Former Siemens executive convicted in bribery case
A German court on Monday convicted a former manager at Siemens of misuse of funds, in the first - but probably not the last - verdict stemming from a massive bribery scandal at the giant engineering and electronics company.
A court in Munich fined Reinhard Siekaczek €108,000, or $170,000, and imposed a two-year suspended prison sentence following an eight-week trial in which prosecutors offered extensive testimony and documentation about a company-wide system of slush funds and illicit payments.
Prosecutors had requested a relatively lenient penalty because Siekaczek cooperated extensively with the investigation, they said Friday in the final day of the trial.
A mid-level manager who worked at Siemens's telecommunications equipment division until 2004, Siekaczek oversaw a system that skimmed money out of legitimate company activities and into off-books accounts. The money was then used for bribes.
The conviction is the first resulting from an investigation that became public in late 2007 and that has only gathered steam since then. A law firm hired by Siemens has since identified €1.3 billion in "suspicious payments" that may have been bribes to win business.
Prosecutors say they are investigating over 300 other past and present Siemens employees on suspicion of wrongdoing, and that they are still sorting through millions of documents in their inquiry.
So far, prosecutors have not filed criminal indictments against any senior Siemens executive over the scandal, but neither have they ruled them out. They have charged Klaus Kleinfeld, the former chief executive, and Heinrich von Pierer, the former chairman, with failing to effectively supervise the company, a minor charge that under German law could result in only a fine.
However, Siemens itself is expected to announce lawsuits Tuesday against both executives over their failure to detect and clean up the network of slush funds and bribes, a person briefed on the matter said.
Though common in the United States, charges against former executives in Germany are relatively rare, and appear to signal the intent of Siemens's new chief executive, Peter Löscher, to mount an aggressive cleanup effort. Both Kleinfeld and von Pierer resigned last year as the scandal grew.
Monday, July 28, 2008
Belgacom - fine for delayed tariff reduction
Belgian regulator fines Belgacom 3.09 mln euros for tariff cut delay
The Belgian Institute of Postal services and Telecommunications (IBPT) has fined Belgacom S.A. 3.09 million euros for a delay in passing on lower mobile termination rates to consumers, according to a statement on the regulator's website.
The IBPT said Belgacom failed to pass on lower rates that were imposed in October 2006 and May 2007. The regulator gave the group a warning to do so by Jan. 1.
The lower rates were implemented gradually in the first half of this year and completed by this month.
A spokesman for Belgacom said the group was 'very astonished' by the regulator's decision.
The spokesman said the Beglacom's tariffs are up to 25 percent cheaper than other mobile operators and its has been lowering its rates for the past 12 months.
Belgacom was also surprised by the regulator's decision to inform the media of the fine before the group itself.
The spokesman added that the group will 'probably appeal' the fine. It has 60 days to lodge an appeal.
The Belgian Institute of Postal services and Telecommunications (IBPT) has fined Belgacom S.A. 3.09 million euros for a delay in passing on lower mobile termination rates to consumers, according to a statement on the regulator's website.
The IBPT said Belgacom failed to pass on lower rates that were imposed in October 2006 and May 2007. The regulator gave the group a warning to do so by Jan. 1.
The lower rates were implemented gradually in the first half of this year and completed by this month.
A spokesman for Belgacom said the group was 'very astonished' by the regulator's decision.
The spokesman said the Beglacom's tariffs are up to 25 percent cheaper than other mobile operators and its has been lowering its rates for the past 12 months.
Belgacom was also surprised by the regulator's decision to inform the media of the fine before the group itself.
The spokesman added that the group will 'probably appeal' the fine. It has 60 days to lodge an appeal.
South Africa - broadband
MTN’s broadband drive
MTN South Africa is investing in more 3G/HSPA coverage and better backhaul
MTN South Africa’s managing director, Tim Lowry, says that the company is focusing heavily on broadband and that it is showing very strong growth in this sector.
Over the past few years MTN has lagged Vodacom in the mobile broadband market, but with a R7.1 billion network investment in 2008 and a strong focus on pushing its broadband offerings MTN is taking the fight to Vodacom.
In the beginning of 2008 MTN indicated that it had around 120 000 data card users, and although Lowry could not give exact figures as the company was in a closed period he said that they were very rapidly growing their broadband numbers.
MTN has also started to expand its 3G/HSDPA footprint, and is planning to grow the number of 3G towers by 50% during 2008. MTN currently has around 2 000 3G/HSDPA towers, but this number can be expected to grow rapidly, the company said.
MTN’s full 3G network is already HSPA enabled – which means all towers are HSDPA and HSUPA capable – with minimum download speeds of 1.8Mbps and upload speeds in excess of 1Mbps.
Many of the company’s towers are also 3.6Mbps and even 7.2Mbps capable, but the commercial rollout of higher speed downlink and uplink speeds are being hampered by a lack of transmission capacity which up to now was supplied to cellular providers by Telkom.
Both Vodacom and MTN have previously indicated that Telkom’s inability to provide transmission capacity in a more timely manner means was holding them back when it came to launching higher-speed broadband offerings.
Own fibre backbone
To alleviate this problem both cellular providers are investing in their own fibre networks, something that will also save both companies billions of Rands in the long run.
MTN estimates that its metro fibre network will result in R2.8 billion in savings over the next 10 years while its national network will save the company R6.3 billion in Telkom fees.
Cost savings are however not the only benefit. Control over its own network should mean better service levels and less downtime.
MTN SA’s Chief Technology Officer Sameer Dave highlighted that Telkom’s service levels started to deteriorate recently, with up to 60% of all of MTN’s downtime being caused by problems on services like transmission links supplied by Telkom.
The company is also investing in projects which will increase its international bandwidth capacity. It is currently the biggest investor in the East African Submarine System (EASSy) and it is also discussing a new West Coast cable with partners.
The company put a Request For Service (RFS) date of 2011 on EASSy, but hopes that it may be completed in time for the 2010 Soccer World Cup. Logistical issues like getting vessels to lay the cable may however mean that the cable deployment is delayed.
MTN South Africa is investing in more 3G/HSPA coverage and better backhaul
MTN South Africa’s managing director, Tim Lowry, says that the company is focusing heavily on broadband and that it is showing very strong growth in this sector.
Over the past few years MTN has lagged Vodacom in the mobile broadband market, but with a R7.1 billion network investment in 2008 and a strong focus on pushing its broadband offerings MTN is taking the fight to Vodacom.
In the beginning of 2008 MTN indicated that it had around 120 000 data card users, and although Lowry could not give exact figures as the company was in a closed period he said that they were very rapidly growing their broadband numbers.
MTN has also started to expand its 3G/HSDPA footprint, and is planning to grow the number of 3G towers by 50% during 2008. MTN currently has around 2 000 3G/HSDPA towers, but this number can be expected to grow rapidly, the company said.
MTN’s full 3G network is already HSPA enabled – which means all towers are HSDPA and HSUPA capable – with minimum download speeds of 1.8Mbps and upload speeds in excess of 1Mbps.
Many of the company’s towers are also 3.6Mbps and even 7.2Mbps capable, but the commercial rollout of higher speed downlink and uplink speeds are being hampered by a lack of transmission capacity which up to now was supplied to cellular providers by Telkom.
Both Vodacom and MTN have previously indicated that Telkom’s inability to provide transmission capacity in a more timely manner means was holding them back when it came to launching higher-speed broadband offerings.
Own fibre backbone
To alleviate this problem both cellular providers are investing in their own fibre networks, something that will also save both companies billions of Rands in the long run.
MTN estimates that its metro fibre network will result in R2.8 billion in savings over the next 10 years while its national network will save the company R6.3 billion in Telkom fees.
Cost savings are however not the only benefit. Control over its own network should mean better service levels and less downtime.
MTN SA’s Chief Technology Officer Sameer Dave highlighted that Telkom’s service levels started to deteriorate recently, with up to 60% of all of MTN’s downtime being caused by problems on services like transmission links supplied by Telkom.
The company is also investing in projects which will increase its international bandwidth capacity. It is currently the biggest investor in the East African Submarine System (EASSy) and it is also discussing a new West Coast cable with partners.
The company put a Request For Service (RFS) date of 2011 on EASSy, but hopes that it may be completed in time for the 2010 Soccer World Cup. Logistical issues like getting vessels to lay the cable may however mean that the cable deployment is delayed.
Africa - the rise of pay television
Five out of every seven new subscribers choose GTV!; GTV has become Africa's fastest growing pay-television service according to a new research report
If you subscribed to a pay-television service in Africa in the last year, then the chances are that you selected GTV. In fact over the last 9 months, 5 out of every 7 new subscribers to satellite television chose GTV, according to a recent report by Balancing Act, the leading African research company specializing in the media and communications sectors.
This is even more remarkable when you consider that it was only a year ago that GTV burst on to the previously monopolised pay-TV scene and in such a short period of time has already established itself as the people's choice for satellite television entertainment.
Julian McIntyre, Founder and Managing Director said, "We respect that people have a choice as to how they spend their money for entertainment and we are incredibly proud that so many African families are choosing GTV. With the tremendous demand we are experiencing, I am more convinced than ever that we will realize our dream of delivering affordable satellite television to every home in Africa."
Demand for the GTV service has been driven by the chance to enjoy a broad range of high quality television channels at an affordable price, with various packages to meet the budget of every African family. Despite a reputation as a leading sports broadcaster, with live coverage of the Barclays Premier League amongst other major sports leagues, GTV broadcasts a range of exciting content to satisfy the desires of all members of the African family, including movies, soaps, series, music, documentaries, religion and news.
