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August 14, 2018
11:30
DT slams 5G suitor for unfair access demands
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Deutsche Telekom CEO Timotheus Hoettges (pictured) warned prospective new entrant United Internet if it bids in the country’s 5G auction it must expect to build its own networks rather than renting cheaply from other MNOs. In an interview with German newspaper NRZ, the Deutsche Telekom chief said United Internet brand 1&1 would probably only enter the auction if it was able to rent antennas and other infrastructure “at very low prices”, while rivals spent billions on equipment. Hoettges added rules allowing this would result in “unfair competition”, accusing 1&1 of wanting similar regulation to that in place providing low wholesale rates for its fixed network. In the frank interview, Hoettges said it was like “building a house and renting a floor to a competitor at a price that does not cover your expenses,” adding Deutsche Telekom was not Goliath and its rival no David, with 1&1 worth "more than Porsche". The comments come a day after United Internet's chief fuelled speculation the company was considering making a play in Germany's 5G auction. In an interview with Reuters, United Internet CEO Ralph Dommermuth said his company would consider becoming Germany’s fourth mobile operator if authorities guarantee favourable national roaming terms. He added if no commercial agreement could be reached between the operators a “neutral third party” should step in. United Internet provides fixed and broadband services for the German market using Deutsche Telekom’s wholesale network. It also provides MVNO services through brand 1&1 which uses Telefonica Deutschland’s network.
11:30
DT slams 5G suitor for unfair access demands
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Deutsche Telekom CEO Timotheus Hoettges (pictured) warned prospective new entrant United Internet if it bids in the country’s 5G auction it must expect to build its own networks rather than renting cheaply from other MNOs. In an interview with German newspaper NRZ, the Deutsche Telekom chief said United Internet brand 1&1 would probably only enter the auction if it was able to rent antennas and other infrastructure “at very low prices”, while rivals spent billions on equipment. Hoettges added rules allowing this would result in “unfair competition”, accusing 1&1 of wanting similar regulation to that in place providing low wholesale rates for its fixed network. In the frank interview, Hoettges said it was like “building a house and renting a floor to a competitor at a price that does not cover your expenses,” adding Deutsche Telekom was not Goliath and its rival no David, with 1&1 worth "more than Porsche". The comments come a day after United Internet's chief fuelled speculation the company was considering making a play in Germany's 5G auction. In an interview with Reuters, United Internet CEO Ralph Dommermuth said his company would consider becoming Germany’s fourth mobile operator if authorities guarantee favourable national roaming terms. He added if no commercial agreement could be reached between the operators a “neutral third party” should step in. United Internet provides fixed and broadband services for the German market using Deutsche Telekom’s wholesale network. It also provides MVNO services through brand 1&1 which uses Telefonica Deutschland’s network.
11:14
Facebook tipped for India boost following La Liga deal
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Facebook won a major content deal to broadcast Spain’s top national football competition across the Indian subcontinent for free, giving the social media giant a big boost in reach across the region. The deal will see Facebook provide a free-to-air stream to La Liga content, Spain’s top-tier football league, over the next three seasons in India, Afghanistan, Bangladesh, Pakistan, Sri Lanka, Bhutan, Nepal and the Maldives. Sony had previously held live screening rights for La Liga, paying a reported $32 million between 2014 and 2018. Details of Facebook’s deal have not been announced, but the agreement notably gives the company a bigger presence in the subcontinent and, particularly, in India where it has around 270 million users Financial Times (FT) stated. Affordable data Counterpoint Research analyst Neil Shah told FT a huge drop in mobile data prices in India, instigated by the entry of Reliance Jio [1] in 2016, enabled millions of people in the country to watch sport and other live broadcasts on mobile devices. “The biggest aim for Facebook is for people to spend more time on it, to get a bigger share of users’ digital life,” he added. “So whatever they can offer in terms of content to create stickiness, that is useful. Facebook will show all 380 La Liga matches a season, initially without advertising, but that could change in the future. The company attempted to boost its content offering in recent years and successfully won rights to screen Major League Baseball in the US, as well as reaching a deal to show some La Liga and Serie A football matches in the UK. This year, Amazon also won the rights to screen 60 English Premier League games over three years on its platform, as technology groups take the fight to traditional TV and cable players. [1] [https:]
11:14
Facebook tipped for India boost following La Liga deal
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Facebook won a major content deal to broadcast Spain’s top national football competition across the Indian subcontinent for free, giving the social media giant a big boost in reach across the region. The deal will see Facebook provide a free-to-air stream to La Liga content, Spain’s top-tier football league, over the next three seasons in India, Afghanistan, Bangladesh, Pakistan, Sri Lanka, Bhutan, Nepal and the Maldives. Sony had previously held live screening rights for La Liga, paying a reported $32 million between 2014 and 2018. Details of Facebook’s deal have not been announced, but the agreement notably gives the company a bigger presence in the subcontinent and, particularly, in India where it has around 270 million users Financial Times (FT) stated. Affordable data Counterpoint Research analyst Neil Shah told FT a huge drop in mobile data prices in India, instigated by the entry of Reliance Jio [1] in 2016, enabled millions of people in the country to watch sport and other live broadcasts on mobile devices. “The biggest aim for Facebook is for people to spend more time on it, to get a bigger share of users’ digital life,” he added. “So whatever they can offer in terms of content to create stickiness, that is useful. Facebook will show all 380 La Liga matches a season, initially without advertising, but that could change in the future. The company attempted to boost its content offering in recent years and successfully won rights to screen Major League Baseball in the US, as well as reaching a deal to show some La Liga and Serie A football matches in the UK. This year, Amazon also won the rights to screen 60 English Premier League games over three years on its platform, as technology groups take the fight to traditional TV and cable players. [1] [https:]
10:19
NetOne stake attracts 4 suitors
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A total of four non-domestic companies are interested in acquiring between 45 per cent and 50 per cent of NetOne, Zimbabwe’s struggling state-owned operator. The Zimbabwe Independent reported an American funded Lebanese consortium; a South African telecoms giant; a company based in Abu Dhabi; and a group of overseas investors are jostling for a stake in the operator. South Africa-based MTN, which had been linked to a deal for NetOne in the past, is not in the running this time, added the publication. Sources said all four parties are willing to revive NetOne by cleaning up its balance sheet and investing fresh capital. A value for the stake was not disclosed, but sources stated investors will seek to buy the company at a fair price. “The government of Zimbabwe will be looking to price in a control premium,” read one of the bids reportedly under consideration. “We envisage that the deal will be able to put an offer that will be acceptable to all parties, based on a fair valuation of the business.” GSMA Intelligence figures place NetOne as the country’s second largest operator with 5 million connections behind market leader Econet Wireless. It is, however, struggling due to corporate governance and corruption issues. Last week, the company suspended its CEO Lazarus Muchenje for gross misconduct, after he sued Zimbabwe's minister of ICT and cybersecurity Supa Mandiwanzira, six board members and nine NetOne executives for interfering in the running of the company. Zimbabwe's government previously blocked several bids from strategic investors looking to take over or partner with NetOne, including MTN.
10:19
NetOne stake attracts 4 suitors
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A total of four non-domestic companies are interested in acquiring between 45 per cent and 50 per cent of NetOne, Zimbabwe’s struggling state-owned operator. The Zimbabwe Independent reported an American funded Lebanese consortium; a South African telecoms giant; a company based in Abu Dhabi; and a group of overseas investors are jostling for a stake in the operator. South Africa-based MTN, which had been linked to a deal for NetOne in the past, is not in the running this time, added the publication. Sources said all four parties are willing to revive NetOne by cleaning up its balance sheet and investing fresh capital. A value for the stake was not disclosed, but sources stated investors will seek to buy the company at a fair price. “The government of Zimbabwe will be looking to price in a control premium,” read one of the bids reportedly under consideration. “We envisage that the deal will be able to put an offer that will be acceptable to all parties, based on a fair valuation of the business.” GSMA Intelligence figures place NetOne as the country’s second largest operator with 5 million connections behind market leader Econet Wireless. It is, however, struggling due to corporate governance and corruption issues. Last week, the company suspended its CEO Lazarus Muchenje for gross misconduct, after he sued Zimbabwe's minister of ICT and cybersecurity Supa Mandiwanzira, six board members and nine NetOne executives for interfering in the running of the company. Zimbabwe's government previously blocked several bids from strategic investors looking to take over or partner with NetOne, including MTN.
9:26
Orange eyes cloud boost after €350M Basefarm buy
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Orange completed an acquisition of enterprise infrastructure company Basefarm, a move the telecommunications group said made it a European leader in the cloud computing sector. The acquisition of Basefarm was first announced in July [1] and, now the deal is complete, the company will be absorbed into Orange Business Services. In a statement, Orange said Basefarm “enjoyed steady growth since its creation” and recorded revenue of more than €100 million in 2017. It added Basefarm’s proposition “lies at the forefront of innovative services in cloud computing, big data and artificial intelligence, thanks to the widely-recognised expertise of its 550 employees for maximum customer satisfaction.” The cloud computing specialist was founded in 2000 and originally focused on enterprises in the Nordics and the Netherlands. It expanded into Austria and Germany during 2017 through the acquisition of cloud and big data specialist The Unbelievable Machine Company, which has since operated as a subsidiary of Basefarm. Orange said the acquisition would complement its existing enterprise offering and “reinforce its strategic position by bringing a new source of expertise and innovative technologies, particularly in data management, the management of critical applications, big data and multi-cloud services.” [1] [https:]
9:26
Orange eyes cloud boost after €350M Basefarm buy
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Orange completed an acquisition of enterprise infrastructure company Basefarm, a move the telecommunications group said made it a European leader in the cloud computing sector. The acquisition of Basefarm was first announced in July [1] and, now the deal is complete, the company will be absorbed into Orange Business Services. In a statement, Orange said Basefarm “enjoyed steady growth since its creation” and recorded revenue of more than €100 million in 2017. It added Basefarm’s proposition “lies at the forefront of innovative services in cloud computing, big data and artificial intelligence, thanks to the widely-recognised expertise of its 550 employees for maximum customer satisfaction.” The cloud computing specialist was founded in 2000 and originally focused on enterprises in the Nordics and the Netherlands. It expanded into Austria and Germany during 2017 through the acquisition of cloud and big data specialist The Unbelievable Machine Company, which has since operated as a subsidiary of Basefarm. Orange said the acquisition would complement its existing enterprise offering and “reinforce its strategic position by bringing a new source of expertise and innovative technologies, particularly in data management, the management of critical applications, big data and multi-cloud services.” [1] [https:]
8:36
Interview: MessageBird
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Richard Dodds, VP of strategic partnerships, outlines trends in the enterprise communications space - in particular, conversational commerce - during Mobile World Congress Shanghai.
8:36
Interview: MessageBird
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Richard Dodds, VP of strategic partnerships, outlines trends in the enterprise communications space - in particular, conversational commerce - during Mobile World Congress Shanghai.
