Wireless Federation

Mobile broadband positioned to meet unmet demand in Ecuador

On 03.05.11, In Mobile, By Editor

A new research report has revealed that operators in Ecuador are aggressively expanding their 3.5G HSPA coverage because they are all looking to mobile broadband as a way to sustain future growth.

As per researchers, Ecuador’s telecommunications market is one of extremes. The country’s highly penetrated mobile market boasted a 107% mobile subscription rate at year-end 2010, while the fixed market remains at 14.5% narrowband penetration unfavorably with the Latin American average of 16.7%. Ecuador’s broadband penetration only 2.7%, less than half of the regional average of 7.2%.

They added that though under penetrated fixed, broadband and pay-TV markets might suggest faster growth rates, a sometimes complicated regulatory environment – as evidenced by the 2008 renewal of Porta and Movistar’s cellular licenses – as well as limited competition, will maintain the growth rates at modest levels.

Given Ecuador’s relatively low fixed broadband penetration, operators see mobile broadband as the primary vehicle for meeting unmet demand for broadband connectivity in Ecuador. Due to the limited coverage, low connection speeds and high tariffs researchers believe that mobile operators will take the bulk of the traditionally fixed broadband opportunity in Ecuador. Porta, Movistar and Alegro are all actively pushing their mobile broadband platforms as an alternative to fixed broadband.

Bouygues Telecom posts full-year 2010 results (France)

On 03.03.11, In Mobile, By Editor

French fixed line, broadband and mobile services provider Bouygues Telecom has announced that its sales rose 5% year-on-year to US$7.786 billion in 2010 and sales from network services increased by 4% at US$7.01 billion.

The telco added that excluding the impact of the cut in voice and SMS call termination rates, sales from network services would have climbed by 14% year-on-year.

According to Bouygues, in 2010, it successfully offset the effect of reduced call termination rate differentials and higher taxes, with EBITDA rising 2% y-o-y to US$1.88 billion, although net profit fell 6% to US$615.29 million, reflecting higher amortization charges mainly linked to commercial success in the fixed broadband segment.

Bouygues Telecom added 842,000 net new mobile contract customers in 2010, representing 23% of net market growth for the segment. The telco had a total of 11.084 million mobile customers as at 31 December 2010, 79% of them on a monthly call plan, increased by 2.5 percentage points over the year.

In addition, strong growth continued in the fixed broadband business, with 154,000 new customers signing up in the fourth quarter of 2010, and 494,000 over the year as a whole, giving the operator a total of 808,000 fixed broadband customers at the year end.

Filed under:Mobile Tagged with: Bouygues Telecom • Broadband • EBITDA • Fixed Broadband • Fixed Line • France • Mobile • mobile services provider • SMS call termination • Year-on-year

Malaysian mobile broadband market to be worth US$3 billion by 2015

On 02.14.11, In Mobile, By Editor

A new research report has revealed that the Malaysian mobile broadband and data market was worth about US$2 billion in 2010 and is expected to reach US$3 billion by 2015.

According to researchers, the mobile subscriber market is heading towards saturation and all market players are looking at mobile broadband as a growth driver. While Malaysia’s mobile market is saturated with a subscriber penetration rate of 117% in 2010, mobile broadband and 3G services still represent significant opportunities with wireless broadband having the potential to achieve up to 5.6 million subscribers by 2015.

Wireless broadband has been fast gaining popularity over fixed broadband with almost 2 million wireless broadband subscribers compared to 1.65 million fixed broadband subscribers in 2010. In 2009, fixed broadband dominated over wireless broadband with 1.4 million subscribers to 0.9 million subscribers.

Still, fixed broadband will gain market share in 2011 and 2012 due to the introduction of high-speed broadband and wholesale deals by Maxis and Celcom. Governmental support for high-speed broadband will also help drive the fixed broadband market. The Malaysian fixed broadband market is expected to reach 2.2 million subscribers in 2015.

The increasing use of smartphones, driven by rapid price decline and application richness, has increased demand for mobile broadband. Smartphones access the internet via a 3G connection, allowing users to be connected on the go without the need for dongles.

According to researchers, with the Internet user base to reach 23-25 million by 2015, it is expected that 70% of them would have access to a personal internet connection. The smartphone strategy will be the big bet of all mobile operators going forward especially when almost 13 million broadband users are expected to access the internet via smartphones by 2015.