GTV currently offers its service in 20 markets across the continent and intends to expand to over 30 countries by year-end. GTV has activated over 100,000 subscribers and estimates that they have over 1.25 million regular viewers on a monthly basis. With its rapid growth path, GTV estimates that it will connect millions of subscribers over the next few years.
If you subscribed to a pay-television service in Africa in the last year, then the chances are that you selected GTV. In fact over the last 9 months, 5 out of every 7 new subscribers to satellite television chose GTV, according to a recent report by Balancing Act, the leading African research company specializing in the media and communications sectors.
This is even more remarkable when you consider that it was only a year ago that GTV burst on to the previously monopolised pay-TV scene and in such a short period of time has already established itself as the people's choice for satellite television entertainment.
Julian McIntyre, Founder and Managing Director said, "We respect that people have a choice as to how they spend their money for entertainment and we are incredibly proud that so many African families are choosing GTV. With the tremendous demand we are experiencing, I am more convinced than ever that we will realize our dream of delivering affordable satellite television to every home in Africa."
Demand for the GTV service has been driven by the chance to enjoy a broad range of high quality television channels at an affordable price, with various packages to meet the budget of every African family. Despite a reputation as a leading sports broadcaster, with live coverage of the Barclays Premier League amongst other major sports leagues, GTV broadcasts a range of exciting content to satisfy the desires of all members of the African family, including movies, soaps, series, music, documentaries, religion and news.
GTV currently offers its service in 20 markets across the continent and intends to expand to over 30 countries by year-end. GTV has activated over 100,000 subscribers and estimates that they have over 1.25 million regular viewers on a monthly basis. With its rapid growth path, GTV estimates that it will connect millions of subscribers over the next few years.
Sunday, July 27, 2008
Zain - best African operator
Zain Wins Prestigious Best Telecom Operator in Africa Award
Zain subsidiary, Celtel won the award for the Best Telecoms Operator in Africa at the prestigious 2008 Business in Africa Awards held in London recently, beating a host of other operators to win the award. The awards aimed at highlighting the growth and potential of the business landscape across Africa, while rewarding excellence and world-class best practices across the continent.
One of the innovations spearheaded by Celtel for which it was adjudged for the award has been its rollout of the One Network service which has had a profound impact on the African continent. The concept allows Celtel's customers both prepaid and postpaid in 12 countries from East, Central and West Africa to use a seamless and borderless network service. The customers can move freely across geographic borders, making calls and sending messages (sms) at local rates and receiving incoming calls free of charge. The countries covered by Celtel's One Network service comprise more than half of Africa's population and stretch over an area twice the size of Europe. Celtel is the only operator in the world to offer this award winning service.
This prestigious event was attended by 500 government, business, and media leaders from across Africa, Europe, Asia and the USA. The evening represented an ideal and unique opportunity to give global visibility to world-class African brands.
Collecting the award for Zain, Tito Alai, Chief Commercial Officer for Zain Group commented "Zain places a huge emphasis on Africa in achieving its 2011 targets of being a top-ten global mobile operator with 110 million customers."
Alai further added, "This award is an achievement that represents our belief in the African continent and the potential that exists. Together with our partners and customers we are committed to building the African economic dream and developing telecommunications across the continent as no other telecom company has been able to do."
The awards were co-hosted by the Commonwealth Business Council (CBC) and African Business magazine. Notable VIPs such as Ephraim Inoni, Prime Minister of Cameroon; Bethuel Mosisili, Prime Minister of Lesotho; Senator Daggash, Nigeria's Minister of National Planning; Neville Isdell, Chairman of Coca Cola; and other prominent diplomats and businessmen presented the Awards to the winners in a festive and memorable African night.
Philip Sowah, the Country manager of Zain Ghana reiterated that "this award reaffirms the reasons why Zain is launching its network in Ghana- to give Ghanaians access to the top quality telecommunications services available throughout Zain Operations in Africa and the Middle East. These are exciting times for Zain Ghana as we look forward to participating in the economic growth of Ghana by making world class telecommunications services available to all. Ghanaians will soon be able to experience Zain's "one network" services as described above.
Zain subsidiary, Celtel won the award for the Best Telecoms Operator in Africa at the prestigious 2008 Business in Africa Awards held in London recently, beating a host of other operators to win the award. The awards aimed at highlighting the growth and potential of the business landscape across Africa, while rewarding excellence and world-class best practices across the continent.
One of the innovations spearheaded by Celtel for which it was adjudged for the award has been its rollout of the One Network service which has had a profound impact on the African continent. The concept allows Celtel's customers both prepaid and postpaid in 12 countries from East, Central and West Africa to use a seamless and borderless network service. The customers can move freely across geographic borders, making calls and sending messages (sms) at local rates and receiving incoming calls free of charge. The countries covered by Celtel's One Network service comprise more than half of Africa's population and stretch over an area twice the size of Europe. Celtel is the only operator in the world to offer this award winning service.
This prestigious event was attended by 500 government, business, and media leaders from across Africa, Europe, Asia and the USA. The evening represented an ideal and unique opportunity to give global visibility to world-class African brands.
Collecting the award for Zain, Tito Alai, Chief Commercial Officer for Zain Group commented "Zain places a huge emphasis on Africa in achieving its 2011 targets of being a top-ten global mobile operator with 110 million customers."
Alai further added, "This award is an achievement that represents our belief in the African continent and the potential that exists. Together with our partners and customers we are committed to building the African economic dream and developing telecommunications across the continent as no other telecom company has been able to do."
The awards were co-hosted by the Commonwealth Business Council (CBC) and African Business magazine. Notable VIPs such as Ephraim Inoni, Prime Minister of Cameroon; Bethuel Mosisili, Prime Minister of Lesotho; Senator Daggash, Nigeria's Minister of National Planning; Neville Isdell, Chairman of Coca Cola; and other prominent diplomats and businessmen presented the Awards to the winners in a festive and memorable African night.
Philip Sowah, the Country manager of Zain Ghana reiterated that "this award reaffirms the reasons why Zain is launching its network in Ghana- to give Ghanaians access to the top quality telecommunications services available throughout Zain Operations in Africa and the Middle East. These are exciting times for Zain Ghana as we look forward to participating in the economic growth of Ghana by making world class telecommunications services available to all. Ghanaians will soon be able to experience Zain's "one network" services as described above.
Serbia - interception
Potential abuse of users' privacy in Serbia
Serbia: New Instructions and Law Regulations on Online Privacy:
On July 21, RATEL, Serbia's Republican Agency for Telecommunications, posted a Document of Instructions for Technical Requirements for Subsystems, Devices, Hardware and Installation of Internet Networks on their official web site. This news didn't go unnoticed yesterday in Serbian blogosphere and internet community, as many bloggers expressed various opinions as well as disapproval because of the potential abuse of users' privacy.
This document of instructions defines technical requirements for authorized monitoring of some specific telecommunications and provides a list of duties for telecommunication operators, which are obligated to act according to the Constitution Law of Republic of Serbia as well as elements of it.
According to element 55 (Law of Telecommunications), subpart 3, these Instructions were issued by RATEL in cooperation with public telecommunication operators and the governmental body responsible for immediate conduct of electronic monitoring.
This means implementation of massive tracking and archiving in all forms of electronic communications for the purposes of the national agency for the security.
Serbia: New Instructions and Law Regulations on Online Privacy:
On July 21, RATEL, Serbia's Republican Agency for Telecommunications, posted a Document of Instructions for Technical Requirements for Subsystems, Devices, Hardware and Installation of Internet Networks on their official web site. This news didn't go unnoticed yesterday in Serbian blogosphere and internet community, as many bloggers expressed various opinions as well as disapproval because of the potential abuse of users' privacy.
This document of instructions defines technical requirements for authorized monitoring of some specific telecommunications and provides a list of duties for telecommunication operators, which are obligated to act according to the Constitution Law of Republic of Serbia as well as elements of it.
According to element 55 (Law of Telecommunications), subpart 3, these Instructions were issued by RATEL in cooperation with public telecommunication operators and the governmental body responsible for immediate conduct of electronic monitoring.
This means implementation of massive tracking and archiving in all forms of electronic communications for the purposes of the national agency for the security.
Ghana - privatisation
Parliament blocks GT sale; decision delayed at least a month
Ghana’s legislative chamber has delayed a decision on whether to allow UK-based mobile giant Vodafone to acquire a 70% stake in the country’s national fixed line operator and mobile services provider Ghana Telecom (GT). Earlier this month Vodafone agreed to buy the majority stake from the government for USD900 million on a debt-free, cash-free basis. The deal implies a total enterprise value of approximately USD1.3 billion for the telco which has around 375,000 main lines in service and also operates the country's third largest mobile network, GT-OneTouch, with 1.4 million customers and a 17% market share at the end of March 2008. Vodafone will now have to wait until the chamber reconvenes after its one-month break before the purchase can be approved.
The government has also been forced to reintroduce an amended version of the agreement to members of a joint committee examining the deal in order to address some of the concerns raised by its critics. After MPs had adjourned, Communications Minister Benjamin Aggrey-Ntim told reporters he was confident the deal would be approved ‘within the third quarter period.’ Only last week, members of the opposition Convention People’s Party (CPP) submitted a petition to parliament to register their disapproval over the sale of a majority stake in GT. The CPP members, reportedly calling themselves ‘the concerned citizens of Ghana’, have described the deal as ‘undesirable’ and ‘unscrupulous’ and questioned the executive’s motives for rushing bills through parliament without first conducting due diligence.
