had the highest ratio of active subscribers compared to its total subscriber base at 92.63%, followed by Idea Cellular with 90.34% but Etisalat showed the lowest ratio of 33.55%.

Bharti Airtel also continued to lead the industry, grabbing more than one-fifth of the market share. RCOM and Vodafone Essar were the second and third largest telcos as of January-end. BSNL was the only public telco to have a market share of more than 11.6%.

Jammu & Kashmir has the highest proportion of active subscribers at 81.26% followed by Assam with more than 81% and Maharashtra at 77.58%. In contrast, the financial capital Mumbai has the lowest proportion of active mobile users with nearly 60%.

71% mobile users active in January

India - Supreme Court upheld TDSAT against BSNL on domestic and international roaming registration fees

[times of india] The Supreme Court said that state-owned BSNL is not entitled to charge private operators for providing signaling network for roaming services just on the basis of registration by their subscribers, even though they were not availing the facility.

BSNL provides connection to private operators who offer roaming services to their subscribers and charge monthly registration fees at the rate of Rs 25 per user for domestic roaming and Rs 50 for international roaming.

There are several subscribers who register for the roaming service but may not avail the facility unless they move out from their home network.

A bench headed by Chief Justice S H Kapadia dismissed the BSNL plea that it was entitled to charge Rs 25 and Rs 50 for national and international roaming charged from the companies whether the registered subscriber avail the service or not.

The court found no merit in the BSNL appeal, which was filed to challenge the TDSAT order.

The Telecom Disputes Settlement and Appellate Tribunal (TDSAT) on September, 1, 2010 had said that the BSNL was entitled to take interconnect charges for the roaming facilities availed by the subscribers of the private telecom operators using its network.

The tribunal in its order had said that only on the basis that the subscribers were registered for the roaming facilities with their servicer providers did not enable the PSU to charge roaming facilities from the operators.

Against this order, the PSU had moved the apex court, saying that the clause 6.6 of the interconnect agreement with the cellular operators doesn't stipulate that the interconnect charges for roaming by the subscriber of the private operators would be payable to BSNL only on the actual use of its network for such facilities.

The BSNL submitted that the actual user of roaming facility by the subscriber was not at all any condition in relation to the entitlement of BSNL to recover signaling charges from the private operators for using its network.

The PSU contended that immediately upon registration of the subscriber for roaming facility by the private service operators, the BSNL becomes entitled for payment of roaming facilities.

Supreme Court turns down BSNL plea on roaming services charges

Friday, March 04, 2011

Thailand - Govt is to sell AIS concessions to foreign operators if compensation claims fail

[bangkok post] The Information and Communications Technology Ministry is pushing ahead with plans to sell the mobile concessions of Advanced Info Service to a group of foreign telecom giants if compensation negotiations fail.

"We are in preliminary talks with eight international telecom firms and they all expressed interest in taking over the mobile operations of the country's largest mobile operator," said ICT Minister Juti Krairiksh yesterday.

The eight are Telecom Italia of Italy, China Mobile, NTT DoCoMo of Japan, SK Telecom of South Korea, Axiata of Malaysia, and three US operators.

Mr Juti said he had held confidential talks with top executives of the eight firms along with executives and board members of TOT Plc at the Mobile World Congress in Spain last month.

The discussion covered past concession amendments of mobile operators, including AIS, and the consequences following the asset seizure case against ousted prime minister Thaksin Shinawatra on Feb 26 last year.

Mr Juti acknowledged that the prospective foreign investors expressed their interest in a partnership with AIS after he told them "the fate of the AIS concession is now hanging in the balance".

He said SK Telecom had already confirmed its interest, while NTT has been given two weeks to submit its proposal.

Analysts and industry veterans, however, warned that the ministry's move could harm the Thai telecom industry and shake foreign investors' confidence.

The TOT board on Monday decided to solve its dispute with AIS amicably by setting up a state panel to resolve telecom concession amendments in its efforts to demand 74 billion baht in compensation from the largest mobile operator.

The TOT had earlier intended to file a claimant lawsuit against AIS for violating the telecom concession.

Another ICT Ministry committee working to resolve telecom concession amendments on Monday also failed to conclude the compensation to be demanded from the operators. The ministry asked the cabinet for another week to seek more information.

An ICT source said both AIS and Total Access Communication (Dtac) confirmed their standpoint that they would not accept any compensation claims by their concession owners.

The companies said if they accepted the losses, it could mean they admitted that all their past contract amendments had been illegal.

AIS raised three key points at the committee meeting, chaired by the ministry's permanent secretary, Jirawan Boonperm, on Friday last week, reiterating that the past concession amendments between AIS and TOT did not cause any damage to the state telecom enterprise and each change was voluntarily approved by the TOT board and attorneys. AIS said the changes benefited TOT, telecom authorities and consumers. AIS also insisted it had done nothing wrong and complied fully with the concession.

Plans firm to sell off AIS concessions to foreigners

Thailand - Govt is seeking to unravel the concession agreements with AIS, including claims for compensation

[the nation] This week's moves in the matter of illegal amendments to telecom concessions and the huge sums in compensation said to be due to state agencies have thrown an already complex situation into even deeper confusion.

TOT's board decided on Monday not to claim damages from amendments to the concession of Advanced Info Service (AIS), said to total Bt74 billion.

