TeleResearch Labs

3G auction okayed in Thailand

editor@teleresearchlabs.com (Editor) — Thu, 17 May 2012 11:55:22 GMT

Thailand moved closer to allocating 3G licences this week when the country’s regulator approved a draft auction framework for 2.1 GHz spectrum. This followed on the heels of research firm GfK releasing figures that reveal one in five mobile users in Thailand now owns a smartphone and postulated that the full commercialisation of 3G services in the country will result in an even greater uptake in the smartphone adoption rate. Thailand's main mobile carriers already offer limited 3G services through numerous agreements with State-run telcos TOT and CAT, but as of now only TOT holds spectrum in the 2.1 GHz band. On Tuesday a committee of the National Broadcasting and Telecommunications Commission (NBTC) okayed a draft of 2.1 GHz auction framework that removes certain conditions earlier attached to the spectrum and should make way for licences to be allocated in Q3 2012, the Bangkok Post reported. The committee's draft, which will be submitted to the full NBTC broad for approval in June, proposes that the 2.1 GHz spectrum in consideration be divided into nine 5 MHz slots. The paper further said that the committee scrapped a number of conditions imposed by the NBTC's predecessor, the National Telecommunication Commission. These include the N-1 condition, which required that the number of licences awarded in the auction would be one fewer than the number of bidders. The committee also did away with the requirement that winners would have to have been listed on the stock exchange of the country for three years prior to entering the auction.

Vietnamese Movitel commences services in Mozambique

editor@teleresearchlabs.com (Editor) — Thu, 17 May 2012 11:44:05 GMT

Mozambique's third mobile phone operator, a joint collaboration between Vietnam's Viettel and the ruling Frelimo party, started commercial operations of its services Tuesday, targeting the rural population.The new player, Movitel, has generated tremendous interest amongst consumers despite spending nothing on publicity before launching. Viettel, is 70-30% controlled the Vietnamese military and Frelimo through its holding company, SPI. What distinguishes Movitel from its competitors, the state-owned Mcel and Vodacom (of the Vodafone group), is that it has installed an independent fibre-optic network, enabling it to penetrate deep into rural areas often outside of normal cell phone range. The new company has been testing its services since Januarythis year, and some clients managed to lay their hands on its pre-paid cards before Tuesday's launch. Grapevine has spread readily, mainly the news that police officers, soldiers, students and teachers would receive free SIM cards.

T-Mobile USA to snip away more jobs, further ops shuffle

editor@teleresearchlabs.com (Editor) — Thu, 17 May 2012 11:42:52 GMT

T-Mobile USA will slash a further 900 jobs, its second innings of downsizing in two months, following 10 successive quarters of contract subscribers' losses, even as some of its competitors are increasing theirs. T-Mobile, currently having approximately 36,000 employees, announced in March it would slash 1,900 jobs and shut down seven call centres to help funding for a $4 billion network upgrade to 4G LTE. The telco lost 510,000 contract users last quarter, which it said was, to an extent, it not yet offering the Apple Inc. iPhone. The operator is still struggling to recover from the consequences of the termination of its deal to be bought by AT&T Inc. for $39 billion last year. T-Mobile stalled strategic for almost a year, while competitors bought new wireless spectrum, and the operator has said that it doesn't expect to be net positive on contract customer gains until at least 2013. "We are restructuring the organisation and optimising operations so that we can make critical decisions better and faster," T-Mobile said in an e-mailed statement. "By reducing our cost structure and streamlining operations, T-Mobile will be able to invest in areas where we anticipate the strongest return." A spokeswoman said the job cuts wouldn't affect the remaining 17 call centres, engineers, technicians or salespeople in T-Mobile retail locations.

Samsung snatches Nokia’s throne in Q1

editor@teleresearchlabs.com (Editor) — Thu, 17 May 2012 11:41:30 GMT

South Korean titan Samsung Electronics Co. took over the title of world's biggest mobile handset vendor from Finland’s Nokia Corp. in the first three months of 2012, underlining Nokia's consistent slide as it reels to keep up with spiraling competition. Research company Gartner, which counts handsets’ sales to end-users, instead of numbers shipped by manufacturers, said Samsung sold 86.6 million mobile devices in Q1 and had a worldwide market share of 20.7%, a rise from 16.1% for the same period last year. Nokia, by selling 83.2 million handsets, witnessed its global market share decline to 19.8% from 25.1% a year ago. The report is yet another harbinger of Nokia’s persistent punishment by scalding competition both at the high-end of the market from Apple Inc.'s iPhone, and from less expensive devices running Google Inc.'s Android software. Anshul Gupta, principal research analyst at Gartner, told Dow Jones Newswires Wednesday that the Finnish handset maker hasn’t yet made an impression with its new Lumia devices.

India – Airtel under scanner for suspected money laundering

editor@teleresearchlabs.com (Editor) — Wed, 16 May 2012 11:33:44 GMT

India is probing allegations of money laundering and violations of forex regulations against Bharti Airtel Ltd., Junior Finance Minister S.S. Palanimanickam told parliament on Tuesday. India’s Directorate of Enforcement is investigating the charges, Palanimanickam said. He refused to provide further details, saying the investigation is under process.The directorate, a unit of the federal finance ministry, examines violations of foreign-exchange rules and money hoarding. An Airtel spokesman couldn't be immediately reached for comment.

Severance denied to Yahoo ex-CEO

editor@teleresearchlabs.com (Editor) — Wed, 16 May 2012 11:31:45 GMT

Yahoo Inc. revealed Monday that Scott Thompson, its recently ousted chief executive, isn’t getting severance pay, though he will be entitled to keep what are commonly called as make-whole cash and stock the Yahoo had given him to make up for compensation left behind at his former company, eBay Inc. Thompson will go without all outstanding but not-fully-vested stock awards,"with no severance compensation," the US based Internet company said. Nonetheless, he would keep the right to a make-whole grant of restricted stock worth $6.5 million, which was earlier disclosed. Thompson, who took the hot seat at Yahoo in January this year after former CEO Carol Bartz was unceremoniously booted, had been entitled to a total of $22.5 million in potential stock awards, a $1.5 million cash bonus and a $1 million annual salary. Earlier May, Hedge fund Third Point LLC, which had been warring for more control of Yahoo, highlighted an erroneous detail in Thompson's academic record. A Yahoo filing wrongly stated Thompson possessed a bachelor's degree in accounting and computer science, whereas he had it only in accounting. After an internal review, the company Sunday replaced Thompson by interim CEO Ross Levinsohn, an executive who’s been with Yahoo since 2010. Aside, Third Point finished its proxy fight after its leader Dan Loeb and others were put on Yahoo board.

India’s ex-telco tainted minister Raja gets bail in spectrum scandal

editor@teleresearchlabs.com (Editor) — Wed, 16 May 2012 11:30:06 GMT

An Indian court Tuesday gave bail to erstwhile telecom minister Andimuthu Raja, who had been behind bars for the last 15 months for allegedly being the chief planner of one of the country's stinkiest-ever corruption scandals. Trial court Judge O.P. Saini, while granting bail to Raja, noted that all other accused have been given bail, the main point in his bail application. The court has instructed Raja not to influence people related to the case, and prohibited him from visiting the Department of Telecommunications and his home state of Tamil Nadu. The CBI has charged Raja with conspiracy, cheating, criminal misconduct and abusing an official position in the case of alleged rigging in the issuing telecommunication licenses and bandwidth in 2008. The charges carry a probable imprisonment of a minimum seven years and a maximum of life sentence. Investigators claim the rigging led to a loss of a minimum of $7 billion in potential revenue to the government. Resulting from the alleged scam, the Supreme Court on February 2 this year ordered the cancellation of 122 telecom licenses granted without auction in 2008, hugely hurting investor confidence.

Hungary MNOs lash out at govt. telecoms tax bill

editor@teleresearchlabs.com (Editor) — Tue, 15 May 2012 11:43:13 GMT

Hungary's mobile operators slammed the government Monday on a bill to tax MNOs on voice traffic, calling it a direct follow up on sectoral levies the government consented to wipe out from next year. As part of a fiscal redo program, the government has put forward numerous taxes, including the voice-traffic levy, in an attempt to accomplish budget deficit targets of 2.5% of gross domestic product (GDP) this year and 2.2% of GDP in 2013. The government expects the new taxes will produce 30 billion forints ($133.6 million) in 2012 and HUF52 billion in 2013. The planned voice-traffic tax is HUF2 per minute with monthly cap set at HUF700 household consumers and HUF2,500 for corporate customers. The discord stems from the fact that the government had said during sectoral negotiations that the tax would be imposed on consumers, whereas the cabinet's bill says it would be on MNOs, as per a combined statement by the country’s mobile operators Magyar Telekom Nyrt., Telenor Hungary Zrt. and Vodafone Hungary Zrt. The telcos said the new levy doubles the tax load on them, referring to a sectoral crisis tax that has weighed heavily on profitability since 2010.

Executive shuffle at Yahoo, again

editor@teleresearchlabs.com (Editor) — Tue, 15 May 2012 11:42:04 GMT

Yahoo Sunday said CEO Scott Thompson has quit the company, just after four months after his challenging tenure commenced. The US Internet company has appointed an interim CEO, Ross Levinsohn, EVP Americas, and further revealed that Daniel Loeb, founder of unhappy hedge fund investor Third Point, will join the company board. Chairman Roy Bostock has also vacated his seat. Having a 5.8% stake in Yahoo, Third point has been consistantly critical of recent performance and key steps taken by the company management, and has been seeking an overhaul at board level for the last eight months. Until now, its attempts to place its own representatives on the Yahoo board had been unsuccessful. Recently Third Point spoke out against former CEO Thompson's academic credentials, claiming his degree from Stonehill College is in accounting, and not in accounting and computer science as the troubled company’s SEC filings stated,. Yahoo maintained that it was an error and affirmed Thompson's ability to run Yahoo. Nonetheless, the pressure was relentless and at the weekend Yahoo did what many had predicted last week. As part of the changes, Fred Amoroso has been appointed as the new chairman of its board of directors, Three Third Point succeeded in placing its nominees – Harry Wilson, Michael Wolf and Loeb himself to the board effective May 16. Patti Hart, VJ Joshi, Arthur Kern and Gary Wilson have stepped down from these positions.

Carlos’s America Movil to enter into US telecoms

editor@teleresearchlabs.com (Editor) — Tue, 15 May 2012 11:40:41 GMT

Latin America’s wireless behemoth America Movil, controlled by Mexican multi-billionaire tycoon Carlos Slim, the world’s richest person with a net worth of $74 billion, revealed last Thursday it will be purchasing a 100 percent stake in US wireless operator Simple Mobile Inc., one of T-Mobile USA’s biggest mobile virtual network operators (MVNO) in the US. The deal is subject to certain conditions as well as granting of certain authorisations, and America Movil’s US unit, Tracfone Wireless, will acquire California-based Simple Mobile in the second quarter of this year. The financial side of the deal wasn’t disclosed. Simple Mobile provides service to over 1 million subscribers and offers voice, text messaging, data and wireless broadband services. The deal was revealed three days after America Movil declared it was seeking a stake of up to 28 percent in Dutch telecom company KPN to expand its footprint in Europe.

PT Telkom isn’t bidding for Pacnet

editor@teleresearchlabs.com (Editor) — Mon, 14 May 2012 09:32:01 GMT

PT Telekomunikasi Indonesia Tbk hasn't filed a bid to purchase undersea cable operator Pacnet Ltd., company Chairman Jusman Syafii told Dow Jones Newswires Friday last week. "We're just assessing [a deal], but there's been no decision and we haven't yet submitted a bid," he revealed after a general shareholders' meeting. He refused to offer further details. Reuters had earlier reported that Telkom, Indonesia's largest telecom company by assets and subscribers, submitted a bid in a deal that could access Pacnet at around $1 billion including debt, citing unnamed sources. Telkom submitted the bid last week after it reviewed Pacnet's business over few recent months, the source was quoted in the report as telling. Pacnet is headquartered in Hong Kong and Singapore.

Churn wheel continues to rip into T-Mobile USA

editor@teleresearchlabs.com (Editor) — Mon, 14 May 2012 09:30:53 GMT

T-Mobile USA has said it lost over a half million of the most profitable customers in Q1, making it the 10th successive quarter of contract user losses. The churn pushes the operator further behind AT&T Inc. and Verizon Wireless in the war to lock users into two-year commitments and could make the company’s recovery even more tough after regulators axed its plan late last year to be purchased by AT&T for $39 billion. T-Mobile, the fourth-biggest US MNO, put its strategic plans on the ice last year while awaiting federal approval of the AT&T deal and saw its subscriber base dwindle. The inability to secure the Apple Inc. iPhone is another competitive disadvantage that has hurt its ability to curtail churn. Chief Executive Philipp Humm has assured to turn around the company to customer gains."We've always said that in 2013, 2014 is when we want to be net positive" on contract customer gains, Humm stated in an interview Thursday last week. T-Mobile witnessed 510,000 branded contract customers leave in the first quarter, an improvement from the 706,000 lost in the year-ago period, though still behind its biggest rivals. T-Mobile did manage to lower the churn rate to 2.5% from 3% in the fourth quarter.

Telefonica plunges in dismal Europe

editor@teleresearchlabs.com (Editor) — Mon, 14 May 2012 09:29:39 GMT

Telefonica SA Friday announced a diluted Q1 earnings, as its business in severity-stricken Europe continued to take a hit, making the Spanish telecom major increasingly look at Latin America to drive revenue and profits. The telco posted a net profit of €748 million in the first quarter, which’s a dip of 54% from €1.62 billion in the same period a year ago, missing forecasts of €1.31 billion. The lower profit was partly because of a €337 million write-down on its 10% indirect stake in Telecom Italia SpA, to reflect a fall in the company's stock price, as well as to its falling fortunes in Europe, where revenue fell 6.6% in the quarter to €7.55 billion. On its home turf itself, revenue declined 11% to €3.9 billion.

C-Level shake-up at NTT DoCoMo

editor@teleresearchlabs.com (Editor) — Mon, 14 May 2012 09:27:34 GMT

Japanese telecom top gun NTT DoCoMo revealed a number of significant changes in its top brass management. The company named insider Kaoru Kato as its new President and CEO. Kato, presently operating in the capacity of Executive Vice President and a board member at thecompany, will replace outgoing CEO Ryuji Yamada, who is likely to become a director and a corporate advisor to the telco. Kato's appointment was one amongst many of executive changes at DoCoMo, all of which will be put in front of shareholders and the board of directors for official green signal at a June 19 meeting. Kazuto Tsubouchi and Fumio Iwasaki were raised to Senior Executive Vice President positions from Executive VPs. Takanori Utano, for now President and CEO of DoCoMo Technology, was proposed as the company's new Corporate Auditor, replacing Shunichi Tamari, who is expected to take on an advisory position.

UAE – Du mulling over MVNO opportunities post Q1 profit leap

editor@teleresearchlabs.com (Editor) — Fri, 11 May 2012 11:36:07 GMT

Emirates Integrated Telecommunications Co., better known as Du, is contemplating mobile virtual network operator (MVNO) opportunities to expand its presense for the first time outside its home turf, after posting a sharp rise in its Q1 profit, the company revealed Thursday. "We have people looking at and studying the potential opportunity of an MVNO," Osman Sultan, the telco’s CEO, told reporters in a conference call, but said that a final decision will be taken by the company's shareholders. MVNOs usually rent capacity on the regular carrier's network. Many telcos in the region are considering getting such licenses to expand in foreign markets without incurring huge CAPEX.

T-Mobile USA silent on M&A excogitation

editor@teleresearchlabs.com (Editor) — Fri, 11 May 2012 11:34:42 GMT

T-Mobile CEO Philipp Humm Thursday said the telco won’t be commenting on a Bloomberg report published Wednesday stating T-Mobile parent company Deutsche Telekom AG is in discussions with Metro PCS Communications Inc. about merging with T-Mobile. The two mobile carriers would be collaborated in a separate, publicly traded company, controlled by Deutsche Telekom AG, as per the report. Humm affirmed that Deutsche Telekom and T-Mobile are working to bolster up the T-Mobile business and in making T-Mobile into a "self-funding platform." The speculation follows months after AT&T Inc.'s proposed $39 billion takeover of T-Mobile fell apart owing to antitrust concerns. Other potential tie-ups have also been talked about recently, with many operators in the US listed as possible partners. The operators say they're facing a paucity of wireless spectrum, causing them to seek out deals with other players.

Worldwide Mobile Network Operators Directory 2013

editor@teleresearchlabs.com (Editor) — Fri, 30 Mar 2012 10:43:14 GMT

Worldwide Mobile Network Operators Directory 2013

Published:April 2012 | 990+ Pages

After Four years of continuous success, selling over 1350+ copies globally, and receiving an applaudable response from our esteemed clients worldwide, we take pride to bring to you our latest and updated – 5th Edition of the ‘Worldwide Mobile Network Operators Directory 2012-2013 aka WMNOD 2013.

Thank you for your continuous support and belief in our work. Your acceptance means a lot and pays great motivational value for us to keep doing better.

The Latest WMNOD 2013 features over 784+ active GSM (GPRS, EDGE, 3G, HSPA+), CDMA (2G, 3G+), WCDMA, and exclusively for the first time, *** LTE & WiMAX*** – Legacy and Greenfield Mobile Operations Worldwide. Casting over 8, 975+ Management Contacts ranging Tier-1 to Tier-3 CXOs/ Decision Making Executives globally, this updated and verified mine of information awaits to sharpen your competitive edge in go-to-market strategies and business promotions globally.

Beyond 2011, the operators are now looking towards the 5th Generation of mobile networks. Almost every vendor in the industry today is vying for the operator attention and aiming to delve deeper into the mobile business by contributing even an edge to this trillion dollar value chain. To those looking for a ‘window access’ of endless business opportunities on the way, our directory would be a ‘ready-reckoner’ in saving thousands of research hours - usually spent over the market identification, and opens-out their businesses on global scale, much faster!

Methodology
It took 6 months of grueling research, which began in December 2011, for us to be ready to serve the 5th edition of this directory to you. We commit to serve you to our best ability, and look forward to receiving your valuable feedbacks/ suggestions during 2012-2013.