Ghana’s legislative chamber has delayed a decision on whether to allow UK-based mobile giant Vodafone to acquire a 70% stake in the country’s national fixed line operator and mobile services provider Ghana Telecom (GT). Earlier this month Vodafone agreed to buy the majority stake from the government for USD900 million on a debt-free, cash-free basis. The deal implies a total enterprise value of approximately USD1.3 billion for the telco which has around 375,000 main lines in service and also operates the country's third largest mobile network, GT-OneTouch, with 1.4 million customers and a 17% market share at the end of March 2008. Vodafone will now have to wait until the chamber reconvenes after its one-month break before the purchase can be approved.
The government has also been forced to reintroduce an amended version of the agreement to members of a joint committee examining the deal in order to address some of the concerns raised by its critics. After MPs had adjourned, Communications Minister Benjamin Aggrey-Ntim told reporters he was confident the deal would be approved ‘within the third quarter period.’ Only last week, members of the opposition Convention People’s Party (CPP) submitted a petition to parliament to register their disapproval over the sale of a majority stake in GT. The CPP members, reportedly calling themselves ‘the concerned citizens of Ghana’, have described the deal as ‘undesirable’ and ‘unscrupulous’ and questioned the executive’s motives for rushing bills through parliament without first conducting due diligence.
USA - broadband
NATOA announces adoption of broadband principles, partnership initiatives and actions
The National Association of Telecommunications Officers & Advisors (NATOA) has adopted and released formal Broadband Principles encouraging the immediate development of a National Broadband Strategy. The ten Broadband Principles, created by a task force of NATOA members, outline the critical need for widespread deployment of next-generation broadband networks and necessary steps to achieve this goal:
* NATOA calls for the immediate nationwide deployment of advanced broadband networks.
* True broadband requires high capacity bandwidth in both directions.
* Fiber to the premises isthe preferred broadband option.
* High capacity broadband connectivity must be affordable and widely accessible.
* High capacity broadband requires open access networks.
* Network neutrality is vital to the future of the Internet.
* All networks and users have the right and obligation to non–discriminatory interconnection.
* Local governments must be involved to ensure that local needs and interests are met.
* Local governments must be allowed to build and operate broadband networks.
* A variety of options must be considered to cover deployment costs.
“NATOA has dedicated extensive time and resources to national broadband interests,” noted Libby Beaty, NATOA Executive Director. “Our Broadband Principles partnerships and actions are the culmination of these efforts. We are thrilled to be involved in the evolution and progression of so many opportunities sustaining public interest.”
In furtherance of these principles and the organization’s goals, NATOA has announced a number of congruent partnerships and broadband actions:
* Internet for Everyone — NATOA has joined this national initiative of public interest, civic and industry groups supporting not only fast and affordable Internet for all citizens but the assurance that the Internet continues to drive U.S. economic growth and prosperity. Internet for Everyone launched last month with the simultaneous release of One Nation Online, a snapshot of the current state of broadband adoption in the U.S. and the vast digital divide. Internet for Everyone will hold public forums throughout the country to build support for a national broadband policy that restores America’s place as a world technology leader.
* National Public Lightpath (NPL) — NATOA is a member of this coalition formed to advocate for public participation in and ensure community access to the Next Generation Internet, and advise policy makers and government on a national infrastructure strategy for America’s next Internet. NPL is a partnership of the Institute for Next Generation Internet (INGI) at San Francisco State University, the Bay Area Video Coalition (BAVC), and the Association of Public Television Stations (APTS) working to establish the public media community as a leader in Next Generation Internet.
* BroadbandCensus.com — NATOA has partnered with the newly-formed BroadbandCensus.com, a free consumer-focused web service that provides the public and policy-makers with information and news about local broadband availability, competition, speeds and service. Together, we have created a system that will discretely capture individual consumer and local government information and make it available to the public. This information is vital to a transparent, competitive and universally accessible internet.
* Comments on the Development of Nationwide Broadband Data — NATOA has filed comments with the Federal Communications Commission (FCC) in the ongoing proceedings in the matter of Development of Nationwide Broadband Data to Evaluate Reasonable and Timely Deployment of Advanced Services to All Americans, Improvement of Wireless Broadband Subscribership Data, and Development of Data on Interconnected Voice over Internet Protocol (VoIP) Subscribership (WC Docket No. 07-38). A copy of the comments can be found on the NATOA website at www.natoa.org. NATOA will continue to work on this and related proceedings in furtherance of our principles, goals and initiatives.
Local governments have always played an essential role in ensuring that the benefits of communications infrastructure would be available in communities across the United States. Localities will, by necessity and by choice, be part of the solution to our national broadband deficit. NATOA will continue to work with its members, partners and affiliates toward a national broadband strategy and the assurance of a sustainable communications environment for the future.
The National Association of Telecommunications Officers & Advisors (NATOA) has adopted and released formal Broadband Principles encouraging the immediate development of a National Broadband Strategy. The ten Broadband Principles, created by a task force of NATOA members, outline the critical need for widespread deployment of next-generation broadband networks and necessary steps to achieve this goal:
* NATOA calls for the immediate nationwide deployment of advanced broadband networks.
* True broadband requires high capacity bandwidth in both directions.
* Fiber to the premises isthe preferred broadband option.
* High capacity broadband connectivity must be affordable and widely accessible.
* High capacity broadband requires open access networks.
* Network neutrality is vital to the future of the Internet.
* All networks and users have the right and obligation to non–discriminatory interconnection.
* Local governments must be involved to ensure that local needs and interests are met.
* Local governments must be allowed to build and operate broadband networks.
* A variety of options must be considered to cover deployment costs.
“NATOA has dedicated extensive time and resources to national broadband interests,” noted Libby Beaty, NATOA Executive Director. “Our Broadband Principles partnerships and actions are the culmination of these efforts. We are thrilled to be involved in the evolution and progression of so many opportunities sustaining public interest.”
In furtherance of these principles and the organization’s goals, NATOA has announced a number of congruent partnerships and broadband actions:
* Internet for Everyone — NATOA has joined this national initiative of public interest, civic and industry groups supporting not only fast and affordable Internet for all citizens but the assurance that the Internet continues to drive U.S. economic growth and prosperity. Internet for Everyone launched last month with the simultaneous release of One Nation Online, a snapshot of the current state of broadband adoption in the U.S. and the vast digital divide. Internet for Everyone will hold public forums throughout the country to build support for a national broadband policy that restores America’s place as a world technology leader.
* National Public Lightpath (NPL) — NATOA is a member of this coalition formed to advocate for public participation in and ensure community access to the Next Generation Internet, and advise policy makers and government on a national infrastructure strategy for America’s next Internet. NPL is a partnership of the Institute for Next Generation Internet (INGI) at San Francisco State University, the Bay Area Video Coalition (BAVC), and the Association of Public Television Stations (APTS) working to establish the public media community as a leader in Next Generation Internet.
* BroadbandCensus.com — NATOA has partnered with the newly-formed BroadbandCensus.com, a free consumer-focused web service that provides the public and policy-makers with information and news about local broadband availability, competition, speeds and service. Together, we have created a system that will discretely capture individual consumer and local government information and make it available to the public. This information is vital to a transparent, competitive and universally accessible internet.
* Comments on the Development of Nationwide Broadband Data — NATOA has filed comments with the Federal Communications Commission (FCC) in the ongoing proceedings in the matter of Development of Nationwide Broadband Data to Evaluate Reasonable and Timely Deployment of Advanced Services to All Americans, Improvement of Wireless Broadband Subscribership Data, and Development of Data on Interconnected Voice over Internet Protocol (VoIP) Subscribership (WC Docket No. 07-38). A copy of the comments can be found on the NATOA website at www.natoa.org. NATOA will continue to work on this and related proceedings in furtherance of our principles, goals and initiatives.
Local governments have always played an essential role in ensuring that the benefits of communications infrastructure would be available in communities across the United States. Localities will, by necessity and by choice, be part of the solution to our national broadband deficit. NATOA will continue to work with its members, partners and affiliates toward a national broadband strategy and the assurance of a sustainable communications environment for the future.
Zimbabwe - GPRS and UMTS
Econet gets 2.5G, 3G approval
Zimbabwean newspaper The Herald writes that the country’s largest mobile network operator by subscribers Econet Wireless has received long-awaited approval from regulatory authorities to launch commercial 2.5G and 3G services. TeleGeography’s GlobalComms database notes that the cellco rolled out a 900MHz/1800MHz GPRS platform in the middle of 2007 but failed to announce a full commercial launch, whilst it was also ready to roll out a W-CDMA network by the end of the year. Econet’s chief business development officer Elvis Gwanzura confirmed that GPRS had been installed for a year but had been awaiting approval from regulator POTRAZ for the usage of frequencies. Gwanzura said that Econet will now launch commercial GPRS services within the next four to eight weeks, whilst 3G could be introduced in the first quarter of next year.
