Volume 06 _ Issue 12 _ Dec 2015 SAMENA TRENDS EXCLUSIVELY FOR SAMENA TELECOMMUNICATIONS COUNCIL'S MEMBERS BUILDING DIGITAL ECONOMIES

A SAMENA Telecommunications Council Newsletter

Ooredoo Group PTCL Batelco Etisalat Group Omantel

Chairman Vice-Chairman Director Director Director Dr. Nasser Marafih Mr. Walid Irshaid Mr. Ihab Hinnawi Dr. Kamal Shehadi Mr. Talal Said Advisor to Chairman CEO & President Group CEO Chief Legal & Marhoon Al Mamari Regulatory Officer CEO

Orange, JTG STC Group Turk Telekom Group VIVA Telecom - Kuwait SAMENA Council

Director Director Director Director Director Mr. Jerome Henique Dr. Khaled Biyari Mr. Hakam Kanafani Mr. Salman Bin Abdul Mr. Bocar A. BA CEO Group CEO Chief Advisor & Board Aziz Al Badran CEO Member CEO

Telecom Operators’ leadership in the digital economy: Catalytic roles toward accelerating socio-economic development and innovation enablement in and beyond 2016

www.samenacouncil.org SAMENA CONTENTS VOLUME _ 06 _ISSUE _ 12_dec 2015 TRENDS

The SAMENA TRENDS newsletter is wholly REGIONAL & MEMBERS owned and operated by The SAMENA UPDATES Telecommunications Council FZ, LLC 24. Members news (SAMENA Council). Information in the newsletter is not intended as professional services advice, and SAMENA Council 35. Regional news disclaims any liability for use of specific information or results thereof. Articles REGULATORY & POLICY and information contained in this publication are the copyright of SAMENA UPDATES 42. Regulatory news Telecommunications Council, (unless otherwise noted, described or stated) and cannot be reproduced, copied or 50. ITU Global Symposium for Regulators printed in any form without the express 2015: Mind the digital gap written permission of the publisher. 52. A snapshot of regulatory activities in The SAMENA Council does not necessar- SAMENA region ily endorse, support, sanction, encour- age, verify or agree with the content, Regulatory activities beyond the comments, opinions or statements made 60. in The SAMENA TRENDS by any entity SAMENA region or entities. Information, products and services offered, sold or placed in the WHOLESALE UPDATES newsletter by other than The SAMENA 76. Wholesale news Council belong to the respective entity or entities and are not representative of The SAMENA Council. The SAMENA EDITORIAL TECHNOLOGY UPDATES Council hereby expressly disclaims any 03. 79. Technology news and all warranties, expressed and im- plied, including but not limited to any 87. High taxation and regulatory fees: A warranties of accuracy, reliability, mer- challenge for the telecommunications chantability or fitness for a particular industry in the region? purpose by any entity or entities offer- ing information, products and services in this newsletter. The user agrees that The REGIONAL SATELLITE UPDATES SAMENA Council is not responsible, and 89. Satellite news shall have no liability to such user, with PERFORMANCE respect to any information, product or service offered by any entity or entities 22. Taxation Landscape Across in this newsletter. The SAMENA Coun- cil’s only liability in the event of errors the Regions shall be the correction or removal of the erroneous information after verification.

Editor-in-Chief Bocar A. BA

Contributing Editors Izhar Ahmad Javaid Akhtar Malik

Contributing Members Analysys Mason A.T. Kearney

Publisher SAMENA Telecommunications Council

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SAMENA TRENDS _ DEC 2015

Telecom Operators’ leadership in the digital economy: Catalytic roles toward accelerating socio-economic development and innovation enablement in and beyond 2016

Sufficient scholarly evidence exists to support the risks of confrontation with government bodies. the socio-economic development role that And, on the other hand, a position on a tax telecommunications services and the adoption proposal against the interest of the private sector of ICT play in both developed and developing as a whole, could create complexities of its own. economies. Equally so, however, substantial proof exists that imposing costs on telecommunications In either of the above scenarios, the solution products and services, thereby directly or indirectly seems to lie only in understanding and visualizing transferring the fiscal burden to the end-customer, the policy imperative that be: Understand the role results in impeded adoption of digital services. of communications technologies and services and make the adoption of ICT and telecommunications A major reason why many of the markets within affordable at all tiers of the society by rationalizing the SAMENA region have appeared, and some all forms of taxation to encourage sustainable continue to do so, in ITU’s list of top 50 nations investment in infrastructure development. where ICT-specific taxes and tariffs continue to be imposed, is mostly because many incorrectly The Year 2016 is upon us, and it is ever more continue to see telecommunications and ICT as important that we enter the new year with new luxury and not as necessity. Moreover, in many visions and resolutions on this important matter. countries, raising tax burden on ICT continues The government sector must playing a central to be exploited as a means to make-up for the and a visionary role in enabling and embracing loss in government revenues, caused by poor tax the next way of Internet connectivity. This means, collection systems and absence of transparency in perspectives and policies have to be based on governance. achieving more and connecting more. In the age of Internet of Things, whereby more of everything will The end result is expectedly nothing more than be connected in very sophisticated and complex delayed or altogether reduced investment in digital ways, the continuing lack of rational taxation communication infrastructure development, and policies would not only impede digital progress, it hence further delay in making progress in economic would be akin to regression in our technological development. Such a situation poses formidable and consequential socio-economic development. challenges and affects all the stakeholders: The presence of comprehensive, rational taxation For policy-makers, it is the renewal of the vision policies and effective government strategies for into the future that poses the biggest challenge. mitigating the loss of tax revenues would help In other words, the flawed understanding or create more direct ways to generate revenues perspective that access to faster broadband for national governments, and would help fulfill and ICT services is a luxury good -- rather than national socio-economic agenda more naturally. a development tool, which, in a short period of time, can physically transform a society-- and SAMENA Council wishes national policy-makers, overcoming it, is the biggest barrier. Only a shift the regulatory bodies, industry stakeholders, and in national priorities and gaining perspectives on the members of its community a very successful societal needs can break this barrier. and prosperous Year 2016. We look forward to being at the disposal of both the public and For telecommunications or ICT service providers, private sectors to help needs and ideas coagulate among other challenges related to tax burdens, into implementable action plans that foster digital the critical challenge of balancing tax compliance growth. risks with customer loss or being disadvantaged by competition, presents itself as a major feat. That is, an operator’s stance on a particular taxation issue in favor of customers or the industry could increase

Yours truly,

Bocar A. BA Chief Executive Officer SAMENA Telecommunications Council

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Dr. Nasser Marafih is Member of the Ooredoo Group Board and Advisor to the Ooredoo Group Board‘s Chairman. He was Chief Executive Officer of the Ooredoo Group from 2006 until November Chairman 2015. In his role as CEO, Dr. Nasser has spearheaded Ooredoo’s global growth in recent years to expand to 15 operations in Dr. Nasser Marafih Middle East, North Africa and South East Asia, including Ooredoo’s acquisition of Wataniya Telecom, Ooredoo’s strategic partnership Advisor to Chairman with ST Telemedia in Singapore, as well as the company’s purchase of a controlling stake in Indosat of Indonesia. Dr. Nasser ranked Ooredoo Group #41 among the 100 powerful Arab leaders in 2015.

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Ooredoo is a leading international communications company delivering mobile, fixed, broadband internet “By investing in network excellence and and corporate managed services tailored to the needs of consumers a superior customer experience, we have and businesses across markets in the Middle East, North Africa and positioned our operations as leaders in Southeast Asia. As a community- focused company, Ooredoo is guided data services, B2B innovations, and as by its vision of enriching people’s lives supporters of people’s digital lifestyles.” and its belief that it can stimulate human growth by leveraging communications to help people achieve their full potential. Ooredoo has a presence in markets such as • Ooredoo’s flagship initiatives footprint. Among the milestones Qatar, Kuwait, Oman, Algeria, Tunisia, were recognized at the 17th achieved by this initiative, the Iraq, Palestine, the Maldives, Myanmar annual World Communication Indonesia clinics received three and Indonesia. The company was Awards: “Best Brand Campaign” Millennium Development Goal named “Best Mobile Operator of the for the Simply Do Wonders Awards in 2015 from the UN. Year” at the World Communication campaign with Leo Messi; • In efforts toward becoming a Awards 2013. “Digital Experience Award” for leading entertainment provider Ooredoo’s Mozaic GO App; and in the SAMENA region, Ooredoo The company reported revenues the “Social Contribution Award” signed an exclusive multi-year of US$ 9.1 billion in 2014 and has for Ooredoo’s Mobile Health OTT video deal to offer more a consolidated global customer Clinics. “smart entertainment” options base exceeding 115 million users. • Ooredoo continued to see for its customers. Ooredoo’s shares are listed on the strong returns from its focus on • Ooredoo took a leadership role Qatar Exchange and the Abu Dhabi providing innovative business to build and fund online start- Securities Exchange. services across the Middle ups, with ventures ranging from East, North Africa, and Asia. In online retail and marketplaces Corporate Achievements Ooredoo’s home market of Qatar, to classified services. It also co- • Delivering impressive results in the company pioneered a range created the Asia Pacific Internet 2015, reaching an all-time high of of services aimed at the SME Group (APACIG) to this effect. more than 114 million customers market, including its Ooredoo • 10. Ooredoo was awarded the across its footprint, Ooredoo won Web Builder solution. GSMA’s Connected Women: the “Best Operator” award at the • Ooredoo was recognized at the Leadership in Industry Award for Telecoms World Middle East CommsMEA Awards, winning a its work to empower women in Awards 2015 and “Telecoms CEO total of four top prizes including Myanmar. of the Year” award for Dr. Nasser the highest honor, “Overall • Utilizing its new M2M service, Marafih at the CEO Middle East Operator of the Year” for Ooredoo Ooredoo started offering its Awards. Group, and a new category, the smart car technology solution • Ooredoo pledged its commitment “Network Optimization Award” that allows customers to switch to the United Nations Sustainable for Ooredoo Qatar’s inspiring on the air conditioning in their Development Goals (“Global initiative to enhance the Ooredoo car via their smartphones. Goals”), which aim to eradicate Supernet. The company also defined its extreme poverty, improve the • Ooredoo’s data revenues leadership role in smart-city lives of people and create an represented more than 34% of technologies across its global all-round healthier world for total revenues – a new record for footprint. In December 2014, tomorrow. the company. The company also Ooredoo Qatar was confirmed held data leadership positions as a Lead Partner in the Smart in five out of nine key markets Cities Council, a leading industry in 2014 – Algeria, Iraq, Qatar, coalition formed to accelerate Tunisia and the Maldives. Well the move to smart, sustainable into August 2015, Ooredoo cities. continued to lead in data services • Ooredoo’s range of M2M by enhancing its offerings and services for businesses cover a by investing in infrastructure multitude of essential industries, to support customers’ digital including the energy generation lifestyles and the development of and consumption sector in Qatar. knowledge-based economies. The company pioneered smart- • Ooredoo’s Mobile Health Clinic metering solutions for residential initiative, launched in 2013 with and business complexes. the support of Ooredoo Group, has continued to expand its reach across Ooredoo’s international

page_5 BOARD MEMBERS’ AchievementS

SAMENA TRENDS _ DEC 2015

Mr. Walid Irshaid is the Chief Executive Officer and President of Pakistan Telecommunication Co. Ltd. Mr. Irshaid also served as the President of Middle East and Africa of Flag Telecom Group Ltd. He Vice-Chairman has worked for more than 25 years in the telecommunications and Mr. Walid Irshaid IT industries based in Dubai. CEO & President Before joining FLAG, he served as Director General of the Palestine Telecom Corporation (PALTEL) and before then worked as PTCL Managing Director for the Investcom Group in Beirut developing data & business communication services in Lebanon.

He also spent 17 years with Emirates Telecom where he was responsible for the development of a number of major projects and key services.

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PTCL is the largest ICT services provider in Pakistan, encompassing fixed line voice telephony, broadband “PTCL is in a strong position to lead the internet, digital television and corporate solutions for organizations. telecom industry towards a brighter future. The company has revolutionized the broadband eco-system of the country To cater to the increasing data needs, PTCL by providing high-speed fixed and wireless broadband services at introduced the next generation wireless affordable rates nationwide. broadband in Pakistan.”

PTCL holds credit for pioneering and steadily revolutionizing the broadband culture in Pakistan. PTCL’s ability to support both individual and corporate customers on a cross-border basis is anchored by its extensive network of submarine cables. Apart from a wide array of services for businesses and enterprises, PTCL also offers white- label products and services, and maintains a network of earth stations.

Corporate Achievements • Swiss organization ICERTIAS’s survey undisputedly established PTCL as the most preferred broadband service provider in Pakistan, a country of over 190 million citizens. • As the largest ICT services provider in Pakistan, PTCL took decisive steps to promote e-commerce by collaborating with a leading e-commerce platform and through attractive discount options on its fixed- line and next-generation wireless products. • PTCL extended technology support to industry and Management System in Pakistan. anywhere and anytime. enterprise growth through its • PTCL sponsored R&D in sports • PTCL introduced a collaborated its GPON technology, Triple engineering to promote initiative to enrich video and Play, Smart Link, I-Sentry, Voice professional cricketers’ mobile content delivery for Over IP, High Speed Broadband, performance management and its customers by leveraging Primary Rate ISDN (PRI), Basic boost potential. Akamai’s globally-distributed Rate Interface (BRI), Cloud • PTCL expanded footprint of its Intelligent Platform to deliver its Computing, Data Hosting and leading high-speed Charji EVO solutions across its nationwide Data Management services. wireless broadband service in telecoms infrastructure. • PTCL implemented its strategic Pakistan, complemented by human resource development Pakistan’s first 4G LTE CharJi EVO agenda to enhance employment Tab, supported by full backward engagement and productivity compatibility for seamless through greater flexible work 3G connecitivity throughout timings under its “WorkEase” Pakistan. initiative. • PTCL introduced another • PTCL defined a new direction in first SmartLink service for its Pakistan’s e-learning and online customers for dialing and education delivery becoming receiving landline calls through the provider of the fully mobile phones on-the-go, managed Blackboard Learning

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Mr. Ihab Hinnawi was appointed as Group A/CEO in February 2015. He joined Umniah as Chief Executive Officer in 2009, drawing on over 20 years of extensive managerial experience to lead the Director company’s industry-pioneering operations. Prior to assuming the CEO role at Umniah, Mr. Hinnawi held the role of General Manager Mr. Ihab Hinnawi Enterprise Division at Batelco Bahrain and subsequently the role of CEO at Batelco Jordan. His repertoire of key expertise portfolio Group CEO includes increasing revenue, effecting management change, Batelco developing new businesses, managing high stake negotiations, strategic planning, developing key partnerships, building corporate and marketing strategy, effecting risk management, and leading organizational restructuring.

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Batelco, is the leading integrated Corporate Achievements • Batelco achieved Gold status in communications’ provider in the • Batelco Group, with operations the Palo Alto Networks NextWave Kingdom of Bahrain and a company across 14 countries achieved Programme, the first company in of reference among the region’s strong results for the nine-month Bahrain to achieve this milestone. key telecommunications players period ended 30 September • In another first in the Kingdom, for innovation and customer 2015, reporting a net profit of Batelco, as part of its business experience. Batelco serves both the US$108.5 million and net assets empowerment initiatives, made corporate and consumer markets valuing at US$1,504 million. cloud-based services available to in one of the most liberalized Overall, Batelco’s overseas its customers and clients. and competitive environments in operations performed well and • In 2014, Batelco won the the SAMENA region. It delivers at the end of the nine month “Customer Service Provider of the cutting-edge fixed and wireless period, 58% of Revenues and Year” at the annual CommsMEA telecommunications services to its 57% of EBITDA were attributable Awards, the “Best Contact customers in Bahrain. Batelco offers to operations outside of Bahrain. Centre Award” at the Customer end-to-end telecommunications • Batelco’s mobile subscriber base Experience Management solutions. As a part of its commitment has increased by 10% year-on- (CEM) in Telecoms: Middle to continuously enhance its networks year with its 4G LTE products and East Summit Awards, and the in order to provide customers with services playing a significant part “eEconomy Award” at the Bahrain unrivalled services and solutions, in the growing numbers, due International eGovernment Batelco has enhanced its 4G LTE to the popularity of its bundled Forum, and was also presented network speed from up to 100 Mbps packages with the latest smart with the “ICT Company of the to up to 150 Mbps. Batelco Group has devices. Year Award” at MEET ICT 2014. evolved from being a regional Middle Eastern operation to become a major communications company with direct and indirect investments across 14 geographies, namely Bahrain, Jordan, Kuwait, Saudi Arabia, Yemen, “We operate in very diverse markets, each Egypt, Guernsey, Jersey, Isle of Man, Maldives, Diego Garcia, St. Helena, with its unique needs. Accordingly, we Ascension Islands, and Falklands. are continuing to undertake significant investments depending on the various needs of our individual operations, for the benefit of the group as a whole.”

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Dr. Kamal S. Shehadi is Etisalat Group’s Chief Legal and Regulatory Officer since 2012. Prior to that, he was Senior Vice President for Regulatory Affairs at Etisalat Group. Kamal is currently the chair Director of the GSMA’s Chief Regulatory Officers’ Group for Arab States. Prior to joining Etisalat Group, from 2007 to 2010, Kamal was the Dr. Kamal Shehadi Chairman and Chief Executive Officer of the Telecommunications Chief Legal and Regulatory Authority, Republic of Lebanon. He chaired the ITU’s Global Industry Leaders’ Forum and the Global Symposium for Regulatory Officer Regulators in 2009. He has published widely on private participation in infrastructure, telecommunications liberalization and regulation, Etisalat Group public finance, Euro-Mediterranean economic relations, and many other public policy issues.

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Etisalat is the UAE’s leading telecommunications operator, one of the largest corporations in the “Responsible for identifying regulatory or GCC, and one of the world’s leading telecom groups in emerging markets, public policy opportunities to create value, ranking amongst the most profitable managing regulatory risk, and contributing telecom groups in the world. Apart from establishing several “firsts” over to shaping the regional and international almost four decades of operations, Etisalat has deployed many innovative policy and regulatory environments” mobile and fixed technologies that have helped the UAE maintain its position as a leading global ICT economy.

The company has the widest coverage of 3G and 4G mobile technologies in the UAE and has established an extensive Fibre-To-The-Home (FTTH) network, making the UAE rank as the most fiber-connected country in the world with 85 percent fiber-optic penetration.

As a leading integrated telecom operator and ICT solutions provider, Etisalat provides a range of end-to- end managed solutions to a range of industry verticals. Etisalat has also pioneered several “green” initiatives such as Emirates Energy Star (EES) which have directly impacted the UAE’s carbon footprint by reducing CO2 emissions.

Corporate Achievements • Etisalat Group, the leading started allowing foreign and • Etisalat Carrier & Wholesale Telecommunications Operator institutional investors to own Services partnered with Telecom in Middle East, Africa and Asia, Etisalat’s shares. Italia to extend video transport was ranked thirtieth amongst • Etisalat increased its capital services availability across LinkedIn’s “EMEA’s 2015 Top 100 spending in the UAE by the globe. The partnership Most InDemand Employers.” 40%, focusing on network was built on the strengths of • Etisalat won “The Best Use of modernization and enhancing TI Sparkle’s global network Mobile for Retail, Brands & eLifeproduct portfolio and ICT focused in Europe, Africa, the Commerce” category for its capabilities. Americas and Asia Regions, with Mobile Cashier product offering • Etisalat took a leadership role in Etisalat’s leading network and and “The Mobile Connect Award creating smart living possibilities leading position in the UAE, Gulf for Best Authentication & Identity by introducing the Smart Living Cooperation Council (GCC) area, Solution” for Etisalat Mobile experience to customers in the and the Middle Eastern region. Connect service at GSMA’s Global UAE, allowing the residents to • Etisalat UAE’s mobile app Mobile Awards 2015. Etisalat was monitor, automate, secure, and crossed more than one million also recognized for its “Data control their homes remotely downloads since launch in the Center Project of the Year” at from anywhere and at any second quarter of 2014. The app the Network World Middle East time, using a phone, tablet or a has registered over 56 percent Awards. computer. increase in downloads in 2015 • Etisalat continues to be the • Etisalat became one of the first due to enhancements focused on most valuable company in the telecom operators to carry out improving customer experience. UAE as well as in the region, NFV/SDN deployment, aimed Etisalat’s survey revealed with diversified portfolio at enhancing user experience 96 percent users frequently across 18 markets, 170 million and increase service agility and accessing the app. The number aggregate subscribers across innovation. of payment transactions on the its international footprint, and • As part of its ongoing support app increased by 70 percent in with some of the highest EBITDA to people with special needs, the first two quarters of 2015. margins in the telecom industry. Etisalat initiated a special offer Earlier this year, Etisalat also of 50 percent discount on prices of mobile internet packages and video calls.

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Mr. Talal Said Marhoon Al Mamari is the Chief Executive Officer of Oman Telecommunications Company. He is also the Vice Chairman / Director of Worldcall Telecom Limited (an Omantel Company in Director Pakistan).

Mr. Talal Said Marhoon He has 22 years of experience in telecom sector working for Omantel. Prior to his appointment as CEO, he held several Al Mamari leadership positions including his last stint as Chief Financial CEO Officer of Omantel.

Oman Telecommunications Talal Al Mamari has had played instrumental role in different Company initiatives and projects carried out by the Company including the IPO in 2005, the restructuring of Omantel by bringing the mobile and fixed operations together and later the full legal merger of Oman Mobile with Omantel. He sits on the boards of several companies and investment funds including Worldcall Telecom, Infoline, United Securities Investment Fund and Al Roya Fund (Al Khair Investment Fund compatible with Sharia).

