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February 21, 2019
22:40
Mobile Mix: Samsung sets foldable battle line as MWC19 nears
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We're all set and ready for MWC19 Barcelona, as our team gives their top picks on what they are most looking forward to from the show, including keynotes, 5G and devices. Speaking of devices, Samsung played its hand early this year, and Kavit reports from its big London event, where the company unveiled a €2000 foldable phone and a new S10 range.
19:03
Verizon offers glimpse at mobile 5G plan
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Verizon revealed it will launch standards-based mobile 5G service in more than 30 US cities in 2019, offering the first concrete detail about its forthcoming deployment. While the operator provided little additional information about the launch, declining to name specific cities or detail pricing, a Verizon representative confirmed the network will use its mmWave spectrum assets. The representative also verified its mobile network will launch with three compatible devices: the new Samsung Galaxy S10 5G [1]; the Moto Z3 with 5G Mod [2]; and Inseego’s MiFi 5G mobile hotspot. Verizon didn't set a timeline for the roll out, but CTO Kyle Malady said in a press release the operator's customers will be "the first in the US to get Samsung’s 5G smartphone on our 5G Ultra Wideband network" sometime in the first half of 2019. The mobile launch follows Verizon's launch of fixed wireless access (FWA) 5G service [3] in four cities in October 2018. Service packages range from $50 to $70 per month. Rival AT&T rolled out its mobile 5G network [4] in December 2018, offering the service to select customers in 12 cities at a cost of $70 per month for 15GB of data. [1] [https:] [2] [https:] [3] [https:] [4] [https:]
18:11
La Nouvelle-Zélande va réexaminer les restrictions contre Huawei
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Jacinda Ardern, Première ministre de Nouvelle-Zélande, laisse entendre que Huawei pourrait continuer à jouer un rôle dans la construction du futur réseau 5G du pays, après avoir indiqué le lancement d’une évaluation indépendante des risques liés à l’utilisation du matériel fabriqué par l’équipementier chinois. Fin novembre 2018, le Government Communications Security Bureau (GCSB) néo-zélandais avait refusé à l’opérateur Spark la permission de déployer du matériel Huawei dans un réseau 5G, décision justifiée par des risques significatifs pour la sécurité nationale. Les opérateurs sont tenus de présenter aux services de contre-espionnage nationaux leur approche en matière de déploiement de la 5G. Jacinda Ardern a précisé qu’aucune décision finale n’était prise et que le gouvernement travaille sur le dossier, signifiant que Huawei pourrait rester en course si Spark parvient à apaiser les préoccupations du GCSB, rapporte Bloomberg. L’annonce de la Première ministre suit la publication d’un rapport par le National Cyber Security Centre britannique suggérant qu’il est possible de limiter le risque lié au matériel Huawei dans les réseaux 5G, ce qui rendrait une interdiction superflue. Un rapport officiel du gouvernement britannique à ce sujet doit être publié en mars ou avril. La Nouvelle-Zélande est membre du réseau de renseignement Five Eyes, aux côtés des États-Unis, de l’Australie, du Canada et du Royaume-Uni. Jacinda Ardern a ajouté que si les membres de l’organisation partagent des informations, son pays prendra sa décision après avoir conduit sa propre enquête, selon Bloomberg. Les restrictions imposées sur le matériel Huawei par la Nouvelle-Zélande sont intervenues trois mois après la décision australienne d’interdire aux équipementiers chinois de participer au déploiement du réseau 5G local.
18:10
Une étude britannique minimise le risque lié à Huawei
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Une agence de renseignement britannique estime qu’interdire l’utilisation de matériel Huawei dans le déploiement de la 5G est injustifié, information qui devrait redonner de l’air au constructeur chinois, accusé par Washington de faciliter l’espionnage au profit du gouvernement de Beijing. Citant des sources bien informées, le Financial Times explique que l’enquête du National Cyber Security Centre (NCSC) conclut qu’il est possible de limiter les risques liés à l’utilisation du matériel Huawei dans le déploiement de la 5G outre-Manche. Bien que ces informations restent à confirmer, un représentant du NCSC a expliqué à Mobile World Live que son organisation bénéficiait d’une compréhension unique de l’ingénierie et des mesures de cybersécurité propres à l’équipementier, ajoutant que le Centre se pose des questions sur l’équipement en cause et qu’il a préparé une liste d’améliorations qui, espère-t-il, seront pris en compte par le fabricant. Le NCSC participe à la rédaction d’un rapport officiel du gouvernement sur l’opportunité de déployer du matériel Huawei dans les réseaux 5G britanniques. Le document est attendu en mars ou avril. Certaines sources citées par le FT indiquent que les conclusions du NCSC « pèseront lourd » auprès des décideurs européens, le Royaume-Uni ayant accès à des informations confidentielles partagées par les services américains dans le cadre du réseau de renseignement Five Eyes, auquel participent en outre les Australiens, les Canadiens et les Néo-Zélandais. Tous les pays impliqués dans ce réseau ont décidé de restreindre voire d’interdire la participation de Huawei, mais aussi de ZTE, aux déploiements 5G. Les États-Unis font pression sur leurs alliés pour les obliger à adopter leur position, affirmant que le matériel Huawei offre des accès dérobés qui permettent aux Chinois d’espionner les autres nations. Huawei nie depuis longtemps que de tels accès existent. Mais Washington affirme que la 5G va être impliquée dans une quantité d’applications militaires et que l’utilisation de matériel chinois présente de ce fait des risques très élevés. Selon le FT, les Britanniques et les Allemands ne semblent pas convaincus par les arguments américains. « D’autres nations peuvent se dire que si les Britanniques pensent que le risque sécuritaire est atténué, ils pourront également rassurer leur public et l’administration américaine en montrant qu’ils agissent de façon prudente en persistant à autoriser leurs fournisseurs de services de télécoms à employer des composants chinois tant qu’ils prennent le type de précautions recommandées outre-Manche », commente une source du FT.
18:09
La FTC menace Facebook d’une amende de plusieurs milliards de dollars
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La Federal Trade Commission (FTC) pourrait réclamer à Facebook plusieurs milliards de dollars de pénalités suite à l’enquête réalisée dans le cadre du détournement de données privées par Cambridge Analytica l’an passé, selon le Washington Post. Si les pénalités sont confirmées, elles représenteraient un nouveau record outre-Atlantique, bien au-delà des 22,5 millions de dollars infligés à Google en 2012 pour n’avoir pas respecté ses engagements vis-à-vis du régulateur américain. En 2011, Facebook a signé un accord avec la FTC jurant de mieux protéger les données relatives aux utilisateurs suite aux accusations selon lesquelles le géant des médias sociaux avait manqué à ses promesses en la matière. Quand la nouvelle du détournement de données par Cambridge Analytica a été publiée en mars 2018, des membres du Congrès ont demandé à la FTC de voir si Facebook avait violé cet accord. Dans la foulée, la commission a ouvert une « enquête confidentielle » sur l’incident. Facebook a confirmé au Washington Post que des discussions avec la FTC sont en cours, mais sans donner plus de précisions. Une amende à cette échelle infligée à une entreprise de technologie ne serait pas une première. Les autorités antitrust européennes ont réclamé en juillet 2018 à Google la somme de 4,3 milliards d’euros pour abus de position dominante. Si la FTC et Facebook ne parviennent pas à s’entendre, le régulateur aurait toujours la possibilité de lancer des poursuites en justice contre Facebook.
18:07
Vincent Bolloré va quitter le conseil de surveillance de Vivendi
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Le groupe français Vivendi, principal actionnaire de Telecom Italia, a annoncé que le milliardaire Vincent Bolloré (66 ans) souhaitait céder en avril à son fils Cyrille (33 ans) son fauteuil au conseil de surveillance. Les actionnaires de Vivendi doivent maintenant entériner ce remplacement par un vote qui aura lieu à la mi-avril. La décision intervient un an après la décision de Vincent Bolloré de confier la présidence du conseil à un autre de ses fils, Yannick (39 ans). Le départ de Vincent Bolloré doit avoir lieu deux semaines après une réunion extraordinaire des actionnaires de Telecom Italia, où Vivendi doit réclamer le remplacement de cinq des membres du directoire de l’opérateur. La saga sur le contrôle de Telecom Italia dure depuis des mois. Vivendi a perdu les rênes du directoire en 2018 au profit du fonds d’investissement Elliott Management et ne cesse depuis de vouloir reprendre les commandes. Telecom Italia n’est pas la seule entreprise dans laquelle Vivendi ait investi à se retrouver sous les feux de l’actualité, le groupe tentant de vendre 50 % d’Universal Music Group.
17:25
Apple looks to loans to boost iPhone in China
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Apple teamed with payment giant Alipay to offer consumers in China interest-free financing for its iPhones and other products in a bid to boost sales in the county, The Wall Street Journal reported. The offer, which ends on 25 March, will be available for device purchases of $595 or more and allow consumers to pay back the total in monthly instalments over the course of two years. Apple reportedly offered a similar deal at its physical retail locations in the country last month, but the partnership with Alipay will significantly extend its reach: the payment company has more than 700 million active users in China. Separately, Apple is also offering discounts to Chinese customers who trade in an old iPhone when purchasing a new device. Apple aims to revive flagging sales in China after weakness in the country dragged overall revenue down [1] 5 per cent year-on-year in the three months to 29 December. Greater China accounted for 15.6 per cent of the company’s total revenue in the quarter, down from 20.3 per cent in the comparable period of 2017. On an earnings call in January, Apple CEO Tim Cook bemoaned the decline of device subsidies from operators across the globe, but said the company was working to address cost concerns by making instalment payments and trade-in deals available in more markets. [1] [https:]
17:08
Trump calls for faster US 5G rollout
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US President Donald Trump (pictured) urged operators to pick up the pace of 5G deployments, warning the country risks being left behind if companies don’t work faster. In a pair of posts on Twitter, Trump pressed for the rollout of “5G, and even 6G, technology in the United States as soon as possible”. He called on the mobile industry to “step up their efforts,” adding “there is no reason that we should be lagging behind on something that is so obviously the future”. Of the four major US operators, Verizon and AT&T already launched limited 5G service, while Sprint and T-Mobile US have plans to deploy the technology later this year. The president also made what appeared to be a reference to government concerns about the 5G supply chain [1]: “I want the United States to win through competition, not by blocking out currently more advanced technologies.” Earlier this month, The Wall Street Journal reported the Trump administration is considering how to encourage more domestic 5G suppliers to enter the market as part of an effort to counter Chinese investments in advanced technologies. The missives aren’t the first time Trump has spoken out on 5G. In December 2017, he designated 5G as a national priority [2] and in October 2018 pushed government agencies to free up more spectrum [3] for next generation deployments. [1] [https:] [2] [https:] [3] [https:]
16:57
Orange Money base approaches 40M
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Orange’s Africa-focused mobile money operation ended 2018 with 39 million customers, a 15 per cent year-on-year increase, while user numbers for its French bank continued to steadily grow. In its annual financial results report [1], Orange said the proportion of Orange Money users in Africa and the Middle East who were regularly active on the platform had also increased during the year. At end-December 2018 its "active user" percentage was 39 per cent, compared with 35 per cent at the end of 2017. Active users are defined as accounts which have made at least one transaction each month. Increases in the performance of its money operation, in addition to growing adoption of data, were credited with driving growth in the company’s consumer business in Africa and the Middle East. While its financial service operation in Africa is part of its core proposition, in Europe its role in financial services is still a developing area of the company. The operator plans to launch Orange Bank in its second market of Spain this year, after launching in France [2] in November 2017. In its financial results statement, Orange chairman and CEO Stephane Richard (pictured) said the service had already attracted “nearly 250,000” users. Orange Bank is aiming to sign-up 4 million customers to financial services in Europe by end-2023, when it expects to have expanded [3] Orange Bank to a number of other countries. [1] [https:] [2] [https:] [3] [https:]
15:47
VoLTE Provides Inspire Voice Experience
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We have witnessed an accelerated increase in worldwide commercial deployment of VoLTE since 2016. According to the statistics from GSA, the number of commercial VoLTE networks reached 176 by the end of 2018, with 50 networks rolled out in 2018 alone. More than 100 operators are currently investing in VoLTE and preparing to launch commercial VoLTE service nationwide. By 2021, the world will have over 300 commercial VoLTE networks. LTE Will Replace 2G and 3G as the Foundation Network in the LTE Evolution Era. Why has VoLTE commercialization dramatically accelerated in the past two years? The dramatic growth of VoLTE is an outcome of the increasingly mature VoLTE industry chain. The industry chain has made substantial advancements in networks, terminals, and value exploration to support continuous evolution. Currently, 2G, 3G, and LTE networks coexist. Their operating expense (OPEX) accounts for more than 60% of the total cost operation (TCO) for operators. After 5G is put into commercial use, if all of the four types of networks are deployed for a single operator, the OPEX will be even higher. To improve operation efficiency, 2G and 3G networks will be gradually shut down with the voice, data, and IoT services being migrated to LTE networks, which feature better spectral efficiency. Network simplification is the way of future. Dozens of operators, such as AT&T in the US, Vodafone in Australia, and TELUS, Bell in Canada, M1,Singtel,StarHub in Singapore have shut down their 2G networks. Most other operators have released network shutdown plans. The years from 2020 to 2025 will witness large-scale shutdown of 2G and 3G networks. LTE serves huge number of subscribers and provides most of the traffic and services. It is still the main revenue source for operators. Strategy Analytics forecast shows that by 2022, LTE will contribute to 80% of operators' mobile communication revenue. In particular, mobile voice services will still be a major cash cow for operators. VoLTE, as an evolved voice technology, offers ultimate voice and video service experience and will create greater business value for operators. In the LTE evolution era, LTE will replace the 2G and 3G networks as the foundation network. According to 3GPP specifications, VoLTE will become a fundamental technology for Mobile voice calls. Although LTE has developed for nearly 10 years, and the LTE coverage is not as good as that of 2G networks. Insufficient coverage causes LTE subscribers to fall back to the 2G or 3G networks, resulting in significant user experience changes. It also leads to congestion on the 2G and 3G networks and makes it difficult to release spectrum used by 2G and 3G. To achieve zero fallback, operators can make refarm low frequency bands, fill coverage holes, and take other measures to ensure wider coverage in rural areas and deeper coverage in urban areas. by this way, the 2G and 3G spectrum resources can be released to ensure that data, Voice, and IoT services