Mobile industry to waste $500 on unnecessary base stations in 2011

On 02.15.11, In Mobile, By Editor

The mobile telecoms industry could be wasting upwards of US$500 million this year on unnecessary new base station equipment, according to a study by Arieso – a company that sells network management software.

According to the company, operators have been typically restricted to network measurement tools and techniques that do not provide granular, timely data on network performance. Without detailed information on congestion hotspots and coverage ‘holes’, locations for base stations are inevitably chosen that do not yield the intended performance. But with precision information, operators can accurately locate base stations to ensure that CAPEX will provide maximum return on their investment.

Operators are now deploying a large number of new base stations in direct response to the explosive growth in data usage. Arieso predicts that poorly placed base stations could result in $516 million of wasted CAPEX, from a predicted total base station investment of $5.6 billion in 2011.

According to Michael Flanagan, CTO of Arieso, every dollar counts. In an era when average revenues are declining and OPEX is rising, operators must ensure that their CAPEX is spent as wisely as possible. Intuition, inaccurate information, and guesswork simply do not suffice. Operators must adopt a new approach to network planning and optimization that uses timely, accurate and precise data to make critical investment decisions.

Finding the best location for base stations is much harder than it appears. The position of base stations relative to traffic density, and also relative to each other, is critical in order to provide the required coverage and manage interference.

However, attempting to position base stations with the limitations of existing tools and methodologies, such as high level OSS statistics and drive testing, can in extreme cases worsen network efficiency and user experience. Where this approach has been taken, operators have risked putting expensive base stations in locations that do not deliver the required performance.

Using actual customer usage data, Arieso monitors the real-world impact of different handsets in precise locations, and determines their effects on network performance. Operators can then use the data to efficiently manage their networks and deploy new infrastructure with surgical precision, for maximum ROI and to improve service quality for the customers.

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Transformation of OSS and BSS Systems Key to Growth for Service Providers, Finds Frost & Sullivan

On 12.22.10, In Mobile, By Editor

Service providers in the Asia Pacific are experiencing a changed market landscape. Falling average revenue per user (ARPU) for voice, increasing demand for mobile Internet, convergence everywhere (network, services, devices, and industries), and intense competition are necessitating operational efficiency, combined with innovation in rolling out new data services. Operations and business support systems (OSS/BSS) are the heart of successful business operation, supporting the service providers’ day-to-day operations as business entities.

To drive down costs and remain operationally efficient, and to maintain sustained growth in business, it is very important to follow the trends in OSS/BSS systems and transform, to respond efficiently to fluctuating customer demands. Service providers around the world have started responding to technology and regulatory changes by investing billions to enable their networks to deliver converged services in this Internet-driven communications ecosystem.

New analysis from Frost & Sullivan (http://www.carriernetworks.frost.com), OSS BSS Transformation in Asia Pacific, finds the market is witnessing a period of transition and service providers are transforming into customer-centric organizations with newly enhanced networks and robust infrastructures.

Customer ‘life changing’ services are on the rise; they are a combination of network capabilities, content, and user device features for addressing customer preferences defined by business, social or personal needs,” says Frost & Sullivan Research Analyst Vikas Chanani. Evolving IP network and technologies are facilitating the interaction of media and entertainment content along with network services.”

The most fundamental OSS/BSS capabilities and the building blocks which must be part of every customer centric and business transformation strategy going ahead in future are, Unified Real-Time Rating/Charging, Integrated Network Management, Data Analytics and Business Intelligence and Customer Experience Management.

The biggest challenge for service providers is to meet the exponential increase in demand for data services. The increasing gap between data and revenue is of major concern for them.

This growing demand for data is the result of increasing penetration of smart phones, also driven by demand for video, social media networks and other enterprise data services.

To remain competitive in this ever changing marketplace, service providers must be attuned to the subtle nuances of the market,” says Chanani. They must optimize and transform their existing networks to sustain growth levels and meet the changing needs of consumers by rolling out value-added offerings.”

If you are interested in more information on this study, please send an e-mail to Donna Jeremiah, Corporate Communications, at djeremiah@frost.com, with your full name, company name, title, telephone number, company e-mail address, company website, city, state and country.