8:30
Blog: Big 3 feel heat from Singapore MVNOs
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Singapore’s three major mobile players have a lot in common these days: they faced falling or weak earnings in Q2 and experienced a drop in mobile subscriber numbers and ARPU compared with Q2 2017. The three collectively lost nearly 160,000 subs since end-June 2017. While small in terms of percentage (the market has more than 8 million connections), the decline comes after four MVNOs launched services in the city state over the last two years. Data from GSMA Intelligence showed no change in market share in the past four quarters, with Singtel leading on 49 per cent, followed by StarHub (27 per cent) and M1 (23 per cent). But that could change: the latest MVNO entrant, MyRepublic [1], introduced three new data plans in late June, with the cheapest offering 7GB of data for SGD35 ($25.43) a month, which is significantly lower than the three major players. Revenue drop [2]Singtel and StarHub also suffered continued declines in mobile service revenue in the quarter, but recorded strong gains in handset sales (see table right, click to enlarge). Helping their top-lines, the combined increase in device sales (SGD32.5 million) more than offset their declines in mobile service turnover (SGD26.1 million) in Q2. Despite strong equipment sales, Singtel’s total mobile revenue declined 1.3 per cent year-on-year. Tellingly, StarHub’s mobile revenue represented 35.7 per cent of total service turnover in Q2, down from 40.3 per cent in the 2017 quarter. For the full year it forecasts service revenue decreasing by 1 per cent to 3 per cent year-on-year. M1 bucked the downward trend in service revenue with a 3.8 per cent increase, but experienced a near 8 per cent decrease in handset sales. A key factor in the revenue weakness was falling ARPU, particularly post paid, which accounts for about 60 per cent of Singtel and StarHub’s customers and 70 per cent at M1. All three experienced year-on-year declines in post paid ARPU: M1’s prepaid rate remained flat at SGD10.50; StarHub’s prepaid ARPU fell 13.3 per cent to SGD13; and Singtel’s income of SGD18 was down 0.8 per cent. Pending impact Yuen Kuan Moon, CEO of Singtel’s domestic consumer unit, was asked about the impact of price pressure by MVNOs during its Q2 earnings call, but didn’t address the question directly. Instead he pointed to how a reduction in differentiation of new smartphones had resulted in consumers replacing their devices less regularly and driven a rise of SIM-only plans: “Many MVNOs are taking advantage of this shift in behaviour to offer a lot of different options in terms of creating packages to cater to their needs.” Canalys analyst TuanAnh Nguyen agreed smartphone refresh cycles are increasing, resulting in declines in mobile revenue in some markets: “In Singapore, many customers are turning to SIM-only plans after their two-year device plans expire. The increase in mix of SIM-only plans has been a major decelerator on ARPU.” He told Mobile World Live the rise of MVNOs including Circles.Life and MyRepublic pose strong challenges to existing operators, which find it hard to match MVNOs’ price competitiveness: “As voice and devices play a less important role than the data bundle, it creates a shift away from the big three towards MVNOs”. In addition to the new MVNO players, the market will soon see the entry of a fourth mobile operator. In December 2016 Australia-based fixed-line operator TPG beat out MyRepublic to win the fourth mobile licence [3] in a spectrum auction open only to new entrants. As in most markets, the pressure won’t be limited to revenue or mobile tariffs: data usage continues to soar, with average monthly data usage per smartphone jumping from around 4GB in June 2017 to around 5.5GB (nearly a 40 per cent increase). This strains network resources which eventually need to be upgraded. Don’t expect the big three to be able to cut back on network capex to offer relief to their beleaguered bottom-lines anytime soon. Prices will gradually come down, investments will need to rise and margins will likely suffer. The editorial views expressed in this article are solely those of the author and will not necessarily reflect the views of the GSMA, its Members or Associate Members. [1] [https:] [2] [https:] [3] [https:]
8:30
Blog: Big 3 feel heat from Singapore MVNOs
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Singapore’s three major mobile players have a lot in common these days: they faced falling or weak earnings in Q2 and experienced a drop in mobile subscriber numbers and ARPU compared with Q2 2017. The three collectively lost nearly 160,000 subs since end-June 2017. While small in terms of percentage (the market has more than 8 million connections), the decline comes after four MVNOs launched services in the city state over the last two years. Data from GSMA Intelligence showed no change in market share in the past four quarters, with Singtel leading on 49 per cent, followed by StarHub (27 per cent) and M1 (23 per cent). But that could change: the latest MVNO entrant, MyRepublic [1], introduced three new data plans in late June, with the cheapest offering 7GB of data for SGD35 ($25.43) a month, which is significantly lower than the three major players. Revenue drop [2]Singtel and StarHub also suffered continued declines in mobile service revenue in the quarter, but recorded strong gains in handset sales (see table right, click to enlarge). Helping their top-lines, the combined increase in device sales (SGD32.5 million) more than offset their declines in mobile service turnover (SGD26.1 million) in Q2. Despite strong equipment sales, Singtel’s total mobile revenue declined 1.3 per cent year-on-year. Tellingly, StarHub’s mobile revenue represented 35.7 per cent of total service turnover in Q2, down from 40.3 per cent in the 2017 quarter. For the full year it forecasts service revenue decreasing by 1 per cent to 3 per cent year-on-year. M1 bucked the downward trend in service revenue with a 3.8 per cent increase, but experienced a near 8 per cent decrease in handset sales. A key factor in the revenue weakness was falling ARPU, particularly post paid, which accounts for about 60 per cent of Singtel and StarHub’s customers and 70 per cent at M1. All three experienced year-on-year declines in post paid ARPU: M1’s prepaid rate remained flat at SGD10.50; StarHub’s prepaid ARPU fell 13.3 per cent to SGD13; and Singtel’s income of SGD18 was down 0.8 per cent. Pending impact Yuen Kuan Moon, CEO of Singtel’s domestic consumer unit, was asked about the impact of price pressure by MVNOs during its Q2 earnings call, but didn’t address the question directly. Instead he pointed to how a reduction in differentiation of new smartphones had resulted in consumers replacing their devices less regularly and driven a rise of SIM-only plans: “Many MVNOs are taking advantage of this shift in behaviour to offer a lot of different options in terms of creating packages to cater to their needs.” Canalys analyst TuanAnh Nguyen agreed smartphone refresh cycles are increasing, resulting in declines in mobile revenue in some markets: “In Singapore, many customers are turning to SIM-only plans after their two-year device plans expire. The increase in mix of SIM-only plans has been a major decelerator on ARPU.” He told Mobile World Live the rise of MVNOs including Circles.Life and MyRepublic pose strong challenges to existing operators, which find it hard to match MVNOs’ price competitiveness: “As voice and devices play a less important role than the data bundle, it creates a shift away from the big three towards MVNOs”. In addition to the new MVNO players, the market will soon see the entry of a fourth mobile operator. In December 2016 Australia-based fixed-line operator TPG beat out MyRepublic to win the fourth mobile licence [3] in a spectrum auction open only to new entrants. As in most markets, the pressure won’t be limited to revenue or mobile tariffs: data usage continues to soar, with average monthly data usage per smartphone jumping from around 4GB in June 2017 to around 5.5GB (nearly a 40 per cent increase). This strains network resources which eventually need to be upgraded. Don’t expect the big three to be able to cut back on network capex to offer relief to their beleaguered bottom-lines anytime soon. Prices will gradually come down, investments will need to rise and margins will likely suffer. The editorial views expressed in this article are solely those of the author and will not necessarily reflect the views of the GSMA, its Members or Associate Members. [1] [https:] [2] [https:] [3] [https:]
7:40
Altice USA ramps 3.5GHz testing ahead of wireless play
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Cable operator Altice USA requested permission from the Federal Communications Commission (FCC) to conduct mobile testing in the 3.5GHz band as it gears up to launch wireless service in 2019. Starting 1 September, Altice said it wants to run indoor and outdoor trials using prototype small cells and user devices from Ericsson, Nokia, Airspan Networks, Arris subsidiary Ruckus Wireless and Berkeley Varitronics Systems. The cells will operate between 3650MHz and 3700MHz, with access to the shared band provided by an FCC-approved spectrum access system vendor. All told, the operator filed for permission to trial 88 small cells at a test location in Deer Park, New York. It expects to wrap up experimental work by 28 February 2019. Altice said the goal of the project is to “evaluate propagation characteristics for different type[s] of setups, data throughput performance, inter-cell mobility and advanced spectrum access system functionality”. It added the data gleaned will “help us better understand the full potential” of the technology used in the study. The company’s decision to explore 3.5GHz, known in the US as the Citizens Broadband Radio Service (CBRS), comes as it prepares to launch a mobile play via an MVNO agreement with Sprint [1]. Tapping the CBRS band would give Altice access to spectrum it can use to augment the wireless service provided through the agreement. Other cable operators including Comcast [2] and Charter Communications [3] have similarly deployed wireless services under separate MVNO agreements with Verizon. In July, Charter Communications revealed it is trialling LTE small cells at 3.5GHz [4] with the aim of enhancing its mobile infrastructure. [1] [https:] [2] [https:] [3] [https:] [4] [https:]
7:40
Altice USA ramps 3.5GHz testing ahead of wireless play
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Cable operator Altice USA requested permission from the Federal Communications Commission (FCC) to conduct mobile testing in the 3.5GHz band as it gears up to launch wireless service in 2019. Starting 1 September, Altice said it wants to run indoor and outdoor trials using prototype small cells and user devices from Ericsson, Nokia, Airspan Networks, Arris subsidiary Ruckus Wireless and Berkeley Varitronics Systems. The cells will operate between 3650MHz and 3700MHz, with access to the shared band provided by an FCC-approved spectrum access system vendor. All told, the operator filed for permission to trial 88 small cells at a test location in Deer Park, New York. It expects to wrap up experimental work by 28 February 2019. Altice said the goal of the project is to “evaluate propagation characteristics for different type[s] of setups, data throughput performance, inter-cell mobility and advanced spectrum access system functionality”. It added the data gleaned will “help us better understand the full potential” of the technology used in the study. The company’s decision to explore 3.5GHz, known in the US as the Citizens Broadband Radio Service (CBRS), comes as it prepares to launch a mobile play via an MVNO agreement with Sprint [1]. Tapping the CBRS band would give Altice access to spectrum it can use to augment the wireless service provided through the agreement. Other cable operators including Comcast [2] and Charter Communications [3] have similarly deployed wireless services under separate MVNO agreements with Verizon. In July, Charter Communications revealed it is trialling LTE small cells at 3.5GHz [4] with the aim of enhancing its mobile infrastructure. [1] [https:] [2] [https:] [3] [https:] [4] [https:]
7:31
Google apps track location despite controls – report
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A number of Google apps and services automatically record a snapshot of user location data, even when users have switched off a setting which plots location history, Associated Press (AP) found. While users can toggle off a Location History feature on their Google account, AP concluded this only blocks locations from being added to Google’s timeline map of your movements. Other location data is still recorded by Google services, unless disabled under the Web and App Activity setting. AP said the finding was verified by researchers at Princeton University and noted users can be tracked via apps including Google Maps, the company’s weather widget and web searches. Both iOS and Android devices were subject to the issue, the report added. In a statement to AP, Google said it uses different location tracking tools to improve user experience, but maintained it provides “robust controls so people can turn them on or off and delete their histories at any time”. The news comes as tech giants and operators alike face questions about user data privacy. Facebook [1], Apple and Google parent Alphabet were among those quizzed by politicians over their data collection and protection practices. In June, all four major US operators pledged to stop sharing data with location aggregators [2] after it was discovered a third party improperly gained access to a wireless subscriber’s location information. [1] [https:] [2] [https:]
7:31
Google apps track location despite controls – report
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A number of Google apps and services automatically record a snapshot of user location data, even when users have switched off a setting which plots location history, Associated Press (AP) found. While users can toggle off a Location History feature on their Google account, AP concluded this only blocks locations from being added to Google’s timeline map of your movements. Other location data is still recorded by Google services, unless disabled under the Web and App Activity setting. AP said the finding was verified by researchers at Princeton University and noted users can be tracked via apps including Google Maps, the company’s weather widget and web searches. Both iOS and Android devices were subject to the issue, the report added. In a statement to AP, Google said it uses different location tracking tools to improve user experience, but maintained it provides “robust controls so people can turn them on or off and delete their histories at any time”. The news comes as tech giants and operators alike face questions about user data privacy. Facebook [1], Apple and Google parent Alphabet were among those quizzed by politicians over their data collection and protection practices. In June, all four major US operators pledged to stop sharing data with location aggregators [2] after it was discovered a third party improperly gained access to a wireless subscriber’s location information. [1] [https:] [2] [https:]
7:04
Optus invests $31M to boost Tasmania coverage
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Optus, the second-largest mobile operator in Australia, announced it deployed 37 mobile sites across Tasmania in the year to end-July, increasing the number of sites in the state by 25 per cent to 151. The operator said it invested AUD42.2 million ($30.7 million) in the network to improve call quality and download speeds across Hobart, Launceston, Devonport and Tasmania’s east coast. Optus CEO Allen Lew said: “Tasmania is a priority state for Optus. In July last year we committed to building 35 new sites by July 2019. I’m proud to say we’ve delivered on that target as well as an extra two locations in just 12 months.” The operator plans to invest an additional AUD4.5 million to build another eight sites by March 2019 in the state, an island south of Melbourne. “With its breathtaking scenery and rugged landscape, Tasmania can be a challenging location to provide mobile coverage," Lew noted. Meanwhile, the Australian Department of Health awarded the operator a deal worth AUD6 million to consolidate its telecoms products and services under a single service agreement. The three-year agreement covers WAN and a range of other services, including mobile and voice, to the department’s 5,000 users.
7:04
Optus invests $31M to boost Tasmania coverage
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Optus, the second-largest mobile operator in Australia, announced it deployed 37 mobile sites across Tasmania in the year to end-July, increasing the number of sites in the state by 25 per cent to 151. The operator said it invested AUD42.2 million ($30.7 million) in the network to improve call quality and download speeds across Hobart, Launceston, Devonport and Tasmania’s east coast. Optus CEO Allen Lew said: “Tasmania is a priority state for Optus. In July last year we committed to building 35 new sites by July 2019. I’m proud to say we’ve delivered on that target as well as an extra two locations in just 12 months.” The operator plans to invest an additional AUD4.5 million to build another eight sites by March 2019 in the state, an island south of Melbourne. “With its breathtaking scenery and rugged landscape, Tasmania can be a challenging location to provide mobile coverage," Lew noted. Meanwhile, the Australian Department of Health awarded the operator a deal worth AUD6 million to consolidate its telecoms products and services under a single service agreement. The three-year agreement covers WAN and a range of other services, including mobile and voice, to the department’s 5,000 users.