always camp on the LTE network and will never fall back to the 2G or 3G network. This also encourages the 2G and 3G subscribers to migrate to 4G networks. In the future ,VoLTE will definitely become a necessity for constructing an intelligent, simplified, and reshaped target network, an LTE+NR network. Continuous VoLTE Evolution Enables a New Era of HD Voice and Superior Experience. The VoLTE solution evolves from circuit switched (CS) to all-IP VoLTE networks to provide HD voice, HD video, and rich media services for subscribers. This solution retains and consolidates voice services to help operators construct a future-proof network. Improved spectral efficiency VoLTE can provide additional benefits by accelerating spectrum refarming and subscriber migration. The spectral efficiency of VoLTE is twice to four times that of 2G and 3G networks. This indicates that only a limited amount of spectrum is required for voice service provisioning. The remaining precious spectrum resources can be allocated for 4G data, IoT and a multitude of other new services to increase operator revenue. Enhanced coverage Voice service provisioning remains one of the core tools at an operator's disposal to maintain a competitive edge. Already over 60% of the world's population is covered by 4G networks. The 4G penetration rate has remarkably exceeded 95% in a number of developed areas. The rapid growth of 4G networks has offered a favorable network foundation for nationwide large-scale commercial deployments of VoLTE. Currently, there are 18 operators who have more than a million VoLTE subscribers and keep attracting more subscribers. By December 2018, the number of VoLTE subscribers in China has exceeded 330 million. Huawei has launched the VoLTE Plus solution that incorporates transmission time interval bundling (TTI bundling), VoLTE coordinated multipoint transmission/reception (VoLTE CoMP), and other significant features to help operators establish top-quality VoLTE networks with enhanced coverage. The commercial networks in Sweden and Canada show that the VoLTE network offers better coverage than the intra-frequency UMTS network and VoLTE achieves a mean opinion score (MOS) much higher than the UMTS in terms of voice services. HD voice for superior experience The HD voice services offered by VoLTE are much better than GSM or UMTS voice services. The VoLTE call delay is less than 1/3 of CS call delay in GSM or UMTS networks, greatly improving user experience with voice services. VoLTE can provide high value services in addition to plain voice, such as EVS HD voice, H.265 HD video, rich media (RCS, UC, and CaaS), multi-screen and multi-device services. With VoLTE, subscribers enjoy superior communications service experience. The Huawei VoLTE Plus solution not only improves the VoLTE coverage but also ensures VoLTE voice quality in strong-interference, heavy-traffic, and other typical scenarios. This helps operators build an optimal VoLTE network meeting the requirements of "three Always", that is, Always On LTE, Always On MOS4.0, and Always Online. Coverage and voice quality are the most important factors in meeting these requirements. Easy deployment The Huawei VoLTE solution has little impact on the existing network, such as CS and IT system. VoLTE networks can be flexibly and quickly deployed to be adapted to terminals. The solution helps operators rapidly roll out commercial VoLTE networks and develop significant brand influence. The Rapidly Growing Industry Chain for Commercial VoLTE Terminals Becomes Increasingly Mature. With the rapid development of the industry chain for commercial VoLTE terminals over the past two years, VoLTE is no longer exclusive to mid-range and high-end terminals. VoLTE can now be easily found in a vast number of entry-level terminals. There are up to 1892 entry-level, mid-range, and high-end VoLTE-capable commercial terminal models and 29 VoLTE-enabled chip models worldwide. VoLTE mobile phones account for over 40% of the international shipment of 4G terminals. As predicted by Counterpoint, a third-party consulting firm, VoLTE feature phones will secure a dominant position in the basic voice communication market, with a shipment of over 500 million over the next five years. The reasonably priced VoLTE feature phones receive popularity among voice service consumers for their simplified functions and easy-to-use experience, perfectly meeting the communications requirements of these consumers. The large-scale shipment of VoLTE feature phones assists operators in migrating 2G and 3G subscribers to 4G networks, creating room for quicker spectrum refarming. Chen Chuanfei, Product Director of Huawei LTE FDD Product Line, said, "VoLTE can fully utilize the spectrum of LTE and provide better and diverse voice services to support continuous evolution. It has been widely recognized as the ultimate voice solution in the LTE business connected network. Huawei will continue to focus on customer strategies and pain points and provide more competitive VoLTE Plus solutions. We aim to help operators build high-quality networks providing superior coverage and user experience, maximize spectrum value, and achieve greater business success."
14:32
O2 UK unveils 2019 5G launch plan
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O2 UK detailed plans to switch-on 5G in four cities before the end of 2019, meaning all four of the country's operators have now confirmed a target of commercial availability in some areas this year. In a statement, the operator said Belfast, Cardiff, Edinburgh and London would be the locations of its initial launch, with the remainder of the country receiving the service from 2020. BT-owned EE aims to have 16 cities live with 5G [1] by the year-end, while Vodafone UK has committed to a timeline, without detailing a list of specific locations. 3 UK aims to have 5G available this year and a number of trials are already underway, though the speed and scale of the rollout have not been disclosed. Last month O2 and Vodafone expanded an existing UK network sharing partnership [2] to include 5G, to speed deployment and lower the cost of rollout. Business bid Alongside the launches, O2 is expanding its “5G innovation spaces” in its start-up hubs, to allow trials on a number of industrial applications of the technology. The operator has been talking-up the importance of 5G to the country’s enterprises and public sector, and previously tipped the technology to deliver a £6 billion boost to the country’s economy [3]. CEO Mark Evans said O2 is “working in partnership with British industry, encouraging businesses big and small to engage with the possibilities of 5G technology through both our testbed programme and launch deployment.” [1] [https:] [2] [https:] [3] [https:]
14:27
Nokia assesses operator 5G readiness
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A Nokia study found that two-thirds of operators expect next-generation 5G networks to create new revenue streams, while more than 70 per cent are focused on using the technology to improve existing consumer services. The Finnish vendor said in a statement that its 5G Maturity Index, produced in partnership with Analysys Mason, was designed to provide operators with best practices for planning and deploying 5G services. With 66 per cent of the 50 operators surveyed identifying 5G as a potential new revenue stream driver, the most popular use cases identified included multi-gigabit mobile connectivity; connected cars and autonomous vehicles; critical healthcare monitoring; and smart home services. Operators most advanced in their 5G transformation are focused on six to eight use cases in total. Plenty of ambition Nokia said most operators planned a limited commercial launch of 5G services by 2019 or 2020, with those planning early launches furthest ahead with network virtualisation and cloud-based deployments. Operators “rated as the most advanced in 5G” closely align their technology and business development, and link digital transformation with 5G. Guidance Caroline Gabriel, founder of Rethink Wireless and senior contributor to Analysys Mason's research, said it was clear operators “have plenty of ambition for 5G”. “Many also understand that its impact will be far stronger if it is deployed hand-in-hand with platform transformation in order to support a wide array of new revenue streams,” she added. Gabriel said the 5G Maturity Index enables operators to "plot their own 5G progress against an objectively assessed index”. Sanjay Goel, president of Global Services at Nokia, said the research assessed operators' readiness for 5G: "Their answers provide valuable insights into the best practices for operators as they design, deploy and operate 5G networks and services." Nokia added the company is working with all major operators in lead 5G markets of North America, South Korea and Japan, with the research also contributing to its own product development.
13:52
Sunrise to launch 5G next month
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Sunrise detailed plans to introduce 5G services in 150 Swiss cities and villages Switzerland by the end of March, just a fortnight after it was awarded [1] 5G radio frequencies by the Federal Communications Commission (ComCom). From mid-March, around 100 selected 5G residential and business customers will be able to use the service, dubbed 5G for People. It will include high-bandwidth internet via a SIM-enabled plug-and-play device named Sunrise Internet Box 5G. “With 5G, we want to close the digital divide between urban and rural areas, which is particularly important for business customers and SMEs based outside city centres,” CEO Olaf Swantee said in a statement. “Along with South Korea, Japan, the USA and China, Switzerland is one of the first countries in the world to launch 5G,” he added. Sunrise explained that only about 30 per cent of households and SMEs in Switzerland currently have access to a fiber-optic connection. The remainder “have to deal with hybrid solutions (a mix of fiber-optic and copper network) or slower DSL connections and are moving at a snail's pace in the digital age". The operator stated its focus on deploying 5G in suburban and rural areas will help close "the digital divide between these and urban areas". ComCom completed an auction of 5G radio frequencies earlier this month, with Swisscom, Sunrise and Salt paying a total of CHF380 million ($380 million) for 15-year licences. [1] [https:]
13:20
DT chief bemoans 5G auction uncertainty
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Deutsche Telekom CEO Timotheus Hoettges (pictured) warned the operator would be unable to meet the coverage target timescales set out in Germany’s 5G auction terms, while stating uncertainty was counterproductive to a process already lagging several other countries. On the company’s Q4 2018 earnings call, Hoettges reiterated criticism some of the 5G auction terms imposed by regulator Bundesnetzagentur were unrealistic. “We won’t be able to set up all the required cell sites within the required time window defined by the regulator." "We are also not satisfied by the regulations on national roaming as we don’t know under what conditions we are supposed to set up these cell sites.” Earlier this week, Vodafone Germany joined Telefonica Germany in filing urgent legal motions [1] in a bid to delay the auction. This was in addition to court action taken by all three operators at the start of the year [2] against the terms. Germany's auction of 5G-suitable frequencies is scheduled to begin next month [3] with the three existing operators and fixed company United Internet officially applying to take part. Hoettges noted the uncertainty surrounding the auction was “counter-productive" adding: "We have taken legal action against the legal terms imposed on the auction. O2 and Vodafone have filed urgent motions in relation to the imminent spectrum auction, we’ve refrained from doing that but have filed an urgent motion about the terms of the auction.” Sprint deal While an ongoing row with regulators in its home market continues unabated, the executive said the company had made a “lot of headway” with US authorities in trying to get approval for merging its operation in the country [4] with SoftBank’s Sprint. The combined business will operate under the T-Mobile brand and be controlled by Deutsche Telekom. Hoettges said he remained confident the deal would be cleared, though warned there had been a minor delay in proceedings due to a US government shut-down at the start of the year. Figures The operator group swung from a net profit of €1.3 billion in Q4 2017 to a loss of €431 million in the same period of 2018. It said comparisons had been impacted by one-off tax gains in its US operation at the end of 2017 [5] along with other accounting and tax-related changes. Revenue across its operations in Q4 2018 was up 5.7 per cent year-on-year to €20.3 billion. For the full year, Deutsche Telekom generated net profit of €2.1 billion, down 37 per cent year on year. Revenue was €75.7 billion, up 0.9 per cent. [1] [https:] [2] [https:] [3] [https:] [4] [https:] [5] [https:]
13:02
Millicom moves on Telefonica Central America units
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Millicom agreed a deal to acquire Telefonica’s operations in Panama, Costa Rica and Nicaragua for $1.7 billion, as it looks to increase its footprint in the region and diversify revenue sources. In a statement, the company said the deal “represents a perfect complement” to its existing cable network operations in the three countries. It added the acquisitions will reinforce its market leadership in the region and build on a recent acquisition of Cable Onda [1] in Panama. Millicom added the move will diversify and balance its geographic footprint and sources of cash flow. It expects to generate annual run-rate opex and capex synergies of $35 million to $50 million, expected to be “largely realised by 2021 and fully realised by 2023.” Telefonica is the mobile market leader in Panama and Nicaragua, and the second-largest in Costa Rica, Millicom said. Reports in 2018 suggested Telefonics was open to selling its entire Central America operation [2]. Last month, it confirmed an agreement to sell its Movistar operations in Guatemala and El Salvador [3] to America Movil for $648 million. In a statement about the Millicom deal, Telefonica said: "This transaction is part of the Telefonica Group’s asset portfolio management policy based on a strategy of value creation, improving return on capital and strategic positioning." "It also complements the objective of organic debt reduction and strengthening the balance sheet in a growing cash flow scenario, which allows us to maintain a sustainable and attractive shareholder remuneration." The Millicom deal is subject to regulatory approval in each market, and closings are expected during H2. [1] [https:] [2] [https:] [3] [https:]
12:30
Telefonica touts turnaround efforts as Q4 profit falls
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Telefonica chief Jose Maria Alvarez-Pallete (pictured) hailed a significant milestone in a transformation programme during 2018, as the company reported mixed numbers for the year. The executive said Telefonica "passed the halfway mark" in its makeover and had “regained customer relevance, resulting in the best-ever figure of customer satisfaction”. “Today I can assure you that Telefonica is closer to the company we want to be than to the company we were." The company reported a Q4 net profit attributable to shareholders of €610 million, down 11.9 per cent from €693 million. Revenue of €12.9 billion was 1.9 per cent lower. It cited factors including gains from hyperinflation adjustment in Argentina; the adoption of IFRS 15; tower sales; costs associated with restructuring; and a goodwill write-off in Mexico. For the full year, profit of €3.3 billion was up 6.4 per cent, with revenue of €48.7 million down 6.4 per cent. The company said revenue grew on organic terms for both the fourth quarter (3 per cent) and full year (2.4 per cent). Highlights included the fact it has more broadband customers on fibre or cable (61 per cent) than copper. It is also generating organic revenue growth in its home market of Spain for the first time in ten years, with record profitability in Brazil. In 2018, 26 per cent of revenue was generated in Spain; 21 per cent from Brazil; 15 per cent from Germany; 14 per cent in both the UK and Latin America south; and 8 per cent from Latin America north. The company also noted a €2.4 billion reduction of debt to €41.8 billion, with a further €1.4 billion-worth of deals in central America taking place after the end of the period. For 2019, Telefonica anticipates organic revenue growth of around 2 per cent, with OIBDA growth at the same level.