However, the government may not be able to let the case go easily. Ultimately, it may seek channels through which to claim damages. Otherwise, it may risk facing charges of dereliction of duty.

The TOT board's decision followed many years of examining amendments to its concessions and charges from various state agencies over the allegedly illegal nature of amendments in the case of AIS's concession.

The agency's board reasoned that the issue would end up in the hands of an ICT Ministry panel founded to negotiate with all concession holders over compensation for losses suffered by state agencies because of allegedly illegal amendments to their concessions.

ICT Minister Chuti Krairiksh said yesterday he would not intervene in the board's decision. However, his ministry knew how it would proceed in the case.

A source said the ministry was waiting for its committee founded to negotiate compensation claims with concession holders to wrap up the talks. Then the committee will submit the results to the Cabinet for consideration.

If the concession holders decline to pay compensation, the Cabinet could order TOT and CAT to cancel the concession amendments and claim damages in the Civil and Criminal Courts.

A TOT source said that after an examination of the case and consultation with legal experts, TOT decided it had only a slim chance of winning a damages claim against AIS. It would be hard to find clear-cut evidence that AIS had colluded with former prime minister Thaksin Shinawatra to reap benefits from his policies.

Therefore, the source said, it was judged better to let the ICT Ministry panel proceed with talks with all concession holders and submit the result to the Cabinet.

AIS recently denied the damages claims in a statement to the Stock Exchange of Thailand. It said it had done everything in compliance with the law, regulations and its concession.

Chuti said yesterday he did not understand why the TOT board felt afraid of losing the case to AIS. He said he would continue to protect the state's interests or he would risk facing charges of negligence of duty under Article 157 of criminal law.

Chuti denied that the claims of damages against the concession holders were aimed at pressuring them to pay kickbacks to the Democrat Party. While the concession holders want to see the damages claims settled by arbitration panels, Chuti said he wanted the cases to go straight to court.

Last week, TOT also asked the Finance Ministry to consider paying damages for TOT's losses of telecom excise. CAT Telecom did the same by filing a damages claim at the Central Administrative Court.

A Finance Ministry source said that if the ministry agreed that changes to the telecom excise had cost the state agencies, then it would bring a charge against the Thaksin cabinet on its own.

The Thaksin cabinet imposed the telecom excise in 2003 to allow fixed-line and cellular-concession holders to subtract 2 per cent and 10 per cent respectively from their concession fees and pay it to the Excise Department. The balance of the fees then went to TOT or CAT. Both state agencies claim this arrangement hurt them financially. The Surayud government abolished the telecom excise in 2007.

Chronology: The concession problem saga

May 2007 - The Council of State rules that some telecom concession amendments did not comply with the 1992 Public-Private Joint Venture Act. This leads to the appointment of state-private committees under the 1992 law to probe the amendments.

2008 - TOT and CAT Telecom approaches arbitration panels to claim damages from the concession holders in connection with the Thaksin Shinawatra government's move in 2003 to let concession holders deduct telecom excise from their concession fee.

November 2009: The Finance Ministry's State Enterprise Policy Office (Sepo) discloses that the allegedly unlawful concession amendments cost TOT a cumulative Bt87 billion and CAT more than Bt50 billion.

December 2009: The committees of TOT and CAT during the tenure of ICT Minister Ranongrak Suwanchawee conclude that none of the concession amendments financially damaged state coffers, and on the contrary boosted state revenue and assets to the tune of at least Bt100 billion.

February 26, 2010: The Supreme Court rules in the assets-seizure case against Thaksin.

November 19, 2010: ICT Minister Chuti Krairiksh sends letters to TOT and CAT to take steps to protect their interests in connection with the Supreme Court's ruling on the Thaksin case.

January 31, 2011: TOT notifies all telecom operators to compensate for damages caused by the concession amendments, telecom excise, and access charge to the tune of more than Bt214 billion.

February 1, 2011: Singapore Telecom senior executives hold discussions with Prime Minister Abhisit Vejjajiva on the telecom policy ahead of the Cabinet meeting on the same day. The cabinet approves the ICT Ministry's proposal to set up a panel to seek proposals from the concession holders on how to pay the compensation.

February 4, 2011 - AIS sends a letter to the homes of all 12 TOT board directors and the acting president, urging TOT to withdraw by February 9 its notification of the damage claim. If not, AIS might consider bringing civil and criminal charges against TOT and each individual responsible for the notification to protect its interests.

February 11, 2011: AIS takes its dispute with TOT to the arbitration panel after TOT declines to withdraw the notification claiming damages.

February 22, 2011: Three of the 12 TOT board directors resign from their posts.

February 23, 2011: ICT Minister Chuti sends a letter to TOT and CAT, urging them to protect their interest in connection with the Thaksin case. Two more TOT directors resign from their posts.

February 25, 2011: TOT and CAT claim damages from the Finance Ministry over losses caused by their concession holders deducting telecom excise from the concession fees.

February 28, 2011: TOT's board decides not to claim damages from AIS over the concession amendments, letting the ICT Ministry panel decide the issue.

Stand-off forces govt to consider options

New Zealand - Regulator is reviewing pricing of wholesale bitstream access

[national business review] The Commerce Commission is reviewing unbundled bitstream (UBA) broadband pricing, covering pricing components not included in a review of UBA data transmission costs already being carried out.