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Omantel is the pioneer of total communications solutions in the “Telecommunications infrastructure Sultanate of Oman, offering the widest choice of state of the art is an enabler for economic and social services with the broadest network coverage. Oman Telecommunications growth since it is an essential tool for Company (Omantel) is the first empowering people at the same time telecommunications company in Oman and is the primary provider of as creating a business climate that internet services in the country. nurtures innovation and efficient business Omantel is considered one of the most prominent and competitive wholesale processes.” telecommunication providers in the Middle East region. In addition it is one of the leading companies in the field of submarine cable networks and a key participant in several submarine Corporate Achievements from the Internet protocol and cables, which link Asia, Europe and • Omantel, according to the annual value added services provided America passing through the Middle brand survey of Brand Finance, by SIP. East region, meeting the international was voted as the “Most Trusted • Omantel continued its capacity requirements of clients Brand” in the telecom sector in commitment of supporting locally and internationally, thereby the Sultanate. the growth of SMEs by all sustaining the Company’s leading • Omantel moved 8 positions means to ensure their viability position among its competitors. upwards to become 33rd among and competitiveness in the the 50 “Most Valuable Brands” in marketplace. It celebrated the As a pillar of the Omani economy, the MENA region. The Omantel winners of the Omantel Business Omantel has been a leading player brand also received (AA-) “very Excellence SME Awards. in Oman’s progress and national strong” rating in terms of brand • As the owner of Oman’s largest development. Omantel acquired a strength. IP network, Omantel launched a 65% share in WorldCall Pakistan in • Omantel launched Session world-class IPTV platform by du April 2008. Initiation Protocol (SIP) Trunking to offer its customers a tested service for its corporate and high-quality TV viewing customers, enabling a large experience. number of enterprises to benefit • In 2Q-2015, Omantel realized revenue growth rate of 7.5% to R.O 256.6 million as compared with R.O 238.6 million in the corresponding period of 2014. It’s revenue growth was mainly driven by domestic retail revenues which have recorded a growth of 8.3%. All major segments – Consumer, Corporate and Wholesale revenues recorded a growth.

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Mr. Jerome Henique has over 20 years of experience in the ICT field, during which he worked in a diverse array of markets that span France, Spain and Senegal, cultivating an extensive Director experience in the management of international teams, consumer behavior, strategic planning and corporate communications. Prior Mr. Jerome Henique to joining Orange Jordan as CEO in September 2015, he worked as CEO Deputy CEO of SONATEL Group — an Orange subsidiary based in Dakar covering four countries in West Africa — between 2010 and Orange, Jordan 2015, where he also served as Chairman and member of several of the group’s boards. His insightful leadership and solid marketing Telecom Group and customer centricity background contributed to SONATEL’s booming sales record over the past four years and helped propel the operator’s rapid growth. He has been a member of Orange Executives Network. He also worked as Chief Marketing Officer of Wanadoo Spain from 2003 until 2006, managing the company’s nationwide marketing operations.

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Orange Jordan is a leading provider of Corporate Achievements • In July 2015, Orange Jordan integrated communications services • Orange Jordan won the became the first operator to in the Kingdom, with a broad lineup “Customer Delight Award” in launch 4G/ LTE roaming services of fixed, mobile and Internet services the 2015 Middle-East, North with the first two international and an expanding customer base Africa & Asia Awards (MENAA) roaming agreements signed now exceeding 4 million. Today, the for its efforts in delivering an with Saudi telecom operators. company constitutes the backbone unmatched customer experience It continued its data roaming of Jordan’s ICT landscape, offering to each and every customer; bilateral partnerships in the advanced wireless broadband, digital a primary objective of the Middle East, Asia, Europe, and TV, and a host of mobile services. operator’s Essentials 2020 vision. America. • Orange Jordan conducted its “A • Orange Jordan’s 3G network Leveraging on its international brand Good Number for a Good Cause” coverage exceeds 90% of the status, Orange Jordan has contributed campaign in support of its long- population, whereas its 2G significantly to placing the Kingdom term CSR strategy, to raise funds network reaches more than 99%. on the regional telecommunications to support the King Hussein By end-2015, Orange Jordan’s map, and it has been celebrating Cancer Foundation. 4G network is expected to reach milestones ever since. • Orange Jordan launched its more than 85% of the Jordanian Business Innovation Growth (BIG) population. the company launched its new startup accelerator program strategy for the years 2015-2020 aimed at young entrepreneurs. under the title: “Essentials 2020” BIG will help Jordanian startups which focuses mainly on providing expand into new markets and unmatched customer experience. reach more customer segments. To achieve this goal, the company • Orange Jordan continued will invest more than JD 300 million its leadership as the digital between 2015 and 2018, including a trendsetter in Jordan, as JD 200 million investment in its fixed evident in the company’s and mobile network infrastructure. efforts in redefining broadband benchmarks, expanding upon its fiber connectivity, and offering 4G services.

“With the recent launch of Orange’s Essentials2020, the operator has defined for itself a series of ambitious targets. I look forward to collaborating with the team toward ensuring the realization of our ambitious strategy, delivering an unmatched experience to Orange Jordan’s customers.”

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Dr. Khaled Bin Hussain Biyari has been Chief Executive Officer of Saudi Telecom Company since April 2015. Dr. Bin Hussain Biyari served as Senior Vice President of Technology and Chief Operating Director Officer of Saudi Telecom Company until April 27, 2015. He served as Senior Vice President of Technology & Operations at Saudi Dr. Khaled Biyari Telecom Company. Prior to joining STC, he served as the Senior Group CEO Vice President and General Manager at Advanced Electronics Company (AEC). Dr. Bin Hussain Biyari serves as the chairman of STC Group STC Advanced Solutions. He was twice-elected chairman of the IEEE Saudi Section. He also served as a member of the committee responsible for developing the Long-Term National Plan for Electronics Industry in the Kingdom. In 2009 he was elected by the Council of Ministers to the BoD of the Electricity and Cogeneration Regulatory Authority (ECRA) in Saudi Arabia.

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Saudi Telecom Company (STC) Corporate Achievements transactions without the need for is the leading provider of • Saudi Telecom Company (STC) intervention by a service provider, telecommunications services in demonstrated the latest 4.5G thus ensuring confidentiality the Kingdom of Saudi Arabia and (LTE TDD+) Technologies, which and complete privacy. It won it is among the largest ICT service will enable STC network to deliver Cisco’s “Outstanding Self-Service providers in the region. Its Saudi the fastest LTE data rates in the Customer Experience” award. operations generated over SAR Middle East, Europe, and North • STC launched Big Data and 46.108 billion in revenues in 2014. Africa. data analytics, and took steps STC empowers more than 100 • STC was ranked at 240 as one of to boost innovation and million consumers across the globe the 500 most valuable brands entrepreneurship environment in with customer-centric, cutting-edge in the world, according to the order to transform creative ideas solutions at the forefront of the Global 500 2015 report by Brand and projects into reality across a knowledge economy. Today, STC Finance, the leading independent number of business sectors. comprises 16 local and international brand valuation consultancy. • STC expanded its satellite companies in 10 countries, with a • STC continued its investment telecommunications services fiber-optic cable network spanning in infrastructure, advanced portfolio by completing the 137,000 kilometers across Asia, the networks, and new technologies, establishment of a new ground Middle East, and Europe. Based in the delivering strong financial station in collaboration with Kingdom of Saudi Arabia (KSA), where performance, especially the Arabsat, operating with the it is the top-ranked telecom operator, 10% increase in consolidated satellite Badr5. STC’s network covers more than 99% revenues and the 3.7% increase • Being a socially responsible of populated areas, with a mobile in EBITDA for the 9 months organization, STC continued network capacity of 28 million lines, period as compared to the same to place emphasis on sound 8.4 million landlines, and broadband period in 2014. corporate governance practices, capacity of 3.75 million. Believing in • STC took leadership in transparency, fairness practices, the importance of its customers and offering self-services customer and effective corporate fulfillment of their needs, STC has experience, allowing customers governance. adopted a new Broadband Strategy to take full charge of their that aims to support and re-enforce its leading competitive position. “For an operator in general, if it’s to capitalize on its major asset – which is the network – I think we have the right to venture into things that are attached to it, such as M2M, IoT and cloud-based services.”

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Mr. Hakam Kanafani serves as Chief Adviser to the Chairman of Türk Telekomünikasyon A.S and is member of the Turk Telekom’s Board. Previously, Mr. Kanafani served as the Group Chief Executive Director Officer at Türk Telekom. He served as Chief Business Development Officer and Chief Synergy Officer of Oger Telecom Ltd. He served Mr. Hakam Kanafani as Chief Operating Officer of the PalTel Group, where he led Chief Advisor & Board strategy, acquisitions and financial consolidation of the Group. Prior to this, Mr. Kanafani served as the Chief Executive Officer Member of Jawwal, Palestine’s first private cellular network. Mr. Kanafani is in GTB’s Power100 list for Telco executives worldwide and named Turk Telekom Group Best CEO for Investor Relations in Turkey in 2011, 2012, and 2013. Türk Telekom, Turkey’s leading communication and convergence technologies company, successfully continues to sustain its mission of providing Turkey with the latest communication technologies.

Today, Türk Telekom is Turkey’s leading integrated telecommunication and technology services provider with its Group Companies. It offers its customers a wide range of services from fixed voice to mobile voice, data, Internet, and innovative convergence technologies.

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Türk Telekom, Turkey’s leading communication and convergence technology group, offers integrated “If the telecommunications industry telecommunication services from fixed voice and GSM to broadband. had not introduced innovations, today’s As of 30 September 2015, Türk Telekom Group has 12.9 million world would not have been possible. access lines, 7.8 million broadband From payment systems to HR and from and 17.0 million mobile subscribers. Group companies capitalize on marketing communications to logistics, its modern network infrastructure spanning the entire country to offer we need to explain better the role the individual and corporate customers a wide range of services. Türk Telekom telecommunications industry plays in owns a 100% shares in broadband every field.” provider TTNET; one of the three mobile operators in Turkey, Avea, the convergence technologies company Argela, IT solution provider business grew by 14% year- Akademi, BuluTT Radyoloji, and Innova, online education company on-year, driven by continued BuluTT e-posta. Sebit, call center company AssisTT, subscriber growth and mobile • Türk Telekom obtained the wholesale data and capacity service data revenue increase. Mobile strongest position in strategic provider Türk Telekom International subscribers increased to 17 bands such as 800 MHz and 1800 AT AG, and its subsidiaries. 55% of million, with a 50% postpaid MHz, the most essential bands Türk Telekom shares belong to Oger ratio (the highest in the market). for 4G LTE. The company is also Telekomünikasyon AŞ and 30% of Data revenues increased by the only operator that has higher shares belong to Turkish Republic 38% year-on-year supported by spectrum market share than its Prime Ministry Under-secretariat ongoing increase in smartphone subscriber market share. of Treasury. The remaining 15%is penetration at 64% (also the • Türk Telekom continued to publicly traded. highest in the market). expand its fiber network, with • Türk Telekom Group gained the network’s total length now Corporate Achievements more than 12.9 million access exceeding 206,000 kilometers in • Türk Telekom, with its group lines and 7.8 million broadband Turkey, one of the largest markets of companies, and as Turkey’s subscribers. in the SAMENA region. leading communication and • Türk Telekom, a member of Cloud • Türk Telekom completed its share convergence technologies Security Alliance, offers various transfer of Avea and became the company, continued to options under cloud services, sole owner of the company. successfully sustain its mission of such as BuluTT Göz, BuluTT providing Turkey with the latest Konferans, BuluTT Ölçüm, BuluTT communication technologies. • Türk Telekom continued its success in 2015. Its products, services, success in regional growth, social responsibility projects that target to add value to Turkey, and international awards rendered Turk Telekom as the “Most Valuable Telecommunication Brand” with its brand valued at US$2.475 billion, according to a study of Brand Finance. • Türk Telekom is listed as one of the 15 companies in BIST 30 (Borsa Istanbul, the sole exchange entity of Turkey) to be included in the newly created BIST Sustainability Index, thanks to its long standing emphasis on Environmental, Social and Governance (ESG) policies and practices. • Türk Telekom achieved strong performance in 3Q-2015: Consolidated revenues increased by 5.2% year-on-year. Mobile

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Mr. Salman Al-Badran has been the CEO of VIVA since January 2011. Prior to joining VIVA, Salman acted as the General Manager of Al Jawal Network in Saudi Telecom Company (STC). His initial Director role in VIVA was Project Director in charge of the implementation and commercial launch. He successfully built and led the combined Mr. Salman Bin Commercial, Technology, HR and Finance team for the commercial Abdul Aziz Al Badran launch of VIVA in December 2008, in a record time span of six CEO months. His tenure as the Chief Technical Officer in VIVA is marked by the VIVA Telecom, Kuwait timely implementation of the Technology strategy to meet the market demand for the high volume of Mobile Broadband usage. Mr. Salman has been pivotal in driving the company’s ever growing brand and market share of the Kuwait’s Mobile telecommunications sector. Eng. Salman Bin Abdulaziz Al-Badran made the list of the Best 100 Chief Executive Officers (CEO) in the Gulf Cooperation Council (GCC) region for 2015.

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VIVA is the newest, most advanced Corporate Achievements • In 2014, VIVA Kuwait won several mobile telecommunications service • VIVA Kuwait realized net profits awards for excellence, including provider in Kuwait. VIVA has rapidly of US$ 108.01 million (KD 32.8 the “Best 4G Package” award at established itself in the market million), an increase of 12% the 2nd Annual Teknotel Awards, through its customer and employee- during the nine month period the “Best Mobile Operator” centric approach. of 2015. Total revenues reached Award from Service Hero, the KD 204 million, a strong growth “Editor’s Choice Award” from With the objective of providing of 17% as compared to the same Network World Middle East, shareholders value, and return on period in 2014. the “Best Speech Analytics investment, VIVA is focusing on • VIVA Kuwait continued to lead Implementation” from INSIGHTS corporate governance activities in in offering high quality services - Middle East Call Centre Awards the following key areas: Strategic to its clients and increasing 2014, and the “Best Middle Guidance, Active Monitoring, Strategic operational efficiency to create Eastern Operator” at the 2014 Management, Active Auditing and more value. The company Telecom Review Summit Awards. Organization and Human Resources successfully contributed to the • 5VIVA Kuwait’s network coverage to meet business requirements. growth and development of exceeds 99% of Kuwait’s Kuwait’s telecom industry. residential areas and other VIVA offers superior Internet speed • VIVA was able to maintain its geographically equipped areas. due to the implementation of the position as the second largest most advanced 4G LTE and High telecom operator in the Kuwaiti Speed Downlink Packet Access market in term of subscribers and (HSDPA) network in Kuwait resulting revenues. in high network performance.

The company continues to take a considerable share of the market “Our network, which covers all regions by offering an innovative range of advanced products and services, a in Kuwait, has now been upgraded so state of the art network, and access to a world-class service. that our customers can benefit from the latest mobile broadband technologies. It is our goal to meet our customers’ every expectation and to lead the development of the telecommunications sector in Kuwait.”

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Taxation Landscape Across the Regions

7.00%

6.00%

5.00%

4.00%

3.00% Tariffs Additional Taxes Tariff & Tax Rates & Tax Tariff 2.00%

1.00%

0.00% Low Income Countries Lower Middle Income Upper Middle Income Countries Countries Income Level

Figure 1: Country Income Levels vs Costs of Telecoms/ICT Services

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Research Note: It appears that the relationship between taxation and the countries’ income level are counter- intuitive: Low income countries tend to have higher taxation and are more prone to introducing and suffering from unnecessary or irrational costs of ICT services. This visibly shows flawed perceptions on telecoms/ICT costs. Moreover, it also shows that countries with a clearer understanding of the role of communications technologies, products, and services in socio-economic development, combined with their overall commitment to economic development through cross-border engagements, trade, and open visions into the future have higher probability of having lower additional taxes, in addition to having a competitive tariffs structure.

Figure 2: Region-wise Taxation Levels

Research Note: Figure 2 shows that some countries, particularly in the developing world, impose noticeably higher additional taxes on the provision and access of telecommunications/ICT products and services. Southeast Asia, among many nations of the world and among many countries within the SAMENA region, appears to take lead in imposing additional costs. This is also the region with some of the highest population and poverty levels in the world, and where the presence of additional taxation has been hampering ICT growth, and unfortunately, that too after the growth actually began to bear fruitful results. Notably also, Southeast Asia is also the region where some of the world’s most advanced communications technologies and digital services, such as m-banking and m-health, have been more successfully launched and tested. Thus it is apparent that the developing world most definitely requires easier and cost-effective access to ICT to achieve economic development, and any additional costs will continue to result in the loss of time to develop, in greatly reduced foreign direct investment, mismanagement or poor utilization of existing communications infrastructure, and presence of an overall business environment that is unconducive to sustainable investment. Rational taxation policies must be framed and put into effective implementation in regions like Southeast Asia and Sub-Saharan Africa.

Data Source: Based on the October 2014 findings of The Information Technology & Innovation Foundation (ITIF)

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MEMBERS NEWS

Mobily offers “Connect activated by visiting one of the company’s branches throughout the Kingdom. roaming” packages for the Mobily has launched the roaming service by partnering with the best service holiday season providers in the world to ensure highest Etihad Etisalat (Mobily) has announced quality of services to our customers, its packages, ‘Connect Roaming’ keeping this includes, AT&T in USA, Vodafone in mind the needs of its customers in UK, Germany and Spain, Organe in roaming outside the Kingdom. This will France, Switzerland and Jordan, Telstra in help eliminate the need to try looking Australia, Celcom in Malaysia, Etisalat in for viable internet solutions in a foreign UAE, Batelco in Bahrain and Ooredoo in land through available connectivity from Qatar. Mobily is considered as one of the MEMBERS Mobily connection, even while traveling top operators in the region providing best abroad. Connect Roaming packages in class international roaming services UPDATES come in four distinctive offers; the based on 4G LTE; for this, Mobily has starting package price is SR 50 for daily partnered with 117 operators worldwide. package which provides a capacity of Mobily has announced the offers in line 500MB and can be activated by sending with Mid-Year holiday season in the “Safar1” to 1100, second offer costs SR school year to facilitate effective and 150 and a capacity of 2GB which can be easy communication to its subscribers activated by sending “Safar2” to 1100; while travelling abroad through various third category provides a weekly package solutions to meet everyone’s needs. with 5 GB data size and costs SR250 and can be activated by sending the symbol “Safar3” and, finally, the largest category Batelco partners with Turk of “Connect Roaming” is a monthly package providing unlimited data costs Telekom International SR350 and can be subscribed by sending Batelco, in keeping with its global “Safar4”. In addition, these packages can expansion plans, has signed a series of be activated through a system of USSD by agreements with different operators entering * 1100 # and then “roaming” and across the world. Turk Telekom then to “ Connect Roaming Packages”; International (TTI) now joins Batelco ‘s even another way to subscribe to these diversified portfolio of global partners. packages is through Mobily website by Turk Telekom International is a leading accessing “My Services” and moving telecommunication operator in Central on to “Connect Roaming Packages” for and Eastern Europe, Turkey, Caucasus, activation; the packages can also be the Middle East and Asia, providing

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a full range of Internet and data – has agreed to cooperate on the solutions, including the launch of the infrastructure, data center and deployment, testing and validation first Deca-core SOC with our Helio X20, wholesale voice services and solutions. of the next generation technologies along with our continuous investment Batelco stresses the importance of in LTE, LTE-Advanced, LTE-Advanced in R&D, is an attractive proposition for forming strategic partnerships with Pro and high definition voice services advanced LTE and Wi-Fi operators like organizations that share a similar such as VoIP over LTE and Wi-Fi. The du to roll out,” he said. “Cooperation vision, to drive its growth plans forward cooperation is agreed under a general with du allows MediaTek to continue and provide exceptional value to its Memorandum of Understanding empowering end-users with the customers. The new cooperation with (MoU) where both companies will latest technologies and showcase our Turk Telecom fits neatly with Batelco also exchange information and ideas extensive experience in developing ‘s major plans to expand its global towards the advanced technologies chipsets with fast time-to-market.” presence and solidify its global data in 5G and Internet of things (IoT). offerings. Global data connectivity has du, the first telecom service provider become a necessity for businesses as in the Middle East to achieve GCF Syniverse Supports operations are increasingly digitized accreditation, founded the Terminal and data intensive. Accordingly, the Innovation lab to improve their Roshan’s Revenue availability of a resilient and reliable mobile device testing and validation Assurance data connection can be considered and further enhance end-users’ as a crucial element required by these experience. du has recently announced Syniverse has signed a multiyear businesses. The Batelco -Turk Telekom the completion of Middle East’s agreement with Roshan, Afghanistan’s International agreement will meet first 10 Gbps live 5G demo at GITEX largest telecommunications company, this demand and further support Technology Week. As an integral to provide revenue assurance organizations with their complex part of this agreement, MediaTek’s and fraud detection services. The world-wide connectivity requirements. wide range of devices and turnkey agreement will provide Roshan with Batelco Chief Global Business Officer solution allowing manufacturers to predictive analytic solutions that Adel Al-Daylami and Turk Telekom reduce the development time of new protect the company against the latest International CEO Cengiz Oztelcan products, and extend a competitive forms of mobile fraud and optimize its signed the agreement in the presence edge, which will help to improve du’s revenue flow. of officials from both organizations customer satisfaction and provide recently. This new partnership will allow a new range of devices supporting Mobile fraud has surged to present the two organizations to access each technologies deemed as key to an especially penetrating threat other’s networks thereby enabling du’s network performance. du will to businesses and consumers, as them to extend their reach into newer use MediaTek’s breadth of modem companies now stand to lose on markets. This will further reinforce technology solutions to efficiently average of $92 million in revenue each Batelco ‘s positioning, especially in the and comprehensively test, validate, year from mobile fraud, according to a Middle Eastern and Eurasian regions, and troubleshoot mobile device and report by J. Gold Associates. and will allow customers and carriers benchmark performance in both lab more access and reliability. Similarly, and field based environments to ensure Turk Telekom International will be able seamless and fast time-to-market of “At Roshan, we not only strive always to utilize Batelco ‘s presence to reach new devices and technologies. Saleem to provide the best quality products its customers in more locations. “We AlBlooshi, Executive Vice President of and services to our customers, but also are continuing with our expansion Network Development and Operations to bring best business practices and plans at a very rapid pace,” said Mr. at du, said: “We are very pleased to international expertise to Afghanistan Al-Daylami. “We are looking forward cooperate with MediaTek as a leader through collaborations with leading to the partnership with Turk Telekom in Smartphone platforms in order global companies,” said Karim Khoja, International and are sure it will open to enhance our user experience.” He CEO of Roshan. “By working with new avenues of cooperation for both continued: “Bridging the gap between Syniverse, Roshan will be able to use our organizations allowing us to terminals and network is our aim the strongest fraud protection tools provide services at outstanding value,” to offer seamless experience to our available to optimize its revenue added Mr. Al Daylami. customers. Also, the cooperation in 5G flow and better serve its 6.5 million and IoT development is another aim customers.” to realize our leaders’ vision to build du and MediaTek the smartest city and to be on the top Roshan will implement Fraud cooperate on the of technology evolution.” “MediaTek Management and Revenue Assurance looks forward to working with du solutions, which are based on deployment of advanced to test and validate next generation Syniverse’s Risk Management portfolio. LTE technologies and technologies including the areas of The Fraud Management solution helps advanced LTE standards and high both companies and operators combat terminals definition VoIP services over LTE/Wi- the full range of today’s mobile fraud MediaTek, a pioneering fables Fi,” said Cheng-Te Chuang, Head of by using predictive analytic capabilities semiconductor company and a market Wireless Communications Technology to enable the best collection of data leader in systems-on-chip (SoC) with Businesses Unit and Vice President of and use of it to respond to particular the world’s first octa and deca -core MediaTek. “We see operators in MEA patterns. Syniverse’s Revenue Smartphone platforms, announced as some of the most advanced when it Assurance solution provides clear that du – the Middle East’s fastest comes to investing and implementing and accurate data on an operator’s growing telecom service provider new technologies. MediaTek’s chipset