12:09
Orange takes cautious tone following 2018 gains
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Orange announced solid numbers for Q4 and 2018, although its outlook for 2019 was muted as several important markets remain tough. It said that a key indicator, adjusted EBITDA after lease, will grow more slowly than in 2018, due to a “market environment that remains very competitive, particularly in France and Spain.” [1]Stephane Richard, chairman and CEO (pictured, right), said: “2019 will be another year of growth and a pivotal one for the group, during which we will present our new strategic vision plan, Vision 2025.” The company said revenue from convergence propositions, which are marketed in all European counties, grew 6 per cent in Q4 and 10 per cent across 2018, which “enabled Orange to consolidate its position as the leading convergent operator in Europe”. In the full year, revenue from mobile services increased 1.3 per cent compared with a 1.2 per cent drop in 2017, which was attributed to an increase in customer numbers. But fixed-only service revenue declined 3.2 per cent due to the shift to convergent offers and a slowdown in fixed narrowband products. Revenue from IT and integration services grew 7.2 per cent in 2018, driven by cloud and security services in the enterprise market. Wholesale revenue decreased 1.5 per cent, affected by factors including declines in international voice and lower roaming, although Orange noted positive trends had returned in Q4. The company reported a Q4 adjusted EBITDA of €3.3 billion, up 2 per cent, on revenue of €10.8 billion, up 2.4 per cent. Orange does not provide quarterly net income figures. Boost For the full year, net income attributable to shareholders increased 6 per cent to €2 billion, on revenue which increased 1.3 per cent to €41.4 billion. The company said its profitability was boosted by a rise in operating income and improvement in finance costs following changes related to its holding in BT, although some of the gains were offset by an increase in tax. Net debt increased by €1.6 billion to €25.4 billion as a result of investment in “very high speed broadband networks” and a transformation of its Enterprise service offerings. The ratio of net debt to adjusted EBITDA from financial activities of 1.93-times was in line with Orange’s target of 2-times. Orange ended the year with 203.6 million mobile customers, up 0.6 per cent year-on-year, with a return to sales growth in the second half of the year. It had 10.9 million convergent customers, up 5.5 per cent, driven by “very strong growth in Europe”. [1] [https:]
11:54
GSMA hails rapid LPWA network uptake
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Low Power Wide Area (LPWA) networks are now globally available on licensed spectrum in 49 markets around the world following launches on both LTE-M and NB-IoT technology by 50 different mobile operators, the GSMA announced. In a statement ahead of MWC19 Barcelona, the mobile industry association provided an update on current uptake of LPWA, stating there have been 93 launches of NB-IoT and LTE-M networks so far, with coverage expected to reach 93 per cent of the world’s largest IoT markets by Q2. By 2025, GSMA Intelligence forecast there will be 3.5 billion cellular IoT connections, 1.9 billion of which will be on licensed LPWA technology. Breaking out the two major technologies, GSMA said there have been 68 NB-IoT launches in 45 markets and 25 launches of LTE-M networks in 19 markets. Upon initial launch of LPWA networks in 2017, NB-IoT proved to be the technology of choice in Europe while major players in North America pursued LTE-M. However, some operators have recently said they are also switching on LTE-M to run alongside NB-IoT, including European giants Vodafone Group [1] and Deutsche Telekom. [2] Alex Sinclair, CTO of the GSMA, said the speed at which the networks “have been standardised and deployed around the world is staggering”. “They are now available in every major IoT market encouraging the development of innovative new products and services across a wide range of sectors.” He added that the market clearly sees the benefits of solutions in licensed spectrum, which offer “flexibility, adaptability, security and lower cost”. “They are also future-proofed for the 5G era and will support and co-exist with other 5G technologies,” he added. [1] [https:] [2] [https:]
11:17
Telefónica vende a Millicom sus filiales de Costa Rica, Panamá y Nicaragua
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El grupo español Telefónica ha acordado este miércoles la venta a Millicom International Cellular de sus operaciones en otros tres países centroamericanos, por un importe total de 1.650 millones de dólares (al cambio, más de 1.450 millones de euros). Se trata del 100% de su filial en Costa Rica, por el que ha obtenido 503 millones de euros, y del 60% de Telefónica Panamá (valorado en 573 millones) y de Telefónica Nicaragua (379 millones). En los dos últimos casos el grupo presidido por José María Álvarez Pallete (en la foto) compartía la propiedad con la Corporación Multi Inversiones, que conserva su 40%. El grupo español estima que las transacciones respectivas quedarán formalizadas durante la segunda mitad del año en curso, y calcula que obtendrá con ellas unas plusvalías aproximadas de 800 millones de euros. Telefónica estaba presente en Panamá y Nicaragua desde 2004, mediante la compra de las filiales locales de la estadounidense Bellsouth. Asimismo, entró en el mercado costarricense en 2011. Con la venta de las tres filiales a Millicom, Telefónica completa la salida del mercado centroamericano que inició hace poco menos de un mes vendiendo sus operaciones de Guatemala y El Salvador, en aquel caso al grupo mexicano América Móvil propiedad de Carlos Slim. Los ingresos generados por las cinco operaciones suman unos 2.000 millones de euros, de los que Telefónica prevé dedicar 1.400 millones a reducir su endeudamiento, que el diario madrileño elEconomista cifra en 42.636 millones de euros a finales de septiembre pasado. La operación centroamericana se ha formalizado justo a tiempo para poder exhibirla en la presentación de sus resultados de 2018, comunicados este jueves y que registran un incremento del 6,4% en los beneficios, pese a una disminución del mismo orden en el volumen de facturación. Millicom incrementa su peso en Centroamérica Una vez formalizada la compra de los activos de Telefónica, Millicom, que opera bajo la marca Tigo, pasará a ser el primer operador de telefonía móvil tanto en Panamá como en Nicaragua. En Costa Rica, el grupo ostentará la segunda posición del mercado, por detrás de Kolbi (ICE), según datos de GSMA Intelligence.
10:35
Indonesia SIM registration takes toll on top 2
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The implementation of a government-mandated prepaid SIM registration effort in Indonesia had a heavy impact on the two largest operators in the country, as they shed a collective 69 million connections in 2018. Indosat Ooredoo was the biggest loser, dropping nearly 45 million connections year-on-year to end December with 65.4 million. It maintained its number two ranking despite its market share declining from 25 per cent in Q4 2017 to 18 per cent, GSMA Intelligence data showed. Market leader Telkomsel's connections fell by 25 million to 171 million, yet its market share rose from 45 per cent to 48 per cent. In contrast, number-three XL Axiata added more than 1 million connections year-on-year, taking its total to 54 million at the end of 2018 and boosting its share from 12 per cent to 15 per cent. Fitch Ratings said in a research note the impact of SIM registration had eased since Q3 2018 and operators have started to increase tariffs. However, it predicted continued pressure on operators' bottom-line, citing increased capex budgets related to 4G expansion as a factor. The agency stated Telkomsel had 50,755 4G base stations at end Q3 2018, XL Axiata 28,028 and Indosat 11,636.
8:22
Lenovo makes first mobile profit since Motorola buy
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China-based Lenovo’s Mobile Business Group posted a pre-tax profit in its fiscal Q3, the first since it acquired Motorola in 2014, despite a double-digit fall in revenue. In the three months to end-December 2018, the division recorded a pre-tax profit of $3 million compared with a $124 million loss in the same period of 2017. Revenue dropped 19.6 per cent year-on-year to $1.67 billion, which the company said was due to a move to focus on profitable growth in key markets. Lenovo attributed the turnaround to “masterful execution” on a strategy to reduce expenses [1], streamline its product portfolio and focus on core markets. North American volumes outgrew the market by a 40 points and China revenue quadrupled year-on-year, it said. PC and Smart Device business revenue increased 11.6 per cent to a record-high $10.7 billion. Along with the mobile division, the PC unit forms part of Lenovo's broader Intelligent Devices Group (IDG): it recorded a pre-tax profit of $586 million, up from $306 million in the 2017 quarter, on revenue of $12.4 billion, up from $11.7 billion. IDG revenue accounted for 89 per cent of Lenovo's total in the recent quarter, up 6 per cent year-on-year. Company-wide growth On a group level, the company recorded a net profit of $233 million, overturning a $289 million loss in the same period of 2017 when it was impacted by a one-off charge related to US tax reform. Group revenue in the quarter increased 8.5 per cent year-on-year to $14 million, its highest quarterly revenue for four years and the sixth consecutive quarter of year-on-year growth. Yang Yuanqing, chairman and CEO, said: “When we set out on our journey of intelligent transformation, our goal was to restore and then accelerate Lenovo’s business momentum, while providing our customers and partners with the best technologies in smart IoT, smart infrastructure and smart vertical solutions. We’ve done exactly that and more". "What I’m most pleased to see is how Lenovo is bucking the current industry trend – we’re strong, have delivered record-breaking results this quarter and are only getting stronger.” [1] [https:]
February 20, 2019
22:10
AT&T boosts Wi-Fi offload with Boingo
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AT&T extended a Wi-Fi roaming agreement with Boingo Wireless as part of a move to manage rapidly growing data traffic on its network. Boingo CEO David Hagan told Mobile World Live (MWL) a previous agreement between the pair connected AT&T to its Wi-Fi service in a handful of locations, but noted the operator will now have access to the “vast majority” of its Passpoint-certified network. Specifically, the new deal covers more than 80 sites including military bases, airports, stadiums and shopping centres. Passpoint is a standard developed by the Wi-Fi Alliance which makes Wi-Fi more like cellular connectivity, allowing users to connect to networks automatically and securely. In a statement, AT&T VP of tower strategy and roaming JR Wilson said the expansion is “part of AT&T’s strategic network management initiatives that help accommodate rising mobile data traffic”, which on its network has grown more than 470,000 per cent since 2007. Data demand Wilson told MWL AT&T "will continue to find ways to meet this demand" through a combination of network enhancements and third-party agreements. He added Wi-Fi offload is a particularly valuable tool for serving high-density venues during the busiest times of day. "To me it is not really an either-or choice, but rather a both-and approach that will be needed to meet the demand for data especially in these types of high-density venues." Hagan said data demand is impacting operators across the board, but added Wi-Fi offload offers a cost-effective option to manage the crush: “The price-per-bit on a Wi-Fi network is so much less expensive than on cellular technology that it’s kind of crazy that the carriers have not embraced it sooner.” The CEO said Boingo already has similar Passpoint deals with Sprint and cable-operator Charter Communications, and ultimately expects all four tier-one US operators will ink offload agreements. In a recent report [1], Cisco predicted 59 per cent of mobile data traffic will be offloaded to Wi-Fi by 2022, compared with 54 per cent in 2017. [1] [https:]
21:53
Samsung ushers in new era with Galaxy Fold, S10 5G
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Samsung jumped the queue and arguably raised the bar as rival manufacturers get set to launch new gadgets at MWC19 Barcelona, unveiling a foldable device and four smartphones in its Galaxy S10 range. The South Korean manufacturer, which unveiled the new line-up at events in London and San Francisco, opted to show its hand just a few days before the annual industry gathering in Barcelona kicks off. There were four new devices shown-off at the event in the Galaxy S10 range: the Galaxy S10; a higher-spec Galaxy S10+; the lower-tier Galaxy S10e; and the Galaxy S10 5G. Galaxy Fold But, the headline grabber was what Samsung described as a revolution for the smartphone market, a new foldable device dubbed Galaxy Fold. DJ Koh, president and CEO of Samsung's IT and Mobile Communications division, said the device represented the company's desire to "reinvent the smartphone from the ground up." The device was billed as both a smartphone and a tablet as its 4.6-inch screen folds out into a 7.3-inch display. By switching between the smaller and larger screen, users can access three apps at once, with an App Continuity feature custom-built for the foldable design. Apps can open up on the smaller display, and users can pick up where they left off when opening up the device to access the larger screen. The Fold's specs are also at the high-end. It packs an HD+ Super AMOLED display, 12GB RAM and 512GB storage, and a six-camera system. In a statement, Koh said: "Samsung is writing the next chapter in mobile innovation history by changing what's possible in a smartphone." Owning the next chapter in mobile innovation will, however, not come cheap. Samsung priced the device at $1,980 in the US and €2,000 in Europe. It will be available in certain markets from 3 May. The 5G era Coming to the new Galaxy S10 range, the company highlighted the fact it was now a decade since the launch of its first Galaxy S device, as it touted the new lines’ beefed-up capabilities in display, camera and performance. [1]And, ten years on, the company was keen to talk up the Galaxy S10 5G device, which it said "charts the path for Galaxy for the next ten years". The S10 5G is the biggest of the new foursome, sporting a 6.7-inch curved display. Samsung said the phone was designed bigger to enable consumers to take full advantage of 5G connectivity for streaming TV shows, gaming, and augmented- and virtual-reality experiences. There is one storage option, at 256GB and 8GB RAM. In terms of availability, the company said a number of operators, including Sprint, Vodafone and Deutsche Telekom, will carry the device when 5G launches later this year. A firm date or pricing was not revealed. Screens, cameras, storage The Galaxy S10e is the smallest of the four new devices, with a 5.8-inch full HD+ flat dynamic screen, while the Galaxy S10 sports a 6.1-inch, quad HD+ curved display. Although offering higher specifications, the Galaxy S10+ is slightly smaller than the S10 5G at 6.4-inches. It also packs a curved display. All four devices have been built with a “Dynamic AMOLED display”, as well as being the “first HDR10+” certified smartphones. The devices’ screens also pack an “array of sensors and camera technology”, including an in-display ultrasonic fingerprint scanner “that reads the 3D contours of your physical thumbprint”, providing extra security. When it comes to the camera, Samsung said it raised the bar with its new line-up, pointing to dual-pixel and dual-aperture firsts, along with enhanced artificial intelligence (AI) capabilities. The Galaxy S10 line offers an ultra-wide lens with a 123-degree field of view, as well as an AI camera that it said makes smart features more accurate via a Neural Processing Unit (NPU). Galaxy S10e packs a dual camera; the S10 and S10+ have triple cameras; and the S10 5G has a quadruple system. The S10+ offers the biggest option in terms of storage, with 1TB and up to 12GB RAM. It also has a 128GB and a 512GB option. The S10 comes with 128GB or 512GB of storage and the S10e offers 128GB and 256GB (RAM is 8GB in both cases). Another standout feature in the devices is the inclusion of the new Wi-Fi 6 standard [2], enabling better performance and speed. Galaxy S10e pricing starts at $749.99; the S10 at $899.99; and the S10+ begins at $999.99. Along with the new smartphones, Samsung also launched new wireless headphones, Galaxy Buds, as well as two fitness-focused wearables, Galaxy Watch Active and Galaxy Fit. [1] [https:] [2] [https:]
21:16
Syniverse launches 5G roaming hub
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Syniverse debuted a new roaming hub it said will allow operators to more quickly expand access to next-generation 5G and IoT services in new markets. "Mobile users not only want the widest roaming coverage possible, they want the same quality of experience at all times, and today that means 4G and, soon, 5G,” John Wick, SVP and GM for Syniverse’s Service Provider Group, said in a statement. He added the Open Connectivity Complete hub will help operators deliver "the highest level of roaming service to their customers while avoiding the significant amount of testing required" to establish individual agreements with global counterparts. The hub covers data, messaging and voice services on 5G, NB-IoT and LTE-M networks. It will also provide a dashboard from which operators can monitor the financial aspects of their agreements, including invoicing and payments, in real time. Sending the right signals Separately, the company announced it is working with customers to develop a new 5G signalling service to direct traffic on next-generation networks. Wick said the service will provide an “underlying connectivity model” to support 5G functionality at scale. The company launched a proof-of-concept version of the service, which it said offers improved performance and increased cost efficiency compared to legacy 4G and 3G signalling systems. Syniverse is aiming to release a commercial version of the product later this year.
