Thursday, November 15, 2007

Gulf - investment in telecommunications

GCC to spend $375bn on expansion

The six countries of the Gulf Co-operation Council will spend up to $375bn on the expansion of telecommunications and related infrastructure over the next decade, reported Gulf News. About 25% of the multi-billion dollar GCC infrastructure development budgets will be spent on expanding telecommunications.

see also Gulf Co-operation Council

Tuesday, November 13, 2007

Asia - Data roaming

Conexus Mobile Alliance Announces the Launch of Asia’s First Pay-per-day Flat-rate Data Roaming Tariff Plan and Other Member Privileges

Conexus Mobile Alliance (“the Alliance”), one of the largest mobile alliances in Asia with a combined customer base of around 160 million mobile subscribers, today announced the launch of Asia’s first-ever pay-per-day data roaming flat-rate tariff plan and a host of member privileges, with an aim to deliver ground-breaking, genuine and tangible benefits to international roamers and realize its vision of offering the highest level of customer satisfaction in mobile services to corporate and consumer markets.

Mr. Chan Kin Hung, Chairman of the Alliance’s Board and Head of StarHub’s Advanced Multimedia Services said, “We are very pleased with this achievement in bringing the first-ever pay-per-day data roaming flat-rate plan in Asia. With the increasing popularity of mobile broadband (HSDPA) roaming in the region, it is important for the Alliance to offer peace of mind to our customers as they use these services while roaming. For a typical HSDPA session, the consumption of mobile data can be in the tens of megabytes, so the conventional way of data charging (i.e. per kilobyte usage) may not meet customers’ needs as it will be costly. This move demonstrates our commitment in offering customers cost-effective data roaming charges while roaming onto all member networks.”

Added Mr. Chan, “As this plan operates on a per-day basis, it gives members’ customers greater flexibility in how they manage their mobile bills, enabling travelers staying overseas to determine their mobile expenditure depending on the number of days they use these roaming services. It is a more customer-friendly way of data charging. When the pay-per-day data roaming flat rate plan is launched in the first quarter of 2008, our subscribers will be able to enjoy the convenience of mobile broadband roaming with an affordable and predictable pay-per-day flat rate in roaming. We believe that this will lead the industry in driving the usage of mobile data while roaming.”

EC - reform proposals

The EU Telecoms Reform proposes a Single Market for 500 million consumers – Frequently Asked Questions

The EU Telecoms Reform package includes several specific measures that will strengthen consumer rights and their freedom to choose.

* Broadband internet access: The reform will tackle more efficiently the dominant telecoms operators' control of the broadband market. This will strengthen the right of consumers to choose and change their broadband provider, lead to better and faster broadband services, and to lower consumer prices. By making radio spectrum use more efficient, the reform will also ensure that those regions of Europe where it is uneconomic to build, say, a fibre optic network, can be connected via wireless broadband services.
* Number portability: The reform will make it easier for citizens to keep their telephone number when switching providers, and set a maximum of 24 hours for operators to 'move' their number to the new provider. Today, this porting of numbers between providers, takes on average about 8 days for fixed telephone numbers and about 5 days for mobile telephone numbers; the best countries for this are Malta (1 day), Germany, Austria, and Finland (3 days), while porting a fixed telephony number can still take up to 30 days in Estonia, and up to 20 days in Slovakia for mobile numbers. In future, the Commission will also be able to extend this consumer right to the possibility of porting subscriber's personal directories and to the portability of numbers between fixed and mobile networks.
* More transparency: Confronted with a wide range of telecoms services and products, consumers often have difficulties in deciding which one is best for them; 34% of EU consumers admit facing problems in comparing the offers of different providers, making it harder to take advantage of the best possible deals. The reform will force telecoms providers to provide all relevant information on prices and other conditions so that consumers can make informed choices before making a purchase.
* Access to freephone numbers from abroad: At present, it is not possible to access certain freephone or business service numbers when calling from one Member State to another. Today consumers on holidays, or people travelling for work can have a problem in accessing public administration contact points (e.g. for health and pension systems), or pre-sale/after sale services. The EU Telecoms Reform will guarantee that access to these numbers is granted from everywhere in the EU. If you have to pay for this access, you should be told clearly in advance.
* Connecting all citizens: About 15% of Europeans have a disability and by 2020 25% of the EU's population will be over 65. The reform will therefore ensure that people with disabilities, special needs and elderly people all get easier access to telecommunications services. For instance, access to emergency services via the European emergency number, 112, will be improved; and more TV channels will have subtitles, audio descriptions or sign language.
* Independent watchdogs: The EU Telecoms Reform will ensure that competition and consumer rights in national markets are ensured by watchdogs which are fully independent from operators and government alike. Too often, telecoms regulators are today close to the dominant operator that in many countries continues to be owned by the national government; government shares in telecoms incumbents are still 100% in Cyprus, Luxembourg and Slovenia, and considerable in many other EU countries. A close relationship between regulators, incumbents and governments can lead to ineffective regulation, national protectionism and delays in enforcing consumer rights. The EU Telecoms Reform therefore wants to strengthen the independence of national telecoms watchdogs to guarantee fair regulation in the interest of consumers.

EC - reduction in number of regulated markets

Commission acts to reduce telecoms regulation by 50% to focus on broadband

As part of its package of telecom reform proposals presented today, the European Commission has adopted a new Recommendation on the markets where telecom-specific regulation should take place. The original 2003 version of this Recommendation listed 18 retail and wholesale markets where the Commission considers that specific ex ante regulation is required by national telecoms regulators to deal with competition problems. To reflect the progress made in the past years in most EU Member States in terms of competition and consumer choice, the Commission concluded that in principle there is no need for regulators to intervene in half of these markets. At the same time, this move will allow regulation to better focus on the main bottlenecks in the telecoms sector.