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SAMENA TRENDS _ DEC 2015 SAMENA TRENDS _ DEC 2015 entire revenue flow and identifies such as online gaming is imperative agreement for Cisco to distribute any problem areas in the end-to-end for the development of our youth.” and integrate Intersec’s solutions billing cycle that can be enhanced to He further added that “PTCL is striving with their own. Intersec is a big data help eliminate revenue loss. to create a better tomorrow for the software company whose tech is country’s youth by connecting them focused on areas such as customer with the international information management, fraud, the Internet “With the Communications Fraud highway, inculcating a sense of of Things and messaging. It counts Control Association reporting that greater competiveness across a global Telefónica, SFR, MTS, Zain, O2 and mobile fraud is responsible for $38 platform. Hence, we have made our Orange among its customer base. billion in revenue loss for operators PGL platform open and accessible CEO Yann Chevalier commented: globally, it’s imperative that operators for all” The first of its kind, Pakistan “We believe [this agreement] will have a full-scale strategy for protecting Gaming Lounge – (PGL) comprises be a tremendous opportunity for themselves and their customers from dedicated multiplayer game servers both companies to better serve our this threat,” said Joseph George, focusing on hard core gaming and customers. “Intersec will benefit from Senior Product Management Director, eSports. Hosted at PTCL’s state of Cisco’s commercial clout and highly Syniverse. “Syniverse’s fraud strategy the art data centers, PGL’s servers are professional approach to accelerate – based on a global, mobile and geared towards providing a lag free our development in some regions.” data-driven approach – will enable gaming experience for highly popular Frédéric Rombaut, Head of Corporate Roshan to quickly implement a full- computer games such as Counter- Development EMEAR at Cisco, said: strength fraud-protection solution to Strike, Call of Duty and Minecraft and “Intersec is a pioneer and leader in provide the best user experience to its many other popular gaming titles. The big data analytics for Telco networks, a customers.” competition presented an exciting key segment for Cisco. “The company opportunity to help boost the profile is set for strong growth. Intersec’s of Pakistan’s burgeoning gaming extremely efficient solutions combined PTCL launches Pakistan’s community, providing a unique and with Cisco’s platforms will expand the integrated platform for the gaming value of our respective proposals. first online gaming community to socialize and compete “Our investment is therefore coupled lounge on. Open to all, it was aimed at with a technological and commercial creating greater awareness for online partnership that will accelerate the Pakistan Telecommunication Company gaming in the Pakistan and a chance development of our markets globally.” Limited (PTCL), the country’s leading for young gamers to participate in ICT services provider, has launched a growing and increasingly popular Pakistan’s first online gaming service, global trend. Featuring intense ‘Pakistan Gaming Lounge – (PGL)’ Qualcomm rules out rivalries, the event witnessed a highly with a live pro-gaming event for contested tournament amongst the breakup the twin cities at Centaurus Mall. twin cities’ top gamers. Zaki Nasir took Qualcomm ruled out splitting up the The first of many, the two-day event the top prize for the Counter-Strike company, with CEO Steve Mollenkopf featured an overwhelming number tournament on Saturday, followed by insisting that its current structure of young gaming aficionados, drawn Umair ul Bari who scored top position will best fuel the company’s growth. in by a chance to play network in the Modern Warfare tournament The mobile chip maker also raised games and win exciting prizes. This held on Sunday. With similar events its earnings per share (EPS) guidance planned for Lahore and Karachi in the for its first quarter of fiscal 2016. “The coming months, all gaming enthusiasts strategic benefits and synergies of can register themselves on www. our model are not replicable through gaminglounge.pk to fully experience alternative structures,” said Mollenkopf, this pioneering Online multi-player in a statement. “We therefore believe networked gaming platform. the current structure is the best way to execute on our strategy to build on our position in the ecosystem Cisco, Intersec team and deliver enhanced performance and returns.” Qualcomm launched a up to boost big data strategic review in July and confirmed that a breakup was one of the options premier online gaming event was analytics capabilities on the table, after reporting hefty aimed at providing computer gaming Cisco and Intersec have signed a declines in turnover and profit in the enthusiasts a first-hand experience of strategic partnership designed to quarter ended 30 June. The company PGL’s superfast gaming servers geared offer a more comprehensive big data also unveiled a strategic realignment at promoting multi-player networked analytics proposition to operators. The plan that includes more than 4,000 gaming within the country. Set up partnership comprises two elements. redundancies in a bid to save US$1.4 for the nation’s tech savvy youth, the First, Cisco is making an undisclosed billion. Reports at the time claimed launch successfully introduced yet equity investment to finance the that Qualcomm was under pressure another engaging platform for such creation of a joint business. Second, from an activist shareholder, Jana community-based and creative online the two companies have signed a Partners, to separate the company’s activities by PTCL. Adnan Shahid, Chief commercial partnership to enrich chip-making activities from its patent- Commercial Officer PTCL said “Positive cellular data with Wi-Fi by connecting licensing business. On Tuesday, entertainment and sporting activities their platforms and a reselling

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Qualcomm said the review assessed improved connectivity and visibility,” Packet Core solution will give us the the company’s current corporate and said Nour Al Atassi, Regional Vice flexibility we need to launch new capital structure, as well as a wide President and Managing Director, services quickly and seamlessly for our range of alternatives, and tested Middle East and Africa, Syniverse. valued customers.” them thoroughly, including evaluating “The interconnected global reach ways to mitigate risks and challenges achieved by using Syniverse as a single posed by these alternatives. “Given connection point for greater reach and Batelco continues the dynamic industry and competitive access to services positions Ooredoo environment, we decided to take a Oman to meet its existing needs expansion plans for fresh look at our structure to ensure while smoothly transitioning to VoLTE global growth we were doing everything possible and other advanced services.” The Batelco, keen on following its global to enhance the value of the company agreement with Ooredoo Oman builds expansion plans, has signed an and position ourselves for long-term on Syniverse’s six-year relationship agreement with Bharti Airtel Limited success,” said Qualcomm chairman with the operator and Syniverse’s (“Airtel”), India’s leading operator Paul Jacobs. In a separate presentation, IPX momentum to enable people to and the third largest mobile services Qualcomm said it is on track achieve enjoy the same high-quality mobile provider, with operations in 20 its $1.4 billion savings target. The experience that they have become countries across Asia and Africa. company also raised its EPS guidance accustomed to at home, wherever This partnership follows Batelco ‘s for fiscal Q1 2016. It now expects to they travel. Recent examples include announcement of its major plans meet or exceed its forecast of $0.80- Syniverse’s agreement to extend LTE to expand its global presence and $0.90 per share for the three months Roaming Reach for Dialog Axiata, Telin solidify its global data offerings. In to the end of December. and Saudi Telecom Company. an increasingly digital world with diversified business requirements, global organizations now place Syniverse extends end- Saudi Telecom to invest larger emphasis on resilient and to-end LTE roaming in Virtualized Packet reliable global data connectivity. In recognition of this trend, the Batelco reach for Ooredoo Oman Core to transform mobile -Airtel agreement will further support Syniverse announced a new agreement service organizations with their multi-faceted to enable Ooredoo Oman to extend world-wide connectivity requirements. its LTE roaming reach by leveraging Saudi Telecom Company (STC) has To drive its growth plans forward Syniverse’s IPX Network Solution decided to make investment in Cisco and provide exceptional value to and Diameter Signaling Service. The Virtualized Packet Core (VPC) to its customers, Batelco stresses the Syniverse IPX network interconnects transform its mobile service delivery importance of forming strategic the world’s mobile networks to make model and expand its customer partnerships with organizations that LTE data and VoLTE roaming possible, offering in Saudi Arabia. Cisco VPC will share a similar vision. In line with this, reaching more than 270 operators assist STC to address new demands Batelco Chief Global Business Officer through more than 2,000 LTE roaming while reducing network capital and Adel Al-Daylami and Airtel Director routes. Ooredoo Oman’s connection operational expenditures. The telecom & CEO Global Voice & Data Business, to Syniverse’s IPX network serves network vendor said VPC will allow Ajay Chitkara, signed the agreement as a simplified way to reduce the STC, a leading telecom operator in the in the presence of officials from both number of one-to-one LTE network Middle East, to accelerate the process organizations. This new partnership connections the operator must of adding new enterprise customers between Batelco and Airtel will allow manage on its own. “As the leader in from industries such as healthcare, the two organizations to access each LTE enablement, Syniverse allows us transportation, retail, banking etc. and other’s networks thereby enabling to enhance our delivery of the next- launching new applications to market. them to extend their reach into newer generation mobile experience that our The Cisco VPC will provide a universal markets. This will further reinforce subscribers want,” said Jim Maxwell mobile packet core to support all STC’s Batelco ‘s positioning, especially in Chief Legal, Regulatory and Wholesale wireless services in a single solution. the Pan-Asian region, and will allow Officer, Ooredoo Oman. “Through Flexibility, efficiency, and scale of customers and carriers more access a single connection to Syniverse’s virtualized cloud services are the main and reliability. Similarly, Airtel will expansive IPX network, we are able to benefits of Cisco VPC. The Cisco VPC be able to utilize Batelco ‘s presence deliver LTE roaming for our inbound solution significantly enhances service across the Middle East and other and outbound roamers while gaining agility for telecom service providers, regions to reach its customers in more access to a suite of hosted solutions enabling them to scale capacity and locations. “We are well in line with our that help us navigates roaming introduce new services much faster expansion plans, and are glad to have complexities.” The operator also is and more cost-effectively. STC’s new signed this agreement with Airtel to leveraging other Syniverse solutions mobile platform will provide better drive us forward,” said Mr. Al-Daylami. critical for roaming, including network speeds and a higher quality of “It’s partnerships like these which Syniverse DataNet to combat roaming service over 4G LTE networks. Nasser empower Batelco to meet global fraud as well as its Data Clearing Al Nasser, SVP for Technology & demands and provide services at House for GSM and Financial Clearing Operations, STC said: “STC’s goal is to outstanding value. Furthermore, this Services for GSM. “Always-evolving maintain its leadership by continuously partnership also comes at a time when technology requires mobile operators innovating to meet the ever-changing Batelco is focusing on its active role to enhance network efficiency through customer needs. Cisco Virtualized in strengthening the Bahraini market.

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These partnerships, especially with making iPhones more attractive in a performance, backed by rigorous SLAs, well-established operators like Airtel, largely affluent market of more than and monitored 24x7 by Global Service help Batelco in being a driving force 30 million people. The move, part of Operating Centers (GSOC) positioned to capture investment opportunities Apple’s latest software updates, means in various time zones. PCCW Global for the Kingdom of Bahrain,” he added. people in those countries will be able invests a great deal of time and to use Siri in their native tongue on resource to guarantee its customers iPhones, iPads and the Apple Watch. reliable end-to-end connectivity and Huawei drives Agile The availability of Siri in Arabic may a resilient service environment which make some consumers more receptive enables them to achieve business Network innovation to Apple software, said Ken Singer, goals efficiently and effectively. MEF is unveiling its latest in managing director of the Center for a global industry alliance comprising Entrepreneurship and Technology more than 220 organizations. These SDN-ready solutions at UC Berkeley. “These devices are include telecoms service providers, To better compete in today’s digital incredibly personal,” said Singer, multiple cable-system operators, economy, Huawei—a leading global who has counseled entrepreneurs in network equipment vendors, software ICT solutions provider—unveiled its the Middle East. “(Consumers) are manufacturers, semiconductor Agile Distributed WiFi solution along going to want to feel like the device vendors and testing entities. While with its Advanced Persistent Threat is designed for them.” Apple has many organizations offer isolated (APT) Protection solution. The launch steadily broadened Siri’s reach since solutions to isolated challenges, MEF marks the latest solutions under the the first edition was released in 2011, is the only organization in the SDO Agile Network 3.0 concept, announced and the digital assistant now supports (Standard Defining Organizations) globally earlier this year and is set 18 languages spoken in 31 countries. landscape that offers a multi-carrier/ to give users drastically faster and Arabic speakers outside Saudi Arabia inter-carrier framework, namely LSO, uninterrupted network connectivity and the UAE will be able to use Siri, enabling a streamlined and simple that will provide an overall, much more though it will not be tailored to their realization of NNIs. This award enjoyable and seamless experience. dialect. recognizes PCCW Global’s capabilities With the integration of the latest APT to integrate multiple elements into Protection solution, businesses will an end-to-end orchestrated solution. also be able to securely embrace the PCCW Global wins MEF Mr. Nan Chen, President of the MEF, future mode of Software-Defined- congratulated PCCW Global on its Networking (SDN), protecting their Best Wholesale Service outstanding contribution to the infrastructure even against the most Provider – Global award industry and recognized commitment sophisticated cyber threats today. The to delivering innovative Carrier launch was hosted at the regional PCCW Global, the international Ethernet solutions to customers edition of Huawei Network Congress operating division of HKT, was throughout the world. Mr. Marc Middle East 2015 and included key presented the award of Best Wholesale Halbfinger, Chief Executive Officer of notes from network industry experts Service Provider – Global for its PCCW Global, said, “We are grateful across the value-chain eco-system robust wholesale offering and global to the MEF for this prestigious award including representatives from coverage at the recent Metro Ethernet which recognizes PCCW Global’s world Huawei’s global and regional team, Forum’s (MEF) Excellence Awards 2015, leading Carrier Ethernet capabilities”. its alliance and go-to-market partners further enhancing its reputation as a that included Intel and Alpha Data’s world leader in Carrier Ethernet service 4Sight in addition to its end-users. provision. The MEF’s annual awards Orange, Huawei team recognize excellence and leadership in the development, marketing and to build energy efficient Apple releases first delivery of Carrier Ethernet retail and wholesale services. The judging panel telecom networks Arabic version of Siri was comprised of senior analysts Orange and Huawei announced Apple Inc released a version of its from independent research firms cooperation to invent and build high virtual personal assistant Siri for including IDC, Infonetics, Vertical energy efficiency telecommunications Arabic speakers in the United Arab Systems, Gartner, Frost & Sullivan, networks by 2020. The partnership Emirates and Saudi Arabia, potentially and Ovum. PCCW Global is a leading will accelerate the implementation service provider and has established of high energy-efficient solutions in structured interconnect relationships Orange’s infrastructures to achieve the with a large list of local and regional company’s 2020 objective of reducing service providers to extend its pre- CO2 emissions per customer-usage existing robust core global coverage by 50 percent. Huawei will contribute and deliver increased value to its to Orange 2020 environmental customers. Through the extensive objectives by providing better energy deployment of its infrastructure, efficient solutions, said Zhilei Zou, the PCCW Global is able to deliver president of Carrier Business Group, end-to-end managed services to Huawei. Both companies have been nearly every corner of the globe. partners since 2013. The cooperation PCCW Global’s managed services has enabled the design of customer ensure guaranteed bandwidth and connector cards that reduce energy

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consumption by 50 percent for ADSL next decade. The solution was recently the Global High Potential (HiPo) access and 70 percent for fiber-optic tested live on du’s mobile network. Program, which is designed to access. Orange is currently assessing According to du, the performance develop 72 future leaders of the the cards for future deployment on of the solution achieved remarkable leading telecommunications operator their fixed networks. The companies results and exceeded expectations in Middle East, Africa and Asia. The have also developed energy- with immediate improvement on collaboration between Etisalat Group, saving features for mobile networks both drop call rates as well as users’ its Operating Companies and the that can save an average of 10 throughput. It also exhibited better institutions of Harvard Manage Mentor, percent of radio equipment energy sharing of radio resources between Informa Telecoms Academy and HEC consumption. Orange has already layers and technologies. Mr. Marwan Paris – all leaders in innovative learning started to deploy these features in Bin Shakar, Vice President at du, noted: solutions and executive education - is their mobile networks. Another area of “This latest deployment is not only a part of a concerted effort by Etisalat cooperation is to develop a modular leading technological innovation in Group to grow future leaders from convergent infrastructure for both the region, but more importantly it within involving participants from fixed and mobile services. A platform will allow us to continuously deliver 21 nationalities across the Group’s is already set up at Huawei research a better performance and great user international footprint of 18 countries. laboratories in Shenzhen. Orange experience using more simplified The objectives of the High Potential plan to launch a first pilot trial for and automated network solution.” Programme are to: create and this solution in 2016. The companies Enabling du to operate an increasingly implement a long-term sustainable will focus, further develop and test more complex and intelligent network, leadership pipeline to meet Etisalat’s in field situations and new solutions the initiative will leverage Huawei’s global business growth ambitions; that bring more energy efficiency and leadership in Radio Access Networks identify key resources in Etisalat and environmental benefits. They plan as well as its worldwide research & create a readily available global team to design new network architecture, development efforts around high- of talent; develop these resources enabled by fibre-optics, use of new speed 4G and 5G mobile technologies. for roles of greater responsibility components and signal processing Jiang Wangcheng, President of and scope; retain key talent; and algorithms to improve mobile Huawei SingleOSS Product Line, said: align development of HiPo pool with network power amplifiers, and Virtual “To address the challenges brought by Etisalat leadership profile and relevant Network Functions (VNFs) to optimize an ever-expanding mobile ecosystem, to the Group’s vision and strategy. telecommunications infrastructures. networks must become both broader Commenting on the program Abulaziz The partnership will also work to and smarter. Du has clearly made that Al Sawaleh Al Shehhi, Chief Human improve data storage management a priority for its business and will be Resources Officer, Etisalat Group within the cloud and improve energy able to leverage Huawei’s SingleSON said: “The High Potential Program is efficiency by improving power supply solution to create a more consistent about developing our most valuable and implementing renewable energy and intuitive network enhanced with talent for tomorrow. Across our and advanced cooling technologies. the very latest Huawei innovations in international footprint, Etisalat Group Both companies aim to meet their 4.5G and 5G wireless technologies.” has many employees with the ability, “zero watt @ zero load” vision. Today new mobile network engagement, and aspiration to rise to technologies such as LTE-Advanced, and succeed in more senior leadership 4.5G and 5G are being explored as a roles. This program will enhance each du deploys Huawei’s means for addressing the explosive participant’s global mindset and their growth in mobile data worldwide. The ability to significantly contribute SingleSON self- next generation of 5G technologies are to Etisalat’s future growth.” Future organizing network likewise being defined and developed High-Potential leaders are identified to serve the huge data requirements through a vigorous selection process solution as the Internet of Things is expected to and those chosen to be part of the du has teamed up with Huawei—a become widespread. The experiences program come together for a unique leading global ICT solutions gained from du’s trial of the SingleSON learning experience, which combines provider—in an effort to effectively solution are now being shared by classroom learning, business manage the operator’s growing Huawei in several other trials in more simulations and taking on real business mobile network while at the same than 25 networks in countries and challenges, led by Etisalat Group. time delivering on its promise of a regions such as China, Europe, Asia Prof. Dr. Wolfgang Amann, Academic superior customer experience. To Pacific, Africa, South America, and Director, HEC Paris in Qatar, one of the that end, du has become the leading Australia institutes contributing to the delivery telecom operator in the MENA of Etisalat’s HiPo Program, added: region to deploy Huawei’s SingleSON “It is a great pleasure to be working self-organizing network solution, Etisalat Group celebrates with Etisalat Group to deliver this program, and to support its leadership empowering the operator to optimize graduates of its Global its wireless network performance in an development journey. We have worked automatic and efficient mechanism. High Potential (HiPo) closely with the Group’s senior team to The technology will ultimately help du develop this unique, but challenging to manage the explosive growth and program learning experience, which will development of mobile data traffic Etisalat Group celebrated the provide participants with hands-on which is expected to increase over the graduation of its latest cohort of insights, skills, and tools and enhance a global mindset. With the support

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SAMENA TRENDS _ DEC 2015 SAMENA TRENDS _ DEC 2015 of our expert faculty members, it will and stimulate the development of nationals or companies. The SMART significantly contribute to Etisalat’s a full portfolio of new solutions to SKY’s majority shareholder is PTCL, future growth.” support business growth. Qatar is which is a Pakistani company hence entering into an era of innovation SMART SKY does not fall afoul of the and knowledge-led development, first part of Section 25(c). The second Ooredoo, Es’hailSat ink and our work with Ooredoo will bring being a company whose management important benefits for many of our or control is vested in foreign nationals collaboration agreement nation’s most important strategic or (foreign) companies. The petition Ooredoo and Es’hailSat signed a industries.” Ooredoo offers one of further stated that the Board of major development and collaboration the widest ranges of satellite services Directors of the SMART SKY, as well agreement that will see the two leading of any operator in the GCC, including as the Chief Executive Officer of the Qatari companies work together on a Bandwidth Pooling, Maritime SMART SKY, are all Pakistani nationals range of new satellite and world-class Solutions, and Auto-Acquire Antennas and not foreign nationals. Nor there communication services for Qatar. to support ad-hoc remote broadband. is any a shareholder or management Under the terms of the agreement, By working with Es’hailSat, which agreement in existence that vests Es’hailSat will become one of Ooredoo’s already operates Es’hail 1 and is in the management of SMART SKY in any preferred partners, and will work with process of preparing for the launch of foreign company. “Therefore, in strict Ooredoo to develop a cutting-edge Es’hail 2 to be followed by a full global terms the SMART SKY does not fall portfolio of VSAT (Very Small Aperture fleet, the company believes it can build within the mischief of Section 25(c) Terminal) and other satellite services its leadership position to serve the of the PEMRA Ordinance 2002 and for customers in Qatar. The two whole region and ultimately the global hence the decision is without any companies will collaborate on designs telecommunications industry. legal basis,” said the plea. The second and specifications for developing tier of ownership or control of an world-class VSAT projects for leading applicant company is irrelevant to the enterprises in Qatar. Demand for VSAT PTCL Gets Clearance restrictive provisions of Section 25 of services has risen sharply in recent the PEMRA Ordinance 2002. This is years, particularly from businesses to Participate in DTH important considering that Etisalat with operations in remote locations, License Auction through is a minority shareholder in PTCL, a such as deserts and coastal areas, Pakistani company with the majority of and Ooredoo and Es’hailSat believe a Front Company its shares owned by the Government there is a strong opportunity for Qatar PTCL, through a subsidiary company, of Pakistan. The petition also reminded to achieve global leadership in this has gotten the clearance to participate that PEMRA has previously granted in the upcoming DTH license auction PTCL, the shareholder of SMART SKY, in Pakistan. The telecom company’s an exemption from the restrictions application was previously rejected under Section 25(c) when PTCL by PEMRA on various grounds. directly applied for a media license However, the Islamabad High Court (IPTV License) which was then granted (IHC) has accepted the plea of by PEMRA in 2006. Therefore, PEMRA “SMART SKY”, a subsidiary of Pakistan can not now claim restriction under Telecommunication Company Limited Section 25(c) to apply upon SMART (PTCL), to be allowed to participate in SKY on account of PTCL being its the DTH Licenses bidding, according shareholder. After IHC’s acceptance, to a senior official of PTCL who now Smart Sky will be participating in confirmed the news to ProPakistani. the auction, which was scheduled for Previously, SMART SKY, after getting December 7, 2015) but was delayed rejected, had submitted before the by PEMRA Chairman just three days important area. Waleed Al Sayed, Chief high court that PEMRA recently issued ahead of auction. Executive Officer, Ooredoo Qatar, said: an invitation for companies registered “Satellite-supported communications in Pakistan to apply and bid for are opening new frontiers for three non-exclusive DTH Distribution PCCW Solutions businesses in Qatar and across the Services Licenses (‘DTH License’) for launches digital cloud region. By combining Ooredoo’s the territory of Pakistan. SMART SKY industry expertise and Es’hailSat’s along with nine other companies, suite growing fleet of satellites, we can applied in response to the initiation for PCCW Solutions launched a cloud position Qatar as a true leader in this DTH Licenses. SMART SKY submitted growing field. Ooredoo continues suite consisting of enterprise business its detailed application to PEMRA on applications, e-commerce and data to invest in Qatari-led innovation Oct 5th, 2015, along with all requisite with our national partners, and we analytics products and services to information and documents. The help enterprises to embrace digital are confident that our work with plea argued that PEMRA erroneously Es’hailSatwill enhance the range of transformation. Named Infinitum, the applied Section 25(c) of the PEMRA cloud suite includes basic enterprise corporate, broadcast, and government Ordinance 2002 to SMART SKY. Smart services available.” Ali Ahmed Al business applications like back-office Sky’s petition explained that section applications, front-office applications Kuwari, President and CEO, Es’hailSat 25(c) provides for two restrictive said: “Our agreement with Ooredoo and business processes as well as instances, whose majority shares e-commerce, data analytics and the will help drive home-grown innovation are owned or controlled by foreign in the field of satellite communication, Internet of Things (IoT) products