Following Regions have been covered in this Directory:

Africa
Asia Pacific (Including Australia and New Zealand)
Europe
Latin America (Including the Caribbean/ West Indies)
Middle East
North America

The Directory offers following information:

·         Name of the Operator – Continent and Country Wise
·         Brand/ Commercial Business Name
·         Network Portfolio
·         Postal Address
·         Phone Number(s) - Switchboard
·         Fax Number(s)
·         Online Presence/ URLs
·         E-Mail Address – Non Specific
·         Subscriber Growth and Penetration
·         Ownership/ Share Pattern
·         Decision Makers/ Management Contacts
·         Group Information

To order a copy of this report, please contact editor [at] teleresearchlabs.com

Countries Covered in this Directory:

1. Africa

Algeria 81%

Angola 60%

Benin 21%

Botswana94%

Burkina Faso 11%

Burundi-11%

Cameroon-29%

Cape Verde-58%

Central African Republic-15%

Chad-9%

Comores-37%

Congo-52%

Côte d'Ivoire-41%

D.R.Congo-10%

Djibouti-55.5%

Egypt-60%

Equatorial Guinea-53%

Eritrea-18%

Ethiopia-45%

Gabon-60%

Gambia-50%

Ghana-44%

Guinea-25%

Guinea-Bissau-24%

Kenya-46%

Lesotho-30%

Liberia-23%

Libya-73%

Madagascar-20%

Malawi-15%

Mali-46%

Mauritania-45%

Morocco-73%

Mozambique-24%

Namibia-40%

Niger-11%

Nigeria-30%

Réunion-15%

Rwanda-15%

Senegal-62%

Seychelles-12%

Sierra Leone-20%

Somalia-13%

South Africa-91%

Sudan-26%

Swaziland-40%

Tanzania-32%

Togo-25%

Tunisia-80%

Uganda-33.50%

Zambia-32%

Zimbabwe-60%

2. Asia Pacific (Including Australia and New Zealand)

Afghanistan-66%

American Samoa-10.2%

Armenia-39.34%

Australia-130%

Azerbaijan-27.26%

Bangladesh-48.2%

Bhutan-57.2%

Brunei-109.5%

Cambodia-69%

China (PRC)-65%

Fiji-80%

French Polynesia-98%

Georgia-61%

Hong Kong-164%

India-73.4%

Indonesia-92%

Japan

Kazakhstan

Kiribati

North Korea

Korea,south

Kyrghizstan

Laos

Macau

Malaysia

Maldives

Mauritius

Mongolia

Myanmar

Nepal

New Zealand

Pakistan

Papua New Guinea

Philippines

Russia

Samoa (American)

Singapore

Sri Lanka

Tadjikistan

Taiwan

Thailand

Timor-Leste

Tonga

Turkmenistan

Uzbekistan

Vanuatu

Vietnam

3. Europe

Albania

Andorra

Austria

Belarus

Belgium

Bosnia Herzegovina

Bulgaria

Croatia

Cyprus

Czech Republic

Denmark

Estonia

Faroe Islands

Finland

France

Germany

Gibraltar

Greece

Guernsey

Hungary

Iceland

Ireland

Isle of Man

Italy

Jersey

Latvia

Liechtenstein

Lithuania

Luxembourg

Macedonia

Malta

Moldova

Monaco

Netherlands

Norway

Poland

Portugal

Romania

San Marino

Serbia & Montenegro

Slovak Republic

Slovenia

Spain

Sweden

Switzerland

Turkey

Ukraine

United Kingdom

4. Latin America (Including the Caribbean/ West Indies)

Anguilla

Antigua & Barbuda

Argentina

Aruba

Bahamas

Barbados

Bermuda

Bolivia

Brazil

British Virgin Islands

Cayman Islands

Chile

Colombia

Costa Rica

Cuba

Dominican Republic

Ecuador

El Salvador

French West Indies

Grenada

Guatemala

Guyana

Haiti

Honduras

Jamaica

Mexico

Montserrat

Netherlands Antilles

Nicaragua

Panama

Paraguay

Peru

Puerto Rico

St Kitts & Nevis

St Lucia

St Vincent & The Grenadines

Suriname

Trinidad & Tobago

Turks & Caicos Islands

Uruguay

US Virgin Islands

Venezuela

5. Middle East

Bahrain

Iran

Iraq

Israel

Jordan

Kuwait

Lebanon

Oman

Palestinian Authority

Qatar

Saudi Arabia

Syria

UAE

Yemen

6. North America

Canada

Greenland

Guam

USA

To order a copy of this report, please write to editor [at] teleresearchlabs.com

Mobile Video Adaptation and Delivery 2012-2016

editor@teleresearchlabs.com (Editor) — Thu, 29 Mar 2012 12:03:19 GMT

Mobile Video Adaptation and Delivery 2012-2016

Published: May 2012 No. of Pages: 200+

Purging the Fear of Tier 1/ Tier 2 Operators and Device Makers to Invest in Mobile Video/ Pay TV Services by Strategical Guidelines for Seamless Adaptation & Delivery Towards Maximising ARPUs, with Forecasts for 2012 2016

An accurate study of the present and the expected face of the telecom market based on detailed research by our experts has been supported by true data extracted from the grass root levels. This study is a conclusive report based on interviews, data mining techniques, in depth analysis, scrutiny of factual data and possible innovative propositions that could equip an entity to tackle the ongoing advancements in the industry.

Executive Summary

Mobile video & TV services have been around for almost over a decade…and yet mobile network operators haven’t been able to cash in on these services. Why? Is it the fear they harbour against the required network upgrades and CAPEX associated with it or have they simply shut their eyes towards the mammoth revenue opportunities possible via mobile video/ mobile TV services? The aim of our first research offering of 2012 is to shatter the hesitation of operators, particularly tier 2 and greenfield operators who are at the toddler stage in telecoms towards these services and assist them in ensuring their ARPUs are on an upward swing for the next 5 years – for the time has come when you simply can’t afford to rely on conventional mobile data offerings to your subscribers and risk being snuffed out by competitors unless you adapt to mobile video services and commence seamless, top quality video delivery on mobile devices to your customers.

As a Mobile Network Operator you must ask yourself :-

a) Are you having a hard time in network management for delivering seamless quality mobile video & TV services?

b) Have you thought of delving your operations in unserved/ underserved markets, globally?

c) Are you at a loss as to selecting the most profitable business partnerships vis-à-vis mobile video and TV services?

d) Does choosing the most appropriate business and pricing model for your mobile

video services becoming an ongoing struggle for you?

e) Are you confused as to whether your mobile video services roadmap correct?

f) Are you paying enough attention on consumer/ devices segmentation?

g) Is managing data traffic becoming an increasingly tough task for you?

h) Are regulatory measures hindering your business prospects?

i) Have you thought of newer ways to promote your mobile video & TV services or are still relying on conventional techniques?

j) Have you thought of collaborating with other industries in tapping further mobile video & TV subscribers?

If you affirm to any of the above questions our research could be a ready reckoner for you.

As voice revenues are slowly being choked off by the spreading tentacles of data traffic, the most crucial question in front of MNOs worldwide is – How to keep spiraling up their ARPUs in front of this relentless assault? Granted, there’s 4G LTE/ WiMAX as a soothsayer...however, we aren’t talking of the un-of-the-mill data consumption – The global mobile data traffic would go over 10 exabytes a month by 2016 as per the research sleuths of TeleResearch Labs – and video content would comprise the lion’s chunk of the matter. Why is this so?

Well, firstly, owing to the simple fact – What’s visualised is better perceived/ understood, globally, be it an avid music lover or a porn addict (no pun intended), or, the big-shot C-Level executive of any business, be it Telecoms, IT, Retail, Manufacturing etc. With the varied differences in the socio-economic make-up of countries spanning from North America to the depths of Africa, and the fastly-rising lifestyles of people in Asia, to Australia & New Zealand, the time is Now for all MNOs & the producers of mobile communications devices to Act rather than feel hopelessly outdated within the next 5 years – And that’s what led to the birth of our latest investigation, justifiably titled – Mobile Video Adaptation & Delivery, 2012 – 2016.

The lifeline of any telecom operator across the globe is its ARPUs – As outlined above, have you, as a network operator, fully comprehended whether (or not) the much hyped ‘super-fast’ 4G LTE networks, which many of you claim would be launched before we bid adieu to 2012, be actually capable to quench the skyrocketing mobile data (in particular, video) traffic? How many ‘second-best’ strategies have you put in place to safeguard the stupendous amounts you are currently investing, or planning to invest into your networks to meet this challenge?

Then again, what about the device makers? They can’t be left out of the fray as tier-1 business partners of all MNOs. With the plethora of mobile devices – be it smartphones, tablets, notebooks, netbooks, laptops etc., flooding global telecoms markets, the ultimate questions device makers need to ask themselves is whether they have/ are paying the due respect to market/ consumer segmentation or not? Are you still angling up that ‘cram-all-features-into-one’ strategy? Wake up if you are! There won’t be any ‘super, one-all mobile device – Yes, not even the much touted iTV, which’s purportedly being launched by the company that’s sort of made it its ‘distract and win’ ploy by filing lawsuits against its competitors across the global telecom canvas – Apple Inc.

Coming back to mobile operators again, the biggies out there might be sitting smugly after plunging billions of dollars into 4G networks/ technologies, but what about those who aren’t so big, the ones just starting out Be it upon the hot sands of the Middle East or the vast darkness of Africa, or across the arid plains of central Asia? Can they do something different Now to reach out and grab the tremendous opportunity that mobile video & TV, as a data content
service, beckons all connected to the telecoms industry? Moreover, who should/ should not be the pioneer towards investing billions into this particularly challenging segment of the mobile communications industry?

These are some of the questions we have attempted to answer in our Report.

Apart from mobile devices’/ consumer/ economic/ cultural/ regulatory segmentation & roadmaps towards mobile video adaptation and delivery, TeleResearch Labs’ experts have deduced numerous forecasts on mobile video subscribers, technologies, hindrances, ARPUs, and investments, globally as well as regionally – to assist each and every MNO and mobile device maker to chart his course of action beginning this year till 2016. And yes, as is our usual practice, our analysts made sure they left out nothing related to this concept of ‘mobility’ – So, unlike many other of our esteemed fellow research firms out there, we not only took into consideration smartphones as a medium of video services to the public and corporates, but included every other possible medium that facilitates mobility of video services – tablets, laptops, notebooks, netbooks, and even USB devices, and provided forecasts pertaining to all sections across all these mobile devices.

Convergence – That’s what lies behind succesful mobile video services’ adaptation and delivery. So we have even gone beyond these mobile devices and attempted to inculcate and examine industries other than telecoms, for instance, automobiles, with suggestions to truly, exhaustively extract revenues from all possible sources via mobile video/ Pay TV services across different regions globally. This assumes importance as people’s concept of accessing
video/ TV is moving from fixed to mobile devices – Entertainment and infotainment, be it the common man or corporates, is being demanded ‘while on the go’.

The ultimate purpose of this research is to provide MNOs and the mobile device makers with guidelines as to when/ how/ whether/ whether not to/ till what extent, make what/ how much of investments, and where/ where not into networks and partnerships targeted towards making mobile video services/ devices completely feasible and worth the time and money invested – so that all may reap the golden harvest that mobile visualisation has in store – be it from the perspective of the general public or business houses, right up till 2016. Moreover, we have analysed the peculiar qualities of remote/ unserved areas and suggested appropriate strategies for tier 2/ greenfield mobile network operators to make the very challenges of such areas into their strengths. Around 1.4 billion people accounting for 20% of the world population have no access to electricity including 585 million based in sub-Saharan Africa and remaining mainly from Southeast Asia. People, despite no electricity, are able to access mobile mainly in rural areas of these regions. This “off grid on Internet” population serves as an unserved target for mobile operators to accomplish their goals. Globally there are 32 countries where mobile data has already broken the electricity barrier. In 2011 total number of mobile users in sub-Saharan Africa and Southeast Asia exceeds the total on-grid population. By the end of 2013, the number of mobile users in the Middle East will exceed the Middle Eastern on-grid population, and by 2015 the number of mobile phone users in South Asia (India and surrounding countries) will exceed the South Asian on-grid population. It is expected that this off grid on Internet population is expected to reach around 138 million by 2015. Towards this our Report attempts to remove the fear/ hesitation which many tier 2/ greenfield operators could be harbouring towards investments in mobile video services. Several insightful and detailed case studies and analysis of mobile video services’ pricing/ business models have been included in the Report to give you an indepth scenario of these services and how to commence and successfully manage them.

In chapter 3 we have delved into the global mobile TV market and besides other matters,covered and analysed the imperitiveness of convergence of mobile devices, ways to monetise mobile video & TV services via selecting the most appropriate business model for operators at any stage of implementation of these services. Detailed and regional forecasts on mobile TV services based on subscribers/ revenues/technologies/ business models have been included to fully cover this segment.

Chapter 4 is devoted to the global mobile video services market, and includes roadmaps, guidelines for operators, particularly greenfield and tier 2 operators, ways to optimise CAPEX and maximise RoIs. Data traffic management, consumption patterns, and regional forecasts on subscribers and revenues are also included. How to expand your mobile video services subscriber base by venturing into other industries has been analysed to fully fortify this section.

Chapter 5 talks about the mobile devices’ market and inculcates shipments and related forecasts.

Chapter 6 covers the various stakeholders’ role in mobile video and pay TV services and includes an exclusive section on strategic business partnerships.

Chapter 7 revolves around the competitive landscape and contains several insightful case studies.

Chapter 8 discusses each and every avenue within mobile video services market, while chapters 9 & 10 cover and analyse the market catalysts and hindrances in detail.

Chapter 11 contains TeleResearch Labs’ findings and conclusions.

Spreaded over a daunting 6 months and extensive traveling, interviewing, data mining and analytical efforts by our analysts, the time is ripe for you to sit back and relish the latest product from the house of TeleResearch Labs – Mobile Video Adaptation & Delivery, 2012 – 2016 – So that you may avoid wrong planning/ strategies for the next 5 years towards mobility of the ultimate data service, mobile video, and pen affective ploys for your business to ensure maximal ARPUs with minimal costs and investments.

Key Findings And Forecasts

K1	Global mobile TV/ video subscribers will surpass 900 million by 2016.
K2	Global mobile data usage per subscriber per month would be more than 6177 MB in the next four years. Highest data usage will be seen in North America followed by Europe.
K3	Soaring global mobile data traffic will account for 60% of the consumer Internet traffic by 2015, out of which mobile video will account two third of the total share.
K4	Global mobile monthly data traffic will increase 18 fold and reach 10 Exabytes (EB) by 2016. Asia Pacific will continue to dominate the market.
K5	US mobile video advertising spending will grow significantly and reach US$ 372 million by 2016, and global expenditure on mobile advertising will reach approximately US$30 billion by 2016 – and to what extent video will comprise the share.
K6	Global mobile operator’s data revenues will surge significantly and reach US$ 493 billion by 2016, and how video will be a major driver for this growth.
K7	Global mobile TV market will experience strong growth and would reach US$ 7 billion by 2016.
K8	Which mobile operators should invest in mobile video segment at this stage, and which ones should not do so, and why.
K9	The best techniques to converge mobile video services and devices, based on affective user/ market segmentation.
K10	At least 40% of smartphone users will use mobile video services from the current 29% by 2016.
K11	More than 40 countries including India, Indonesia, Nigeria, etc. will have a break through in mobile video market after mobile network will break the electricity barrier by 2016.
K12	Mobile video consumption is surging exponentially and will surpass 693 billion minutes by 2015.
K13	Global mobile consumer device shipments would reach 2.8 billion units in 2016.
K14	TV viewing on tablets would increase to approximately 3 hours each month by 2014.

Key Questions Answered

Q1	How is the mobile video market defined and segmented?
Q2	What are the drivers and inhibitors that will affect the mobile video market in the future?
Q3	Who are the stakeholders in the market and what are their key roles in it?
Q4	What is the size of the devices’ market that play vital role in the delivery of mobile video services?
Q5	What are the types of business models being adopted to make the services deliverable and profitable?
Q6	What are the standards and technologies used to deliver mobile video services?
Q7	How are regional markets regulated and their affect on mobile video services and investments?
Q8	What is the current status of the global and regional mobile video market and how it will be headed in the future?
Q9	What are the key assumptions and rationale behind mobile video services that will define the market ‘s future?
Q10	What are the key findings analysed by TeleResearch Labs & suggestions offered by it?
Q11	How could the mobile app and mobile content community take advantage of mobile video market?
Q12	What are the key developments and new offerings in the market?
Q13	To what extent does video really ‘spam the network’ and what are best ways to affectively offload/ manage data traffic?
Q14	How can traditional content owners capitalise on the mobile video services vis-à-vis smartphones and tablets as delivery mediums?
Q15	How greenfield operators can optimise their CAPEX for mobile video/ Pay TV services?
Q16	Which are the industries which could tap in mobile video services?

Who might Be interested in this Report?

Telecom Investors

Operators

For a better understanding of the dynamics of mobile video markets across the globe, this study would also provide global opportunities and competitive analysis. Business Case Studies, Absolute picture of the mobile video subscriber growth & psychology and recent technological developments make this a must read for better understanding of current and upcoming scenarios.

Device Makers

For better product development and giving a competitive edge to the product in sync with the technological revolution.