The UBA service allows telecommunications companies to supply broadband services to retail customers without the need to replicate Telecom's copper local loop.

Telecommunications commissioner Ross Patterson said the decision to carry out the latest review was a result of submissions received throughout the current review's consultation phases.

Another factor was the Ministry of Economic Development's release of a supplementary order paper to the Telecommunications Amendment Bill. The bill, if passed, would lock in the UBA price for three years, Dr Patterson said.

"The Commission is conscious that a decision needs to be made in a timely manner given the importance of the UBA price to the companies involved but is equally conscious of the importance of fully addressing all issues raised in submissions."

Review of unbundled bitstream broadband pricing

Australia - Govt has proposed changes to the ombudsman scheme to strengthen consumer protection

[computer world] A discussion paper which proposes giving the Telecommunications Industry Ombudsman (TIO) scheme more power to enforce telecommunications regulations was released today by Minister for Broadband, Communications and the Digital Economy, Senator Stephen Conroy.

The discussion paper forms part of the continuing reforms to telecommunications consumer safeguards.

“The recently released TIO statistics show that complaints to the ombudsman remain at very high levels and this is not acceptable,” said Senator Conroy in a statement.

According to the TIO, overall complaints for the July to December 2010 period increased nine per cent, driven by a sharp increase in mobile phone service issues. Mobile phone issues alone increased some 20 per cent.

“While I acknowledge the hard work the TIO does to deliver consumers with quick and effective solutions, I want to ensure it has the appropriate tools to deal with complaints,” he said.

Some options strengthen the compliance and enforcement regime could include a new industry code or standard providing the TIO with a public reporting power, strengthening the compliance mechanisms under the existing Telecommunication Consumers Protection (TCP) Code, and providing the Australian Consumer Communications Action Network (ACMA) with the ability to issue infringement notices.

Conroy proposes Telecommunications Industry Ombudsman Scheme reform
see also discussion paper

Wednesday, March 02, 2011

France - Free Mobile (Iliad Group) and Orange have signed a GSM roaming agreement and will extend this to 3G

[4-traders] Following a series of negotiations that have taken place over the past few months, Free Mobile (Iliad) and Orange signed a national roaming agreement on 2 March 2011 for their respective 2G networks in France.

Free Mobile and Orange have decided to extend this agreement to cover their 3G networks.

This agreement will take effect once Free Mobile has deployed a network that offers coverage for 25% of the French population. Under the terms of its licence, Free Mobile has taken a clear commitment to deploy a network that offers coverage to at least 90% of the population by 2018.

Free Mobile and Orange sign a 2G roaming agreement and agree to extend this to 3G networks

France - Former France Telecom CEO, Didier Lombard, will leave the company in its best interests

[reuters] Didier Lombard, who stepped down as chief executive last year after a wave of suicides hit France Telecom, said on Wednesday he would leave the company.

Lombard, who was expected to stay at the group as special adviser to current Chairman and CEO Stephane Richard on strategic options, said he had decided to give up that role in the "best interests" of France Telecom.

Last week, Chief Executive Stephane Richard took on the added post of chairman following the resignation of Lombard, who was initially supposed to remain chairman until June.

Lombard, who became France Telecom's chairman and chief executive in February 2005, said in a statement he hoped the group will "be able to move forward with dignity and confidence, pursuing its development both in France and internationally, under the direction of Stephane Richard,"

Former France Telecom boss Lombard leaves company

China - China Telecom will aims to achieve 100 million fibre optic lines by 2015 with a major investment

[people's daily] China Telecom plans to triple the number of users for its fiber optic broadband service this year to reach 30 million.

The company further aims to grow the user base to 100 million by the end of China's 12th Five-Year Plan (2011-2015).

China Telecom plans to cover every city in China with the fiber broadband service in three years and convert all copper lines to fiber, China Daily reported. Under the Five-Year Plan, the Chinese government will focus on developing the telecommunications infrastructure, with total investments reaching 2 trillion yuan. Broadband development would account for 80 percent.

"Only 23 percent of Chinese families have Internet access now, so China still has huge potential in this industry," said China Telecom chairman Wang Xiaochu.

This plan will provide broadband access, high-definition IPTV, 3D and rich media services that require bandwidth of about 10 megabytes and above.

China Telecom will follow the government's policies to improve infrastructure and cooperate with local authorities to integrate telecommunications, television and Internet networks.

The company further plans to introduce cloud computing and Internet of Things services, more internet applications for mobile and fixed Internet users and to accelerate its transformation into a comprehensive telecommunications provider.

It is expected to benefit the optical fiber firms.

Orient Securities holds that this large-scale user access upgrade will stimulate the upgrading of fiber optic metropolitan area networks and backbone transmission networks, and a fast-growing optical communication sector is expected.

Donghai Securities estimates that the investment made by the telecom operators in broadband construction will increase by 47 percent year on year in 2011 to 68 billion yuan. The broker believes that related accessory, equipment, and optical fiber cable sectors are will be the top three most popular sectors in the stock market.