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Ooredoo ‘first to deploy’ Zain Group starts VoLTE in Qatar; available fifth Zain Technology for all users in 2016 Conference (ZTC) in Ooredoo Qatar says that voice-over- Bahrain LTE (VoLTE) will be commercially available for all its users nationwide Zain Group kicked-off its fifth Zain in 2016, having launched a pre- Technology Conference (ZTC) today commercial phase this week covering at ART Rotana Amwaj Islands Hotel, large parts of Doha, which it claims with this year’s theme being under makes it the first operator in Qatar the title of ‘Transforming Our World’. and the Gulf Cooperation Council This reflects Zain’s strategic aspirations (GCC) countries to introduce VoLTE of delivering on a compelling across a substantial part of its digital lifestyle to its customers. The network. VoLTE will enable customers opening ceremony was attended and services. “Every company is to make HD voice calls over the 4G by over 700 delegates including His now facing or talking about how to data network with faster call setup Excellency Engineer Kamal bin Ahmed become a digital company, how to times, while users will be able to switch Mohammed, Minister of Transportation be connected with their customers between ongoing voice calls and and Telecommunications; Zain via Web, mobile, other devices or high-quality video calls, plus browse Bahrain Chairman, His Excellency let the machines talk to each other the internet on the 4G network while Shaikh Ahmed Bin Ali Al Khalifa; Zain through IoT. Most importantly, how still on a call. Ooredoo’s press release Group CEO, Scott Gegenheimer; Zain to make use of data and intelligence,” adds that the VoLTE implementation is Bahrain General Manager, Mohammed said Sinko Choy, SVP of sales and based on software-defined data centre Zainalabedin; as well as Zain Group marketing at PCCW Solutions. The architecture and a range of cutting- CTO Hisham Allam. The packed three- company’s managing director Ramez edge technologies including network day event makes ZTC 2015 one of Younan added, “Infinitum is not just function virtualization and software- the biggest technology exhibitions one product but it is a platform that defined networking. held in the Kingdom, with over 65 enables our customers to move their global technology providers and applications to the cloud to streamline vendors participating and showcasing their business processes and speed their latest digital innovations and up the implementation.” “Customers Qualcomm makes patent technologies. The conference officially can focus on their core businesses deal with Xiaomi kicked off today, and incorporated or innovation of their products and a number of keynote presentations In a move that could help both services.” The offerings are catered for including an opening address companies fuel broader ambitions, different vertical industries including by Dr. Jean-Pierre Siri, Executive Qualcomm and Xiaomi announced a travel and transportation, banking, Director of Legal Affairs at Bahrain’s patent licensing agreement that will financial services and insurance, Telecommunications Regulatory see the Chinese phone maker pay retail, manufacturing and logistics, Authority (TRA), and further royalties for its 3G and 4G phones. For public and hospitality. Aside from presentations by Ericsson, Huawei, Qualcomm, the deal means additional products, Infinitum also provides revenue for its licensing business and advisory services ranging from cloud shows that the company is making strategies, digital transformation steady progress in its effort to get and implementation, day-to-day Chinese phone makers to pay patent application maintenance and cloud royalties in the wake of an antitrust infrastructure support. All the settlement there. Xiaomi, meanwhile, products and services are delivered on has been eyeing expansion beyond a single cloud infrastructure operated emerging markets; doing so is likely by PCCW Solutions. The applications to mean patent licensing deals with in the Infinitum are developed by some of the key players. It remains both large, branded vendors and in a dispute with Ericsson and could technological startups. “We have face actions from Apple or others if collaborated with large companies like it decided to move into markets with SAP, Oracle as well as with startups stronger intellectual property laws. and Open Source. So in all the Nokia Networks, and research firm Xiaomi has said it wants to sell devices categories we want to bring end value Gartner. These prepared addresses are in the U.S. eventually, though it has to customers,” noted Younan. Infinitum being followed by 95 pre-arranged yet to give a time frame. “Qualcomm is delivered to customers through HKT, breakout sessions to address the is committed to the success of its the cloud partner of PCCW Solutions latest trends in the sector. A wide partners in China as they continue in Hong Kong. PCCW Solutions has range of technology and business to grow their businesses and we are also partnered with China Unicom topics are being discussed at the pleased to reach this new agreement which will soon provide a series of event including the Road-map to 5G, with Xiaomi,” Qualcomm President cloud offerings powered by Infinitum Core Virtualization Evolution, Business Derek Aberle said in a statement. in China. Enablement Solutions, Big Data

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Analytics & Cloud Services, Customer art technology test facilities, and the PTCL to offer Zong Quality of Experience, Services company has decided to deploy the Innovation, Energy Efficiency, and Site service on a mass scale now because (China Mobile) its vast Optimization. On this occasion, His the strength and scale of the Ooredoo Excellency Engineer Kamal bin Ahmed Supernet makes it practical to do so. network footprint and Mohammed, Minister of Transportation Ooredoo’s engineers are now working infrastructure and Telecommunications said “With in hundreds of locations across Doha PTCL (Pakistan Telecommunication the continuous development of to optimise the VoLTE service for the Company Limited) and Zong telecommunications technologies, planned commercial launch. Waleed (CMPak) has signed a Memorandum consumers and businesses are Al-Sayed, CEO, Ooredoo Qatar, of Understanding (MoU) during a increasingly drawn to adopting a digital said: “The successful deployment of ceremony held at PTCL Headquarters lifestyle. This generates greater demand Voice over LTE is another compelling today. The MoU was signed by Mr. for telecommunications solutions indication of the strength and Walid Irshaid, President & CEO PTCL which in turn necessitates the need superiority of the Ooredoo Supernet. and Mr. Liu Dianfeng, CEO Zong. The for the provision of a sound regulatory We have designed our Supernet to MoU will facilitate Zong to avail of framework and infrastructure. As evolve and grow with the latest cutting- PTCL’s vast network footprint and the policy maker for the sector, edge technology, which enables infrastructure for their rapidly growing the Ministry of Transportation and Ooredoo to be the first to introduce 3G & 4G subscriber base. Both Telecommunications works with the these important new services for our companies have emphasized the need TRA to provide support to telecom customers. Qatar expects the best, for stronger partnership in future to companies and service providers in and the Ooredoo Supernet makes it provide innovative and cutting edge providing integrated solutions in more possible for us to deliver the very best telecommunication services to serve efficient, productive, and innovative for our customers, such as Voice over the Pakistani market. ways, in order to position Bahrain LTE.” Ooredoo launched HD Voice on amongst the most advanced countries its mobile network in 2012, and has in the field.” been constantly improving call quality all across the country. VoLTE HD voice Mobily wins hosting and quality will further enhance the quality cloud services Assurance Ooredoo first to deploy of calls. Excellence Award voice over LTE for Qatar Mobily received Hosting and Cloud Ooredoo today announced another Zain Group deal with Services Assurance Excellence major technology breakthrough Award during the BMC Exchange on the Ooredoo Supernet with the Uber gets recognition 2015 conference that took place in implementation of Voice over LTE for the most innovative Dubai. The award has been received (VoLTE) across large parts of Doha. by Faisal A. Bakhashwain Acting VoLTE will enable customers to make service General Manager Infrastructure crystal clear HD voice calls over the Telecom research company Ovum has Technologies Planning and Ahmed A. 4G data network and provide faster recognized the partnership between AlOsaili, Executive Manager of Data call setup. In addition, customers will Zain Group and Uber as the most Centre Hosting & Managed Services. be able to switch between ongoing innovative service for November 2015. Mobily together with its strategic voice calls and high-quality video Ovum reviewed 82 innovative services partner Devoteam has worked on calls as they want. They will also be launched by telecom service providers upgrading the service assurance able to browse the Internet on the around the world in its Telco Services and monitoring for Mobily Business 4G network while still on a call - the Innovation Radar monthly summary. customers enjoying the hosting first time they have been able to do The partnership between Zain Group and cloud services. This has been this. The implementation is based and Uber was announced in September achieved through implementation on software-defined data centre 2015. As per the deal, Zain is Uber’s of a complete integrated suite of architecture and a range of cutting- main mobile service provider for any BMC products considered among edge technologies including network future Uber services in any country the best in the fields of IT Service function virtualization and software- where Zain operates. Zain Group, Assurance and Enterprise Service defined networking. The success which has presence in 8 telecom Management. Through this, Mobily of this implementation positions markets in Africa and the Middle East, is able to introduce highly proactive Ooredoo in a leadership position will be gaining from the potential to infrastructure operations and support on the global innovation path create incremental revenues, attract for its business customers. The project toward fully-converged Information new mobile customers, and increase is focused on utilizing the integrated Communication Technology (ICT). With wireless customer loyalty as Uber is BMC monitoring technology to alert the today’s launch of the pre-commercial achieving continual growth across the operation teams as well as customers phase, Ooredoo becomes the first region. “As we transform Zain into a on potential issues that could interrupt operator in the GCC to introduce digital services company, partnering the hosting and cloud computing VoLTE across a substantial part of its with technology providers such as services before any complaints are nationwide network. Like a handful Uber is a key component of our received, resulting in greater system of other elite operators, Ooredoo has strategy,” said Zain Group CEO Scott resilience and increased customer successfully trialled the service at its Gegenheimer. The Middle East and satisfaction. Mobily previously had headquarters and in its state-of-the- North Africa is one of Uber’s fastest won the Enterprise Private Cloud growing regions.

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award during BMC DAY in Middle East; Business to benefit from Enterprise customers to demonstrate to crown its efforts in cloud computing their business potential before services that facilitate the all business Etisalat “Smart Glasses” introducing them to the market. clients operations Based on the result of the trials and Initiative customers’ feedback, Etisalat will Etisalat, the leading subsequently create offerings across Orange to test new telecommunications operator in its international footprint of 18 Middle East, Africa and Asia, has countries. The wearables were recently network for IoT devices partnered with Ubimax, a leading demonstrated on Etisalat’s stand at Orange and Ericsson have teamed up provider of wearables solutions to GITEX 2015. to test a new network anticipated to businesses, to trial the next generation deliver a better job of funneling data of Smart Glasses, which will provide from Internet of Things (IoT) devices. These two firms will be launching a series of trials centered on three considerable areas for IoT. Specifically, these tests are hoped to enrich indoor coverage, lower the costs of IoT devices and lengthen battery life. These tests will involve IoT devices over LTE and GSM. Yasir Hussain, strategic product manager of Ericsson’s radio business unit, said the result by these trials will start showing up in networks as early as 2017. The initial test is slated to kick off in France, with device reachability as its focus. The test will use the 900 MHz band, which is also used in the U.S. for baby monitors, cordless telephones and microwave ovens. The purpose of the test is to boost the coverage by seven times the existing 2G network, making it possible to reach distant outdoor monitoring locations or basements, for instance. major benefits to companies in terms The second and third tests are in of efficiency and productivity. Smart du introduces Smart collaboration with LTE modem maker Glasses technology allows users hands- Sequans. The primary goals of these free access to relevant information Healthcare Programme two remaining tests are to increase and supporting documents while at UAE Innovation Week battery life and minimize costs for conducting their work. As a result, du has introduced the Smart Healthcare IoT devices. Sequans will supply to operations are simplified, errors are Program on UAE Innovation Week at Ericsson and Orange its uniquely reduced, productivity increases and the interactive du stands displaying built modem, which has an antenna time is saved. This has a significant how innovation can help save lives! and uses much less processing power impact on business efficiency. Such The Smart Healthcare Program will and memory. Senior Vice President solutions will add real value across address global healthcare issues, of Orange Labs Networks Alain a number of industries, including; including risk of incorrect emergency Maloberti said that the IoT is a vital logistics, construction, Oil & Gas, Field diagnosis and lack of patient history area in the Essentials2020 Strategic Maintenance, training and in the retail access, as well as position Dubai as a plan of the company, and France will sector. Khalifa Al Shamsi, Chief Digital global E-Health hub. The aim of the have to play a substantial part in the Services Officer, Etisalat Group said: program is to use the current and takeoff of IoT in Europe. “In order to “Smart Glasses are a driver of the next future Smart City infrastructure to extend our connectivity offer, we are generation of business innovation. embed medical record profiles into currently deploying a LoRa network,” By partnering with Ubimax, Etisalat every resident’s Emirates ID. This profile said Maloberti. “We are preparing the is consolidating its position as a will provide GPS applications for Smart future of cellular networks and we are leader in bringing new products and Devices and Emirates ID-enabled happy to collaborate with Ericsson to new technologies to market for the chips for real-time access, speeding be the first operator to demonstrate benefit of our customers across our up the medical emergency response IoT over GSM and LTE in order to roll international footprint. In addition, and intervention time to save lives. it out ahead of 5G availability in the this innovative technology will create This system will enable all medical market.” a new line of solutions, as well an additional revenue stream for Etisalat.” entities in UAE to be connected to it. Etisalat will leverage its infrastructure Moreover, all UAE entities will have a and its Internet of Things capabilities unified record system based on the to conduct trials of the wearable E-ID which will save money, improve solutions with Government and emergency response, and leverage access to healthcare in the UAE. Having

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SAMENA TRENDS _ DEC 2015 SAMENA TRENDS _ DEC 2015 patients’ medical histories, including reduce medical hazards from wrong inclusion and active participation of previously prescribed medication, diagnosis. Medical record updates will all players within the digital value- allergies, surgery and other medical be continuous, updated by authorized chain. Orange is a very well-known procedures in one place will lead to doctors and hospitals whenever a name within the SAMENA Council’s savings and better care, helps avoid patient is admitted to any hospital or membership, and we are delighted to repetition of prescribed tests and clinic across the UAE. The information welcome Mr. Mickael Ghossein to the results in overall convenience, leading that will be collected includes a full membership and to our community to increased satisfaction levels. The blood picture, heart condition, sugar of leaders.” As a global integrator of benefits that this technology can offer condition, hypertension condition, advanced communications services, are exponential: it has the potential to liver and kidney functions, current Orange Business Services will be able increase life expectancy by offering medical treatment, allergies and to leverage the Council’s regional intelligent treatment in a timely geographic genetic mapping. and international reach as well as manner and eliminating the cost of stakeholder relationship-building poor medical care quality and wrong platforms and activities, which are medical prescriptions hazards. In Orange Business designed to keep dialogue open to addition, the technology will enable help encourage ICT policy framing patients to be reached regardless of Services joins SAMENA and investment in digital infrastructure their position using GPS applications Council as a member development, and to enable enabled on smart wearable devices. partnership development among the “We are addressing a global healthcare SAMENA Council has announced stakeholders. issue by identifying the root of the that Orange Business Services has cause and offering a tangible and joined its membership as a global innovative future solution today. Our enabler of digital transformation. Ooredoo named the aim is to become the lifestyle partner Orange Business Services is a of choice for the citizens of the UAE. global telecom operator, and an IT 2015 Middle East Mobile Our business works in tandem with a solutions integrator and applications Operator variety of partners to ensure that the developer. Its 20,000 global employees products and services we offer are of support companies in all areas of Ooredoo was named the 2015 Middle the best quality and really add value their digital transformation: mobile East Mobile Operator of The Year to life, and we are all set to collaborate and collaborative workspaces; IT/ during the 10th CommsMEA Awards. with the Ministry of Health and all cloud infrastructure; fixed and Judged by the panel of experts for related authorities to execute the mobile connectivity; private and its market leadership and vision, the Smart Healthcare Programme, which hybrid networks; applications for company showcased how its growth supports our efforts to position the UAE Internet of Things, 360° customer strategy is centred on a sustainable as a global force across a number of experience and Big Data analytics; cycle; delivering an exceptional industries and aid in its diversification and cybersecurity with dedicated customer experience which reinforces to a knowledge based economy. The experts and infrastructure to protect the excellence of its innovative newly launched programme will not information systems. More than products and services. The accolade only position the Emirates as a global 3,000 multinational organizations is the crowning of a very successful leader in the area of health, but also as and 2 million SOHOs, enterprises year for Ooredoo in Oman which saw a front runner in big data assimilation and local authorities in France rely its customer-base increase by 10% and segregation,” said Samer on Orange Business Services as their during the first nine months of 2015 Geissah, Vice President, Consumer, trusted partner. Mickael Ghossein, and revenues growing by 12.4% for New business and Innovation. The Senior Vice-President, said, “At the same period. The company also project is special as it is a result of an Orange Business Services, we are on consolidated its leadership in network internal Innovation campaign within the lookout for new opportunities to performance, recently acquiring a the company, which saw three staff build upon our expertise as a global new spectrum frequency (LTE 800) members, Basem Temraz, Mohamed communications business partner, and to provide improved 4G coverage Abdallah and Fathi Abdeldayem, put to visibly play our role in the overall and additional capacity across the forward the proposal for implementing digital transformation of enterprises country. Considered to be one of this technology. “We are very proud of and government bodies alike. We the industry’s most highly respected our staff that took part in our internal feel our relationship with SAMENA telecoms authorities in the Middle innovation campaign to come up with Council will help us fulfil our strategic East and Africa; CommsMEA annually this revolutionary idea. This project is business objectives, while allowing recognizes the best performing a celebration of the value that the staff us to keep the stakeholder dialogue companies and individuals throughout lend to our company on a daily basis, to active within the community.” Bocar the region. The awards also honor stay ahead of the curve when it comes BA, CEO of SAMENA Council, stated companies that implement winning to innovating for a better life,” Geissah that “Orange Business Services is strategies and for customer experience continued. The end to end Smart City a global name, which is known for initiatives that inspire end-users. Health Applications will be enabled supporting enterprise and public- by the world class technology and sector needs throughout their network infrastructure that the UAE digital transformation. This is very boasts of. Furthermore, the technology much in line with SAMENA Council’s will connect hospitals, clinics and industry-wide digital objectives, pharmacies under one platform to which can only be fulfilled with the

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REGIONAL NEWS

Troubled Pakistan market high taxes, low return on investments and weak economic growth. The federal sees data revenue rise 69% government doubled the sales tax on It’s been a difficult year for Pakistan’s various categories of imported mobile mobile players, but the one bright spot handsets in June to PKR300-1,000 ($3- in the market has been strong data $10), and the government in Punjab revenue growth. According to a report introduced a 19.5 per cent sales tax on by the State Bank of Pakistan (SBP), data internet usage in early June. In addition, revenue in the second half of the year direct foreign investment (DFI) plunged grew 69 per cent from the previous year. 72 per cent in the fiscal year ending 30 Without stating figures, the annual report June and the sector’s tax contributions said the increase in data revenues is likely fell almost 50 per cent from the previous to continue in the second half of the year. The drop in DFI was attributed in part REGIONAL fiscal year ending 30 June, ProPakistani to the huge inflows from the operators’ reported. Operators are starting to see parent companies a year earlier for the UPDATES benefits from their investments in 3G/4G 3G/4G spectrum licenses. networks in the form of rising mobile data penetration and usage, with about one million 3G/4G customers added each Saudi e-commerce market month since the commercial launch of these services, the SBP report estimated. worth US$2.7 billion The top four operators, which together Mahir Salib Jamal, chairman of Makkah have 94 per cent of the country’s mobile Chamber of Commerce and Industry, users, added more than ten million 3G said that his chamber has cooperated connections in the first three months of with the Alibaba platform of Dubai and the year, according to GSMA Intelligence. are collaborating with Dubai Chamber Mobilink, the market leader by a small of Commerce to benefit from their margin, added 3.1 million 3G connections successes in international advancement during the period, while number two through their efforts at serving the Gulf, Telenor picked up 3.3 million. Zong, the Arab and international business sector. only 4G player, had 200,000 4G users in Jamal was speaking on the two-day Q3. Operators’ revenue in Q3 fell 12 per open meeting introducing Alibaba.com cent to PKR102 billion ($98 million) from platform. He added that the Makkah the previous quarter; mobile revenue chamber now has the exclusive rights to dropped 1.8 per cent in the fiscal year represent the platform in the Kingdom. ending 30 June. Operators are also He added that this meeting comes in line struggling with low margins and have with their efforts to move forward with complained to the government about the e-commerce industry in Saudi Arabia