Other areas of interest include the enterprise services market which consists of data center services, M2M services, IT/System Integration services, and WAN services. The enterprise services market earned revenues of RM2.7 billion in 2010 and is expected to reach RM5.8 billion in 2015, making it the fastest growing ICT market in Malaysia.

The Malaysian Data Center Services market is set to grow at 16 percent CAGR with Cloud Computing to be an important driver of growth as Malaysian enterprises demonstrates increasing interest in Cloud services.

SaaS, the dominant segment of the Cloud market, is set to witness strong growth powered by CRM, Collaboration and HRM applications in the Malaysian market.

Researchers add that enterprises in Malaysia have recently begun embracing the SaaS delivery model. Their interest is primarily driven by the lower total cost of ownership in the services model, the conversion of CapEx to predictable OpEx and the ability to scale up or down depending on business needs.

Motivated by the growing interest, an increasing number of global participants are showing high level of activity in the country, which is helping improve awareness levels across enterprises.

However, enterprises continue to remain skeptical of Cloud adoption due to Security and Privacy concerns. This, along with the low reliability of broadband internet in the country, may hamper BAaaS adoption in the short-term. The government’s efforts towards building a knowledge economy and improving broadband infrastructure may alleviate these challenges in the long run.

Filed under:Mobile Tagged with: 3G • CAGR • CAPEX • Celcom • collaboration • CRM • Data Market • Fixed Broadband • HRM applications • IT/System Integration services • M2M services • Malaysia • Malaysian mobile broadband • Maxis • Mobile • mobile subscriber market • OPEX • WAN services • wireless broadband

Mobile broadband must be treated as complement to fixed broadband

On 02.03.11, In Mobile, By Editor

A study of the telecoms and media activities of 6000 consumers across Europe and the USA reveals that attempts to sell mobile broadband as an alternative to fixed broadband are likely to fail in European and US markets because there is a strong, and correct, perception among consumers that mobile broadband is slower, less reliable and more expensive than fixed broadband. Where consumers have a choice between fixed and mobile broadband, mobile broadband should not be sold as the primary means of access, but as a complement.

More than 70% of respondents who expressed an opinion agreed with statements that mobile broadband was slower, less reliable and more expensive than fixed broadband. Customers are also becoming increasingly happy with their fixed broadband service. Of respondents who said they were not interested in mobile broadband, 72% said it was because they are happy with their fixed service (up from 65% last year).

The positive message for service providers is that customers have realistic expectations for mobile broadband, and are not taking it to be a direct equivalent to fixed broadband. If they were, they would likely be disappointed. To sell mobile broadband as a substitute for fixed broadband would mean cutting prices while providing a poorer service – something that is unlikely to be satisfactory in the long term. About 13% of mobile broadband subscribers are already planning to drop the service. By comparison, less than 1% of subscribers intend to abandon their mobile voice service.

The factors that might attract consumers who are not currently considering mobile broadband – price reductions and network improvements – would be costly to implement. Prices are already low in many markets and, given the cost pressure on mobile broadband; it is unlikely that operators will reduce them further.

The solution is simply to focus on mobile broadband’s unique benefit in comparison with fixed broadband: the ability to connect to the Internet while on the move. The survey found that mobility was the most important factor for those who are planning to take up or are considering a mobile broadband subscription. No other factor provides an easy method of selling the service.

Filed under:Mobile Tagged with: Europe • Fixed Broadband • Mobile • Mobile broadband • USA

BT beats cash-flow target

On 11.12.10, In Mobile, By Editor

BT has beaten its EBITDA and cash-flow forecasts after controlling the losses at its Global Services division during calendar 3Q the firm’s fiscal second quarter.

The telco expects to make free cash-flow of US$3.13 billion or more this year, two years ahead of its original schedule, after growing EBITDA 3% in its second quarter 2010, and pre-tax profits by 48%.

BT’s Global Service division cut its operating loss from US$123.97 million to US$55.85 million year-on-year, despite revenues falling US$44.95 million to US$2.58 billion on the back of lower wholesale call numbers in mainland Europe.

The division’s EBITDA grew as UK government contracts contributed to a 50% rise in orders.

Lower consumer calls and line revenues contributed to a decline in operating profit at the firm’s Retail division.