Vendors
Service providers and Application Developers
Content providers
Regulators
Educational Institutes (esp. in the telecom or IT sector)

Table of Contents

Chapter 1: Market Definitions and Research Methodology

Chapter 2: Executive Summary

Chapter 3: Global Mobile TV Market – It’s a Long Road…and it’s Hard as Hell…

3.1 Market Introduction 3.2 Mobile Convergence: Mobile TV and Fixed 3.3 How Mobile TV Services Can be Improved? 3.3.1 Transition from Analog to Digital – Who all would be Affected and How? 3.3.1.1 Digital Communication System Based 3.3.1.2 Analog Based Mobile TV 3.3.1.3 Digital Based Mobile TV 3.3.2 Broadcast Standards: Key Modes of Delivery 3.3.3 Solution Reaching Mass Level Audience 3.3.4 The Significance of Stakeholders Cooperation 3.4 Monetisation of Mobile TV Services 3.4.1 Revenue Generation Sources 3.4.2 Right Business Model to be Adopted 3.4.3 Direct Model 3.4.3.1 Mobile Operator Led Approach 3.4.3.2 Mobile Operator Led Approach with Broadcaster network Operator 3.4.4 Collaborative Model 3.4.4.1 Wholesaler Service Provider Model 3.4.5 Independent Model 3.4.5.1 Broadcaster Led Approach/ Free‐to‐Air 3.4.6 Case Studies: Business Models and Practices – What to Adopt and What to Avoid 3.4.6.1 Pricing Strategy Crucial for Service providers 3.4.6.1.1 Verizon V Cast vs. Qualcomm FLO TV 3.4.6.2 Business Models Adopted in Different Regions 3.4.6.3 New Hybrid Digital Business Model adopted in Eastern Africa 3.4.7 Does MobiTV Business Model Have an Ambiguous Future? 3.4.8 Favorable Regulations: Key to Success 3.4.8.1 Regulations Affecting the Market 3.4.8.2 Duplicate/ Multiple Regulations Hindering Growth 3.4.8.3 Different Strategies for Different Regions 3.4.8.3.1 Why Europe still Struggles in the Lead? 3.4.8.3.2 Overview of Regulations in North America 3.4.8.3.3 Asia Pacific Leading the Market 3.5 Mobile TV Market Analysis 3.5.1 Global Mobile TV ‐ Current and Market Forecast 3.5.2 Global Mobile TV Market Revenue by Service Type 3.5.3 Global Mobile TV Revenue Market by Platform 3.5.4 Global Mobile TV Market Revenue by Business Model 3.5.5 Global Mobile TV Subscriber Base Forecast 3.5.6 Global Mobile TV Subscriber base by Technology 3.6 Regional Analysis of Mobile TV Market 3.6.1 North America 3.6.1.1 Market Dynamics and Snapshots 3.6.1.2 Number of US Mobile Internet and Video Viewers Increasing Significantly 3.6.1.3 US Mobile Video Ad Spending 3.6.1.5 Mobile TV Subscriber Base Forecast 3.6.2 Europe 3.6.2.1 Market Dynamics and Snapshots 3.6.2.2 Mobile TV Current and Market Forecast 3.6.2.3 Mobile TV Subscriber Base Forecast 3.6.3 Latin Americat 3.6.3.1 Market Dynamics and Snapshots 3.6.3.2 Roll Out of 700 MHz of Digital Dividend Spectrum 3.6.3.3 Mobile TV Current Revenue and Market Forecast 3.6.3.4 Mobile TV Subscriber Base Forecast 3.6.4 Asia Pacific 3.6.4.1 Market Dynamics and Snapshots 3.6.4.2 Mobile TV Current Revenue and Market Forecast 3.6.4.3 Mobile TV Subscriber Base Forecast 3.6.5 Middle East & Africa 3.6.5.1 Market Dynamics and Snapshots 3.6.5.2 Huge Potential lying in the African Mobile TV Market 3.6.5.3 Mobile TV Revenues Current and Market Forecast 3.6.5.4 Mobile TV Subscriber Base Forecast 3.7 Key Developments in Mobile TV Market 3.7.1.1 Key Mobile TV Offerings 3.7.1 Verizon Video 3.7.1.2 AT &T U‐Verse Mobile 3.7.1.3 Sprint TV 3.7.1.4 T‐Mobile Mobile TV prime 3.7.2 You Tube Dominates Social Networking 3.7.2.1 You Tube Video Consumption across Social networks 3.7.2.2 YouTube Usage compared to other Video Brands 3.7.2.3 Top 10 Most Subscribed Channels on You Tube 3.7.3 Future Events to Watch Out For 3.7.3.1 Worldwide Sports Events 3.7.3.2 CyFrowy Polsat to Launch Mobile TV Service in 2012 3.7.4 MetroPCS Launching Dyle Mobile DTV Service 3.7.5 TV Viewing on Tablets to Put on the Spikes in Coming Years 3.7.5.1 Tablets boosting Mobile TV Revenues 3.7.5.2 Growing Significance of Tablets 3.7.5.3 Tablets Cannibalising Other Devices Usage 3.7.6 PacketVideo Will Launch Mobile TV Add‐on Receivers

Chapter 4: Global Mobile Video Services Market‐ A Shredding Anlaysis

4.1 Market Introduction and Overview 4.2
Significance of Mobile Video Consumption to Leapfrog 4.3
What Roadmaps Should Operators/ Greenfield Players Follow to Combat the Risks Associated with Mobile Video Market? 4.3.1 Evaluation of the Risks Associated with Mobile Video Services 4.3.2 Leveraging Mobile Video Services for Maximum ROI 4.3.2.1 Optimising CAPEX is the Focal Point 4.3.1 Global Mobile TV Receiver Chips Market 4.3.2
Leveraging Mobile Video Services for Maximum ROI 4.3.2.1
Optimising CAPEX is the Focal Pointer 4.3.2.2
Mobile Data Traffic Offloading Solutions – An Eye Opener 4.3.2.2.1
Femtocells vs. Wi‐Fi for Data Offloading – Which would make the ultimate cut? 4.3.2.2.2
Other Alternatives 4.3.2.3
Enhancing Customer Experiences 4.3.2.3.1
Understanding the Consumption Patterns and Preferences 4.3.2.3.2
Weekly and Monthly Time Spent on Video by Age and Gender 4.3.2.3.3
Women Spend More Time on Social Networking than Men Globally 4.3.2.3.4
Enhancing Video Quality for Viewers 4.3.2.4
Providing Innovative and Quicker Product Packaging 4.3.2.5
Adopting Appropriate Video Content Strategies 4.3.2.6
Applying Optimum Business Model 4.4
Monetisation of Mobile Video Services 4.4.1
Global Mobile Video Services Subscribers Forecast 4.4.2
Global Mobile Video Services Market Revenue Forecast 4.4.3
Regional Mobile Video Revenues Forecast 4.3.4
Regional Mobile Video Subscribers Forecast 4.5
Mobile Video Beyond Telecoms Realms – How and Which Way Other Businesses Stand to Benefit….and Add to Operators’ Revenue 4.5.1
New Avenues for Automobile Industry – A Feature to Differentiate 4.5.2
Remote Mobile Security Vigilance Industry Becoming Efficient 4.5.3
Education Industry providing New Advance Solutions 4.5.4
Healthcare Industry Benefiting from Mobile Video Services 4.5.4.1
Verizon, Motorola Mobility and BoxTone Rendering Mobile Solution to Healthcare Industry 4.5.4.2
Bell’s Video Solutions for Healthcare 4.5.5
Mobile Video Merchandising Advantageous in Retail Sector 4.5.6
Video Calling: Huge Future Potential 4.5.7
NFC will be a Key Driver 4.5.8
Surging Content Market Taking Video to New heights 4.3.2.2
Mobile Data Traffic Offloading Solutions – An Eye Opener 4.5.9 VoD Market Growing Fast in Latin America 4.5.10 Open Source Empowering the Market

Chapter 5: Global Mobile Consumer Devices Market – Current Evaluation and a Peek Ahead

5.1 Devices Playing Crucial Role 5.1.1 Global Mobile Consumer Device Shipment ‐ Current and Forecast 5.1.2 Mobile Consumer Device Shipment Forecast by Typee 5.1.3 4G LTE Handset Shipment Forecast 5.2 A Plethora of Devices Leading to Bandwidth Crunch 5.3 What are the New Opportunities to Grab in the Device Accessories Market? 5.3.1 Global Mobile TV Receiver Chips Market 5.3.2 Smartphones Accessories Marketst

Chapter 6: A Brief Analysis of Who should Do What?

6.1 What are Stakeholders Roles in Mobile Ecosystem? 6.1.1 Cellular Service Provider and Operator 6.1.2 The Broadcast Network Operator 6.1.3 The Advertiser 6.1.4 The Content Creator/Provider/Broadcaster 6.1.5 The Content Aggregator 6.1.6 The Handset Manufacturer 6.1.7 Application and Service Provider 6.1.8 The End user 6.2 Business Partnerships – How to Strategise and Select for Seamless Delivery of High QualityMobile Video Services? 6.2.1 MobiTV Joining Hands with Dolby to Deliver High Quality Sound across All Screens 6.2.2 QuickPlay Media Powering myTV Video services in Hong Kong 6.2.3 Collaboration of Dialogic with VoiceServe to Develop Mobile Video Conferencing 6.2.4 Verizon and Redbox Partnership Cannibalising Netflix Business 6.2.5 Global Technologies and Yorktel Fortifying Global Leadership in Mobile Video Conferencing
6.2.6 Bell with QuickPlay Media Introduced Enhanced Mobile TV Player

Chapter7: ACompetitive Landscape for Operators and Mobile Device Makers: Who is ahead of Whom and Why? 7.1 A Closer Look at Top Players 7.1.1 Players Leading in Smartphone Market 7.1.2 Could Apple’s Tablet Market Dominance be Ended? 7.1.3 Nokia on its Deathbed? 7.2 Significant Business Case Studies 7.2.1 NTT DoCoMo, Japan 7.2.2 China Mobile, China 7.2.3 Maxis Malaysia, Malaysia 7.2.4 Telstra, Australia 7.2.5 SK Telecom, South Korea 7.2.6 Verizon,Wireless, USA 7.2.7 AT & T, USA 7.2.8 Orange, France 7.2.9 MTS, Russia 7.2.10 MTN, Nigeria 7.2.11 Vodacom, South Africa 7.2.12 ViVO, Brazil 7.2.13 Pay OTT TV – Analysis of Two Top Rivals 7.2.13.1 Hulu Plus 7.2.13.2 Netflix

Chapter 8: Multiple Revenue Streams of Mobile Video Services to Curb Churn.

8.1 Market Introduction and Developments 8.2 IPTV and Mobile TV Extending Pay TV Market to New Heights 8.2.1 Pay TV Market‐ Shifting Trend to IP based Deliveries 8.3 Basket of Mobile Video Services Available for Monetisation 8.3.1 Mobile TV Services 8.3.2 Mobile Video On Demand Services 8.3.3 Mobile Video Advertising 8.3.4 Live Cameras 8.3.5 Video Portals 8.3.6 User‐Generated Video (UGV) 8.3.7 Other Streaming Applications Chapter 9: What are the Prime Catalysts for Mobile Video Services Market? 9.1: Key Factors Shaping the Mobile TV and Video Services Industry 9.1.1 The Increasing Use of Mobile Broadband Driving the Video Market 9.1.1.1 Global Mobile Broadband Usage 9.1.1.2 Mobile Internet Users and Monthly Internet usage 9.1.2 World’s Internet Traffic Dominated by Mobile Data Traffic 9.1.2.1 Mobile Data Usage per Month 9.1.2.2 Global Mobile Data Traffic 9.1.2.3 Global Monthly Mobile Data Forecast 9.1.2.4 Mobile Monthly Data Forecast by Geographical Region 9.1.2.5 Mobile Data Traffic Forecast by Device Type 9.1.2.6 Mobile Data Traffic Forecast by Networks (2G, 3G & 4G) 9.1.2.7 Mobile Data Traffic Forecast by Application Category 9.1.3 Advertisers Viewing Mobile TV as A Tool to Target Mass Customers
9.1.3.1 Global Digital media –Transformation in Advertising Channel Spending 9.1.3.2 Monetization of Video Advertising through Mobile 9.1.4 Mobile Video – A New Platform to Save their Falling Revenues 9.1.5 Spurring Mobile Applications Demand will Continue to Drive the Market 9.1.5.1 Mobile App Store Downloads
9.1.5.2 Mobile App Store Revenues for Top players 9.1.6 Inclining Spoon Feeding Habits leads the Customers to Want More and Better 9.1.7 3G/ 4G Leading the Battle of Technology 9.1.7.1 Evolution of Technologies 9.1.7.2 Technology Forecast by Subscriber Base 9.1.7.3 Global LTE/ WIMAX Deployment 9.1.8 Smartphone – A Turn Around in the in Mobile Devices Market 9.1.8.1 Global Smartphones Current Sales and Market Forecast 9.1.8.2 Smartphones’ Market Scenario in Key Countries 9.1.8.3 NTT DoCoMo 4G LTE Smartphone 9.1.8.4 AT&T 4G LTE Smartphone 9.1.8.5 Smartphone Apps Playing a Significant Role 9.1.8.5.1 BBC iPlayer 9.1.8.5.2 Elgato’s Eye TV 9.1.8.5.3 Slingbox Television 9.1.8.5.4 Live TV Sports Coverage Through Sky Mobile TV 9.1.8.5.5 Streaming live TV from PlayStation 3 with Play TV 9.1.8.5.6 SlingPlayer Mobile App for watching Terrestrial TV on Smartphones 9.1.8.6 Smartphones to Watch Out For in 2012 9.1.8.6.1 HTC One X, S and V 9.1.8.6.2 Nokia 808 Pure View 9.1.8.6.3 Nokia Lumia 610 9.1.8.6.4 Samsung Galaxy Beam 9.1.8.6.5 Sony Xperia P, Xperia U, Xperia S 9.1.8.6.6 LG Optimus 4X HD 9.1.8.6.7 LG Optimus VU 9.1.8.6.8 Panasonic Eluga 9.1.8.6.9 Huawei Ascend D Quad 9.1.8.6.10 Acer Liquid Glow 9.1.8.6.11 Lava Xolo X900 9.1.9 Underserved/ Unserved Market – A Hub of Unmet Needs 9.1.10 Growing Popularity of UGC and Web Mobile Social Networking – YouTube, Facebook, Twitter and LinkedIn 9.1.10.1 Global Mobile Social Networking Customers 9.1.10.2 Emerging Trends in Major Markets 9.1.11 Faster Adoption of Video Content Drives the Market Growth

Chapter 10: What Restricts Mobile Video Services Market?

10.1 Key Inhibitors Affecting Mobile TV and Video Services (VOD) Market 10.1.1 Subscribing Cost Still Remains Out-of-Pocket for a Significant Customer Base 10.1.2 Global Recession Affecting Consumer Real Spending and Operators Revenues 10.1.3 TCompanies Reluctant to Invest in Required High Infrastructure Cost 10.1.4 Spectrum and Bandwidth Problems Limiting Its Growth 10.1.5 Consumers Lack of Interest in Mobile Broadband Affects Mobile Video Market 10.1.6 Uncertainties of Business Models- A Major Setback with Service Providers 10.1.7 Non Availability of Compatible Smartphones Bolstering Operators Challenges 10.1.8 Migration Completely to 3G/4G Technology will be a Protracted Task 10.1.8.1 Higher numbers of 2G Subscribers than 3G 10.1.9 Regulatory Resolutions Affecting the Mobile Video Market

Chapter 11: Our Conclusions and Findings:How to Succed? 11.1 Getting the Pricing Right for Mobile TV Services 11.2 Selecting the Most Appropriate Hybrid Technologies for Reducing the Infrastructure
11.3 Innovation and Affordability should be the Key Mantras for Success Chapter 12 Glossary

List of tables Table 3 1: Global: Mobile Video Services Market/Applications Table 4 1: Global Mobile Consumer Device Shipment by Type (In Million), 2011-2016 Table 5 1: Mobile–Only Internet Users by Region (In Million), 2011-2016 Table 5 2: Mobile Subscribers Accessing Web at Least Monthly, 2011 Table 5 3: Mobile Data Usage per Subscriber per Month by Geographical Region (In MB),
Table 5 4: Global Monthly Mobile Data Traffic by Geographical Region (In TB), 2011-2016 Table 5 5: Monthly Mobile Video Data Traffic Forecast by Device Type (In TB), 2011-2016 Table 5 6: Evolution of Technologies Table 5 7: Global 3G & Above Subscriber Base by Geographical Region (In Million), 2011-
Table 5 8: Stakeholders Brief Synopsis Table 5 9: Growing Trends in Mobile Social Networking in US and EU5, Sept 2010 and Sept
Table 7 1: Understanding the Consumption Patterns and Preferences Table 8 1: Mobile TV Key Broadcasting Standards Synopsis Table 8 2: Type of Transmission Table 8 3: Examples of Mobile TV Business Models Table 8 4: European Mobile TV Regulation Overview Table 8 5: Online Unique Viewers for Video Brands (In 000), Jan 2011 Table 8 6: Online Total Streams for Video Brands (In 000), Jan 2011
List of Figures 9.8.1 North America Figure 3 1: Types of Mobile Video Services Figure 4 1: Global Mobile Consumer Device Shipments Forecast (In Million), 2011-2016 Figure 4 2: Global Consumer Device Shipments by Type (In 2010-2016
Figure 4 3: Global 4G LTE Handset Shipments Forecast (In Million), 2011-2016
Figure 4 4: Multiplying Effect of High End Devices on Mobile Data Traffic, 2011 Figure 4 5: Global Mobile TV Receiver Chips Market Forecast (In Million), 2011-2016 Figure 5 1: Global: Mobile Broadband Subscription per 100 inhabitants, 2010
Figure 5 2: Global: Mobile Broadband Subscribers (In Billion), 2011 and 2016
Figure 5 3: Mobile–Only Internet Users by Region (In 2011-2016 Figure 5 4: Global: Mobile Data Traffic (In 2011 and 2016 Figure 5 5: Global Monthly Mobile Data Traffic Forecast (In TB), 2011-2016 Figure 5 6: Global Mobile Data and Internet Traffic by Geographical Region (In 2011-
Figure 5 7: Monthly Mobile Video Data Traffic Forecast over Networks (In TB), 2011-2016 Figure 5 8: Monthly Mobile Data Traffic Forecast by Application Category (In TB), 2011-2016

