Telcordia Warns of Mobile Operator Marginalization07 April 2010 For mobile operators in many regions around the globe, data average revenue per user (ARPU) has quadrupled over the past six years and now is nearly half of voice ARPU.
But, as Telcordia warns, this trend distracts from serious, long-term challenges that those operators now face, including unsustainable all-you-can-eat pricing, dwindling profit margins, and the threat of "over-the-top" (OTT) video and content services from third parties.
The latest white paper from Telcordia identifies the major reasons why mobile broadband's popularity is both an opportunity and challenge for operators. Although data ARPU has increased steadily over the past several years, the burden on the network has grown at an even faster rate. The latter trend highlights why so many mobile operators are struggling with reputations for poor data quality of service (QoS), putting them at a severe competitive disadvantage, and increasing their customer service and network costs.
"The popularity of video and other third-party OTT services are breaking mobile broadband networks and business models because they siphon off revenue while adding to the network's workload," said Pat McCarthy, Vice President, Marketing, Service Delivery Solutions, Telcordia. "Operators should use this problem as an opportunity to transform themselves from dumb pipes into value-added players that capture revenue from OTT personalization services."
According to McCarthy, operators must distinguish between different types of traffic and properly prioritize them. For example, personalized end user services that generate revenue for an operator and its business partners should enjoy priority access to network resources, while zero-revenue OTT content should be managed with a tiered bandwidth management solution.
Policy-based bandwidth management and real-time charging provide operators and their customers with the necessary flexibility to keep costs from getting out of hand. As service providers connect with their customers with a personalized service, customers get the choice to choose which quality of service they want, just as with TV they choose standard broadcast or high definition. These tools can also enable operators to reduce data traffic during peak hours by offering discounts if customers choose to download songs and other bandwidth-intensive applications during off-peak periods.
"An operator's need to manage bandwidth is the first step toward realizing a profitable business, and they must build on that capability, forming active partnerships with end users and their choice of content providers, to get their fair share of the profits," added McCarthy.
Singapore Ponders Fourth 3G License07 April 2010 Singapore's telecoms regulator, the IDA is seeking views on awarding a possible fourth 3G license. The regulator previously offered four 3G licenses back in 2001, but at the time only the three incumbent operators chose to bid for the licenses.
"To meet mobile operators' increased demand for frequency spectrum so as to enhance their 3G system, and also to open the door for a fourth 3G operator, IDA would like to make available the remaining spectrum in the 3G Band," the regulator said in a consultation paper on its website, cited by The Business Times newspaper.
"Based on IDA's statistics, between September 2008 and September 2009, 3G subscriptions grew by over 25 per cent while High-Speed Packet Access (HSPA) subscriptions grew by 240 per cent," it said.
"To meet this growing consumption, the incumbent mobile operators will need to increase the capacity of their 3G networks. On the other hand, IDA cannot foreclose the possibility that the growing demand for 3G services may also present a viable business case for another operator to enter the 3G market in Singapore," the regulator added.
The market is however saturated with a population penetration level of around 147%. The Mobile World notes that the country ended last year with just over 6.86 million subscribers, of which around half are using 3G services.
Libya Plans to Sell 40% Stakes in Mobile Networks07 April 2010 Plans by the Libyan government to sell small stakes in the two state-owned mobile phone networks could be increased to nearly 40%, the head of the Libyan Stock Exchange told Bloomberg news. The government will offer 5 percent of Libyana and Al-Madar later this year in an initial public offering.
"This is just the first phase," he said. "It could reach 30 or 40 percent after some time."
Late last year, the Libyan government also announced details of tax breaks to make trading on the local stock exchange more appealing to investors.
Vodafone recently signed a non-equity cooperation deal with Libyan state owned mobile network, Almadar Aljadid (Al-Madar) to offer Vodafone branded services in the North African country.
According to figures from the Mobile World, Libyana is the dominant operator with 83% of the market, followed by Al Madar. The country has a population penetration level of 134%.
$18bn African investment - Can Middle East take the call? Written by Jamil Arif Thursday, 18 March 2010Since 2001, Investment into the African telecommunications sector has hit $18bn, however Africa has missed many opportunities to deploy cable infrastructure to the same extent as its competitive continents such as the Middle East and Asia.
Nevertheless leading authorities understand that such an infrastructure is vital for the continents development and they are planning to announce future moves into 4G at NGT Africa summit hosted by GDS international.
South Africa's international connectivity received a major boost last year with the launch of the Seacom cable, a high-bandwidth data link connecting Africa with India and Europe. Two further major cables, the West African Cable System and the East African Submarine Cable, are due to come into operation over the next two years.
Africa can offer competitive prices to emerging companies and has obvious mass growth potential. Recent infrastructure improvements throughout the African Markets have allowed the continent to rival the likes of Dubai. As a direct result of the NGT meetings regions such as East Africa are now the choice of many multinationals as a gateway to the Middle East and Africa.