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and to support local establishments, on memberships and additional demand. According to Ericsson’s businessmen and businesses to services. He said that MCCI, which mobility report for the MENA region, become more international. He is now the exclusive representative mobile data traffic is expected to grow added that the world e-commerce of the platform in Saudi Arabia, has 16 times greater than the current 2015 business reached $994.5 billion and specified an amount of SR1,530 for rate, validating the potential mobile it is expected to hit $1,506 billion membership in the platform for has in terms of purchasing power. by 2018. Speaking about the GGC commercial purposes. He added 2015 has already witnessed a growth region, he noted that Kingdom has those registering can benefit from of 80 per cent in mobile traffic from achieved $2.7 billion this year while training provided by a special visiting the previous year, with the share of the UAE has achieved $5.1 billion. team from Dubai. The amount mobile digital sales in KSA and UAE Regarding the Alibaba platform he that a trader will pay added, the markets rising up to 38.8 percent. said it will serve intra-exchange and secretary general, represent 2% will not be restricted to exports only. of the actual amount needed to Both producers and providers of start a shop on ground. Further the ICT R&D Approves services will benefit from the platform platform saves effort needed to fulfill particularly that it provides for a license and other obligations from Projects to Promote ICT large-scale market that will result in the municipality and civil defense and Agriculture benefits for both buyers and sellers. among others. The MCCI he added The National ICT R&D Fund’s Board of The platform also provides different an initiative for productive families Director has principally approved three services to producers and traders to benefit from the platform under projects, during its 41st Meeting held of different levels. He added that the name “Made in Makkah” and the in MoIT here in Islamabad. The meeting they have arrived at an agreement chamber is now marketing this vital was chaired by Minister of State IT Mrs. with the Saudi Post to serve those project and is holding workshops for Anusha Rehman, Federal Secretary benefiting from the platform some products. IT Mr. Azmat Ali Ranjha, Chairman specially entrepreneurs of both PTA Member Telecom, Member HR genders and productive families. and other Board Members were also He called on the Saudi chambers to Mobile sales share in present in the meeting. These three cooperate with MCCI to benefit the approved projects include “Specialized entire Saudi economy and advance the Middle East surpass training in areas of ICT skills” , “ICT for its performance. Meanwhile the world-wide average women entrepreneurship program” deputy executive chairman of Dubai Criteo has found that the mobile and “Scoping study for National Chamber for commercial services, share of all digital sales in the Middle Agriculture information management Agig ibn Joma’a, noted that MCCI will East is 38.8%, which is higher than and dissemination system”. CEO ICT be the exclusive representative of the the world-wide average of 35%, R&D Fund co. has been directed by Alibaba platform in Saudi Arabia and according to Criteo’s Q3 State of the Board to liaison with Ministry of that will help in various Saudi exports. Mobile Commerce Report. The study, Agriculture and National Commission The platform, he added, has a large- which analyzed industry wide trends, for status on women (NCSW) in order scale use for commercial exchange provides marketers with fundamental to get their buy in. Anusha Rehman regionally and internationally mobile commerce intelligence for said that although Pakistan is ranked and it has a great potential for engaging consumers and increasing 4th on E-lance in terms of top earning entrepreneurs of both genders. He sales. Criteo’s research highlights freelance countries, however the called on the business community that the share of smartphones of hourly rate for each developer is to benefit from the platform by mobile sales in KSA and the UAE is at quite low. ICT training program can ensuring economic exchange and a substantial 79 percent, outshining help them to overcome their short cooperation between the countries their tablet counterparts, which hold comings to improve their skills. The in the region and also achieving a current share of 21 per cent. This State Minister in recently held meeting international exchange. Alibaba, he trend has been observed globally, but of the Senate Standing Committee added, saves time and effort needed is significantly higher in the Middle on information Technology stated to reach the target consumers at low East. Additionally, Criteo found that that IT/telecom sector of the country cost and it is also recognized by its mobile order values compared to registered 46 percent growth during transparent operations for all parties those of desktop are at a ratio of 82 to last two years. The number of involved in a commercial transaction. 100. “Mobile must be given increasing registered IT companies increased Abdullah Al-Ghalib, secretary general importance by ad strategies in order from 300 to 1100, besides around 800 of MCCI, provided a comprehensive to effectively engage with tech savvy call centers in the country. According introduction about the platform consumers in this day and age, and to the State Bank of Pakistan, telecom and he explained that traders who marketers must closely monitor the sector exports is $370 million, however buy from factories would benefit consumer’s purchase journey if they according to the Pakistan Software from the different variations that the want to entice buyers and capitalize Export Board (PSEB) study it is around platform provides. Further, he added, on sales,” said Dirk Henke, Managing $2.8 billion as many companies do that the platform generated sales Director Emerging Markets, Criteo. not bring their total remittances in that are worth $296 billion in 2014 Criteo’s findings are in line with the the country due to flaws in policies. and its total revenues is $8.5 billion, region’s current ecommerce and The government has given the target exceeding similar platforms like technology trends, especially with to increase IT exports to $500 million Amazon and Ebay. Despite the great operators in the UAE implementing by 2018. The minister further said value of total sales Alibaba does not high-speed mobile internet upgrades that Pakistan is ranked at no 4 in the take a percentage or commission for to cater to growing consumer world after USA, UK and Ukraine with deals and just relies for its income

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SAMENA TRENDS _ DEC 2015 SAMENA TRENDS _ DEC 2015 respective to E-lancing. Currently and smartphones. “In a continuation Egypt, Nigeria, and certain other parts 75,000 people are involved in the from Q2 2015, Turkey and the ‘Rest of Africa. As previously reported, there E-lancing and export software; of the Middle East’ region (Iran, will continue to be a gradual shift in the however the data is not being Iraq, Syria, Yemen, Afghanistan, and weight of demand from consumers to recorded. She further said that SBP Palestine) experienced the sharpest the commercial segment as a growing has issued policy directives with declines within MEA,” says Fouad proportion of home users switch from IT ministry recommendation to Charakla, research manager for PCs to tablets and smartphones and introduce six-digit code to ensure personal computing, systems, and commercial end users maintain their transparency in export data. infrastructure solutions at IDC Middle loyalty to PCs. As a result, commercial The Minister said that IT sector East, Africa, and Turkey. “However, demand for PCs in the region is is enjoying tax holiday status the quarter also saw steep declines expected to surpass that from home from 2000 till 2016. The Minister in Saudi Arabia and Pakistan, with the users by the year 2017. further said that its our utmost former seeing its economy hampered desire to reduce digital divide in by low oil prices and the latter failing arena of ICT. The ICT for women to repeat the massive education Bhutan’s ICT global entrepreneurship program will projects that caused a spike during help us in leveraging ICT capacity the corresponding quarter last year.” ranking improves for the benefit of our women The top three vendors remained Bhutan’s ICT development index and girls. Therefore, this Capacity unchanged in Q3 2015, with all of (IDI), used to monitor and compare building program will be initiated them suffering significant declines. HP developments in ICT between in federal viz a viz provincial continued to lead in terms of market countries, has improved significantly capitals, simultaneously. Anusha share, but saw its shipments fall 27.7% since 2010, placing the country even Rehman has further said that year on year, while second-placed above regional neighbors. Bhutan Agriculture constitutes the largest Lenovo suffered a 37.6% reverse as the has been ranked 119 in measuring sector of Pakistan’s economy, with vendor made greater efforts to reduce the Information Society Report 24% contribution in GDP and its inventory levels. Third-placed Dell 2015 compiled by the International having huge potential to become posted a decline of 11.6%, with fourth- Telecommunications Union. Bhutan Food basket; in the central Asian placed Acer and fifth-placed Asus was ranked 128 in 2010. In comparison, region. However, utilization of ICTs experiencing declines of 16.9% and India is ranked 131, Nepal follows at is required to address the needs of 36.3%, respectively. It is worth noting 136, and Bangladesh is at 144. The sustainable growth in agriculture that the top three vendors combined rankings are based on the IDI score, to maintain food security and accounted for more than 65% of which is a composite index combining economic growth of the country. commercial PC demand in the region eleven indicators into one benchmark A National Agriculture information during the quarter. Local desktop measure that can be used to monitor management and dissemination assemblers in the region continued to and compare developments in ICT system will be a step in the right suffer significantly in comparison to between countries and over time. direction for achieving the goal. the previous year as demand for their Bhutan’s IDI score is 3.35 out of 10, The Board also directed ICT R&D devices continues to be cannibalized compared to 2.02/10 in 2010. The IDI Fund Company to liaison with by the growing availability of measures the level and evolution over Ministry of Agriculture and NCSW aggressively priced refurbished PCs. time of ICT developments in countries, to get their input before finalizing The final quarter of the year is expected progress in ICT development, the the RFP. to play host to yet another steep year- digital divide, and the development on-year decline, with IDC forecasting potential of ICTs. It is measured by the market for 2015 as a whole to looking at levels of ICT access, use, Tablets and total 14 million units, down 22.2% and skills. The report points out that on 2014. “Most of the key inhibitors in the Asian region the most dynamic smartphones impact currently hampering PC demand - improvements were achieved by Middle East & Africa such as low oil prices, exchange-rate Bhutan, Thailand, and Mongolia. fluctuations, and uncertainty due to Bhutan is currently ranked 21 out of PC market the ongoing war against ISIS - are 32 countries in the Asia-Pacific region. The Middle East and Africa (MEA) also impacting consumer confidence Korea, Hong Kong and Japan are the PC market suffered another sharp and are expected to persist for at least top three ranked countries in Asia. decline in Q3 2015, according the next few quarters,” says Charakla. Globally, Korea, Denmark, and Iceland to the latest insights from “As a result, IDC has significantly are ranked top three. Department global technology research and downgraded its regional PC market of Information Technology and consulting firm International Data forecast for 2016, although a recovery Telecom (DITT) officiating director, Corporation (IDC). Shipments is predicted towards the end of 2016 Jigme Tenzing attributed a number slumped 27.8% year on year, which and into 2017.” According to IDC’s of factors for the improved ranking. represents the steepest decline new forecast, 2016 will see mild He said that the farsighted visions of ever recorded in the region for a growth in shipments, with a much our Monarchs, the government, and single quarter. Desktop shipments bigger recovery expected in the year donor support are to be attributed. declined 21.0% year on year to 2017. Looking further ahead, the years For instance, he pointed out that the total 1.3 million units, while the 2018 and 2019 will also experience Indian government’s financial support notebook segment shrank 32.6% mild shipment growth, stemming had made it possible for the laying to total 1.7 million units, partially mainly from countries with low PC of fibre optic cables nationwide. This owing to the cannibalization of penetration rates, such as Pakistan, increase in ranking is expected to consumer demand by tablets the ‘Rest of the Middle East’ grouping, improve investor confidence in doing

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ICT business in Bhutan. “The IDI providers through implementation year. According to research firm ranking indicates the effort Bhutan of regulations and creating business International Data Corporation, IoT has put into the adoption of ICT in the opportunities for the private sector in spending in the Middle East and overall development,” Jigme Tenzing the ICT market are being pursued. The Africa (MEA) is projected to grow said. “Despite the improvement, it government is working on regulations 22 percent between 2013 and 2018, can be noticed that there is a lot to to increase the uptake of internet compared to the 18 percent globally. be done and it would take efforts in the country so that the increased The IoT investment in the MEA region from each individual of the nation volume of users would reduce costs. is expected to grow 20.7 percent to to progress further.” But challenges Another measure being pursued is $7 billion (Dh25.7 billion) in 2016, towards further improving the ICT the establishment of a third link to the compared to $5.8 billion this year. scenario exist such as ensuring internet via Bangladesh. The laying of Ahmad Julfar, CEO of the etisalat reliable international internet optical fibre to 18 dzongkhags, and Group, said that the “smart future” connectivity, affordability, and quality ADSS (All-Dielectric Self-Supporting) of the UAE is inherently built on IoT of services. For instance, both of cables to two dzongkhags and 196 and a well-connected infrastructure. Bhutan’s links to the internet pass gewogs are underway. This high- Having invested billions of dirhams through a vulnerable narrow strip of speed network has been made in fixed and mobile infrastructures, he land in Siliguri, India. “So, establishing available to the service providers for said that etisalat is contributing to the a reliable international connectivity free to ultimately bring down the cost enablement of IoT and smart cities in has been a big challenge for Bhutan of connectivity. The report also shows the UAE by investing further in IoT and and this has been an impediment of that Bhutan’s data cap of 4GB, which Big Data platforms and enhancing the foreign investment in the country,” is in fact now 3.8GB following the ecosystem for a number of solutions. Jigme Tenzing said. It was also imposition of tax, is higher than India He stresses that 90 percent of the pointed out that the market for (1.5GB), Bangladesh (2GB), but much data available with us today has been telecommunications and ICT services lower than Nepal’s at 7GB. created during the last 24 months. is low given the small population of Out of this, etisalat is effectively using the country but that the investments only 1 percent of the data. Etisalat required for establishing the IoT investment in the points out that by 2020, energy meters infrastructure for the services is high world over will be replaced by Smart due to the geographical terrain. “This MEA region expected Meters. Hundreds of data points has led to reluctance in investment to grow to $7 billion in per person will be transferred to from the service providers,” he said. preferred health care providers. Julfar For instance, the establishment of 2016 said that telcos play a vital role that community centres in the gewogs The global revenues from the Internet cannot be replicated as connectivity to provide reliable and fast internet of Things (IoT) will increase more than is vital and critical. Within the Mena connectivity has been a continuing 18 per cent from $655.8 billion (Dh2.4 region, the cellular connections for challenge due to the terrain, he trillion) in 2014 to $779.9 billion this IoT will increase by 500 percent in explained. The report also points out year, said a top Cisco official. IoT is the next five years. He stressed that that while fixed-broadband prices defined as the network of devices the IoT industry is fragmented and increased in 2014, entry-level fixed that are connected to the internet and a standard should be set, otherwise broadband plans in some countries can be controlled remotely, “We have it will not be economical. It will not included better quality or higher passed the incubation phase, now become “efficient and economical” speeds or more data for money. In IoT/smart city solutions are ready to for people to use it. Menon said that the Least Developed Countries (LDC) be scaled. Cities who scale first will it is happening fast (standard). The category, only three LDCs – Bhutan, be the winners in an increasingly governments are involved and the Cambodia, and Timor-Leste offer a competitive environment. Dubai is protocol discussions are happening basic fixed-broadband connection rapidly transforming into becoming within the industry. No two cities are speed of above 1Mbit/s (Megabit per one of the smartest digital cities in the managed the same way. second). The most common entry- world connecting the unconnected level speed offered in developing through the power of intelligent countries is 256kbit/s (kilobit per networks,” Anil Menon, president of Middle East’s first proof second) and 5Mbit/s in developed Smart+Connected Communities at countries. In what may surprise Cisco , said at the third annual Internet of concept for NFV local internet users, the report also of Things World Forum (IoTWF) taking presented reveals that internet prices in Bhutan place in Dubai from December 6-8. Ericsson and Zain announced the are considered cheap for some data The event is showcasing more than Middle East’s first proof of concept for packages like the pre-paid handset 20 digital city and connected industry virtual Evolved Packet Core (vEPC) and based 500MB and pre-paid computer solution deployments made possible virtual IP Multimedia Subsystem (vIMS) based 1GB. However, this is calculated in IoT. Menon said that in 2013, solutions combined together with an by considering the purchasing power things that are still not connected to ambition to offer customers a better of local currencies. On measures to the internet stood at 99.25 per cent, user experience. The objective of the improve reliability, Jigme Tenzing but the figure fell to 99.07 per cent in proof of concept is to demonstrate said that tariff and quality of service 2014 and this year, it will be 98.85 per cloud use cases that enable Zain to studies to find avenues to reduce cent. The IoT industry is growing two- have faster time to market and easy prices and improve quality are fold year-on-year while the number deployment of many ICT services underway. Additionally, measures to of IoT connections in manufacturing such as, Voice over LTE (VoLTE), foster competition among the service have grown 204 percent year-on-

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Machine to Machine (M2M), Rich consulting services firm International mind, IDC predicts IT security spending Communication Services (RCS) Data Corporation, which announced a across META to grow 12 per cent year and Enterprise Solutions. Hisham series of ‘IDC FutureScape Predictions’ on year in 2016, reaching a total of Allam, Chief Technology Officer, for the year ahead. “Sitting at the $1.5 billion. Cost optimization efforts Zain Group said: We are keen to heart of most digital transformation and a lack of the required skills will lead the way in the region when it efforts across the region is some drive demand for security services in comes to virtualization as it paves combination of the main 3rd Platform the year ahead, while the proliferation the road for implementation of technologies -- mobility, cloud, Big of IoT technologies will push concerns new technologies across all our Data analytics and social business,” around privacy and physical security markets. Partnering with Ericsson says Megha Kumar (pictured), IDC’s to the top of the agenda. Central to enables us to achieve our strategic senior research manager for software the region’s digital transformation goals when it comes to enhanced in the META region. “And while this journey in 2016 will be the strong operational effectiveness and trend undoubtedly signals a positive growth that is anticipated in public customer experience. On her development for the region’s ICT cloud spending. “IDC predicts that part, Rafiah Ibrahim, President of vendors, it is also worth noting that a investments in public cloud services Ericsson, Region Middle East and number of macroeconomic factors are across META will grow 22.6 per cent Africa said, The successful Proof preventing the market from reaching year on year in 2016 to total more of Concept exercise showcases its full potential. Indeed, declining than $500 million,” says Kumar. “Much the possibility for operators to oil prices, political instability, and of this will be driven by the need to deploy NFV on a broader scale. volatile currency fluctuations have all transform capital expenditure into By using this technology, telecom played their part in IDC adjusting its operating expenditure, with public operators such as Zain are able initial forecast for 2016 down from cloud increasingly being viewed across to build global standard agile $270 billion. With such factors in the region as a way of overcoming networks and speed up their new mind, we feel a more modest year- budget constraints. In light of this, IDC service introduction. The Ericsson on-year growth rate of 3.8 per cent is expects most non-core applications Cloud Execution Environment attainable for the region, with software to be migrated to public clouds over and Ericsson Cloud Manager are and IT services responsible for much the coming 12 months, while some based on Open stack, OPNFV and of the increase.” IDC expects the organizations will even begin to shift ETSI MANO, allowing operators region’s top three biggest IT spenders their core applications in a bid to to deploy Ericsson’s and other to remain unchanged in 2016, with simplify their management processes.” vendors’ hardware and virtualized Saudi Arabia leading the way at $14 software products. This also helps billion. South Africa and Turkey will operators to allocate their network follow up with $13 billion each, while BlackBerry to leave resources more flexibly, simplifying there is a substantial drop back to Iran network configuration, and and the UAE, which are both tipped Pakistan after privacy ensuring savings in operational to spend $8 billion on IT in 2016. A spat and capital expenditure. “The key facet of the digital transformation BlackBerry will exit Pakistan on Networked Society will empower revolution that is beginning to take 30 December following an earlier transformation, creating disruptive shape in the region is the emergence government ruling which cited security changes across both industries of the Internet of Things (IoT) concerns, although the company and society as a whole. This ecosystem, with IDC predicting that argued that its real motivation is its collaboration with Zain to deploy IoT-related investments in META will commitment to user privacy. “The the first virtualization technologies create a market opportunity of $7.03 Pakistani government wanted the in terms of virtual Evolved Packet billion in 2016. “The adoption of IoT ability to monitor all BlackBerry Core and virtual IP Multimedia will accelerate the rate of digital Enterprise Service (BES) traffic in the Subsystem demonstrates the transformation as organizations and country, including every BES e-mail and trajectory with which regional stakeholders seek actionable insights BES BBM message. But BlackBerry will operators are able to transform to from the high volumes of data that not comply with that sort of directive. Ericsson’s vision of the Networked will inevitably be generated by the As we have said many times, we do not Society,” added Ibrahim. proliferation of connected ‘things’ support ‘back doors’ granting open such as mobile devices, wearables, and access to our customers’ information sensors,” says Kumar. “These insights and have never done this anywhere will transform the way businesses and ICT spending in the in the world,” wrote Marty Beard, the government organizations interact company’s COO, in a blog post. “While Middle East, Turkey, with customers, citizens, suppliers, we regret leaving this important and even employees, helping them and Africa to top $260 market and our valued customers to become more agile and innovative there, remaining in Pakistan would billion in 2016 than they could have previously have meant forfeiting our commitment ICT spending in the Middle imagined.” IDC believes that IoT to protect our users’ privacy. That is East, Turkey, and Africa (META) applications in the government, retail, a compromise we are not willing to will top $260 billion in 2016 as transportation, manufacturing, and make,” he added. The executive added organizations across the region utilities verticals will offer the greatest that while the company is willing increasingly embrace digital growth opportunity for vendors to help investigate criminal activity, transformation initiatives in a bid to operating in the META region, while it will not give governments an all- streamline their costs and bolster security is expected to form a key access pass to customer information. their flexibility. That’s according to component of any robust digital Although the government’s directive global technology research and transformation strategy. With that in was aimed only at BES services,