6:56
Huawei unlikely to face Australia 5G ban
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The Australian government is not expected to ban Huawei in its bid to deploy 5G networks in the country, but the vendor will likely face new restrictions on the technologies it provides to mobile operators, The Australian reported. Despite some politicians and security agencies pushing the government to block Huawei from being involved in the 5G rollout due to national security concerns, a source told the newspaper there won’t be a ban. The government, however, is reportedly working on legislation which will impose new security and notification requirements on operators. If Huawei is deemed a “high-risk provider”, the new legislation could limit it to supplying only core network equipment and not radio access network (RAN) gear, the newspaper said. Previously it supplied such equipment to Optus and Vodafone Australia for their LTE networks. The Australian government raised concerns core and RAN networks will become more closely integrated in 5G networks through software. Tom Uren, a cybersecurity expert at the Australian Strategic Policy Institute, suggested Huawei will likely face restrictions preventing it from taking part in critical aspects of 5G buildouts, News.com.au reported. “They [Huawei] were barred from the core of the NBN network, for example, so similar high-priority parts of the 5G network might be off-limits,” he told News.com.au. Oversight Reuters reported in early July Australia was set to ban Huawei [1] from supplying equipment for 5G networks due to concerns over sensitive data sparked by Huawei’s alleged links to the Chinese government. In mid-June Huawei hit back at criticism [2] regarding the security of its equipment, promising Australian officials complete oversight over equipment including base stations, towers and radio transmission gear. Operators previously called for talks to discuss concerns the government was preparing to block Huawei [3] from participating in 5G rollouts. In early June Huawei lost a contract to build a cable linking Sydney to the Solomon Islands, but in July reportedly won a contract to build and maintain radio systems to deliver voice and data services on the rail network in the city of Perth. Reports stated the deal was worth AUD136 million ($98.8 million): it will start later this month and is scheduled for completion in 2021. [1] [https:] [2] [https:] [3] [https:]
6:56
Huawei unlikely to face Australia 5G ban
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The Australian government is not expected to ban Huawei in its bid to deploy 5G networks in the country, but the vendor will likely face new restrictions on the technologies it provides to mobile operators, The Australian reported. Despite some politicians and security agencies pushing the government to block Huawei from being involved in the 5G rollout due to national security concerns, a source told the newspaper there won’t be a ban. The government, however, is reportedly working on legislation which will impose new security and notification requirements on operators. If Huawei is deemed a “high-risk provider”, the new legislation could limit it to supplying only core network equipment and not radio access network (RAN) gear, the newspaper said. Previously it supplied such equipment to Optus and Vodafone Australia for their LTE networks. The Australian government raised concerns core and RAN networks will become more closely integrated in 5G networks through software. Tom Uren, a cybersecurity expert at the Australian Strategic Policy Institute, suggested Huawei will likely face restrictions preventing it from taking part in critical aspects of 5G buildouts, News.com.au reported. “They [Huawei] were barred from the core of the NBN network, for example, so similar high-priority parts of the 5G network might be off-limits,” he told News.com.au. Oversight Reuters reported in early July Australia was set to ban Huawei [1] from supplying equipment for 5G networks due to concerns over sensitive data sparked by Huawei’s alleged links to the Chinese government. In mid-June Huawei hit back at criticism [2] regarding the security of its equipment, promising Australian officials complete oversight over equipment including base stations, towers and radio transmission gear. Operators previously called for talks to discuss concerns the government was preparing to block Huawei [3] from participating in 5G rollouts. In early June Huawei lost a contract to build a cable linking Sydney to the Solomon Islands, but in July reportedly won a contract to build and maintain radio systems to deliver voice and data services on the rail network in the city of Perth. Reports stated the deal was worth AUD136 million ($98.8 million): it will start later this month and is scheduled for completion in 2021. [1] [https:] [2] [https:] [3] [https:]
August 13, 2018
17:27
US automated calls hit nearly 4B during July
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US mobile subscribers received nearly 4 billion unsolicited automated calls in July, as efforts by government and industry to tackle the problem fell short, data from software company YouMail showed. The company, which offers automated call blocking services, revealed the total number of such calls hit 3.99 billion last month, an increase of 54 per cent on July 2017. AT&T customers were worst hit, receiving an average of 17.6 calls in July (see chart, below, click to enlarge), followed by T-Mobile US (16.9), Verizon (15.6) and Sprint (14.4). [1]The rise comes despite efforts by operators and the US Federal Communications Commission (FCC) to combat spam calls. In 2015 the FCC passed rules meant to give operators and consumers more power to block unwanted calls, which were recently struck down by a federal appeals court. Those were followed by the FCC’s formation of the Robocall Strike Force in 2016, a coalition of operator and industry partners headed by AT&T CEO Randall Stephenson tasked with developing recommendations to detect, prevent and filter such calls. Additional rules were passed in 2017 allowing operators to block calls originating from fraudulent numbers, known as spoofed calls. At Mobile World Congress Americas 2017, FCC chairman Ajit Pai stated the issue remained his “number one consumer protection priority [2].” But as Motherboard pointed out in May, the FCC’s focus on preventing calls from spammers and scammers leaves the door wide open for automated calls from debt collectors to continue. In July, YouMail said just four of the top 20 automated callers in the nation were spammers or scammers. Indeed, the top five during the month were payment or debt collectors, with the lead originating number responsible for nearly 41 million calls alone. [1] [https:] [2] [https:]
17:27
US automated calls hit nearly 4B during July
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US mobile subscribers received nearly 4 billion unsolicited automated calls in July, as efforts by government and industry to tackle the problem fell short, data from software company YouMail showed. The company, which offers automated call blocking services, revealed the total number of such calls hit 3.99 billion last month, an increase of 54 per cent on July 2017. AT&T customers were worst hit, receiving an average of 17.6 calls in July (see chart, below, click to enlarge), followed by T-Mobile US (16.9), Verizon (15.6) and Sprint (14.4). [1]The rise comes despite efforts by operators and the US Federal Communications Commission (FCC) to combat spam calls. In 2015 the FCC passed rules meant to give operators and consumers more power to block unwanted calls, which were recently struck down by a federal appeals court. Those were followed by the FCC’s formation of the Robocall Strike Force in 2016, a coalition of operator and industry partners headed by AT&T CEO Randall Stephenson tasked with developing recommendations to detect, prevent and filter such calls. Additional rules were passed in 2017 allowing operators to block calls originating from fraudulent numbers, known as spoofed calls. At Mobile World Congress Americas 2017, FCC chairman Ajit Pai stated the issue remained his “number one consumer protection priority [2].” But as Motherboard pointed out in May, the FCC’s focus on preventing calls from spammers and scammers leaves the door wide open for automated calls from debt collectors to continue. In July, YouMail said just four of the top 20 automated callers in the nation were spammers or scammers. Indeed, the top five during the month were payment or debt collectors, with the lead originating number responsible for nearly 41 million calls alone. [1] [https:] [2] [https:]
15:48
Payment banks bid to scupper wallet policy – report
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Representatives from India’s payment banking sector met with regulators to voice opposition to forthcoming mobile wallet interoperability guidelines, The Economic Times (ET) reported. Citing unnamed sources, the publication said executives from institutions providing payment bank services met with the Reserve Bank of India (RBI) to discuss upcoming rule changes, which allow seamless cash transfers between different brands of mobile wallet. After the introduction of the interoperability, the representatives argued, mobile wallet providers would be able to supply similar services to payment banks without being subject to the same regulatory scrutiny. Although the mobile wallets set to be included adhere to international Know Your Customer rules, the payment banks argue other regulations imposed on them are less strict. Payment banks supply accounts aimed primarily at those making small deposits and transfers. They were introduced as part of a government initiative to increase financial inclusion and reduce the usage of physical cash. The institutions are licensed by the RBI and have a number of restrictions placed on them in terms of the types of services they can provide, and must also follow strict operational rules. Failure to meet requirements leads to a service suspension and fine – as Bharti Airtel found out earlier this year [1]. A number of companies provide payment bank services, mostly in the mobile sector. Some also have mobile wallet services and actively support interoperability, ET noted. [1] [https:]
14:46
TCL quietly expands Alcatel smartphone portfolio
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TCL Communication marched on with the rollout of its revamped budget smartphone line, launching a previously unannounced Alcatel model for T-Mobile US' prepaid brand MetroPCS. The Alcatel 7 is the latest in a roster of newly released devices this year, which also includes phones in its 1, 3 and 5 series [1]. Like its predecessors, the Alcatel 7 aims to put premium features in an affordable package: it sports a 6-inch screen with an 18:9 ratio; dual 12MP and 2MP rear cameras; an 8MP front camera; face unlock technology; and a fingerprint sensor. Interior specifications including a MediaTek Helio P23 (MT6763T) octa-core processor, 2GB of RAM and 32GB of storage are less impressive, but the device does include the same 4000mAh battery capacity found in Samsung’s new Note 9 flagship [2]. Also of note is the phone’s compatibility with the 600MHz band, meaning users will benefit from T-Mobile’s low-band network build out. TCL Communication said the device will retail for $179.99, but be available for $130 to users switching to Metro PCS. [1] [https:] [2] [https:]
12:05
Safaricom chief refuses to enter price war with Airtel
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Safaricom CEO Bob Collymore (pictured) told media in Kenya his company had no intention of reducing its tariffs after rival Airtel Kenya revealed it was set to cut its cross-network call charges in half. In his first press conference since returning from a lengthy leave of absence, the executive was quoted by national newspaper The Standard as saying he could “see a price war coming”. He added by not reducing its rates it may lose market share, but described this as acceptable because the company had to “maintain a sustainable business”. Airtel's announcement it would slash the cost of calls made to other networks came days after a Kenyan parliamentary committee began investigating the level of competition in the country's communications sector. Last week, Collymore appeared before the panel [1] to defended Safaricom against claims its dominant market position harmed competition in the country. His claims were later backed by the country’s communications authority. Biometrics During the Safaricom press conference, Collymore also revealed it was considering the introduction of biometric identity technology to combat fraud on its network. Business Daily reported the operator was experimenting with technical solutions including fingerprint technology to secure key services. As part of its ongoing effort to beef-up security Safaricom is also in the process of putting a new framework in place to increase the level of data collected on customers. [1] [https:]
10:30
UK security chief warns of 5G terrorism threat
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Emerging technologies including 5G networks could be vulnerable to attacks from terrorists, hostile states and criminals, warned Jeremy Fleming, director of the UK’s Government Communications Headquarters (GCHQ). Writing in the Sunday Times, Fleming said new technologies including artificial intelligence, 5G and IoT will bring huge benefits to society, transforming areas including healthcare, creating smart cities and improving productivity. However, he said these technologies "also bring risks that, if unchecked, could make us more vulnerable" to attack from terror groups and overseas governments. Forging a balance between benefitting from new technologies while protecting national security "requires new partnerships and different ways of working at a global level”, he stated. Highlighting the increasing globalisation of technology, Fleming also said the UK needed to “learn to deal with it”, noting China’s lead on 5G could potentially pose a problem. “Critical technologies – for example, in 5G – are increasingly likely to come from China…we must ensure that processes represent industry best practice so as to avoid real risk to the UK’s critical national infrastructure (CNI). We need to consider early, robust and fair solutions to the global challenge" of balancing "investment, trade and security”. Fleming’s comments come as UK operators continue to strategise for 5G, expected to launch in the country over the next two years. Market leader EE revealed recently it will begin testing its 5G network in October, with plans to launch commercially in 2019. Rival 3 UK plans to start its own trials [1] in 2019. Fleming added GCHQ will continue to build on its understanding of technology to inform government policy and protect the UK, while working with businesses, technology companies, academia and privacy groups to protect the public from real world and online harm. “We need honest, mature conversations about the impact that new technologies could have on society. This needs to happen while systems are being developed, not afterwards,” he said. [1] [https:]
10:17
Vodacom unit tips tie-ups as key to unlocking verticals
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INTERVIEW: Mezzanine CEO Jacques de Vos (pictured) highlighted the importance of combining internal upskilling with specialist partnerships to drive operator moves into vertical sectors including healthcare, education and agriculture. Speaking to Mobile World Live, de Vos said Mezzanine, a Vodacom subsidiary which focuses on developing and hosting services for vertical markets in Africa, had actively looked to source partners with a deep industry knowledge to ensure new services were meeting a genuine need. He added there was an appetite from operators on the continent to move away from sole provision of data and voice into wider sectors which enable social change, from financial inclusion technologies to healthcare innovations. “Why is Vodacom interested in agriculture, healthcare or education? We believe we can enable change,” he said, adding it aimed to aid “social change in the continent and support governments in growing economies. And, we see it as a commercial opportunity for us as a company.” De Vos emphasised: “We don’t have authority in Vodacom in delivering [the likes of] health services so it’s important for us to partner with in-country service providers and knowledge partners [to] make sure whatever we offer and whatever services we enable are relevant and add value.” “It’s a combination of investing in new skills in our business, new systems, new processes, new business models and important partnerships.” To view the full interview, which includes discussions of the privacy implications of data collection and the relative progress of Africa’s different regions to adopting digital technologies, click here [1]. [1] [https:]
7:12
Fortnite bypass hits Google in the purse
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Google could miss out on more than $50 million in platform fees this year due to Epic Games’ decision to circumvent Google Play [1] for the Android launch of its popular Fortnite game, Sensor Tower revealed. The analyst company noted Fortnite raked in more than $180 million since its launch on iOS in March, an estimated $54 million of which went to Apple to cover its 30 per cent share of App Store spending. Similar earnings are expected from the Android launch given the game’s increasingly popularity. Sensor Tower added the move to bypass the Play Store will also open the app to users in countries which don’t have access to the Google Play Store (like China), potentially pushing earnings even higher. Epic Games chief Tim Sweeney acknowledged avoiding Google’s platform fees was a motivating factor in its decision to release the Android app via a download on its website. But he added it wasn’t a slight against Google, noting the company would have done the same for the iOS release if it had been possible. At a recent launch event, Samsung announced the immediate availability of a Fortnite preview for users of select Samsung devices, including its Galaxy S9 and new Note 9 flagships [2]. A general release to all Android users is expected to follow later this month. [1] [https:] [2] [https:]
6:22
Samsung mulls China device site shutdown