Revenues fell US$122.6 million to US$2.58 billion as business sales remained flat on 2009.

However, broadband subscriber numbers grew by 114,000, and the number of subscribers on a 20Mbps or higher fixed-broadband connection hit 1.6 million a six fold rise on 2009. Fiber penetration passed three million homes during the quarter, and the firm is picking up 4,000 orders for the service per week.

According to Chief Ian Livingston, the significant progress made in improving profits and cash-flow enabled the firm to invest in building the foundations for revenue growth in 2012-13.

Filed under:Mobile Tagged with: BT • BT Global Services division • Cash Flow • EBITDA • Fiber penetration • Fixed Broadband • Retail division • UK • Year-on-year

Poland’s Mobile Market expects growth with new MNOs

On 11.01.10, In Mobile, By Editor

According to a new report from Pyramid Research, LTE is expected to gain 11% of total subscriptions in 2015, while 3G will make up 69% of subscriptions in 2015, boosted by mobile player investment into HSPA+ networks.

Pyramid expects that the Polish market to grow at a CAGR of 1.7% in local currency terms in the forecast period, reaching US$14.7 billion by 2015, making it the second largest in Central and Eastern Europe, after Russia.

According to Sylwia Boguszewska, Analyst for Pyramid, this growth is driven by the proliferation of fixed broadband and related services, stemming from more intense competition, as well as mobile data, bundled with smartphones and computing devices.

As per Boguszewska, the Polish mobile market is almost evenly divided between the three largest MNOs – PTC, Orange, and Polkomtel. In 2009, two MNOs owned by Aero 2, CenterNet, and Mobyland entered the market. In September 2010, these latest entrants announced the launch of a LTE network, which is set to have a commercial debut towards year-end 2010. Aero 2 is also in possession of a LTE license, and a tender for more LTE spectrum is set to take place in 2011.

Pyramid expects that the mobile arm of the incumbent (Orange) will recover its leadership position. The other operators (Aero 2, Mobyland, and CenterNet) will hold a combined market share of 4% by the end of the forecast period, their competitive advantage being their first mover strategy in the LTE space.

Although CenterNet and Mobyland will provide wholesale services, there are already several players, including the leading DTH operator Cyfrowy Polsat, that are interested in reselling 4G Internet services.

Filed under:Mobile Tagged with: 3G • 4G • Aero 2 • ÂLTE • broadband-based services • CAGR • CenterNet • Central • Cyfrowy Polsat • DTH operator • Eastern Europe • Fixed Broadband • HSPA • Mobile • Mobyland • Orange • PC • Polkomtel • PTC • Pyramid Research • Russia • Sylwia Boguszewska

Telia’s LTE network changes mobile surfing habits of customers (Sweden)

On 05.04.10, In Mobile, By Editor

www.WirelessFederation.com/news: Mobile surfing habits has been changed by a quarter of Telia’s LTE users because of gaining access to quicker mobile broadband. The result came out in survey conducted by Telia among its LTE customers during the 100 days after launching its LTE network.

26% of the total respondents said they work more on a mobile basis. 23 percent of the total said that they download larger files to a greater extent than previously, 19 percent watch online TV/stream movies, and 16 percent said they began surfing more after acquiring LTE. LTE has been adopted by those who are interested in technology.

Some of the other findings of the survey are- over 90 percent of LTE subscribers upgraded from an existing 3G subscription, 65 percent acquired LTE to complement their fixed broadband, and 43 percent have an iPhone. 54%of the subscribers are not in a mood to return to 3G currently.

LTE network was launched by Telia in Stockholm at the end of last year and 25 locations in Sweden will have LTE coverage by the end of the year.

Filed under:Mobile Tagged with: 3G • Fixed Broadband • FTE • iPhone • Launch • LTE • LTE network • Sweden • Telia • urope

Orange & T-mobile get approvals to merge. UK’s largest Mobile Operator is now in the making.

On 11.12.09, In Mobile, By Editor

The proposed merger between Orange and T-Mobile gets all the nods from competition authorities and government bodies in UK and Europe. This signals the creation of UKs largest mobile operator with 30 million users and a market share of around 37 percent.

Timotheus H¶ttges, the CFO of Deutsche Telekom said- “The negotiations were conducted in a fair way and I am certain that this spirit of professionalism and partnership will shape the future of our joint venture. It will set new standards as number one in UK mobile market.”