China Telecom to build world's largest fiber optic network

Ethiopia - France Telecom as managers of ETC have cut 8,000 jobs, retaining 4,000 staff

[daily ethiopia] French telecommunications giant, France Telecom, and the Ethiopian government are involved in a dispute following a decision to cut 8,000 jobs at Ethio Telecom in a bid to restructure the state-owned company. Concerned over a number of irregularities, Prime Minister Meles Zenawi last week delegated a representative to find a solution to the issue.

In a bid to restructure and modernize the state run Ethiopian Telecommunication Corporation (ETC), the country’s government, three months ago, outsourced the management of Ethiopia’s sole telecommunications entity to French telecommunications giant, France Telecom.

Soon after taking over the management of ETC, now rebranded as Ethio Telecom, France Telecom moved to cut over 8000 jobs in accordance with an agreement reached with the government before the signing of the two year management agreement.

This came after a pre-contract assessment made by France Telecom showed that ETC had an excess of over 12,000 staff as far as the new structure was concerned. And after discussions with the Ethiopian government, France Telecom was given the green light to downsize ETC personnel.

But a list containing 4,000 staff members selected to remain in the new structure has been rejected by a representation of the staff who claim that the selection exercise launched by the new management was not based on merits.

According to employees, a number of deceased ETC personnel alongside many who now live outside the country appear on the list provided by the new management.

Seeking redress, the affected employees complained to Prime Minister, Meles Zenawi, who last week delegated his advisor and former mayor of Addis Ababa, Minister Arkebe Equbaye, to investigate the matter and find a solution.

But in spite of efforts made by Mr. Arkebe, including the removal of those responsible for the flawed staff selection, it is not certain if any of those affected by the mass lay off would be recalled.

Apart from its strong objection over the massive lay off exercise, ETC staff union has also raised concerns over the future of affected employees. But although the government shares the same sentiments, according to sources close to the Prime Minister’s office, no solution or response should be expected anytime soon.

Ethiopia: No Hope For Ethio Telecom Employees?

Algeria - Govt expects valuation of Djezzy by end of May in its bid to nationalise the firm

[reuters] Consultants hired by Algeria to value Orascom Telecom's local mobile phone unit are scheduled to complete their work by the end of May, Algerian telecommunications minister Moussa Benhamadi told Reuters.

Algeria's government has said it will nationalise the Djezzy unit after a row with the Egyptian parent company over hundreds of millions of dollars in back taxes and over the unit's ownership.

Uncertainty over how long the nationalisation will take, and how much Algeria will pay for the lucrative unit has hampered a multi-billion-dollar deal for Russia's Vimpelcom to buy Orascom Telecom assets.

Algeria in January appointed law firm Shearman & Sterling LLP to provide a valuation of Djezzy, which has been Orascom Telecom's biggest revenue generator.

"The consultancy firm started its work a week ago. The evaluation operation is due to last for three months. Talks will start after the presentation of the results by the firm," Benhamadi said on Wednesday.

Orascom Telecom has said it may be forced to take Algeria to international arbitration unless the dispute over Djezzy is resolved soon.

Algeria sees Orascom Tel unit valuation by end-May

South Africa - New minister is making progress, settled standards dispute over digital TV and looking at broadband

[financial mail] Communications minister Roy Padayachie has notched up some quiet successes since taking the job in October.

For one thing, he ended the confusion created by the communications department over which digital TV standard to adopt. A review process he put in place led to the selection of the European standard over the one backed by South Korea and Brazil.

His commitment to the European standard has brought the process back on track and allayed fears that a switch to the Korean/Brazilian standard would push the migration process back years and cost the local technology sector millions.

Padayachie is also behind moves to tighten the department’s oversight at the crisis-ridden SABC, Telkom and Sentech.

Though he has tidied up some messes , he has not yet spelt out the specifics of what he sees as priorities for his department.

A national broadband policy has been doing the rounds for a while but is short on specifics. “ We are hoping for a vision rather than some ad hoc response to issues in the sector,” says Research ICT Africa executive director Alison Gillwald.

She says: “There will be no dramatic shift in policy without a public process.”

This was evident when Padayachie met 30 of the top ICT businesses leaders last week to get their views on what was needed to boost the sector.

The meeting was well received by the participants. They have long complained that the department made little effort to consult them and tended to come up with policy in a vacuum. “It was very refreshing,” says Allied Technology (Altech) CEO Craig Venter.

Venter was one of the harshest critics of the move to review the digital TV standard process and had tried to schedule a meeting, without success, on six occasions with Padayachie’s predecessor, Siphiwe Nyanda.

Meeting these business leaders is only the beginning of Padayachie’s engagement with the sector.

“He also plans to meet the smaller companies. He does not want to get roped into seeing to the needs of a few larger ones,” says Venter.

Padayachie has not revealed his vision for the sector but this will probably be spelt out in the next few weeks when he delivers his department’s budget speech. What is already clear is that the migration from analogue to digital broadcasting will be one of his most pressing concerns.

The conversion to digital broadcasting is seen by government and business as a way to boost the local technology sector.

“Digital migration is a low-hanging fruit,” says Venter. The conversion will mean SA’s 11m TVs will need their own set-top boxes or satellite dishes to convert the signal.

The migration will open up opportunities for small electronics companies, because even a large manufacturer such as Altech would be able to make only 2m set-top boxes a year.

Venter says the migration will create thousands of jobs. Altech and consumer electronics group Ellies are planning to set up about 20000 small businesses to install the set-top boxes.