"Our decision today shows that this Commission is taking the principle of better regulation seriously," said Viviane Reding, the EU Telecoms Commissioner. "Where telecoms markets tend towards effective competition, we no longer need sector-specific regulation. We should instead concentrate regulation on those markets where structural competition problems persist, such as access to high speed broadband services. This is where almost all of the national telecoms regulators have identified serious and sometimes even growing competition problems. Let me at the same time stress that the markets phased out by the Commission today do by no means risk falling into a kind of regulatory "no-man's land". Markets no longer covered by ex ante regulation are subject to the scrupulous scrutiny of competition authorities which have powerful instruments at their disposal to investigate and sanction anti-competitive behaviour."

Neelie Kroes, EU Commissioner for Competition said "I am very much in favour of de-regulation where competition is progressing to the benefit of consumers, as in the telecoms sector, even if I am in favour of regulation where competition is not developing, as in the energy sector. Today's adoption of the new Market Recommendation confirms that the Commission keeps its promise to reduce the level of public intervention when it is no longer warranted. This message should further encourage investment in the European communications industry."

The Commission's original Recommendation of 2003 specified 18 markets where ex-ante regulation by national telecom regulators (such as retail or wholesale access or price regulation) could be justified. All these markets had to be regularly analysed by national regulators and notified to the Commission in the so-called "Article 7 procedure". Since 2003, the Commission has had to assess more than 700 such notifications.

Today, following a broad public consultation and a close dialogue with national telecoms regulators and competition authorities, the Commission has decided to reduce this list (partly by merging markets) by 50%. The Commission thereby intends to relieve significantly the regulatory burden on industry and regulators.

Most of the retail markets on the list were removed since effective wholesale regulation, checked by the Commission, serves in all EU Member States to protect retail users. A number of wholesale markets were also removed after most national regulators had found these markets to be effectively competitive.

The markets now removed from the Recommendation cover:

* National/local residential telephone services from a landline (Market 3)
* International residential telephone services from a landline (Market 4)
* National/local business telephone services from a landline (Market 5)
* International business telephone services from a landline (Market 6)
* The minimum set of leased lines (Market 7)
* Transit services in the fixed telephone network (Market 10)
* Wholesale trunk segments of leased lines (Market 14)
* Access and call origination on mobile networks (Market 15)
* International roaming on mobile networks[1] (Market 17)
* Broadcasting transmission (Market 18)

For these markets, the Commission no longer sees an a priori case for sector-specific ex ante regulation by national telecoms regulators; these markets should now be primarily dealt with by competition authorities using ex post instruments. It remains, however, possible for a national telecoms regulator to demonstrate, by a solid market analysis, that in its country, competition is still seriously hampered on one of the above markets. Under such circumstances, telecoms-specific regulation could be continued. This could be especially relevant for some of the EU's newest Member States.

From today onwards, the Commission and national regulators will be refocusing their efforts on those markets where competition is not yet effective and where consumer benefits are still largely lacking:

* Access to the fixed telephone network (formerly Market 1 and 2)
* Call origination on the fixed telephone network (formerly Market 8)
* Call termination on individual fixed telephone networks (formerly Market 9)
* Wholesale access to the local loop (formerly Market 11)
* Wholesale broadband access (formerly Market 12)
* Wholesale terminating segments of leased lines (formerly Market 13)
* Voice call termination on individual mobile networks (formerly Market 16)

Enterprise - Mobility

Two-thirds of business users would switch mobile operators for mobile device management

Businesses expect operator help with the growing complexity of mobilizing enterprise employees and applications, creating new opportunities for mobile operators to differentiate through MDM services

EDISON, New Jersey, USA – November 8, 2007 – Faced with a growing mobile workforce, a rapidly growing range of feature-phones and smartphones, and an increasing demand for enterprise application mobility, a recent survey of CIOs from top 500 enterprises shows that businesses are looking to their mobile operator partners to provide tools and services to help them control, secure, and manage mobile devices in the same way they manage other IT assets.

While CIOs have reported significant productivity gains from their use of mobile technology, and expect further gains from ongoing investments, the effective management of these corporate assets is becoming increasingly difficult. As a result, 45 percent of the CIOs surveyed are looking to mobile operators to provide assistance with the management of mobile devices. 62 percent of US CIOs indicate that they would change their mobile operator if they were offered a comprehensive mobile device management (MDM) solution by a competing mobile operator.

To determine how CIOs feel about the operators’ role in helping to manage mobile devices and the sensitive corporate data on them, mobile device management leader Mformation® Technologies, Inc. sponsored a survey by independent research firm Coleman Parkes. The firm conducted 200 detailed interviews with CIOs and telecommunications directors of top 500 enterprises divided across the U.S. and Europe (U.K., Germany, and Spain).

Key research findings:

* 82 percent of US CIOs report that managing mobile devices has become increasingly difficult.
* Almost all CIOs surveyed (95 percent) are currently looking for a solution for managing and securing enterprise mobile devices and applications.
* The vast majority of US companies (88 percent) expect the operator to have a role in enterprise mobile device management, with nearly 60 percent indicating that they would prefer an arrangement with their operator that gives the IT department direct control over their mobile assets.
* Not surprisingly, therefore, 62 percent of US companies indicated they would consider switching to a new mobile operator if they offered MDM as a managed service.