Figure 5 9: Global Expenditure on Mobile Advertising (In US$ Billion), 2011-2016 Figure 5 10: US: Spending on Mobile Video Advertising (In US$ Million), 2009-2016 Figure 5 11: Mobile Advertising Revenue by Region (In US$ Million), 2011 and 2016 Figure 5 12: Global Mobile Operators Data Revenues (In US$ Billion), 2011-2016 Figure 5 13: Global: Mobile App Store Download Forecast (In US$ Billion), 2010-2016 Figure 5 14: Mobile App Store Revenue Forecast for Four Major Players (In US$ Billion), 2011- 2016 Figure 5 15: Percentage of Searches Done Via Mobile Device, Feb 2011 Figure 5 16: Evolutions of Commercial Wireless Broadband Standards Figure 5 17: Global Subscriber Base by Technology Forecast (In Million), 2011-2016 Figure 5 18: Global 3G & Above Subscriber Base by Geographical Region (In 2011-2016 Figure 5 19: Penetration of 3G Handsets in Top Regions (In 2011 and 2016 Figure 5 20: Worldwide Smartphones Sales and Operating System market Share, 2011-2016 Figure 5 22: Mobile Access in 4 Major Regions Will Break the Electricity Barrier by 2015 Figure 5 23: Global: Mobile Social Networking Using Consumer Base (In Billion), 2011-2016 Figure 5 24: Monthly Mobile Video Data Traffic Forecast over Networks (In TB), 2011-2016 Figure 6 1: Global: Mobile TV and VOD Services Subscriber Cost, 2011 Figure 6 2: Global Effects on Consumer Spending on Telecoms Figure 6 3: Cost of Infrastructure Ownership for MNOs (In US$ Million) Figure 6 4: Spectrum Demand Vs Supply (In Gbytes), 2010-2016 Figure 6 5: Operator Spectrum requirement (In MHz of Spectrum), 2010-2016 Figure 6 6: Consumer Survey Showing Reasons for Lack of Interest in Mobile Broadband (In 2009 & 2010 Figure 6 7: Global Smartphones Shipment Forecast (In Million), 2010-2016 Figure 6 8: Global: Number of 2G and 3G Mobile Subscribers (In Billion), 2007-2011 Figure 8 1: Types of Mobile TV Services Figure 8 2: Comparison of Analog Mobile TV Vs Digital Broadcast Mobile TV Figure 8 5: Mobile TV Value Chain Model Figure 8 6: Sources of Revenue for Mobile TV Figure 8 7: Mobile TV Business Models Figure 8 8: Mobile Operator Led Approach Model Figure 8 9: Wholesaler Service Provider Model Figure 8 10: Broadcaster Led Approach Model Figure 8 11: Global Mobile TV Regulations Overview Figure 8 12: Mobile TV Revenue Forecast (In US$ Million), 2010-2016 Figure 8 13: Mobile TV Subscriber Base Forecast (In Million), 2010-2016 Figure 8 14: Mobile TV Revenue Forecast by Service Type (In US$ Million), 2010-2016 Figure 8 15: Mobile TV Revenue Forecast by Service Type (In 2010-2016 Figure 8 16: Mobile TV Users by Service Type (In Million), 2011-2016 Figure 8 17: Mobile TV Users by Service Type (In 2011-2016 Figure 8 18: Mobile TV Revenue Forecast by Platform (In US$ Million), 2010-2016 Figure 8 19: Mobile TV Revenue Forecast by Platform (In 2010-2016 Figure 8 20: Mobile TV Revenue Forecast by Revenue Model (In US$ Million), 2010-2016 Figure 8 21: Mobile TV Revenue Forecast by Revenue Model (In 2010-2016 Figure 8 22: US Mobile Internet Users and Penetration, 2011-2016 Figure 8 23: GUS Mobile Video/TV Users and Penetration (In Million), 2010-2016 Figure 8 24: US Mobile Video Ad Spending and Penetration (In US$ Million), 2011-2016 Figure 8 25: North America Mobile TV Revenue Forecast (In US$ Million), 2011-2016 Figure 8 26: North America Mobile TV Subscriber Base Forecast (In Million), 2011-2016 Figure 8 27: Western Europe Mobile TV Revenue Forecast (In US$ Million), 2011-2016 Figure 8 28: Western Europe Mobile TV Subscriber Base Forecast (In Million), 2011-2016 Figure 8 29: Additional Mobile Broadband Coverage Achievable with 700MHz band in Major Regions of Latin America Figure 8 30: Latin America Mobile TV Revenue Forecast (In US$ Million), 2011-2016 Figure 8 31: Latin America Mobile TV Subscriber Base Forecast (In Million), 2011-2016 Figure 8 32: 3G Subscribers for Top 3 Operators in China (In Numbers), 2011 Figure 8 33: Top 3 Player 3G Market Share in China (In 2011 Figure 8 34: Asia Pacific Mobile TV Revenue Forecast (In US$ Million), 2011-2016 Figure 8 35: Asia Pacific Mobile TV Subscriber Base Forecast (In Million), 2011-2016 Figure 8 36: Middle East & Africa Mobile TV Revenue Forecast (In US$ Million), 2011-2016 Figure 8 37: Middle East & Africa Mobile TV Subscriber Base Forecast (In Million), 2011-2016 Figure 8 38: AT &T U-Verse TV Subscriber Base and ARPU Figure 8:39 YouTube Views Per Day Timeline Figure 8 40: GYouTube Video Consumption across Social Networks Figure 8 41: Global Mobile Data Bandwidth and mobile streaming Usage by YouTube, H1 2011 Figure 8 42: Top 10 Most Subscribed Channels of YouTube along with Subscribers, 2011 Figure 9 1: Mobile Video Services Market Overview Figure 9 2: Global: Mobile Video Subscriber Base Forecast (In Million), 2011-2016 Figure 9 3: Global: Mobile Video Subscriber Base Forecast by Service Type (In Million), 2011-2016 Figure 9 4: Global: Mobile Video Subscriber Base Forecast by Service Type (In 2011- 2016 Figure 9 5: Mobile Video Services Revenue Forecast (In US$ Million), 2011-2016 Figure 9 6: Mobile Video Services Revenue Forecast by Service Type (In US$ Million), 2011- 2016 Figure 9 7: Mobile Video Services Revenue Forecast by Service Type (In 2011-2016 Figure 9 8: North America Mobile Video Services Revenue Forecast (In US$ Million), 2011- 2016 Figure 9 9: North America Mobile Video Services Revenue Forecast by Service Type (In US$ Million), 2011-2016 Figure 9 10: North America Mobile Video Services Revenue Forecast by Service Type (In 2011-2016 Figure 9 11: Europe Mobile Video Services Revenue Forecast (In US$ Million), 2011-2016 Figure 9 12: Europe Mobile Video Services Revenue Forecast by Service Type (In US$ Million), 2011-2016 Figure 9 13: Europe Mobile Video Services Revenue Forecast by Service Type (In 2011- 2016 Figure 9 14: Latin America Mobile Video Services Revenue Forecast (In US$ Million), 2011- 2016 Figure 9 15: Latin America Mobile Video Services Revenue Forecast by Service Type (In US$ Million), 2011-2016 Figure 9 16: Latin America Mobile Video Services Revenue Forecast by Service Type (In 2011-2016 Figure 9 17: Asia Pacific Mobile Video Services Revenue Forecast (In US$ Million), 2011-2016 Figure 9 18: Asia Pacific Mobile Video Services Revenue Forecast by Service Types (In US$
Figure 9 19: Asia Pacific Mobile Video Services Revenue Forecast by Service Types (In %),
Figure 9 20: MENA Mobile Video Services Revenue Forecast (In US$ Million), 2011-2016 Figure 9 21: MENA Mobile Video Services Revenue Forecast by Service Type (In US$ Million),
Figure 9 22: MENA Mobile Video Services Revenue Forecast by Service Type (In %),

Analysts

Oscar Mine (Sr. Research Analyst)
Aseem Bhardwaj (Principal Research Analyst)
Sullivan Burns (Research Associate)

Address:
TeleResearch Labs Inc.,
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Email: editor [at] teleresearchlabs.com

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Competitive Strategies and Analyses of the Worldwide Mobile, Fixed-Line Broadband
Operators/ Vendors, and Propositions for 2011 2016

Facebook buys cartload of IBM patents

editor@teleresearchlabs.com (Editor) — Mon, 26 Mar 2012 10:12:11 GMT

Facebook Inc. has bought hundreds of patents from International Business Machines Corp. (IBM) in an endeavour to strengthen its intellectual-property standing as it faces Yahoo Inc. in a high-profile infringement lawsuit. Facebook has purchased around 750 patents from Armonk, N.Y.'s IBM, which is consistently among the top US patent winners on an annual basis. The patents span a broad range of technologies including software and networking. A Facebook spokesman confirmed the deal but refused to offer further details. An IBM spokesman refused to comment.

O2 joins Vodafone in clubbing Ofcom for spectrum refarming

editor@teleresearchlabs.com (Editor) — Mon, 26 Mar 2012 10:10:46 GMT

O2 on Friday joined Vodafone in lambasting UK telecoms regulator Ofcom's proposal to allow Everything Everywhere to reuse its 1800 MHz spectrum for LTE services. "We are concerned that Ofcom's... proposal to allow one operator to launch 4G early on its existing spectrum is contradictory to its objective of delivering a competitive market environment with four competing players," O2 stated in an email. When Ofcom in January made changes in the regulations governing the country’s upcoming spectrum auction it was emphatic that the process should ensure the presence of at least four competitive carriers in the market. At the same time Ofcom said it would not reserve sub-1 GHz spectrum for Everything Everywhere, noting that the operator could instead refarm its current 1800 MHz spectrum for LTE services if it so wishes. Earlier in March, the regulator said it is "minded to allow" Everything Everywhere to do exactly that, potentially making way for the company to launch LTE services this year. Ofcom's spectrum auction proposals have "much to commend them," O2 said. "This could expose the [auction] process to further risk of delay," the telco warned. O2's comments follow days after a similar criticism from rival Vodafone. "Ofcom appears to have taken leave of its senses," Vodafone UK chief Guy Laurence said in a statement released earlier this week. "The regulator has always stressed that competition is in the best interests of consumers and the British economy yet here it is all but agreeing to grant the largest player in the market a headstart on the next generation of mobile Internet services," Laurence said. For its part, Ofcom maintains that permitting Everything Everywhere to commence LTE services in its 1800 MHz spectrum band would not hamper competition in the country "Given the benefits this would bring consumers, Ofcom is minded to allow this change of use," the regulator said. Interested bidders have until 17 April to submit their comments to the regulator.

Churn affect – T-Mobile picks up the axe, to shut down call centres

editor@teleresearchlabs.com (Editor) — Mon, 26 Mar 2012 10:09:27 GMT

Fleeing customers and its failed attempt to sell itself to AT&T last year has taken its toll on T-Mobile USA – the telco will be shedding 5% of its workforce and shut down seven call centres as part of a broader restructuring drive that will span across next three months. T-Mobile said the downsizing was imperative to help fund its $4 billion network upgrade to 4G LTE. The company, the only one without the Apple Inc. iPhone, lost 1.7 million contract customers last year, even as its larger rivals AT&T and Verizon Wireless boosted their subscriber base. "The customer base is less and the call volume is lower," acknowledged Cara Walker, a spokeswoman for the telco."This is an effort to optimise our operations." After walking away from its $39 billion deal, AT&T paid T-Mobile’s parent Deutsche Telekom AG $3 billion in cash and $1 billion in spectrum that the operator will use to help with its upgrade to 4G LTE. CEO Philipp Humm has said the uncertainty surrounding the deal forced him to put strategic plans on hold. Walker refused to reveal the expected annual savings. She said further job cuts wouldn't impact the remaining 17 call centres, engineers, technicians or salespeople in T-Mobile retail locations.

Vodafone, Hutchison Whampoa reiterate Australia JV pledge

editor@teleresearchlabs.com (Editor) — Thu, 22 Mar 2012 04:24:51 GMT

Vodafone Group and Hutchison Whampoa Ltd. affirmed a commitment to their Australian joint venture Wednesday, in the face of reports emerging from local media saying they were on the lookout for buyers for it. The two further stated they have appointed Bill Morrow, erstwhile boss of Clearwire Inc., as CEO of the JV, called as Vodafone Hutchison Australia. Morrow takes over from Nigel Dews. "We are strongly committed to Australia," Vodafone Group's chief for Africa, Middle East and Asia Pacific, Nick Read stated. "We'll continue to back our business here as it makes the significant investments needed to build the network of the future." Hutchison Whampoa Group's finance director, Frank Sixt, said the JV is a crucial part of the company's global telecommunications portfolio.

Oracle’s Q3 profit rises 18%

editor@teleresearchlabs.com (Editor) — Thu, 22 Mar 2012 04:21:41 GMT

Oracle Corp.'s fiscal Q3 profit increased 18% as the strength of new license revenue offset weaker hardware sales and diluted investor fears of corporate technology spending weakening. The technology doyen said its quarterly earnings per share were 49 cents, which beat analysts' predictions by five cents. The company further stated it is on the beam to deliver the highest operating margins in its history this year and it had turned around its weak performance last fall. "All we really needed to do was focus on our execution and we did that," CFO and co-President Safra Catz said about the company's earnings call.The company also benefited from strong demand for its Fusion applications, said Catz. "Our license revenue for applications is now 66% higher than it was just three years ago," she added.

Telenor urges Indian government to set 2G auction rolling

editor@teleresearchlabs.com (Editor) — Thu, 22 Mar 2012 04:20:19 GMT

Telenor ASA revealed Wednesday it has filed a petition with India's Supreme Court, requesting that it instruct the government to wind up the auction of 2G mobile phone licenses by June 2. "The government must end, and not prolong uncertainty," said the head of the Norwegian company's Asian business, Sigve Brekke. On June 2, the Supreme Court revoked 122 telecom licenses, including 22 held by Unitech Wireless, Telenor's joint venture with local real-estate company Unitech Ltd. On February 2 the court ordered scrapping of the licenses issued sans auctions since January 2008 to several carriers, calling the allocation process as "arbitrary and unconstitutional." It also directed the Telecom Regulatory Authority of India (TRAI) to frame fresh regulations for license auctions, and asked the government to hold auctions within a month of finalising the rules. The Indian government had later said it expects to take a minimum of 400 days from February 2 to complete a fresh auction of licenses.

Yahoo, Alibaba resume sales talks

editor@teleresearchlabs.com (Editor) — Thu, 22 Mar 2012 04:18:41 GMT

Yahoo Inc. and Alibaba have recommenced informal talks with Alibaba Group and Softbank Corp., the New York Times's DealBook blog stated Tuesday, citing people familiar with the matter. Discussions between the two over Yahoo's will to sell its shares in Yahoo Japan and majority of its stake in Alibaba had stopped last month. The informal discussions could lead to new negotiations, but it isn't clear whether there will be an outcome in the short term, the Times reported.

Swedish, Finnish govts. lower TeliaSonera ownership below majority

editor@teleresearchlabs.com (Editor) — Thu, 22 Mar 2012 04:16:57 GMT

The Swedish and Finnish governments have quit their absolute majority in TeliaSonera AB after Finland's State fund Solidium reduced its stake to 11.7% from 13.7%. Solidium revealed it sold a total of 89 million shares at SEK45.20 per share. Post sale, the two governments own 49.1% of shares in TeliaSonera, down from 51.1% earlier. Skold further said that the Swedish government would have to cut its ownership further before political obstacles to a buyout get eliminated. TeliaSonera came into existence after a merger between the Swedish and Finnish State-owned telecom companies Telia and Sonera in 2002. Even though neither government has representatives on TeliaSonera's board, the governments' involvement has influenced the company in recent years. At the telco's 2010 annual general meeting, for instance, the Swedish government, which holds 37.4% of the company, found itself with a majority of votes, and managed to place a ban on bonuses for top management that year. Solidium said the reason for the sale was to diversify its investment portfolio and better its financial flexibility.

France Telecom blasts EU

editor@teleresearchlabs.com (Editor) — Fri, 16 Mar 2012 09:59:04 GMT

France Telecom CEO Stephane Richard Thursday begin a ripping attack on the European Commission after the regulator sought information from five telecom companies relating to meetings on the standardisation of mobile telecoms. "There is nothing more transparent than these meetings. I find it scandalous that today someone dares to demand an account of these meetings," Richard told Dow Jones Newswires after speaking at a conference on globalization at the Finance Ministry in Paris.The requests from the European Union regulator went to Deutsche Telekom AG, France Telecom, Telefonica SA, Vodafone Group PLC and Telecom Italia, as well as GSMA, the trade body that represents mobile operators' interests. The companies met in a group, known as the E5, to discuss matters including market development in the European Union. Richard said the commission was informed about the meetings before they took place, a lawyer was present, and the E5 gave a precise account them to the commission afterwards. "What more do you want us to do?" Richard said.

European telcos on collusion path?

editor@teleresearchlabs.com (Editor) — Thu, 15 Mar 2012 09:54:35 GMT

Action taken by the European Commission this week has triggered rumours of possible collusion amongst five of the continent’s biggest MNOs. The regulator's competition directorate affirmed Wednesday it has sent formal requests for information about numerous meetings that took place in 2010 between the so-called E5, a group made up of Vodafone, Telefonica, France Telecom, Deutsche Telekom, and Telecom Italia. The meetings’ intention were to share views on various market developments. "The requests for information relate to the manner in which standardisation for future services in the mobile communications area is taking place," said a European Commission spokesperson, who emphasised the watchdog has not commenced formal proceedings. "These fact-finding steps do not mean that we have competition concerns at this stage," she stated. Indeed, as per a Financial Times report a lawyer was present at each meeting, and information about the content of the discussions was sent to authorities in Brussels. However, one law firm warned that regardless of whether an investigation has been launched, a formal request for information implies that the European Commission is concerned that some E5 meetings might have led to anti-competitive behaviour.

Vodafone Germany CEO planning to exit

editor@teleresearchlabs.com (Editor) — Thu, 15 Mar 2012 09:53:29 GMT

Friedrich Joussen, CEO of Vodafone Group PLC's German operations, announced Wednesday he will leave his post later this year. The unit's supervisory board will decide on March 29 on a proposal to name Jens Schulte-Bockum as his replacement from October. Schulte-Bockum presently heads Vodafone's operations in the Netherlands. Joussen didn’t comment on his future plans. A spokesman said the company would like to keep Joussen in the company.

Verizon to broaden LTE rollout, launch only LTE-enabled handsets

editor@teleresearchlabs.com (Editor) — Thu, 15 Mar 2012 09:52:18 GMT

Verizon Wireless is planning to lure more subscribers to its 4G mobile broadband network by including 10 million more Americans than earlier expected by year's end and only launching smartphones that are able to tap the LTE network. The telco has invested billions into constructing and promoting the 4G LTE network, but has drawn just 5% of its subscribers to the faster network, as it has struggled to convince them to upgrade from their 3G devices, most prominently Apple Inc.'s popular iPhone. The company said that for the rest of this year, it would only unveil smartphones capable of running on its 4G LTE network. The statement indicates any new iPhone this year will be 4G LTE-capable.

Clearwire, Leap Wireless enter into LTE wholesale deal

editor@teleresearchlabs.com (Editor) — Thu, 15 Mar 2012 09:51:02 GMT

Clearwire Corp. has okayed a five-year wholesale agreement to supply Leap Wireless International Inc.'s Cricket brand with LTE network services, taking Clearwire's wholesale strategy further. Prepaid wireless service Cricket is the second carrier to enter into such an agreement for Clearwire's upcoming LTE network. Leap Wireless President and CEO Doug Hutcheson said "We believe this agreement with Clearwire provides us with an attractive option to supplement our own LTE build-out strategy and gives us the flexibility to access additional 4G capacity where needed as data-centric devices continue to become more popular." Cricket presently plans to deploy LTE across about two-thirds of its current network footprint over the next two to three years. Financial terms of the agreement weren't revealed.