The conversion to digital broadcasting is not the only thing on Padayachie’s to- do list. He is committed to overseeing Telkom opening up its network to allow its rivals access to its local exchanges by November. The auction of radio spectrum that will enable new high-speed data services is also a priority.

In addition, the minister has to appoint a new director-general for his department following the abrupt departure of Mamodupi Mohlala.

Padayachie has a full in-tray and has yet to articulate his vision but when he does, there is a good chance it will be well thought out and based on broad consultation.

Communication at last

Tanzania - Increasing demands for improvements in quality of services as coverage is largely complete

[the citizen] As competition increases in the mobile phone services sector in Tanzania companies the attention is now shifting towards the quality of services as the best way method to survive.

The reliability of both voice and text messages services is forcing mobile phone companies to invest heavily in the infrastructure and new technologies. Most major firms have already extended their coverage to cover almost the whole country.

It is expected that 'mobile penetration levels' - the number of handsets compared with size of population - is to grow bigger as the National backbone laying reaches completion.

And having outwitted each other in the voice services mobile phones have shifted competition to internet services such that currently mobile telephones is still largely the only way that many people in urban areas get access to the internet because of the poor quality, and often complete lack, of fixed-line networks.

But this has not come without effect. Most major mobile firms have had to employ the 3G technology to improve their services. Zantel will, this year, become the latest entrant into that technology which is designed to enable mobile operators offer its users a wide range of services, including high-speed data, efficiently while achieving greater network capacity.

Norman Moyo, Zantel CEO informs that the firm is set to roll out its 3G network in April, raising the stakes in the battle for the Internet market.

The strategy he chooses is for the firm to be a converged services provider providing data, wholesale and voice services, with the planned network set to offer high speed mobile internet access, mobile video conferencing and videophone, among other services which it cannot provide with its 2.5G system.

He notes that the technology will boost its clientele base including corporate organisations whose employees work in the fields and require faster and reliable internet. "In this case our focus therefore will be on enhancing our network quality for improved customer experience when using our services and launching of innovative products targeting specific segments to ensure that our customers get value for their money," he says.

Fierce competition has pushed mobile firms to tailor better products for consumers while the battle of who offers better in the telephony industry seem to be giving clients broader choices.

But with internet penetration making further inroads across the country, the battleground seems now to be Internet telephony. According to Dr Haji Semboja, a university of Dar es salaam economist, Information Technology is the crane that is cutting across communities' work and with the advantages of packages offered by telecommunications companies; the market is getting more vibrant.

"And more telecommunications are vying to grab the lion's share of this rapidly emerging market as they roll out one product after another, "he says

Currently, Zantel communications set-up is based on a 2.5 G network whereby voice and data services are based on a General Packet Radio Service otherwise known as GPRS.

"Our GPRS data network has been improved with the usage of EDGE (Enhanced Data Rates for Global Evolution) that can deliver throughput speeds on the network faster than GPRS performance speeds," Mr Moyo says

It is an innovative movement towards accessibility and availability which he says has improved the overall consumer experience when retrieving data anywhere.

But in the first half of the year, he notes that the newest implementation to their network will be the introduction of the revolutionary 3G, a system, he says, will directly compete with other leading communication companies within the country offering their consumers a choice between GPRS/ EDGE and 3G wide-area coverage on voice calls and Internet access.

With this in mind our strategy is to be the first converged services provider by offering data, wholesale and voice services. He says the firm would further focus at growth of its broadband business, target the corporate, high value customers and retain their existing customers.

"This means we are aiming at spot one in Internet, corporate segment, in wholesale capacity, and a profitable operator in the country in terms of profit before interest and tax," he says.

He notes that this year would see a more focused strategic operation to concentrate on mainland regional sales such as Arusha, Mwanza and Tanga whereby data and voice services will be the primary focus.

The 3G technology, he says, will be implemented in phases starting with Dar es Salaam and Zanzibar and later to other parts of the country.

"In such a competitive market, innovative ideas are imperative and therefore naturally result in investment."

He says that recent consumers' studies have determined that data services are starting to dominate voice services.

"Undeniably ,this is a world that loves to talk and emphasis should be placed on creating reliable and affordable voice and data services as they are tasked by the business to provide and maintain a quality network, "he affirms

But as the industry grows, this will also provide more horizon for students pursuing courses in telecom engineering as the demand for such specialists will also increase.

"As the market revolutionizes so will there be a shift in trend on employment needs, and that means universities and vocational institutions would have to increase output," he says.

Zantel Set to Roll Out 3G Network as Telecom Rivalry Grows

Nigeria - Regulator has called for operators to reduce prices and increase quality of service

[leadership] Executive Vice Chairman of the Nigerian Communications Commission (NCC), Dr. Eugene Juwah has called on major telecom operators and vendors in Nigeria to improve on their current investments in the various networks so as to achieve better quality of service and price reduction.

Speaking at the just concluded Mobile Conference held in Barcelona, Spain, Juwah stated that telecom operators in the country needed to invest more resources in their networks to improve on the quality of services being delivered to Nigerians.

"Apart from quality of service, we need to see the operators reduce prices far more than they are doing at the moment. It appears the reductions are currently based on special packages. We don't think that is enough. We want to see reductions that affect the subscribers generally, and we think it is about time that the operators do something so that we don't have to introduce other measures that will be drastic to achieve that", he said.