"So far, technology has been a strong point for Dubai. But the arrival of the new submarine cables will allow Africa to run services at a reduced cost." Will Gary Austin, NGT Director
With so much growth potential and increased investments into the African telecoms market it comes as no surprise that the Middle East telecoms elite have been quick to announce their attendance at the NGT MENA summit to discuss how they plan to maintain their dominance within the market and provide the best services possible to outside investors.
Representatives confirmed to attend the NGT Discussions include Tony Shakib - VP Service provider Emerging Markets from CISCO and Knut Aasrud GM Communications Sector EMEA who will be on hand to share their thought leadership as technology innovators with Ghana Telecom (Vodafone Ghana) - Eric Valentine, Head of Technology Core Networks Orange Uganda - Phillipe Luxey, CEO MTN Group - Sifiso Dabengwa, COO Telkom SA - Charlotte Mokoena, CEO Vodacom Group - Vujani Jarana, Ex. Director Operations Virgin Mobile South Africa - Steve Bailey, CEO
"Cisco and SEACOM share a common goal to enable accessible broadband across Africa while lowering the cost of communication to spur growth within urban and rural communities. We're working with SEACOM to help transform Africa by outlining process change, building networks, and then providing the application services and expertise that support key services for citizens, such as education, healthcare, public safety, economic development, and national security. SEACOM will provide the catalyst for African consumers, business and government to realise the benefits of connectivity and collaboration across the globe." Courtesy of CISCO Systems Inc.
Sasatel
launches WiMAX network in capitalWednesday, 20 January 2010 Tanzanian mobile and broadband start-up Dovetel
Limited, trading as Sasatel, has launched a high speed wireless broadband
service in the capital Dar es Salaam based on WiMAX technology.
Local newspaper
The Citizen Reporter writes that at launch the company plans
to target large businesses as it carves out a niche for itself
in the country's fast-growing digital economy. Sasatel was
created in 2009 and has promised not to pass on the installation
costs to customers - in other words promising a 'low cost'
broadband option to end users. It says it can do this thanks
to its link to the Seacom fibre-optic cable which helps it
effectively to eliminate its WiMAX investment costs. Commenting
on the launch, Sasatel products director Thomas Andre Molvig
said: "After launching our EV-DO internet services for
small and medium-sized businesses in June last year, we [are
now launching] WiMAX internet access to cater for [the] internet
needs of large businesses and corporate customers," noted
yesterday in Dar es Salaam.
According to TeleGeography's GlobalComms Database, in June
2009 Sasatel became the seventh company to provide mobile
services in the country with the commercial launch of the
new network in the capital Dar es Salaam. At launch its new
network covered major parts of the city: the entire central
business district, the Kariakoo area, Ilala, Mikocheni, Mbagala
and Buguruni. Going forward, the operator said the new service
would be expanded to other parts of the country. 'In the next
phase of network expansion, the company will cover the rest
of Dar es Salaam and all other major cities in Tanzania,'
the statement read. 'Dovetel is committed to roll out a network
with full coverage in Dar es Salaam in the first phase followed
by Arusha and other regions in the second phase,' it added.
The Tanzania Communications Regulatory Authority (TCRA) licensed Dovetel in June 2008. It was founded by local entrepreneur Prof Peter Chitamu in 2005 with funding from the Infrastructure Fund which has a 65% stake in the business.
Latest
WiMax Launch in Tanzania Wednesday,20
January, 2010 Dovetel Limited, using its subsidiary Sasatel, has launched a WiMax network in Tanzanian capital Dar es Salaam. They plan to target large businesses and corporate customers after launching an EV-DO internet service in 2009.
Sasatel became the seventh company to provide mobile services in Tanzania that covers the major parts of its capital. The new service would be expanded to other parts of the country in the next phase of deployment. The Tanzania Communications Regulatory Authority granted WiMax licenses to Dovetel in June 2008. Professor Peter Chitamu founded the company in 2005 with funding from the Infrastructure Fund.
Photo Courtesy of Cesarp via Flickr
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Mobile-phone snooping fears
Tuesday,19 January, 2010 CONCERNS over mobile phone security have been growing
since a code book - which can crack the standard encryption
that protects most cellphone calls - was posted online
late last month.
This means that criminals, terrorists or anyone can download
the code book from the Internet, and use it to listen
in on mobile-phone calls or intercept text messages.
But Singapore seems safe from such attacks on mobile
communication for now.
The three telecommunication companies here - SingTel,
M1 and StarHub - said that they have had no known cases
of eavesdropping or message interception.
The Ministry of Home Affairs also said that police have
not received any reports of communications being intercepted
via this method.
The Infocomm Development Authority of Singapore (IDA) said
that 'the unauthorised interception of any radio communication
that is not meant for general reception is an offence'.