Of late, T-mobile has faired well but Orange has been fairing below expectations with its fixed broadband customer base dwindling to below the 1 million mark.

Most analysts believe that the merger will allow the companies to better leverage their synergies and develop competitive synergies in high growth sectors such as mobile broadband and roll out innovative services.

Filed under:Mobile Tagged with: 3 • Broadband • CFO • Companies • Competition • competition authorities • customer base • Deutsche • Deutsche Telekom • Europe • Fixed Broadband • Government • Joint Venture • Market Share • merger • Mobile broadband • Mobile market • mobile operator • operator • Orange • Partnership • T-Mobile • timotheus • UK • uk mobile • UK Mobile Market

TeliaSonera to be first with UMA fixed/mobile convergence

On 08.15.06, In Mobile, By Editor

Danish telco, TeliaSonera, will launch in November the first commercial service based on the global UMA standard enabling a cellular handset to be used to make VoIP calls over a home’s WiFi and broadband connection, and mobile calls outside.
According to an AFP report, TeliaSonera announced on Monday 28 August that it would launch in November a converged fixed mobile service under the name “Home Free” enabling callers to use a mobile phone at home as an IP phone.

The head of TeliaSonera in Denmark, Jesper Broekner, said in a statement: “We are introducing a product that combines the best of three worlds: mobile, fixed-line and Internet. Danish families will now be able to cancel their fixed line subscriptions at home without losing their home phone numbers, and at the same time save more than 20 percent on their phone bill.”

TeliaSonera said that, in future the technology could enable a cellphone to be used an IP phone if the user is in a Wi-Fi hotspot outdoors. The AFP report quoted TeliaSonera spokesman Rune Fick Hansen saying “We chose to concentrate first on usage at home…We may in a later phase extend this solution outside the home.”

Motorola announced in July that it had been selected by TeliaSonera to deploy its commercial UMA fixed mobile convergence solution for TeliaSonera’s planned UMA service launch in the second half of 2006.

Motorola said the contract “follows successful trials in 2005 and 2006 with TeliaSonera in Denmark and represents an important step forward in delivering Motorola’s vision of Seamless Mobility.”

Motorola will supply network infrastructure and integration and deployment services. Handsets for use with the service have not been announced. Motorola said that “TeliaSonera has trialled Motorola’s A910 device” but did not confirm that the A910 was part of the deal.

According to Motorola “UMA allows operators to use wireless LANs connected to fixed broadband connections as an alternative low-cost radio access network. With the technology users can seamlessly roam from cellular wide area radio access networks to wireless LAN to take advantage of better, higher speed, coverage and lower transport costs. Operators can therefore provide communications that are cost-effective in the home or at hot spots and the wide-area together with the convenience of a single handset with a single number, contacts book, voicemail and one bill. In addition, the delivery of wireless broadband to the mobile device when under WLAN coverage offers the potential to provide new data services for subscribers.

The Unlicensed Mobile Access (UMA) standard has been developed by global cellular standards body 3GPP and is already being trialled by several operators around the world. Clearly, it has the potential to erode cellular revenues but given users’ existing preferences for cellular telephony and their close relationship with their cellphone (it’s their personal phone with their personal number and stores all their contact details) it seems more likely that UMA will enable cellular operators to own the customer and provide the full range of telephone services. (in Denmark TeliaSonera focuses primarily on mobile services, broadband services and cable TV and is the second largest telco in the country).

A recent survey by Motorola indicates that more than 50 percent of the mobile subscribers in Western Europe would likely sign up for an Unlicensed Mobile Access (UMA1) service within the next 12 months, provided that mobile calls in the home were priced the same as fixed line calls.

Vodafone has already flagged its intention to expand from being an operator of cellular networks only. Earlier this year it set out a strategy to be a ‘total communications supplier’ by, initially, reselling DSL services and integrating PC, internet and mobile services to offer ‘seamless interoperability.

Source- http://www.itwire.com.au

Technorati : Mobile, Motorola, TeliaSonera
Ice Rocket : Mobile, Motorola, TeliaSonera

Filed under:Mobile Tagged with: Denmark • cellular networks • Danish • Fixed Broadband • HotSpot • IP phone • mobile calls • Network Infrastructure • radio access network • Sonera • Telia • TeliaSonera • USA • VoIP calls