Dispute between H3G and other telcos opened for consultation by Ofcom

www.WirelessFederation.com/news: A consultation on a draft determination has been published by UK’s telecoms regulator Ofcom to resolve disputes between the country’s smallest mobile network operator Hutchison 3G UK (H3G) and each of its four major rivals O2 UK, Vodafone UK, Orange UK and T-Mobile UK.

The mobile termination rates (MTRs) for calls to ported numbers is the reason behind the disputes between H3G and the other telcos. H3G applied to the regulator in March 2008, to examine the four spate cases to be resolved.

It has already been concluded by Ofcom that a switch to alternative charging arrangements could be appropriate. However, it has also noted that the other operators acted reasonably in rejecting previous proposals from H3G regarding changes to the existing arrangements. The calculation will close on February 12.

SingTel plans to float Optus share as Australian IPO

www.WirelessFederation.com/news: With an aim to raise about A$4 billion, 25% stake of Australian unit Optus is planned to be sold by Singapore Telecommunications Ltd through an initial public offering in Australia. Southeast Asia’s largest telecommunications firm by revenue, Singtel, acquired Optus in 2001 through a bid valuing the Australian telecommunications firm at A$17 billion.

Though Optus is a cash cow for SingTel, 23.0% loss was incurred in the second fiscal quarter compared with 23.2% at the same time a year earlier. The company revenue was 27.8% in the fourth quarter of the previous fiscal year ended March 31.

The pressure will further intensify with the entry of Vodafone Hutchison in the Australian market. In order to deal with the rising competition, the operator is set to create a cash war-chest for acquisitions and expansion in markets outside Australia and Singapore.

According to Singtel, it is evaluating investment opportunities in China and is also interested in taking a stake in Vietnam’s MobiFone.

Faulty Handset Policy fixed by Vodafone Hutchison Australia

www.WirelessFederation.com/news: Court enforceable undertakings from Vodafone Hutchison Australia have been accepted by the Australian Competition and Consumer Commission. The decision came after an investigation into alleged misrepresentations about consumers’ rights to a remedy for faulty mobile phones.

It was alleged that from 1 May 2008 to 8 June 2009 a handset direction was implemented by Hutchison which involved staff making representations to its customers and that the only remedy available to them for a faulty mobile phone was a repair.

According to ACCC chairman Graeme Samuel, Hutchison created an untenable situation where consumers with 15 day old faulty mobile phones were told they were only entitled to a repair, while a customer was able to obtain a replacement mobile phone was during the ‘early life failure’ period, which was normally 14 days after purchase.

Vodafone fined for spamming in Australia

VODAFONE Hutchison Australia and Coke have become been caught by an anti-spam law, prompting the Australian government to re-iterate that it will strongly impose the six-year-old law.
Vodafone agreed to pay $110,000 after it sent 100,000 text messages to Vodafone customers last October as part of a marketing campaign for Coca-Cola. Where the law is breached, the regulator has several options, including a formal warning, an enforceable undertaking, fines of up to $110,000 a day, and Federal Court action in the most extreme cases.
The Australian Communications and Media Authority investigated whether the messages breached the 2003 Spam Act because they did not give recipients a means to unsubscribe or contact the sender.
The messages was: ”Take a hint from your PC and reboot. You’ll work faster. Reclaim your lunch hour with a friend. Escape with a Coca-Cola lunch break.”
The payment was part of an enforceable undertaking by Vodafone Hutchison, which owns Vodafone, and the marketing companies New Dialogue and Big Mobile.
Vodafone Hutchison agreed to pay but it stated that it would continue marketing campaigns via mobile phones.
Interestingly, last month the Federal Court fined companies and individuals $15.75 million for spam text messages targeted at users of a dating website.

VODAFONE Hutchison Australia and Coke have become been caught by an anti-spam law, prompting the Australian government to re-iterate that it will strongly impose the six-year-old law.