“Clearly, very real opportunities exist for mobile operators to provide value-added device management services for enterprise customers, increasing their competitive advantage,” said Matt Bancroft, CMO of Mformation. “More than 90 percent of CIOs expected operators to play a role in the management of their mobile devices, with most preferring that their IT departments directly control the devices with some support from the operator. There is a significant opportunity for operators to help enterprises with the challenges and complexities associated with mobile device management.”

Enterprise Expectations and Operator Actualities
Companies are already taking action to address some of the issues created by growing mobile device usage. 74 percent of US companies said they have increased investment in data and system security, while 71 percent said they have increased investment in staff training. Furthermore, 66 percent have increased their investment in monitoring and security systems.

A critical device management concern among enterprises is the ability to provide a high degree of device and network security. Other key concerns are the ability to remotely support users, so that device problems are quickly identified and fixed, technology is kept updated and future-proof, and support costs are kept under control. CIOs surveyed indicated that they expect some level of operator support in this area. However, the present enterprise view is that the operator is not supporting these needs well. 60 percent of US enterprises surveyed did not have any positive opinion of current operator device management support.

“From a revenue perspective, enterprise customers are immensely important to operators. However, their needs are significantly different from those of consumers. Enterprises are looking for far more advanced device and application management services; they need the same levels of security and control as they have over other IT assets such as laptops and PCs. If mobile operators can’t meet these needs, they risk losing their most profitable customers,” concluded Bancroft.

Monday, November 12, 2007

India - 3G spectrum

DOT announces guidelines for 3G services

The Government has released the guidelines for 3G services today. With the introduction of 3G services in the country, additional value added services will be available to the public.

Guidelines for 3G Services:

Ø The 3G (3rd generation) mobile telecommunications is the generic name for the next generation of mobile networks that will combine wireless mobile technology with high data rate transmission capabilities. The 3G networks will be capable of providing higher data rates and will also be capable of supporting a variety of services such as high- resolution video and multi media services in addition to voice, fax and conventional data services.
Ø 3G spectrum will be permitted in the 2.1 GHz band.
Ø The 3G licences would be granted through a controlled, simultaneous ascending e-auction, by a specialised agency to ensure transparency in the selection process.
Ø Besides the initial, one time spectrum charge, it has been decided that the successful service provider would pay additional spectrum charge of 0.5 % of their total Adjusted Gross Revenue (AGR), as the recurring annual spectrum charge. This additional revenue share is proposed to be 1% of AGR after 3 years from the date of spectrum assignment.
Ø The roll out requirements, including rural roll-out, as well as stiff penalties for non compliance of the same has been stipulated.
Ø Mergers will not be allowed during the initial five years. No trading/ reselling of spectrum is allowed.
Ø The CDMA spectrum in 800 MHz band for EV-DO applications would be treated separately from 2.1 GHz spectrum. If the CDMA based service provider(s) ask for the EV-DO carrier of 2 x 1.25 MHz, they would have to pay an amount proportionate to the highest bid for spectrum in 2.1 GHz band.

Sunday, November 11, 2007

Bangladesh - VoIP

Aktel fined Tk 145cr for illegal VoIP trade

The country's telecom watchdog fined Aktel Tk 145 crore for its involvement in the illegal use of VoIP (Voice over Internet Protocol) or call termination business.

Bangladesh Telecommunication Regulatory Commission (BTRC) in a press release said during recent raids by the law enforces, Aktel's involvement in illegal call termination business was ascertained.

Talking to The Daily Star, BTRC Chairman Maj Gen (retd) Manzurul Alam said, "Aktel has already paid Tk 72.50 crore to the national exchequer."

Telekom Malaysia International Bangladesh (TMIB) is the 70 percent stakeholder of Aktel.

Aktel is not alone in paying the government compensation. Earlier, country's largest mobile phone service operator Grameenphone announced it would pay the government Tk 168.4 crore while another major operator Banglalink said they would pay Tk 125 crore.

The BTRC chairman said, "We hope that no telecommunication operator will facilitate any illegal VoIP ventures... No one will be spared if found involved in any capacity in the illegal call termination business."

The BTRC in a press statement yesterday said international call termination to Bangladesh is a licensed service and is currently reserved only for the state-owned telephone operator Bangladesh Telegraph and Telephone Board (BTTB).

Law enforcement agencies and the BTRC started joint operations on illegal VoIP operators after this interim government took office in January.

Aktel, the second largest mobile phone service operator in Bangladesh, already made a loss in the third quarter, due mainly to the compensation it will pay the government.

However, Aktel's earnings before interest, taxes, depreciation and amortization (EBITDA) fell sharply due to the government compensation. It also increased customer acquisition costs. In the 2007 third quarter it made an EBITDA loss of Tk 343 crore.

In the 2007 third quarter, Aktel's total revenue rose to Tk 355.7 crore. The number of subscribers reached 70 lakh this year, up 63 percent from last year, according to figures published by Telekom Malaysia (TM).

TMIB VERSION

The TMIB in a statement said, "The company has recently agreed to compensate Bangladesh government for the 'lost revenue' attributed by the misuse of some of TMIB subscribers [Aktel]. The TMIB already paid Tk 72.50 crore out of its total commitment of Tk 145 crore."

Before the current caretaker government took control, unauthorised use of VoIP and international call termination was highly prevalent in the country.

It said TMIB, as a responsible corporate entity, is compliant with laws of the land and is very much appreciative of the stand and initiative of BTRC in becoming an effective regulatory regime.

TMIB's acting managing director Kamshul Kasim said, "We respect where we do business. We would be 100 percent compliant with the laws of Bangladesh."

Germany - traffic data retention

German parliament passes controversial telecom surveillance law

The German parliament approved a highly controversial law on Friday to toughen telecommunications surveillance in a bid to combat crimes and terrorism.