He advised the operators to take a cue on investments from other operators around the world that are present at the congress with a view to deepening their investments in the country to achieve the twin desirable solutions of right quality at the right price.



Juwah who also received the commendations of the Secretary General of the ITU, Dr. Hamadoun Toure, said the Commission was ready to collaborate with the ITU in whatever way possible to ensure the realisation of the broadband vision for the benefit of the Nigeria and its citizens. He said the Commission would need the assistance of the ITU which has enormous recourses including human recourses.

"It is something that we want to deploy to change the face of ICT in Nigeria, and to reduce the digital divide between us and the developed world an also to revive our fixed line services", he said. He informed the ITU boss that while international consultants are looking at the approaches to this, the Commission was going to adopt the "Open Access" model which he said, might become the African continent model because of its wide acceptance in other parts of the world.

While commending NCC's plans, the ITU boss said its Bureau of Telecom Development would come to provide the credibility desired to make the programme realisable in Nigeria.

"I commend your initiatives. I have been following all that you have been doing. Since you took over, you recognised that a lot have been done. And you are moving now, shifting the entire thing to a new paradigm. Let's do it together. Your success is my success. We will help you to do it because we really have a common interest here. Let's do it and showcase it", Toure said.

Toure said he was pleased that NCC has chosen to move broadband to the centre of development. "Broadband will, therefore, be a toll for all our development, a tool for e-education, a tool for e-health, a tool for e-irrigation, a tool for commerce, a tool for governance. It is not an end on itself but a means to an end. Our challenge is how we move technology to achieve these objectives, for the continent. It demands an effective regulatory framework and I am sure that the Commission has the right approach," he said.

NCC Wants Telecom Operators to Cut Tariff

Europe - EC has warned about delays from creaking ICT infrastructure

[v3] A tenth of projects under the ambitious Digital Agenda initiative, which seeks to drive economic and social change by modernising Europe's creaking IT infrastructure, are delayed, according to the European Commission.

Digital Agenda commissioner Neelie Kroes told CeBIT attendees today that the strategy was adopted nine months ago, and that most of the 101 concrete actions in the agenda will be completed in the near future.

Kroes remained confident that the EC will be able to reach most of its targets by 2013, despite falling behind in some areas.

"My team and I are systematically monitoring progress. I can tell you that we are where we should be with 90 per cent of the actions. Ten per cent are already completed, and 80 per cent are on track," she said. "Unfortunately the remaining 10 per cent are delayed."

Problems are not being left to "fester", according to Kroes, and actions are underway to ensure that services are delivered as soon as possible.

Kroes also announced that an annual 'Digital Scoreboard' will be published from May to ensure that Europe meets its targets and to keep citizens updated about the progress being made.

"Broadband is a type of digital oxygen essential for our prosperity and our wellbeing. It is the solid foundation that can get everyone online," she said.

"A million jobs may depend on the successful rollout of broadband, not to mention Europe's wider prospects for economic growth and social cohesion."

The proportion of the European population regularly using the internet has increased by five per cent to 65 per cent over the past year, while the number without access to the internet has dropped from 30 per cent to 26 per cent, Kroes said.

CeBIT: European Commission warns on Digital Agenda delays

South Africa - Gauteng Province is to invest in broadband to reduce costs of economic participation

[itweb] The Gauteng provincial government will invest in ICT infrastructure and deploy broadband in a bid to bring down the cost of participating in the formal economy.

However, finance MEC Mandla Nkomfe did not indicate how much the provincial government would invest in ICT and broadband, nor the scope of these projects, during his budget speech this morning.

Addressing the Gauteng legislature, Nkomfe said: “Specific focus will be put on strategic infrastructure investment aimed at lowering the cost of economic participation by focusing on strategic economic infrastructure.”

Among Nkomfe's infrastructure priorities are rail, roads, freight, transport and ICT, including the rollout of broadband. “This is in order to address our socioeconomic infrastructure investments as a strategy of stimulating economic growth and job opportunities,” says Nkomfe.

Over the next three years, the province will invest R36.1 billion to implement its infrastructure investment programme. Of this amount, R17 billion will be used to build new infrastructure, and R4.3 billion will be spent on maintenance. The balance of the allocation will be used to refurbish and upgrade infrastructure, says Nkomfe.
Left out

Despite the e-tolling situation and the billing crisis at the City of Johannesburg making it into Gauteng premier Nomvula Mokonyane's state of the province address last month, these issues were ignored in the budget.

The Democratic Alliance's finance spokesman Mike Moriarty says the opposition party is “disappointed that the MEC had nothing to say about the billing crisis in local government; after all, the province has an oversight role in this regard”.
Moriarty adds the party “would also have welcomed an unequivocal statement that the province would not be seeking additional income out of the exorbitant toll fess, but this was not forthcoming”.

The toll fees were initially set at 66c a kilometre, but national government has agreed to revisit this figure after a national outcry. The new fees will be published before the tolls around Gauteng's freeways come into operation in June.
Gauteng expects to earn R67.9 billion in the new financial year, which will increase to R78 billion by the end of 2013/14.

Gauteng to invest in broadband

UK - Consumers group supports a ban on the use of "up to" speeds for broadband

[which] Which? believes that providers should not use 'unlimited' claims in phone and broadband advertising where there are restrictions to usage.