Vodafone agreed to pay $110,000 after it sent 100,000 text messages to Vodafone customers last October as part of a marketing campaign for Coca-Cola. Where the law is breached, the regulator has several options, including a formal warning, an enforceable undertaking, fines of up to $110,000 a day, and Federal Court action in the most extreme cases.

The Australian Communications and Media Authority investigated whether the messages breached the 2003 Spam Act because they did not give recipients a means to unsubscribe or contact the sender.

The messages was: ”Take a hint from your PC and reboot. You’ll work faster. Reclaim your lunch hour with a friend. Escape with a Coca-Cola lunch break.”

The payment was part of an enforceable undertaking by Vodafone Hutchison, which owns Vodafone, and the marketing companies New Dialogue and Big Mobile.

Vodafone Hutchison agreed to pay but it stated that it would continue marketing campaigns via mobile phones.

Interestingly, last month the Federal Court fined companies and individuals $15.75 million for spam text messages targeted at users of a dating website.

CAT gets nod to purchase Hutchison-CAT’s cellular businesses.

The board of CAT Telecom has given the green light to sign a memorandum of understanding with Hutchison Telecom on CAT’s plan to buy four Thai cellular and related businesses from the Hong Kong telecom operator. Hutchison-CAT is a 75:25 joint venture of Hutchison Telecom and CAT.

The board has assigned CAT CEO, Jirayuth Rungsrithong to sign the MOU before the end of this week.

CAT will buy BFKT, a wholly owned subsidiary of Hutchison Telecom. CAT also plans to buy assets of Hutchison Telecom in the joint venture – its call centre and content businesses.

The CAT board also approved the plan to hire Allen & Overy for legal advisory services, Bualuang Securities for financial advisory services and Chulalongkorn University’s Chula Unisearch for HR advisory services.
CAT will transfer under itself a combined 1,000 employees of the four businesses it plans to buy.

Hutchison Telecom had invested about Bt30 billion in the CDMA business since Hutchison-CAT’s service debut in 2003.

Interestingly also, Krisda said CAT was concerned about a clause in the draft law governing the creation of the new broadcasting and telecom regulator in Thailand. The clause mandates that if CAT were to list shares in the stock exchange, it will have to either pay half of its revenue to the state or return to the state the spectrum it granted to private concessions.

Hutchison 3G Austria modernizes its network for HSPA+ and LTE

Hutchison 3G Austria is modernizing its radio access network to be ready for HSPA+ and the next generation of mobile broadband, or LTE. At the same time this step will allow the operator to halve the energy consumption of its base stations. Nokia Siemens Networks will undertake this upgrade starting in autumn 2009.

The demand for increased mobile broadband capacity and throughput in Austria is reflected in the increasing usage of data cards and mobile services like Mobile TV, video download or video sharing,” said Berthold Thoma, CEO of Hutchison 3G Austria. Mobile broadband is also one of the most pragmatic solutions to bridging the digital gap between cities and rural areas. For rural areas, mobile broadband coverage is simply less expensive and faster to deploy than fiber to the home” solutions. We hope that with our nationwide coverage we will contribute significantly to this end.” (more…)

ZTE to market $20 mobiles in India

ZTE has entered the Indian retail market as a standalone player.

It is hoping to hike the contribution of the Indian market to its global handset sales would go up to 20 per cent from the existing 16 per cent.

ZTE India Chairman & Managing Director D K Ghosh said in a statement that India is a key focus market for ZTE.

The company has launched a range of low-cost GSM handsets — S315, A261, R220, R230 and R230BT at price points ranging from USD 20 to USD 80. ZTE has sold over 20 million handsets in India through operator partnerships . It is targeting a network of 100,000 retail outlets in India by this year-end.

The company has appointed “Overseas Mobiles” as its national distributor. Overseas Mobiles will be appointing 80 regional distributors across India and will manage relationships with distributors and corporate customers on behalf of ZTE.