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Smartphone giant Samsung is considering shutting down operations at one of two mobile phone factories in China due to weak smartphone sales and increasing labour costs in the country, The Electronic Times (ET) reported. Sources told the newspaper the South Korean vendor plans to halt operations at Tianjin Samsung Telecommunication, located southeast of Beijing, as early as 2019 to focus its capabilities on emerging markets including India. The company reportedly already informed key suppliers of the plan. Samsung also has a handset plant in Huizhou, southern China. China’s smartphone market declined in Q2 with shipments falling 5.9 per cent [1] year-on-year, data from IDC showed. Samsung is not one of the top five handset vendors in the mainland. A Samsung representative told the ET: "The production volume of the Tianjin [factory] has been steadily decreasing and it is expected to decrease in the future.” Samsung last month started operations at an upgraded manufacturing facility [2] in northern India, a move aimed at doubling handset production and securing a top position in the world’s second-largest smartphone market. The company will also use the facility to meet global smartphone demand. [1] [https:] [2] [https:]
6:05
Smart taps Ericsson for trial 5G network
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Philippines mobile operator Smart Communications announced it signed an agreement with Ericsson to deploy the country’s first 5G pilot network during the first half of 2019. The 5G trial system, using Ericson’s 5G RAN; core; and transport systems, will be first deployed in Luzon, the country’s most populous island where about a third of the population work and live, Smart Communications said. Manuel Pangilinan, chairman and CEO of Smart Communications' parent PLDT (pictured, second left) said: “As 5G opens up more opportunities for new services and solutions to offer to our customers, we are investing in future-proofing our network and making sure that our network is ready for 5G.” Martin Wiktorin, head of Ericsson Singapore, Brunei, Philippines and Pacific Islands (pictured, far right), said it believes first movers in 5G can reshape the market; grow share; and increase revenue streams. He added the combination of improved capacity and ultra-low latency in 5G will help realise new use cases and business models, and capture new revenue opportunities by addressing industry digitalisation. To deliver 5G services Smart Communications is upgrading its network’s core and transport elements, which includes converting the backhaul connecting cell sites around the country to fibre and deploying 5G-ready equipment in its ongoing LTE rollout, said Mario Tamayo, SVP for network planning and engineering. Under its current programme, Smart Communications will install 5G-compatible radio equipment across its network, which now has more than 2,000 5G-ready sites. The operator began testing 5G in December 2016, when it worked with Nokia [1] to achieve speeds of 2.5Gb/s using 100MHz of spectrum. In June, days after launching its 5G TechnoLab facility (which covers R&D, standardisation and testing of 5G technologies and services) Smart Communications announced it achieved rates data of more than 6.5Gb/s in a trial with Huawei [2]. [1] [https:] [2] [https:]
August 10, 2018
16:31
Xiaomi India targets innovation with Poco sub-brand
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Xiaomi revealed plans to follow in the footsteps of China-based rival Huawei by launching a smartphone sub-brand, though unlike its competitor Xiaomi appears to be targeting only the Indian market. In a tweet, executive Jai Mani said the vendor established the Poco brand to buck the trend of slowing innovation and rising prices in the smartphone sector. The sub-brand will focus on producing devices with real-world functionality, making use of Xiaomi’s broader economies of scale and manufacturing capabilities. “Poco is all about making a powerful smartphone with technologies that truly matter,” Mani stated. Thanks for all the love! Many friends asked me questions about this new project I mentioned yesterday, here's my answer: @IndiaPOCO [1] @GlobalPOCOPHONE [2] pic.twitter.com/MK9MZUz0Zy [3] — Jai Mani (@jaimani) 10 August 2018 [4] Several reports indicate the brand’s first device, Pocophone F1, will live up to the goal, sporting Qualcomm’s high-end Snapdragon 845 chipset and a 4000mAh battery: specifications which put the device on par with Samsung’s freshly unveiled Galaxy Note 9 [5], on paper at least. Android Central stated Pocophone F1 will also feature a liquid cooling system; 20MP front camera with facial recognition; and will buck recent trends by also including a 3.5mm headphone jack and a notch. The website tipped a model with 6GB of RAM and 64GB storage to sell for around $480, with a version sporting 128GB of storage priced around $540. Cementing position Xiaomi’s move comes after data from Canalys showed the vendor remained neck-and-neck with Samsung [6] in the Indian smartphone market, tying for first place with shipments of 9.9 million units during the second quarter. Xiaomi trumped its South Korean rival [7] in India during Q4 2017. The Chinese vendor this week announced Holitech Technology, a key component supplier, is preparing to set up shop in India. The company will produce a range of smartphone parts [8] at a facility in Andhra Pradesh in a move tipped to increase Xiaomi’s input into the local supply chain while helping it meet government goals on domestic production. [1] [https:] [2] [https:] [3] [https:] [4] [https:] [5] [https:] [6] [https:] [7] [https:] [8] [https:]
12:11
CK Hutchison makes offer to EC in Wind Tre case
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CK Hutchison offered concessions to the European Commission in an apparent bid to push through its acquisition of Veon’s share of Italian joint venture Wind Tre. In a filing on the EC’s competition website, the authority confirmed it had received commitments on the case, but revealed no further details. The EC is working to an end-August deadline to make a decision on whether to green light the acquisition, having opened an investigation into the proposed deal in July. Should the €2.45 billion deal [1] go through, CK Hutchison would be the sole owner of Wind Tre, a move the company said would give it a larger presence in an “attractive market”. The JV was formed by a merger of Wind, owned by Veon (formerly Vimpelcom), and CK Hutchison’s 3 unit in Italy. To get the original deal through the European Commission [2] in September 2016, the two agreed to sell assets to French company Iliad to provide the platform for its launch in Italy. Iliad launched its service in May 2018 alongside an aggressively-priced opening deal [3], which has led to rivals slashing prices and boosting data allocations [4]. [1] [https:] [2] [https:] [3] [https:] [4] [https:]
11:36
Mobile Mix: Samsung Note 9 New York launch
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Mobile Mix this week heads stateside as Diana covers Samsung's much-anticipated Galaxy Note 9 launch from New York - which included a surprise announcement of a new rival to Google Home, Amazon Echo and Apple's HomePod. Elsewhere Steve and Michael chew over this week's hot news, including Google's latest mobile OS Android Pie. Subscribe to our daily newsletter [1] [1] [https:]
11:08
Banks, regulators cast fresh doubt on 9mobile sale
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The delayed sale of Nigeria’s 9mobile hit another two hurdles as regulators opened another round of due diligence on the company set to buy the operator, and existing stakeholders sought to slam the brakes on the sale. In separate media reports in the country, new issues emerged which again call into question the sale of the troubled operator. Reports in Premium Times revealed the Nigerian Communications Commission (NCC) was conducting a second round of due diligence on Teleology Holdings – the company set to buy Etisalat’s former unit in the country, now rebranded 9mobile – before finally clearing the deal. The NCC is also reportedly still waiting for the would-be owner to pay the balance after winning the race to acquire the company [1] in January. It paid a $50 million deposit [2] to secure the transaction in March, though the original deadline to settle the remainder elapsed last month. Meanwhile, The Nation reported a consortium of six stakeholder banks with investments in 9mobile as it stands today demanded a block on the sale until they are able to recover dues to a value of $43 million. The increasingly messy sale of the debt-laden operator has been in the pipeline since major shareholders Etisalat and UAE-based investment fund Mubadala pulled out of the country in June 2017 [3] after failing to renegotiate the terms of a $1.2 billion loan. Etisalat Nigeria was then placed in the hands of trustees while the banks owed money attempted to negotiate a sale of the business. [1] [https:] [2] [https:] [3] [https:]
10:59
Italian operators fined for aggressive conduct
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Italy’s competition regulator fined Wind Tre, Telecom Italia and Vodafone Italia a combined sum of €3.2 million for violating the country’s consumer code when demanding payment from customers. In a statement, regulator Autorita Garante della Concorrenza e del Mercato (AGCM) said the three operators had been found guilty of “aggressive conduct” when sending payment reminders to customers deemed to be in arrears. Authorities said all three operators threatened to add the names of late-payers to a national register of “intentional delinquent” consumers in payment reminder letters, when the customers in question did not meet the criteria for the sanction. Among those targeted were subscribers which AGCM said could have contested the validity of the sums being demanded. The register of non-paying customers, it added, was not yet up-and-running, but inclusion on the document would make getting credit from another operator unlikely. In a translated statement, AGCM said the operators: “Induced the recipients to believe that regardless of the validity of their debt position it would be preferable to quickly pay the amount requested in order to avoid entry in the database, with the possible consequence of not being able to conclude contracts with any telephone operator.”
10:53
Apple drives car speculation with Tesla exec hire
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Apple sparked speculation it is preparing a major push around connected vehicles after re-hiring a former hardware VP who quit the company for a role with electric car maker Tesla. A company representative confirmed Doug Field had been recruited by the iPhone maker a month after he left Tesla, Financial Times (FT) reported. Field most recently oversaw production of Tesla’s Model 3 and joins Apple’s Project Titan autonomous car division, the newspaper added. While Apple did not specifically state Field was joining Project Titan, several media outlets noted such a move would reunite the executive with Bob Mansfield, who oversees the division. Blog Daring Fireball said the pair had previously collaborated on Mac and iPhone products. In addition to bringing the executives back together, Field’s appointment to Project Titan suggests Apple remains committed to the autonomous vehicle sector, rebutting recent speculation the company had reduced its work on the project, 9to5Mac noted. FT stated Apple and Tesla have traded talent for a number of years as they seek to gain an advantage in the increasingly lucrative connected vehicle sector. Chris Penrose, president of AT&T’s IoT division, recently told Mobile World Live vehicle telematics is at the forefront of the operator’s IoT business [1], with 1.5 million vehicles being connected to its network each quarter. Earlier this year, analyst company Research and Markets forecast the value of the connected car market would hit $219.2 billion in 2025, compared with $72.9 billion in 2017. [1] [https:]
10:11
Ericsson boosts US investment to speed 5G launches
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Ericsson revealed plans to produce 5G radios and open a new R&D facility in the US later this year as part of a bid to meet operator demand for next generation products as launches near. CEO Borje Ekholm said in a statement the US is the company’s largest market, accounting for a quarter of its business over the last seven years. In Q2 the company grew North America sales by 11 per cent over the comparable 2017 quarter. He added the increased investment will help bring Ericsson closer to service providers in the country and “meet their accelerated 5G deployment plans”. The US is aiming to be one of the world leaders in 5G deployment and competition in the network equipment market is hotting up. South Korean vendor Samsung has already established itself as a strong new rival [1] in the region compared with more established players including Ericsson and Nokia Networks. Details Ericsson plans to begin manufacturing products in the US in Q4, starting with 5G radios. A dedicated research team will be established to develop additional products specifically for the market, conducting production engineering, testing, integration and supply preparations on early prototypes. The vendor also said it will open a new software development centre in the US with more than 200 engineers focused on baseband technology, which will supplement an existing ASIC design centre opened in Texas [2] in late 2017. Starting in 2019, the pair of facilities will begin rolling out new 5G products and software for Ericsson's global portfolio. It will also increase its R&D investments in artificial intelligence (AI) and automation technology. Ericsson said by the end of 2018, it will build a base of 100 specialists in North America who will explore new business opportunities and aim to boost automation using AI. The investment comes as US operators including Verizon and AT&T gear up for their initial 5G launches (offering fixed wireless access services) later this year. Rivals including T-Mobile US and Sprint are expected to launch 5G services in 2019. [1] [https:] [2] [https:]
8:02
Qualcomm settles Taiwan competition battle
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Qualcomm announced it settled a case with Taiwan’s antitrust regulator for TWD2.73 billion ($88.8 million) and agreed to invest in a number of commercial initiatives covering the mobile and semiconductor sectors over the next five years. The deal with the Taiwan Fair Trade Commission (TFTC) replaces a fine of TWD23.4 billion [1] imposed in October 2017 when the agency determined Qualcomm’s business methods breached local competition laws. In a statement, Qualcomm noted it had already paid the TWD2.73 billion penalty, which it valued at "approximately $93 million". Alex Rogers, EVP and president of Qualcomm Technology Licensing, said the resolution with TFTC puts litigation the company initiated following the original decision to bed: "With the uncertainty removed, we can now focus on expanding our relationships that support the Taiwanese wireless industry and rapid adoption of 5G technology.” Qualcomm said it agreed to certain process-related commitments confirming principles of mutual good faith and fairness in the negotiation of agreements with handset licensees to its standard essential cellular patents. The resolution does not require component-level licensing or set specific financial terms, which means the company can continue to set terms based on the price of an entire device using its intellectual property. Under the agreement, Qualcomm is required to provide reports to officials every six months for five years to show it is negotiating in good faith with handset makers in patent-licensing deals, Reuters reported. It also needs to offer licences to rival chipmakers on fair terms before seeking legal action to enforce its patent rights. Qualcomm faced similar actions in China [2] and South Korea [3] and is embroiled in an ongoing, high profile, patent spat with Apple [4]. [1] [https:] [2] [https:] [3] [https:] [4] [https:]
7:21
PLDT profit falls, revenue recovery continues
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Philippines-based operator PLDT reported a sharp drop in profit for the first half of 2018, but its recovery continued as it added mobile subscribers and posted revenue gains across all business units. The operator generated net income of PHP11.8 billion ($222 million), down 29 per cent on H1 2017 when it recorded a higher gain from the sale of assets. The recent figure was also impacted by higher costs, including a PHP3.6 billion hit relating to accelerated depreciation covering a shortened estimated useful life of some network assets resulting from its network transformation programme. Total group revenue rose 5 per cent year-on-year to PHP78.3 billion, with service revenue up 2 per cent to PHP72.5 billion. The company said growth in Q2 marked the fifth consecutive quarter of sequential improvements in service revenue, during which the figure increased by PHP1.8 billion. This follows a period of five consecutive quarters starting 2Q 2016 during which service revenue declined by PHP2 billion. Manuel Pangilinan, chairman and CEO (pictured, centre), said in a statement: “Our individual wireless business has taken further steps forward, making gradual additions to its revenues and subscriber base. Despite headwinds, the favourable factors for our continued recovery remain in place.” Consumer revenue increased 2 per cent to PHP29.9 billion, driven mainly by a 20 per cent jump in mobile data revenue and a rise in mobile subscribers. The contribution of data to total retail wireless revenue rose from 38 per cent in mid-2017 to 45 per cent in mid-2018. Revenue in its home and enterprise businesses increased 14 per cent and 9 per cent respectively. Subscriber growth Its mobile unit Smart added 4.6 million subscribers from H1 2017 to end June with 63.1 million total subs. Post paid additions accounted for the majority of the gains and its LTE subscriber base grew 58 per cent. Prepaid ARPU rose 6.4 per cent to PHP116, while post paid ARPU dropped 17 per cent to PHP813. It installed more than 3,900 LTE base stations, boosting its total count by 45 per cent to about 12,600. It also added more than 500 3G base stations, raising the total to 10,400. The company said the stepped-up rollout of LTE and 3G base stations will enable Smart to meet its commitment to the government to provide high-speed wireless data services in more than 90 per cent of the country’s cities and municipalities earlier than end-2018. The company maintained its guidance for full-year telco core income in the range of PHP23 billion to PHP24 billion, while capex will be around PHP58 billion this year as budgeted, up from PHP40 billon in 2017. Wireless is forecast to account for 54 per cent of capex this year.