The Advertising Standards Authority (ASA) asked the Committee of Advertising Practice (CAP) and the Broadcast Committee of Advertising Practice (BCAP), who write the Advertising Codes, to review the use of 'unlimited' claims in telecommunications advertising.

Which? has responded to the CAP and BCAP consultation and set out proposals on the use of 'unlimited' claims in the advertising of broadband and other telecommunications advertising, including mobile broadband and mobile phone calls, texts and internet usage.

Which? responds on use of 'unlimited' claims
'Unlimited' claims in phone and broadband adverts

Algeria - Broadband access is forecast to rise to 6 millions users by 2013

[ennahar] Access to broadband internet (ADSL) is expected to reach six million subscribers Algeria by 2013 against 830,000 in today, said Tuesday the director general of the public operator Telecom Algeria, M'hamed Dabouz .

"Algeria Telecom expects to achieve by 2013, some six million broadband access," said Dabouz at a meeting organized by the government daily Al-Mujahid.

"In late 2010, Algeria Telecom had approximately 830,000 broadband subscribers on DSL for some five million Internet users," he said.

The number of subscribers accessing the Internet through optical fiber (FTTH deployed recently) currently does not exceed 300, but the operator intends to expand rapidly in urban areas with high density, the official said.

Algeria, whose population exceeds 35 million, end 2010 had over three million fixed telephone subscribers, the source said.

Algeria Telecom, which employs over 26,000 people, plans to invest 10 billion dinars (100 million euros) between 2009 and 2013 to expand its fiber optic network to double the number of fixed telephone subscribers, six million in 2013.

The public operator has also launched in June 2010 the laying a submarine cable in the development of its international telecommunications linking Oran (western Algeria) to Valencia (Spain).

Between 2000 and 2005, two cables have been laid connecting the city of Annaba (East of Algeria) to Malta and Algiers to Marseille (southern France).

Algeria: 6 million subscribers to broadband Internet in 2013

Nigeria - A forum called for a revolution to boost Internet penetration with lower prices and more ISPs

[daily independent] Stakeholders who gathered at a broadband forum jointly organised by eWorld magazine and eBusines Life magazine in Lagos last week, collectively agreed that a broadband revolution would boost internet penetration and reduce pricing.

They, however, insisted that Nigeria needs more Internet Service Providers (ISPs) to connect the last mile and actualise a broadband vision for the country.

They frowned at a situation where internet penetration remains low and pricing in bandwidth still high, in spite of the two submarine cables that have already birthed at the shores of the country.

Worried by the continuous high cost in bandwidth, President of Nigeria Internet Group (NIG), Mr. Bayo Banjo challenged MainOne and Glo 1, the two submarine cables in the country, to bring down the cost of bandwidth. Banjo called on the two submarine cable operators to slash the cost of bandwidth below $300 per megabyte and allow more ISPs to connect last mile service, which offers to take broadband to homes, offices and schools in every part of the country.

Responding, a representative of MainOne assured Nigerians that the cost of bandwidth could fall as low as $300 per megabyte, but asked for some time to actualise it. He said market forces and growth would definitely bring down the cost of bandwidth, such that Nigerians would have access to high internet speed at highly reduced rate.

Counting the gains that broadband revolution will bring to Nigeria, President of the Association of Telecom Companies of Nigeria (ATCON), Titi Omo-Ettu said Glo 1 and MainOne's investments in their submarine cables are stimulants and integral to business development, that would enhance local content development.

"Businesses should be done using local content and Nigerians must stop the importation of finished products with foreign content. But this must be done if there is availability of broadband that will give Nigerians the platform to explore opportunities," Omo-Ettu said.

He assured Nigerians that ATCON would stimulate the business of broadband by partnering with stakeholders in Information and Communications Technology (ICT) and disabused the minds of Nigerians from looking for foreign partners to do businesses with. If Nigerians are encouraged, they could do better than foreign partners, he said, adding that the availability of broadband could foster such envisaged performance.

In his speech, former Communications Minister Olawale Ige, who chaired the Broadband Forum, said the forum was proof of the dividends of democratic universal operations, facilitated by digitalisation, which led to the convergence of technologies and created a liberalised playing field for competition by infrastructure and service providers.

"It further affords flexibility in policy formulation and strategies, relative to each region or nation's development, in espousing appropriate technologies and growing at a convenient pace," he said.

The objectives of the Broadband Forum, as listed by the organisers, include bringing key stakeholders in the telecom sector to x-ray and chart a new course for the future of broadband and Internet connectivity as well as engaging governments at all levels to take broadband to consumers of Internet services: Ige said these objectives were paramount to achieving broadband availability as well as Internet penetration.

He said the terminology, broadband, had a long history, beginning with the Integrated Services Digital Network (ISDN) in the Legacy era, with limited speed of content delivery to modern day, Third Generation Partnership Projects (3GPP) technologies beginning with 2G GSM enhancements like the General Packet Radio Service (GPRS), through to the Long Term Evolution (LTE) technology.

He added that the envisaged next generation networks that would be built on optical fibre architecture and Internet Protocol (IP)-based, could conveniently be referred to as the ultimate in content delivery as the bandwidth availability would be very much above those of mobile systems that are limited to spectrum and other network capabilities.