17:57
AlipayHK chief targets mainland acceptance
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AlipayHK CEO Jennifer Tan outlined ambitions to allow seamless use of its app in mainland China, though noted a number of regulatory hurdles must be cleared first, China Daily reported. Tan said allowing users of the Hong Kong-specific Alipay application in mainland China, and even further afield, was something the company hoped to enable in the “near future”. However, she pointed to differences in regulation, foreign exchange issues and perceived concerns about money laundering as current stumbling blocks. AlipayHK falls under regulation from the Hong Kong Monetary Authority and processes transactions in Hong Kong Dollars, whereas the Alipay service in the rest of China falls under the watch of the People’s Bank of China and uses Chinese Yuan. The China version of the Alipay app, owned by Alibaba affiliate Ant Financial, can already be used in locations around the world including at retailers in Hong Kong. AlipayHK is a joint venture between Ant Financial and conglomerate CK Hutchison and is only able in its home market.
17:41
Alibaba linked to China propaganda app
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Alibaba developed an app in China which appears to propagate the message of the ruling Communist Party, Reuters reported. Xuexi Qiangguo, which translates into ‘Study to make China strong’, became the most popular product on the Chinese App Store, overtaking WeChat as well as Tik Tok’s local version Douyin, the publication said. The app has been downloaded over 43.7 million times on Apple and Android devices since its launch in January, consultancy Qimai estimated. This may be related to the fact that local governments and universities require party members to download the app. It was developed, and is maintained, by a team at Alibaba known as the Y Projects Business Unit, which deals with external projects. The app, which includes short videos, government news stories and quizzes, was built using DingTalk software. DingTalk is Alibaba’s messaging app and its credentials can be used to log into Xuexi Qiangguo. Reuters pointed out many Chinese tech companies have cooperated with the government including Tik Tok parent ByteDance and Tencent, adding Alibaba’s chairman Jack Ma is a member of the Communist Party. “The upside for these firms is that their track record of cooperation can put them in a better position to obtain key licences or opportunities,” Reuters quoted Mark Natkin, MD at Marbridge Consulting, as saying. However, he pointed out: “The downside is they may get tapped to participate in projects which, on economic or PR considerations alone they might normally eschew, but which may be uncomfortable or unwise to refuse.”
17:19
Rugged device maker arrives in Europe
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Durable smartphone maker AGM Mobile launched into the European market, starting in the UK, with a range of four models including flagship and entry-level products. A new venture, AGM Mobile Devices Europe, will be led by CEO and co-founder Robert Pryke, who apparently “brings a wealth of experience in the mobile industry”. He was COO of Wileyfox [1] and, prior to this, held senior positions at Siemens Mobile, Samsung and “other leading telecommunications brands”. “Our durable phones aren’t just for people who are extreme sports fanatics or builders – they are made for people who want their phone to keep up with their lifestyle without sacrificing performance or the latest features: whether that’s busy parents, adventurous selfie-takers, technology enthusiasts, or the accident-prone,” he said. AGM Mobile was established in 2008, and in 2011 produced what it said was the world’s first rugged and waterproof smartphone based on Android. The company said its products are IP68 certified, have Gorilla Glass screens and meet the 810G military standard for robustness. Powered by Qualcomm chips, devices also include Sony cameras and, in some models, JBL-tuned speakers. Among its European portfolio is the X3 flagship (pictured), which runs a Qualcomm Snapdragon 845 processor; has 24MP+12MP rear cameras and 20MP front camera; dual SIM; 4100mAh battery; and 5.99-inch full-HD screen. Pricing is £559.99 for 6GB RAM and 64GB storage configuration, or £599.99 for 8GB RAM and 128GB storage. [1] [https:]
14:57
Huawei turns attention to tech ahead of MWC19
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Huawei used its annual pre-MWC event to refocus on its technology credentials, following a period when security woes have dominated the headlines. Ryan Ding, president of the company’s Carrier Business Group (pictured), highlighted the company’s momentum in the commercial 5G market, with more than 40,000 base stations shipped and more than 30 5G contracts announced: 18 in Europe; nine in the Middle East; and three in Asia-Pacific. Several times South Korea was highlighted as a leading market, followed by the other regions. While not addressing the security issues [1] during the presentation, Ding took a bullish approach when quizzed by reporters. He noted the growing pace of 5G rollouts will improve market conditions in general, while the security issue will have “some impact on some countries, but there will not be an impact on 95 per cent of our markets”. “What’s more, because of the security pressure from the industry, Huawei is ever more motivated to make improvements in performance, in the quality of our products, and also on our engineering,” he continued. “Because of the security concern, we will make even bigger R&D investments this year to improve the competitiveness of our products.” Song Peng, president of marketing and solutions sales for Huawei's carrier unit, said the company's total spend on R&D is “more than that of all the other telecom vendors" combined. In 2018, Huawei spent more than €11 billion on research, with around 80,000 dedicated engineers. Every year, no less than 15 per cent of annual revenue is spent on R&D. 5G call At the event, the company conducted what it described as “the world’s first multi-operator video call over live 5G networks”, with participation from Vodafone UK, 3 UK, BT and Ding. Promising more announcements at MWC19 Barcelona, the company took the wraps off products including new 64T64R and 32T32R active antenna units, and a new rural site solution designed to offer improved abilities to serve remote markets. Ding pointed to numerous benefits of its new 5G technologies around factors including power consumption and ease of installation that will make them easier for operators to deploy, which will be critical for operators as rollouts gain pace. [1] [https:]
14:06
Vodafone moves closer to EU 5G launch
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Vodafone Group completed a trial to connect 5G smartphones to its next-generation network for the first time, as it prepares to launch the technology across Europe in the second half of the year. In a statement, the company said it completed commercial 5G smartphone trials in Madrid and Barcelona, ahead of MWC19 Barcelona next week. Trials were completed over a four-week period with three 5G smartphones that are due to be launched in 2019. During the tests, Vodafone conducted a 4K video call “utilising 5G download speeds that will be up to ten-times faster than 4G is today". The devices and network were fully compliant with the latest 3GPP non-standalone (NSA) 5G specifications [1]. Europe launch Vodafone confirmed it was now ready to launch 5G in a number of European cities during the second half of the year, pointing to trials completed in Italy, the UK, Germany and Spain. It explained it invested in single Radio Access Network (RAN) technology across 98 per cent of its European 4G footprint, making it simpler to add 5G on to existing 4G in the future. The company has also participated in 5G auctions in its European operating markets. CTO Johan Wibergh added Vodafone’s networks are “increasingly ready for 5G”. “Our focus now is on optimising the customer experience before we launch 5G in some European cities later this year.” [1] [https:]
February 14, 2019
19:38
GSMA urges balance in network security reviews
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Mobile industry body GSMA urged European policy makers and operators to work together to safeguard the security of network infrastructure without jeopardising 5G supply chains, as concern grows over the future of vendors in major global markets. In a statement, the association declared it is time for regulators to take "a fact-based and risk-based approach" to network security, or risk jeopardising the success of 5G rollout in Europe. The statement comes as European authorities weigh action [1] to block Chinese vendor Huawei from their telecommunications infrastructure amid security concerns. Huawei has strenuously denied it poses a threat. By 2025, mobile operators are expected to invest between €300 billion and €500 billion on the roll out of 5G across Europe. GSMA warned actions which disrupt the network equipment supply “will increase costs to European operators, businesses and citizens; delay 5G deployment by years across Europe; and potentially also jeopardise the functioning of existing 4G networks upon which 5G is intended to be built.” Last month it was reported that Deutsche Telekom believes Europe’s 5G rollout could be delayed by at least two years [2] if governments on the continent implement a ban on Huawei. Along with Germany, France and Norway have also said they are considering a ban on Huawei. In the UK, Vodafone Group said in January [3] it was pausing installation of new Huawei core network equipment across its European operations. BT previously said it would remove kit [4] made by the vendor in mobile operator EE’s core network within two years. No evidence of wrongdoing While the GSMA noted extensive government and operator testing has “not discovered any evidence of wrongdoing” to date, it stated operators “stand ready to work with policy makers now to agree on further proportionate and risk-based methods, not least a common, consistent and agreed security assurance, testing and certification regime for Europe.” The GSMA said it will build on its existing security work and is assembling a task force of European operators to identify ways to enhance and extend current schemes. It also recommends that governments and mobile operators work together to agree what this assurance testing and certification regime for Europe will be, "so that it ensures confidence in network security while maintaining competition in the supply of network equipment." [1] [https:] [2] [https:] [3] [https:] [4] [https:]
19:06
US trade groups partner to boost 3.5GHz band
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The CBRS Alliance and Small Cell Forum formed a new partnership which aims to accelerate commercialisation of the shared 3.5GHz band in the US. Specifically, the pair will collaborate on developing products which can host traffic from different operators, defining the indoor architecture required for network densification and exploring international possibilities for shared spectrum. The groups will also align technical specification requirements and testing results of 3.5GHz equipment for both indoor and neutral host use cases. The Small Cell Forum recently forecast unlicensed and shared spectrum could account for up to 36 per cent of small cell deployments by 2022. Alan Ewing, executive director of the CBRS Alliance, said in a statement: “As the industry shifts to focus on network densification, we expect that small cells will be a key driver for the adoption of 4G and 5G solutions in the 3.5GHz band.” He added the two groups can offer operators and vendors “a wealth of expertise that will raise awareness for the opportunities that shared spectrum offers”. The partnership comes as the 3.5GHz ecosystem pushes toward commercial launches in Q3 2019. Deployments were previously expected to begin in Q4 2018, but were delayed in part by a 35-day US government shutdown in late 2018 and early 2019 which halted federal review of key 3.5GHz systems and equipment. A range of players have expressed interest in the band, including AT&T, Amazon [1], T-Mobile US [2] and Verizon [3]. [1] [https:] [2] [https:] [3] [https:]
18:13
Rovio to offload part of Hatch subsidiary
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Angry Birds maker Rovio could reduce its ownership in cloud-based game streaming service Hatch Entertainment by at least 30 per cent in a bid to raise funds. CEO Kati Levoranta said in an earnings statement: “To accelerate its growth, Hatch Entertainment, Rovio's 80 per cent-owned subsidiary…is seeking external funding and further strategic partnerships. Hence, Rovio is prepared to reduce its ownership in Hatch Entertainment below 50 per cent”. The announcement comes on the heels [1] of an investment by Japanese operator NTT Docomo in Hatch, part of a partnership that will see the operator bring more games to its Japanese customers. Results Levoranta commented as the company announced operating profit fell 43.4 per cent year-on-year in Q4 2018 to €5.9 million on revenue of €72.7 million, down 1.7 per cent. Rovio stated the drop in profit was due to a lack of new game launches during 2018, higher user acquisition costs and a decline in brand licensing revenue following a bumper 2017 when the figure was inflated by income from the first Angry Birds Movie. However, Levoranta was optimistic, stating 2018 was characterised by continuously improving games and optimising user acquisition. She added average revenue per daily active user and monthly average revenue per paying user "reached a new high". Full year operating profit of €31.5 million was broadly flat on the €31.4 million generated in 2017, while revenue fell 5.4 per cent to €281 million. The company predicted revenue in 2019 will be in the range of €300 to €330 million, with 13 new games in development for the period to 2021. Levoranta also pointed to the pending release of a sequel to the Angry Birds Move in August as a positive, predicting uptick in Rovio's licensing business and use of the related mobile game "towards the end of 2019". [1] [https:]
17:23
Ant Financial acquires remittance provider WorldFirst
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Ant Financial struck a deal to buy UK-based international remittance company WorldFirst, a move which heralds a major step in its attempts to expand its influence in Europe. The terms and cost of the deal were undisclosed, however in December 2018 Financial Times revealed Alipay parent Ant Financial was mulling a bid of around $700 million. In a letter to customers, WorldFirst CEO Jonathan Quin said the UK company would continue to operate as normal and will be run as an independent subsidiary. Ant Financial executives have made several statements [1] over the last year outlining plans for global expansion, with a number of partner deals already in place around the world. Although Ant Financial has a number of deals in place with retailers for Alipay acceptance in Europe, this acquisition will be seen as giving the company an important physical foothold in the continent. The deal is its first major acquisition bid outside of Asia since an attempt to buy US remittance company MoneyGram fell through in January 2018 [2] when it became clear the deal would not clear US foreign investment authorities. [1] [https:] [2] [https:]
17:09
Google, Apple to probe Saudi app
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Apple and Google pledged to investigate Absher, a Saudi government app which lets users track their family members, after it was heavily criticised by human rights groups. In an interview with NPR, Apple CEO Tim Cook admitted he didn’t know about the app, adding “obviously we'll take a look at it”, while a Google representative told The New York Times that the search giant “is assessing the app to determine if it is in accordance with its policies”. The app was created by the National Information Centre, an agency of the Saudi Ministry of Interior. Descriptions of Absher on both app stores states "you can safely browse your profile or your family members, or [those] working for you, and perform a wide range of e-services online." Rothna Begum from Human Rights Watch said the app is “designed with the men in mind” and “is incredibly demeaning, insulting and humiliating for the women and downright abusive in many cases, because you're allowing men absolute control over women's movements." However she pointed out the app could have slipped under the radar as it also offers “normal government services”. US Senator Ron Wyden has written to Google and Apple urging them to remove the app: "Saudi men can also reportedly use Absher to receive real-time text message alerts every time these women enter or leave the country or to prevent these women from leaving the country”. He added that “it is hardly news that the Saudi monarchy seeks to restrict and repress Saudi women, but American companies should not enable or facilitate the Saudi government's patriarchy."