The new law, passed by the Bundestag, the lower house of the German parliament, will allow telephone and Internet data to be stored for up to six months.

The data include telephone numbers, cellphone locations, and the times and dates of the calls. The content of telephone conversations will not be stored.

The new measure, which will go into effect on Jan. 1, 2008, will also allows German law enforcement authorities to bug telephone conversations of lawyers, journalists and doctors in investigations into serious crimes after obtaining a court order. Access to emails and other internet data will be permissible from 2009.

The law has triggered outcry from German associations of doctors and journalists, which said that they would take measures to examine whether the law violates the constitution.

Speaking of a "black day for civil rights" and a "sad day for democracy," the opposition Greens and the Left Party said that they would file a complaint against the law with the constitution court.

In defending the bill, German Justice Minister Brigitte Zypries said Friday that the amended telecommunications law will not "pave the way towards a surveillance state." The law would enable the authorities to combat crime and terrorism more effectively, she stressed.

Saturday, November 10, 2007

Femto Cells

Femto Forum adds Morotola, NEC and other heavyweights

Just three months ago, femtocells were being labeled as obscure technology. But the Femto Forum is hoping that some of its new members will make femtocells an everyday word.

The Femto Forum, an industry group dedicated to promoting the adoption of industry-wide standards, announced this week that it has added several big-name players in the mobile communications industry to its roster, including Alcatel-Lucent, NEC, Nokia Siemens Networks and Motorola. The forum, which was originally launched in July, initially consisted of smaller femtocell designers and vendors such as Airvana and picoChip.

“The forum’s work is now in full flow, with the major femtocell vendors and component providers actively working with operators to ensure that their products interoperate,” says Simon Saunders, the chairman of the Femto Forum.

Femtocells, which are sometimes referred to as “mini-cell towers,” are devices that let you use short-range cell phone frequencies to route wireless calls through your home broadband connection. Because they essentially take cell phone calls and convert them into VoIP, they have the potential to free up some demand placed on the wireless carriers’ networks.

In order to promote the widespread deployment of femtocells, the Femto Forum has created four working groups to craft industry-wide femtocell standards and to forge a common marketing strategy. Among other things, the groups are working on promoting a unified regulatory framework for femtocells, on creating standardized architectures and interfaces that will guarantee network interoperability, and on examining how to avoid potential interference between nearby or outdoor femtocells.

Saunders says he expects 2008 to be a “really busy year” for femtocell deployment, as more Femto Forum members begin going to market with their products. A report by ABI Research expects femtocells to become very popular with consumers, and projects that there will be 150 million femtocell users by 2012. Sprint Nextel has been the most aggressive major American carrier in promoting femtocell use, as the company recently rolled out its Airave devices in Denver and Indianapolis, making the first time a major carrier has sold femtocells in metropolitan markets.

see also Femto Forum

Latin America - new operator

ALBA Members Outline Joint Venture to Boost Communication Services

Havana, Nov 6 (acn) Officials from Venezuela, Nicaragua, Bolivia and Cuba, member countries of the Bolivarian Alternative for the Americas (ALBA) agreement, are meeting in Havana to outline the legal framework for a joint venture that will boost communication services in the region.

Scheduled for January 2008, the project called "Grannacion" is aimed at boosting the telecommunications and information technologies in Latin America by providing safe and stable access.

"All member countries will have the same advantages and possibilities," said Cuban First Vice Minister of Telecommunications and Informatics Ramon Luis Linares Torres.

Participants will discuss telephone services, the development of communications, future training workshops and infrastructure networks, among other topics.

"This project is an alternative to transnational companies and is much needed as part of the integration model for Latin America and ALBA members in particular," said Linares Tuesday in the opening ceremony in Havana.

The meeting is scheduled to conclude on Saturday. The legal framework for the project should be approved during the next meeting to take place in Venezuela in December.

see also Defining the Bolivarian Alternative for the Americas - ALBA

Friday, November 09, 2007

India - spectrum

GSM lobby moves tribunal against expert report

Not satisfied with the government’s move to review the expert committee recommendation on spectrum allocation, GSM operators’ body COAI today moved telecom tribunal TDSAT challenging the criteria adopted by the Department of Telecom (DoT).

Members of the Cellular Operators Association of India (COAI), including Bharti Airtel, Vodafone-Essar and Idea Cellular, met here and decided to go ahead with filing of the affidavit in the TDSAT against the Telecom Engineering Centre’s (TEC’s) report.

The COAI has also questioned the government’s move to allocate spectrum to two telecom PSUs — BSNL and MTNL — saying they have been given frequency out of turn as many other players have been waiting to get spectrum for months and even years now.

Today’s affidavit would widen the scope of COAI’s original petition challenging the DoT’s decision to allow use of dual technology thereby permitting operators to offer mobile services using both technologies (GSM and CDMA) simultaneously within a circle.

In the face of stiff opposition from the GSM lobby, the government yesterday announced to form a panel to look into the TEC report on spectrum allocation.

Earlier Raja had informed the prime minister that the TEC, a technical wing of the DoT, had recommended very scientific criteria for spectrum allocation and the same had been accepted in-principle by his ministry.

According to the TEC report, none of the existing GSM players would remain eligible to get additional spectrum as the body had recommended 4-15 times higher subscriber limit for additional spectrum.

Wednesday, November 07, 2007

Telstra - Executive pay

Statement by the Chairman

The Board is disappointed by the vote on the Remuneration Report today. We have heard the views of shareholders and will carefully assess and fully consider those views in planning future remuneration.

The Board has a responsibility to act in the long-term interest of shareholders: a responsibility that we take with the utmost seriousness. We believe the Telstra remuneration plan is serving the long-term interests of shareholders by directly aligning executives' remuneration with shareholder wealth and strong financial results like those announced last week.