OSS BSS Transformation in Asia Pacific is part of the Communications Infrastructure Systems & Software Growth Partnership Services program, which also includes research in the following markets: Web Analytics Engines: Do You Know Where Your Customers Are?, Tough New Business Drivers The Business Case for Convergent Billing, and Cross Industry 2.0 New Business Models: The Business Challenge and Orchestrating OSS BSS for New Revenue. All research services included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants.

About Frost & Sullivan
Frost & Sullivan, the Growth Partnership Company, enables clients to accelerate growth and achieve best-in-class positions in growth, innovation and leadership. The company’s Growth Partnership Service provides the CEO and the CEO’s Growth Team with disciplined research and best-practice models to drive the generation, evaluation, and implementation of powerful growth strategies. Frost & Sullivan leverages over 45 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from 40 offices on six continents. To join our Growth Partnership, please visit http://www.frost.com.

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Norcon 1H profit, revenue drops

On 09.24.10, In Mobile, By Editor

Global communications network specialist Norcon has reported a 20% decline in first-half pretax profit as revenue chop down, but claimed to be making good progress in its strategic expansion in the markets. In addition, other sales and operational costs were impacted by additional sales and marketing expenses.

For the first half, profit before tax was dropped to US$4.10 million from US$5.24 million last year. Norcon’s first- half pretax profit fell to US$4 million from US$5 million compared to year earlier.

Profits for the half year were US$2.78 million, lower than US$3.68 million last year. Pro forma earnings per share were US$0.06 from US$0.07 last year. Turnover for the six months dropped to US$34.24 million compared to the previous year.

Separately, the company announced that it has inked a contract with Norway-based telecommunications firm Ventelo, to provide assistance in designing and implementing operating support systems for the company.

Global communications network specialist Norcon has reported a 20% decline in first-half pretax profit as revenue fell, but claimed to be making good progress in its strategic expansion in the markets. In addition, other sales and operational costs were impacted by additional sales and marketing expenses.

For the first half, profit before tax was dropped to US$4.10 million from US$5.24 million in last year. Norcon’s first- half pretax profit fell to $4 million from $5 million a year earlier. It paid $2 million in operating and administrative costs compared with $1.8 million a year earlier.

Profits for the half year were US$2.78 million, lower than US$3.68 million a year earlier. Pro forma earnings per share were US$0.06 from US$0.07 last year. Turnover for the six months dropped to US$34.24 million from US$37.35 million in the previous year.

Separately, the company announced that it has inked a contract with Norway-based telecommunications firm Ventelo, to provide assistance in designing and implementing operating support systems for the company.

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EU roaming cap to stay says EU Advocate General

On 10.02.09, In Mobile, By Editor
British Mobile operators are facing defeat in their battle against EU plans to regulate international roaming rates, after the EU’s Advocate General ruled that the price caps were valid.
Vodafone, Orange, T-Mobile and O2 are challenging plans by the European Commission to regulate roaming charges on voice calls.
Luis Miguel Poiares Pessoa Maduro, the Advocate General and a key adviser to the European Court of Justice, ruled recently that the regulation is in the interests of the internal market in which ‘free movement of goods, services and capital is ensured’.
His decision is non-binding but in vast majority of cases rulings by Advocate Generals are heeded by the European Court of Justice. The final ruling will be delivered over the coming months.
Maduro said in a statement: ‘The differences in price between calls made within one’s own member state and those made while roaming could reasonably be regarded as discouraging the use of cross-border services such as roaming.’
The case was referred to the European Court of Justice in 2007 by the UK High Court.

British Mobile operators are facing defeat in their battle against EU plans to regulate international roaming rates, after the EU’s Advocate General ruled that the price caps were valid.

Vodafone, Orange, T-Mobile and O2 are challenging plans by the European Commission to regulate roaming charges on voice calls.

Luis Miguel Poiares Pessoa Maduro, the Advocate General and a key adviser to the European Court of Justice, ruled recently that the regulation is in the interests of the internal market in which ‘free movement of goods, services and capital is ensured’.

His decision is non-binding but in vast majority of cases rulings by Advocate Generals are heeded by the European Court of Justice. The final ruling will be delivered over the coming months.