Argentina – Grupo Clarin Q4 NP nosedives 47%

editor@teleresearchlabs.com (Editor) — Tue, 13 Mar 2012 10:12:40 GMT

Argentina's largest multi-media company Grupo Clarin SA Monday reported its Q4 net profit plunged down 47% to 83.9 million pesos ($19.3 million) from ARS157 million in the year ago period. Sales rose 33% to ARS2.84 billion due to greater ARPU and subscriber growth in the cable TV and Internet access businesses. Revenue was also helped from higher advertising sales in the divisions of broadcasting and programming as well as printing and publishing. EBITDA climbed 8.9% to ARS656.3 million. However, the company's EBITDA margin shrank to 23.1% from 28.3% a year ago. Clarin's cable TV subscribers in Argentina increased 3.7% Y-o-Y to 3.26 million at December end, while Internet subscribers rose 19.8% to 1.35 million. In February, Clarin said it was approached by a third party interested in buying or forming a business alliance with its subsidiary in Paraguay.

Brazil’s Telefonica to axe 1,500 jobs

editor@teleresearchlabs.com (Editor) — Tue, 13 Mar 2012 10:11:33 GMT

Telefonica Brasil SA intends to cut 1,500 of its staff in Sao Paulo and Rio de Janeiro as a result of the merger of the it's fixed and mobile operations, the Sao Paulo State telecom workers union, Sintetel, disclosed in a statement. The union said that Telefonica wanted an even bigger reduction in force, but the unions were able to negotiate it down to 1,500. They did not reveal how many cuts were initially sought. The job cuts are equivalent to about 8% of the telco’s total work strength of about 18,885 as of December 2011. Employees can opt for a voluntary redundancy program between March 12 and 14, the union said. The redundancy program’s details weren’t immediately available.

Nokia to pull out of mobile money business

editor@teleresearchlabs.com (Editor) — Tue, 13 Mar 2012 10:10:17 GMT

Finnish Nokia Corp., the globe's biggest handset manufacturer by unit shipments, revealed Monday it’s planning to close down its Mobile Financial Services business, including a Nokia Money service it recently began in India, as part of its strategy to move out of non-core business areas. Nokia didn't disclose when the unit will shut down. "It's not going to happen overnight and consumers already using the service are not at risk," Nokia spokesman Mark Durrant revealed to Dow Jones Newswires. Nokia launched the business in 2009 targeted at bringing secure electronic payments to masses without a bank account, with a primary focus on upcoming markets. As part of this process, it formed an alliance with Yes Bank in India two years back, and later with the larger Union Bank of India. Three months ago, Nokia came up with Nokia Money, a scaled-back version that enables cash transfers between mobile phone users.The service was only begin in India. "Our services will continue to operate while we work with our banking, market and technology partners as well as our employees, agents and others to plan future options in accordance with all customer and regulatory requirements," Nokia stated.

Project Oscar might float by April

editor@teleresearchlabs.com (Editor) — Mon, 12 Mar 2012 09:53:16 GMT

UK mobile money joint venture Project Oscar said Friday it has officially filed its plans to the European Commission in an attempt to secure the necessary regulatory approval it requires in order to commercially launch services. The combined venture between Vodafone, Everything Everywhere, and O2 – Project Oscar submitted its application to the European Commission on Monday, as per a report by The Guardian. The regulator has 25 days to approve the proposals, ask for any amendments, or extend its investigations, which implies Project Oscar is likely to be given the required approval by early April. However, the Commission could also defer the process back to UK regulatory bodies if it so feels.

Verizon to close numerous help sites

editor@teleresearchlabs.com (Editor) — Mon, 12 Mar 2012 09:46:12 GMT

Verizon Wireless would be shutting several US locations over the next few months where it services customer complaints and inquiries, shedding around 3,175 jobs. The largest US telco, with approximately 85,000 employees, will make the changes by the end of the third quarter, a spokesman revealed. The affected employees, who aren't unionised, are being offered one of three options - jobs in neighboring locations,$10,000 post-tax toward the cost of relocating to a new post or a severance package. The spokesman refused to say what the annual savings would be as a result of the changes."This was a difficult but necessary decision," said the spokesman, Tom Pica."We wanted to maximise our resources and improve customer care."

Etisalat to wind up India ops by March end

editor@teleresearchlabs.com (Editor) — Mon, 12 Mar 2012 09:44:37 GMT

Emirates Telecommunications Corp., better known as Etisalat, Friday announced it will stop its mobile phone services in India on March 31, as part of the company's earlier decision to quit operations in the country that’s passing through an uncertain telecoms climate. Etisalat had last month said it would shut Indian unit Etisalat DB Telecom Pvt. Ltd.'s operations, after the Supreme Court revoked122 licenses for 2G phone services issued to several companies in 2008 on complaints of corruption in their allotment. That icluded 15 licenses of Etisalat DB.

India commences consultation on 2G auction

editor@teleresearchlabs.com (Editor) — Mon, 12 Mar 2012 09:41:53 GMT

India's telecom watchdog - The Telecoms Regulatory Authority of India (TRAI) last week launched a consultation paper that seeks to establish the framework for its upcoming re-auction of 2G licences. TRAI is seeking comments from local telcos on the quantity of spectrum to auction, the liberalisation and refarming of airwaves in the 800 MHz and 900 MHz bands, and the eligibility criteria for prospective participants. The consultation also aspires to come up with a reserve price, as well as rules governing rollout obligations, spectrum usage charges and spectrum trading.

Google activates privacy policy, ignores French, EU concerns

editor@teleresearchlabs.com (Editor) — Mon, 05 Mar 2012 06:58:39 GMT

Google Inc. on Thursday implemented polemical changes to its privacy policy, despite requests from French and European Union data protection authorities to delay the activation. The French data protection authority, CNIL, said that it has begin a probe into Google's privacy policy on behalf of the EU. CNIL is of the view that Google has breached European rules on the matter. In a letter to Google CEO Larry Page, CNIL and the EU data protection authority requested that the company "pause" the rollout of its new privacy policy, which the two think is complicated for average users to comprehend. "The CNIL and the EU data protection authorities are deeply concerned about the combination of personal data across services: They have strong doubts about the lawfulness and fairness of such processing, and about its compliance with European data protection legislation." In a statement released Thursday, the EU commissioner responsible for justice and fundamental rights, Viviane Reding, expressed regret at the Internet giant’s move, stating it is "unfortunate" that Google went ahead with a change in its privacy rules before addressing concerns raised by French authorities.

Samsung wins on slide-to-unlock feature in Germany

editor@teleresearchlabs.com (Editor) — Mon, 05 Mar 2012 06:56:57 GMT

The fight for smartphone leadership playing out through case-by-case bickerings over patent infringements, spanning courtrooms and technology companies across the globe, took another twist Friday with both Apple Inc. and Samsung Electronics Co. Ltd. being winners and losers. A German court dismissed a patent violation suit by Apple Inc. against Samsung Electronics Co. Ltd. over slide-to-unlock technology, and also rejected an allegation by Samsung that Apple infringed one of its 3G wireless patents. The court's decision on slide-to-unlock revolved around the manner in which the brush of a finger across a screen unlocks a device. Apple's unblocking function has an on-screen start and end point and functions when a finger sweeps in a roughly straight line. However, Samsung's slide-to-unlock feature differs in that it enables "gestures of any path between start and target," presiding judge Andreas Voss told the courtroom. Legal disputes over patents in the smartphone industry have risen across the globe as telecoms players battle for supremacy of the booming market. Sales of smartphones and tablets have shot up in recent years, resulting in a barrage of lawsuits involving Apple, Motorola Mobility Holdings Inc., Samsung, HTC Corp. and others.

Vodafone India rearranges top brass for IPO preparation

editor@teleresearchlabs.com (Editor) — Mon, 05 Mar 2012 06:55:36 GMT

Following in the footsteps of bureaucratic change since appointing Analjit Singh as its non-executive Chairman last month, Vodafone India Ltd. has made other significant changes to its top management, creating roles of a Chief Operating Officer and Chief Commercial Officer, as per an internal email seen by Dow Jones Newswires Friday, as the telco readies for a possible listing. India's third-biggest telco by subscribers named Sunil Sood and Sanjoy Mukerji as Chief Operating Officer and Chief Commercial Officer, respectively, Chief Executive Marten Pieters said in the email sent to employees. Vodafone further came up with four new operations directors for the northern, eastern, western and southern regions of the country. Besides, it also created a new position focussing on external affairs, to be filled up shortly. "Non-regulatory government focus will become critical in the future, given our plans to list the company," Pieters said. Samaresh Parida, director of strategy, has been asked to focus on the preparation of an initial public offering, Pieters stated. Vodafone has commenced the groundwork for the IPO by appointing financial advisory firm Rothschild, a person familiar with the matter told Dow Jones Newswires in January. Broker Sanford C. Bernstein said in a recent report it expects an IPO of Vodafone's Indian business to be announced later this year, potentially raising £3.4 billion ($5.42 billion) for a 30% stake.

Nigeria’s NITEL, MTEL to shut down

editor@teleresearchlabs.com (Editor) — Mon, 05 Mar 2012 06:54:27 GMT

Nigerian Telecommunications Ltd., the country's State-owned fixed-line telecoms operator, and its mobile wing M-TEL would be getting liquidated after the companies have got laden with humongous debts, Nigeria's Bureau of Public Enterprises (BPE), which is in charge of the privatisation of State-owned companies, announced last Thursday. BPE spokesman Chukwuma Nwokoh stated the council has approved "guided liquidation" for NITEL and M-TEL "in view of the huge liabilities of both companies."The government has been attempting to sell both companies since 2006. In 2009, their operations were put in charge of a government-appointed technical committee, which was required to privatise the companies. The committee suggested the guided liquidation of both firms and said that "there was no viable financial alternative presented by the management of NITEL and M-TEL." The Nigerian government in June 2009 blocked the sale of NITEL and M-TEL to Transnational Corp. of Nigeria PLC, claiming that Transcorp didn’t follow the terms of the sale. In 2006, Transcorp bought 51% of NITEL and M-TEL, with the Nigerian government holding the rest 49%. But Transcorp was unable to properly fund the companies' operations, the government said. Nwokoh didn't offer more details on the process.

AT&T puts the curtains on unlimited buffet

editor@teleresearchlabs.com (Editor) — Mon, 05 Mar 2012 06:51:39 GMT

AT&T Inc. is doing away with unlimited data plans, saying it won’t now let its subscribers use more than a set volume of data per month without penalty. Under a new policy, AT&T will reduce download speeds for unlimited smartphone customers who go over 3 gigabytes usgae a month – that’s approximately 5 HD movies, or 5 gigabytes if they are 4G LTE users. The telco had earlier been slowing speeds, called ‘throttling’ in telecoms lingo, for customers who were in the top 5% of data users. AT&T has been attempting to manage capacity on its network vis-a-vis heavy data consumption by users of smartphones and tablets such as Apple Inc.'s iPhone and iPad owing to limited availability of wireless spectrum. The company is spending billions to construct a new 4G mobile-broadband network that can handle more data traffic.

Turkcell working on churn prediction model, launching m-commerce in W. Europe

editor@teleresearchlabs.com (Editor) — Fri, 02 Mar 2012 09:00:01 GMT

Turkcell Technology said this week it’s working on a product that will help operators forecast churn, and revealed details of its recent developments in the mobile money segment. The company further said it intends to expand into Western Europe later this year through its mobile financial services and marketing capabilities. Turkcell Technology is a wholly-owned subsidiary of Turkcell that provides ICT products and services to its parent company and others outside Turkey. Till now, its focus has been on the Middle East, North Africa and the CIS countries, but now it’s eying Europe as the next lucrative market. Primary areas of focus for Western Europe will be near-field communications (NFC), mobile financial services, and mobile marketing, all of which it has been working diligently on on its home turf. Its NFC-based Cep-T Para mobile money platform, which users to integrate all their bank and loyalty cards into the mobile handset, commenced in mid-2011. It differs from other similar services as customers can link it to more than one bank account.

Motorola envisages device-related tiered content pricing in future

editor@teleresearchlabs.com (Editor) — Fri, 02 Mar 2012 08:58:50 GMT

Content service providers are likely to come up with price plans tied specifically to the number of screens consumers want to access their content on, envisages Motorola's Home division. Presently, web-based players like Netflix and big broadcasters like BSkyB enable end users to stream content to PCs, games consoles, connected TVs and mobile devices for a flat fee, but Motorola expects these pricing models could be turning sophisticated and tailored to specific devices. With a rising volume of video now being accessed online both from conventional content producers and user-generated content websites like YouTube, the challenge for operators is how to deliver it all as a smooth experience to end users. Steve McCaffery, EMEA vice president of Motorola Mobility's Home business "Video is coming from multiple sources. It all needs to be encoded, encrypted, and it will all need to be managed in the network." Towards this, service providers are also having to invest in new compression technologies that make it possible for them to deliver high quality video content via mobile networks.

Mobile Technology to make wallets extinct - Visa

editor@teleresearchlabs.com (Editor) — Fri, 02 Mar 2012 08:54:49 GMT

Financial services specialist Visa claimed this week that mobile wallet services would develop to a point in future that the next generation would cease to keep an actual wallet. Speaking at Mobile World Congress, Barcelona, Visa President John Partridges said "The work that we will do (in mobile wallets) will allow the people born in the last five year to never have a physical wallet." However, Partridges did reiterate for that to become successful and gain a mass market appeal operators will have to handle issues around trust, security and privacy. And Michael Abbot, CEO of ISIS - the US mobile wallet JV between AT&T, T-Mobile USA, and Verizon - stated operators shouldn’t use customer information gathered through mobile financial services for other purposes like targeted services.

TeliaSonera, Telenor Danish JV gets cleared

editor@teleresearchlabs.com (Editor) — Fri, 02 Mar 2012 08:53:25 GMT

Nordic telcos TeliaSonera AB and Telenor ASA have gotten approval from the Danish Consumer and Competition Authority Wednesday to form a joint company for running their combined mobile networks. In June 2011, both announced that they would launch a partnership in Denmark and merge their radio access networks, consisting of the antennas, towers and transmission equipment required for mobile traffic. The two also said they would form a common infrastructure company, Newco, to make and run the joint network. Nonetheless, the approval is subject to numerous conditions. In a documented statement, the authority said both companies may only bid on new spectrum licenses through Newco. They will also need to sell or rent excessive antenna space to competitors, while employees and board members at Newco are barred from exchanging information that is sensitive to competition.

C&W Worldwide shares leap on Tata’s buying interest

editor@teleresearchlabs.com (Editor) — Fri, 02 Mar 2012 08:52:00 GMT

Cable & Wireless Worldwide’s shares initially rose 25% Thursday as India's Tata Communications Ltd. became the second company after Vodafone Group PLC to formally express an interest in purchasing Cable & Wireless Worldwide PLC. Tata is evaluating a potential cash offer for the British fibre optic network company; however, it stated things are at a "very preliminary stage" in a filing with the UK's Takeover Panel. Cable & Wireless Worldwide noted Tata's interest, but didn't say anything on the probability of the purchase, which could total over $1.4 billion at the target's current market capitalisation.

Brazil to catapult LTE drive in South America

editor@teleresearchlabs.com (Editor) — Thu, 01 Mar 2012 07:32:27 GMT

Brazil is preparing to auction spectrum appropriate for LTE services, a move that is likely to stimulate rollout of the technology in the Latin American region as a whole. As per Erasmo Rojas, director of Latin America and Caribbean at 4G Americas, there’s a big auction scheduled for May through which the country will sell 140 MHz of spectrum in the 2.6-GHz band. There will be three 2x20-MHz countrywide licences available, and one 2x10-MHz licence. Simultaneously the country will allocate spectrum in the 450-MHz band for rural coverage. The regulator's public consultation regarding the allocation process would be ending Friday, with rules to be published in mid-April so the auction can take place the month thereafter. Rojas said it’s necessary for the network to be completed by the end of 2013 for it to be ready ahead of the football World Cup in summer 2014. Latin America is already home to numerous LTE services. ″The operators have been trialling LTE for two years... (and as of end-2011) we have five commercial networks,″ Rojas said. There are two LTE networks in Puerto Rico, one in Uruguay and one in Colombia, plus a network based on the TDD variant of LTE in Brazil, he added. ″There will be other (spectrum) auctions this year,″ Rojas predicted.

Qtel mulling network sharing, joint procurement

editor@teleresearchlabs.com (Editor) — Thu, 01 Mar 2012 07:30:35 GMT

Qatar's Qtel is contemplating various options to enable it to trim costs, including sharing infrastructure with other carriers and partnering to achieve scale efficiencies, the company's group CEO Dr. Nasser Marafih revealed Wednesday, speaking at the Mobile World Congress at Barcelona. Taking advantage of the economies of scale is crucial for operators in the present economic climate. Qtel has operations in 17 markets in the Middle East, north Africa and Asia, and is concentrating on ″creating more synergies out of that,″ Marafih said. Marafih also postulated coadunation within the Middle East and north Africa region will help operators generate the scale required. In Qatar the telco is, for now, focusing on its fibre-to-the-home (FttH) network launch, the first services having been rolled out earlier this year, and, on the mobile side, LTE, for which the company is targeting a countrywide coverage by the end of the year.

India’s 2G auction rerun to take over 400 days

editor@teleresearchlabs.com (Editor) — Thu, 01 Mar 2012 07:29:05 GMT

A minimum of 400 days is what the Indian government now expects for the the scam-marred 2G spectrum auction of 2008 to be completed anew, a top official announced Wednesday, killing hopes of MNOs affected by a recent Supreme Court ruling that cancelled their licenses, procured post january 2008 on a first-come first-serve basis post the auction, which was deemed illegal by the court. The order, revoking 122 licenses, would become operational after four months from February 2, when the decision was announced. Initially, the Telecom Regulatory Authority of India (TRAI) was directed by the court to finish the new 2G spectrum auction within four months – but the hopes were throttled when experts envisaged it would take far longer for it to be accomplished. Telecom Secretary R. Chandrashekhar told reporters at an industry event that the government is contemplating legal options including filing a clarification plea or a Presidential reference, which enables the President to seek the Supreme Court's view on issues of public importance. The government will make a decision on what option it will go along with by the end of this week, he said further. The Supreme Court's decision implies that the billions of dollars companies such as Japan's NTT DoCoMo Inc., Norway’s Telenor ASA, and Russia's AFK Sistema have invested in India are now in danger. It also raises questions about the foreign investment climate in Asia's third-largest economy because of a dubious telecom policy environment.