Zimbabwean newspaper The Herald writes that the country’s largest mobile network operator by subscribers Econet Wireless has received long-awaited approval from regulatory authorities to launch commercial 2.5G and 3G services. TeleGeography’s GlobalComms database notes that the cellco rolled out a 900MHz/1800MHz GPRS platform in the middle of 2007 but failed to announce a full commercial launch, whilst it was also ready to roll out a W-CDMA network by the end of the year. Econet’s chief business development officer Elvis Gwanzura confirmed that GPRS had been installed for a year but had been awaiting approval from regulator POTRAZ for the usage of frequencies. Gwanzura said that Econet will now launch commercial GPRS services within the next four to eight weeks, whilst 3G could be introduced in the first quarter of next year.
USA - review of state's broadband initiatives
State Broadband Policy Survey
CostQuest Associates, a national telecommunications cost consulting and software firm, released the results of a 50 state survey it conducted in order to better understand the landscape of state policies developed to expand high-speed Internet availability. The survey shows that although most states have undertaken broadband initiatives, there is neither a single national model nor a consensus on best practices. CostQuest Associates conducted its survey to identify and track efforts in each of the 50 states to achieve broadband ubiquity. Among the key findings, CostQuest learned that at least 39 of the 50 states have some form of broadband initiative in place, either through legislation or through a more informal effort to increase broadband access. However, only 10 of the 50 states have undertaken
a definitive broadband mapping effort.
CostQuest Associates, a national telecommunications cost consulting and software firm, released the results of a 50 state survey it conducted in order to better understand the landscape of state policies developed to expand high-speed Internet availability. The survey shows that although most states have undertaken broadband initiatives, there is neither a single national model nor a consensus on best practices. CostQuest Associates conducted its survey to identify and track efforts in each of the 50 states to achieve broadband ubiquity. Among the key findings, CostQuest learned that at least 39 of the 50 states have some form of broadband initiative in place, either through legislation or through a more informal effort to increase broadband access. However, only 10 of the 50 states have undertaken
a definitive broadband mapping effort.
Saudi Arabia - spending on ICTs
Saudi Arabia to spend $20bn on ICT sector
Saudi Arabia has become the top investor in Information and Communications Technology (ICT) with projections to spend $20 billion on ICT sector this year. Overall, Europe, the Middle East and Africa (EMEA) is set to spend $73 billion on ICT which will reach over $95 billion in the next three years and the region is projected to overtake the US in ICT spending, the figures released by the Global Insight suggested. During 2008, purchases of ICT products and services within will overtake the US, according to a recent report by international research company, Global Insight.
As the economy in the United States slows down, due in part to the weak dollar, businesses in the Middle East are experiencing 5 percent growth, compared to 4 percent in the US, with the Middle East and Asia-Pacific becoming the two fastest growing regions in the world. With the Middle East strategically positioned as a hub of global technology, ICT companies are now looking to capitalize on this attractive market with increased investment in the area. "The Middle East is one of the fastest growing ICT regions in the world, combining strong business acumen and substantial experience in developing growth. This year's Gitex Technology Week will bring together the biggest local and international companies to build on the current boom in the Middle East ICT market," said Helal Saeed Al-Marri, director general of Dubai World Trade Center, organizer of the Gitex Technology Week.
Saudi Arabia has become the top investor in Information and Communications Technology (ICT) with projections to spend $20 billion on ICT sector this year. Overall, Europe, the Middle East and Africa (EMEA) is set to spend $73 billion on ICT which will reach over $95 billion in the next three years and the region is projected to overtake the US in ICT spending, the figures released by the Global Insight suggested. During 2008, purchases of ICT products and services within will overtake the US, according to a recent report by international research company, Global Insight.
As the economy in the United States slows down, due in part to the weak dollar, businesses in the Middle East are experiencing 5 percent growth, compared to 4 percent in the US, with the Middle East and Asia-Pacific becoming the two fastest growing regions in the world. With the Middle East strategically positioned as a hub of global technology, ICT companies are now looking to capitalize on this attractive market with increased investment in the area. "The Middle East is one of the fastest growing ICT regions in the world, combining strong business acumen and substantial experience in developing growth. This year's Gitex Technology Week will bring together the biggest local and international companies to build on the current boom in the Middle East ICT market," said Helal Saeed Al-Marri, director general of Dubai World Trade Center, organizer of the Gitex Technology Week.
South Africa - telecoms for the masses
South Africa: Telecoms 'Gold Rush' Leaves Nothing for Masses - ICASA
THE telecommunications sector is becoming a new gold rush where large white-owned companies pocket the wealth and leave nothing for the masses, says the chairman of the Independent Communications Authority of SA (Icasa).
The lowest rungs of society would be alienated if the regulator did not actively demand a greater role for black people in the industry, said chairman Paris Mashile. That is why Icasa would insist new licences for scarce spectrum went to companies that were 51% black-owned.
Speaking during a conference staged by Internet Solutions this week, Mashile defended Icasa's decision to make empowerment a more important criterion than skills or cash to build a telecoms network,
Demanding 51% black ownership "isn't outside the law" and the aim was to empower black people to start their own businesses rather than just take a stake in a successful white operator. White firms that sold equity to black people without relinquishing control were merely performing "empowerment gimmicks", he said.
The high black profile is a condition for six new licences to use a high-speed wireless technology called WiMax, and each licence will allocate 20MHz of spectrum. That decision has also angered the industry, with many voice and data carriers saying 30MHz is needed to build a cost-effective network.
Telkom's chief technical officer Thami Msimango said giving licences to one-man shows would not benefit the country. "People who can afford to roll out infrastructure should be given that spectrum," he said.
Vodacom CEO Alan Knott-Craig said true empowerment would be achieved by giving everyone access to affordable telephony and internet services, not by favouring operators owned by the previously disadvantaged. Vodacom could extend its network for two-thirds of the current cost if it had more spectrum, and it would pass the savings on to consumers by cutting the cost of calls, he said.
Mashile said there were ways of using 20MHz of spectrum efficiently, and operators just wanted as much as they could get simply to deprive other companies of that resource.
The unwelcome licensing criteria were set out after Icasa distilled a wide range of comments from the industry. It has repeatedly said the conditions are final, but has called for another round of comments.
Mashile said he would be happy to see companies build their own network infrastructure, as long as they were aware of the risks. " We will open up for whoever wants to burn his money in this market - it's up to them to take on the big guys and live with the consequences."
THE telecommunications sector is becoming a new gold rush where large white-owned companies pocket the wealth and leave nothing for the masses, says the chairman of the Independent Communications Authority of SA (Icasa).
The lowest rungs of society would be alienated if the regulator did not actively demand a greater role for black people in the industry, said chairman Paris Mashile. That is why Icasa would insist new licences for scarce spectrum went to companies that were 51% black-owned.
Speaking during a conference staged by Internet Solutions this week, Mashile defended Icasa's decision to make empowerment a more important criterion than skills or cash to build a telecoms network,
Demanding 51% black ownership "isn't outside the law" and the aim was to empower black people to start their own businesses rather than just take a stake in a successful white operator. White firms that sold equity to black people without relinquishing control were merely performing "empowerment gimmicks", he said.
The high black profile is a condition for six new licences to use a high-speed wireless technology called WiMax, and each licence will allocate 20MHz of spectrum. That decision has also angered the industry, with many voice and data carriers saying 30MHz is needed to build a cost-effective network.
Telkom's chief technical officer Thami Msimango said giving licences to one-man shows would not benefit the country. "People who can afford to roll out infrastructure should be given that spectrum," he said.
Vodacom CEO Alan Knott-Craig said true empowerment would be achieved by giving everyone access to affordable telephony and internet services, not by favouring operators owned by the previously disadvantaged. Vodacom could extend its network for two-thirds of the current cost if it had more spectrum, and it would pass the savings on to consumers by cutting the cost of calls, he said.
Mashile said there were ways of using 20MHz of spectrum efficiently, and operators just wanted as much as they could get simply to deprive other companies of that resource.
The unwelcome licensing criteria were set out after Icasa distilled a wide range of comments from the industry. It has repeatedly said the conditions are final, but has called for another round of comments.
Mashile said he would be happy to see companies build their own network infrastructure, as long as they were aware of the risks. " We will open up for whoever wants to burn his money in this market - it's up to them to take on the big guys and live with the consequences."
Nigeria - infrastructure sharing
Nigeria: NCC Advocates Sharing of Telecoms Infrastructure
The Nigerian Communications Commission (NCC) has advised telecommunication service providers to consider Co-location Infrastructure Project (CIP) which will allow sharing of infrastructure to make the services more efficient.
At the stakeholders forum on the project in Abuja yesterday, the NCC Executive Vice Chairman, Engineer Ernest Ndukwe, said the project will facilitate the construction of passive (shareable) infrastructures such as masts or towers, land, perimeter fence, generator, storage tank for fuel, shelter, among others.
He said the project will serve the purpose of extending telecommunications and ICT services to underserved communities in the country.
He said the NCC will use CIP project, which is part of the Universal Service Provision Fund and Accelerated Mobile Phone Expansion Project, to provide subsidy for the construction of Base Transceiver Station (BTS) in remote parts of the country.
He said the USPF deemed it necessary to also provide subsidy to support the provision of co-location infrastructures in unserved/underserved communities so as to stimulate competition and reduce operating cost of ICT service.
"CIP project will also reduce or eliminate the need for each service provider to construct and own individual mast, generators and reduce the usual concerns about associated impact on the environment," he said.
He added that the idea will assist the operators to enhance their network performance, saying that the benefits can also reach subscribers in term of better coverage and tariff reduction.