When boards are faced with non-standard circumstances - such as implementing the world's largest, fastest and most complex transformation strategy - they are obliged to design remuneration plans that serve the long-term interests of shareholders and drive strong financial results like those announced last week. This is the role of the Board.

We have received institutional and retail support for the plan. In particular, we are pleased with the support of instalment receipt holders - shareholders of less than one year - who support our strategic vision. However, the opposition of the Future Fund has decided the final outcome.

Most opponents of the Remuneration Report did not object to the value of benefits available. Most recognised that, under the 2006/07 long-term incentive plan, 99.7 cents in every dollar of shareholder wealth created would accrue to ordinary shareholders. Opposition was instead often based on the complexity of the plan and the fact that some performance hurdles were not disclosed.

We accept that the scheme is complex: in a transformation of this size, extent and pace, complexity is necessary, especially at the early stage of a transformation, to ensure progress simultaneously on many fronts. We do not accept that further disclosure of performance hurdles would serve shareholders' interests. In fact, we have resisted revealing hurdles that could provide competitors with competitively sensitive information. For instance, we did not disclose competitively sensitive information about the timing and extent of the NextG™ network, even though some advisers desired that.

Detailed discussions with many of our largest shareholders reveal increasing support for company-by-company assessment criteria that can account for particular circumstances, rather than a one-site-fits-all approach. We believe this debate is in its infancy and will continue, involving many corporations, stakeholders and, eventually, proxy advisers.

Telstra is changing the game in telecommunications with benefits for shareholders and the nation. Telstra's transformation is changing the competitive landscape with strategic projects like NextG™ and NextIP™. We are confident shareholders will be well served by the remuneration plan discussed today. This remuneration plan is designed to drive the transformation by linking executive remuneration to the success of the strategy. Ultimately, the Telstra board is prepared to be judged on how effectively the transformation strategy delivers shareholder value.

France Telecom - functional separation

France Telecom's Champeaux critical of EU telecom proposals

Jacques Champeaux, head of regulatory affairs at France Telecom, says the group has 'mixed feelings' over European Commission proposals to overhaul the telecoms market, arguing that measures such as functional separation take away the incentive to invest in new infrastructure.

'Even when presented as last recourse, we believe it (functional separation) goes in the wrong direction,' said Champeaux.

'The Commission presents it as just an additional remedy in the toolbox, but if a regulator has not been able to implement a simple remedy, it will be very difficult to implement an intrusive remedy such as functional separation,' he said.

Functional separation is a measure under which a telecoms company with a dominant market position could, if other measures failed, be forced to separate its networks and services divisions to guarantee that rivals can access its infrastructure.

According to Champeaux there is big difference between the telecoms and energy industry, for which the Commission recently proposed similar measures which call for the separation of European electricity and gas grid operations from supply, generation and production.

'There is clear evidence that there won't be new technology for electricity, but in telecommunications there is a real possibility to create full infrastructure competition,' Champeaux said, stressing that the introduction of functional separation would amount to 'a move back to a monopoly'.

Asked whether the group has been in contact with EU competition commissioner Neelie Kroes and EU industry commissioner Guenter Verheugen, Champeaux said it is 'interesting that the opinions were against functional separation and the need for a new European authority'.

Commenting on the EU's proposals as a whole, Champeaux told reporters: 'It is not a fully consistent message: on the one hand there is a real message on deregulation, with the Commission acknowledging we need less regulation.'

But on the other hand, 'some measures in the proposals make us believe that the European Commission does not think we can achieve full competition'.

Champeaux also feels that creating a new EU agency called the European Telecom Market Authority, which would be made up of the directors of the 27 national telecommunications agencies, is 'a bad message on less regulation and full competition'.

EU Telecoms commissioner Viviane Reding will present her proposal to change the current EU telecoms framework on Nov 13.

Romania - Independent regulator

Romania may be fined for inappropriate telecom market rules

The European Commission warned Romania that a fine may be applied for breaking the Community Treaty, Martin Selmayr, spokesman for Telecomm Commissioner Viviane Reding, declared for Hotnews.ro in an exclusive interview on Tuesday.
Romania risks millions of euros in fines for the lack of political independence of the Telecomm Regulation Authority (ANRCTI).

European officials sent warning a letter to the Romanian Telecomm Minister, Iuliu Winkler, but the local authorities claim it was "a natural information demand from the Commission".

The stake is to control a market that may reach some six billion euros in 2008. President Traian Basescu sent back to the Parliament the ANRCTI law because the current shape of the law would leave the institution under the control of the House of Deputies, currently dominated by the governing Liberal Party.

The electronic telecomm market reached 4.2 billion euros in 2006 and is estimated at 5 billions in 2007.

The European Commission demands the EU members to ensure the political independence of the telecomm regulation authority, mainly on markets where the state still holds shares at one or more of the operators.

The Romanian state still holds, through the IT&C Ministry, 45.99% of the stock at Romtelecom (the rest being owned by the Greek group OTE) and 100% of the public radio service, SRR.

See also ANRCTI

Monday, November 05, 2007

Google - Mobile telephony

Where's my Gphone?

Despite all of the very interesting speculation over the last few months, we're not announcing a Gphone. However, we think what we are announcing -- the Open Handset Alliance and Android -- is more significant and ambitious than a single phone. In fact, through the joint efforts of the members of the Open Handset Alliance, we hope Android will be the foundation for many new phones and will create an entirely new mobile experience for users, with new applications and new capabilities we can’t imagine today.