Telekom Austria plans mega M2M expansion

editor@teleresearchlabs.com (Editor) — Thu, 01 Mar 2012 07:27:25 GMT

Over 10 million machine-to-machine (M2M) connections by 2015 – That’s what Telekom Austria is targeting to accomplish by 2015, with the internal aim for a number a bit higher, stated CEO Hannes Ametsreiter, while speaking at a reception hosted by the company in Barcelona Tuesday. The telco established its M2M unit in September last year, ending 2011 and its first quarter of operation with 19 projects worth a total of €5 million, and approximately 500,000 connections. That total has since increased to about 1 million. Bernard Liebscher, Managing Director of Telekom Austria M2M, and Phat Huynh, head of sales and marketing, said the unit's primary industry verticals include fleet and freight management; agriculture; healthcare; and energy, particularly smart metering. Liebscher stated "There are an estimated 1 million M2M connections in Telekom Austria Group countries and counting, but [in these markets] there are approximately 20 million vehicles, 50 million buildings, 30 million energy meters and 20 million dogs, cats and cattle running around. There are hundreds of thousands of packages that need to be delivered on time every day.” He said the company’s M2M wing will not be consumer-facing, rather concentrating on business-to-business verticals, but admitted that industries such as the consumer electronics sector also represents a tremendous M2M opportunity.

LightSquared’s CEO steps down post regulatory setback

editor@teleresearchlabs.com (Editor) — Thu, 01 Mar 2012 07:25:56 GMT

Chief Executive and an Executive Vice President, LightSquared Inc.'s Sanjiv Ahuja, after working without a contract since July 2011, quit his post in the aftermath of a regulatory blow delivered by the Federal Communications Commission (FCC) that has forced the wireless venture to reconsider its multibillion-dollar strategy to launch a new 4G network. Martin Harriman, the Executive Vice President of ecosystem development and satellite division will also be bidding goodbye, said one of the people familiar with the situation. Ahuja though, will remain Chairman, and billionaire Philip Falcone, whose Harbinger Capital Partners hedge fund is the company's primary backer, will join the board to help in scouting for a new CEO. LightSquared faces an unpredictable future. The FCC this month said it would abjure an abdication that would permit the company to use satellite airwaves for a terrestrial network, citing concerns the network could meddle with Global Positioning System (GPS) signals. The company got the conditional FCC waiver in 2011 and expected to compete with AT&T Inc., Verizon Wireless and others in selling wireless spectrum, wholesale to wireless operators. The company claims to be the pawn of prejudiced testing and said GPS device makers should be mandated to pay for filters to protect their equipment from signal interference. Meanwhile, it is contemplating a plan to exchange its spectrum with some held by the Defense Department as a final effort to resolve the GPS interference concerns. Chief Network Officer Doug Smith and Chief Financial Officer Marc Montagner were named interim co-Chief Operating officers as LightSquared begins the quest for a new CEO. A company spokesman refrained from commenting on whom the company was considering for the position. It’s board of directors will meet on Thursday to discuss CEO candidates, among other matters, two people said.

Bharti Airtel taps NSN to build 4G network

editor@teleresearchlabs.com (Editor) — Thu, 01 Mar 2012 07:23:57 GMT

India’s biggest telco by subscribers, Bharti Airtel Ltd., revealed Wednesday it’s chosen Nokia Siemens Networks (NSN) to construct and function 4G mobile broadband network to provide high-speed Internet services in the western Indian State of Maharashtra. Though the company didn’t provide any financial details, a person claiming to have knowledge of the matter said it’s worth €100 million. The equipment vendor would provide network design, integration, commissioning and optimisation services to Airtel for a fast commercialisation of the network. The company possesses broadband licenses in the circles of Karnataka, Maharashtra, Kolkata and Punjab, which it won by paying nearly $740 million to the government in 2010. NSN already manages and maintains the basic 3G mobile phone networks for Airtel in eight of India's 22 telecom circles.

World’s first ‘TD-LTE’ network debuts in UK

editor@teleresearchlabs.com (Editor) — Thu, 01 Mar 2012 07:22:17 GMT

UK Broadband flipped up the switches on its TD-LTE infrastructure in London and shared plans to provide wholesale services on it. The company has constructed what it is touting to be the world's first TD-LTE network in the 3.5 GHz spectrum band in the Southwark area of London. The network, based on equipment provided by Huawei, is primarily for substantiation purposes as the company attempts to lure potential customers. It will be building additional network in areas as per requirement. The commercial launch will be on May 1, from when the company will offer a home hub-type of broadband access point. Its first mobile device, a cartable Wi-Fi hotspot, will follow in September; it’s presently appraising proposals from four vendors eager to supply the product. By June 2013 a Huawei smartphone would be launched that will function both on its frequency and in the 2.6-GHz band, as well as on standard 3G networks to provide full coverage. UK Broadband is still to announce which carrier it will use as its roaming partner in areas where there is no TD-LTE coverage.

Automobiles on the next M2M milestone?

editor@teleresearchlabs.com (Editor) — Wed, 29 Feb 2012 10:39:50 GMT

Operators might be formulating data plans for automobiles in times ahead, Qualcomm claimed on Tuesday, after Ford Motor Company executive chairman Bill Ford underlined the necessity of cooperation between the motor and telco industries. The company’s senior vice president of business development, Kanwalinder Singh said “Smartphones are a very large market and automobiles and tablets are right behind that,” while suggesting carriers could charge subscribers a specialised data plan specifically for their connected vehicle. Singh envisages the two biggest sectors to fuel the Internet of everything are automotive and energy. Ford, on the other hand, warned during a keynote presentation Monday evening that without interconnected vehicles and smart technology there will be a global blockage in 2050 that will bollix transportation, as the number of cars on roads roars to 4 billion. The great-grandson of Henry Ford also detailed his dream of an interconnected transportation network, where vehicles broadcast location-based data between vehicles to enable automatic parking and navigation.

EU smacks Vodafone’s ears for grumbling about excessive regulation

editor@teleresearchlabs.com (Editor) — Wed, 29 Feb 2012 10:38:06 GMT

European Commissioner Neelie Kroes stepped down heavily on Vodafone PLC Tuesday after its CEO Vittorio Colao complained about regulated cuts to telephone rates. In a statement that she called a "message to Vittorio and Vodafone," Kroes, who is commissioner in charge of the Digital Agenda, said she is calling the company's bunco and that she doesn't "respond well to threats." "I take the side of the Vodafone customer... If consumers lose the fear of using their smartphones and tablets (because of lower fees) when travelling across Europe, operators will benefit as well," Kroes said. The revert could be a harbinger of ramping up a melee with Europe's telecom sector which is annoyed over large investment costs while facing an economic crisis. Speaking at the Mobile World Congress in Barcelona Colao had complained that with many European economies in the grip of economic contraction this year, revenue for carriers is diving off the deep end of the cliff. European plans to slash roaming costs that operators charge each other for using their networks has also aggravated the issue, Colao stated, while calling for a moratorium on regulation. More regulation would make it tougher to substantiate the expense of constructing networks required for 4G telephony services, he warned. The discord is crucial because numerous mobile operators have expressed concerns that the EU is pushing too hard with zealous aspirations to extend broadband usage, even though telecom revenue in the continent as a whole has been falling for three successive years - a situation unlike that of in any other region. The telcos are also facing humongous payouts in auctions to purchase the spectrum required for ultra-fast 4G broadband services. The EU is aiming for a single European market for telephone rates, bringing travelling costs closer to domestic call charges. European Consumers' Organisation BEUC said a recent study found almost three-quarters of travellers restrict their phone use when abroad owing to steep charges which are frequently thrice as much as calls made in their home countries.

Cisco small cell solution to be adopted by AT&T et al.

editor@teleresearchlabs.com (Editor) — Wed, 29 Feb 2012 10:36:42 GMT

AT&T is one amongst seven carriers deploying/ trialling Cisco's combined Wi-Fi, 2G, 3G, and LTE small cell platform, the equipment vendor said Tuesday. Cisco’s small cell solution consists of a Wireless Broadband Alliance (WBA)-certified Next Generation Hotspot (NGH) supported by a small cell gateway. Jointly they can smoothly flip between 2G, 3G, LTE, and Wi-Fi air interfaces and give the user an uninterrupted experience while enabling the operator to release the stress off their cellular access network. The technology facilitates online services like video streaming to remain continuous at the application level, despite there being different IP addresses for cellular and Wi-Fi networks. The customer won’t be required to reload the application when the traffic is handed over.

Small cells to grab 88% chunk of total mobile base stations by 2016

editor@teleresearchlabs.com (Editor) — Wed, 29 Feb 2012 10:35:31 GMT

Small cells’ deployment globally would be increasing 20-fold to 62.4 million in 2016, a rise from 3.2 million this year, to account for 88% of all base stations, as per a new report from Informa Telecoms & Media that was released at Mobile World Congress on Tuesday. "In the course of this year there will be more femtocells than macro cells for all technologies combined (2G, 3G, LTE)," postulated Simon Saunders, Chairman of the Small Cell Forum. Small cells have established they are "useful well beyond the office and home environment they were originally developed for," he said further. MNOs are looking to small cells to assist them increasing the capacity of their networks to tackle rising data demand. Besides, there is a trend from the vendor side towards incorporating Wi-Fi capability into small cells. ip.access, for instance, recently this month revealed its first LTE-capable small cell solution with space for Wi-Fi, in case its operator clients need it. On the other hand, Cisco Tuesday announced that seven operators have committed to deploying or trialling its integrated Wi-Fi, 2G, 3G, and LTE small cell platform. "This (combined Wi-Fi and 3G) becomes not just offloading traffic but managing traffic," Saunders said. Carriers can automatically hand traffic across to Wi-Fi when it is available. Femtocells will see the highest growth, with a 24-fold rise resulting in 59 million femtocells deployed by the end of 2016, compared with 2.5 million presently. Meanwhile, public access small cells, a.k.a. microcells and metrocells will grow fivefold to 2.9 million, with picocells rising fourfold to 540,000.

Telefonica adopts chary targets despite robust growth

editor@teleresearchlabs.com (Editor) — Mon, 27 Feb 2012 11:44:49 GMT

Assisted by a thumping contribution from its Latin American operations and tax benefits Telefonica SA registered a healthy profit growth Friday. However, the telco has set a guarded approach for 2012 prospects. Europe's second-largest telco by market worth after Vodafone Group PLC, Telefonica’s net profit reached €2.67 billion in the quarter ending December 31, doubling from €1.33 billion in the same quarter of 2010 and substantially beating analyst predictions of €1.68 billion. The result consists of a €952 million boost from a reversal of deferred tax liabilities because of the 2010 purchase of a controlling stake in Brazil's operator Vivo. Taking out extraordinary items the results were only little above expectations. Telefonica also said it’s expecting a rise in 2012’s revenue of just above 1%, adding that the depletion in its operating margin this year is likely to be slower than in 2011. Revenue in Q4 was €16.2 billion, a drop of 1.8% from the same quarter a year ago. The company’s subscriber base rose 7%, mainly through aggressive expansion in Latin American markets such as Brazil and Mexico, an expensive measure due to the requirement to subsidise handsets to lure subscribers. The telco also reiterated its commitment to distribute €1.5 per share return to shareholders this year, just two months after it was forced to slash that from €1.75 per share, a positive indication, for a company that banks on a high dividend payout to charm foreign investors fearful of holding Spanish shares. Telefonica's domestic unit, until 2008 the company's major cash generator, posted a 7.6% decline in revenue last year and witnessed its operating result halved, partly owing to costly layoffs in the unit. Telefonica said it’s now concentrating on cutting churn in its underperforming domestic unit, looking to maintain high-end customers and marketing product bundles including cheap texting via SMS.

Nokia clinches world’s top slot in Windows Phone sales

editor@teleresearchlabs.com (Editor) — Mon, 27 Feb 2012 11:43:26 GMT

As per a study by Strategy Analytics the world’s biggest handset manufacturer sold more smartphones running on Microsoft Corp.'s Windows Phone operating system than any other handset maker in Q4 last year. Out of the 2.7 million Windows Phone devices sold in the quarter, Nokia Corp. accounted for 33% of the poie at 900,000 units. Nokia's growth was catalysed by a broader range of Windows Phone 7 models like the Lumia 800, a rise in retail presence and highly prominent marketing campaigns across numerous European and Asian countries. The quarter saw Nokia overtaking HTC Corp., which also lost ground to Samsung Electronics Co. Ltd. in the Android division. In October, Nokia started marketing two new Windows Phone devices, the Lumia 800 and the Lumia 710, which came just eight months after the Finnish vendor entered a partnership with Microsoft that made Windows Phone the operating system of choice for Nokia’s smartphones.

Telecom Italia manages 2011 well but slashes dividend

editor@teleresearchlabs.com (Editor) — Mon, 27 Feb 2012 11:41:22 GMT

Telecom Italia SpA Friday revealed it intends to cut its dividend; however, a peppy underlying performance somewhat soothed the disappointment. The planned €900 million dividend is a 25% drop from the year ago but will "set the floor" for years ahead, Chairman Franco Bernabe said on a conference call. He said the payout was affected by Standard & Poor's downgrade of the country’s sovereign credit rating to BBB+, which led to tougher funding enviornment for Italian companies. Telecom Italia will do whatever necessary to maintain its own triple-B rating, he said. The telco managed to hold up quite well in its acerbity-strapped domestic market. Domestic revenue dropped by just 4.8% to €19 billion in 2011, and the pace reduced in the fourth quarter, the company said Friday. Consolidated EBITDA increased 7.3% to €12.25 billion, a tad above expectations, while group revenue climbed 8.7% to €30 billion. On a conference call, the company management briefed about new targets aimed at a reduction in net debt to €25 billion by the end of 2013, from €30.4 billion at the end of 2011, after which the dividend could be raised. CEO Marco Patuano said that domestic businesses would be run with an aim to producing cash while the company continues to expand in Brazil and other Latin American countries. Cumulated EBITDA through 2014 is likely to rise by €38 billion, with 60% of that equal to cash generation, he said.

Cisco to acquire Lightwire for $271m

editor@teleresearchlabs.com (Editor) — Mon, 27 Feb 2012 11:40:03 GMT

Cisco Systems Inc. would be purchasing Lightwire Inc., a developer of high-speed optical transceivers, for $271 million in cash as it attempts to tackle the rising networking demands for data-centre and service providers. Cisco said privately held Lightwire has blended multiple high-speed active and passive optical functions onto a small silicon chip, enabling switches, routers and optical transport systems to achieve higher-density optical connectivity at a reduced cost. Surya Panditi, senior VP of Cisco Service Provider Networking Group, stated "With the combined know-how from Cisco in silicon design and Lightwire in CMOS [complementary metal oxide semiconductor] photonics, we will transform Cisco's optical connectivity business to an integrated technology platform that supports our customers' burgeoning need for cost-effective high-speed networks." The company said the deal is likely to be completed in the third quarter. Earlier this month Cisco reported its fiscal Q2 earnings jumped 43% as its revamped focus on networking equipment contributed to an 11% revenue increment.

Virgin Media contemplating LTE spectrum bid

editor@teleresearchlabs.com (Editor) — Mon, 27 Feb 2012 11:38:51 GMT

Virgin Media could be looking to participate in Ofcom’s upcoming LTE spectrum auction, as per a source claiming to have knowledge of the matter. The fixed-line operator is scouting all options pertaining to high-speed mobile technology, including acquiring spectrum via the forthcoming auction later this year. The revealation is in conjunction with the company’s announcement last week it has been conducting trials in London of LTE small cells that backhaul mobile data over its fibre optic network.

Google to get rid of Clearwire stake at nearly 1/2bn loss

editor@teleresearchlabs.com (Editor) — Mon, 27 Feb 2012 11:37:23 GMT

One of the early investors in wholesale mobile broadband provider Clearwire Corp., Google Inc. would be selling off its entire 6.5% stake at a loss of almost $453 million. At a sale price of $1.60 each, the Internet major would sell its 29.4 million Class A shares for $47.1 million - a 91% discount from its initial investment in the company in 2008. It would first be offering the stake to other Clearwire investors starting Monday before offering them to the general public after five days. Google said in its filing "Google periodically rebalances its investments based on its goals and its evaluation of market conditions," without offering further details. Representatives from both companies refused to comment. Clearwire shares recently fell 5.1% to $2.15 . Last week Clearwire warned it could require raising more capital to fund its operations after year end and said it might no longer provide debt secured by its valuable network assets. It intends to spend $600 million for constructing a new 4G LTE mobile broadband network over the next couple of years. Clearwire, founded in 2003 by cellular pioneer Craig McCaw, was reorganised in 2008 as part of a deal that amalgamated the company with former Sprint Nextel Corp.’s operations and included the first cash inflow from Sprint and partners that comprised of Comcast Corp., Intel Corp., Time Warner Cable Inc. and Bright House Networks LLC. Clearwire made the country's first 4G network based WiMAX and provides Sprint's the zippier data service. A spokesman for Sprint, which has a 49% voting stake in the Clearwire, refused to comment. The cable companies may also quit Clearwire shortly as they appear to be backtracking from providing wireless services. The companies, a short while ago, reached an understanding to sell Verizon Wireless a chunk of wireless spectrum, for approximately $3.9 billion and to resell the operator's services in their stores.

Apple achieves initial victory regarding sought Shanghai iPad ban

editor@teleresearchlabs.com (Editor) — Fri, 24 Feb 2012 09:47:43 GMT

Apple Inc. managed to secure a breather vis-à-vis its entaglement with Chinese computer maker Proview Technology (Shenzhen) which wants iPads to be banned in the metro city of Shanghai, claiming it owns the Chinese rights to the "iPad" name. A local court has rejected Proview’s request to stop iPad sales in the city untill the larger trademark case is heard. However, Proview Technology has managed to jump the gun and already accomplished having iPads removed from a few Chinese stores. Apple tasted defeat in a similar case over the iPad name in Shenzhen, but it is appealing that ruling. The Chinese company has also tried to have Apple banned from exporting iPads out of China, but commentators aren’t hopeful of its chances of success towards that. Proview Technology maintains that when Apple purchased the iPad trademark from a Taiwanese subsidiary in 2009, the sale was fallacious, claiming it had no knowledge of its subsidiary's action, and that the subsidiary didn’t have authorisation to sell the name. But Apple has come up with documents in court which it claims proves that the parent was aware about and authorised the sale.