He said the USPF shall be guided by the objective of covering all the states of the federation in implementing the CIP.
The Nigerian Communications Commission (NCC) has advised telecommunication service providers to consider Co-location Infrastructure Project (CIP) which will allow sharing of infrastructure to make the services more efficient.
At the stakeholders forum on the project in Abuja yesterday, the NCC Executive Vice Chairman, Engineer Ernest Ndukwe, said the project will facilitate the construction of passive (shareable) infrastructures such as masts or towers, land, perimeter fence, generator, storage tank for fuel, shelter, among others.
He said the project will serve the purpose of extending telecommunications and ICT services to underserved communities in the country.
He said the NCC will use CIP project, which is part of the Universal Service Provision Fund and Accelerated Mobile Phone Expansion Project, to provide subsidy for the construction of Base Transceiver Station (BTS) in remote parts of the country.
He said the USPF deemed it necessary to also provide subsidy to support the provision of co-location infrastructures in unserved/underserved communities so as to stimulate competition and reduce operating cost of ICT service.
"CIP project will also reduce or eliminate the need for each service provider to construct and own individual mast, generators and reduce the usual concerns about associated impact on the environment," he said.
He added that the idea will assist the operators to enhance their network performance, saying that the benefits can also reach subscribers in term of better coverage and tariff reduction.
He said the USPF shall be guided by the objective of covering all the states of the federation in implementing the CIP.
South Africa - Vodacom and the Competition Tribunal
South Africa: Watchdog Acts on Vodacom 'Lies'
A FORMER Vodacom executive is facing charges of perjury after allegedly lying to the Competition Commission.
The commission has laid a complaint under the Competition Act for knowingly providing false information. This carries a maximum punishment of up to six months in jail, a R2000 fine, or both. The case concerns failure to provide documents the commission requested when Vodacom sought approval for its R206m acquisition of Global Telematics and Glocell Service Provider Company.
Neither Vodacom nor the commission named the person facing the charges.
It was clearly a Vodacom strategy to withhold the documents, commission head of mergers and acquisitions Tembinkosi Bonakele said yesterday.
"It was discussed at board level so Vodacom is responsible for this, but we went for the individual who signed on behalf of the company saying that the information was true and correct. So technically she becomes the fall guy," he said.
"We have looked carefully, and this is the only person we think we have the grounds to go after."
The commission asked Vodacom to submit all documents relevant to the deal, including minutes of a board meeting, but it was led to believe those documents did not exist. When the Competition Tribunal ordered Vodacom to provide the documents, they were submitted.
The tribunal said an affidavit by Vodacom legal affairs executive Eleni Christodoulou said the company had not submitted a report to the Securities Regulation Panel about the deal so it could not provide such a document to the commission.
What she did not explain was why she had not provided other relevant documents, including minutes prepared for the directors.
"While her affidavit may be technically true insofar as no document submitted to the Securities Regulation Panel has been omitted, Vodacom has not complied with the act in submitting all the other relevant documentation required," the tribunal said. Christodoulou left Vodacom late last year.
The commission believes the minutes were hidden because they showed the real reasons why Vodacom wanted to buy out the resellers, rather than a dressed-up version that Vodacom presented at the hearings.
After reading the minutes, the commission saw that it wanted to eliminate competition and improve its own profit margins. Yet in the documents it voluntarily submitted to win approval it claimed the move was designed to consolidate its delivery channel to provide a better service to customers.
"It is clear from Vodacom's documents that the transaction was intended to take out a company that was providing competition and threatening its margins.
"Accordingly, the commission believes that grounds existed for referring this matter to the criminal prosecution authorities for charges," the commission said yesterday.
Vodacom chief communications officer Dot Field said: "We've referred this matter to our attorneys for their immediate attention. Due to the seriousness of this matter, Vodacom cannot comment further."
When the tribunal approved the deal in March, its chairman, David Lewis, blasted Vodacom for lying and deliberately withholding information. He also took "an exceedingly dim view of the contempt Vodacom's conduct reveals for the regulatory process," which was a "flagrant contempt for the law".
At the time, Vodacom SA MD Shameel Joosub said: "We unequivocally deny we deliberately withheld information from either the commission or the tribunal, or made any attempt to mislead them. Whilst we must accept responsibility for submitting a document late, the document was nevertheless voluntarily submitted after Vodacom itself had discovered it."
A FORMER Vodacom executive is facing charges of perjury after allegedly lying to the Competition Commission.
The commission has laid a complaint under the Competition Act for knowingly providing false information. This carries a maximum punishment of up to six months in jail, a R2000 fine, or both. The case concerns failure to provide documents the commission requested when Vodacom sought approval for its R206m acquisition of Global Telematics and Glocell Service Provider Company.
Neither Vodacom nor the commission named the person facing the charges.
It was clearly a Vodacom strategy to withhold the documents, commission head of mergers and acquisitions Tembinkosi Bonakele said yesterday.
"It was discussed at board level so Vodacom is responsible for this, but we went for the individual who signed on behalf of the company saying that the information was true and correct. So technically she becomes the fall guy," he said.
"We have looked carefully, and this is the only person we think we have the grounds to go after."
The commission asked Vodacom to submit all documents relevant to the deal, including minutes of a board meeting, but it was led to believe those documents did not exist. When the Competition Tribunal ordered Vodacom to provide the documents, they were submitted.
The tribunal said an affidavit by Vodacom legal affairs executive Eleni Christodoulou said the company had not submitted a report to the Securities Regulation Panel about the deal so it could not provide such a document to the commission.
What she did not explain was why she had not provided other relevant documents, including minutes prepared for the directors.
"While her affidavit may be technically true insofar as no document submitted to the Securities Regulation Panel has been omitted, Vodacom has not complied with the act in submitting all the other relevant documentation required," the tribunal said. Christodoulou left Vodacom late last year.
The commission believes the minutes were hidden because they showed the real reasons why Vodacom wanted to buy out the resellers, rather than a dressed-up version that Vodacom presented at the hearings.
After reading the minutes, the commission saw that it wanted to eliminate competition and improve its own profit margins. Yet in the documents it voluntarily submitted to win approval it claimed the move was designed to consolidate its delivery channel to provide a better service to customers.
"It is clear from Vodacom's documents that the transaction was intended to take out a company that was providing competition and threatening its margins.
"Accordingly, the commission believes that grounds existed for referring this matter to the criminal prosecution authorities for charges," the commission said yesterday.
Vodacom chief communications officer Dot Field said: "We've referred this matter to our attorneys for their immediate attention. Due to the seriousness of this matter, Vodacom cannot comment further."
When the tribunal approved the deal in March, its chairman, David Lewis, blasted Vodacom for lying and deliberately withholding information. He also took "an exceedingly dim view of the contempt Vodacom's conduct reveals for the regulatory process," which was a "flagrant contempt for the law".
At the time, Vodacom SA MD Shameel Joosub said: "We unequivocally deny we deliberately withheld information from either the commission or the tribunal, or made any attempt to mislead them. Whilst we must accept responsibility for submitting a document late, the document was nevertheless voluntarily submitted after Vodacom itself had discovered it."
Roadmap for unified communications
IT Road Map of Unified Communications Until 2013 — Creating “New Experiences” in Communication
see also illustration
Nomura Research Institute, Ltd. (NRI: Tokyo; Akihisa Fujinuma, Chairman and President, CEO & COO) announces an IT Road Map* forecasting developments of Unified Communications until 2013. Unified Communications refers to software technology that unifies complicated, diverse communication media into a single system, while making the best use of the advantages of each system. This technology enables seamless and efficient use of these media.
Today, business activities employ a variety of communication media that are free from time and place restrictions. These include mobile phones, electronic mail, telephone software for PCs, web conferencing and instant messaging. However, because these tools are often used as separate products and in different ways, a complicated communication environment is often created within a company.
In the future, in linkage with IP contact centers and business applications for fields such as distribution and finance, Unified Communications technology will enable “intelligent routing” to automatically connect the most suitable persons at optimal timing via optimal communication media. In increasingly diversified business environments, Unified Communications offer ample potentialities for creating new experiences (value) and largely changing work style.
Until 2008: Era of single-function communication for each usage purpose
New communication styles that are not bound by time and place will gain recognition in business activities such as web conferencing that integrates voice, video and data, instant messaging that offers a higher real-time attribute than electronic mail and enables conversation based on typed text, telephone software for PCs that enables use of a company’s extension numbers even from business trip destinations, and the presence function that enables checking the status of the person with whom one wants to contact (whether at the desk, outside the office, during a meeting, and so on). However, because each means of communication is not fully integrated, companies will simply introduce software that only meets their needs and usage purposes.
2009 to 2011: Dawning phase of Unified Communications
Leading vendors will begin to evolve Unified Communications on a full-scale basis in the Japanese market, which will lead to the start of the unification and/or linkage of communication media such as web conferencing, instant messaging, telephone software and presence settings. In particular, users will experience new, unprecedented value in a style of communication that enables them to check the status of a person with whom they want to contact and to use the optimal communication medium. However, Unified Communications during this phase will be centered on PCs, and will pose some inconveniences such as “restricting use to locations where PCs are installed,” “requiring peripheral devices such as headsets,” and “failing to offer conversations with a high sense of realism.” Accordingly, only those companies that have specific needs will introduce this technology.