Android is the first truly open and comprehensive platform for mobile devices. It includes an operating system, user-interface and applications -- all of the software to run a mobile phone, but without the proprietary obstacles that have hindered mobile innovation. We have developed Android in cooperation with the Open Handset Alliance, which consists of more than 30 technology and mobile leaders including Motorola, Qualcomm, HTC and T-Mobile. Through deep partnerships with carriers, device manufacturers, developers, and others, we hope to enable an open ecosystem for the mobile world by creating a standard, open mobile software platform. We think the result will ultimately be a better and faster pace for innovation that will give mobile customers unforeseen applications and capabilities.

We see Android as an important part of our strategy of furthering Google's goal of providing access to information to users wherever they are. We recognize that many among the multitude of mobile users around the world do not and may never have an Android-based phone. Our goals must be independent of device or even platform. For this reason, Android will complement, but not replace, our longstanding mobile strategy of developing useful and compelling mobile services and driving adoption of these products through partnerships with handset manufacturers and mobile operators around the world.

It's important to recognize that the Open Handset Alliance and Android have the potential to be major changes from the status quo -- one which will take patience and much investment by the various players before you'll see the first benefits. But we feel the potential gains for mobile customers around the world are worth the effort. If you’re a developer and this approach sounds exciting, give us a week or so and we’ll have an SDK available. If you’re a mobile user, you’ll have to wait a little longer, but some of our partners are targeting the second half of 2008 to ship phones based on the Android platform. And if you already have a phone you know and love, check out mobile.google.com and make sure you have Google Maps for mobile, Gmail and our other great applications on your phone. We'll continue to make these services better and add plenty of exciting new features, applications and services, too.

What would your phone do?

see also Open Handset Alliance

Asia - data roaming

Asia Pacific’s leading Bridge Alliance launches one-flat data roaming rate across 11 territories

* One-flat rate for easy-to-understand pricing across the region
* Competitive rates provide up to 10 times more usage benefit
* Choice of two capped usage monthly subscription plans
* Subscription is straightforward – just add on to a local service plan
* The alliance also launches a new brand identity, reinforcing its focus to serve customers roaming on the alliance network

Bridge Alliance, the leading mobile alliance in Asia Pacific announces the launch of its one-flat rate mobile data roaming(1) plan, ‘Bridge DataRoam’ across 11 territories in the region.

With ‘Bridge DataRoam’, customers have a choice of two capped usage monthly subscription plans - US$30 for 15MB (Bridge DataRoam15) or US$60 for 40MB (Bridge DataRoam40). The one-flat rate is applicable when customers roam on the alliance’s 11 member operator networks, namely: Airtel (India), AIS (Thailand), CSL (Hong Kong), CTM (Macau), Globe Telecom (Philippines), Maxis (Malaysia), SK Telecom (Korea), SingTel Mobile (Singapore), SingTel Optus (Australia), Taiwan Mobile (Taiwan) and Telkomsel (Indonesia).

Bridge DataRoam15 and Bridge DataRoam40 can be used for both Blackberry and general mobile data roaming, customers can subscribe to either plan depending on their data roaming usage requirement.

Currently, different operators are charging different data roaming rates across the Asia Pacific territories and it is sometimes confusing for the customers. Some customers may have even experienced “bill shock” when they used data roaming to access their emails or perform downloads from the mobile internet when they travel overseas and across multiple territories. Bridge DataRoam’s one-flat rate across 11 territories not only provides an easy-to-understand pricing, it is competitively priced and its capped usage plans provide the best value of up to 10 times(2) more usage benefits. Customers can now subscribe to a Bridge DataRoam plan before they travel and they know exactly how much to pay for their data roaming.

The bundled capped usage of 15MB and 40MB are catered for the mid to heavy data users. As an indication, 15MB and 40MB can provide up to 300(3) emails or 1500(3) WAP pages, and 800(3) emails or 4000(3) WAP pages downloads respectively. Frequent business travellers and regional enterprises can now effectively manage and control their data roaming expenses with Bridge DataRoam.

Subscription is straightforward, customers can simply add on to their local service plan by signing up with their respective local member operator. Bridge DataRoam will be available for subscription from the month of November(4), from its 10 participating member operators, namely: Airtel (India), AIS (Thailand), CSL (Hong Kong), Globe Telecom (Philippines), Maxis (Malaysia), SK Telecom (Korea), SingTel Mobile (Singapore), SingTel Optus (Australia), Taiwan Mobile (Taiwan) and Telkomsel (Indonesia).

“We are delighted to announce the launch of Bridge DataRoam across our alliance network. This is a ground-breaking initiative that exemplifies the value that Bridge Alliance offer to our customers,” says Ms Mary Ong, Chief Executive Officer of Bridge Mobile, at the Bridge DataRoam launch event today.

“We are the leading mobile alliance with the widest footprint in Asia Pacific, providing seamless connectivity on tier-one quality networks of our member operators. In addition, we have now introduced a product that delivers tangible value to our customers: a truly seamless experience of one-flat data roaming rate across the region. Whether you are a current data roaming user or new user, Bridge DataRoam is your travel essential,” she adds.

Also at the launch event, the alliance unveiled a new brand identity, announcing the change of its previous name from Bridge Mobile Alliance to Bridge Alliance and introducing its new logo.

Launching the alliance’s new brand identity, Mr Lim Chuan Poh, Chairman of Bridge Alliance says, “The re-branding to Bridge Alliance and the introduction of a new logo marks the start of a new phase in the growth of the alliance. Going forward, Bridge Alliance will further strengthen its focus on serving the telecommunications needs of both business and leisure travellers across the region. We believe that with the new brand image, customers will better associate and recognize the value that Bridge Alliance can offer to them.”