August 09, 2018
20:56
Samsung packs bigger battery, more storage into Note 9
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Samsung stuffed a massive battery and more storage than ever into its new Galaxy Note 9 smartphone, which was served up alongside a revamped S-Pen with Bluetooth functionality at the company’s launch event today (9 August). Though the Note 9 looks very similar to its predecessor, albeit with a slightly larger 6.4-inch display, Samsung crammed in some major upgrades. It now comes with 128GB of on-board storage as standard, but is also available in a model with 512GB of memory expandable up to 1TB with a microSD card. Samsung also fitted a 4000mAh battery into the device, a move it said will help keep users on the go longer. Other key specs include a Snapdragon 845 processor capable of delivering network speeds of 1.2Gb/s; Android Oreo OS; dual 12MP rear cameras and 8MP front camera; and a fingerprint sensor which is now located under the rear camera rather than next to it. The Note’s trademark S-Pen also got a makeover with new Bluetooth connectivity enabling the stylus to control a number of functions on the phone. By clicking a button on the S Pen, users can now take photos, advance a slide presentation or play music. More tricks could be on the way, as Samsung said it plans to release a software development kit for the S-Pen to allow developers to dream up new tools. But these features mean the Note 9 will one-up the costly iPhone X on price. The 128GB version is priced at $1,000, while the 512GB model will cost a cool $1,250. The ordering process opens on 10 August and the phone will hit shelves on 24 August. Telling time Samsung had a few other devices up its sleeve, including the Galaxy Watch, the successor to the Gear S3, and a multi-function wireless charging pad. Though it looks a lot like a classic timepiece, Galaxy Watch features Bluetooth and LTE connectivity, with wireless charging capabilities along with a heart rate monitor for health and fitness tracking. The device comes in two sizes, 42mm and a 46mm, in two colors: rose gold and black. The Bluetooth edition of the device will become available on 24 August, priced at $330 for the 42mm model and $350 for the 46mm version: the LTE variant will launch through US operators and select retailers later this year, with pricing to be confirmed. Take me home [1]In a surprise turn, Samsung shared a glimpse of its forthcoming smart home speaker, the Galaxy Home (pictured, right). It didn’t provide a launch date or pricing for the device, but noted it will feature the vendor's in-house Bixby personal assistant and an AKG sound system. More details on the speaker will be announced “soon”, Samsung said. [1] [https:]
14:50
German banks unveil mobile payment challenge
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Germany’s association of cooperative banks announced the majority of its institutions would launch smartphone wallet services in the coming days, weeks after Apple revealed it was following Google into the country’s mobile payments sector. Members of Bundesverband der Deutschen Volksbanken und Raiffeisenbanken will be able to roll-out contactless payments using Mastercard or Visa digital token technology. It will be available on Android smartphones under the name VR BankingApp. In a statement, the group said 85 per cent of its 915 member banks would be able to offer the service from 13 August. Users will be able to make contactless mobile payments at more than 500,000 point-of-sale terminals across Germany. It added it would be the first banking group in the country to enable contactless mobile payments. Customers of two banks, Volksbank Mittelhessen and VR Bank HessenLand, have been taking part in a pilot service since June, after an initial trial of the technology with staff members in December 2017. Competition Germany has traditionally proved a difficult market for payment companies with the vast majority of small transactions currently made using physical cash and major mobile wallet suppliers slow to offer payments services. By the start of June neither Apple, Samsung or Google had launched their mobile wallets in the country despite every other major European market except Portugal having at least two of the three available. However, over the last two months the country has been actively targeted. Google Pay was launched during June [1], while weeks later Apple announced Germany [2] would be its next market for Apple Pay. Earlier this year, Germany-based NFC payment technology company Wirecard expanded its contactless service to include wearables [3] as it stepped-up its play in the market. [1] [https:] [2] [https:] [3] [https:]
11:52
AI becomes billion dollar business for Intel
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Intel revealed it generated $1 billion from customers running artificial intelligence (AI) on its chips in 2017, as it eyes a projected $200 billion market opportunity for its data-centric businesses in 2022. In a post on its website, EVP and general manager of Intel’s Data Centre Group Navin Shenoy outlined the company’s push around “data-centric” computing, and AI in particular, as it revealed a revenue figure for the technology for the first time. He said it pulled in revenue of more than $1 billion revenue in 2017 from customers running AI on Intel Xeon processors in the data centre, which he said showed investments in the technology are "paying off". “We continue to improve AI training and inference performance. In total, since 2014, our performance has improved well over 200 times,” said Shenoy. In recent years, Intel focussed on providing computing power for web-based applications in data centres, as its once core PC sales continue on a downward trend. Shenoy stated helping customers "move, store and process data” was “the biggest opportunity in the history of the company", as it set the long-term revenue target for its data-centric businesses. He explained a new era of data-centric computing involving increasing proliferation of the cloud; the impending transition of 5G; and the growth of AI and analytics “have driven a profound shift in the market, creating massive amounts of largely untapped data”. “And when you add the growth in processing power, breakthroughs in connectivity, storage, memory and algorithms, we end up with a completely new way of thinking about infrastructure."
11:04
DT urges action on Dutch deal to meet 5G target
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Deutsche Telekom CFO Thomas Dannenfeldt bemoaned the challenge of competing with converged players in the Netherlands, while revealing a sharp drop in Q2 profit due to a €600 million settlement with German authorities. During its earnings call, Dannenfeldt said competing with two dominant converged players in the Netherlands was “particularly challenging,” adding: “If the Netherlands wants a fast 5G rollout, then the country needs a strong third integrated provider that is in it for the long haul.” Deutsche Telekom is in the process of attempting to acquire rival Tele2 Netherlands, a transaction which would expand its mobile base and allow it to provide converged services using Tele2’s fixed and broadband network. Announcing the deal in December 2017 [1], the companies were confident it would close in the second half of 2018. The European Commission last week again pushed-back its deadline to approve the deal as it conducts an in-depth probe over the implications for competition in the country. It originally aimed to offer a decision by mid-October, but the date was extended [2] and no new deadline offered. Figures In its Q2 earnings, Deutsche Telekom posted year-on-year falls in revenue and profit. Its revenue decline was attributed to the US dollar being “10 per cent weaker than the previous year”, while profit was hit by a large bill from authorities. Net profit for the quarter dropped 43 per cent to €495 million, though it noted this included a €600 million hit to settle a long-running legal case with the German government. Revenue declined 2.8 per cent to 18.4 billion: it added organic revenue increased 1.3 per cent. Analyst Paolo Pescatore warned the operator could face tough times ahead: "The outlook remains challenging for Deutsche Telekom in light of the Liberty Global and Vodafone deal [3]. Should it receive regulatory approval, the new entity will pose a formidable force both in Germany and Eastern Europe." [1] [https:] [2] [https:] [3] [https:]
10:43
NBTC drops 900MHz sale as operators target 1800MHz
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Thai operators AIS and dtac separately announced plans to participate in a forthcoming auction of 1800MHz spectrum, but forced a cancellation of a 900MHz sale by opting out of the process. The operators (respectively the first- and third-largest in the country) informed the Stock Exchange of Thailand (SET) of their decisions yesterday (8 August). With True Move (the second-largest operator) already announcing it would not participate in either sale, regulator the National Broadcast and Telecommunication Commission (NBTC) ditched the 900MHz sale scheduled for 18 August. NBTC said it will announce the qualified bidders for the 1800MHz spectrum on 15 August ahead of an auction on 19 August. All three operators previously failed to submit applications for either auction by deadlines in June, but AIS and dtac reconsidered after the regulator made a number of changes to the 1800MHz auction rules. NBTC postponed the 1800MHz sale and amended the lot size from three blocks of 30MHz to nine of 10MHz. True Move announced in early June it wouldn’t participate in either auction, noting its existing 55MHz spectrum holding is sufficient to support its current subscriber base and future growth. Large debt An analyst familiar with the Thai market told Mobile World Live AIS’ interest is surprising given it spent $3.5 billion on spectrum in late 2015 [1] and early 2016. The analyst speculated AIS is bidding to give dtac a bit of competition. AIS and True Move each owe the government about THB60 billion ($1.8 billion), which is due in 2019. Under a plan submitted by the acting NBTC board, but later dropped [2], the country’s prime minister considered using executive order to give the operators five-year extensions for paying for the spectrum in the 900MHz band. The reserve price per 10MHz slot is THB12.48 billion, which is the same level as set in an 1800MHz auction in late 2015. [1] [https:] [2] [https:]
10:16
Docomo may say arrivederci to Buongiorno
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NTT Docomo was tipped to be exploring a sale of its Italian mobile content company Buongiorno, retreating from a business considered core to the Japanese operator’s international strategy. Financial Times (FT) reported the operator approached banks and advisers to sell the Italian unit, around six years after it acquired the business for $267 million [1]. Docomo will continue to have a relationship with Buongiorno, but is keen to change its ownership structure, added a source. Failing international strategy The Japan-based operator acquired Buongiorno in 2012 at a time when it was looking to boost its overseas activities, because it was over reliant on its home market. Indeed, the deal made it a major player in a growing market for mobile-based content and it followed a similar acquisition of Net Mobile in Germany. Buongiorno became a major mobile content platform after acquiring UK company iTouch before its sale to Docomo. The company operates mobile gaming, payments and music streaming products. FT stated Docomo's international strategy centres on partnering with operators to provide a mobile platform for financial services and content distribution, with Buongiorno at the heart of the approach. Sources cited by the newspaper did not provide concrete reasons behind the decision to sell the unit. FT noted Docomo had also taken hits on stakes in major international operators including AT&T, KPN, 3 UK and Tata Teleservices over the past two decades. [1] [https:]
8:51
Silicon Valley not benchmark for Africa start-ups
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INTERVIEW: Claudia Makadristo, regional manager for Africa at funding platform Seedstars (pictured), stressed the importance for start-ups on the continent to create their own identity, as she urged operators to invest in the region and open doors for entrepreneurs. Seedstars, which promotes and invests in technology start-ups in emerging markets, operates in 30 countries in Africa, as well as Latin America and Asia. Speaking about the challenges of investing in Africa specifically, Makadristo cautioned on the importance of understanding there was not one single ecosystem in the region, with a mix of developed nations including Kenya and South Africa along with smaller countries which still “have to put in some blocks to get to where they need to go”. “The work is never done and designing this ecosystem is very complex, so it might take a while before we get to a stage of a London, Silicon Valley or Tel Aviv,” she said. She, however, added it was important for entrepreneurs, start-ups and investors to remember it is important to “come up with solutions that work for us as Africans. We can’t copy and paste what is happening in Silicon Valley because it's not necessarily relevant for us in the African continent". Makadristo added that, despite the risks involved, she was seeing more investors “take a leap of faith” and put money in Africa’s young entrepreneurs. Rising smartphone penetration and mobile money uptake also offered opportunities for operators to enter different ecosystems and “add value”, she said. In the interview, Makadristo also discussed the hot areas of development and explained what investors look for when considering making an investment. Click here [1] to watch. [1] [https:]
8:37
Mobile money providers urged to grasp integration tech
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INTERVIEW: Mobile money operators eyeing the next phase of growth need to “get modern” and embrace integration technologies, GSMA mobile money head Nathan Naidoo (pictured) told Mobile World Live. In an interview at the GSMA Mobile 360 Series - Africa event, Naidoo said the industry was witnessing double-digit growth in sub-Saharan Africa with rapid expansion in Central and West Africa, which now comprise 40 per cent of the region’s mobile money accounts compared with 20 per cent in 2013. However, he added mobile operators aiming to move into wider financial products should embrace new technology and develop integration facilities. “Making that transition from a traditional mobile money service into a digital platform is going to be really important,” Naidoo said. “To do that right you need to get modern and harmonise integration technologies so you can connect with small businesses, governments and startups.” “Fin tech is the leading target of investment in sub-Saharan Africa for venture capital firms - a sign investors really see this as a part of the future,” he noted. To watch the full interview, which includes an overview of recent taxation controversy and regulation across several markets, click here [1]. [1] [https:]
8:31
Verizon looks ahead to 5G network personalisation
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Verizon Wireless president Ronan Dunne (pictured) tipped network customisation as one of the main game changing technologies which will be enabled by 5G. Speaking at an investor conference, Dunne said network slicing will allow Verizon to target different features at different applications, increasingly offering users a “one-to-one relationship” which responds to their specific needs at a given time. Dunne flagged capacity, latency, speed, battery life and edge computing as layers which could be tailored to the changing needs of various applications. Low-latency, for example, can be used "as a specific enabler" for applications "that may not need massive bandwidth". If the bandwidth requirement of the app increases "I can give burst capacity for things that need it at specific times...Think about burst speeds that can be 100-times what we’re used to today.” This will not just make existing applications more efficient but serve as a new general purpose technology capable of transforming "ecosystems and economic models,” he said. Dunne pointed to mobility as the initial application where 5G features will show up, primarily through “significantly enhanced” speeds. He predicted applications requiring low-latency in retail, enterprise and manufacturing will be the next to spring up, followed by additional applications in fields including healthcare; gaming; finance; smart cities; autonomous vehicles; and sports. Users will get their first glimpse of 5G when Verizon launches its next generation fixed wireless access network [1] in four cities later this year. Dunne said the initial launch will quickly be followed by the introduction of Verizon’s mobile 5G play in early 2019. [1] [https:]
6:27
China Mobile combats competition in H1
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China Mobile, the largest mobile operator in the world, reported steady profit and revenue growth in the first half of 2018 on renewed 4G subscriber growth and gains in its enterprise and emerging businesses. The operator’s net profit for the six-month period grew 4.7 per cent year-on-year to CNY65.6 billion ($9.6 billion), with operating revenue up 2.9 per cent to CNY392 billion. Telecoms service revenue rose 5.5 per cent from H1 2017 to CNY356 billion. Mobile turnover edged up 1.1 per cent to CNY268 billion; its enterprise business posted 10.1 per cent growth to CNY38.1 billion; and emerging business revenue grew 7.8 per cent to CNY27.9 billion. China Mobile chairman Shang Bing said: “In the first half of 2018, market competition has intensified and cross-sector convergence has increased pace. At the same time, operators were required to take further actions to comply with the state policy of speed upgrade and tariff reduction.” Shang said its personal mobile market remains the biggest revenue contributor. To counter the intensifying competition on customer and data traffic market shares, he said it adjusted its strategy and took a series of actions to develop its 4G business as well as data traffic operations: “As a result, we saw our 4G net additional customers and data traffic market share swing back to a positive trend.” Subs growth The number of mobile connections increased by 39 million year-on-year to end June with 906 million: 4G penetration reached 74.7 per cent, taking the operator's total to 677 million LTE customers, a gain of 83 million from end H1 2017. Mobile ARPU fell 6.6 per cent to CNY58.10. IoT connections jumped by 154 per cent year-on-year to 384 million, with the company noting M2M connections now outnumber human-to-human connections in some areas. Revenue from IoT business grew 47.6 per cent. The operator added 190,000 4G base stations in the first half of the year. Following its support in finalising the first set of 5G standards, Shang said: “We will continue to proactively roll out trial tests on the 5G network and other tests on 5G applications in the second half of 2018, as well as invest resources into the 5G Joint Innovation Centre and study the possibility of cross-industry integration and applications that will speed up the commercialisation of 5G technology. We are keen to generate returns on our investments and will plan our future investments on 5G taking into consideration the level of maturity of the industry and business models that emerge.” He noted it plans to strengthen cooperation with established internet companies to market content-based data products on a larger scale, in order to further boost data traffic revenue.