In and after 2012: Spreading phase of Unified Communications
During this phase, Unified Communications will be widely used for business activities. A major factor behind such expected widespread use is the increasing trend now seen in Europe and the US towards the use of mobile phones equipped with PC software. If mobile phones that everyone always has at hand can be used as part of Unified Communications, seamless and efficient communication will be enabled at any time and anywhere, largely changing work style.
Furthermore, progress in technology will bring about two new types of experience (value). The one value relates to the linkage between IP contact centers, business applications for fields such as distribution and finance and Unified Communications. Such linkage will enable intelligent routing to connect the most suitable persons at optimal timing via optimal communication media based on customer information (purchase history, contact history, etc.) and alert information (inadequate inventory, emergencies, etc.). While communication is now most often originated by a person, it will become possible for a system to originate communication. The other value is the spread of communication offering a high sense of presence nearly equivalent to face-to-face conversation by using large-screen displays. During this phase, the performance of wired and wireless connections will be further improved as represented by NGN (next generation networking) and WiMAX (worldwide interoperability for microwave access), and prices of large-screen displays will be reduced. These factors will promote the penetration of such communication.
IT Road Map: The IT road map is designed to provide NRI’s forecast of trends in information technology over the next five years with the aim of supporting companies in making decisions on IT strategies. NRI’s Information Technology Research Department publishes this report semiannually.
see also illustration
Nomura Research Institute, Ltd. (NRI: Tokyo; Akihisa Fujinuma, Chairman and President, CEO & COO) announces an IT Road Map* forecasting developments of Unified Communications until 2013. Unified Communications refers to software technology that unifies complicated, diverse communication media into a single system, while making the best use of the advantages of each system. This technology enables seamless and efficient use of these media.
Today, business activities employ a variety of communication media that are free from time and place restrictions. These include mobile phones, electronic mail, telephone software for PCs, web conferencing and instant messaging. However, because these tools are often used as separate products and in different ways, a complicated communication environment is often created within a company.
In the future, in linkage with IP contact centers and business applications for fields such as distribution and finance, Unified Communications technology will enable “intelligent routing” to automatically connect the most suitable persons at optimal timing via optimal communication media. In increasingly diversified business environments, Unified Communications offer ample potentialities for creating new experiences (value) and largely changing work style.
Until 2008: Era of single-function communication for each usage purpose
New communication styles that are not bound by time and place will gain recognition in business activities such as web conferencing that integrates voice, video and data, instant messaging that offers a higher real-time attribute than electronic mail and enables conversation based on typed text, telephone software for PCs that enables use of a company’s extension numbers even from business trip destinations, and the presence function that enables checking the status of the person with whom one wants to contact (whether at the desk, outside the office, during a meeting, and so on). However, because each means of communication is not fully integrated, companies will simply introduce software that only meets their needs and usage purposes.
2009 to 2011: Dawning phase of Unified Communications
Leading vendors will begin to evolve Unified Communications on a full-scale basis in the Japanese market, which will lead to the start of the unification and/or linkage of communication media such as web conferencing, instant messaging, telephone software and presence settings. In particular, users will experience new, unprecedented value in a style of communication that enables them to check the status of a person with whom they want to contact and to use the optimal communication medium. However, Unified Communications during this phase will be centered on PCs, and will pose some inconveniences such as “restricting use to locations where PCs are installed,” “requiring peripheral devices such as headsets,” and “failing to offer conversations with a high sense of realism.” Accordingly, only those companies that have specific needs will introduce this technology.
In and after 2012: Spreading phase of Unified Communications
During this phase, Unified Communications will be widely used for business activities. A major factor behind such expected widespread use is the increasing trend now seen in Europe and the US towards the use of mobile phones equipped with PC software. If mobile phones that everyone always has at hand can be used as part of Unified Communications, seamless and efficient communication will be enabled at any time and anywhere, largely changing work style.
Furthermore, progress in technology will bring about two new types of experience (value). The one value relates to the linkage between IP contact centers, business applications for fields such as distribution and finance and Unified Communications. Such linkage will enable intelligent routing to connect the most suitable persons at optimal timing via optimal communication media based on customer information (purchase history, contact history, etc.) and alert information (inadequate inventory, emergencies, etc.). While communication is now most often originated by a person, it will become possible for a system to originate communication. The other value is the spread of communication offering a high sense of presence nearly equivalent to face-to-face conversation by using large-screen displays. During this phase, the performance of wired and wireless connections will be further improved as represented by NGN (next generation networking) and WiMAX (worldwide interoperability for microwave access), and prices of large-screen displays will be reduced. These factors will promote the penetration of such communication.
IT Road Map: The IT road map is designed to provide NRI’s forecast of trends in information technology over the next five years with the aim of supporting companies in making decisions on IT strategies. NRI’s Information Technology Research Department publishes this report semiannually.
Saturday, July 26, 2008
TeliaSonera - looking towards Asia
TeliaSonera looks for Asian opportunities
TeliaSonera can remain independent and will pursue Asian acquisitions to generate growth, according to Lars Nyberg, chief executive of the Nordic telecoms company.
Mr Nyberg, in an interview with the Financial Times, gave a bullish outlook for TeliaSonera following its rejection last month of a $41bn takeover bid by France Telecom.
TeliaSonera released second-quarter results yesterday that were in line with the market's expectations. It reported sales of SKr25.3bn ($4.2bn), up 5.7 per cent, and net income of SKr4.1bn, up 7.8 per cent. Shares in TeliaSonera closed up 1.4 per cent at SKr43.3.
The results underlined how the company is increasingly dependent on growth from its Asian investments to offset sluggish performance at its fixed-line phone operations in the Nordic region.
In the second quarter, and for the first time, more than half TeliaSonera's operating income came from its mobile businesses in Kazakhstan, Azerbaijan, Uzbekistan, Tajikistan, Georgia and Moldova, plus its Turkish and Russian investments.
Mr Nyberg, who became chief executive almost a year ago, said TeliaSonera should seek further Asian expansion if possible. "I have been very clear from day one that I like emerging markets," he said, adding he was looking for markets of 10m-20m people where less than 20 per cent of the population owned a mobile phone.
However, TeliaSonera has found it difficult to find deals at the right price. Mr Nyberg cancelled the company's extraordinary dividend programme at the start of 2008 to make room for acquisitions, but has yet to make any.
The company is relatively unleveraged, and some industry analysts are calling on it to improve shareholder returns. The company currently has a dividend pay-out ratio of 40 per cent of net income, which is low by comparison with many other European telecoms companies.
"If we don't need the money in the short term then it should be released one way or the other for shareholders," said Mr Nyberg, adding it was too early to review dividend policy.
Mr Nyberg has been trying to forge a new strategy for the company's investments at Turkcell, Turkey's largest mobile operator, and Megafon, Russia's third-largest wireless company.
TeliaSonera has minority stakes in both mobile businesses, but they have suffered from shareholder disputes involving Alfa group, the Russian conglomerate.
Mr Nyberg admitted it was probably not realistic for TeliaSonera to secure control of Turkcell and Megafon, but expressed hope it might become the majority shareholder in one.
Mr Nyberg is focused on boosting the profitability of TeliaSonera's Nordic fixed- line operations through cost-cutting.
In the second quarter, the operations had a declining profit margin at the level of earnings before interest, tax, depreciation and amortisation.
TeliaSonera expects to make SKr1.5bn of savings this year and SKr3.5bn next year, partly by making 2,900 workers redundant in Sweden and Finland.
Mr Nyberg admitted the toughest negotiations were still ahead after management last month threw down the gauntlet by cancelling an existing agreement with the company's powerful Swedish unions.
"The fundamental question is who runs the company?" said Mr Nyberg. "There is a discussion in this company about who runs the company."
If the Nordic cost base is cut and TeliaSonera builds on its Asian investments, Mr Nyberg said the company's future would be assured, whether it remains independent or not.
"If this industry really started to consolidate I'm sure we will be part of this discussion as I think we are a very attractive asset."
TeliaSonera can remain independent and will pursue Asian acquisitions to generate growth, according to Lars Nyberg, chief executive of the Nordic telecoms company.
Mr Nyberg, in an interview with the Financial Times, gave a bullish outlook for TeliaSonera following its rejection last month of a $41bn takeover bid by France Telecom.
TeliaSonera released second-quarter results yesterday that were in line with the market's expectations. It reported sales of SKr25.3bn ($4.2bn), up 5.7 per cent, and net income of SKr4.1bn, up 7.8 per cent. Shares in TeliaSonera closed up 1.4 per cent at SKr43.3.
The results underlined how the company is increasingly dependent on growth from its Asian investments to offset sluggish performance at its fixed-line phone operations in the Nordic region.
In the second quarter, and for the first time, more than half TeliaSonera's operating income came from its mobile businesses in Kazakhstan, Azerbaijan, Uzbekistan, Tajikistan, Georgia and Moldova, plus its Turkish and Russian investments.
Mr Nyberg, who became chief executive almost a year ago, said TeliaSonera should seek further Asian expansion if possible. "I have been very clear from day one that I like emerging markets," he said, adding he was looking for markets of 10m-20m people where less than 20 per cent of the population owned a mobile phone.
However, TeliaSonera has found it difficult to find deals at the right price. Mr Nyberg cancelled the company's extraordinary dividend programme at the start of 2008 to make room for acquisitions, but has yet to make any.
The company is relatively unleveraged, and some industry analysts are calling on it to improve shareholder returns. The company currently has a dividend pay-out ratio of 40 per cent of net income, which is low by comparison with many other European telecoms companies.
