SES ASTRA launches broadband project to provide ASTRA2Connect (Europe)

European satellite operator, SES ASTRA has launched a new service that aims to provide communities in areas without conventional broadband internet access with its satellite-based broadband service ASTRA2Connect.

The so-called sub-distribution service allows telecoms firms to offer satellite-based broadband connections via the existing last mile infrastructure.

The sub-distribution allows SES ASTRA to provide small communities in the white spots with broadband connections of up to 6 Mbit/s without households needing to install a satellite antenna at their homes. The satellite broadband connection is installed at the street cabinet of the community, and that is then connected to the customer’s home through the existing landline phone network in the village.

End customers only need a standard DSL modem, to access the broadband internet.

According to Norbert H¶lzle, Chief Commercial Officer at SES ASTRA, they are very proud to be able to contribute to the current broadband discussion with such an innovative solution. Their sub-distribution solution bears an enormous potential to close the white spots in Germany while promoting cooperation between infrastructure providers and telco operators at the same time. They are convinced that they are offering an attractive service for communities, internet service providers and end customers alike.

Impact of shutting down internet and mobile phone services in Egypt

The recent figures from the OECD suggest that the five-day shut-down of internet access in Egypt resulted in direct costs of at minimum US$90 million.

This amount refers to lost revenues due to blocked telecommunications and Internet services, which account for around US$18 million per day, or, on a yearly scale, for roughly 3-4% of GDP.

Though, this amount does not include the secondary economic impacts which resulted from a loss of business in other sectors affected by the shutdown of communication services e.g. e-commerce, tourism and call centres. The IT services and outsourcing sector in Egypt has been a growing part of the economy and relies heavily on the Internet and communications networks.

IT outsourcing firms in Egypt made US$1 billion in revenues in 2010 (or around US$ 3 million per working day), servicing overseas customers through call centres, helpdesks, etc.

The longer term impact of the Internet and communications shutdown on Egypt’s economy is hard to assess.

The shutdown may impact negatively on foreign direct investment in the ICT sector and industries that rely on stable communications and the Internet. The loss of connectivity for five days to these vital business services could make them reconsider overall outsourcing plans. Attracting such firms has been a key strategy of the Egyptian government.

Egypt has other sectors that depend on Internet and communications, notably a vibrant tourism sector.

Indonesia to get filtered Internet access by RIM

Research In Motion (RIM) has planned to filter pornographic internet content for BlackBerry users in that country.

According to the company, RIM is fully committed to work with Indonesia’s carriers to put in place a prompt, compliant filtering solution for BlackBerry subscribers in Indonesia as soon as possible.

This marks the first time that RIM has applied internet filtering in any country, and the move came after Indonesian Information Minister Tifatul Sembiring threatened to shut down the BlackBerry browsing service. It is estimated that RIM has approximately two million users in Indonesia, and analysts report that the market represents one of the fastest growing for the BlackBerry.

Indonesia has also asked RIM to use a local server to enable the government access to data sent via BlackBerry. The company contended that establishing an Indonesian presence will have no impact on its ability to decrypt the data flow on its devices, should it be required to support an investigation.

Afghanistan likely to launch 3G in 2011

Afghanistan is expected to roll out 3G telecoms services next year. According to government minister Baryalai Hassam, Afghanistan will likely launch 3G telecoms services next year, giving one of the world’s fastest-growing markets speedier internet access.

As per Hassam, the Telecommunications Ministry is in talks with the four Afghan mobile carriers on upgrading to a 3G or possibly 4G network. The government is in the end of 2010, and probably in 2011 3G will take place in Afghanistan. It can be further, maybe even 4G. Discussions with carriers involved whether the 3G spectrum should be auctioned off or distributed among the companies. Carriers argue that distribution will generate economic growth and thus tax revenue.

Hassam added that with 80% of Afghanistan now getting telecoms coverage, it’s time to move from the slower 2G GSM standard to new-generation mobile services.

Safaricom Plans to bank on its lead in 3G infrastructure

Kenya’s biggest mobile-phone company, Safaricom Ltd. is planning to capitalize on its lead in 3G infrastructure by selling laptops and offering services to new and existing customers.

The company is the only operator of a 3G telecommunications network in Kenya.  According to Chief Executive Officer Bob Collymore, in the first half of its fiscal year, Safaricom became the biggest importer of laptops in the country as it seeks to boost Internet access in the East African country. The company has mobile data; the other companies don’t have mobile data. So what they have to do is take advantage of that lead. The company thinks they have about an 18-month lead before they catch up to the point where they are.