Explaining the whole essence of the Broadband Forum as stated in a paper jointly written by Mr. Aaron Ukodie, Publisher of eWorld Magazine and Mrs. Ufuoma Emuophedaro, Publisher of eBusiness Life Magazine, Mrs. Emuophedaro said there was still some gaps in efforts by Nigerian stakeholders to grow broadband market, especially in the area of last mile connectivity that is yet to be achieved.

Several papers on how to achieve last mile connectivity, boost broadband and mobile application in the ecosystem and new media, were presented by Information and Communication Technology (ICT) experts. The papers include Broadband and Digital Rights, Sustaining Broadband Through Critical Information Infrastructure Protection, The Role of IXPN in Nigerian Broadband, Transforming Nigeria with Broadband Access and Connectivity and Dream Pipes to Actualise Pipe Dreams, among other presentations.

The Chief Executive Officer of Teledom Group, Dr. Emmanuel Ekuwem, in his paper titled, Dream Pipes to Actualise Pipe Dreams, listed four important factors to actualise broadband availability and penetration to include awareness, access, affordability and availability.

Broadband Forum Challenges ISPs to Deepen Internet Penetration

Hungary - Govt is to make broadband available in all areas to boost national competitiveness

[real deal] The government plans to help make broadband internet available in the whole of Hungary as part of competitiveness-boosting and IT development measures, state secretary for infocommunications told a press conference in Budapest on Monday.

Zsolt Nyitrai said the government's digital renewal action plan incorporates competitiveness-boosting elements with job creation and the development of creative industries.

He added that the plans will support solutions built on the convergence of mobile phone, TV and internet technologies as well as any initiative helping the country's infocommunications development.

There were 2.979 million internet subscriptions in Hungary at the end of June 2010, according to Central Statistical Office data. Fully 34.8 percent of all subscriptions were for mobile internet.

According to ACNielsen Piackutato Kft, 80 percent of Hungarian internet subscribers have a broadband connection, compared to an average of 65 percent in the European Union.

Government pledges full broadband coverage in Hungary

India - Finance minister announced funding for the roll-out of the Internet to 250,000 villages

[Govt of India] The Union Minister of Finance Shri Pranab Mukherjee, while presenting the Union Budget for 2011-12, has announced that Bharat Nirman package consisting of 6 flagship programme has been allocated Rs.58,000 crore, which represents an increase of Rs.10,000 crore from the current year. Bharat Nirman package includes Pradhan Mantri Gram Sadak Yojana (PMGSY), Accelerated Irrigation Benefit Programme, Rajiv Gandhi Grameen Vidyutikaran Yojana, Indira Awas Yojana, National Rural Drinking Water Programme and Rural telephony.

Shri Mukherjee emphasized that the Government’s flagship programmes have been the principal instrument for implementing its agenda for inclusive development.

With a view to take INTERNET at the grass root level, the Finance Minister said that a plan has been finalized to provide Rural Broadband Connectivity to all 2,50,000 Panchayats in the country in three years.

Bharat Nirman Allocation increased by Rs.10,000 Crores
Rural Broadband Connectivity to all 2.5 Lakh Panchayats Planned in three Year

UK - Welsh Assembly has set "ambitious" targets broadband access of 30Mbps by 2016

[computer weekly] The Welsh Assembly is using ambitious European targets in a tender for next-generation broadband access in the principality.

The government wants suppliers to provide all businesses in Wales with a minimum of 30Mbps by the middle of 2016; for all homes to have access to a minimum of 30Mbps by the end of 2020; and for 50% of all residential and business premises in Wales to have access to 100Mbps by 2020.

"Broadband services provided must, at all times, be at prices comparable to those available on the market in urban areas of the United Kingdom," it said in a request for tender published in the Official Journal of the EU.

It warned interested parties it expected them to provide a significant - multi-million pound - investment to go with money from the assembly itself and anticipated European Regional Development Fund (ERDF) funds.

The assembly said earlier it would make available £1,000 per home to help Wales residents get high-speed broadband.

The assembly planned to use a competitive dialogue approach. This would also explore ways to drive up demand and take-up by end users, let public sector bodies use the network to deliver services to end users and improve mobile coverage.

Welsh Assembly sets ambitious broadband targets for national network

Tunisia - Govt is set to confiscate 51% holding in Orange Tunisia as part of assets of former President

[telecoms.com] Less than a year after its launch, Orange Tunisia may be on the verge of gaining a new majority shareholder in the form of the country’s incoming government. According to a report from Reuters, the 51 per cent stake held by Investec could be seized following a rumoured draft cabinet decree to the effect that all assets of former president Ben Ali and his family be seized.

The Mabrouk Group, owned by the son-in-law of the former president, Marwan Mabrouk, is the owner of these shares through its Investec vehicle. The remaining 49 per cent is owned by France Telecom, which may now be given the option of buying the Investec stake. In 2010, the Tunisian government awarded the country’s first 3G licence to Orange which, according to Reuters, has responded to the rumours with the statement that the company’s priority is to maintain operations.

Orange launched in Tunisia in May 2010 and had 748,000 subscribers at the end of the year, following market leader Orascom with six million users and Tunisie Telecom with 4.3 million, according to Informa.

Tunisian government set to become majority shareholder in Orange?