14:30
KDDI fleshes out finance masterplan
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KDDI pledged to place the smartphone at the forefront of financial services, as it announced the formation of a holding company to house its mobile wallet, asset management, loans, insurance and other related brands. Five of its divisions will be brought under the au Financial Holdings banner from the start of April and be rebranded to reflect the core company during KDDI’s 2019 financial year. Brands set to be incorporated into the new company are: Jibun Bank; KDDI Financial Service; WebMoney; KDDI Asset Management; and KDDI Reinsurance. As part of a wider revamp of its financial services interests, which included the acquisition of a stake in online brokerage [1] kabu.com Securities, the company announced the launch of its “smart money concept”, which it said places the smartphone as the entry point to a range of financial services. Once integration is complete, it will provide access to all financial services through its au Wallet application. In a statement on the new strategy, KDDI said: “Going forward, centering on au Wallet, KDDI plans to provide one-stop services to support customers’ activities pertaining to money, including saving, paying, increasing, borrowing or preparing for the future”. KDDI also announced it was set to add a fund dedicated to making investments in the financial technology sector into its existing VC arm. [1] [https:]
14:09
Ooredoo earnings hit by Indonesia, Algeria weakness
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Ooredoo warned traditional telecoms services remain under pressure, as the operator reported a 12 per cent dip in revenue for Q4 2018 on the back of struggles in Indonesia and Algeria. In a statement, the company said group revenue for Q4 2018 hit QAR7.2 billion ($1.9 billion) compared with QAR8.2 billion in the final quarter of 2017. Ooredoo was, however, boosted by lower tax, regulatory provisions and foreign exchange gains, which helped it increase net profit 40 per cent to QAR473 million. The Qatar-based operator, which also reported its full year results, said most of its operations “delivered a solid performance in 2018”, but it felt the impact of new SIM card registration regulation in Indonesia, challenging market conditions in Algeria and overall forex weaknesses in emerging markets. Revenue for full year 2018 reached QAR29.9 billion, driven by strong contributions from Oman and Kuwait. Its performance was offset by issues in Indonesia and Algeria, which led to a decline for the metric of 8 per cent from full year 2017. Net profit for the full year also declined by 18 per cent, reaching QAR1.6 billion. It highlighted increased monetisation of its data business as a strength, with “significant growth coming from consumer and enterprise customers”. Data revenue increased 47 per cent, contributing QAR14.2 billion to full year revenue. Commenting on the results, Ooredoo chairman Sheikh Abdulla bin Mohammed admitted that traditional telecoms services “remain under pressure, in line with our industry, and our financial results for the period reflect these challenges”. The company ended 2018 with 115 million customers, down 30 per cent from 164 million in 2017.
13:27
Zain CEO talks-up investment impact
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Zain Group CEO Bader Al-Kharafi (pictured) hailed heavy infrastructure investments and organisational changes for preparing the company to commercialise 5G, though currency issues continued to take a bite out of its bottom-line in Q4 2018. In its financial results statement, Al-Kharafi said Zain had created a foundation to deliver 5G and the interconnectivity to power the fourth industrial revolution in its markets. During 2018, he noted, the company made significant progress in “optimising synergies” within the group and made a number of large investments. Last year it continued to build out its fibre footprint and made other network upgrades, spending a total of $750 million including spectrum fees. Al-Kharafi said organisational changes were: “Geared towards making us a more agile operator that can reap the lucrative opportunities in the digital space and move quickly in the face of the sweeping changes in the ICT sector.” Zain’s chairman Ahmed Al Tahous added the company had also been supported by favourable decisions by authorities in its key markets. Financials Across its operations, Zain booked a Q4 jump in net income of 59 per cent year-on-year to KWD59 million ($194 million), on consolidated revenue of KWD411 million. Comparisons with 2017 were impacted by the inclusion of Zain Saudi Arabia into group results from Q3 2018. The company pointed to strong profit growth in its divisions in Iraq and Kuwait, while noting its Sudan operation had “performed exceptionally well” in local currency terms. Sudan is in the midst of an economic crisis with the currency 60 per cent lower against the US dollar in Q4 2018 than in Q4 2017, which has taken its toll on Zain's bottom-line in recent quarters. Zain said the impact of foreign exchange fluctuations across its footprint cost it $78 million in revenue and $10 million in net income in Q4 2018.
13:09
AT&T makes move to cut $171B debt
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AT&T raised $5 billion through the sale of unsecured bonds, as it stepped up efforts to tackle a huge debt load amassed during a period of acquisitions, Bloomberg reported. The news agency stated an AT&T filing showed it sold the bonds in as many as two parts to refinance its debt, with the proceeds going towards repaying bonds issued by AT&T and subsidiaries of DirecTV. AT&T bought DirecTV in 2015 for $49 billion. [1] Citing people close to the matter, Bloomberg reported the company raised $5 billion through the sale, although the figure was not confirmed in the filing. The operator is looking to reduce a debt load that has hit up to $171 million. As well as the purchase of DirecTV, AT&T in 2018 also splashed $85 billion for Time Warner [2]. Cut debt In its most recent quarterly financial results, AT&T said it would target reducing its high debt alongside free cash flow and asset monetisation initiatives. It aims to cut debt by around $20 billion by the end of the year. Bloomberg added that credit ratings agencies have expressed concern about AT&T’s debt load relative to its earnings. The operator currently holds a BBB ranking with Moody's Investors Service and S&P Global Ratings, the lowest tier investment grade. Rival Verizon is on the same ranking, with both companies using low interest rates to finance acquisitions at the expense of credit metrics, added Bloomberg. [1] [https:] [2] [https:]
12:46
Apple succumbs to Qualcomm demands in Germany
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Apple reportedly plans to restart sales of older iPhone models in Germany using only use chips from Qualcomm, after the devices were banned in the country [1] following a long-standing legal battle between the companies. Reuters stated the vendor believes it has no choice but to stop using chips from Intel in iPhones being sold in the country to ensure compliance with a ruling by a regional court in Munich in December 2018. The court banned the import and sale of some older iPhone 7 and iPhone 8 models with Intel modems, stating they infringed on Qualcomm’s power saving technology. A request from Apple to postpone the ban was denied. While it appealed the ruling, it said its iPhone 7 and 8 models will not be sold at its 15 retail locations in the country, though later generations including the XS, XS Max, and XR remained available. “Qualcomm is attempting to use injunctions against our products to try to get Apple to succumb to their extortionist demands,” Apple said in a statement to Reuters. Earlier it had said Qualcomm’s bids to ban iPhone sales were an attempt to distract from a series of ongoing patent spats between the companies. Qualcomm is also pursuing an iPhone ban in the US [2]. [1] [https:] [2] [https:]
12:15
Nokia unveils AI collaboration plan
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Nokia detailed plans to open a network of what it termed Cognitive Collaboration Hubs, intended to drive cooperation between the vendor, operators and enterprises in the development of artificial intelligence (AI)-based services. The Finnish vendor cited the example of driver behaviour analytics, which aims to improve road safety by providing real-time analysis of driver performance and road conditions. By hosting development on Nokia’s Ava cognitive services platform, the hubs will reduce operator time-to-market and increase return on investment in data analytics, it stated. Nokia's new data science centres are said to build on the success of Cloud Collaboration Hubs set up in 2018, which it said have “attracted substantial interest from operators to help them build new cloud-based capabilities”. Agile development processes will be used to create use cases, test and put them into operation “within weeks”. Typical application areas focus on network operations, network performance, customer experience and data monetisation. Unsurprisingly, 5G is also on the agenda, with Nokia stating it is “currently working with several US operators on the use of machine learning to improve 5G network planning, for example to help identify the best site locations or Massive MIMO beamforming configurations”. Nokia also said operators have already benefitted from cognitive services created using these methodologies. It gave the example of a project with Turk Telecom, testing machine learning-based AI technologies on new-generation mobile and fixed platforms, using Nokia’s Mika AI assistant and Ava cognitive services platform. The company did not state how many cognitive centres will be set up, or how they will be structured.
11:46
Activision Blizzard axes jobs
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Game maker Activision Blizzard responded to what it termed a dissatisfying 2018 by announcing plans to lay off around 775 employees, though it will also boost the number of developers working on its most lucrative titles. The company reported a profit of $650 million in 2018, overturning a loss of $584 million in 2017. Revenue rose 17 per cent to $2.38 billion. CEO Bobby Kotick explained on an earnings call that while the company had “record financial results in 2018” it didn’t “achieve the reach, engagement and player investment goals we set for ourselves.” What's more, its outlook for 2019 was rather bleak. As COO Coddy Johnson pointed out, the company will not improve in-game monetisation as quickly as it would like, and will release less new content than expected. Johnson added the company’s restructuring plan “sheds investment and less productive non-strategic areas of our business and will result in a net headcount reduction of approximately 8 per cent, while also driving a significant increase in investment, focus and capabilities around our biggest franchises.” The company stated it will be "de-prioritising initiatives that are not meeting expectations and reducing certain non-development and administrative-related costs across the business.” It also plans to invest in its popular franchises. The number of developers working on Call of Duty, CandyCrush, Overwatch, Warcraft, Hearthstone and Diablo “in aggregate will increase approximately 20 per cent over the course of 2019," it said in a statement. Some observers have pointed out the immense popularity of Fortnite, a title by Epic Games, has hit the bottom line of other game makers including Electronic Arts and Take-Two. Activision Blizzard has also suffered from the departure of executives, including CFO Spencer Neumann, who joined Netflix, and the CFO of its Blizzard Entertainment subsidiary, Amrita Ahuja.
11:02
Thai smartphone market weakness continues
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Thailand’s smartphone market endured a second straight quarter of year-on-year declines in Q4, pulling full year shipments down 8.6 per cent, data from Canalys showed. Shipments of 4.9 million units in Q4 2018 were down 13.6 per cent compared with the same period of 2017. Canalys said competition intensified as several new brands including Xiaomi, Honor, Lava and Wiko, aggressively entered the market over the past two years. But consumer demand for smartphones is not growing as the market matures, with the replacement cycle lengthening despite operators offering discounts to stimulate demand. In the recent quarter Oppo, Huawei and Vivo all grew shipments year-on-year, while Samsung and Apple recorded huge declines. A 69.8 per cent hike in shipments saw Oppo top the table for the first time, with shipments of almost 1.1 million units giving it a 22.2 per cent market share. Samsung slipped to second after shipments declined 36.1 per cent to a little over 1 million units. Huawei placed third as shipments jumped 73 per cent to 645,000 units, taking its share to 13.1 per cent: it displaced Vivo, which achieved a 12.7 per cent share following a 13 per cent rise in shipments. Apple's shipments declined by 52.2 per cent year-on-year, leaving it in fifth spot with an 8.6 per cent share. Canalys predicted overall shipments will grow 4.1 per cent this year on the back of broader economic growth expected following a forthcoming general election.