"If we don't need the money in the short term then it should be released one way or the other for shareholders," said Mr Nyberg, adding it was too early to review dividend policy.
Mr Nyberg has been trying to forge a new strategy for the company's investments at Turkcell, Turkey's largest mobile operator, and Megafon, Russia's third-largest wireless company.
TeliaSonera has minority stakes in both mobile businesses, but they have suffered from shareholder disputes involving Alfa group, the Russian conglomerate.
Mr Nyberg admitted it was probably not realistic for TeliaSonera to secure control of Turkcell and Megafon, but expressed hope it might become the majority shareholder in one.
Mr Nyberg is focused on boosting the profitability of TeliaSonera's Nordic fixed- line operations through cost-cutting.
In the second quarter, the operations had a declining profit margin at the level of earnings before interest, tax, depreciation and amortisation.
TeliaSonera expects to make SKr1.5bn of savings this year and SKr3.5bn next year, partly by making 2,900 workers redundant in Sweden and Finland.
Mr Nyberg admitted the toughest negotiations were still ahead after management last month threw down the gauntlet by cancelling an existing agreement with the company's powerful Swedish unions.
"The fundamental question is who runs the company?" said Mr Nyberg. "There is a discussion in this company about who runs the company."
If the Nordic cost base is cut and TeliaSonera builds on its Asian investments, Mr Nyberg said the company's future would be assured, whether it remains independent or not.
"If this industry really started to consolidate I'm sure we will be part of this discussion as I think we are a very attractive asset."
India - towards 300 million mobile "connections"
India Adds 9 Million New Mobile Connections
India added close to 9 million new mobile connections in June, taking the total number of mobile subscribers in the country to 286.86 million, the Telecom Regulatory Authority of India (TRAI) said on Friday.
The country added 8.62 million new subscribers in May.
The country's mobile market is expected to grow faster as mobile handset vendors and service providers target relatively untapped rural markets with low-cost handsets backed by micro-financing and low tariff plans.
Cellular services revenue in India is projected to grow at a compound annual growth rate (CAGR) of 18 percent between this year and 2012 to cross US$37 billion, Gartner said this month. The growth will come from a rapidly proliferating rural market, low handset costs, and lower tariffs, according to Gartner.
Growth in wireless subscribers may be coming at the expense of fixed lines. In the wire-line segment, the subscriber base has decreased to 38.92 million in June, as against 39.05 million subscribers in the previous month, according to TRAI.
The Indian government is expected to announce a 3G policy soon, though it has not indicated a specific date. The 3G policy has been delayed for a number of reasons, including a disagreement between the government and TRAI on whether the auction of 3G spectrum should be open to multinational companies.
India added close to 9 million new mobile connections in June, taking the total number of mobile subscribers in the country to 286.86 million, the Telecom Regulatory Authority of India (TRAI) said on Friday.
The country added 8.62 million new subscribers in May.
The country's mobile market is expected to grow faster as mobile handset vendors and service providers target relatively untapped rural markets with low-cost handsets backed by micro-financing and low tariff plans.
Cellular services revenue in India is projected to grow at a compound annual growth rate (CAGR) of 18 percent between this year and 2012 to cross US$37 billion, Gartner said this month. The growth will come from a rapidly proliferating rural market, low handset costs, and lower tariffs, according to Gartner.
Growth in wireless subscribers may be coming at the expense of fixed lines. In the wire-line segment, the subscriber base has decreased to 38.92 million in June, as against 39.05 million subscribers in the previous month, according to TRAI.
The Indian government is expected to announce a 3G policy soon, though it has not indicated a specific date. The 3G policy has been delayed for a number of reasons, including a disagreement between the government and TRAI on whether the auction of 3G spectrum should be open to multinational companies.
Uganda - mobile competition
Telecom Competition in Uganda Leads to Free Airtime
The competition in Uganda's telecom industry is getting hotter by the day as players jostle to woo and keep subscribers with free calling.
All four players in Uganda's market -- Celtel, MTN, Uganda Telecom and Warid Telecom -- are running campaigns with the theme of free airtime, something that has only been a mirage until now.
Abu Dhabi's Warid Telecom was the first to stir things up just a few months after its Ugandan launch in March. The newcomer's promotion, dubbed "Talk for Free," allows customers to do just that after paying for the first two minutes of a call.
The promotion has enabled the company to pick up subscribers by the thousands, sending the competition back to the drawing board. Before Warid's entry onto the market, the competing telecoms could only fight each other by reducing call tariffs.
MTN was the first to follow Warid's lead with the introduction of "MTN Cash Back," whereby prepaid fixed-line subscribers received a rebate for 10 percent of the value of the airtime they purchased.
Meanwhile, Uganda Telecom's "Everybody Can Talk" campaign offers daily electronic drawings for free calls.
Now Warid is upping the ante once again with its "Mega Bonus" promotion, which allows customers to make free calls for the 24-hour period following the purchase of airtime.
The 30-day promotion will not interfere with the quality of the network, given its superior nature, assured Warid CEO Zul Javaid at the promotion's launch July 16.
He added that the company has amassed a total of 650,000 customers in Uganda over the past five months.
The competition in Uganda's telecom industry is getting hotter by the day as players jostle to woo and keep subscribers with free calling.
All four players in Uganda's market -- Celtel, MTN, Uganda Telecom and Warid Telecom -- are running campaigns with the theme of free airtime, something that has only been a mirage until now.
Abu Dhabi's Warid Telecom was the first to stir things up just a few months after its Ugandan launch in March. The newcomer's promotion, dubbed "Talk for Free," allows customers to do just that after paying for the first two minutes of a call.
The promotion has enabled the company to pick up subscribers by the thousands, sending the competition back to the drawing board. Before Warid's entry onto the market, the competing telecoms could only fight each other by reducing call tariffs.
MTN was the first to follow Warid's lead with the introduction of "MTN Cash Back," whereby prepaid fixed-line subscribers received a rebate for 10 percent of the value of the airtime they purchased.
Meanwhile, Uganda Telecom's "Everybody Can Talk" campaign offers daily electronic drawings for free calls.
Now Warid is upping the ante once again with its "Mega Bonus" promotion, which allows customers to make free calls for the 24-hour period following the purchase of airtime.
The 30-day promotion will not interfere with the quality of the network, given its superior nature, assured Warid CEO Zul Javaid at the promotion's launch July 16.
He added that the company has amassed a total of 650,000 customers in Uganda over the past five months.
China - 100 million bloggers
CNNIC: Over 100 Million Bloggers in China
see also report in chinese
CNNIC released its semi-annual China’s Internet development report today. According to the report, by June 2008, there are 253 million Internet users in China, making China the World’s largest Internet market by users. CNNIC said Internet users with broadband access has amounted to 214 million, and over 73 million users have used mobile handsets to go online in last six months. Yes, the number of China’s Internet users is huge, but the value of China’s Internet market is still far below that of US Internet market.
Comparing with last report by CNNIC, the increase of number of new Internet users is slowing down with 43 million new users added in first half of 2008 vs. 48 million in second half of 2007. On the other hand, new mobile Internet users increased significantly from 50.4 million to 73 million.
CNNIC said that over 107 million users in China own blogs/spaces, doubled in six months. By the end of 2007, it was reported that there were about 49 million users having blogs/space. The report does not provide a definition of blog/space. I guess the statistics includes users in SNS as well. Since many users write posts in SNS, for example, users will write articles in 51.com, it will be counted as a blogger as well. According to the report, over 70 million users updated their blogs/spaces in last six months.
Online music is still the most popular services with 84.5% usage rate. Notably, IM usage rate decreased from 81.4% in January 2008 to 77.2% while email usage rate increased from 56.5% to 62.6%. About 81.5% people read news online, a big increase from 73.6% in half a year ago.
The report said that 38.8% of Internet users in China, or about 98 million users, visited BBS/online forum in last six month, the number is much lower than I expected. BBS/online forum is one of the most important service in China’s Internet, there should be more users of BBS, I think. About 23.4% or 59 million users have posted articles in BBS/online forum in last six months.
About 25%, or 63.3 million users go shopping online, an increase from 46.4 million in half a year ago, and 22.5% or 57 million users made online payment, an increase of 23.8 million users.
see also report in chinese
CNNIC released its semi-annual China’s Internet development report today. According to the report, by June 2008, there are 253 million Internet users in China, making China the World’s largest Internet market by users. CNNIC said Internet users with broadband access has amounted to 214 million, and over 73 million users have used mobile handsets to go online in last six months. Yes, the number of China’s Internet users is huge, but the value of China’s Internet market is still far below that of US Internet market.
Comparing with last report by CNNIC, the increase of number of new Internet users is slowing down with 43 million new users added in first half of 2008 vs. 48 million in second half of 2007. On the other hand, new mobile Internet users increased significantly from 50.4 million to 73 million.
CNNIC said that over 107 million users in China own blogs/spaces, doubled in six months. By the end of 2007, it was reported that there were about 49 million users having blogs/space. The report does not provide a definition of blog/space. I guess the statistics includes users in SNS as well. Since many users write posts in SNS, for example, users will write articles in 51.com, it will be counted as a blogger as well. According to the report, over 70 million users updated their blogs/spaces in last six months.
Online music is still the most popular services with 84.5% usage rate. Notably, IM usage rate decreased from 81.4% in January 2008 to 77.2% while email usage rate increased from 56.5% to 62.6%. About 81.5% people read news online, a big increase from 73.6% in half a year ago.