6:08
Spark New Zealand sets 5G rollout schedule
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Spark New Zealand outlined its 5G rollout schedule, announcing plans to open a 5G innovation lab in late 2018, boost wireless network investment as much as 40 per cent annually and launch services in 2020. MD Simon Moutter expects wireless capex to be between 25 per cent and 35 per cent of overall capex by 2020, up from 25 per cent in the year ended 30 June 2017. That would represent annual wireless network investment of NZD100 million ($66.7 million) to NZD140 million, compared with an average of just over NZD100 million in the five years to that date. The country's second-largest mobile operator will fund 5G development (excluding spectrum and any move towards widespread rollout of new cell sites using high-frequency mmWave spectrum) within its existing capex target of 11 per cent to 12 per cent of revenue. Next steps Moutter said its technical and network planning for 5G is advancing after successfully conducting outdoor and indoor trials [1] earlier this year. “We are undertaking detailed planning to map expected 5G cell site densities and, as a result of this planning, we are forming a good understanding of how many new sites we will need for 5G, and where. We have already begun a build programme to increase the number of cell sites in our existing mobile network – which will enable us to meet near-term capacity demand as well as lay the groundwork for network densification required for 5G.” He said 5G will enable Spark to provide additional capacity at a lower incremental unit cost than under 4G and 4.5G: “This means that once 5G is available to deploy, we will have a strong commercial incentive to rapidly build 5G network capability as the primary means of keeping ahead of growing customer demand for more data at faster speeds.” The innovation lab will be located in Auckland’s Wynyard Quarter Innovation Precinct, which will allow partner companies to test and develop applications over a pre-commercial 5G network, the operator said. Spectrum issues Moutter noted Spark is already making decisions that are contingent on securing additional 5G spectrum and is having to make those decisions in the absence of any clear government policy on when spectrum will be available or in what bands. He said the allocation processes for the two most likely spectrum bands – mid-frequency C-band and high-frequency mmWave - should be completed as soon as possible to ensure 5G services can be delivered in time for the 2021 America’s Cup in Auckland as an international showcase opportunity. In addition to these bands, low-frequency spectrum (sub-1GHz) will be required to deliver 5G services on a pervasive basis into rural areas (outside of small provincial towns), he said. The executive added it is important for policymakers to recognise 5G is not a standalone technology or solution: “It will operate together with previous generations of wireless technology and will be deployed as an overlay of existing network infrastructure. Therefore, policy settings need to support network operators having control over the evolution of their wireless networks,” he explained. [1] [https:]
August 08, 2018
17:27
Facebook pushes AR ambitions with Messenger games
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Facebook launched a new set of augmented reality (AR) games for its Messenger app which will allow users to challenge up to six friends via video chat. The first games released include Don’t Smile, an AR take on the classic staring contest, and Asteroids Attack, in which players use their face to navigate a spaceship. Facebook said two additional games are on the way: ball passing challenge Beach Bump and a cat game called Kitten Craze. Facebook’s rollout of AR games follows the debut of its AR Studio tool in April 2017 [1], and comes on the heels of Snap’s introduction of AR gaming via its Snappable feature [2] in April of this year. The AR games are accessible through the filter menu on Messenger’s video chat feature, setting them apart from the 70-plus arcade-style titles found on the app’s Instant Games platform [3]. While games on the Instant Games platform include adverts, Facebook told TechCrunch there will initially be no ads, sponsorship or in-app purchases available in the AR video chat games. However, the opportunity could prove too lucrative to pass up in future, as Facebook noted video chat usage continues to grow. It said users held over 17 billion video chat sessions in 2017, double the number of 2016. [1] [https:] [2] [https:] [3] [https:]
15:19
Snapchat loses users over redesign
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Snap reported a decline in its daily active user base following a widely criticised redesign of its Snapchat app [1], as CEO Evan Spiegel said the company had addressed the most irritating elements. While the Q2 daily active user figure of 188 million was up 8 per cent year-on-year, it was down from 191 million in Q1. The CEO said this was mostly due to declines in the frequency of use "due to the disruption caused by our redesign”. “It has been approximately six months since we broadly rolled out the redesign of our application, and we have been working hard to iterate and improve Snapchat based on the feedback from our community. “We’re working hard to expand the long tail of our content offering and we are making steady progress on improving personalisation,” Speigel said. The company partially revoked [2] the changes in May. Figures Users continue to spend an average of more than 30 minutes on Snapchat every day and other indicators including new user retention are also showing positives. In Q2 the company trimmed its loss to $353.3 million from $443.1 million in Q2 2017, on revenue of $262.3 million, up 44 per cent year-on-year. Spiegel said its transition to programmatic advertising reduced cost per impression, swipe and install for advertisers "while simultaneously growing our advertising revenue 48 per cent year-over-year”. “Our advertising is now cost-effective, easy to buy, and easy to measure. This has removed friction from our advertising business and allowed us to scale to many more advertisers than we could have reached with our direct sales force. Even though this transition wasn’t easy, it was the right thing to do for our business over the long-term, even at the expense of short-term revenue growth." It was also revealed Saudi billionaire Prince Alwaleed bin Talal’s Kingdom Holding had a $250 million stake in Snap: the investment company previously invested in Twitter, Lyft and JD.com, among others, Financial Times reported. [1] [https:] [2] [https:]
14:50
Xiaomi partner ramps Indian component work
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Xiaomi said a key component supplier is set to begin the production of parts in India, enabling it to increase local input into the manufacture chain in one of its most important markets. Holitech Technology is set to manufacture parts in Andhra Pradesh, investing nearly $200 million over three years. Xiaomi said it will be the first local producer of compact camera modules, thin film transistors, capacitive touch screen modules, flexible printed circuits and fingerprint sensors. Manufacturing is “likely” to start in Q1 2019, with the aim of creating 6,000 jobs in three years. Xiaomi is one of the many companies which assembles products in India to support the government’s Make in India drive to boost the manufacturing sector. But the initiative was limited by a lack of Indian component manufacturers [1], which in turn restricted the value brought to the country. Earlier this year, it was reported the government had expanded a list of smartphone components covered by import duties [2]. Manu Jain, VP and MD of Xiaomi India, said: “Holitech is an important global component supplier of Xiaomi and with their entry in India, we are positive that a new era of local manufacturing will begin with several job creations and other component manufacturers also coming in.” [1] [https:] [2] [https:]
14:39
Palm resurrection edges closer
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Speculation on the return of the Palm brand to the smartphone market intensified following a report a comeback device had completed key certification tests. Android Police reported a device named PVG100 has now passed through FCC and Wi-Fi Alliance approvals processes. It is Android-powered and is only compatible with 2.4GHz Wi-Fi, meaning it is likely to be a budget proposition. The Palm name now comes under the auspices of TCL Communication, which already offers devices using the Alcatel and BlackBerry monikers. Initial reports in 2017 indicated the vendor was preparing to bring the iconic brand back and, in March, Android Police stated the first unit would launch in the US [1] during H2 2018. One question remaining is how the device will build on the Palm heritage. With its BlackBerry-branded devices, using software from the eponymous Canadian company, TCL Communication has targeted the enterprise market with keypad-based models, building on the reputation of BlackBerry's original devices. But Palm, which was a pioneer in both the personal digital assistant and smartphone markets, blazed its own path with an in-house operating system, meaning the new Android-powered product’s links with previous devices will only be skin deep. [1] [https:]
13:29
Intelligence Brief: Is content really strategic for MNOs?
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The war for video content is intensifying. To be fair, we’ve all heard this before. But, over the past few years, we have seen a ramp in the amount being spent on content and on the battle to acquire partners which can strengthen a content proposition. Consider some of the higher profile moves (see image below, click to enlarge). [1] Video content usage: The obvious driver Three main elements are driving content usage: affordability; accessibility; and variety. First, it is increasingly affordable to consume content. This is something we can all speak to personally. Content from Netflix, for example, can be watched for less than £6 per month in the UK. Connectivity easily costs less than £20. And, as content has become cheaper, it’s also got easier to consume when and where we want. Users can view content on multiple devices (for example tablet, smartphone, TV, PC). High bandwidth internet access speeds on fixed networks (including DOCSIS 3.0, FTTP/B/H) and mobile (4G) have made this possible. Of course, none of this would matter if there wasn’t compelling content available. While we might argue with those who say we’re in the golden age of television, the fact remains that the variety of content available to consumers today is enormous. The vast range of video content available (including high-definition and ultra-high definition options) truly caters to all consumer tastes. Video as strategy: The obvious follow-on As content supply and demand have both ramped, traditional players (broadcasters, film studios) in the video content space have seen the arrival of organisations such as Netflix, Amazon and Facebook. They have also noted an increased interest from telecom operators. The motivations of those newcomers can be varied. For Amazon, a streaming video content service may help cross-sell other products. In the case of telecom operators, video content may help them in a few ways: • increase network traffic and potentially upsell offers as a result; • compensate the gradual weakening of differentiators such as broadband speeds and bundling; • build affinity (stickiness) with customers. In a world where it’s increasingly difficult for a telecom operator to charge more for bandwidth (for instance, user experience for customers with 1Gb/s speeds may not be different from having 120Mb/s) this is all particularly important. And where bundling can work well to capture new customers and generate upsell in the short-term, the potential to create downward price pressures over the medium- and long-term can often be ignored (particularly if the operational benefits of offering video in a bundle can generate cost efficiencies). Exclusive content – good idea? There is no single best content strategy for all operators to follow. The optimal strategy will depend on each operator’s circumstances and assets: budget size; risk appetite; market competitiveness; et cetera. One facet of any strategy which most operators will need to consider is how they look at exclusive content. Is it worth the investment of time and money? Does a combination of both make sense? • Exclusive content. Here, we’re talking about content produced by the operator (for example, series) along with content sourced from third parties (such as sports). However, producing original content comes with a risk of failing to be attractive to consumers, despite high levels of investment. Operators going down this path will need to master this skill. On the other hand, sourced content is a safer choice as its potential demand has already been tested. For example, broadcasting sport events such as the Olympics or the Premier League are likely to find strong consumer demand. • Non-exclusive content. Beyond generating their own content, operators can act as distribution channels for content providers, with a partnership typically operating under a revenue-sharing business model. The lack of exclusivity means differentiation is limited, but so is the level of investment. Consumers, of course, can access the same content through other channels, such as directly from the content provider. But is it truly an either/or decision? Not at all. Even where operators choose to develop their own, exclusive content, they can also partner to deliver the other content their customers want. One example I’m looking to is Telefonica. In February, the operator announced a launch of original content to be broadcast over 13 countries in Latin America, alongside content sourced from third parties. Content quality and choice are obviously a key differentiator. Telefonica, however, also sees user experience as a key factor to differentiate its proposition: the operator expects its network and content access platform to play a strong role in that regard. How this all plays out is still a question. But it’s good that we have examples to look to. – Nuno Afonso, senior analyst - Multiplay, GSMA Intelligence The editorial views expressed in this article are solely those of the author and will not necessarily reflect the views of the GSMA, its Members or Associate Members. [1] [https:]
13:12
Qualcomm updates mid-tier Snapdragon line
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Qualcomm added a new processor to its Snapdragon 600 line, targeting mainstream smartphones with features including artificial intelligence (AI), and upgrades to camera and multimedia capabilities. The vendor said Snapdragon 670 also provides vendors with more freedom to add features and experiment with different device sizes than its previous generation processors: the product is the successor to Snapdragon 660. Qualcomm said Snapdragon 670 uses the same digital signal processing (DSP) found in higher-tier platforms: Qualcomm Hexagon 685 DSP. It also integrated its third-generation AI Engine, improving performance by up to 1.8-times over the previous generation. The new silicon includes Qualcomm’s Kryo 360 CPU, which marries two performance cores (up to 2.0GHz) with six efficiency cores (up to 1.7GHz) to deliver up to 15 per cent higher performance over its predecessor. It is also the first in the Snapdragon 600 line to include the Spectra 250 ISP, which is said to enable “most of the premium camera features found in professional cameras, including noise reduction, image stabilisation and active depth sensing”. It supports a single camera of up to 25MP, or dual cameras at 16MP. Also onboard is Qualcomm’s X12 LTE modem, offering peak download speeds of 600Mb/s and upload speeds of 150Mb/s. Snapdragon 670 is currently available, with commercial devices expected “later this year”. It joins a number of other Snadragon chips unveiled this year, including 710 [1], unveiled in May, and the 632, 439 and 429 [2] announced in June. [1] [https:] [2] [https:]
12:14
Nextel Brazil attracts interest as sale looms
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Big name operators including Telefonica, Telecom Italia and America Movil were tipped to be among the parties interested in acquiring NII Holdings' Nextel Brazil business. The operators' local units (Vivo, TIM Brasil and Claro, respectively) were named alongside Access Industries (which already holds a 30 per cent stake) as likely bidders for the operator by a Reuters source. NII Holdings expects to receive offers next month, the source said. A sale could trigger consolidation in the Brazilian market: troubled operator Oi, the country’s fourth largest, was previously linked to a takeover from China Telecom, [1] although a sale is yet to materialise. GSMA Intelligence estimated Nextel Brazil ranked as the fifth-largest of seven operators in the country, with 3.3 million connections at end-Q2. The company significantly trails its four larger rivals, with Telefonica leading the market with an estimated 75.3 million connections. In an earnings call this week, NII Holdings CFO Daniel Freiman confirmed the unit was up for sale, while Nextel Brazil CEO Roberto Rittes said an expected increase in spectrum caps by regulator Anatel would also speed up a sale. Rittes does not expect regulatory opposition to the transaction, though Reuters noted a sale to Telefonica or TIM could be reliant on the changes to spectrum caps. Nextel Brazil’s value lies in its spectrum assets in Rio de Janeiro and Sao Paolo, but Telefonica and TIM are already nearing current limits in both states. [1] [https:]
11:48
EC unhappy with universal charger progress
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The European Commission is considering renewing a push for a single type of mobile phone charger to work across all handsets, almost a decade after the majority of manufacturers agreed to move to a universal interface, Reuters reported. Currently Apple uses its own charging ports while the majority of other manufacturers use either micro USB-B or USB-C in some newer devices. Most major manufacturers signed a voluntary pledge in 2009 to switch to a common charging port for handsets released from 2011, which curtailed any formal intervention by the EC on the issue. However, in a letter leaked to Reuters this week, EC competition commissioner Margrethe Vestager (pictured) described progress made on the issue as “unsatisfactory”. She added the Commission would conduct an “impact assessment” to see if formal action was needed. Although the original memorandum of understanding signed by the vendors expired in 2012, the initial signatories extended the agreement in 2013 and again in 2014. In 2009, the EC said there were 30 different types of charger on the market with old chargers contributing 51,000 tonnes of waste per year in the EU.
11:16
Iran sanctions hit MTN bottom line
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MTN Group CEO Rob Shuter (pictured) pointed to growth across Nigeria, Ghana and its home market of South Africa in the first half of 2018, although the company’s profit continued to be hit by outside influences. The operator group reported a drop of 5 per cent year-on-year in its H1 net profit to ZAR4.9 billion ($366 million) on revenue of ZAR62.7 billion. Earnings were heavily impacted by a 30 per cent decline in profit from its 49 per cent stake in MTN Irancell. This was partly due to a weakening of the Iranian rial after the US announced in May it would reintroduce sanctions on the country. MTN said the sanctions, the first wave of which came into effect this month, may limit its ability to repatriate cash - including its dividend - from the country going forward. Aside from issues in Iran, the group – which operates across Africa and the Middle East – said it had suffered from challenging macroeconomic conditions in South Africa and Cameroon during the six-month period. Figures MTN Group reported growth in service revenue driven by voice and data. Its digital division revenue also expanded, by 7.6 per cent year-on-year, largely based on an increase in mobile money usage. Mobile money revenue increased by more than 50 per cent year-on-year, with 24.1 million users subscribed to the mobile money service across 14 markets at end-June. In its earnings statement, Shuter said: “MTN had an encouraging first half of 2018, with an acceleration in the second quarter, supported by an improved operational performance across many markets. This was led by Nigeria, Ghana and South Africa. "Service revenue growth increased, driven by robust voice revenue growth and the continued expansion of data and digital revenue.”