8:22
Regional units weigh Singtel down
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Singtel reported a double-digit drop in profit and anaemic revenue growth for its fiscal Q3. The operator group's financials were adversely impacted by its Optus unit in Australia, which suffered due to lower NBN migration and voice revenue, along with a weaker Australian dollar. Group earnings were also hit by a decline in profit contributions from regional units, mainly Bharti Airtel in India. Net profit for the quarter ending 31 December fell 14.2 per cent year-on-year to SGD823 million ($607 million), with group revenue inching up 0.9 per cent to SGD4.63 billion. Pre-tax profit contributions from its associates fell 33 per cent, with Airtel posting a pre-tax loss of SGD120 million compared with a profit of SGD46 million the previous year. Group mobile service revenue dropped 7.7 per cent to SGD1.33 billion: equipment sales increased 13.4 per cent to SGD932 million. Chua Sock Koong, Singtel Group CEO, said: “We have stayed the course despite heightened competition and challenging market and economic conditions. We’ve continued to add post paid mobile customers across our core business in both Singapore and Australia, while making positive strides in the ICT and digital space.” Regional units The company said overall performance was affected by the global economic slowdown and weaker sentiment: “The intense competition in India also negatively impacted Airtel’s earnings, although there are early signs of market stabilisation.” In Indonesia, with the completion of a SIM card registration exercise, Telkomsel’s performance returned to growth on a sequential basis. In Thailand, AIS’ revenue improved year-on-year, but profit fell on higher marketing costs and network investments, while in the Philippines, Globe Telecom’s earnings rose due to strong data revenue growth in mobile and broadband. Chua added: “Our long-term view on our regional associates remains positive as they continue to ride the growth in data and execute well against the challenges and competition. We expect the regional markets to revert to more sustainable market structures and deliver long-term profitable growth.” Home and away In Singapore, operating conditions continued to be extremely competitive with mobile revenue impacted by higher handset subsidies and an increased mix of premium handset sales, the company said. Operating revenue dropped 5.7 per cent year-on-year to SGD598 million, mobile service turnover fell 4.2 per cent to SGD261 million and consumer equipment sales declined 7.4 per cent to SGD188 million. Its mobile customer base grew by about 70,000 year-on-year to end December with 4.2 million subs. Post paid and prepaid ARPU fell 11 per cent and 3 per cent to SGD43 and SGD18 respectively. Optus in Australia experienced a 3.5 per cent decline in mobile service revenue to AUD897 million, due to lower ARPU partly mitigated by post paid customer growth. Prepaid ARPU dropped 9.6 per cent to AUD18, and post paid fell 6.8 per cent to AUD41. Equipment sales jumped 31.1 per cent to AUD634 million. Its mobile subscriber base rose 3 per cent to 10.2 million, but prepaid subs fell by 140,000 to 3.53 million. LTE penetration rose to 64 per cent. Singtel’s Digital Life unit recorded a 16.7 per cent increase in revenue to SGD379 million, boosted by Amobee’s programmatic ad business and contributions from Videology [1], which was acquired in August 2018. For the full fiscal year, Singtel forecasts stable group mobile service revenue in Australia, a low single-digit increase in group ICT revenue and a low single-digit decline in EBITDA for the group's core business. [1] [https:]
8:03
NBN, restructuring costs hit Telstra hard
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Telstra, the largest mobile operator in Australia, reported a sharp drop in profit and a decline in revenue for its fiscal H1, which it attributed to the impact of the country’s NBN rollout and significant restructuring costs. In the six months to end-December 2018, net profit dropped 27.4 per cent year-on-year to AUD1.2 billion ($853 million), while total revenue declined 1.7 per cent to AUD12.6 billion. Restructuring costs under the Telstra2022 strategy [1] totalled AUD300 million. CEO Andrew Penn (pictured) said in a statement: “This has been a challenging time as we continue to see increasing competition in the mobile market, and Telstra feels the unique impact of the transition to the NBN network. As previously stated in our disclosures and guidance, we expect to see these factors continue to weigh on our revenue over the short term.” He said Telstra has absorbed AUD1.7 billion of the estimated AUD3 billion negative impact of the NBN rollout on its EBITDA, noting: “The anticipated impact of NBN is why we announced our T22 strategy in June last year.” Post paid strength While the financial results show parts of its business continue to face short-term challenges, Penn said there are positive signs particularly with the significant increase in post paid mobile services. A 2.4 per cent increase in mobile revenue to AUD5.29 billion was driven by a 9.8 per cent gain in equipment sales to AUD1.51 billion and a 35.6 per cent rise in IoT revenue to AUD99 million. Post paid revenue increased 2.1 per cent to AUD2.67 billion; prepaid dropped 9.1 per cent to AUD449 million; and mobile broadband fell 15.8 per cent to AUD350 million. The operator added 240,000 mobile subscribers, taking its total to 18 million at end-December. Paid post ARPU of AUD55.62 was down 2.4 per cent; prepaid dipped 0.7 per cent to AUD22.54. Fixed revenue dropped 9.6 per cent to AUD2.72 billion, while data and IP turnover fell 6.2 per cent to AUD1.22 billion. Capex for period rose 1.8 per cent to AUD2.34 billion. Cost cuts Penn noted it has made significant progress reducing costs and is on track to meet fiscal 2019 targets as part of the goal of achieving an AUD2.5 billion net productivity improvement by 2022. Underlying fixed costs in H1 were down 4.2 per cent. Nearly AUD900 million in annualised cost reductions have been achieved since fiscal 2016, he said, adding “we will be accelerating our productivity programme in the second half of FY19 and into FY20”. Against a target of removing 8,000 full-time roles by fiscal 2022, he said 3,200 people left the business including more than 1,500 management and executive roles. The operator reconfirmed its fiscal 2019 guidance targeting total income of AUD26.2 billion to AUD28.1 billion and EBITDA (excluding restructuring costs) of AUD8.7 billion to AUD9.4 billion. Capex for the fiscal year is set at AUD3.9 billion to AUD4.4 billion. [1] [https:]
February 13, 2019
21:38
Congress grills Sprint, T-Mobile on rural coverage
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Top executives from T-Mobile US and Sprint struggled to provide specifics when pressed by US politicians to explain how their proposed merger [1] will improve coverage in rural America. During a hearing, Congressman Ben Ray Lujan challenged T-Mobile CEO John Legere to detail how the deal would incentivise more deployments in rural areas, which have historically failed to attract strong operator investments. He also questioned whether rural residents receiving low-band 5G coverage would be offered slower speeds than urban counterparts covered by mmWave. Legere largely responded to queries on jobs, competition and coverage by restating information contained in the operators’ merger filings with regulators [2], including a promise to cover 90 per cent of the population with 5G service offering 100Mb/s speeds by 2024. Lujan insisted "details matter," adding: "When I’m told that rural America is going to get these assets and things don’t exactly add up, I have a lot more questions.” Queries in the same vein came from several other politicians, including Congressman Peter Welch, who blasted operator coverage maps as “bogus”. “When I sit here and hear what I believe is your sincere goal to serve rural America and bring 5G to rural America, in Vermont we [currently] have no G…so I’m a skeptic,” he said. Legere and Sprint chairman Marcelo Claure are also scheduled to testify before a separate Congressional committee on 14 February. The hearings come as the Department of Justice (DoJ) and Federal Communications Commission (FCC) weigh whether to clear the deal [3]. Congress doesn’t have a direct say in the approval, but politicians can voice concerns and share evidence with the deciding agencies. Severing ties Separately, Sprint announced its withdrawal from industry trade group INCOMPAS, after association CEO Chip Pickering concluded the merger would “undercut the competitive wireless ecosystem”. Pickering cited concerns the combination could raise wholesale prices for wireless resellers and negatively impact roaming and MVNO agreements. Sprint, which helped found INCOMPAS in 1981 as part of bid to break-up AT&T, said its decision to oppose the deal marked a “fundamental shift toward protecting incumbents from a new competitive threat”. [1] [https:] [2] [https:] [3] [https:]
19:29
Ivory Coast consumers demand mobile money tax cut
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An Ivory Coast consumer association denounced escalating taxes on mobile money transactions in the country and demanded the complete removal of the levies, Le Monde Afrique reported. In a statement to the newspaper, Jean-Baptiste Koffi, president of the Confederation des Consommateurs de Cote d’Ivoire, said a 7.2 per cent increase in tax rates on mobile money payments and cash transfers damaged the country’s financial inclusion effort. The federation, which represents ten different consumer groups in the country, stated that less than a fifth of consumers in Ivory Coast have access to bank accounts. It noted the traditionally low cost of transactions using mobile money services had led to a “dynamic” industry, but the increase in government levies made it “more expensive for consumers to use an accessible service that has started to enter our habits.” Le Monde Afrique estimates XOF15 billion ($25.8 million) is transacted through mobile money in Ivory Coast on a daily basis.
17:45
Vapor IO targets faster edge compute deployments
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Data centre company Vapor IO forged a coalition of software, hardware and networking companies which aims to accelerate the roll out of edge compute technology in the US. By bringing together disparate parts of the edge ecosystem, Vapor IO CEO Cole Crawford said the Kinetic Edge Alliance will help remove “the guesswork from edge deployment and operations that exists today”. “Delivering edge computing at scale, across the entire United States, requires a great deal of collaboration,” he added. “The alliance will accelerate the rollout of edge computing, delivering a platform for wireless operators and application providers to deliver new edge-enabled products and services to customers.” Initial partners include Federated Wireless, Linode, MobiledgeX, Packet, StackPath, Alef Mobitech, Detecon International, Hitachi Vantara, New Continuum Data Centers, Pluribus Networks, and Seagate Technology. The group aims to launch edge compute equipment and services across the top 30 US metropolitan markets, beginning with six cities in 2019. Vapor IO’s edge architecture Kinetic Edge gave the group its name. The architecture relies on software and high-speed connections to combine several micro data centres and place computing power closer to users. The group is already working on a deployment in Chicago. Vapor IO launched two of its micro data centres [1] in the city in 2018 and expects a third site to come online by end-March. [1] [https:]
14:26
Xiaomi confirms MWC19 Barcelona launch
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Xiaomi revealed new products are incoming, including its Mi 9 flagship, with launches taking place in China and at MWC19 Barcelona over the next two weeks. The company said a “new product launch” will take place in Spain on 24 February, without hinting at what will come. But Donovan Sung, director of product management, separately said Mi9 will be launched at an event in China on 20 February, the same day Samsung will unveil its new Galaxy S flagship portfolio. Reports state Mi9 will be a Qualcomm Snapdragon 855-powered flagship, with 6.4-inch full HD display, 48MP/12MP main cameras and 3D Time of Flight for depth sensing. Other mooted specifications include a 24MP font camera. With the device debuting in China only days before, it certainly seems likely Xiaomi will use MWC19 Barcelona to take the model to a global stage. As with other vendors, Xiaomi has also teased a device with a foldable screen [1] and there is some expectation this will also be on display in Barcelona. Whether or not this will include commercial launch plans is not clear, but the same can also be said of Xiaomi’s rivals. Some update on its 5G plans is also likely. It has been suggested a version of Mi Mix 3 with 5G compatibility will be unveiled on 24 February, having previously been teased [2] for a Q1 release in Europe, although this will be closely tied to network rollouts. [1] [https:] [2] [https:]
14:15
Huawei seeks to woo Polish authorities
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Huawei committed to working with Poland to address security concerns and build trust in the country, as the government considers banning the Chinese vendor from participating in future 5G network deployments. In a press conference held in Warsaw, Reuters reported that Georg Mayer, Huawei’s senior standards manager in Europe, said the company had not seen a slowdown in sales of end-user equipment in Poland despite recent issues. He, however, warned that “if the situation continues, at some point it will impact our business as well”. Mayer’s comments follow reports last week that Huawei offered to build a cyber security centre in the country. Huawei’s head in Poland, Tonny Bao, said the company was ready to establish a cyber security focused operation in the country “if authorities accept this as a trusted solution”. The company has set up information security labs in Germany and the UK, designed to assure authorities its equipment is safe. Huawei has already faced trouble in Poland this year, after a Chinese employee of the company was arrested in the country [1] on spying allegations. US pressure Poland is one of a number of countries in Europe considering a ban on Huawei, along with Germany, the UK, France and Norway, following pressure from US officials. Andy Purdy, chief security officer at Huawei Technologies USA, told Reuters the company is ready to work on additional steps to build trust, as the US continues to put pressure on its allies to exclude Huawei equipment from future network build-outs. US Secretary of State Mike Pompeo said this week that if Huawei kit, which it believes contains backdoors that the Chinese state uses for spying, is present in overseas networks it could harm collaboration between nations. [2] [1] [https:] [2] [https:]
14:00
Kirkby set for BT board position
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BT announced the CEO of Danish operator TDC Allison Kirkby (pictured) would join the company’s board as a non-executive director next month. Kirkby took charge of TDC [1] in December 2018, having announced her departure from Swedish operator group Tele2, where she was president and CEO, in October. She has also held a number of other executive and non-executive roles including with multinationals 21st Century Fox, Procter & Gamble, and Guinness. She is also currently on the board of UK bakery chain Greggs. Prior to the unveiling of Philip Jansen as the new BT CEO [2], Kirkby had been one the names rumoured to be in the frame to replace former boss Gavin Patterson [3]. Jansen took over at BT earlier this month. Announcing Kirkby’s appointment, BT chairman Jan du Plessis said she brought “valuable and recent experience in the international telecommunications sector. This, combined with her strong experience in driving performance, improving customer service and delivering shareholder value, makes her an excellent addition to the board.” [1] [https:] [2] [https:] [3] [https:]
13:21
Publishers irked over Apple news service plans