Most of the mobile operators like Safaricom, Bharti Airtel Ltd. (Kenyan unit ) and Telkom Kenya Ltd. are becoming more dependent on data for revenue after the industry regulator in August halved the rates that operators charge each other to connect calls across networks to US$0.03. That generated a round of cuts in call costs by companies to less than US$0.02 per minute and in some cases free calls during off-peak hours.

Collymore added that the so-called interconnection costs may be reduced further. In July the company will see a further cut in interconnection tariffs to less than US$0.02. Average revenue per user in the company’s voice business fell 13 % to US$4 million in the first half.

Operators are betting that increased data traffic will make up for the lower voice revenue and are offering customers laptops, net books or smart phones to attract new clients.

According to Informa Telecoms & Media, a London-based research group, by 2015, there will be 265 million mobile broadband subscriptions in Africa, up from about 12 million at the end of September.

As per Collymore, Safaricom imported 40,000 laptops in the last six months till September. The company reported 15% increase in first-half profit  and also bought 400,000 data-enabled handsets, or smartphones, and sold 45,000 data modems.

Collymore noted that customers using Safaricom’s data services surged 92% to 3.61 million people in the six months through September from a year earlier. About 839 base stations, or 37% of the total, are enabled to transmit 3G signals, which enable faster Internet browsing and downloading. Safaricom intends to increase that ratio to 50% within two years.  Safaricom will also seek more licenses to provide additional services to its more than 16.7 million customers.

Safaricom is 40% owned by Vodafone Plc, the world’s biggest mobile-phone operator. Vodacom Group, the largest provider of mobile phone services to South Africans, is 65% held by Vodafone.

Telmex profit plunges in Q3

Tel©fonos de Mexico, Mexico’s largest fixed-line telephone company owned by billionaire Carlos Slim has reported its Q3 results. The company saw 21.5% fall in profits as they face stiff competition from cable and mobile operators.

According to the company, net profits between July and September were US$306 million, even lower than analysts’ forecasts, which were for a drop of just over 19%.

In a statement, Telmex reported that its number of fixed lines fell 1.7 million during the past year to September to 15.6 million subscribers. That loss still left the company controlling 78.7% of Mexico’s fixed phone lines. Total sales during the quarter were US$2.29 billion, down 3.2% on the same quarter last year.

As per the analysts, Telmex faces stiffer competition from cable companies in Mexico, which offer their customers triple play packages of telephone, television and internet access.

In its statement on Monday, Telmex complained that the restrictions were depriving customers of the benefits of so-called convergence of technologies. This effect is delaying the development of the information society in the country.

Telmex confirmed that it had added 220,000 broadband subscribers between July and September to bring the total number to 7.3 million. During the same period last year, the company had 6.4 million broadband subscribers.

Telefonica Del Peru net profit raises in Q3

Peru’s largest telecommunications company, Telefonica Del Peru SAA, recorded third-quarter net profit of US$120 million compared with US$88.20 million in the same period of the previous year.

According to the company, operating revenues were US$341.71million in the third quarter compared with US$ 351.99 million in the same quarter a year earlier. The company posted a gain of US$39.15million for the sale of assets.

Spain’s Telefonica SA controls Telefonica Del Peru, which still has a small float on the Lima Stock Exchange.

The company is a Peru-based company principally engaged in the telecommunication sector. The Company’s activities include the provision of fixed and mobile telephony services, domestic and international long-distance calls, public telephony, Internet access, facsimile transmission services, electronic voice messaging and cable television, among others.

The Company owns such subsidiaries as Telefonica Moviles SA, Telefonica Multimedia SAC, Telefonica Servicios Comerciales SAC, Star Global Com SAC, Telefonica Servicios Digitales SAC and Telefonica Servicios Integrados SA.

Verizon Communications Inc. – Q3 2010 Earnings Preview

Verizon Communications Inc. is scheduled to report Q3-2010 results on Friday, October 22, 2010. In two of the last four quarters ending June 2010, the company’s reported esp. exceeded analysts’ consensus estimates but fell short in the other two quarters.