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BlackBerry said it decided to exit “Creating the largest operator in a testament to our Emirate’s growing the market completely. The ministry Pakistan is a significant milestone status as an environmental capital of of interior directed the Pakistan for Mobilink and Warid but also for the Middle East. This technology is Telecommunication Authority to Pakistan as a whole,” Dhabi Group part of ainnovative suite of ground- block BlackBerry’s secure Enterprise Chairman Sheikh Nahyan Mubarak breaking products and services we Services after 30 November; it was al Nahyan said. “Both parties bring are in the process of rolling out, in line first reported in July. The government their unique strengths to this with innovative vision of His Highness has since then extended the deadline merger. Warid, with its strong post- Sheikh Dr Sultan bin Muhammad to 30 December and BlackBerry said paid base and high quality 4G/LTE Al Qasimi, Member of the Supreme it will delay its exit accordingly. There network will complement Mobilink’s Council and Ruler of Sharjah, to are around 5,000 BES enterprise position in the market,” he added. protect the environment and ensure a customers in Pakistan, Bloomberg vThe transaction is expected to close sustainable future.” Khaled Al Huraimel, quoted a local newspaper as within six months from today, subject Group CEO of Bee’ah added: “At reporting. Back in 2010, BlackBerry’s to obtaining approvals from the Bee’ah , our top priority is innovation encrypted services faced possible relevant authorities in Pakistan. to augment the quality of life among bans in at least five countries, communities in Sharjah and the UAE. including India and the UAE, unless How we manage waste is one of the the company complied with similar First smart Wi-Fi bins most important challenges of our requests. In India’s case, security time. Smart solar-powered technology officials pressed the company for a launched in the Middle can change our lives”. Bee’ah ‘s waste decryption solution for its corporate East collection division, Tandeef - which emails and messenger services. plays a vital role in providing coherent United Arab Emirates-Sharjah, Bee’ah and sustainable environmental , the Middle East’s award-winning and solutions to meet the challenges of leading integrated environmental the community it serves - consists Mobilink completes and waste management company, of 2000 employees operating a fleet is introducing innovative solar- acquisition of Warid of more than 500 vehicles. Its street powered bins across Sharjah that cleaning and sweeping services and Telecom will act as hotspots, in line with the commercial waste collection, alongside Mobilink parent company UAE’s Innovation Week, which seeks facilities for pubic, residential, and VimpelCom on Thursday confirmed to promote and encourage the finest office and school recycling, work Mobilink’s acquisition of Warid ideas on innovation from government closely together to provide a seamless Telecom — Pakistan’s first mobile and private sectors, as well as the integrated environmental solution, telecommunications acquisition. public. Designed and built by BigBelly, which has made Sharjah a model According to the statement, Mobilink a leading provider of bin solutions in to emulate across the region. The will first acquire 100% of Warid’s the US, the units are being rolled out new solar bins complement Bee’ah ‘s shares in consideration for the starting in Sharjah, following an MOU recently launched Tandeef Smart Eco- Dhabi Group shareholders acquiring with Bee’ah , where the company fleet - a revolutionary expansion for approximately 15% of Mobilink’s committed to several hundred Wi-Fi vehicular green technology and state- shares. Mobilink Chief Executive bins to be deployed across Sharjah of-the-art functions. Encompassing Jeffrey Hedberg will become the CEO and the UAE in prominent locations sustainable, low noise electric vehicles of the combined business, which as soon as early 2016. This will make - a first in UAE waste management - will serve 45 million customers in Sharjah the first location in the Middle and vehicles that use Compressed Pakistan, giving it a substantial lead East to have smart bin technology Natural Gas to reduce the negative in terms of market share. The board with Wi-Fi hotspot in parallel with impact of CO2 emissions, the fleet of the new company will consist of leading cities such as London and improves the environmental impact seven directors, of whom six will New York. The innovative Smart bins of its operations with lower emissions be nominated by VimpelCom and will act as Wi-Fi hotspots and are and better efficiency. As evidenced by Global Telecom Holding (GTH) and double streamed for increased solar such developments, Bee’ah is at the one nominated by the Dhabi Group capacity. They also come equipped forefront of the region’s industry in shareholders. The merger is expected with sensors to detects when the ‘green’ innovation, and is constantly to create capital and operating bin is full, and communicates with seeking avenues and technologies expenditure synergies of about $500 the Bee’ah control room allowing in its quest to ensure a cleaner and million. The combined revenue of “Tandeef”’s team to make the healthier environment in Sharjah. both companies for the year leading necessary collection in an efficient to September 2015 was $1.4 billion. and eco-friendly way. The solar “We are delighted to announce the panels provide the energy required to agreement with the Dhabi Group operate the compactor, which allows Inwi introduces [Warid] shareholders today to the bins to collect five times more residential ADSL service combine our businesses in Pakistan,” trash before needing to be emptied. Moroccan telecoms operator Inwi VimpelCom CEO Jean-Yves Charlier Commenting on the development, (Wana) has launched a fixed ADSL said. “With the addition of Warid to HE Salim Al Owais, Chairman of service for residential users, dubbed our already strong customer base at Bee’ah said: “The smart wi-fi bins I-Dar, a month after rival operator Mobilink, we will serve more than 45 being introduced by Bee’ah are a step Medi Telecom (Meditel) introduced million customers and offer a best- forward in environmental innovation, its ADSL offering, Agence Ecofin in-class mobile and high-speed data optimally merging efficiency and reports. Inwi’s subscribers in the cities network – a key factor in the digital utility. The fact that Sharjah will be the of Casablanca and Rabat can now enablement of Pakistan’s economy.” region’s first location to offer them is

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SAMENA TRENDS _ DEC 2015 SAMENA TRENDS _ DEC 2015 sign up to unlimited broadband handy and only way for them to and vision to become a knowledge- access with download speeds adopt smartphones and ultimately the based economy. Establishing this of up to 20Mbps (bundled with internet. joint venture is a definitive reflection unlimited calls to fixed lines and of Mubadala’s strategy to foster long- 120 minutes of calls to mobiles) term economic growth and deliver for MAD249 (USD24.8) per month. Cognitive technology to world-class solutions to the Mena In comparison, Meditel’s offer region,” Barakat said. The partnership comprises unlimited broadband help build knowledge- with Mubadala will allow IBM “to grow with a 12Mbps connection, based economies in Watson at a much more accelerated unlimited fixed calls and 120 pace,” according to Brian Mulada, minutes of mobile calls for MENA IBM Watson’s chief financial officer, MAD240. Cognitive technology (also known who said that the company is now as artificial intelligence) could be working on introducing Watson in part of the DNA of businesses in all Arabic. Watson is expected to be able Smartphone sectors in the UAE and the overall to start ‘thinking’ in Arabic in the first Middle East and North Africa (Mena) quarter of 2016. “The Mena region is penetration in in the next few years, according primed for this type of technology. Pakistan to reach 51% to a Mubadala top spokesperson. Since introducing Watson through Mounir Barakat, executive director local client engagements, we’ve seen by 2020 of Information and Communications a strong response, and look forward Adoption rate of smartphones — Technology at Mubadala , said that to broadening cognitive adoption as compared to feature phones some of the region’s industries such by growing the Watson ecosystem — is expected to reach 51% by as healthcare, education, oil and gas, through Cognit. 2020, said a report published by and aviation are on their way to start GSMA. Report titled as “Building integrating cognitive systems into Digital Societies in Asia” said that their business. This would help raise Ooredoo, Ericsson sign current smartphone adoption rate efficiency, reduce mortality in the of 15% in Pakistan is likely to grow healthcare sector, and provide more 5G pact to over 300% to reach 51% with-in personalized learning experiences Sweden’s Ericsson and Qatar-based next five years as primary barrier for students in the education sector. Ooredoo Group have signed a for adoption of smartphones, i.e. Barakat was speaking at an event on Memorandum of Understanding prices are coming down to below Monday to announce the launch of (MoU) for 5G development ‘with $100. Report said that average a company called Cognit Technology the ambition of developing use price of smartphones dropped Solutions, which is the result of a cases, requirements and deployment down to $200 in 2014, down from partnership between Mubadala , scenarios for 5G technologies’, a $329 in 2008. Further down the the Abu Dhabi-based investment press release announced, adding line, smartphones below $100 are company, and IBM , the American that Ooredoo and Ericsson will now becoming a reality, however, technology company. Cognit is set to evaluate both the performance and there is a clear need for more help provide IBM’s computing system, applicability of potential key 5G vendors manufacturing these low Watson, to organizations in the Mena components in a controlled test prices phones to become more region, and support entrepreneurs, environment. Sheikh Saud Bin Nasser common in growth markets like app developers, and startups that are Al Thani, CEO at Ooredoo, said: Pakistan. Report said that under creating Watson apps and services. ‘Ooredoo is striving to support our $100 smartphones currently Cognit is now the exclusive provider customers’ activities in an increasingly account for over 40% of total for IBM Watson in the Mena region. digital, connected world and we are smartphones in India and since Watson came into prominence in determined to be at the cutting- below $100 smartphones have the US in 2011 when it defeated two edge of network technologies. We’re started to surface in Pakistan, top contestants in the game show, pleased to partner on developing next the smartphone adoption Jeopardy!, signaling the emergence generation technologies with Ericsson, rate will grow incrementally to of a new computing system that a trusted partner and a major supplier around 80 million by year 2020. could process information similarly for Radio Access, Core, Transmission, Report said that ultra-low-end to humans, reason, and understand OSS and BSS. We look forward to smartphones are of particular natural language. Today, Watson is working towards developing 5G relevance in emerging markets being utilized in the health-care sector technologies together.’ Jan Wareby because handset subsidy from in the US specifically in oncology to of Ericsson added: ‘We are looking operators — such as they offer help treat cancer patients. During the forward to our joint exploration of the in various developed markets — event in Abu Dhabi, representatives possibilities and opportunities that 5G has comparatively low application from the Dubai Municipality, Abu technologies will enable. We believe in developing markets, making Dhabi Education Council, and Tawam that next generation networks will it hard for masses to adopt Hospital said they had laid out a have a profound impact in the future smartphones. Moreover, since vision to transform their organizations by enabling anything and everything low-income segment dominates using cognitive computing. “The to connect, bringing value across a in developing markets, these ultra- collaboration with IBM to bring number of verticals in the Networked low end smartphone becomes Watson applications to the region is Society.’ aligned to the UAE’s strategic goal

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Regulatory NEWS

OFCOM publishes white FCC no longer requires spaces rules telecom operators to U.K. regulator sets out device requirements share new broadband aimed at avoiding interference with TV, microphones. infrastructure The U.K. took another step towards using The FCC will require incumbent local white spaces spectrum for unlicensed exchange carriers--AT&T, Verizon, mobile broadband services on Monday, CenturyLink and others--to continue to when regulator Ofcom published rules make their existing “brownfield” conduit designed to avoid interference with available to special access broadband other spectrum users. The frequencies business service competitors, including in question sit within the 470 MHz-790 cable operators, but not require similar Regulatory MHz band, which is currently used for access to new “greenfield” build outs. That a variety of services including wireless came in the commission’s order granting Updates microphones and digital terrestrial TV most of the requests of USTelecom in a (DTT), among others. Following extensive petition that had asked the FCC to prune trials that included the likes of Google outdated rules as telecoms transition and Microsoft, Ofcom in February from copper to IP nets. The FCC described approved the use of white spaces for the decision this way: “No sharing mobile broadband. “Based on the trials required for new entrance conduits in and stakeholder feedback, there is new developments (greenfields), where considerable interest from industry in competitors have equal opportunity to developing this technology,” said Ofcom. build. Sharing of newly deployed entrance The newly-published rules establish the conduit in existing developments requirements that devices will have to (brownfields) still required, given the meet in order to be used for white spaces advantages the incumbent LECs enjoy in services without a license. The aim is to these situations.” USTelecom had wanted avoid harmful interference with other both the existing and future build outs spectrum users by limiting the power not to be subject to mandatory access levels at which these devices can operate. in an IP world, while the American Cable “Ofcom also plans to explore whether Association, whose members included the white space in other spectrum bands those competitive carriers, thought could be used for similar innovation in ILECs should have to share both. “ACA future,” the watchdog said. is disappointed because our view was that the ILECs failed to present adequate

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evidence to support not sharing extending the regulatory framework 9 December, inviting comments by their conduit in greenfield areas,” to include OTT players. Rather each 30 December. “It (Free Basics) helps association said in a statement. The service could be treated individually those who can’t afford to pay for commissioners generally supported rather than treating such players in a data, or who need a little help with eliminating the legacy regs, but one-size-fits-all approach. getting started online. And it’s open there were targeted dissents and to all people, developers and mobile concurrences, including Democrat networks,” says Facebook’s prepared Clyburn’s dissent from not requiring Facebook launches ‘save email. “With 1 billion Indian people access to new build out. She pointed not yet connected, shutting down Free out that Congress was working on “dig Free Basics’ campaign in Basics would hurt our country’s most once” bills that would prevent having India vulnerable people,” it adds. to duplicate broadband build outs Facebook is urging users to lobby along roadways and that the same India’s telecoms regulator in defense of idea applied in requiring access to its Free Basics service which the social Industry groups new builds. She said the FCC should media giant claims could be banned have done a study of the impact of not challenge regulator on “within weeks”. The company is urging requiring access to new ILEC builds, users to send a prepared email to call drop compensation as the FCC does for the “brownfield” the Telecom Regulatory Authority of India’s cellcos have challenged the build outs to businesses and dissented India (TRAI) in support of the service. authority of the Telecom Regulatory from that portion of the order. Facebook recently expanded the reach Authority of India (TRAI) over its of the Free Basics app, which is a October decision forcing operators product of the internet.org initiative, to to compensate users for call drops Avoid top-down the whole of India. It is partnering on (effective from January 1, 2016), regulation of spectrum, its rollout with local operator Reliance claiming that the regulator has over- Communications. But the service has stepped its powers. The Business says EU group run into opposition from net neutrality Standard writes that industry lobby Attempts to harmonize spectrum advocates. A debate has been raging groups the Cellular Operators allocation from the top down risks about so-called zero-rating plans, Association of India (COAI) and the “sterilizing” the process and could cause which allow users to access some Association of Unified Telecom Service inefficient use of radio frequencies, apps without paying data charges. Providers of India (AUSPI) have warned EU regulatory body BEREC. Mobile operators and Facebook have petitioned the Delhi High Court for It also said the existing regulatory been forced to defend the initiatives, a stay on the order on the basis that framework should not be extended claiming they are offered in a non- the TRAI does not have the power to to include OTT services, which instead discriminatory manner. But opponents grant compensation to end users. ‘The should be considered on a case-by- claim they violate net neutrality. grant of compensation requires an case basis. Regulation of OTT services Facebook’s message to users claims adjudication to establish a breach and should be proportionate so not to undermine what is an innovative part of the telecoms market, it said. Berec’s views on spectrum and OTT services are contained in an opinion document that is part of the review of the EU’s regulatory framework for electronic communications. This forms part of the Digital Single Market process agreed earlier this year. The regulator is a low- key part of the EU hierarchy which was set up in 2009 with a brief to assist the EC and national regulatory authorities. It replaced the European Regulators Group. Berec argues spectrum is key to Europe’s connectivity objectives but requirements vary from country to country. Too much centralized planning of how radio frequencies are allocated could hinder innovation, it reckons. “Instead, we would support promoting harmonized approaches to spectrum management from the “a small, vocal group of critics” are then determine liability of the party ‘bottom up’, “says the regulator. It lobbying to have Free Basics banned. responsible for such a breach. TRAI recommends greater use of the Radio If successful, the lobbying would does not have the power to adjudicate Spectrum Policy Group, working with impact the one billion Indians who under the TRAI Act and therefore, Berec. On OTT services, the group can’t afford access to the internet the decision to grant compensation says the definition of electronic without initiatives such as Free Basics, is without authority of law, without communications services needs more it argues. TRAI issued a consultation jurisdiction and is illegal,’ the COAI in clarification but this does not mean paper on differential data pricing on its statement. In October this year the

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TRAI introduced new rules requiring including examining the case for the from market leader Orange, amid operators to pay INR1 (US$0.015) in functional separation of Eir’s wholesale government fears that consolidation compensation to mobile customers business, the regulator said. However, will lead to jobs losses and a loss of for each call that is dropped up to a it was keen to point out that there are investment. total of INR3 per customer per day. The other options. The review will take measures are intended to encourage place next year. cellcos to invest in infrastructure, as EU proposes policy on subscriber growth has outstripped the capabilities of operators’ networks, Bouygues Telecom seeks cross-border access to leading to a deterioration of service OTT content services quality. According to operators, the €2.3B compensation The European Commission has compensation will cost the industry from French state presented the first legislative a crippling INR540 billion per year, Bouygues Telecom claims a roaming proposals in its Digital Single Market although the TRAI claims the figure agreement between Orange and strategy, focusing on improved cross- will not be more than INR2 billion per newcomer Iliad caused it a financial border access to digital content quarter, or INR8 billion annually. loss of more than €2 billion, according and unifying sales terms for online to Les Echos. The amount is owed purchases across the EU. The first to Bouygues Telecom by the French proposal is to allow consumers Irish regulator’s review government because ARCEP, the subscribed to an online music, e-book, could see Eir split country’s telecoms regulator, did not video or gaming service to continue properly supervise the 2G and 3G using it when traveling in another ComReg to examine incumbent’s roaming agreement, it said. Bouygues EU country. At the moment, access regulatory governance model next Telecom claimed the compensation is often restricted in other countries, year; rivals complain about fixed in a letter to French Prime Minister as licensing of copyrighted content network repair times. Ireland’s telecom Manuel Valls dated 4 December. is limited to national agreements. regulator this week announced it will It was signed by the operator’s The EC has proposed a regulation undertake a strategic review of Eir’s chief executive Olivier Roussat. The to give consumers access to their regulatory governance model that agreement enabled Iliad’s Free Mobile, subscriptions wherever they are in the could lead to a separation of the which launched its service three years EU from 2017. Digital Single Market incumbent’s retail and wholesale ago, to compete with rivals while it commissioner Andrus Ansip said it businesses. The move comes as a built its own network. The agreement should work the same as roaming, for number of the Irish telco’s major rivals runs until January 2018. However, which surcharges are slated to end in launch formal complaints about the Bouygues claimed that agreement 2017, giving users the same experience service they receive from its wholesale should have been framed more strictly in all EU countries. As the copyright unit. Eir has voluntarily shared by ARCEP, effectively providing Free change takes the form a regulation, it information that shows there are still Mobile with an unfair advantage. will come into effect immediately after areas in which its own retail business is Without such an advantage, Free approval by the European Parliament – or could be – given priority over rival Mobile could not have competed and Council and will not need to be operators when it comes to wholesale so aggressively on price, which cost transposed into national laws. Content services. The operator itself identified Bouygues Telecom financially, it said. providers will have six months after these areas and set out a timeline to The letter listed seven shortcomings the regulation is passed to adapt remedy them. “Nevertheless, they do of the agreement that add up to the their services to the new requirement. raise questions about Eir’s compliance €2.3 billion figure. Most important is The EC said this is the first in a with its obligations,” ComReg said, the loss of income and profit since series of planned copyright reforms, noting its compliance unit will assess the launch of Free Mobile in 2012 up with more proposals to be made the situation. “We also are concerned to the present day, which is valued at in spring 2016, based on ongoing more generally at the long lead times €1.16 billion. In addition, the company public consultations. The second experienced by alternative operators added a further €527 million to reflect proposal aims to support cross- in certain cases where they have the 2015-18 period. Loss of customers border e-commerce by simplifying requested new or amended regulated during 2012-15 cost €206 million and contract rules for consumers and wholesale products from Eir,” ComReg redundancies represent a further €309 businesses. The EC proposed two also said. Evidence suggests Eir’s rivals million loss. Bouygues Telecom also directives, one for the online sale of are not happy with the service they complained about a rise in the cost of digital products and one for for the are receiving. This month Vodafone acquiring new customers (€20 million), online sale of goods. These cover Ireland, Sky, BT and Magnet all increased indebtedness (€33 million) similar issues on liability and refunds entered into formal disputes with Eir and damage to its brand (€24 million). for defective goods and the right to over its repair times on the broadband The letter turns up the pressure on cancel a contract and use customer and fixed-line network, Vodafone ARCEP, which since the summer has data. The changes mean businesses revealed on Thursday, alongside its had new powers to approve network would no longer need to adapt to announcement that it has started sharing deals. The regulator is set to different contract rules in each EU legal proceedings against KPN in the issue new guidelines in the coming country and could supply digital Netherlands for abusing its dominant weeks on how it will regulate such content or sell goods to consumers in position in the fixed network space. agreements. Bouygues Telecom all member states based on the same Vodafone also made reference to was earlier this week the subject of set of key contract law rules. The EC ComReg’s review. The review could renewed takeover interest, this time estimates the new EU-wide rules could have a number of different outcomes,

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save a business operating in all 27 In the consultation paper issued on Omnitel, in a move that will see the states up to EUR 243,000. Consumers Wednesday, the regulator has asked former acquire the latter for EUR220 would also benefit from increased if differential pricing for data usage million (USD239 million) on a cash protection. They could request a was permitted, what measures should and debt free basis. The following product be repaired during the two- be taken to ensure non-discrimination month, the Competition Council said year standard guarantee without and affordable internet access among that the transaction does not require having to prove the defect existed at others were addressed. TRAI has also its approval, as both TEO LT and the time the product was delivered. In asked stakeholders to specify about Omnitel are controlled by TeliaSonera. addition, consumers would be entitled alternative methods or technologies However, on 3 December Bite asked to a refund or to end a contract if a or business models, other than the Vilnius Regional Administrative digital service or product is found to differentiated tariff plans available Court to annul the Competition be defective, rather than just receive to achieve the objective of providing Council’s decision. a voucher towards a future purchase. free internet access to consumers. They also would gain a standard right The paper showed that TRAI will look to end a long-term contract if the into the zero-rating plans offered by Digicel Fiji still waiting provider makes changes to the terms telecom players. Bharti Airtel had of service and to have the provider withdrawn its Airtel Zero platform, on ministry concerning stop using their personal data if the which would have given users free special license for Sky contract is ended. access to certain websites. Airtel Zero had created a furor as many said it was Pacific purchase against the principle of net neutrality. Three months after it completed the Regulator floats paper Airtel had said Airtel Zero was just a acquisition of Sky Pacific, a division marketing platform. Under Airtel Zero, of Fiji Television, for FJD5.75 million to look into differential companies, including start-ups, could (USD2.66 million), telecoms services pricing in data services offer applications for free and the app- provider Digicel Fiji has clarified maker was to pay for the customer’s that it has not yet received the final in India free usage to the operator. Similarly, Special License required to complete The Telecom Regulatory and Facebook’s Internet.org allows access the takeover. Digicel Fiji CEO Darren Authority of India (TRAI) has issued to certain websites without mobile McLean is quoted by local newspaper a consultation paper on differential data charges. Net neutrality means Fiji Village as saying that, to date, his pricing for data services. It has asked if all internet-based services be treated company has only received documents telecom operators should be allowed equally, with no discrimination in terms from the Ministry of Communications to have different pricing for accessing of speed and cost of access. According with ‘draft versions’ of the special different websites, applications and to TRAI, there were about 300 million conditions, which needed ‘to be platforms. This comes amid a debate wireless internet subscribers in the agreed to before proceeding’. Mr. on net neutrality and zero-rating plans. country as on June. Out of this, about McLean said: ‘Digicel and the ministry TRAI said: “Till now, the regulatory 207 million subscribers use 2G (GPRS, are working together closely to guidelines on discrimination and EDGE and CDMA-1X) networks to clarify the conditions in detail and transparency in tariff offers were access internet, about 92 million ensure that the intended transaction more focused on addressing concerns subscribers use 3G (HSPA, WCDMA, is in the best interest of all parties in voice telephony. The growth of EVDO) and rest are 4G LTE subscribers. including government, Digicel, and data usage and the manner in which The average data usage per data user Sky Pacific customers.’ As reported by data schemes are being designed by for 2G service is 200 Mb per month TeleGeography’s CommsUpdate, in service providers calls for a relook and average data usage per data user October this year the status of Digicel at the regulatory principles of non- for 3G is about 800 Mb per month. Fiji’s subscription-based pay-TV discriminatory tariff and transparency service was said to be ‘in limbo’, amid measures in the context of data heel-dragging from the government tariff offers.” TRAI said some service Bite challenges on issuing it with the appropriate providers were offering differential operating license. Following the data tariff with free or discounted Competition Council September deal, Digicel submitted an tariffs to certain contents of certain decision on TEO, Omnitel application for an operating license websites, applications or platforms. with the Ministry of Communications, TRAI has invited comments till merger as per the rules set down in the Media December 31. Differential tariffs Bite Lithuania, the country’s third Industry Development Decree. Digicel results in classification of subscribers largest mobile network operator Fiji attorney-general Aiyaz Sayed- based on the content they want to (MNO) by subscribers, has challenged Khaiyum was quoted at the time as access (those who want to access non- a decision by the Competition Council saying, however, that it was still waiting participating content will be charged of Lithuania which asserted that a for the ministry to make a decision. at a higher rate than those who want merger between Omnitel and TEO LT ‘Until such time, no statements should to access participating content). does not require approval from the be made regarding the operational “This may potentially go against antitrust watchdog, reports Verslo control of or any content to be shown the principle of non-discriminatory Zinios. In October Swedish telecoms by Sky Pacific service,’ he said, adding: tariff. The potential benefits and group TeliaSonera announced ‘It is premature for Digicel to announce disadvantages of such practices have plans to combine its two Lithuanian any programming or content materials to be weighed in order to determine subsidiaries, fixed line operator before the issuance of a license.’ the regulatory approach,” TRAI said. TEO LT and mobile phone company