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Apple drew the ire of publishers after it emerged it plans to pocket half of the subscription revenue from a forthcoming news service, The Wall Street Journal (WSJ) reported. News organisations are also concerned they will not gain access to subscriber data, which is important from a marketing point of view, and that Apple wants them to commit to providing content for a year. Some want to commit for longer, while others want the flexibility to opt out. The service will allow users to read as much content as they like from partners for a fixed monthly fee, likely to be around $10. Apple wants to keep around half of the revenue generated, with the rest divided among publishers based on how much users engage with their articles. Big name news outlets including The New York Times and The Washington Post are among those yet to get on board. WSJ itself said it has concerns, but has had productive conversations with Apple on the matter. Apple usually takes a 30 per cent cut from developers offering subscriptions through iTunes for the first year, and 15 per cent after that. Even this has been deemed high by many parties including Netflix, which pulled iTunes billing [1] support last month. BuzzFeed reported Apple will hold an event on 25 March to announce the service, which means there isn’t much time to iron out the details. As iPhone sales stall [2], Apple has put a renewed focus on services. It wants to increase the number of paid subscriptions across its devices to 500 million by 2020, up from the current figure of 360 million, WSJ stated. Along with the news service it is also working on original TV programming. [1] [https:] [2] [https:]
13:00
Tele2 ups cost cutting target from fixed buy
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Tele2 drastically increased its cost reduction goal and slashed the timescale for savings related to absorbing newly acquired fixed business Com Hem into its core operation. In CEO Anders Nilsson’s (pictured) first financial results call since taking charge of the operator in November [1], covering Q4 2018, he updated the amount Tele2 aims to shed from annual costs to SEK1.35 billion ($147 million), with SEK900 million of that total to be delivered within three years. When it announced its acquisition of Com Hem, Tele2 had targeted annual synergy savings of SEK900 million [2], with half to be achieved in the first five years. The cost of integration is expected to reach SEK1 billion in the first three years, SEK400 million than first expected. Nilsson said once the integration process started, the company identified additional savings with the potential opportunity to make further structural changes “further down the line” in areas including IT, network and brand. “This next step is more transformational and would turn Tele2 into what it needs to be in the future, a truly integrated fixed-mobile convergence challenger.” Strategy In addition to deeper cuts, on an earnings call Nilsson announced the company was set to launch a Com Hem mobile brand, as this was the “quickest way” to cross-sell mobile into its new fixed base rather than selling-in Tele2. Under its new management the operator will also change its strategy in the business segment in its home market of Sweden. Here, it aims to improve market share and revenue by focusing on “volumes rather than price”. During Q4, Tele2 recorded a net loss of SEK339 million compared with a profit of SEK461 million in the same period of 2017. The decline, it said, was due to the impact of deferred tax payments. In Q4 2018 it booked income tax charges across its international operations of SEK1.18 billion compared with SEK165 million in the same period of 2017. [1] [https:] [2] [https:]
12:39
Google refocuses Android Things on smart devices
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Google announced it is putting more focus on helping partners build smart speakers and displays with its Android Things OS going forward, scaling back the platform's support for a wider array of connected devices. In a statement, Dave Smith, developer advocate for IoT at Google, said the company had worked closely with partners over the past year “to create consumer products powered by Android Things”, with it’s artificial intelligence (AI)-powered Google Assistant built in. “Given the successes we have seen with our partners in smart speakers and smart displays, we are refocusing Android Things as a platform for OEM partners to build devices in those categories moving forward,” he said. Introduced in December 2016, Android Things was positioned as an extension to its operating system covering a number of IoT devices including smart light bulbs, plugs, thermostats and more. It followed up in May 2018 with the release of Android Things 1.0, [1] which extended support to smart displays, speakers and other IoT devices. The release also added support for production System on Modules (SoMs) based on NXP, Qualcomm and MediaTek hardware, which it has now removed as part of the refocus. Engadget noted that while Android Things was intended to bring intelligent capabilities to different types of devices, the shift to AI-based platforms like Google Assistant have moved control to the cloud, and the smartest home devices are speakers and smart displays. Smith said Android Things will continue to be a platform to allow companies to experiment with, and build, connected devices on hardware like Raspberry Pi, using the Android Things SDK. It also remains dedicated to providing a managed plaform for IoT devices, including turnkey and hardware solutions. [1] [https:]
12:09
America Movil returns to profit in Q4
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America Movil swung back into the black in the fourth quarter of 2018, with the company also providing an update on the progress of recently announced asset buys from Telefonica in Latin America. It said it completed the acquisition of Telefonica’s assets in Guatemala, as announced in January [1], while a similar deal in El Salvador is awaiting regulatory approval. The cost of the deals was pegged at $333 million for 100 per cent of the former, and $315 million for 99.3 per cent of the latter. The company reported a profit for the quarter of MXN9.8 billion ($508.8 million), compared with a prior-year loss of MXN10.9 billion, benefitting from significantly lower comprehensive financing costs due to the release of provisions made in Brazil linked to a tax dispute. Foreign exchange losses were also lower. Operating profit increased 25.6 per cent year-on-year to MXP35.9 billion, partly due to reduced depreciation charges in Brazil following a revision of the useful lives of various assets. Total revenue decreased 0.7 per cent to MXP262 billion, with a 1.7 per cent decline in service revenue to MXP217.2 billion partially offset by an increase in equipment revenue. The company said that at constant exchange rates, service revenue grew 3 per cent. It ended the period with 275.8 million wireless customers, down 1.3 per cent year-on-year. The lion’s share of subscribers are in Mexico (75.4 million), followed by Brazil (56.4 million) For the full year, the company generated profit of MXP45.7 billion, up 8.4 per cent year-on-year, on revenue of MXP1 trillion, which was flat. [1] [https:]
11:26
Dtac facing further profit pressure
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At a time of intense competition in the Thai market, Fitch Ratings predicted dtac will become more aggressive in its marketing activities to regain market share, a move likely to put further pressure on its profitability. Higher discounts are likely to offset any savings from cost-optimisation plans [1] announced last month. Its earnings will also be affected by payments to CAT Telecom for equipment rental and TOT for use of the 2.3GHz spectrum. Fitch expects dtac's EBITDA margin to decline to 36.5 per cent in 2019 from 37.8 per cent in 2018. Its mobile connections dropped from 28.2 million in Q1 2014 to 21.1 million in Q4 2018, with its market share falling from a peak of nearly 31 per cent to 23 per cent over that period, GSMA Intelligence data showed. Challenges ahead The agency said the latest quarterly results of dtac [2]and AIS signal a challenging outlook for the sector, which is forecast to continue in 2019. Unlimited data plans took a toll on both operators. Mobile revenue growth at AIS (the largest operator in the country) fell from 3.3 per cent in 2017 to 1.3 per cent in 2018, while dtac recorded a 0.7 per cent decline. Aggressive marketing promotions, including handset subsidies, resulted in declines in profitability at both companies. Fitch expects dtac's market position to strengthen this year following it's acquisition of 1800MHz and 900MHz spectrum [3]. However, it said meaningful network improvements and brand rebuilding may take effect only after a few more quarters, suggesting EBITDA recovery will probably take place only in 2020. Meanwhile, the ratings agency said AIS' strategy to provide handset subsidies in only some geographical areas is likely to limit the impact on its EBITDA margin, noting the operator should continue to benefit from its strategy to diversify its telecoms business into fixed broadband. [1] [https:] [2] [www.mobileworldlive.com] [3] [https:]
11:00
China brands drive India smartphone growth
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India’s smartphone market recorded close to 20 per cent annual growth in the last quarter of 2018 as China-based vendors posted huge year-on-year increases in shipments, IDC data showed. Smartphone shipments in Q4 increased 19.5 per cent year-on-year to 36.3 million units. Xiaomi topped the table during the quarter, with shipments up from 8.1 million units in Q4 2017 to 10.5 million and market share increasing from 26.8 per cent to 28.9 per cent. Samsung maintained second position despite shipments declining from 7.3 million units to 6.8 million and market share dropping from 24.2 per cent in Q4 2017 to 18.7 per cent. Also holding station was third-placed Vivo, which shipped 3.5 million units in Q4 2018 compared with 2 million in the 2017 quarter for a market share of 9.7 per cent. Start-up Chinese vendor Realme, which commenced operations in May 2018, leapt into the top five with shipments of 2.7 million units during the recent quarter, narrowly ahead of Oppo, which shipped 2.6 million units compared with 1.5 million in Q4 2017. Full year shipments rose 14.5 per cent to 142.3 million units. The overall smartphone ASP remained flat at $158, with shipments of models in the $100 to $200 price range accounting for more than half of the market, IDC said. Upasana Joshi, associate research manager at IDC India, said the premium segment (above $500) outgrew all other price segments with 43.9 per cent year-on-year growth, but accounted for just 3 per cent of the overall market. Online growth Joshi noted the share of online sales channels hit an all-time high of 38.4 per cent during 2018, stating the rise was "primarily driven by several rounds of discounts by e-tailers driving affordability through various financing options, cashback offers and buyback schemes". Offline channels experienced modest growth of 6.7 per cent, which IDC attributed to an inability to match the deep discounts offered by online players. However, Joshi said offline "remains the largest channel for mobile phone distribution in India and is crucial for the long-term success for any brand in India”.
8:17
T-Mobile US chief shuns Chinese gear
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T-Mobile US CEO John Legere (pictured, left) closed the door on Chinese equipment vendors, stating the operator will not use kit from Huawei or ZTE for its 5G network. In prepared remarks released ahead of a hearing before Congress, Legere said the operator does not use gear from either company “in any area of our network” and “will never use it in our 5G network”. He added the latter statement would still apply in the event the operator’s proposed merger with Sprint is approved: “New T-Mobile will buy network equipment only from trusted network equipment suppliers with a strong security track record in the United States,” he wrote. T-Mobile already announced 5G equipment deals with Ericsson [1] and Nokia [2] worth a total of $7 billion. Legere said the exclusion of Chinese vendors will provide a “critical lift” to such competitors and help protect “the 5G supply chain for the United States and our allies”. Huawei and ZTE have repeatedly denied they pose a security threat. Legere is expected to read out the remarks during a hearing before Congress on Wednesday (13 February), as he and Sprint chairman Marcelo Claure (pictured, right) once again defend the merger. In December 2018, the deal received approval [3] from a handful of US regulators after reports T-Mobile and Sprint’s parent companies agreed to review or drop Huawei equipment from their network plans. Approvals from the Federal Communications Commission and the antitrust arm of the Department of Justice remain outstanding. [1] [https:] [2] [https:] [3] [https:]
8:06
KDDI expands fintech focus
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The second largest mobile operator in Japan, KDDI, announced it will acquire a major stake in online brokerage kabu.com Securities, as the operator moves to diversify its offering by expanding into finance-related services. KDDI said it will spend about JPY91.4 billion ($826 million) for up to a 49 per cent stake in kabu.com Securities, Nikkei Asian Review reported. After the acquisition is completed, Mitsubishi UFJ Financial Group will remain the majority shareholder. The deal is scheduled to close by end-May. Kabu.com Securities is the fifth-largest internet securities company in Japan, with about 1.1 million accounts. The newspaper said KDDI plans to rename it kabucom Securities, in a move to consolidate financial services under the au brand. Last week KDDI and Daiwa Securities Group announced a tie-up to offer asset management services to younger investors via smartphones, Reuters reported. The diversification effort comes as the country’s mobile operators face rising competition and slowing revenue growth. KDDI reported a 1.6 per cent dip in mobile revenue [1] in its Q3 ending 31 December. Rakuten, currently an MVNO, plans to launch service in October [2]. [1] [https:] [2] [https:]
February 08, 2019
17:48
Watch our MWC19 Barcelona keynote stream
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Watch our MWC19 Barcelona keynote stream
17:41
AT&T fires back at Sprint lawsuit
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AT&T defended itself against accusations its 5G Evolution (5GE) branding is misleading to consumers, after Sprint filed a lawsuit [1] seeking to ban its use of the term. In a statement to Mobile World Live, an AT&T representative argued it clearly defined 5GE technology, which comprises LTE-Advanced techniques to boost network performance, as “an evolutionary step to standards-based 5G” when it introduced the term two years ago. “We understand why our competitors don’t like what we are doing, but our customers love it…Customers want and deserve to know when they are getting better speeds.” The statement also included a shot at Sprint’s own claims around 5G, noting assertions it made in the lawsuit appear to contradict statements made to officials reviewing its proposed merger with T-Mobile US. “Sprint will have to reconcile its arguments to the FCC [Federal Communications Commission] that it cannot deploy a widespread 5G network without T-Mobile while simultaneously claiming in this suit to be launching ‘legitimate 5G technology imminently.’” AT&T said it will fight the lawsuit while “continuing to deploy 5G Evolution in addition to standards-based mobile 5G.” 5G update Separately, AT&T announced it achieved speeds of over 1.5Gb/s in a field trial of a new 5G software update for its network. The operator said it tested the software on its live 5G network using a prototype mobile device and plans to roll out the upgrade across its next generation network “as quickly as possible”. [1] [https:]
14:30
Swedish smartwatch maker hits the skids
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The company behind connected watch brand Kronaby reportedly filed for bankruptcy, after its backers pulled support for the loss-making company. Swedish publication The Local stated Chinese electronics manufacturing company Goertek pulled support for Anima, which offers products under the Kronaby name, as part of a wider withdrawal from operations beyond its core business. Pal Borge, CEO of Anima, said Goertek had given it one-and-a-half months to find new investors, but that this was not enough. “We have a number of leads which we will continue to work on, but we have not been able to finalise them,” he said. He suggested the company needed a final investment round to take it to profitability, with a capital injection of a few million dollars needed to drive toward breakeven this year. WatchPro reported Kronaby is attempting to keep its business on track while working to find new support. A new backer would not be expected to take on debt, the paper said, citing Borge. The team behind the company met while working on accessories and wearables for Sony Mobile, continuing together after the Japanese company shifted the work back to its home country.
