Taiwan aims to auction 4G licenses by 2013 (Taiwan)
The Taiwanese government is planning to commence its 4G auction schedule two years ahead of schedule, by 2013 in an attempt to enable operators to launch their LTE services by 2015, as suggested by reports. Sources reveal that these allocations are expected to be in either the 700 MHz or the 2.6 GHz bands and may be released together with the 900MHz and 1.8GHz spectrum.
According to reports, the ministry would need to reach an agreement to replace the 700-MHz band as the spectrum is currently allocated to the military. As revealed by sources, the advance in Taiwan’s LTE schedule may hint at the country’s shift in focus from Wimax technology to LTE.
Wind pays first instalment of US$ 941 million for 4G spectrum (Italy)
VimpelCom Ltd.’s fully owned subsidiary in Italy, Wind Telecomunicazioni S.p.A., has reportedly paid US$ 941 million as the first payment for the 800MHz and 2600MHz 4G frequencies awarded to the company on 29th September 2011. As per reports, Wind will pay the remaining amount of approximately US$ 605 million in five equal instalments from November 2012.
According to sources, the acquired spectrum will enable Wind to launch high quality 4G LTE services in the coming years. Further, reports suggest that while the 2,600 MHz spectrum will be made available immediately, the 800MHz spectrum will be available from 2013, with a validity till 2029 for both spectrums.
VelaTel signs agreement with NGSN to deploy TD-LTE services in China
US-based VelaTel Global Communications (VelaTel), has entered into a business agreement with New Generation Special Network Communication Technology Co. Ltd. (NGSN), to deploy TD-LTE services in China. As per reports, VelaTel will be responsible to provide all engineering and network management services in the joint venture while NGSN will be required to deliver the information services and deploy the 4G network in China. Further, VelaTel will reportedly finance the joint venture and will own the infrastructure equipment.
According to reports, the initial phase of the network is expected to cover the Heilongjiang Province in northeast China, with a population of approximately 39 million. The network will utilize NGSN’s existing value added services license to deliver personalized navigation and location based services (LBS) including GPS, mobile resource management solutions that allow enterprises to monitor and manage mobile workforces and assets. Sources suggest that VelaTel and NGSN expect to finalize the services contract and form the joint venture company by the end of this year.
George Alvarez, CEO, VelaTel has said that the NGSN project represents an expansion and diversification of the services that VelaTel delivers, particularly in China. He further said that instead of a retail consumer model, and the attendant challenges of marketing budgets and competition with other carriers for subscribers, this transaction reflects a business to business model, with NGSN acting as both the anchor tenant and the broker with a financial incentive to expand the network’s paid users by recruiting other affiliated businesses.
Sprint to impose cap on unlimited plans for mobile dongles and hotspots (USA)
Sprint, the third largest carrier in the United States, has announced that they will be ending their unlimited data plans for mobile broadband dongles and mobile hotspot add-on services. As per reports, a cap of 5GB will be imposed in the case of mobile hotspot users and either 3GB, 5GB or 10GB for mobile broadband subscribers.
Company sources have reportedly said that customers using a mobile broadband device such as a tablet, netbook, notebook, USB card, connection card or Mobile Hotspot device, will no longer enjoy unlimited 4G from next month. However, there will not be any changes to the monthly recurring charges, on-network overage rates, off-network overage rate, or off-network data allowance.
Industry analysts believe that as the modem plans consume much more data than smartphones, they were the first to face changes on their unlimited plans, and that Sprint may apply a similar cap on smartphone data usage as well. However, as yet the company has reportedly said that it has no plans to change the unlimited services offered on the iPhone and other handsets.
Telenor Norway completes mobile network upgrade for LTE (Norway)
Telenor Norway, a leading mobile operator, has upgraded over 9,000 base stations in a total of 6,379 different sites throughout Norway, including Svalbard and oil installations in the North Sea. With the new network, Telenor has acquired improved data traffic capacity, thus enabling it to offer customers higher speeds. The new equipment will reportedly be used to deploy the next generation mobile network, 4G/LTE, starting up in 2012.
As per reports, Berit Svendsen, CEO, Telenor Norway has said that this new mobile network secures its users higher speeds and greater capacity when surfing on PCs, tablets or mobile phones. He added that they’ve expanded the network to ensure that customers throughout the country can enjoy superb coverage and the capacity required to make use of all the new services to come, even in the future.
With an increasing number of people using the mobile network for various services such as sending pictures and videos, browsing the news, reading emails and sharing information on Facebook, the data traffic has been rapidly increasing over the years. Telenor estimates 15 times more data traffic by 2015.
Sprint’s share price falls by 7.9% over dilution fears (USA)
Sprint, the third largest wireless carrier in the US, has reportedly said that it may have to raise additional finance so as to be able to meet the US$ 10 billion capital expenditure required for a network upgrade and launch of 4G services. Industry analysts believe that Sprint will be required to raise as much $ 5 billion over the next couple of years and may have to issue new equity thereby diluting the existing shareholders.