“Bridge DataRoam is a service that brings to life the brand promise of seamlessness and straightforward services to help our customers stay one step ahead of their busy lives. Bridge DataRoam is priced at a level that will bring about a sense of "peace of mind" when our customers access their emails and other data services while travelling in the region. In line with our focus to serve the needs of travellers, Bridge Alliance will continue to develop innovative solutions and to deliver more value-added regional offers to enhance our customers’ travel experience when they are on Bridge Alliance's network.” Mr Lim adds.

Beyond the 11 territories covered by Bridge DataRoam, the alliance will also seek other collaborations to extend the roaming coverage to more territories for its Bridge DataRoam users.

GPS-enabled mobile handsets

Shipments of GPS-enabled mobile handsets to more than quadruple by 2011, says iSuppli

Global shipments of mobile handsets equipped with GPS capability are expected to more than quadruple from 2006 to 2011 due to the US government's mandate for emergency 911 (E911) capability as well as initiatives by wireless operators to offer location-based services (LBSs), according to research firm iSuppli.

GPS-equipped mobile handset shipments will increase to 444 million units by 2011, rising from 109.6 million units in 2006. By 2011, 29.6% of all mobile phones shipped will have GPS capability, up from 11.1% in 2006.

"Besides cameras, multimedia capabilities and connectivity solutions, mobile-handset OEMs increasingly are investigating the integration of GPS functionality in mobile devices as a value-added product differentiator," said Tina Teng, analyst, wireless communications at iSuppli. "Wireless carriers are looking at introducing various new GPS-based, revenues-generating services to increase average revenues per user (ARPU)."

Such LBSs are the key services that could drive up ARPUs. LBSs include a broad range of value-added services that incorporate user location pinpointed by satellites or other tools with location databases. The most common services are user location, turn-by-turn navigation, location search, tracking, information services and social networking.

E911 mandates also are driving the expansion of the GPS-enabled handset market in the United States. The US Federal Communications Commission (FCC) in 1996 issued a report that requires all operators to precisely locate the position of wireless callers making emergency 911 calls.

The regulation was implemented in three phases: Phases 0, I and II. Phase II of the E911 implementation requires all operators to deliver specific latitude and longitude information of the caller, also known as automatic location identification (ALI). This can be accomplished using a GPS-enabled mobile handset.

Qualcomm, the dominant supplier of code division multiple access (CDMA) solutions, began to integrate GPS processors into its digital baseband semiconductors in 2000. This company always ensures its CDMA network infrastructure products support the functionalities that its digital basebands deliver, including GPS.

Because of this, the CDMA-dominated nations of the United States and South Korea are expected to be the leading regions for GPS-enabled mobile handsets. Europe will be the next largest GPS-enabled handset market as GPS functionality penetrates into smartphones. In September, a Nokia smartphone with GPS capability was the top model purchased on the website of European carrier O2.

Semiconductor suppliers, wireless network operators and device manufacturers are already in the GPS game. LBS will encourage more suppliers to provide the most efficient solutions in terms of power consumption, time to first fix (TTFF) and affordable pricing for A-GPS adoption.

Semiconductor suppliers include baseband providers that offer complete solutions from cellular products to various connectivity options; companies that specialize in GPS and that provide GPS chipsets and software packages not only to handset manufacturers but also to automotive and personal navigation system manufacturers; and companies that specialize in radio frequency (RF) and that integrate GPS receivers into their current cellular RF receiver offerings.

see also iSuppli

Sunday, November 04, 2007

Africa - MTN

MTN Group maintains emerging markets leadership as subscribers exceed 54 million

Highlights

* SEA region subscriber base up 5% for quarter ended 30 September 2007
* WECA region subscriber base up 9% for quarter ended 30 September 2007
* MENA region subscriber base up 36% for quarter ended 30 September 2007

The MTN Group is pleased to announce that it recorded 54,162,000 subscribers across its 21 operations for the quarter ended 30 September 2007, a 12% increase from 48,346,000 subscribers recorded at 30 June 2007.

The South and East Africa (SEA) region contributed 33% (June 2007: 35%) of the Group’s total subscribers while the West, East and Central Africa (WECA) and the Middle East and North Africa (MENA) regions contributed 47% (June 2007: 48%) and 20% (June 2007: 17%) respectively.

Says MTN Group President and CEO, Mr Phuthuma Nhleko: “I am pleased with the steady growth of our subscriber base during this last quarter, especially the progress we are making at MTN Irancell, which really launched in earnest in January 2007 but has already exceeded 3,7 million subscribers.”

The SEA region increased its subscriber base by 5% for the quarter. Growth in the region was driven mainly by MTN Group’s South African operation, with subscribers increasing by 3% for the quarter ended 30 September 2007. Postpaid net connections have now normalised following the unwinding of the specific unfavourable on biller agreement. There has been a restatement of the South African subscribers and ARPU which now reflects MTN’s consolidated South African operation (the restated history is available at www.mtn.com). MTN Uganda subscribers increased 12% to 2,094,000 due to more competitive pricing.

In the WECA region the 9% growth was driven largely by MTN Nigeria, which recorded a 7% increase in subscribers to 14,985,000. An aggressive network rollout plan is addressing the quality and capacity issues following the high rate of subscriber acquisitions since the last quarter of 2006.

Ghana increased its subscriber base by 14% to 3,872,000 underpinned by strong operational execution of the network rollout. In addition, Cameroon increased subscribers by 15% to 2,238,000 due to increased marketing activities.

The MENA region recorded a 36% increase in subscribers mainly due to strong growth from start-up operations in Iran, which increased subscribers by 88% to 3,720,000. There was also continued strong growth in Afghanistan (66%), Sudan (24%) and Syria (12%).