14:00
Sprint sues AT&T over 5G branding
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Sprint raised the stakes in a row over AT&T’s controversial 5G Evolution advertising, filing a lawsuit in a bid to ban the brand and demanding damages for lost revenue. The complaint, published in full by US tech website Engadget, slammed AT&T for “false advertising and deceptive acts” adding its 5G Evolution brand “misleads consumers into believing that it currently offers a coveted and highly anticipated fifth-generation wireless network.” The filing was lodged with a US regional court yesterday (7 February) and went on to note: “What AT&T touts as 5G...is nothing more than an enhanced fourth-generation Long Term Evolution wireless service, known as 4G LTE-Advanced, which is offered by all other major wireless carriers.” Sprint argued AT&T’s use of the terms 5GE and 5G Evolution are an attempt to secure an unfair competitive advantage and devalued "genuine" 5G efforts. It also claims its own research shows consumers believed 5GE was the same or better than 5G. The complainant is seeking the removal of 5G-related branding from AT&T's network until it fully complies with 3GPP 5G standards, suspension of adverts related to 5GE and damages for lost revenue. Since AT&T launched 5G Evolution, rivals have mocked and rubbished the brand [1], however beginning legal proceedings takes the row to a whole new level. AT&T has repeatedly defended its actions with CEO of AT&T Communications, John Donovan, slamming rivals as jealous competitors [2] during a session at CES last month. [1] [https:] [2] [https:]
13:17
Swiss 5G auction nets $380M
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Switzerland’s Federal Communications Commission (ComCom) awarded 5G radio frequencies to all three mobile operators - Swisscom, Sunrise and Salt - raising CHF380 million ($379 million). The frequencies will be assigned for 15 years, which the regulator said provides the "operators long-term planning security to develop their networks." ComCom said it set caps to ensure all operators were able to acquire a wide range of 5G frequencies at reasonable prices and the process is “of key importance for the digitalisation of Switzerland”. It also said its aim was not to maximise auction revenue, but rather to allocate frequencies efficiently to ensure high quality mobile communications services. The money raised in the auction is a far cry from other European countries: Italy raised around $7 billion [1], for which it has faced criticism; while Germany could reportedly raise around $5.6 billion. Dense Air, a small cell player which launched in 2018, pulled out of the Swiss auction. Reuters noted this "removes a potential rival for the three companies in the already crowded Swiss mobile market". Operator plans Swisscom, which paid CHF196 million, said by the end of 2019 it expects to roll-out 5G to 60 towns and communities. Sunrise and Salt did not have such concrete plans. The former said the frequencies gained will help it to "deliver a world-class 5G network in the future" and the latter that it will "improve its high-quality mobile network" with "next-generation speed, latency and capacity". [1] [https:]
12:58
Millicom upbeat despite forex woes
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Latin America-focused operator group Millicom cited healthy organic growth in its core business, although currency and accounting impacts took their toll in 2018. The company is anticipating “another solid year” in 2019, marked by the continued expansion of its high-speed data networks and customer growth. For its LatAm segment it expects organic service revenue growth in the 3 per cent to 5 per cent range, while EBITDA growth is expected to be between 4 per cent and 6 per cent. “I am extremely pleased by our strong performance in 2018 on many fronts. We delivered on all our operational and financial targets, and we made great strides toward increasing our focus on LatAm by divesting our operations in Rwanda and Senegal and acquiring Cable Onda in Panama,” Mauricio Ramos, CEO, said. Millicom does still have some operations in Africa (Tanzania and Chad). Trading in Millicom's shares on the Nasdaq stock market began in January. Earnings It reported a Q4 net loss of $94 million compared with a prior-year profit of $69 million, on revenue which declined 4.4 per cent to $1 billion. The top-line decline was attributed to the impact of weaker currencies in the majority of its markets and the adoption of new accounting standards. Operating expense increased 14 per cent year-on-year to $460 million, due to around $50 million of charges related to the Cable Onda acquisition [1], as well as its US market listing and the restructure of its regional Africa operations. Its operating income was also hit by lower gains on the sale of tower assets when compared with Q4 2017. For the full year, the company reported a net loss of $10 million, compared with a prior-year profit of $86 million, on revenue which was flat at $4.1 billion. The Latin America operations added 3.2 million 4G customers in 2018, exceeding its own 3 million goal, and at the end of the period it had a total of 32.4 million business-to-consumer mobile customers. Around 52 per cent of these used data services. It also touted customer growth in its cable operations. It exceeded its target of 400,000 customer relationships (upped from earlier guidance of 300,000) with a total of 406,000. So far, 2019 has already seen Millicom subject to acquisition interest from Liberty Latin America, although this came to an end [2] without an offer being made. [1] [https:] [2] [https:]
12:31
Investor eyes Reliance Jio tower unit
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Reliance Industries opened talks with investment company Brookfield Asset Management to sell a controlling stake in a spun-off business housing Reliance Jio's tower and fibre assets, The Times of India reported. The total value of the assets under discussion is estimated at $12 billion to $15 billion and comprises 220,000 towers and 300,000 kms of fibre. However, these figures could increase should Reliance Industries or one of its subsidiaries buy-up towers from Reliance Communications’ defunct mobile operation when India's companies authority comes to sell off its assets [1]. Last Month, Bloomberg reported Reliance Industries was open to spinning-off and selling Jio's tower and fibre assets to reduce the debt pile built-up during the rollout of its fixed and mobile networks. This is not the first time Brookfield Asset Management has been linked with infrastructure investment in India. It was previously named [2] as a likely bidder for tower units sold in 2018 by Vodafone India and Idea Cellular prior to the two operators merging. The 76,000 sites were eventually sold to American Tower. Brookfield Asset Management is a huge Canada-based investment company with a wide variety of interests around the world from office blocks to ports and power-lines. Assets under its control are valued at more than $330 billion. In 2018 it bought gas infrastructure from another subsidiary of Reliance Industries. Last week the investment company was also rumoured to be mulling a bid [3] for Dutch operator KPN. [1] [https:] [2] [https:] [3] [https:]
12:24
UK users face potential return of EU roaming fees
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The UK government confirmed citizens could face high roaming charges when using their mobile phones across Europe if the country fails to reach a formal agreement to leave the European Union (EU). Culture secretary Jeremy Wright told ministers operators could not be prevented from imposing roaming charges on UK citizens if there was no deal between the UK and the EU, although he added the government was working on voluntary agreements. The UK and EU are currently negotiating the wider terms of the country’s exit from Europe, which is scheduled to take place on 29 March. However, failure to reach an agreement would complicate matters, as no regulations would be in place on the amount European operators could charge UK operators when their customers travel across the continent. Roaming charges across the EU were scrapped [1] in June 2017. Deal or no deal Wright’s comments follow the emergence of a leaked piece of legislation this week, which revealed consumer groups had urged the government to ensure there would be no roaming charges in the event of a no deal. However, “after careful consideration, the government decided not to adopt this proposal”, notes alongside the legislation showed. The Guardian reported that Wright was responding to a question in parliament from the country’s shadow culture secretary Tom Watson, when he made the admission. Wright said “the availability and pricing of mobile roaming in the EU would be a commercial question for the mobile operators”. “Many mobile operators, including those who cover over 85 per cent of mobile, have already said they have no current plans to change their approach to mobile roaming after the UK leaves the EU,” he added. Watson argued such operator assurances were not enough: “The reason the EU introduced free roaming in the first place is because the telecoms companies could not be trusted to give consumers a fair deal.” If roaming charges are restored, the UK government plans to introduce new rules ensuring users are alerted once they reach a £45 limit. [1] [https:]
8:43
Google launches encryption tool for budget phones
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Google unveiled a new encryption standard for its Android platform designed specifically for devices with low processing power. Eugene Liderman, director of mobile security strategy for Google’s Android security and privacy team, said in a blog post the company sees the standard, called Adiantum, as a tool to “democratise encryption for all devices”. Encryption has been a requirement for most Android devices since the launch of Android 6.0 in 2015. However, Google made exceptions for devices with low-end processors, such as those that run Android Go, incapable supporting the Advanced Encryption Standard (AES) used by more powerful devices. Adiantum is meant to fill the gap, providing an efficient encryption method for devices which have hitherto been unable to run AES without drastically slowing performance. “This will make the next generation of devices more secure than their predecessors," Liderman wrote. "Just like you wouldn’t buy a phone without text messaging, there will be no excuse for compromising security for the sake of device performance." In addition to smartphones, Liderman said the standard can be applied to a range of devices including smartwatches and connected medical equipment.
February 07, 2019
18:48
Mobile Mix: Moto in the Big Apple
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This week Diana is in New York City where one-time phone giant Motorola held an event to launch a revamped line of its popular G series smartphones. Elsewhere, with MWC19 Barcelona fast approaching and 5G expected to be a major theme, Steve chats with InterDigital about hype surrounding the technology. And Kavit has the news, as Huawei received some respite.
18:39
T-Mobile chief slams merger doubters
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T-Mobile US executives offered little in the way of concrete updates on the progress of a proposed merger with Sprint [1], but slammed analyst suggestions that the deal could be in danger. The operator recently promised regulators [2] it would not to raise prices for three years following the deal, a move New Street Research took as a sign the operators' bid to woo regulators is failing. During an earnings call, T-Mobile CEO John Legere blasted the assertion as "shameful," adding discussions with US regulators are going "extremely well". "Most of what you see going on are very good indications of a dialogue that's moving extremely well, and I look forward to a time when the full narrative can be public." Progress COO Mike Sievert provided an update on T-Mobile's TV effort, revealing plans to debut service in H1 2019 after an expected launch late in 2018 was derailed [3]. He explained the operator delayed its launch primarily to act on feedback from customers in its trial markets, who requested additional features. Sievert said the plan is to allow users to curate their “own media subscription in pieces, $5, $6, $7, $8 at a time” rather than offering a set bundle. He added trials of a companion fixed wireless access home broadband product [4] will begin in the opening half of the year, initially using LTE, with plans to upgrade to 5G at a later date. Meanwhile, CTO Neville Ray said the operator's 5G launch will take place during the back half of the year, when 600MHz-compatible handsets are expected to be available. Sievert said T-Mobile has “big aspirations for incremental revenue from 5G,” as more customers select wireless “instead of other technologies for their connectivity,” citing opportunities in home broadband, enterprise and IoT. Financials T-Mobile posted record-high Q4 2018 service revenue of $8.2 billion, up 6 per cent year-on-year. Total revenue increased by the same percentage to a record-high $11.4 billion. Net income of $640 million was down 76 per cent from $2.7 billion Q4 2017, when the company received a massive one-time boost from changes to the US tax code. Excluding the tax benefit, however, net income would have grown 21 per cent year-on-year. [1] [https:] [2] [https:] [3] [https:] [4] [https:]
18:23
Apple règle une grosse ardoise d’impôts en France
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Apple va payer 500 millions d'euros d'arriérés d'impôts au gouvernement français, ce qui va mettre fin à une enquête de plusieurs années sur la situation fiscale de la société dans l'Hexagone, selon la presse française. Dans un communiqué envoyé à Reuters, Apple confirme qu'un accord a été effectivement passé mais que le montant précis de la somme à régler sera précisé ultérieurement avec la publication de ses comptes. Les autorités françaises ont refusé de commenter, secret fiscal oblige. L'accord entre le ministère des finances et la firme à la pomme intervient alors que la France redouble l'effort destiné à obtenir des géants de la technologie comme Google, Apple, Facebook et Amazon le paiement d'un impôt proportionné à leurs activités dans le pays. Reuters précise qu'en décembre 2018, le ministre français de l'économie et des finances, Bruno Le Maire, a indiqué que ses services souhaitaient mettre en place un impôt national sur les revenus tirés du numérique si les projets similaires étudiés au niveau de l'Union Européenne venaient à échouer. L'initiative française intervient après le paiement par Apple de 14.3 milliards d'euros de remises d'impôts accordées par l'Irlande et jugées illégales par la Commission Européenne. Les fonds sont pour l'heure bloqués, Apple ayant décidé de faire appel de la décision devant la cour de justice de l'Union européenne.
18:22
Vivendi subit un nouveau revers pour le contrôle de Telecom Italia
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Les auditeurs de Telecom Italia ont rejeté la demande de Vivendi visant à avancer d'un mois la réunion des actionnaires. Le groupe français veut procéder au remplacement de cinq des membres du directoire. Dans un communiqué, les auditeurs ont expliqué qu'ils n'avaient pas le pouvoir de convoquer une réunion des actionnaires, tout en confirmant mener leur enquête sur le fonctionnement interne du directoire actuel, selon la requête de Vivendi. La réunion des actionnaires est en principe prévue pour le 29 mars, mais Vivendi a demandé de l'avancer à la fin février, alors que la lutte pour le pouvoir continue entre le groupe français et le fonds d'investissement Elliott Management. Elliott Management, qui a porté récemment sa part dans l'opérateur à 9,4 %, en a pris le contrôle en mai 2018 en s'assurant les votes nécessaires pour nommer les deux tiers des directeurs. Vivendi n'a cessé depuis de faire monter la pression pour reconquérir le pouvoir. Vivendi, qui détient 24 % des parts, cherche à se débarrasser des cinq directeurs appointés par Elliott Management, dans le but annoncé de relancer les performances de l'opérateur. Vivendi accuse Elliott Management d'agir en pur investisseur financier, au nom de ses seuls intérêts, et de tirer avantage de la chute du prix de l'action de Telecom Italia.
18:21
Angela Merkel demande à Huawei des garanties sur les données
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La chancelière Angela Merkel exige d'Huawei et du gouvernement chinois des assurances solides sur l'intégrité des données récoltées en Allemagne avant que l'équipementier soit autorisé à participer au déploiement de la 5G, affirme Reuters. Dans un discours prononcé lors d'un voyage au Japon, Mme Merkel a affirmé qu'il était important pour les autorités allemandes d'exiger de la Chine et de Huawei de garantir que le fabricant ne « repassera pas simplement les données à l’État ». Ces commentaires suivent les révélations de la presse allemande sur un projet de Berlin visant à changer la législation sur la sécurité des données afin d'imposer des critères que Huawei serait incapable de remplir. Bien que des politiciens à Berlin ait appelé à agir, les opérateurs sont plus prudents. Un rapport interne réalisé par Deutsche Telekom et dont le contenu a fuité la semaine passé montre notamment qu'interdire le fabricant en Europe y retarderait de deux ans l'implémentation de la 5G.
18:21
Orange soutient une start-up qui applique l’IA à l’évaluation de solvabilité
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Orange Digital Ventures figure parmi les investisseurs qui ont participé à un tour de table de 11 millions de dollars destiné à financer Aire, une start-up qui veut faire appel à l'intelligence artificielle pour évaluer la solvabilité des demandeurs de crédits. Aire compte utiliser les fonds pour améliorer sa plate-forme et se lancer aux États-Unis. En plus de la branche d'investissement du groupe Orange, Experian Ventures, Crane Venture Partners, White Star Capital et Sunstone Capital ont participé au tour de table. Aire fournit des plates-formes destinées à permettre aux institutions financières d'évaluer la solvabilité des demandeurs de crédit à partir de critères élargis par rapport aux éléments utilisés traditionnellement par les organismes spécialisés. Aire utilise également des technologies d'apprentissage-machine (« machine learning ») pour prédire le comportement futur des consommateurs. La technique, selon Aire, permet une évaluation plus précise des risques liés aux demandes de crédit appuyées sur un historique limité ou encore de groupes sociaux qui n'ont qu'un accès restreint aux services financiers classiques. Dans un communiqué, Orange explique que la technologie Aire correspond bien aux objectifs de développement d'Orange Bank en Europe et d'Orange Money en Afrique.
18:20
Altice compterait de lâcher du lest au Portugal
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Altice Europe envisagerait apparemment de se séparer de ses activités fibres au Portugal, une nouvelle mesure destinée à répondre aux préoccupations relatives à ses emprunts. En 2015, le groupe avait racheté Portugal Telecom à l'opérateur brésilien Oi, alors en difficulté financière. Puis Altice a multiplié les acquisitions à crédit des deux côtés de l'Atlantique, laissant planer des doutes sur sa capacité à rembourser, spécialement alors que SFR, l'opérateur français qui est le pilier du groupe en Europe, doit lutter pied à pied sur un marché difficile. Il ne s'agit pas seulement de réduire la dette. Comme Reuters le suggère, Altice doit mettre ses finances en ordre avant de déployer la 5G ces prochaines années, avec de grosses dépenses à prévoir en terme de spectre et d'infrastructures. Une revente du réseau fibre au Portugal serait cohérente avec l'annonce en France en novembre 2018 de la revente de parts d'infrastructures fixes à des sociétés d'investissement. Altice a également vendu une part de 75 % dans la société de gestion de tours de télécom montée au Portugal. Citant des « sources proches du dossier », Reuters explique que les actifs portugais pourraient être proposés au mieux offrant d'ici une quinzaine de jours. Altice a apparemment demandé conseil à la banque Lazard, tandis que parmi les possibles investisseurs figurent les fonds KKR et Morgan Stanley Infrastructure Partners. Morgan Stanley faisait partie du consortium qui a racheté les parts dans les activités tours d'Altice au Portugal.
18:19
Orange renforce son offre de cybersécurité
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Orange vient d'annoncer l'achat de SecureData, une société spécialisée dans les services liés à la cybersécurité, opération qui doit permettre au groupe de renforcer sa position stratégique sur ce secteur. SecureData passe pour être le plus gros fournisseur de services de cybersécurité au Royaume-Uni, premier marché d'Europe. La société y emploie plus de 200 personnes, ainsi qu'en Afrique du Sud, et elle est « bien positionnée sur les marchés stratégiques britannique et anglophone ». SecureData a affiché en 2018 un CA d'environ 50 millions d'euros, avec une croissance d'environ 20 % par an depuis 2016. Les termes financiers de la transaction n'ont pas été dévoilés. Ce marché marque un regain d'intérêt d'Orange pour le Royaume-Uni, où le groupe français avait lâché du lest en 2015 en revendant ses parts d'EE à BT. En parallèle avec les activités d'Orange Cyberdefense en France et en Belgique, SecureData aura accès à la force de vente d'Orange Business Services et à une base de clientèle comptant plus de 3 000 sociétés multinationales.

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