10:49
AT&T takes sole ownership of Otter Media
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AT&T announced a deal to acquire The Chernin Group’s controlling stake in Otter Media, a joint venture formed by the two companies in 2014, as the US operator continues to build up its media portfolio following its Time Warner acquisition. In a statement, AT&T said Otter Media will be folded into WarnerMedia, the unit formed by the US operator following completion of the $85 billion Time Warner deal [1]. Current Otter Media CEO Tony Goncalves will continue to run the company, reporting to WarnerMedia chief John Stankey. Stankey said AT&T will look to “harness Otter’s expertise in feeding the passion of online audiences to augment our portfolio of digital assets”. Otter Media operates as a subscription, advertising and content company, comprising wholly-owned subsidiaries Ellation, an online subscription video service provider; and Fullscreen, a digital media company. Otter Media company also holds stakes in global content studio Gunpowder and Sky, along with media company Hello Sunshine. Goals The operator and The Chernin Group established Otter Media to “invest and develop platforms and properties that capitalised on the growth of direct-to-consumer subscription and advertising models, as well as the rise of new digital media brands". AT&T said the company has now established a global audience of more than 93 million unique monthly consumers across its brands, with 2 million paying subscribers, and “is on pace” to deliver 75 billion video views. Terms of the deal were not disclosed, but AT&T said the acquisition “did not have a material effect on its first half 2018 results". The Chernin Group CEO Peter Chernin added with “AT&T’s direct-to-consumer relationships, vast data and varied content, I believe they can accelerate Otter’s growth”. As AT&T continues its march in the media segment, rival Verizon recently took a step back on its own ambitions after striking a deal to sell its joint venture AwesomenessTV to Viacom. [2] The company’s go90 mobile video app [3] was also shuttered at the end of July. [1] [https:] [2] [https:] [3] [https:]
April 25, 2018
16:43
Uganda authorities urged to rethink mobile money tax
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Lobby groups cranked up pressure on the Ugandan government to scrap a new mobile money tax protesters call a "regressive" move which will inhibit financial inclusion. Newspaper Daily Monitor and a number of other outlets reported comments from several groups urging a rethink on proposals to add a 10 per cent levy to commission taken on mobile money transactions. Protesters say users' transactions are already subject to substantial processing fees and taxes, and these - combined with the new levy - will hit poorer members of society hardest. Organisations lobbying authorities over the charge include the Tax Justice Alliance, Consumer Education Trust and Civil Society Budget Advocacy Group. In addition to warnings on hampering financial inclusion and discouraging mobile money usage, the groups pointed to a potential impact on 150,000 agents in Uganda offering services related to mobile money provision. Mobile money services are offered by a number of companies in the country, including the two largest mobile operators by connections, MTN and Airtel.
15:43
Huawei target of US sanctions violation probe
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The US Department of Justice (DoJ) opened an investigation into whether Chinese equipment manufacturer Huawei violated US restrictions on trade with Iran. A criminal probe was initiated after the country's Department of Commerce and Department of the Treasury called Huawei to account regarding similar issues, The Wall Street Journal reported. While Commerce and Treasury officials can levy regulatory punishments on the company, Huawei could face criminal penalties if the DoJ determines it intentionally broke US laws. Scrutiny from Washington is nothing new for Huawei. For years, the company had been the subject of suspicion from US officials, who accused it of spying [1] and deemed it a threat. Political pressure blocked Huawei’s bid to secure smartphone supply deals with US operators AT&T [2] and Verizon [3], while in March retailer BestBuy also dropped the company's devices [4]. Recent action at the Federal Communications Commission also threatens to remove Huawei’s tiny foothold in the US equipment market by blocking smaller operators [5] from using government funding to buy its products. What could happen ZTE provides a case study of just how much worse things can get for Huawei. In 2017, ZTE pleaded guilty to charges it illegally shipped US goods to Iran [6] in violation of trade sanctions and was fined nearly $1 billion as part of a settlement agreement. But earlier this month, the US banned domestic companies from selling components to ZTE [7] for seven years after it found the vendor violated the terms of its settlement deal. The ban threatens ZTE’s business across the board. However, it could have a particularly outsized impact on the company’s handset division [8] as it will not only block access to key hardware from companies including Qualcomm, but perhaps also Android software from Google which serves as a core technology in ZTE handsets. ZTE vowed to fight the trade ban [9]. [1] [https:] [2] [https:] [3] [https:] [4] [https:] [5] [https:] [6] [https:] [7] [https:] [8] [https:] [9] [https:]
15:25
Airtel, Millicom book strong Q1 mobile money growth
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Rivals Airtel and Millicom reported rapid increases in customer numbers using their mobile money brands during Q1, as growth in Africa continued unabated. As the first major mobile money providers on the continent to book figures for the opening period of 2018, both highlighted the importance of the service as part of their wider offering. During the quarter, Airtel Money’s base increased by 31 per cent year-on-year to 11.5 million customers, though this included 800,000 customers acquired alongside Millicom’s Tigo Rwanda [1] business earlier this year. Airtel Money is currently available in 14 countries across Africa including Nigeria, Kenya, Tanzania, Malawi, Uganda and Zambia. Its customers made close to 500 million transactions across its markets, up almost 35 per cent year-on-year, with a combined value of $5.6 billion compared with $3.9 billion in Q1 2017. Likewise Millicom, which provides the service in Chad and Tanzania, recorded an 11 per cent year-on-year user base increase to 6.7 million by end-March. Its total mobile base in Africa was 14.9 million. Usage figures and transaction values were not provided by the company. [1] [https:]
15:15
Xiaomi to cap hardware profit margin
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Chinese handset vendor Xiaomi pledged to cap its net profit margin after tax for its hardware business to no more than 5 per cent “forever” and return any excess amounts it generates to its customers. In a tweet, the company said the policy will be applied to money it makes from smartphones, currently its biggest market, and other devices it manufactures. Today our CEO Lei Jun announced a promise to all our fans...#Xiaomi [1] will forever limit the net profit margin after tax for our entire hardware sales (including smartphones, IoT and lifestyle products) to a maximum of 5%. Do you like the sound of that? pic.twitter.com/ZbEjaVeBLf [2] — Mi (@xiaomi) 25 April 2018 [3] Bloomberg noted Xiaomi made the pledge as it prepares for an IPO which could value it at $100 billion, adding the move suggests Xiaomi is confident it can generate good returns from other services it provides alongside hardware, such as video streaming and advertising. “It means Xiaomi is not only confident about recurring service revenue, but also optimistic about Chinese consumers’ consumption of digital services,” Nicole Peng, senior director of mobility at research company Canalys, told the news agency. However, while such a unique offer to share profits may sound attractive to potential and existing customers, TechCrunch warned most companies struggle to make a big profit from hardware, apart from Apple. For example, in Q4 2017 Apple captured 87 per cent of smartphone industry profits despite accounting for 18 per cent of total units sold in the period, figures from analyst company Canaccord Genuity show. This was due to premium pricing of its products, while rival smartphone vendors Samsung and LG rely on their component businesses for the bulk of their revenues. Notably, Xiaomi also sells its hardware at relatively low prices, which is considered to be a key part of its strategy. Indeed, the company’s former global vice president Hugo Barra said in 2016 the company was unaffected by a sharp drop in smartphone sales [4] at the time because its profitability is more dependent on smart home devices and its software ecosystem. Mi6X launch In another announcement, Xiaomi also launched the Mi6X, a new phone for the Chinese market. The device has an 18:9 display, dual camera and is powered by a Snapdragon 660 processor. It comes in five colours and is priced at around $250. The Verge reported Xiaomi is using the device to bring the 18:9 display to the middle tier of the market, following the recent launch of Redmi 5 and high end Mi Mix 2S. Although Mi6X is initially launching in China, the device could reportedly also be rolled out in India. [1] [https:] [2] [https:] [3] [https:] [4] [https:]
14:35
Twitter remains profitable as content delivers
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Twitter posted its second ever quarterly profit in the opening three months of 2018, as revenue increased 21 per cent year-on-year. CEO Jack Dorsey said the company enjoyed a strong start to the year, citing the company's push into live video and personalised content as drivers. "We grew our audience and engagement, marking another quarter of double-digit year-over-year [daily active user] DAU growth, and continued our work to make it easier to follow topics, interests, and events on Twitter,” he said in the company's Q1 2018 earnings statement. The company reported revenue of $665 million, an increase of 21 per cent year-over-year, while net income of $61 million compared with a net loss of $62 million in Q1 2017. The profit builds on Twitter's first ever net income of $91 million recorded in Q4 2017. Advertising revenue in the recent quarter of $575 million was up 21 per cent year-over-year, more than half of which came from video. In a letter to shareholders, the company stated it delivered better value to advertisers during Q1, as efforts in machine learning produced a more refined experience. "We've begun sharing curated timelines of tweets around breaking news events in different parts of the app, including the home timeline and search results, to make it easier to find relevant news and the surrounding conversation." The company also said video "remains an important component of the experience on Twitter, allowing people to post relevant live broadcasts or video clips, advertisers to use In-Stream Video Ads to reach their customers on Twitter at highly relevant moments, and content owners to extend their reach on Twitter." User growth The average monthly active users (MAU) figure hit 336 million, a 3 per cent increase year-on-year, while DAU grew 10 per cent (Twitter doesn’t reveal actual figures for this metric). Despite the MAU growth, Twitter pointed out the figure "continued to be negatively impacted by changes made to Safari’s third-party app integration, which affected approximately 1 million MAUs in Q1, and by our ongoing information quality efforts.”
12:40
Galaxy S9 shipments hit 8M in first month
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Samsung shipped more than 8 million Galaxy S9 and S9+ smartphones in the first four weeks after launch, while Apple’s iPhone X toiled in the first quarter of 2018, research company Canalys said. The South Korean electronics maker, which unveiled the S9 series [1] at this year's Mobile World Congress, stated this month it is expecting a record profit for Q1 [2], partly down to strong sales of its latest flagship. Canalys said there was a “much greater percentage of shipments” for the S9+ model, compared with the S8 series, which was due to the dual cameras of the S9+ which are lacking on the cheaper S9. However, while the S9 series fared well, it failed to surpass the 9 million shipments achievements by the S7 series which launched in March 2016. Nevertheless, Canalys analyst Ben Stanton said the S9’s performance was impressive, considering the device “is not a major step up from the S8”. “Samsung has made significant improvements to its go-to-market strategy, with wider availability in more markets at launch,” he said. “It has also engineered upgrades by providing an aggressive global service trade-in programme, with generous discounts to reduce costs to end users.” iPhone X demand slows While the S9 thrived, Apple’s iPhone X had “a disappointing quarter”, with shipments of less than 14 million units in Q1 2018 compared with 29 million in Q4 2017. TuanAnh Nguyen, analyst at Canalys, said the iPhone X’s performance was a clear indication “of the challenges that premium smartphones now face". “The novelty of premium smartphones is wearing off, and features such as 18:9 displays and dual cameras are being commoditised quickly to average selling price.” [1] [https:] [2] [https:]
12:13
Orange appoints new execs in Africa
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Orange Egypt appointed Yasser Shaker as its new CEO to “accelerate the digitalisation of the country”, days after the resignation of previous chief Jean-Marc Harion. Bruno Mettling, chairman of Orange Egypt, confirmed Shaker's appointment on Twitter. Congratulations to @YasserShaker_ [1], our new CEO of @Orange_Egypt [2]. I’m confident that Yasser will face successfully the challenges and wish him the best for his new professional endeavor. pic.twitter.com/hyKfmxvfJp [3] — Bruno Mettling (@BrunoMettling) April 24, 2018 [4] Shaker was previously CTIO for Orange Middle East and Africa, where he worked on the digitisation strategy for 19 countries. Before that, he was CTO of Orange Egypt. "He will be leading Orange Egypt’s team aiming at accelerating the country’s digitalisation with full support from Orange Group," the operator said in a statement. "Orange's presence in Egypt is of utmost importance to its future development in Africa and the Middle East... Egypt will always be a crucial and essential hub for its business growth in the region," the statement added. As for Harion, he is set to head Polish operator Play starting in August, where he will replace Jorgen Bang-Jensen. Orange also appointed Aminata Kane Ndiaye as CEO of its Sierra Leone unit, Financial Afrik reported. She was previously mobile money marketing manager at Orange, based in Senegal. Orange said it would not comment on her appointment for now. [1] [https:] [2] [https:] [3] [https:] [4] [https:]
11:15
Millicom hails result of business turnaround plan
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Millicom talked up the success of its business transformation and investment in data infrastructure across Latin America, as net profit from its continuing operations jumped 65 per cent year-on-year in the first quarter. CEO Mauricio Ramos (pictured) said the company was now experiencing more predictable revenue patterns and steady growth as the result of a three year programme to transform the business [1]. During Q1 2018, Millicom focused on deploying infrastructure to support high-speed data networks across its footprint in Latin America – a region which contributes over 90 per cent of group revenue – and reorganised or disposed of a number of assets. The company, which operates in Latin America and Africa, reported net profit of $87 million from continuing operations in Q1 2018 compared with $53 million in the same period of 2017. Revenue grew 4 per cent year-on-year to $1.5 billion. Including the impact of discontinued units, profit fell 27.9 per cent year-on-year to $17 million. Divestments made since Millicom unveiled its new strategy include its Tigo Rwanda business, sold to Bharti Airtel, [2]and a number of agreements with investment companies to sell and lease back towers in some of its Latin American markets. Its Ghana business was reclassified as a JV with Bharti Airtel, and Tigo Senegal is currently being sold to a consortium. Hailing the impact of the turnaround strategy, Ramos said: “We are now beginning to reap benefits in the form of faster and more predictable revenue growth, improved cash flow and returns, and a stronger balance sheet.” He added the company reported steady increases in its mobile business across its footprint alongside “record growth” in its home broadband divisions. The company began reviewing its business [3] in response to a decline in earnings from traditional voice and SMS services, and came amid a turbulent period of sharp foreign exchange movements in several of its markets. Millicom was still reporting sporadic quarterly losses as recently as Q2 2017 [4]. Guatemala probe Meanwhile, in a separate statement the company confirmed it will face no action following a US Department of Justice investigation into potential “improper payments” made on behalf of the company’s JV in Guatemala The DoJ closed the probe, which began Millicom voluntarily reported the matter in October 2015. [1] [https:] [2] [https:] [3] [https:] [4] [https:]