Maduro said in a statement: ‘The differences in price between calls made within one’s own member state and those made while roaming could reasonably be regarded as discouraging the use of cross-border services such as roaming.’

The case was referred to the European Court of Justice in 2007 by the UK High Court.

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Telefonica reveals plans to test LTE in UK, Spain, Germany, the Czech Republic, Brazil and Argentina.

On 10.02.09, In Mobile, By admin
O2 has revealed plans to test long-term evolution (LTE) of 3G technology in the UK within the next few months.
Telef³nica announced this week that it will do trials of the Long Term Evolution of 3G networks (LTE) within the next few months across UK, Spain, Germany, the Czech Republic, Brazil and Argentina.
Telefonica’s O2 in the UK will be the first operator in the UK to carry out LTE trials. T-Mobile, Vodafone and Orange are all expected to follow O2′s lead in the future.
Alcatel-Lucent, Ericsson, Huawei, NEC, Nokia Siemens Networks and ZTE are supporting Telefonica’s initial technology trials, though it is still open to working with other suppliers.
LTE will allow Telef³nica to offer its customers peak mobile broadband speeds of up to 340Mbps ‘in ideal conditions’ and will also deliver more flexible use of its spectrum as well as boost network capacity.

O2 has revealed plans to test long-term evolution (LTE) of 3G technology in the UK within the next few months.

Telef³nica announced this week that it will do trials of the Long Term Evolution of 3G networks (LTE) within the next few months across UK, Spain, Germany, the Czech Republic, Brazil and Argentina.

Telefonica’s O2 in the UK will be the first operator in the UK to carry out LTE trials. T-Mobile, Vodafone and Orange are all expected to follow O2′s lead in the future.

Alcatel-Lucent, Ericsson, Huawei, NEC, Nokia Siemens Networks and ZTE are supporting Telefonica’s initial technology trials, though it is still open to working with other suppliers.

LTE will allow Telef³nica to offer its customers peak mobile broadband speeds of up to 340Mbps ‘in ideal conditions’ and will also deliver more flexible use of its spectrum as well as boost network capacity.

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T-Mobile UK agrees ninth major MVNO partner, Vectone. To take on Lyca and Lebara Mobile.

On 10.02.09, In Mobile, By admin
T-mobile along with Vectone intends to capture a large chunk of the increasing migration of international calling minutes on to the mobile.
Vectone is already established across Europe and has over one million customers across Denmark, Norway, Austria, The Netherlands and Switzerland.
T-mobile claims to have over 50% of the wholesale market already (virgin’s MVNO operation rides on t-mobile).
The Ethnic focussed, low-cost prepay service is estimated to target ten million potential subscribers in the UK generating more than seven billion calls per year.
T-Mobile, managing director Richard Moat said: ‘We are delighted to be supporting Vectone’s ambitious expansion plans for the UK market. The deal with Vectone signals our intent to become a major player in the ethnic MVNO arena.
‘With international calling card minutes rapidly migrating to mobile, this is an excellent time to be forging new partnerships in a segment which is showing signs of bucking the recession with strong projected growth rates.
‘Vectone builds on our eight existing MVNO partnerships and underlines our ambitions to target new growth areas in the wholesale market.’
T-mobile along with Vectone intends to capture a large chunk of the potential 7 billion calls per year of international calling from the ethnic community within the UK.
Vectone is already established across Europe and has over one million customers across Denmark, Norway, Austria, The Netherlands and Switzerland.
T-mobile claims to have over 50% of the wholesale market already (virgin’s MVNO operation rides on t-mobile) and with its ninth major partnership, there may be more to cheer about.
The Ethnic focussed, low-cost prepay service is estimated to target ten million potential subscribers in the UK.
T-Mobile, managing director Richard Moat said: ‘We are delighted to be supporting Vectone’s ambitious expansion plans for the UK market. The deal with Vectone signals our intent to become a major player in the ethnic MVNO arena.
‘With international calling card minutes rapidly migrating to mobile, this is an excellent time to be forging new partnerships in a segment which is showing signs of bucking the recession with strong projected growth rates.
‘Vectone builds on our eight existing MVNO partnerships and underlines our ambitions to target new growth areas in the wholesale market.’
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