With global sales of over 100 million handsets last year, ZTE is currently the sixth-largest handset manufacturer in the world. It has established partnerships with mobile operators like Vodafone, Hutchison Whampoa, Telefonica globally and BSNL, Reliance, Tata, Vodafone, Spice Telecom and Aircel in India.

Samsung, LG face stalled mobile phone market growth

SINGAPORE/SEOUL: Wrestling with falling mobile phone sales and shrinking market shares, South Korea’s Samsung and LG yearn for the days when their high-tech, pricey phones were the talk of the town.

The South Korean makers face stalled volume growth whereas rivals Nokia Oyj and Motorola Inc are cashing in on trends to go slim and stylish in advanced markets or cheap in emerging markets, such as India.
Analysts say Samsung Electronics Co Ltd and LG Electronics Inc should shift their focus to low-cost phones to catch up, or take the lead, in next-generation technology phones or mobile TV handsets.
“Nokia, Motorola and Sony Ericsson have experienced tremendous growth globally over the last few years – much of this can be attributed to the low-cost handset market, an area where LG and Samsung are not particularly strong,” said Bengt Nordstrom, an analyst with wireless consultancy inCode.
Another issue has been their inability to establish a strong brand, analysts said. Nokia has the scale and brand to control the market, Motorola has achieved cult-status with its blockbuster ultra-thin RAZR, and Sony Ericsson has focused on music and photography, leveraging the Sony Walkman and Cybershot brands to enhance its appeal to younger users. “Samsung and LG’s lack of differentiation is holding them back,” Nordstrom said.
Just two years ago, Samsung was poised to overtake Motorola’s number 2 spot, but its market share is now half the size of Motorola’s, with 26.3 million phones sold against the US rival’s 51.9 million in the April-June quarter.
One reason is the RAZR. Take Chua Chin Yang, a 27-year-old Singaporean freelance writer, who ditched his Samsung C200 handset this year. “I switched to Motorola because its handset designs look better and feel better, compared with Samsung’s, which are bulky and so uncool,” said Chua. “I love the RAZR because it’s so slim, easy to carry and the materials used to make the phone are also hardy.”
Nokia saw a 29 per cent boost to 78.4 million phones, but LG yielded its number 4 position to Sony Ericsson, selling 15.3 million phones against its rival’s 15.7 million.
LG also saw Motorola and Nokia eating into its business with key operators Verizon Communications Inc and Hutchison Telecommunications, leading to losses in its handset business for the second quarter in a row.
“The two megatrends in GSM over the last two years are ultra-thins and smart phones. Samsung has underperformed in both markets,” said Strategy Analytics analyst Neil Mawston. “Samsung cannot afford to miss the next megatrend, whatever it may be.”
With a focus on advanced cellphones and a few low-cost models, Samsung and LG have also missed out on the boom in emerging markets.
“Both Samsung and LG have advanced in next-generation technologies, such as WCDMA, HSDPA, WiMax and multimedia, but these markets have not blossomed yet,” said Suran Seong, analyst with research firm Ovum. “The convergence trend where several technologies or functionalities are packed into a phone, which the Korean vendors have stressed, may not be what all users want,” she added.
LG also had a late entry into the GSM market – the dominant digital mobile standard. About 60-70 per cent of its revenues come from CDMA technology, which is facing shrinking demand. “Starting the GSM business late was one big mistake we made,” LG Electronics finance chief Y.S. Kwon told investors recently.
The world’s two 2G mobile standards are GSM and CDMA. GSM was advocated by governments of western Europe and by firms, including Ericsson and Nokia, while CDMA was backed by the US and companies like Qualcomm Inc.
“The core problem for LG is its limited GSM distribution network. It launches a cool device like the chocolate phone, but struggles to get them on operators’ shelves,” said Mawston. – Reuters

Source- http://www.btimes.com.my

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