Hungary – Magyar Telekom, Telenor to hold spectrum swap talks

editor@teleresearchlabs.com (Editor) — Fri, 24 Feb 2012 09:46:25 GMT

Magyar Telekom Nyrt. will commence discussion with the Hungarian wing of Norway's Telenor ASA about reallocating mobile spectrum blocks that each purchased in an auction January, in accordance with the tender schedule, the companies revealed Thursday. The blocks which both telcos purchased, which are in the 900 MHz frequency band, aren't aligned so require to be reallocated to allow both companies to function at the highest possible capacity, Telenor's press office told Dow Jones Newswires. Therefore the two are expected to swap bands to achieve this alignment within their own blocks. The blocks require to be redistributed between the two telcos in a mutually acclamatory way, attuned with the tender procedure, Magyar Telekom CFO Thilo Kusch said Thursday. The discussions may begin after the tender becomes final and binding, which analysts predict to be in April at the earliest. In the tender, Magyar Telekom, majority-owned by Germany's Deutsche Telekom AG, and Vodafone Group PLC , both won 2 MHz of frequencies each, while Telenor secured 1.8 MHz. These formed part of the B block of frequencies, which are most appropriate to Internet services in rural areas. The more valued A block, which covers a range appropriate for both Internet and voice services, was acquired by a State syndicate. Magyar Telekom, Telenor and Vodafone filed appeals against the auction results recently. They are in discord with the syndicate's right to participate in the auction, as well as regulations on domestic roaming services for the new operation, according to Hungary's communications authority.

MetroPCS reports sunny Q4 results, 15% subs growth

editor@teleresearchlabs.com (Editor) — Fri, 24 Feb 2012 09:44:47 GMT

MetroPCS Communications Inc.'s perked up in Q4 as revenue leaped while costs attributable to enticing new subscribers by discounting phone prices climbed less than expected. In the latest quarter, cost per gross addition, which’s a method of the expenses MetroPCS incurs to attract new subscribers, increased 2.4% from a year ago, to $165.79, substantially less than the 21% rise in the third quarter and lower than some analysts predicted. In January MetroPCS said it increased its subscriber base by 197,000 in Q4, a third less than its growth in the year-ago period. Its churn, rose to 3.7% from 3.5%. The company clocked a profit of $91 million, or 25 cents a share, beyond the average analyst forecast on Thomson Reuters of 16 cents per share and up from year-ago earnings of $14 million, or 4 cents a share, which included certain one-time items. Revenue rose 16% to $1.24 billion, in tune with analyst estimates. Operating margin declined to 17.4% from 19.4%. MetroPCS had 9.35 million subscribers as of 2011YE, up from 8.16 million a year ago. ARPU increased 1.9%, to $40.55.

RCOM looking for arrears worth $300m from Etisalat’s India JV

editor@teleresearchlabs.com (Editor) — Fri, 24 Feb 2012 09:43:34 GMT

Reliance Communications Ltd. (RCOM) is asking for over INR15 billion ($304.6 million) in arrears from the joint venture of UAE's Emirates Telecommunications Corp. (Etisalat) and India's Dynamix Balwas Group, a person close to the matter revealed Thursday. Reliance approached India's telecom tribunal, seeking INR12 billion as arrears from Etisalat DB Telecom Pvt. Ltd. for using its telecom towers under a 10-year contract which begin in 2009 and over INR3 billion under an agreement to use the telco’s's telecom network infrastructure. The Telecom Disputes Settlement and Appellate Tribunal has directed Etisalat DB to revert within two weeks and fixed March 5 as the next date of hearing the case. Officials at Etisalat or its India JV weren’t availablefor comments. Etisalat DB provides wireless phone services in 15 of India's 22 telecom circles, and had 1.67 million subscribers at the end of December. Last month RCOM had halted Etisalat DB from using its towers because of non-payment of bills, with the latter then stating its service was facing network disruption throughout India due to technical reasons beyond its control. On Wednesday, Etisalat announced it will close the India joint venture's operations, after the country's Supreme Court revoked February 2 all mobile phone licenses issued post January 2008 that got issued on a first-come first-serve basis without an auction per se, deeming the entire procedure fraudulent and void. The order would come into force after four months.

Everything Everywhere to roll the LTE dice by year-end

editor@teleresearchlabs.com (Editor) — Fri, 24 Feb 2012 09:42:21 GMT

UK mobile telco Everything Everywhere, the conjunction of T-Mobile and Orange brands, Thursday said it will be launching LTE services by year-end. Company CEO Olaf Swantee stated "Subject to regulatory approval, Everything Everywhere will be in a position to begin the roll out of 4G before the end of the year." Trials for the initially small-scale planned launch, focussed on mobile broadband, would commence in the southern city of Bristol in April. The telco would be spending £1.5 billion spread over three years on bettering its network as consumers’ demand for smartphones and tablets keep spiraling upwards.

T-Mobile USA earmarks $4bn for LTE network

editor@teleresearchlabs.com (Editor) — Fri, 24 Feb 2012 09:40:53 GMT

For the first time since its deal with AT&T collapsed late December T-Mobile USA has announced it will be putting up $4 billion for constructing an LTE network, with intentions to roll out the service sometime next year. Sans having the iPhone, which plunged its subscriber base to 802,000 late last year, the carrier faces an uphill task vis-à-vis AT&T and Verizon Wireless, with it being atleast a couple of years behind the latter in rolling out LTE services.

Microsoft registers patent handling complaint with EC against Moto Mob.

editor@teleresearchlabs.com (Editor) — Thu, 23 Feb 2012 09:44:02 GMT

Microsoft Corp. revealed Wednesday it has lodged a competition complaint with the European Commission against Motorola Mobility Inc and its due-shortly owner Google inc. in relation to Motorola's handling of patents it holds that comprise of industry-wide standards for Internet connectivity. The said patents involve wireless access to the Internet and online video streaming and affects products such as Microsoft's laptops and Xbox games consoles. Microsoft alleges Motorola's steep rates for the use of its patents infringe upon an industry understanding to make patents in industry standards available to all manufacturers at a minimum cost. Further, it also accuses Motorola of looking to block sales of products using these patents if the payments aren't made.

AT&T CEO pays dearly for T-Mobile takeover fiasco

editor@teleresearchlabs.com (Editor) — Thu, 23 Feb 2012 09:42:49 GMT

The aftermath of the aborted AT&T, T-Mobile deal late December last year, which made the former shell out $4 billion in assets and cash as the price of the deal failure, has also dealt a blow to CEO Randall Stephenson – The company board snipped Stephenson's combined short- and long-term incentive payout by over $2 million, due in part to the collapse of the deal. Jointly with a reduction in his stock option awards and the value of his pension and deferred compensation, Stephenson's total pay package dwindled to $22.02 million from $27.34 million a year ago. AT&T's general counsel and an arch enthusiast of the T-Mobile deal, Wayne Watts, as well Ralph de la Vega, the telco’s mobility chief, also suffered. Watts's total compensation was chopped to $8.51 million from $9.24 million, mainly because of a drop in short- and long-term incentives and stock awards. De la Vega's fell by around $1 million to $9.9 million, primarily due to a decline in the value of his pension and deferred compensation. In contrast, John Stankey, the company's strategy chief who last year was CEO of business solutions, was the only one amongst the top brass whose compensation increased from the previous year. Stankey cinched $11.46 million in total compensation, up from $9.5 million, mainly as a result of an increment in the value of his pension and deferred compensation.

Proview demands bar on iPad sales in Shanghai

editor@teleresearchlabs.com (Editor) — Thu, 23 Feb 2012 09:41:21 GMT

Chinese computer manufacturer Proview Technology (Shenzhen) Wednesday filed a petition in a Shanghai court seeking ban on the sale of Apple Inc.'s popular iPad in the commercial metropolis in a perennial trademark dispute. The company maintains it owns the Chinese rights to the "iPad" name and is taking legal steps to force Apple to stop selling its tablet computer in the city, where the US tech major has three stores. Lawyers for both companies had a showdown in a half-day hearing at the Pudong District People's Court, where they shared evidence and forcefully presented their cases, prompting the chief judge to halt proceedings numerous times, spectators revealed. As per a court official the district court will decide whether the case should progress to formal trial.

EU tosses ACTA issue to its top court

editor@teleresearchlabs.com (Editor) — Thu, 23 Feb 2012 09:39:11 GMT

The controversial Anti-Counterfeiting Trade Agreement (ACTA) has been referred by the European Commission to the European Union's top court - The European Court of Justice (ECJ), for legal guidance on whether it tampers with the regional bloc's fundamental rights, EU Trade Commissioner Karel de Gucht revealed Wednesday. The Agreement has already been approved by the European Commission and the European Council of member States but is facing rising public protests across the regional bloc, with the European Parliament still undecided on it. Several member States have halted ratification of the treaty due to growing public outcry and this could mean it could be held up for months. De Gucht maintains that the ACTA treaty is in harmony between ensuring protection of intellectual property and individual rights, and that standards set by ACTA are already applied in the EU so that "ACTA will change nothing about how we use the Internet and social websites today." De Gucht’s spoesperson refused to say on how long it’s likely to be before the ECJ responds to the commission.

Etisalat to quit India ops

editor@teleresearchlabs.com (Editor) — Thu, 23 Feb 2012 09:37:50 GMT

Following the Indian Supreme Court's recent ruling to revoke all mobile-telecom service licenses that were issued without auction on a first-come first-served basis post January 2008, UAE major Emirates Telecommunications Corp., or Etisalat, has decided to cut its losses and shut down its Indian unit Etisalat DB's operations. In an emailed statement the company said "As unanimously resolved by the board this evening, Etisalat DB will be taking steps to reduce operating costs, including the suspension of its network and services. The decision has been taken in order to protect the interests of all stakeholders and to avoid incurring further costs at this time of rapid change and continued uncertainty in the Indian telecommunications sector."

Access to corporate emails? Sorry, maintains RIM

editor@teleresearchlabs.com (Editor) — Thu, 23 Feb 2012 09:36:28 GMT

It seems India’s paranoia about terrorists using encrypted communication services of Research In Motion Ltd. (RIM) for planning strategic attacks inside the country won’t be cured afterall. The Canadian firm Wednesday reinstated that it can't access, or provide access to, emails sent via its BlackBerry corporate computer networks, even as local media reports said earlier RIM has set up servers in India enabling local security agencies to directly monitor the service. Access to services of Skype, Yahoo Inc. and Google Inc. has also been demanded by India. The BlackBerry maker stated that intercepting corporate emails is impossible as there is no technology available to enable monitoring of the service. Till now RIM has only been able to provide systems to monitor Internet browsing and messenger services used on BlackBerry, in January last year. India is a crucial market for the company as the country's fast-growing mobile sector offers major potential for further growth.

LightSquared plans mega downsizing

editor@teleresearchlabs.com (Editor) — Thu, 23 Feb 2012 09:34:55 GMT

As per a Reuters report Tuesday citing company statement, LightSquared intends to cut back on its staff strength by as much as 45% to slash costs. The wireless network builder, which is backed by hedge fund manager Philip Falcone, said "This and other cost savings measures will allow LightSquared to continue to navigate the regulatory process as it works with the appropriate government agencies to find solutions to the GPS interference issue and bring its $14 billion privately funded wireless broadband network to more than 260 million Americans." However, as per an informed source, LightSquared isn't contemplating bankruptcy.

RIM launches newest Playbook OS

editor@teleresearchlabs.com (Editor) — Wed, 22 Feb 2012 11:09:11 GMT

Canadian technology titan Research in Motion Ltd. (RIM) launched a free, revised version of the software for its PlayBook tablet, which has had a shallow run till now, early Tuesday, part of a significant operating system overhaul and the company's first major product launch since its two longtime co-CEOs vacated their positions earlier this year. The PlayBook 2.0, an over-the-air update that RIM states is ready for download beginning Tuesday, is a crucial step for the company as it attempts to salvage back some market share in the tablet space from rivals Apple Inc. and Google Inc., besides others. The tab will be based on RIM's new BlackBerry 10 software, which will also power the RIM's next range of smartphones, out likely later this year.

RCOM discussing $3bn network contract with four firms

editor@teleresearchlabs.com (Editor) — Wed, 22 Feb 2012 11:07:27 GMT

Reliance Communications Ltd. (RCOM) is in discussions with four companies for a $3 billion indenture to manage its mobile phone networks, a person possessing direct knowledge of the matter revealed Tuesday, as it attempts to slash expenditures to sharpen its competitive edge in India's fast growing but overly congested telecoms market. The telco is holding talks with L.M. Ericsson Telephone Co., Alcatel-Lucent as well as China's ZTE Corp. and Huawei Technologies Co., with intentions to finalise the contract within the next couple of months, the person told Dow Jones Newswires on condition of anonymity. Executives at the Indian units of Huawei, ZTE, Alcatel-Lucent and Ericsson weren’t available for confirmation. Mumbai-based Reliance Communications is an offshoot of the larger Reliance Group controlled by billionaire Anil Ambani, and is India's second-largest telco with over 150 million subscribers.RCOM has been buckling under high expenses, particulary because of the interest it is required to pay on $7.5 billion debt it took to purchase 3G spectrum in 2010 and roll out services. It has been attempting to sell stakes of its own or of a few units, but hasn't succeeded till now. Earlier this month, it posted a 61% Y-o-Y decline in net profit for the October-December quarter, which was the 14th successive quarter of a lower profit, affected by an impairment charge related to 3G bandwidth. Revenue for the said quarter also dropped by 1.8% to INR47.37 billion.

China Telecom to shelf iPhone 4S from March 9

editor@teleresearchlabs.com (Editor) — Wed, 22 Feb 2012 11:06:08 GMT

China Telecom Corp. is coming out with Apple Inc.'s iPhone 4S smartphone for its customers in China effective March 9, and envisions short-term pressure on its profitability owing to greater expenses to market the smartphone. The country's biggest fixed-line operator and third-biggest mobile carrier by subscribers said customers can start placing pre-orders starting March 2. The company has said it would be stepping on the accelerator to up its marketing maneouvers keeping in tune with rising demand for mobile devices in China.

Etisalat mulling restructuring, outsourcing to shed OPEX

editor@teleresearchlabs.com (Editor) — Wed, 22 Feb 2012 11:04:30 GMT

Emirates Telecommunications Corp., better known as Etisalat, Monday revealed it’s contemplating restructuring and outsourcing as a ploy to reduce its operating expenses in the face of lower revenue.Etisalat's group CEO Ahmad Abdulkarim Julfar said in an e-mailed statement "These suggestions aim to enable Etisalat to cope with the pace of development witnessed in the ICT sectors and face financial challenges that telecom providers across the world, including Etisalat, are facing." "Competition and drop in prices across the region has made it difficult for telecom service providers to maintain revenue levels, especially in emerging markets," he stated further. Etisalat's board also suggested a 2011 dividend of 60% of the face value of its shares, or 0.60 UAE dirham/share. On February 9 the telco posted a 65% drop in its Q4 net profit as a heavy impairment charge related to its Indian operations affected its earnings. Etisalat's net profit has been falling for a couple of successive quarters, with its local operations, which make up approximately 70% of its overall revenues, being pressured after it lost its monopoly to Du, its local competitor.

Telenor, Unitech row deepens with ops transfer talks

editor@teleresearchlabs.com (Editor) — Wed, 22 Feb 2012 11:00:46 GMT

The spat between Norway’s Telenor ASA and its Indian partner Unitech Wireless deepened Tuesday with the former announcing it will be transferring operations to a new Indian company. Telenor has been functioning in India via Unitech Wireless, a joint venture with Unitech Ltd. in which Telenor holds 67.3% stake and that operates under the brand name Uninor. After the Supreme Court ordered Unitech to return all 22 licenses, forming part of the 122 licenses that the court deemed were secured in a rigged auction in 2008, Telenor hasn’t pulled its punches and had stated it sees no future with its current Indian partner and that it will seek compensation from Unitech for the breach of warranties related to the cancellation of mobile licenses. On Tuesday, while issuing a notice of voidance of the shareholders' agreement to Unitech, on account of fraud and misrepresentation related to the court judgment, Telenor said it’s looking to transfer its current business, along with its 40 million subscribers and 17,500 employees, to a new company. The telco stated "This new entity will serve as the platform to approach the upcoming auctions for fresh licenses as mandated by the [Indian] Supreme Court." It further said it expects Uninor's board to transfer Uninor's business into the new company at "a fair market value" and that shareholder voting isn’t required to transfer the business as Uninor is a private company. Unitech lashed out at the idea and said it is "shocking that Telenor intends to transfer the entire business to a new affiliated entity." "This not only shows complete disregard and oppression of the minority shareholder by Telenor, but is also against all principles of related party transactions," Unitech stated. It added that Telenor cannot transfer any assets of Uninor without Unitech's consent, and it has veto right in the shareholders' agreement and in the articles of association for such issues. "We will take all our legal rights to protect our investments and rights available to us under the shareholders' agreement and the Indian laws," Unitech said.

Tele2 Russia appoints NSN for LTE gear

editor@teleresearchlabs.com (Editor) — Tue, 21 Feb 2012 11:37:32 GMT

Russia’s Tele2 has roped in Nokia Siemens Networks (NSN) for supplying it with equipment to test its LTE network. The operator has earmarked a 5MHz block of spectrum in the 1800MHz band for the tests, which will also have modems from ZTE and Huawei. Support for the various technologies implemented in NSN platform will allow Tele2 to use current resources in the 1800MHz frequency range, which is presently used to offer services to GSM. This will enable Tele2 to augment network capacity and meet demand for more high speed data services. Last October Tele2 Russia declared its plans to run an independent trial of LTE technology in the 1800MHz band, and sought permission from the State Radio Frequency Commission (SRFC) to run tests in Pskov and Omsk. The operator revealed interest in rolling out a 4G network in Russia in November 2010, and last August conducted an independent survey into the dual use of wireless frequencies in the 1800MHz band for both GSM and LTE services. Equipment vendors like Alcatel-Lucent, Ericsson, Huawei and Nokia Siemens Networks (NSN) conducted an exhaustive research and deduced that 4G services could theoretically be operated in the 1800MHz band without any apparent loss in the quality of Tele2's current GSM operations.