MTN South Africa’s Average Revenue Per User (ARPU) increased, on a comparable basis, by 1% to R146. Nigerian and Ghanaian ARPUs remained strong at $17 and $16 respectively.

Subscriber Numbers - Subscribers are customers who have participated in a revenue generating activity in the last 90 days. ARPU is the average revenue per subscriber calculated on a monthly basis (includes interconnect fees and excludes connection fees, where these are material, and visitor roaming revenue).

* South Africa now includes community service payphones into the pre-paid and application providers into post-paid. Prior periods have been adjusted for comparative purposes.

see also financial results

Saturday, November 03, 2007

South Africa - Undersea cables

South Africa: Controversy Continues Over Undersea Cables

Highway Africa News Agency (Grahamstown)

The uncertainty surrounding aspects of the South African government's position on undersea cables is damaging and threatening to sink the country's hopes for a successful 2010 Soccer World Cup.

According to the Internet Service Providers' Association of South Africa (ISPA) which is particularly concerned about the troubling about-turn in the Minister Ivy Matsepe Casaburri's policy regarding the ending of the exclusivity on SAT-3 from November 2007.

"While the draft policies issued in May had a clear and welcome provision on SAT-3 exclusivity, this is mysteriously missing from final policy gazetted last month. Many pronouncements made by the Minister in her budget speech are now out of date," said Ant Brooks, ISPA General Manager. Equally confusing is that while the minister has mandated ICASA to ensure there is no unfair competition relating to the use of undersea cables, she has also made it clear that any undersea cable landing in South Africa must be majority South African-owned. This is especially confusing because a cable usually has two ends.

That the Minister's ownership comments are unfortunate is highlighted by the fact that Seacom's quoted prices for its March 2009 launch are some fifteen times cheaper than Telkom's current pricing for International Private Leased Circuits.

Seacom is the planned undersea cable system running along the East African coast. When it comes to landing rights, the fact that Seacom is majority foreign-owned is now seen as more important than President Mbeki's State of the Nation Address comment about telecoms pricing in South Africa being ten times too expensive.

Amid assurances that her department was working on refining the landing requirements, almost a full month ago, Communications Ministry Director-General Lyndall Shope-Mafole was quoted as saying the undersea cable landing guidelines would be ready "soon".

"Talk of majority South African-ownership of cable systems is very worrying and totally at odds with common practice elsewhere.

Reputable organisations such as the World Bank have made it clear that allowing all competing undersea cables equitable landing rights while limiting public sector involvement in telecommunications is the way to reduce prices," said Mr. Brooks.

The New Partnership for Africa's Development (NEPAD) e-Africa Commission recently announced plans for a submarine cable following its split from the private sector-led East African Submarine Cable System (EASSy). Much attention has been given to the fact that the new cable system will eventually have a 3.8 terabit per second capacity without any mention of exactly how much capacity will be ready for 2010.

Should the South African government continue to place arbitrary and ill-advised restrictions on investment in communications it is very doubtful that the country will have sufficient bandwidth available for 2010.

According to Mr. Brooks, "A likely scenario is that bad planning and an unclear regulatory framework will see ISPs being pressured to give preference to World Cup traffic at the expense of mission-critical daily business traffic."

The Internet Service Providers' Association is a South African Internet industry body incorporated not for gain. ISPA currently has about 150 members, comprised of large, medium and small Internet service and access providers in South Africa. Formed in 1996, ISPA has historically served as an active industry body, facilitating exchange between the different independent Internet service providers, the Department of Communications, ICASA, operators and other service providers in South Africa.

Africa - World Bank commitment

World Bank's $1 billion to spur Africa IT

World Bank doubles its commitment in Africa's broadband infrastructure development by investing $1 billion

Government officials and industry insiders have high hopes for the World Bank's additional $1 billion investment, announced this week, in the development of the information and communication technology infrastructure in Africa over the next five years.

The World Bank's private arm, the International Financing Corp. (IFC), is investing in Africa's fiber-optic cable systems by giving loans to governments and private partners, service providers, and investors to extend access to ICT.

"The World Bank is now doubling its commitment in Africa's broadband infrastructure development in the next five years by investing $1 billion in broadband infrastructure development," said World Bank director of operations, Hartwig Schafer. He added that the aim of the funds is to make sure that the continent catches up with the rest of the world in broadband connectivity.

With the announcement, made this week at the Connect Africa summit in Kigali, Rwanda, the World Bank is raising its commitment to African ICT to $2 billion by 2012, from its current investment program of $1 billion over the past five years.

Many African broadband projects remain incomplete due to lack of funds, said Rwandan president Paul Kagame at the Connect Africa summit.

The bank is also pushing African governments to ease restrictions on the acquisition of international gateway licenses in order to promote competition by service providers and lower telecom. Acquiring an international gateway license in Kenya costs $214, 000, a figure that service providers say is beyond their ability to pay and prohibits development.

In August this year, the bank approved a $32.5 million loan to East African Submarine Cable System project, designed to connect 21 countries in Africa to each other and the rest of the world.

Celtel International, Africa's second largest mobile service provider, received a $320 million loan for expansion in five countries on the continent, including Madagascar, Uganda, Sierre Leone, and Malawi. Celtel has a presence in 14 African countries.

Schafer said the bank would also partner with universities, ICT regional regulatory associations and IT institutions in Africa to offer training and capacity development for regulatory staff.

According to the bank, from 1995 to 2005, it invested $25 billion in the ICT sector in Sub-Saharan Africa through private operators and investors. Sub-Saharan African includes Zambia, Botswana, Namibia, Malawi, Tanzania, and Kenya.