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DoT set to reorganize the CBC said, and has threatened to Communications Authority (Nkom) scale back its planned fiber installations confirmed the results in a statement, 1800MHz spectrum into if the ruling stands. Bell launched its with Telenor winning 2 x 10MHz at contiguous blocks for Gigabit Internet service to more than a price of NOK585.3 million. Rival a million households in Ontario and TeliaSonera took home 2 x 5MHz at a 4G use Quebec in August, offering download total of NOK292.7 million while number The Department of speeds of up to 940 megabits per three player Ice Communications, Telecommunications (DoT) is set second. Bell maintains that as part of which also participated, failed to to begin consolidating 1800MHz the business case for fiber, it needs secure any frequencies. The 2 x airwaves in seven circles in a bid to sell TV and home phone services. 15MHz available was unsold from to establish contiguous blocks of Currently Bell sells its Gigabit Fibe the country’s 4G multiband auction spectrum, suitable for LTE use, the service for $142.85 per month, but in 2013, when Ice Communication, Economic Times writes, citing two customers get price breaks if they also then known as Telco Data, surprised people aware of the matter. The pay for Fibe TV. Under the CRTC ruling, the market by winning frequencies at seven circles reportedly earmarked independent ISPs will pay a single the expense of then established player for the harmonization process are wholesale fee for customer. Though Tele2. Tele2’s failure in the auction led Delhi, Kolkata, Madhya Pradesh, West those prices haven’t been set yet, Bell it to agreeing the sale of its Norwegian Bengal, North East, Uttar Pradesh East expects them to be lower than the operations to rival TeliaSonera, with and Uttar Pradesh West. The 1800MHz prices it charges retail customers. Bell the long mooted deal finally approved band in the aforementioned circles is said in its petition that “it is impossible by Norwegian competition authorities expected to be harmonized before for the CRTC to set a wholesale rate earlier this year. Nkom said winners of the next spectrum auction in 2016, that adequately compensates those this auction will have until January 20 whilst the same process is expected who invest in fibre-to-the-home next year “to negotiate the placement to be gradually rolled across the networks for their investments.” Bell for the spectrum”. According to GSMA following circles afterwards: Assam, argues that independent ISPs should Intelligence, Telenor has just under 4.3 Maharashtra, Bihar, Odisha, Tamil just build their own fiber networks. million connections, with TeliaSonera Nadu, Andhra Pradesh, Gujarat, Bill Sandiford, president and CEO of almost reaching 2.6 million. Ice Rajasthan, Haryana and Mumbai. By the Canadian Network Operators’ Communications lags behind with reorganizing the band into contiguous Consortium said in an editorial in 216,000. blocks large enough for 4G services, the Globe and Mail that it would the DoT will boost the value of the cost independent ISPs far more to airwaves, allowing the regulator to build a national fiber infrastructure Deutsche Telekom CEO increase the reserve price, one of since they haven’t enjoyed the same hits out at regulators on the sources noted, adding that the “taxpayer subsidies and protection for watchdog is also expecting to free up competition.” Consumers are getting attitude to copper tired of waiting for big telecom an additional 10MHz of spectrum for Tim Hoettges rails against definition of providers to expand fiber networks. 4G use. fiber as ‘good technology’ and the likes In the US, some communities are of G.fast as ‘bad technology’. Telecoms partnering with Internet services regulators should focus on the companies like Ting to launch Bell appeals Canadian services received by end users rather municipally-owned broadband. Radio-television and than the technologies used to deliver those services, Deutsche Telekom Telecommunications Telenor wins biggest CEO Tim Hoettges said this week. Commission (CRTC)’s There are no authorities instructing in Norway’s 1800MHz the car industry what type of vehicle ruling on fiber to build, but in the telecoms space auction “they tell me I’m using bad technology infrastructure Norway’s 1800MHz spectrum auction or good technology,” Hoettges Bell has appealed a ruling that would raised a total of NOK878 million said on the sidelines of the World require large telecom companies in (US$103 million) after seven days Communication Awards in London on Canada to sell wholesale access to and 83 rounds of bidding, with Tuesday evening. He was referring to their fiber networks to independent market leader Telenor emerging as Deutsche Telekom’s decision to use ISPs, arguing these smaller ISPs should the biggest winner. The Norwegian techniques like vectoring and G.fast just build their own fiber networks. to extend the capabilities of its copper According to a report Monday by the access network. Regulators see fibre CBC, Canadian Radio-television and as “good technology” and G.fast as Telecommunications Commission “bad technology,” he explained. But (CRTC) made the ruling in July in “no customer cares about technology. order to enable independent ISPs to Nobody,” he said. “The telecom offer competing Internet packages, regulators made a big mistake,” providing more choice for Canadian when it comes to their approach consumers. Bell is appealing the ruling to regulating consumer services, to the CRTC and directly to cabinet via Hoettges said. They should categories a petition to the Governor in Council, things like broadband services as a

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consumer product, rather than as operator to PIC in July 2015, in order the U.K. government and Ofcom, an access product, he suggested. to help fund a ZAR23 billion (USD1.89 Swantee said. Meanwhile, over-the- Deutsche Telekom received the billion) allocation to struggling top (OTT) players continue to fly provisional approval of German domestic electricity supplier Eskom. under the radar, he said. “We cannot regulator the Bundesnetzagentur for The first tranche of the newly continue to have three organizations its vectored VDSL rollout plan last purchased shares – which increased all trying to bring new ideas around week. It will be required to provide PIC’s holding in Vodacom to 8.574% regulation,” he said, calling for greater a Virtual Unbundled Local Access (up from 1.525%) – was acquired on coordination between them. However, (VULA) product to competitors. July 31. TeleGeography notes that that would be difficult to achieve, he Hoettges believes the future of fixed- Vodacom Group, which is listed on the admitted. Avoiding regulating areas in line networks “is going to be hybrid,” Johannesburg Stock Exchange (JSE), is which there is sufficient competition that is, a combination of fiber and majority owned by UK-based mobile was a core premise of Ofcom, Swantee copper extension technologies. Not giant Vodafone Group (65.00%). said, calling for an end to unnecessary everyone agrees though. Hannes regulation. Today, “there are many Ametsreiter, chief executive of areas where competition works and Vodafone Germany, last month threw RCOM prepares to switch you don’t need regulation,” he said. his weight behind fiber, warning in a Swantee noted that he is not looking Handelsblatt editorial that Germany’s off 900MHz network in for more regulation on OTT companies, global competitiveness is at risk three circles just a more balanced playing field. if it continues to invest in copper “They are under the radar screen Indian cellco Reliance Communications networks. “A country that prefers to today and that needs to change,” he (RCOM) has issued a notice via SMS to extract the last remnants of capacity said. Swantee also addressed an area its customers in West Bengal, Bihar out of copper networks rather than that is close to the heart of its would- and Assam, encouraging those still investing in a future-safe fiber optic be new owner BT: pay television. “Pay using 2G technology to upgrade to infrastructure is jeopardizing its TV is very expensive,” with prices 3G by December 12, when the cellco international competitiveness as a coming in significantly higher than in will switch off its 2G infrastructure business and industry location,” he other markets, he said. “That needs to in those three circles. The Economic warned. Vodafone itself is offering be addressed by Ofcom.” Regarding Times writes that the operator failed broadband services in Germany EE’s takeover by BT, which received to renew its 900MHz concessions based on fiber-to-the-cabinet (FTTC) preliminary approval from the U.K. for the regions in the most recent and VDSL. But Ametsreiter appears competition watchdog a month spectrum auction and, as such, will to be looking further ahead, noting ago, Swantee insisted that the two shut down its 2G networks when the that emerging high-bandwidth companies are currently working on licenses expire later this month. After applications – Google’s driverless the mundane aspects of the deal, December 12, RCOM will continue to cars, for example – will require fiber such as making sure staff have the offer 2G services in the affected circles and ultimately 5G mobile access to appropriate building security cards via roaming agreements with other support them. Hoettges seems to and that the WiFi is operational. The operators, including Vodafone India, agree on that point. When it comes to question of whether the merged Aircel and Tata Teleservices (TTSL). Due 5G, “the backbone’s always fiber,” he entity will continue with a multi-brand to the differences between RCOM’s said. Hoettges collected the coveted strategy or adopt a single name will be coverage and the footprints of its CEO of the Year award at the World decided “in due course,” he said. “It’s roaming partners, some subscribers Communication Awards, having come quite an important decision, but it’s will no longer have access to the 2G out on top of a poll of Total Telecom not an urgent decision.” services. readers that attracted 19,000 votes. “He has a forward-thinking attitude and is overseeing investment in fixed Orange, Telecom Italia and mobile infrastructure, developing EE’s Swantee says a base for the company’s future,” one ‘competition works’, on renewed merger talk of his supporters commented. Telcos deny tie-up rumors, but calls for regulatory Orange admits it is looking ahead to coordination the possibility of a single European market. Talk of cross-border European PIC acquires second U.K. mobile operator’s CEO follows in telecoms mega-mergers continually BT’s footsteps by addressing lack of tranche of government’s resurfaces and Monday brought the competition in pay TV; says telcos are latest reports of a tie-up between 13.9% stake in Vodacom undecided on post-merger brand. The two incumbents: Orange and Telecom South Africa’s Public Investment U.K.’s telecoms operators are subject Italia. Both immediately denied the Corporation (PIC), which manages to over-regulation in areas where it report, which came from Bloomberg, investments on behalf of the is unnecessary and intervention from but an official comment from Orange Government Employees Pension too many different regulatory bodies, suggests the telco is considering its Fund (GEPF), has acquired a further EE chief executive officer Olaf Swantee future as the borders within Europe interest of 6.812% in domestic declared. “There is, frankly, too much begin to blur. “We have a strategy and telecoms provider Vodacom Group, regulation around mobile today,” finance department who work with thus increasing its total shareholding Swantee said in a keynote address at investment banks looking at our vision in the company to 15.386%. The South the Total Telecom Festival in London. of how the European telecoms market African government sold its 13.910% Telcos have three different bodies to might evolve in five to 10 years’ time stake in the Johannesburg-based contend with: the European Union,

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SAMENA TRENDS _ DEC 2015 SAMENA TRENDS _ DEC 2015 should the single market in Europe obligations, and methods to be used security deals; tied for the top-value become a reality,” a spokesperson for valuation and estimation of reserve big data analytics deal; and had the for Orange said in an email to Total price. second-largest deals in advertising Telecom. “Today, for Orange, there and marketing and payments and is no specific target that has been financial technologies, EY states. The identified and no ongoing discussions The Internet Of Things four top non-tech buyers included with Telecom Italia,” the spokesperson Honeywell, Audi/BMW/Daimler, said. Meanwhile, Telecom Italia Dominates Recent Liberty Interactive and McGraw Hill referred Total Telecom to comments Mergers & Acquisitions Financial. During this quarter, non-tech made by the Italian incumbent’s CEO buyer volume increased to 151 deals, The lines between industries as well Marco Patuano, as reported by Reuters or 14% of the total. So far in 2015, as non-tech and tech companies on the sidelines of an event in Rome. non-tech buyers have accumulated continue to get blurrier and blurrier. “I don’t know what Orange is doing $47.1 billion in disclosed-value tech With the ubiquity of cloud and big and I have not had any contacts with deals, nearly double (+97%) their data, with the Internet of Things any telecoms operators that could full-year 2014 total ($23.9 billion). (IoT) becoming a hot commodity be interested in a consolidation at The EY report even suggests there interwoven through it all, M&A European level,” the newswire quoted is competition brewing between activity has been buzzing nonstop. Patuano as saying. Speculation over the IT and automotive industries. Companies with digital disruption this particular pairing has reared its “Among deals already mentioned, stories — particularly IoT, big data head a number of times over the years. the acquisition of Nokia’s mapping analytics and cloud or Software as a Orange CEO Stephane Richard issued business is particularly notable for Service — were the stars of the most his latest denial on the subject at the the intensity of competition already recent quarter. In the process, non- telco’s five-year strategy presentation emerging between the technology and tech companies continued to get in Paris in March. “I confirm the non- automotive industries — companies involved in tech in a deeper way. At existence of any possible discussions... from both reportedly bid for the deal,” the same time, tech providers were with the managers and shareholders the report’s authors state. “High- shifting away from products to end-to- of Telecom Italia,” he said, in response precision maps are considered critical end services. That’s the finding of EY’s to media reports at the time. Despite to the anticipated era of self-driving latest review of global M&A activity. the repeated denials, it is unlikely we cars.” Overall, the consultancy tracked a have heard the last of the Orange/ total of 1,069 deals in the third quarter Telecom Italia marriage reports. And of 2015 (July-September). The amount they will not be the only European of deals set the second-highest all- Telecom operator and telco giants facing similar speculation time record for any quarter since 2000. in the coming years. policy-maker back calls The data is based on EY’s analysis of The 451 Group M&A KnowledgeBase for Big Data privacy data for 2014 and 2015. However, the discussions TRAI seeks responses overall value of the deals was down, Vodafone has backed calls from the the report adds. Aggregate value of to consultation on European Data Protection Supervisor fell 49% the second quarter, totaling (EDPS) for an open discussion on how fixing reserve price for $65.4 billion. But it still ranked as the to harness big data while maintaining ninth-highest quarterly total since spectrum the privacy of citizens. In a public 1996, the earliest year for which The Telecom Regulatory Authority of policy statement this week, the UK- data. is available. The biggest deals India (Trai) initiated the process to fix based telco welcomed calls by the in terms of money exchanged were the reserve price for 2G, 3G, and 4G EDPS’s Giovanni Buttarelli to address driven by the IoT, big data analytics, spectrum on Thursday. The authority how current privacy laws should be and payment and financial services floated a consultation paper seeking applied to big data in order to protect technologies, EY concludes. IoT comments and counter comments “the dignity and the fundamental topped the chart in average value per by December 21 and 28 respectively. rights and freedoms of individuals in a deal in the third quarter, averaging The authority on Thursday said that more effective and innovative way.” In about $1.2 billion. Big data analytics there had been a delay in floating a press release from Brussels, Buttarelli also was behind the most lucrative the consultation process as the pointed out that while tracking user deals, close to $800 million each, on department had failed to furnish behavior was “an essential revenue average. “More tech and non-tech adequate information repeatedly stream” for many of successful companies appear to be pursuing sought by the regulator in the past global companies, a more ethical the technology to help monetize few months. “However, to save time approach was required for handling data assets that have not heretofore the authority has decided to float the data they collected. Specifically, generated revenue,” according to EY. the consultation process based the EDPS said organizations needed In terms of quantity, more than 350 on the available information,” the to be accountable and transparent of the deals tracked related to cloud/ regulator said. The department has regarding the collection of consumer SaaS, while more than 200 were driven sought the pricing of airwaves in the data, as well as providing consumers by smart mobility. Another 100 or 700,800,900,1800,2100,2300 and the with the option to control their own so deals were connected to big data 2500 MHz band through its letter data and opt-in and opt-out of data analytics. There was a continuing dated July 9. The consultation paper gathering in certain circumstances. blurring between tech and “non-tech” raises key issues regarding quantum In Orange’s 2015 Future Digital companies. Non-tech buyers acquired of spectrum to be auctioned, spectrum Trust survey, 78 percent of 2,028 the top-value IoT, mobility and block size, spectrum cap, roll-out smartphone users surveyed said they

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believed service providers held too prove they are unable to cover their Vodafone Mobile division, at the same much of their personal information. costs without charging more for time looking to combine Vodafone In a statement, Vodafone said: “The roaming than domestic services. West and Vodafone Spacetel with collection and analysis of data is National regulators will have the right Vodafone Services. The consolidation fundamentally changing the way in to evaluate whether any surcharges plans were originally drawn up with which people interact, learn, work are justified in such a case. Any extra a view to launching an initial public and do business. Big data presents fees would be limited to the amount offering (IPO), but the plan was economic and societal opportunities needed to cover the operator’s costs. later dropped due to poor market for Europe, but only if consumers The consultation looks at a variety of conditions, and instead the reshuffling and citizens can trust and have ways for determining the operator’s would focus on reducing inefficiencies control over how their data is used costs, revenues and margins. A third in the cellco’s existing structure. The and be confident that their privacy is element of the public consultation regulator had sought INR69.3 billion respected. “We welcome the EDPS’s will look at impact of the roaming from the company for the mergers, call for a new and open dialogue and changes on the functioning of relating mainly to the fees surrounding look forward to contributing to this wholesale roaming markets in the EU the companies’ spectrum holdings, important discussion.” and whether the current price caps on including one-time spectrum fees, wholesale roaming services need to usage charges, and a requirement to be amended. Research by EU telecoms pay the DoT a market-linked price for EC starts consultation on regulator Berec in 2014 found that spectrum under India’s merger and in some countries, the EU’s current acquisition rules. Vodafone contested roaming fair use rules wholesale price caps on data roaming the DoT’s request in the Telecom The European Commission has are higher than actual retail prices, and Disputes Settlement and Appellate launched a public consultation to average wholesale charges remain Tribunal (TDSAT), which ruled in favour finalize the details of the new roaming higher than domestic retail prices in of the cellco. In response, however, the regulation passed by Parliament many markets. The current roaming DoT took the matter to the Supreme in October. The legislation will see regulation requires the European Court, which has arrived at the figure roaming surcharges capped from 30 Commission to review its impact by of INR20 billion. April 2016 and an end to all roaming mid-2016, and Berec said the review charges from 17 June 2015. From will need to consider the impact on that point, all roaming in the EU will national markets of ending roaming Philippines’ SMC likely to cost the same as customers pay for charges and that operators in both domestic services. The European home and visited markets can recover keep 700-MHz spectrum Commission has been charged with their costs. According to the EC, the Philippines conglomerate San setting the details of the fair-use review of the wholesale market could Miguel Corporation (SMC) is likely policy and sustainability mechanism lead to further legislative proposals. In to be allowed to hold on to its 700- of the new roaming regulation. The the consultation, it raises the option of MHz spectrum, after regulator NTC former would allow operators to set ending the wholesale price regulation indicated it is leaning towards siding a fair use amount of roaming in the or setting different wholesale price with the group over a dispute over EU, in order to avoid any abuse of the caps for each country depending on the airwaves. The head of the NTC’s system, such as ‘permanent roaming’, the local market conditions. The latter regulatory division Edgardo Cabarios where customers use in their home could be based on a common cost- told reporters last week that it would country Sims from other countries based methodology, similar to that be difficult to recall and reassign the where national rates are cheaper. already used for termination rates spectrum, as requested by incumbent If a customer exceeds the fair-use across the EU. The consultation is operators PLDT and Globe Telecom, amount, operators would be able to open for comment until 18 February the Inquirer reported. He indicated add extra charges for roaming. The 2016. that there needs to be a good reason regulation employs the term ‘periodic to recall the spectrum, such as if it has travel’ for a reasonable amount of not been used or the holder has not roaming, beyond which roaming could Vodafone to pay been paying the required fees. SMC’s be considered abusive and a fair-use telecom operations are up to date policy could apply. The consultation USD300m for merger with their payments and has acquired proposes a number of options for license permits to purchase mobile network defining periodic travel, based on equipment, the report states. Globe India’s Supreme Court has directed factors such as average paid holidays, and PLDT have been urging the NTC to Vodafone India to deposit INR20 working days and time spent abroad assign a portion of the band to them billion (USD301.27 million) with the by EU residents. The consultation also to allow them to improve the market’s Department of Telecommunications looks at how the fair-use roaming notoriously slow internet speeds. SMC (DoT) in exchange for a merger should apply for customers on different acquired the rights to nearly all of the licence, the Economic Times reports. types of domestic plans, such as fixed 700-MHz band via its Wi Tribe and The decision will clear the way for monthly allowances, unlimited plans High Telecommunication units. The Vodafone to merge six of its Indian and prepaid. No specific caps on the company is in talks with Australia’s units following a protracted legal amount of ‘roam like home’ services Telstra over a joint venture with the battle with the DoT. In 2012, Vodafone were proposed yet in the consultation. potential to shake up the nation’s sought to combine its Vodafone East, The sustainability mechanism gives mobile market, although neither Vodafone South, Vodafone Cellular operators another form of opt-out company has yet confirmed whether and Vodafone Digilink arms with its from the roaming rules, if they can they plan to enter such a deal.