10:44
America Movil endures Q1 profit plunge
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America Movil’s struggles continued as the operator reported a 50.5 per cent drop in net income for Q1, with currency fluctuations delivering a hit to earnings. In its earnings statement, the operator revealed it generated a net profit of MXN17.7 billion ($940 million) in Q1 2018, a drop from MXN35.9 billion in the same quarter year prior. Despite the drop, the company will be encouraged it swung back into the black, after reporting net losses in the previous two quarters [1]. Revenue for Q1 hit MXN254.5 billion, a 3.7 per cent drop from MXN264.2 in Q1 2017, but on a constant currency basis the figure rose 2.8 per cent. Service revenue dropped 4.4 per cent, reaching MXN221 billion from MXN231.3 billion, but also rose on constant exchange rates by 2.1 per cent. EBITDA was “practically flat” at MXN71.2 billion, but at constant exchange rate it was up 5.9 per cent. The company noted long-term US interest rates rose to levels “not seen in over four years”, but the "Latin American market was not affected by the increase in the US interest rates”. “In fact, the Mexican peso became one of the best performing currencies following its depreciation in the fourth quarter of 2017," it added. The company said the main drags on revenue came from fixed-line voice, “reflecting major reductions in long distance revenues in Brazil and Mexico”. The major revenue drivers came from post paid and prepaid data, together with fixed-broadband gains. Home market Mexico was a bright spot for the company in the quarter, with total revenue increasing to MXN66.5 billion from MXN63.4 billion in the comparable 2017 quarter: service revenue increased 6.3 per cent year-on-year. Wireless subscribers in Mexico rose 1.4 per cent to 74 million. The company ended the quarter with 279 million wireless subscribers across its operations, a 0.3 per cent drop from the same period of 2017. [1] [https:]
10:17
WhatsApp increases age requirement for EU users
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WhatsApp announced it will increase the current age requirement for EU users as the messaging service updates its rules to meet forthcoming General Data Protection Regulation (GDPR), which comes into force on 25 May. The app will ask users to agree to new terms of service in the coming weeks and confirm they are aged 16 years or over, although it is not clear how the new rule will be enforced. The current minimum age for users is 13 years. GDPR aims to give people more control over how companies use their information and the right to have their data erased. The regulation also includes rules to protect children from having their data collected or employed to create user profiles. Local business In a blog, WhatsApp explained it “established an entity within the European Union to provide your services there and to meet the new high standards of transparency for how we protect the privacy of our users.” “In the coming weeks, you will be able to download and see the limited data that we collect. This feature will be rolling out to all users around the world on the newest version of the app,” it added. The age limit will remain at 13 years in the rest of the world, as is the case with most social media apps including Snapchat and Twitter. Meanwhile parent Facebook is taking a different approach to young users. It said those aged 13 years to 15 years will need to get permission from a parent or guardian for their information to be shared on the platform. Otherwise they will not see a fully personalised version of the service. Facebook began its GDPR privacy rollout last week [1]. Though European users will be the first to gain access to new privacy controls from the company, the settings will be eventually extended to all 2 billion users. [1] [https:]
9:52
Line Mobile expands into third Asian market
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The company behind the popular Line messaging app moved into Taiwan’s telecoms sector offering data and voice services using Far EasTone’s mobile network. Line Mobile is targeting its MVNO service at price-conscious consumers, offering one-year unlimited data contracts for TWD299 ($10.06), TWD399 and TWD499, with speeds for the two lower priced plans capped at 10Mb/s and 21Mb/s, respectively, Taipei Times reported. Taiwan is the third market where Line Mobile services are available, following launches in Japan and Thailand through deals with NTT Docomo and dtac respectively. Roger Chen, general manager of Line Taiwan, said it plans to attract subscribers with promotions including bonus points which can be used to purchase emoji stickers, the newspaper reported. The newspaper reported industry insiders don't expect Line Mobile to significantly impact the country’s top three players. Chunghwa Telecom is the market leader with a 36 per market share, followed by Taiwan Mobile (26 per cent) and Far EasTone (25.6 per cent), Q1 data from GSMA Intelligence shows. Line is already an established brand in Taiwan, with its messenging service used by 19 million, Taipei Times reported. The country's population stands at around 23.7 million.
9:50
Blog: The importance of handicapping the race to 5G
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A few weeks back, Mobile World Live’s Michael Carroll penned a blog entitled: Does it matter which region wins the 5G race? [1] It’s an important question and worth revisiting in light of new developments on this front. To that end, this blog represents some additional views on the topic and what will be a continuing series of posts aimed at sharing insights from the GSMA Intelligence team – from its analysts and economists, to its forecast specialists and data scientists, and every now and then from the person lucky enough to lead them (me). Peter Jarich, Head of GSMA Intelligence -------------------------------------------------------------------------------------------------- The 'Race to 5G' concept is far from new. Often, it’s been treated as nothing more than an abstract concept – a finish line that everyone is trying to reach. Just as often, however, 5G has been positioned as a competition between nations. We’ve heard about an EU 5G agenda vs. a Chinese national agenda vs. a lagging US agenda. Then we heard about increasing US momentum in the face of Korean launches around the Winter Olympic Games. Most recently, we’ve all heard about a CTIA-sponsored study warning of the US falling behind China on the 5G front [2] and FCC Commissioner O’Reilly explaining to the American Enterprise Institute the importance of beating the rest of the world to 5G. In an effort to drive national regulatory reform (particularly around freeing up spectrum and easing the burden on cell site deployment) this type of country-vs-country rhetoric is understandable. And against the backdrop of rising global tensions around tariffs, immigration, trade sanctions and even espionage, it’s probably not surprising that some degree of international 'us vs. them' would eventually creep into telecom. Telecom doesn’t exist in a vacuum. But at a very fundamental level, the notion that one country or region being first with 5G would irreparably damage another falls flat on a few fronts. Where Operators Compete: Multi-national operators may compete across borders, sure, but most competition takes place inside national boundaries. China Unicom competes against China Mobile. It does not compete, directly, against Telefonica or MTN or AT&T. If 5G comes early, or late, to one market, it won’t change this dynamic. Where Suppliers Sell: Absent trade embargos or super-onerous tariffs, the software and hardware suppliers that benefit from new wireless technologies sell their wares globally. Samsung sells phones in Korea and the US. Apple sells phones in the US and China. Europe might have lagged on 4G, but two of the three largest LTE infrastructure vendors live there. Even if one country or region wins the race to 5G, that doesn’t mean companies on the outside can’t benefit. Finishers vs. Winners: The late, great US NASCAR racer Dale Earnhardt is often credited with popularising the saying, “2nd place is just the first place loser.” But even the first loser gets to finish the race. In this case, they’d still come away with a 5G network; their citizens would still benefit from everything 5G can deliver, even if they aren’t among the first to do so. The last point is particularly important. It’s important because, ultimately, there is a kernel of truth to the notion of national winners and losers in the Race to 5G. Imagine the theoretical case of Country A and Country B. 'A' is quick out of the gate with 5G and after a few years has multiple, national 5G networks delivering on the mind-blowing eMBB, IoT and Critical Communications capabilities we’ve all been promised. Meanwhile, 'B' can’t seem to build the same momentum. Whether due to strained operator spending, a lack of spectrum, disruptive small cell policies or an inability of operators to fully monetise 5G (or any number of other things) years go by and B struggles with building significant 5G momentum. Here, we could rightly expect A to benefit from 5G innovations to the detriment of B. Leveraging the capabilities of 5G, A would see the development of innovative services, applications and devices that simply couldn’t exist in B. Think new IoT devices, new consumer apps, new specialists in industrial automation. And as 5G does develop elsewhere, these companies can take the learnings and scale and be successful globally, with a massive (potentially insurmountable) lead over B. Meanwhile, yep, the race to 5G is about more than 5G; it’s about everything 5G will enable, the benefits it will being, and who will be able to best exploit them in their own country and beyond. Putting aside the fact that companies are, generally, allowed to operate globally (companies from B could do business in A if they want to take advantage of 5G’s capabilities), the major problem here is that the scenario I outlined assumes a massive lag in 5G deployment. One of the competitors needs to win the race by a wide margin. Would a five year gap be enough to irreparably harm B? One year? Two years? Six months? It’s not clear that there is a solid answer. Here, recent comments out of Huawei may be worth noting [3]. A belief that 5G has been over-hyped and that, early on, 5G won’t deliver much that LTE cannot, has real implications for handicapping the race. It suggests that losing the race by a somewhat narrow margin might not matter much at all. The editorial views expressed in this article are solely those of the author and will not necessarily reflect the views of the GSMA, its Members or Associate Members. [1] [https:] [2] [https:] [3] [https:]
8:37
Thailand 1.8GHz auction date decided
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A long-running saga over the timing of an auction of 1.8GHz spectrum in Thailand looks to be at an end, after the country’s acting telecoms regulator settled on a date for the process. The acting board of the National Broadcasting and Telecommunications Commission (NBTC) scheduled the auction for 4 August after approving draft terms, Bangkok Post reported. However, a related auction of 850MHz spectrum remains up in the air, with no date set. A sale of 1.8GHz spectrum faced several delays due to concerns over the authority of the current NBTC board [1] to conduct an auction. The process is now clear to proceed after the Council of State backed the current board following a decision by Prime Minister Prayut Chan-o-cha to block the selection of new NBTC commissioners, the newspaper stated. The much anticipated sale was again delayed last month after a commissioner suggested auctions couldn’t be held until a new board was in place [2] later in the year. An original draft of the planned auctions was approved by the NBTC board in December 2017 [3]. But a revised plan drafted in January, calling for the number of slots offered in the 1.8GHz band to be increased from three to nine to make the sale more competitive, stalled the process. [1] [https:] [2] [https:] [3] [https:]
7:44
MVNO FreeUp Mobile targets 5% of US prepaid market
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New MVNO FreeUp Mobile is hoping to disrupt the US prepaid market with a rewards-based system which cuts the monthly cost of wireless service. Similar to programmes offered by providers including Boost Mobile, FreeUp Mobile allows users to earn discounts on their service fees by completing specific tasks, such as watching a video, playing a game or taking a survey. But in an interview with Mobile World Live, founder and CEO Rod Nakjavani noted FreeUp Mobile also partnered with national retailers and bank card issuers to offer users rewards for purchases made at certain outlets. The goal of this blended set-up, Nakjavani said, is to provide a diversified programme which appeals to people with varying time and monetary constraints. In its sights are price-sensitive consumers, including millennials and existing prepaid consumers, looking for alternatives to their current provider. Within the next two to three years, FreeUp Mobile aims to snag 5 per cent or more of the prepaid market, or somewhere between 3 million and 5 million customers, Nakjavani said. He added FreeUp Mobile could also be an option for some of the more than 10 million subscribers using the Federal Communications Commission’s Lifeline programme, which provides subsidies for wireless service. Offer FreeUp Mobile currently offers a choice of four wireless tariffs, ranging from $10 to $40. Nakjavani said testing indicates users can earn enough rewards to cover the full $40 tariff, though the average customer is expected to earn around $25 per month. He added rewards can be shared or rolled over to the next month if unused. Even with its users earning free mobile service, Nakjavani explained FreeUp Mobile will be able to generate revenue via small margins on the plan costs and rewards system. FreeUp Mobile is a cellular-first service, offering supplemental Wi-Fi coverage via a network of 4 million hotspots. Nakjavani declined to name the company’s operator partner, but clues – including a GSM requirement for BYOD phones – point to AT&T.
6:17
Bharti Airtel seals Infratel, Indus Tower deal
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Bharti Airtel agreed a deal to combine its tower business Bharti Infratel with Indus Towers, a move it said will create the world's largest tower company outside of China, with an enterprise value of INR965 billion ($14.4 billion). In a stock exchange filing, Airtel said the combined company will operate 163,000 towers across India. It will operate under the Indus Towers name and will continue to be listed on the Indian stock exchanges. Airtel and Vodafone will jointly control the combined company. The deal is subject to regulatory and other approvals and is expected to close before the end of the financial year ending 31 March 2019. Infratel holds a 42 per cent stake in Indus Towers, one of the largest tower companies in the world. The remaining shares in Indus are held by Vodafone India (42 per cent), Idea Cellular (11.15 per cent) and Providence Equity Partners (4.85 per cent). At the end of 2017, Infratel owned and operated 39,363 towers with 92,211 co-locations in 11 service areas, while Indus operated 122,962 towers with 288,727 co-locations in 15 areas. The companies had combined revenue of INR253 billion in the financial year to 31 March 2018. Options Vodafone will be issued with 783.1 million new shares in the company in exchange for its 42 per cent holding in Indus. The merger gives Idea the option to sell its stake in Indus for INR65 billion or receive new shares in the combined company based on the merger ratio. Providence was given the option to receive cash or shares for 3.35 per cent of its 4.85 per cent shareholding in Indus, with the balance exchanged for shares. Local media reported in October 2017 Infratel was looking [1] to acquire either most or all of the 58 per cent stake in Indus it didn’t own. The move was expected to cost $5.5 billion to $6.5 billion and be conducted as “a leveraged buyout that will largely be funded out of the reserves and cash flow of Indus Towers”. If the purchase moved ahead, a consortium led by US private equity company KKR was set to increase its interest in Infratel from 10 per cent to around 45 per cent, becoming the single largest shareholder in a move which would have shaken up India's infrastructure market. At the time, KKR faced competition from Canada-based Brookfield Asset Management, which was also pursuing Indus after a tower deal with Reliance Communications fell through [2]. Latest results Infratel reported a 1.5 per cent year-on-year increase in net profit for the January-March period to INR6.06 billion, on consolidated revenue of INR36.6 billion, up 4 per cent from the comparable 2017 period. Consolidated revenue for the fiscal year ending 31 March rose 8 per cent year-on-year to INR144.9 billion. [1] [https:] [2] [https:]

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