Televisa battles on for wireless merger approval

editor@teleresearchlabs.com (Editor) — Tue, 21 Feb 2012 11:34:45 GMT

Mexican media and communications cartel Grupo Televisa SAB ingeminated Friday its attempts to assuage concerns expressed by the country's antitrust agency regarding a proposed joint venture between Televisa and mobile-phone operator Iusacell. Earlier this month the Federal Competition Commission repealed Televisa's $1.6 billion investment for a 50% stake in Iusacell, one of Mexico's smaller telcos, fearing that it would threaten competition in the television advertising market. Iusacell is controlled by businessman Ricardo Salinas Pliego, who also controls Mexico’s second largest television broadcaster TV Azteca SAB. Amongst them, Televisa and TV Azteca control practically all of the commercial free-to-air broadcast television in the country. Televisa Executive Vice President Alfonso de Angoitia, while speaking at a conference call with analysts Friday said while Televisa understands the commission’s concerns about the deal, such "hypothetical collusion" in the TV market has never occurred in the past, and would have criminal implications should it occur in the future. Televisa is in an embarrasing situation of having already completed its investment in Iusacell during the fourth quarter, with $37.5 million dispensed in the form of equity and $1.57 billion in convertible debt. The debt earns a 2% coupon and must be converted to equity by December 2015.

US wireless spectrum auction cleared

editor@teleresearchlabs.com (Editor) — Tue, 21 Feb 2012 11:32:04 GMT

The US Congress approved Friday freeing up spectrum for next generation wireless networks to tackle the surging growth of mobile devices. A bill cleared by the House and the Senate extending payroll-tax cuts and jobless benefits also necessiates the Federal Communications Commission (FCC) to conduct auctions of wireless spectrum for commercial use. Wireless operators and technology companies have been asking for access to more of spectrum to enable them to keep pace with the burgeoning growth of Internet-connected smartphones and tablets. The auction will utilise some spectrum that is presently used by TV broadcasters. Some of the auction proceeds would be used to build a nationwide network for police, fire and other emergency services.

India’s chances to meet four-month spectrum auction cutoff remote

editor@teleresearchlabs.com (Editor) — Tue, 21 Feb 2012 11:30:48 GMT

India’s Department of Telecommunications (DoT) would probably be missing the four-month deadline set by India's Supreme Court to auction 2G spectrum and licenses, the Economic Times reported Saturday quoting unnamed sources. As per the newspaper "The telecom department has told Prime Minister Manmohan Singh that the process of completing the Supreme Court-ordered 2G auctions will take over 13 months." The department will take 95 days to study the regulator's proposals, determine the reserve price for spectrum sale in consultations with other ministries, and get sanctions from the empowered group of ministers looking into all spectrum-related matters, the report said. Thereafter the department predicts it will take a further 245 days for completion of the auction process, the report added. On February 2, India's Supreme Court revoked122 mobile-telecom-service licenses issued without auction after January 2008, citing "a fundamental flaw" in the first-come, first-served policy adopted for issuing them. The court set a four-month deadline for the government to complete the auction of licenses and radio bandwidth to offer 2G telecom services.

Hungarian telcos do not welcome State newcomer

editor@teleresearchlabs.com (Editor) — Tue, 21 Feb 2012 11:28:58 GMT

Hungary’s three mobile operators have filed a petition against the outcome of a spectrum tender, the media authority reported Monday, implying that the launch of the fourth, State-owned mobile telco in the country will be delayed. The 900 MHz mobile spectrum tender closed January 31, with the national authority stating it would sell frequency blocks to the three companies that already operate in Hungary as well to the newcomer, a State syndicate. The incumbent operators - Norway's Telenor ASA, UK's Vodafone Group PLC and Magyar Telekom Nyrt., owned by Germany's Deutsche Telekom AG - were awarded parts of the frequency band in the cheaper B block, which is most appropriate for Internet services in rural areas. The State syndicate, comprising of power firm MVM Zrt., postal services company Magyar Posta Zrt. and a unit of Hungary's development bank MFB Zrt., secured the A block, which covers a frequency range suitable for both Internet and voice services. The three telcos are disputing the syndicate's right to participate in the auction, the authority revealed, as well as regulations on domestic roaming services for the new operation. Consequently, the State firm will only be able to start building its network from April, instead of February, Hungarian daily Vilaggazdasag reported. But the company has to have its own network in Budapest by the end of the year.

TIM Brazil’s golden times are here, finally

editor@teleresearchlabs.com (Editor) — Fri, 17 Feb 2012 10:15:40 GMT

Brazilian telco TIM Participacoes SA is now reaping a golden harvest of the turnaround seeds it sowed three years ago – It generated a net profit of BRL1.3 billion, a jump of 66% from 2010, while net revenues rose by 18% at BRL17.1 billion. Having grinded to a pause in 2009, when revenue growth became nil, the kick-start of TIM's fortune is due to a change of strategy back then, led a management shuffle at the Italian parent company, Telecom Italia SpA, which had its own financial woes. The spotlight shifted to simplicity, by providing flat rates for calls instead of charging by the minute, a ploy which doddered up the Brazilian marketplace, knifing through the confusing range of promotions and plans which had been the standard. Hugely critisised back then, it's now paying off nicely, and the company is rightly-placed to tap the huge bottled-up demand for voice and data services which still exists in the Latin American nation, company CEO Luca Luciani said in an interview.

Hefty interest charges swell Clearwire’s Q4 loss

editor@teleresearchlabs.com (Editor) — Fri, 17 Feb 2012 10:13:12 GMT

Even as its subscriber base continued to grow, Clearwire Corp.'s Q4 loss broadened owing to greater interest expenses. Compared to a loss of $128 million for the same quarter a year ago, Clearwire posted a loss of $236.8 million this time round. Revenue though, increased by over two-fold to $361.9 million, falling a tad shy of the $362 million which the company predicted last month. The company now estimates 2012 revenue to fall between $1.15 billion and $1.25 billion, less than the $1.37 billion that analysts polled by Thomson Reuters predicted. 873,000 net new subscribers were added in the quarter, totaling the company's base to 10.4 million, which fell in synchronisation with its January prediction, up from 4.3 million a year ago.

LightSquared Chief tounge-lashes FCC

editor@teleresearchlabs.com (Editor) — Fri, 17 Feb 2012 10:10:47 GMT

Scathed by the Federal Communications Commission (FCC) decision to withdraw support from letting the company provide a nationwide wholesale LTE network after a report sent to FCC head by the National Telecommunications and Information Administration (NTIA) warned LightSquared's plan to deploy a nationwide LTE network running on frequencies adjacent to those used by GPS would cause harmful interference, LightSquared CEO Sanjiv Ahuja launched a verbal attack on the FCC. "At the government's mandate, LightSquared began investing billions of dollars in America's infrastructure – without asking for any money from the American taxpayer," commented Ahuja on the company website. "[On Tuesday], after LightSquared had already spent nearly $4 billion, the FCC changed its mind. "There can be no more devastating blow to private industry and confidence in the consistency of the FCC's decision-making process," he stated. The company maintains NTIA’s findings are based on erroneous procedure bent in favour of the GPS community, and that the FCC's decision does not solve anything. "To leave this problem unresolved is the height of bureaucratic irresponsibility and undermines the very principles that once made America the best place in the world to do business," Ahuja added further. The FCC's pronouncement is a baneful indication for LightSquared's deal with Sprint Nextel Corp. The two reached a 15-year deal to share the cost of deploying LightSquared's LTE network. But the agreement is subject to LightSquared resolving its GPS issues and coming up with a mid-March deadline.

Google Wallet armouring up

editor@teleresearchlabs.com (Editor) — Fri, 17 Feb 2012 10:09:29 GMT

Google Inc. Wednesday said its smartphone wallets are better equipped to fail crooks than conventional credit cards, while the company reactivated a feature that allows users to load prepaid card information in smartphones for spending that was shut off for a few days to fix a probable security glitch. Google Wallet uses a NFC chip embedded in smartphones to enable a user to "tap-and-pay" for purchases at checkout registers equipped with the PayPass system from CitiMasterCard. Google payments vice president Osama Bedier, while commenting in a blog post said "While we're not aware of any abuse of prepaid cards or the Wallet PIN resulting from these recent reports, we took this step as a precaution to ensure the security of our Wallet customers." The move followed a Zvelo Labs researcher demonstrating software that quickly finds out a Wallet personal identification number, or PIN, provided the crook has possession of the smartphone; though chances of hackers decoding Google Wallet remotely were dismissed. Security features like full-disk encryption and screen locks have been recommended by security specialists for Google Wallet. As of now Google Wallet is available only on Nexus S and Galaxy Nexus smartphones. Though the company plans to expand the feature to more Android phones.

TRAI spectrum re-auction initial view – Voda India differs from Telenor

editor@teleresearchlabs.com (Editor) — Fri, 17 Feb 2012 10:08:07 GMT

Reverting to a consultation paper floated by the Telecom Regulatory Authority of India (TRAI), which had invited initial views by February 15 on framing rules for the auction re-run of bandwidth for basic mobile-phone services after the Supreme Court revoked 122 mobile licenses in the rigged 2008 2G auction, Vodafone India Thursday demanded any bandwidth auction must be open for participation to all operators to ensure the most efficient allocation of the spectrum, and this is necessary to derive a fair market price. Vodafone further desires the reserve price at the auctions shouldn't be based on prices paid in auctions for 3G telephony services as that is likely to thwart off potential new entrants. Vodafone’s comments are in sharp contrast to Telenor’s, which recently stated it wants the auction re-run to be limited to the existing players only as opening the contest to all carriers could make license prices too high for it to continue operating in India.

Deutsche Telekom mulling UK exit

editor@teleresearchlabs.com (Editor) — Fri, 17 Feb 2012 10:06:49 GMT

Germany’s telecoms stalwart Deutsche Telekom AG is in preliminary stages of contemplating whether to sell its half of UK MNO Everything Everywhere as it attempts to raise cash after sale of its T-Mobile USA didn’t materialise, as per a Bloomberg report published Thursday, citing unnamed sources. The telco will first concentrate on bettering operational performance, and is still to hire investment banks, according to the report. Choices may include a sale to joint venture partner France Telecom or to find a third-party buyer for the entire operator. Spokespersons for both Deutsche Telekom and France Telecom refused to comment, Bloomberg reported.

UK’s ip.access to roll out LTE small cell early 2013

editor@teleresearchlabs.com (Editor) — Fri, 17 Feb 2012 10:05:24 GMT

Called the E-100, UK company ip.access would be launching its first LTE small cell that would inculcate 3G as well as carrier-grade Wi-Fi connectivity if desired, sometime in early 2013, the company announced Thursday. The dual-mode unit would be a quad-band device, supporting the 1900-MHz, 850-MHz, 700-MHz, and 1700-MHz frequency bands. The charm herein lies that as E-100 would have two channels, 3G and LTE, it implies that MNOs could decide to deploy it soon, instead of waiting for LTE to go mass-market. The E-100 will be merged into ip.access's nanoConverge solution, uncurtained late last year, that allows carriers to support 3G small cells from a current 2G small cell gateway. Later, it will also enable carriers to add LTE to an existing 3G gateway and network management system. The new unit will be based on US chipmaker Freescale's QorIQ Qonverge platform.

Comcast Q4 profit leaps 26% on broadband gains

editor@teleresearchlabs.com (Editor) — Thu, 16 Feb 2012 11:58:07 GMT

Comcast Corp.'s Q4 profit jumped 26% as the cable and television network company reported consistent growth at its broadband and business-services units and curtailed losses of its pay-TV customers for the fifth successive quarter. It also announced a 44% rise in its dividend and a $6.5 billion stock-repurchase program. Comcast and like businesses have been experiencing tough times recently with a slowdown in their conventional cable business in the midst of a diluted housing market and as more viewers tone down or cancel their video services. It has led to cable companies concentrating more on increasing their broadband and commercial-services businesses, where profit margins are typically greater. In Q4 the company’s video-subscriber losses slowed to 17,000, an 87% betterment from a year ago, implying its new marketing and customer-service initiatives are being successful. The company added 336,000 high-speed Internet customers in Q4, 15% more than it took on in the same period last year. It also added 146,000 telephone subscribers, even though that was 43% less than the year ago quarter's.

End of LightSquared’s nationwide wholesale network dream?

editor@teleresearchlabs.com (Editor) — Thu, 16 Feb 2012 11:56:50 GMT

US’s LightSquared's ambition to offer countrywide wholesale mobile services might have been strangled for good after the Federal Communications Commission (FCC) declared Wednesday it would revoke support for the operator's intention to roll out its LTE network deducing from a National Telecommunications and Information Administration (NTIA) letter to FCC chairman Julius Genachowski that it would meddle with GPS signals, thereby having a negative effect on GPS services. NTIA’s findings support those of a report published in January by the Executive Committee for Space-Based Positioning, Navigation, and Timing (EXCOM), which asserted LightSquared's intended mobile network would lead to "harmful interference" with GPS receivers. NTIA's recommendation has naturally irked LightSquared and it insisted that EXCOM's findings are in error and based on "a severely flawed testing process that relied on obsolete and niche devices". It stated further that "[The] NTIA relies on interference standards that have never been used in this context, and were forced by the GPS community in order to reach the conclusions presented [on Tuesday]." LightSquared reinstated its devoir to come up with a solution, still the FCC said Wednesday it intends to withdraw its conditional approval for the deployment of the ground-based component of the operator's combined terrestrial and satellite network, and defer the complete plan indefinitely. The FCC's decision could also signify doomsday for LightSquared's agreement with Sprint. The two companies agreed to share the cost of building out LightSquared's network in a 15-year deal in July last year that would let Sprint provide countrywide LTE services and save LightSquared approximately $13 billion in costs spanning10 years. Sprint would also collect about $9 billion in cash; however, the company was also given the choice to end the agreement incase LightSquared couldn’t find a satisfactory answer to regulatory concerns over possible GPS interference by 2011 year-end, with the deadline subsequently being extended to mid March this year. A Sprint spokesman who didn’t elaborate further said "We have seen the government's recent comments and are reviewing them."

Telenor ends discord with Altimo, raises Vimpelcom stake

editor@teleresearchlabs.com (Editor) — Thu, 16 Feb 2012 11:55:26 GMT

Norwegian telecom doyen Telenor ASA Wednesday stated it has shelved all its claims against Russia’s Altimo Holdings & Investments Ltd., after it bought 234 million preferred shares in Russian telecom major VimpelCom Ltd. The deal takesTelenor's voting rights in Vimpelcom from 25% to 36.4%, with Telenor now regaining its majority voting stake in the Russian telco. Telenor said it paid $374.4 million for purchasing the shares. Company CEO Jon Fredrik Baksaas stated "This transaction takes Telenor to approximately the same voting position as a successful outcome of the arbitration process would have achieved, and is therefore a commercial solution we are happy with." Relations amongst Telenor and Altimo, the telecoms wing of Russian cartel Alfa Group, began to soar when Telenor last year objected to VimpelCom's stock-and-cash purchase of Wind Telecom, which was controlled by Egyptian tycoon Naguib Sawiris. Telenor said it bought the 234 million shares in VimpelCom from Sawiris's investment firm - Weather Investments II S.a.r.l., implying Weather dilutes its voting share in VimpelCom to 18.3% from 29.6%, and now being relegated to the third-largest position-holder of votes in VimpelCom, after Telenor and Altimo. Telenor further added it and Weather have made some "put and call arrangements" concerning the remaining 71 million preferred shares in VimpelCom held by Weather. Telenor's shares rose on the news at 3.2% higher at NOK100.80 on Wednesday.

Telenor seeks damages from Unitech, scouts for new partner

editor@teleresearchlabs.com (Editor) — Thu, 16 Feb 2012 11:53:45 GMT

Norway’s Telenor ASA Wednesday came out with blazing guns on its Indian JV Uninor’s partner Unitech Wireless – claiming compensation for all investment, guarantees and damages caused by the country’s Supreme Court’s decision in the 2008 2G spectrum scam which led to cancellation of all 22 mobile licenses of Uninor, holding Unitech liable for breach of warranties related to the ruling that’s left the telecom companies affected in a dizzy. As per Telenor Unitech had consented as part of a share subscription agreement to protect Telenor against damages suffered as a result of breached warranties. On its part Unitech countered by stating the court hasn't concluded any wrongdoing on the part of the licensee companies and expressed surprise to receive the indemnity claim from Telenor. Unitech's nominee on the board of Uninor, Neeraj Goel, stated "At best, Telenor can claim damages from the government under the investment bilateral treaty. We reserve our right to take appropriate legal action against Telenor for damages caused to Unitech Group from breach of the confidentiality obligation by Telenor." Telenor reiterated it will contemplate every possible option to continue development of mobile services in India, saying it doesn’t foresee any future with Unitech and would start hunting for a new Indian partner.

India announces significant aspects of new telecom policy

editor@teleresearchlabs.com (Editor) — Thu, 16 Feb 2012 11:51:54 GMT

India Wednesday revealed the main points of a new telecommunications policy targeted to simplify licensing rules, support mergers and acquisitions, and bring greater pellucidness in a sector tainted by graft allegations. After 1994 and 1999 this would be the third time the government is designing a policy for the telecom sector, forming part of endeavours to tidy up the sector following allegations of foul play in a sale of 2G licenses and bandwidth in 2008 that resulted in the arrest of lawmakers and company executives, pressured government and led to the Supreme Court revoking122 licenses allotted sans auctions. The new policy ordains a single license for the entire country going forward and also divorces licenses from bandwidth, Communications Minister Kapil Sibal stated. The policy will come into effect from now and the entire policy will be announced in April. Presently, operators require separate licenses to function in each of India's 22 telecom circles and get bandwidth along with them. A single license is a harbinger operators will have to let go of roaming charges that make up nearly 10% of their revenue. The policy enables "quick" approval of mergers where the resultant entity won't have a market share, made up of revenue and subscriber base, of over 35% or bandwidth exceeding 25% in a telecom circle. Present regulations limited market share at 40%, but analysts say rules didn't elucidate the guidelines and a earlier cap of 14.4 MHz of bandwidth for any combined entity has been a spoilsport. Sibal said the government is contemplating mergers where the combined entities can hold up to 60% of market share. The policy restricts the amount of bandwidth held by a carrier, with all bandwidth to be paid for at market-ascertained prices. Operators would have to return the excess bandwidth they hold when they renew their licenses, which are usually valid for 10 years. But they are still allowed to secure spectrum beyond the cap by bidding at an auction. The policy also permits bandwidth sharing within a telecom circle, except for 3G telephony services. Petulant issues like charging a one-time fee for bandwidth held by operators beyond the prescribed limit will be decided later, Sibal said. Bharti Airtel Ltd., the country's biggest carrier by subscriber base, welcomed the policy, saying it would be beneficial in the long run, and that new takeover rules will pave the way for consolidation in the overcrowded sector.