The report said that 38.8% of Internet users in China, or about 98 million users, visited BBS/online forum in last six month, the number is much lower than I expected. BBS/online forum is one of the most important service in China’s Internet, there should be more users of BBS, I think. About 23.4% or 59 million users have posted articles in BBS/online forum in last six months.
About 25%, or 63.3 million users go shopping online, an increase from 46.4 million in half a year ago, and 22.5% or 57 million users made online payment, an increase of 23.8 million users.
Europe - Next generation broadband
Europe’s Next-generation Broadband
An enormous research effort by Europe’s leading broadband players has helped accelerate dramatically the rollout of next-generation broadband services reaching speeds in the 10s of Mbit/s in many European countries. That is just the start.
The deployment of broadband services in the 10s of megabits per second (Mbit/s) is accelerating across the continent, thanks to the research efforts of Europe’s main broadband players. Even 100Mbit/s has become economically feasible and deployments have started.
Two years ago Europe’s leading telecoms, ISP companies, and its top technology vendors and research institutes finished their work on the first phase of the MUSE project. That effort led to a new set of standard specifications for broadband technology branded as the Global System for Broadband (GSB).
“The MUSE project did not start the push for next-generation broadband technologies and services,” notes MUSE project coordinator, Peter Vetter. “Many companies and institutes were working on it already. But MUSE certainly helped to establish a consensus on what it should look like and what it consisted of, and that accelerated the deployment of a new architecture and better access technologies.”
Risk-free roadmap?
By helping to establish standards, and by defining a roadmap that gained industry consensus, the project limited the risks faced by the main stakeholders, and boosted stakeholder confidence. Increased broadband investment is the result.
Already in Belgium, the Netherlands, the UK, Germany and other countries, providers are deploying services with vDSL (Very High Speed Digital Subscriber Line), an access technology that offers up to 100Mbit/s.
“Our project responded to some of the obstacles facing Broadband4All, a major strategic thrust of European policy under the Sixth Framework Programme. There are many elements needed to make Broadband4All a reality, so it took a large integrated approach to tackle all the technical issues,” Vetter reveals.
EU-funded MUSE, which stands for Multi-Service Access Everywhere, tackled those issues. It was a huge project. It had €60 million, half of which was funded by the European Commission, and a research agenda that looked into every aspect of broadband access technology.
Broadband access architectures, access and edge nodes, dsl, fibre optic, fixed wireless, back-end integration, interconnection between public networks and home networks, and generic test suites, are just a few of the issues that the MUSE team looked at.
“There is often misunderstanding; people think we were just looking at improving the access bit-rate, but that aspect of the project accounted for only 20% of our budget. The main challenge was to enable multi-service delivery through an integrated end-to-end approach,” Vetter explains.
Complementary phases
The MUSE project was organised into two, complementary phases of two years each. Phase one focused on the technical architecture for next-generation broadband networks. This architecture was dubbed the Global System for Broadband (GSB) and it is this work that is responsible for the accelerated broadband deployments.
The second phase of the project (developed further in a follow-up story on 28 July: ‘Next-gen broadband at your service’) looked at upgrading this architecture with network intelligence to facilitate the support of fixed-mobile convergence, multimedia and IPTV, or television transmitted via the internet, among others.
While the second phase offered enhanced services and integration, the first phase tackled the fundamental network issues. It was a big job.
“There was an obvious technology already available to improve metro and access networks,” points out Vetter. “It was Ethernet, which was designed for IP networks and promised low cost because it was already widely used in data networks.”
Serious problems
But serious problems existed with the technology. Ethernet was designed for local area networks with trusted users and lacked security when used in a public network. Also the support of Quality of Service (QoS), which is essential to handling multiple services, like voice and video, as well as the internet, a combination of services often referred to as ‘Triple Play’.
“There were some fragments and different approaches out there, responding to some of these problems,” says Vetter. “But the real issue was to develop consensus around a complete solution.”
Thanks to good pre-standardisation studies and consensus building, MUSE made many contributions to the standards at the DSL forum, ETSI-TISPAN, Home Gateway Initiative, and ITU-T, the relevant official standards bodies.
This led to a set of specifications and standards for Ethernet-based metro, access, and home networks with enhanced quality of service, security and bandwidth. Altogether, the architecture is the GSB.
Though the most visible result of this work is the upgrades of DSL networks for Triple Play and their increased deployments, the generic architecture and platform technology apply to all of the main and emerging access technologies, like fixed wireless and optical fibre.
Just the beginning
“Eventually all networks, including cable networks, will evolve to optical fibre, that will be the standard physical technology. And it is already happening: fibre is deployed in France, Sweden and other countries. But in the meantime, the most widespread technologies, DSL and fixed wireless, can move to GSB.”
And this is just the beginning. The fundamental architecture is in place with MUSE phase I finished in February 2006. Now phase II has started with the intention of developing the enhanced services enabled by the GSB architecture.
But two years after completion of the first phase, its results are already responsible for faster, better broadband near you, sooner than anyone expected.
An enormous research effort by Europe’s leading broadband players has helped accelerate dramatically the rollout of next-generation broadband services reaching speeds in the 10s of Mbit/s in many European countries. That is just the start.
The deployment of broadband services in the 10s of megabits per second (Mbit/s) is accelerating across the continent, thanks to the research efforts of Europe’s main broadband players. Even 100Mbit/s has become economically feasible and deployments have started.
Two years ago Europe’s leading telecoms, ISP companies, and its top technology vendors and research institutes finished their work on the first phase of the MUSE project. That effort led to a new set of standard specifications for broadband technology branded as the Global System for Broadband (GSB).
“The MUSE project did not start the push for next-generation broadband technologies and services,” notes MUSE project coordinator, Peter Vetter. “Many companies and institutes were working on it already. But MUSE certainly helped to establish a consensus on what it should look like and what it consisted of, and that accelerated the deployment of a new architecture and better access technologies.”
Risk-free roadmap?
By helping to establish standards, and by defining a roadmap that gained industry consensus, the project limited the risks faced by the main stakeholders, and boosted stakeholder confidence. Increased broadband investment is the result.
Already in Belgium, the Netherlands, the UK, Germany and other countries, providers are deploying services with vDSL (Very High Speed Digital Subscriber Line), an access technology that offers up to 100Mbit/s.
“Our project responded to some of the obstacles facing Broadband4All, a major strategic thrust of European policy under the Sixth Framework Programme. There are many elements needed to make Broadband4All a reality, so it took a large integrated approach to tackle all the technical issues,” Vetter reveals.
EU-funded MUSE, which stands for Multi-Service Access Everywhere, tackled those issues. It was a huge project. It had €60 million, half of which was funded by the European Commission, and a research agenda that looked into every aspect of broadband access technology.
Broadband access architectures, access and edge nodes, dsl, fibre optic, fixed wireless, back-end integration, interconnection between public networks and home networks, and generic test suites, are just a few of the issues that the MUSE team looked at.
“There is often misunderstanding; people think we were just looking at improving the access bit-rate, but that aspect of the project accounted for only 20% of our budget. The main challenge was to enable multi-service delivery through an integrated end-to-end approach,” Vetter explains.
Complementary phases
The MUSE project was organised into two, complementary phases of two years each. Phase one focused on the technical architecture for next-generation broadband networks. This architecture was dubbed the Global System for Broadband (GSB) and it is this work that is responsible for the accelerated broadband deployments.
The second phase of the project (developed further in a follow-up story on 28 July: ‘Next-gen broadband at your service’) looked at upgrading this architecture with network intelligence to facilitate the support of fixed-mobile convergence, multimedia and IPTV, or television transmitted via the internet, among others.
While the second phase offered enhanced services and integration, the first phase tackled the fundamental network issues. It was a big job.
“There was an obvious technology already available to improve metro and access networks,” points out Vetter. “It was Ethernet, which was designed for IP networks and promised low cost because it was already widely used in data networks.”
Serious problems
But serious problems existed with the technology. Ethernet was designed for local area networks with trusted users and lacked security when used in a public network. Also the support of Quality of Service (QoS), which is essential to handling multiple services, like voice and video, as well as the internet, a combination of services often referred to as ‘Triple Play’.
“There were some fragments and different approaches out there, responding to some of these problems,” says Vetter. “But the real issue was to develop consensus around a complete solution.”
Thanks to good pre-standardisation studies and consensus building, MUSE made many contributions to the standards at the DSL forum, ETSI-TISPAN, Home Gateway Initiative, and ITU-T, the relevant official standards bodies.
This led to a set of specifications and standards for Ethernet-based metro, access, and home networks with enhanced quality of service, security and bandwidth. Altogether, the architecture is the GSB.
Though the most visible result of this work is the upgrades of DSL networks for Triple Play and their increased deployments, the generic architecture and platform technology apply to all of the main and emerging access technologies, like fixed wireless and optical fibre.
Just the beginning
“Eventually all networks, including cable networks, will evolve to optical fibre, that will be the standard physical technology. And it is already happening: fibre is deployed in France, Sweden and other countries. But in the meantime, the most widespread technologies, DSL and fixed wireless, can move to GSB.”
And this is just the beginning. The fundamental architecture is in place with MUSE phase I finished in February 2006. Now phase II has started with the intention of developing the enhanced services enabled by the GSB architecture.
But two years after completion of the first phase, its results are already responsible for faster, better broadband near you, sooner than anyone expected.
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