Verizon is a provider of communication services. Verizon operates in two segments: Domestic Wireless and Wireline. Its Domestic Wireless’s products and services include wireless voice and data services and equipment sales across the United States. Wireline’s communications products and services include voice, Internet access, broadband video and data, next generation Internet protocol (IP) network services, network access, long distance and other services. It provides these products and services to consumers in the United States, as well as to carriers, businesses and government customers both in the United States and in 150 other countries worldwide. On January 9, 2009, the Company acquired Alltel Corporation (Alltel). In July 2010, Frontier Communications Corp acquired New Communications Holdings Inc., Verizon Communications Inc.’s local wireline operations in 14 states.

Verizon’s total operating revenues were $26.8 billion in second-quarter 2010, a decrease of 0.3 percent compared with second-quarter 2009. The company reported a loss of 7 cents in basic earnings per share (EPS) in the quarter, which included $2.3 billion in pre-tax costs for workforce reductions associated with a second-quarter incentive offer that will lead to approximately 11,000 voluntary separations this year.  This compares with earnings of 52 cents per share in the second quarter of 2009.

Verizon Wireless added more than 1.3 million net subscribers in the second quarter of 2010 (665,000 retail post-paid customers), and, together with peer AT&T, it continued to capture market share as it did in 2009. Strong wireless rivalry has raised the level of competition, in our view, with new unlimited service plans and data-equipped devices gaining significant appeal in a highly penetrated market. As of June 2010, Verizon Wireless had a 1.3% monthly total churn rate, and its retail post-paid monthly service revenue per user was $52, up 1% from a year earlier. Wireless data average revenue per user rose 19% in the second quarter of 2010 and comprised 35% of service revenues. The segment’s EBITDA service margin of 47.5% was the best in the industry. As of June 2010, 35% of Verizon Wireless’s retail post-paid customers had a smart phone or similar data-centric device.

Analysts’ estimates for the third quarter range from a low of $0.52 to a high of $0.56, compared to a consensus estimate of $0.541. For the third quarter, the consensus EPS forecast has remained the same over the past week at $0.541 and increased over the past month from $0.539 to $0.541 (0.37%). Of the 27 analysts making quarterly forecasts, 5 raised and 1 lowered their forecast.

Last month, VZ announced that Lowell McAdam, currently head of Verizon Wireless will become COO, and Francis Shammo, currently president of VZ’s wireline operations, will become CFO in Q4. McAdam’s current roles are also being filled internally. I believe these moves support VZ’s succession planning, highlights the deep managerial bench at VZ and are unlikely to result in major shifts in financial priorities.

The stock closed Thursday at $32.44, compared to 52 week range of $25.99 and $34.13. YTD, the share price is down by $0.98 or 2.93%. Last month the company announced plans to raise its quarterly dividend 2.6%, payable in November. The modest increase is consistent VZ’s recent history of dividend hikes, the July spin-off of certain relatively high EBITDA margin wireline assets and planned capex to largely support its wireless network. With modest near-term earnings growth expected I see the stock fully valued at current levels.

Verizon Wireless `Mystery’ Charges Show Need for Oversight (USA)

According to three Democratic U.S. senators Verizon Wireless’s admission it billed customers for mistaken Internet access shows the need for regulators to oversee mobile-telephone billing practices.

As per the letter to FCC Chairman Julius Genachowski by Amy Klobuchar of Minnesota, John Kerry of Massachusetts and Mark Begich of Alaska, the Federal Communications Commission should remain committed to vigorous oversight.

The FCC is probing Verizon Wireless, the largest U.S. wireless company, for charging 15 million customers mystery” fees for data use on their mobile phones.

The FCC started its investigation 10 months back after customers complained about the fees, the FCC revealed in a statement on Oct. 3.

According to reports, Verizon Wireless has put the amount of the overcharges at more than US$50 million in the past two years.

Verizon Wireless which is owned by Verizon Communications Inc. and Vodafone Group Plc will refund the amount to 15 million customers in the next two months. The refunding  per customer is between US$2 to US$6.

Text Messaging in cut-off Muslim region restored by China

www.WirelessFederation.com/news: The mobile text services along with limited Internet access suspended for months following unrest in the Western province has been restored by China. 20 text messages a day can be send by the residents in the Xinjiang region, which is home to China’s Uighur ethnic minority but making international phone calls unless registered with authorities is still not allowed.

As far as the Internet service is concerned, only state-run news portals and certain regional Web sites are among the only viewable sites so far. Virtually all Internets, text message and international call services in the region was cut off in China after deadly ethnic riots claimed nearly 200 lives last July.

The Uighurs is mostly Muslim people that have sometimes complained of unfair treatment at the hands of a government led by China’s ethnic majority, the Han Chinese.