This news caused discontent amongst many investors resulting in Sprint’s shares falling down 7.9 percent to close at $2.22, falling almost two-thirds from its year-high in June. As per reports, Joseph Euteneuer, Chief Financial Officer, Sprint, said that the company could continue to finance itself through the debt market. Sprint’s debt portfolio includes a $2.25 billion debt maturing in March 2012, $1.8 billion maturing in 2013 and $1.35 billion maturing in 2014.
As per sources, industry analysts feel that either option of raising finance can cause problems for Sprint. While financing through debt could raise questions about their solvency, an additional issuance of shares could worsen the dilution causing share price to fall further.
Apart from the capital expenditure, Sprint will also be required to pay Apple short term subsidies as it will be offering its customers the iPhone for the first time. Sprint is the only operator that will offer the iPhone 4S along with an unlimited data package.
Telstra launches 4G network (Australia)
Telstra, a leading telecom operator in Australia, will launch the nation’s first superfast 4G LTE mobile network in capital city CBDs and more than 30 regional and metropolitan centres.
As per reports, Telstra CEO David Thodey said Australians could now access one of the world’s most advanced mobile networks delivering some of the fastest mobile download and upload speeds available anywhere. He said that today marks a new high-speed chapter in Australian mobile telecommunications. Telstra’s 4G network delivers mobile speeds scarcely imagined a decade ago, making it easier for people to connect with the things they need and love when on the move.
He added that the superfast speeds mean consumers can download songs faster, get TV shows in minutes and do more things simultaneously. This is just the beginning. Telstra 4G will allow mobile devices to perform even more advanced tasks and open the door to a host of innovative high-speed services that have yet to be conceived.
Telstra claims that by using the Telstra USB 4G mobile broadband modem, which goes on sale today, customers in 4G coverage areas, can enjoy typical download speeds ranging from 2Mbps to 40Mbps – up to ten times faster than 3G speeds currently claimed by other Australian telecommunications companies. Customers can also experience typical upload speeds of 1Mbps to 10Mbps – three times faster than previous generations of mobile broadband in Australia.
Further, Mr. Thodey claims that Telstra is working with some of the world’s leading manufacturers to bring 4G-powered smartphones and tablets to customers in the first half of 2012. Telstra also announced that it would launch 4G services in more than 50 additional locations by year’s end.
Sprint plans to offer LTE services by 2012 (USA)
Sprint, America’s third largest mobile carrier, plans to offer Long Term Evolution (LTE) network by 2012. As per reports, Sprint has begun work on the equipment installation and is testing the network at certain locations. In an attempt to stay competitive with its biggest rivals, Verizon Wireless and AT&T who have announced their LTE plans, Sprint reportedly plans to rollout its 4G LTE services by the first half of 2012.
Sprint has also been approached by iPhone maker Apple, to carry its latest iPhone, to be launched next week. Initially, the iPhone was available only with Verizon Wireless and AT&T connections, causing Sprint to lose a significant amount of market share. Further, the telecom operator is hopeful that its unlimited data plans will help acquire a larger subscriber base.
France telecom regulator grants 4G spectrum licences
France telecom regulator, ARCEP, has granted 4G mobile spectrum licences to all four main telecom operators in the country in the first round of auctioning. As per reports, France Telecom SA and Iliad SA’s Free Mobile will be allocated a duplex frequency block of 20 MHz, whileVivendi SA’s SFR and Bouygues Telecom will be allocated a duplex frequency block of 15 MHz.
According to sources, ARCEP said that the prices paid for the frequencies translated to a strong valuation of state property, bringing in a total of US$ 1.6 billion compared with a reserve price of US$ 944 million. As reported earlier, France expects to raise at least $ 3.4 billion from the 4G spectrum auction. Operators seek to acquire 4G rights as it enables them to offer their subscribers faster download speeds and a better internet experience.
China Telecom signs deal with Alcatel Lucent to upgrade 3G network (China, France)
China Telecom has chosen Alcatel-Lucent to expand and upgrade the operator’s 3G network. With this move, China Telecom aims to improve the coverage and speed so as to enhance customer experience as well as ensure a smoother movement to 4G technology. The new network will help China Telecom attract new subscribers and increase its customer base.
According to reports, Wei Leping, Chairman of China Telecom Science & Technology Committee, has said that working with Alcatel-Lucent gives them confidence that they can attract a growing number of subscribers in China, knowing that they can offer all their customers, old and new, the services, speeds and experience they expect, now and in the future.
Rajeev Singh-Molares, President of Alcatel-Lucent’s activities in the Asia-Pacific Region, has reportedly said that Alcatel-Lucent’s long history of CDMA leadership together with their knowledge of the China market and China Telecom’s network allows them to help them meet rising demands for mobile broadband. Their expertise and understanding will allow China Telecom to maintain quality as their customer base grows, as well as prepare for the faster future of 4G LTE mobile broadband, and for the new applications and demands it brings.