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ITU Global Symposium for Regulators 2015: Mind the digital gap

“Attracting investment in broadband The role of regulators in attracting networks, regulation of OTT players, investment in broadband networks network sharing and taxing digital services and higher-layer services are high on the regulatory agenda” Iqbal presented the findings of a Iqbal Singh Bedi (Principal) delivered a discussion paper to deduce the role of keynote presentation on “Investment regulators and governments in attracting strategies for the deployment of investment in broadband networks broadband and access to the digital and higher-layer services. A number economy” to senior dignitaries, regulators of countries have used public–private and policy makers from around the world partnerships (PPPs) and innovative at the International Telecommunications investment methods to finance the 1 Union (ITU) fifteenth Global Symposium development of broadband networks and for Regulators (GSR15), held in Gabon in higher-layer services. Based on 19 case 2 June 2015. His discussion paper can be studies from developing and developed downloaded here. markets, the paper considered whether PPPs are still a valid form of financing for The theme of this year’s symposium was state-funded broadband initiatives, and “Mind the digital gap”, and it explored highlighted regional differences in how how citizens can benefit from the social PPP projects differ between developed and economic opportunities brought by and developing markets. The paper also the digital economy. In this article (the reviewed the suitability of alternative Iqbal Singh Bedi first in a series) we summarise the main investors (such as Internet companies, Principal topics that were discussed at GSR15 hedge funds, technology innovators Analysys Mason and assess their potential impact on the and community funds) and innovative market. financing approaches (such as bitcoin,

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crowd funding and pensions). Further comment and analysis Regulators could consider making available infrastructure on these aspects will be provided in the next article of this maps that show network coverage, to help operators build series. network infrastructure cost-effectively. This is an aspect that is discussed in Analysys Mason’s Guide to broadband ShouldT OT service providers be regulated? investment.6 An interesting theme that emerged from the panel discussions was that of regulating over-the-top (OTT) Despite the advantages of network sharing, operators may service providers. In contrast to telecoms operators, which still be reluctant to share their network with a competitor. charge customers for their services, OTT providers (such as In these circumstances, operators can consider creating WhatsApp, Skype, Viber, YouTube and NetFlix) offer their a joint-venture vehicle that owns and runs the network services to users either free of charge or at competitive prices. on their behalf. Regulators could also mandate network As a result, operators are facing increased competition from sharing, but this may discourage investment in other areas. these OTT providers as they encroach on their core services. Should finance ministers forego taxation on broadband The threat of OTT players to operators is discussed in more services? detail in a previous article written by Analysys Mason.3 Should finance ministers forego taxation on One operator suggested that “OTT players are eating the broadband services? operators’ lunch” and argued that operators are being Finally, there was some discussion of an ITU study7 that unfairly penalised, and that OTT players should be regulated shows that decreasing the costs of fixed broadband services in the same way as operators. Unlike OTT providers, through reduced taxation can increase end-user adoption operators are subject to regulations which can increase (i.e. these services are highly price-elastic), particularly in their cost base, which the operators argue makes them less economies where there is a greater need for broadband. competitive, and they are therefore seeking a level playing The dilemma for finance ministers is whether to forego field. However, there may still be good policy reasons for this immediate direct taxation income in return for longer-term regulation. OTT services may also be leading to increased growth and greater tax from operator revenues. user subscriptions to data bundles, as well as wider societal benefits. Operators and regulators alike should consider Iqbal regularly briefs government ministers and policy carefully before coming to any conclusions on whether OTT makers on policy-affecting issues in the telecoms and media players should be regulated (as per operators) or whether sector such as digital inclusion, broadband plans, data existing regulation should be withdrawn. centres and broadband investment strategies. If you would like to discuss any of the issues raised in this article you can Network sharing is still high on the regulatory contact him on [email protected] agenda Another aspect discussed in detail was network sharing, which is still high on the regulatory agenda.4 More specifically, the forum addressed the role of network sharing in developing rural broadband infrastructure in markets where it is not commercially feasible to invest in networks. For mobile operators, network sharing can include sharing masts, spectrum and the active radio and backhaul networks. The primary benefit is that mobile operators can reduce their capital and operational costs, as discussed in a recent newsletter article.5 The reduction in costs can improve the commercial feasibility of building mobile networks in rural areas, supporting government policies focused on developing rural connectivity. For fixed operators, network sharing can include sharing ducts or using overhead power networks.

1 The ITU is the United Nation’s leading agency for ICT. 2 Since its inception in 2000, GSR – attended by chief regulatory officers, policy makers and senior industry executives – has met annually to examine key issues affecting the regulation of telecoms and digital services. See also http://www.itu.int/en/ITU-D/Conferences/GSR/Pages/GSR2015/default.aspx 3 See http://www.analysysmason.com/Research/Content/Comments/whatsapp-voice-service-Mar2015-RDMV0/#26%20March%202015 4 See http://www.itu.int/en/ITU-D/Conferences/GSR/Documents/GSR2015/Discussion_papers_and_Presentations/Discussionpaper_networksharing.pdf 5 See http://www.analysysmason.com/About-Us/News/Newsletter/Network-sharing-synergies-Jul2014/#11%20July%202014/ 6 See http://www.analysysmason.com/About-Us/News/Press-releases1/Analysys-Mason-develops-broadband-investment-guide-for-local-goverments/#19%20December%202011 7 See link http://www.itu.int/en/ITU-D/Conferences/GSR/Documents/GSR2015/Discussion_papers_and_Presentations/Discussionpaper_taxation.pdf

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A snapshot of regulatory activities in samena region

ICT equipment and infrastructure. We have Afghanistan conducted a survey and we have learned D r . M o h a m m a d N a j i b A z i z i that almost 70% of the mobile owners [Afghanistan are poor people. So it means that at the Telecommunication moment, the mobile and telecom sector Regulatory Authority (ATRA)] is with the hands of the poor people. So it means that we can play with this data and Abdul Razaq Vahidi Minister of we can have planning for poor people to, Communication and Information for instance for their home economy. We Technology of Afghanistan spoke with Regulatory can make money for them; we can help The Prospect Group about the current them to make money and to give them state of the ICT sector in Afghanistan, the Updates opportunity to create jobs. Right now, government’s top three policy priorities, mobile is only a cost for the people. So and roll out of the open access policy the in the future we’ll have some planning government hopes will attract foreign and some programs for people to be investors.) In Afghanistan, in 2002, there benefit of the mobile, rather than to be was no infrastructure. We almost started only cost for them. We have three main from a zero base, with 20,000 fixed lines policy priorities. One of them is to provide in Kabul city and some major cities. But better services and a decline in the cost now, we have 80% mobile penetration of the Internet. For this we started some and 3 million people out of the 30 million negotiation with neighboring countries population are using the Internet. For sure and regional connectivity will for sure we have many challenges in Afghanistan. be a win-win policy for Afghanistan and As you know, we are suffering by security neighboring countries in the region. issues and the poverty and lack of Afghanistan can be also be part of the economic stability, but we hope that the strategy for the region to be a hub for ICT can play a good role in mitigating transit data. And with this, we can also and causing a decline in corruption have some revenue. The second item is through better management system the eGoverment initiatives. Through using in the government, good governance the existing infrastructure, like almost initiatives, and we hope that in future, in 4,000 Kilometers of fiber optic backbone near future, we can have a good financial and we already have satellite, by using this management system by using mobile and

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SAMENA TRENDS _ DEC 2015 SAMENA TRENDS _ DEC 2015 entire infrastructure, we can have a better capability for consumer customers, causing the value of the mobile running eGovernment initiatives in Afghanistan. In this market to plunge 30%-40%. In that context, “it doesn’t regard, we started some negotiation with stakeholders. make sense to support five-to-six mobile operators in The third one is security. Security also is one of the main a harsh market” like Afghanistan, said Khoja. However, issue. Adapting ICT in the security is one of the major the regulatory environment is under-developed in factors and government is committed to the public to Afghanistan, to put it mildly. Putting it less mildly, “there provide for them the security for sure. Without security is no regulator of any competence,” said Khoja, which we’ll not have an economic stability and social welfare. makes acquiring a rival mobile operator a challenging This is one of the good factors and one of the major items prospect. In the meantime, for its part, Roshan is which we are considering, and we’ll have some progress pursuing opportunities in the enterprise market in a in this regard in future. With the lack of information and bid to fill the void left by foreign soldiers, providing data in Afghanistan, it is hard to give you a clear picture cloud and data centre services to over-the-top (OTT) about this. But we expect, we have some 12% of GDP players like WhatsApp and Viber who, in Khoja’s words, contribution. One of the issues that I mention to you “don’t physically want to be in Afghanistan.” In addition, for good governance is adapting ICT to get better data Roshan has entered into a site-sharing agreement with and proper data and clean data. Fortunately, we had an unnamed competitor in a bid to reduce costs. It also some good achievements in this regard though a big has wholesale access to state-owned incumbent Afghan data management system we already installed. All this Telecom’s fiber backbone network. Over the longer systems are adapted and in near future we’ll have better term though, Khoja believes consolidation is inevitable. planning for the government strategy and government Afghanistan has six mobile operators: Roshan, MTN, programs. There are lot of opportunities for investors in Etisalat, Afghan Wireless, CDMA operator Wasel, and Afghanistan especially in ICT and Internet and telecom. state-owned Salaam, which is the newest entrant, But we can tell you that there are lots of obstacles on the having launched services in April 2014. Khoja predicted road too. We gradually overcame all these challenges that “Salaam will go first”, but remained tight-lipped and obstacles; legal framework is one of them. We about whether Roshan is considering making a move. have prepared and we have right now many laws and However, “Roshan is the biggest and we’re not going to regulations, which we finalized with the government, leave Afghanistan,” he said. “We are probably going to with the parliament and in near future in a couple of be a consolidator in this market.” (December 1, 2015) totaltele.com months we’ll have overcome most of these issues and we’ll have new laws come in place. One of them is open access policy. For this open access policy, we’ll open Algeria the opportunity for all investors to come and work on President: Mr. Toufik Bessai infrastructure like fiber optic, satellite, and other facilities [Regulatory Authority for Post & Telecommunication (ARPT)] in the ICT. There are lot of initiatives on the floor and we would like to have a benefit from telecoms in Afghanistan Over 30 Algerian ICT companies have formed a for social welfare. Also, for instance, we can have in the consortium to build a technology cluster in Sidi- future smart cities to give better services to the people, Abdellah. The consortium signed an agreement with the to mitigate the cost for the people, and also to give national agency for business parks. The businesses said them access to information for better understanding of there is a need to open a cluster to help develop the their situation and better selection of the best way of country’s digital economy, according to the president lifestyle. (December 9, 2015) theprospectgroup.com of the ICT industry association, adding that by joining forces the companies can increase their scope. Around The ICT ministers of Iran and Afghanistan have agreed half of the 32 partners planning to open a presence at to boost cooperation in the ICT space, and are set to the Sidi-Abdellah Cyberpark 30 km southwest of Algiers, sign a memorandum of understanding (MoU) to that are state-owned companies such as Algerie Telecom effect. Under the planned deal, Tehran and Kabul will and Mobilis, as well as private groups and internet start- establish five specialized committees for cooperation in ups, software developers, electronics manufacturing and the areas of e-government, research and development, satellite navigation. The ICT cluster follows on earlier infrastructure and network development, ICT regulation initiatives for drinks, dates, precision mechanics and and post. Iran’s ICT minister, Mahmoud Vaezi told plastics. (December 1, 2015) telecompaper.com members of the press that the two nations agreed to cooperate on the development of Persian-language A Memorandum of Understanding (MoU) has been applications and software. The agreements were reached signed between Algeria and Oman’s regulatory bodies. during a visit to Iran by his Afghan counterpart Abdul The MoU is expected to boost exchange of information Razaq Vahidi this week. During the talks, Mr. Vaezi noted and expertise in the field of telecommunications and that the officials had agreed that cooperation between postal sector in future. It will also strengthen cooperation the two countries was essential, as a large part of Iran’s in research and consultancy studies and exchange international traffic is related to links to Afghan nationals of information in relation to the approved technical living in Iran. (December 8, 2015) IRNA standards. Possibilities of exchanging expertise in frequency spectrum management, allocation of bands, Consolidation will come to Afghanistan’s mobile market mechanisms of network evolution, interconnection and in the next 18-36 months, predicted Karim Khoja, CEO regulatory measures are also addressed by the MoU. of the country’s biggest operator Roshan. Speaking to Total Telecom on the sidelines of the Total Telecom (November 26, 2015) muscatdaily.com Festival in London, he explained that the withdrawal of foreign troops has resulted in a dearth of big-spending

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for the latest ban was not clarified. Bahrain (December 14, 2015) cellular-news.com C h a i r m a n : D r . M o h a m m e d A l a m e r [Telecommunication Regulatory Authority (TRA)] The government lifted its ban on Facebook but has not moved to unblock Viber, WhatsApp, Line and other Bahrain’s Batelco says that it has signed an agreement messaging services. At a press briefing, Minister for Posts, with India based Bharti Airtel, which appears to cover Telecommunications and Information Technology asked network sharing deals. In a detail-light statement from the Chairman of the Bangladesh Telecommunications the Bahrain based company, Batelco said that the new Regulatory Commission (BTRC) to open access to partnership between Batelco and Airtel will allow the Facebook, The Independent reported. “We were told two organizations to access each other’s networks by the authorities to remove access-restrictions on thereby enabling them to extend their reach into newer Facebook, as the terror threat has declined. We are markets. The company cited the Pan-Asian region as of yet to get instructions to unblock sites like Viber and particular interest. Similarly, Airtel will be able to utilize WhatsApp,” Minister said. The BTRC blocked access Batelco’s presence across the Middle East and other to a number of social media apps on November 18. regions. Beyond that, little was clear about what the deal Prime Minister told Parliament in early November that means in practice. (December 15, 2015) cellular-news.com internet-based messaging and voice-call services such as WhatsApp and Viber would be blocked when needed to The Telecommunications Regulatory Authority (TRA) catch militants and prevent terrorist activities. Therefore, has started an awareness campaign on its support I will suspend operation of these apps for some days, services to consumers. The awareness campaign aims when needed,” she said. Robi Axiata, the country’s third to educate consumers on when and how to approach largest operator, said at the end of November that the TRA to resolve their telecommunications issues. TRA’s ban reduced data consumption almost 30 per cent and Director of Consumer Affairs Sh. Abdulla bin Humood would cut its revenue by around 3%. AlKhalifa said on the launch of this awareness campaign: (December 11, 2015) mobileworldlive.com “The TRA is required under the telecommunications law to handle consumer disputes as an escalation process The Bangladesh Telecommunication Regulatory if a consumer and a service provider failed to solve the Commission (BTRC) has requested a third-party impact complaint between them. This campaign shall educate study on the proposed merger of local cellcos Robi consumers on the process of raising complaints to Axiata and Airtel Bangladesh, and has approached the telecom service providers and to TRA.” Sh. Abdulla also Department of International Business under the Faculty said “TRA has just launched its fully automated Customer of Business Studies at Dhaka University and the Faculty Relationship Management System which is accessible on of Engineering at American International University TRA’s website. Consumers can submit their complaints to submit their estimated costs for the study. BTRC enquires, and suggestions in a fast and user friendly Secretary told that the study was imperative as it was manner. The system will also allow consumers to obtain the first time that two Bangladeshi mobile operators updates on the status of their cases and will improve had decided to consolidate. The report will focus on our efficiency in solving consumer complaints and areas including: the impact of the merger on mobile responding to their enquiries.” Consumers facing issues market competition; the general socio-economic impact with their telecommunications services, are first required of the merger; strategies to deal with any envisaged to contact their service provider and try to resolve the negative effects; employment issues and the companies’ issue directly. If the service provider resolution is not proposed provisions for employees not willing to join satisfactory, or 60 days have passed since the submission the merged entity; potential impact on users’ services of the complaint, the consumer should contact the TRA and rights; share capital issues; and an examination of and we will be working closely with the service provider whether the consolidation will affect spectrum auctions to resolve the issue. (December 12, 2015) tra.org.bh and the government’s revenue earnings. The study should be completed within eight weeks. Robi and Airtel Bangladesh’s third and fourth largest cellcos by users, Bangladesh respectively – sought permission for the merger from the BTRC in September. (November 25, 2015) BDNews24 C h airman: Sahjahan Mahmud [Bangladesh Telecommunication Regulatory Commission (BTRC)] Iran The Government has ordered the country’s local mobile Chairman: Dr. Ali Asghar Amidian network operators to block the use of messaging and [Communication Regulatory Authority (CRA)] social media services Skype, Imo, Twitter alongside Viber, WhatsApp, Line, Tango, Hangout, Comoyo and ustream.tv. A note from the telecoms regulator, the BTRC The ICT ministers of Iran and Afghanistan have agreed sent to the mobile networks ordered that the restrictions to boost cooperation in the ICT space, and are set to come into effect immediately. Grameenphone said that sign a memorandum of understanding (MoU) to that the restrictions would be temporary, but was unable effect, IRNA reports. Under the planned deal, Tehran to say how long the ban would last. The government and Kabul will establish five specialized committees for routinely orders the mobile networks to bar the services, cooperation in the areas of e-government, research and although the block is often removed a few days later. development, infrastructure and network development, It only recently unblocked access to Facebook, having ICT regulation and post. Iran’s ICT minister, Mahmoud barred access to the website for three weeks. The reason Vaezi told members of the press that the two nations

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SAMENA TRENDS _ DEC 2015 SAMENA TRENDS _ DEC 2015 agreed to cooperate on the development of Persian- language applications and software. The agreements Kuwait were reached during a visit to Iran by his Afghan C h airman and C E O : S a l i m A l o z a i n a h counterpart Abdul Razaq Vahidi this week. During the [Communication and Information Technology Regulatory Authority (CITRA)] talks, Mr Vaezi noted that the officials had agreed that cooperation between the two countries was essential, as Saudi Telecom Company (STC) picked up clearance from a large part of Iran’s international traffic is related to links the Kuwait Capital Markets Authority to make a bid for to Afghan nationals living in Iran. the shares it does not own in affiliate Viva, although (December 8, 2015) telegeography.com its offer price did raise some eyebrows. The company is offering KWD1 ($3.30) per share, which is below the price the stock was trading in the run-up to the latest Iraq announcement. However, it does represent a premium CEO: Dr. Burhan Shawi [Communication & Media Commission (CMC)] on the price in the period to mid-November, which was the point at which STC revealed its intention. STC already owns 26 per cent of Viva, and is making a bid for the An Iraqi court has rejected a request from Zain Iraq to lift remaining 74 per cent (499.4 million shares). This gives a a freeze on US$187 million that the telco holds in cash maximum cost of around KWD500 million ($1.65 billion). in local bank accounts, media reports, citing a statement Other major shareholders are Public Institute for Social from parent company Zain Group to the Kuwaiti bourse. Security (9.73 per cent) and Kuwait Investment Authority The bank balances were frozen as part of attempts by (6 per cent). The operator is profitable, with its 9 month the Iraqi authorities to levy capital gains tax on Zain’s profit (to 30 September) of KWD33 million up 12per US$1.2 billion acquisition of Iraqna in 2007. Zain has cent year-on-year, on revenue up 17 per cent to KWD204 confirmed that it will appeal the decision. The telco has million. Viva and Ooredoo are roughly level pegging in also brought a separate case relating to the acquisition, the Kuwait mobile market, behind market leader Zain. claiming that capital gains tax should only apply to the The offer period starts on 27 December and runs until seller, in this case Egypt’s Orascom Telecom. The case 31 January 2016, at which point STC can announce the was due to be heard earlier this week, but a decision number of shareholders accepting. is not expected immediately. An Iraqi court dismissed a (December 14, 2015) mobileworldlive.com USD4.5 billion claim against Zain Iraq – also relating to the Iraqna acquisition – in January 2015. An unnamed claimant had argued that Zain’s takeover of the operator Lebanon had prevented them from purchasing the company, Secretary of the Board: Mr. Amine Moukheiber causing them to suffer a US$4.5 billion loss. [Agence Nationale de Reglementation des (December 18, 2015) reuters.com Telecommunications (ANRT)] The Lebanese government has cancelled the tender Iraq’s telecoms industry regulator the Communication process for the management of the country’s two mobile and Media Commission (CMC) has decided to extend networks after the process generated insufficient interest, the deadline for companies to register their interest in it emerged this week. The Ministry of Telecommunications bidding for the country’s fourth mobile license, without had set a deadline of midday on Tuesday to announce giving a reason for the decision. In a website update, the results of the tender, but the deadline passed with CMC confirmed that the new deadline for bidders no resolution. On Wednesday, Lebanon’s Business News interested in the 15-year concession has been pushed reported that the fair competition prerequisite of the back from November 20 to December 10. Earlier this process was not met after only two companies – Zain month CMC issued a request for Expressions of Interest and Orange – submitted bids to manage the operators. (EoI) in a fourth license, calling for service providers to It cited an unnamed source. Lebanon is served by two register their interest in the technology neutral permit. government-owned mobile operators, Touch and Alfa, Under the terms of the award, existing licensees will be which are currently being run by Zain and Orascom obliged to enter into infrastructure and facilities sharing Telecom Media and Technology (OTMT) respectively. agreements with the newcomer, ‘in order to achieve Their management contracts expired two years ago, but rapid and cost-efficient network deployment’. A range have been extended a number of times. The failure of the of frequencies are available to prospective bidders, tender means that those contracts will likely be extended including 2×7.5MHz in the 900MHz band, 2×22.5MHz in once again, Business News’ source predicted. In addition the 1800MHz range, 2×10MHz at 1900MHz/2100MHz to Zain and eventually OTMT – the latter missed the and 20MHz in the 2600MHz band. Iraq is home to three original applications deadline earlier this year, but was national mobile operators – Kuwaiti-backed Zain Iraq, later admitted to the tender process, according to local Ooredoo-owned Asiacell and Korek Telecom, an affiliate press reports – Orange, Maxis, Turkcell, Vodafone and of Orange Group – which between them counted more a unit of Deutsche Telekom all submitted applications, than 33.1 million subscribers at end-June 2015, down Lebanon’s Daily Star claimed. However, all but Zain and from 34.9 million at the start of the year and a high of 36.1 Orange fell by the wayside over the past few months. million in June 2014. The sector has, however, experienced The Ministry of Telecommunications and the Council of serious upheaval over the course of the last decade, with Ministers will now rule on the next steps, Business News’ an over-complicated regulatory regime contributing to source said. Zain and OTMT’s concessions will likely be the market’s evolution, while the incumbents have also extended for at least three months, he said. seen their margins and profitability squeezed through (December 10, 2015) totaltele.com competition, rising costs and service outages caused by the so-called Islamic State’s incursions in Iraq. This has led to some speculation that the fourth license is likely to be a hard sell. (November 25, 2015) telegeography.com

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does not include the ‘www’ prefix for websites. Abu Morocco Ghazaleh joins OmanTel, Ooredoo, Gulf CyberTech and Director General: M. Azdine El MountassirBillah Oman Data Park as licensed registrars who can register [Agence Nationale de Reglementation des website names on behalf of TRA. “This is another step for Te l e c o m m u n i c a t i o n s ( A N R T ) ] dot Oman and nuqta Oman,” said Suleiman al Rawahi, Moroccan telecom regulator ANRT has designated manager of TRA’s domain name department. “We hope operators with significant market power in the consumer people will know about .om, enhance it and use it as telecom market. Maroc Telecom was designated as such something Omani.” There are 91 sites which use the for fixed call termination, voice mobile termination, leased Arabic version of .om and 3,273 sites that use the English lines, wholesale access to physical infrastructure for the version. All government entities use the Omani domain fixed local loop and sub-loop, and the wholesale market name. Officials said the Arabic domain name helps for access to conduits. Maroc Telecom, Medi Telecom organizations promote themselves as Omani brands. and Wana were designated as having significant market Abu Ghazaleh has similar arrangements as a licensed power for the SMS termination market. The regulator’s registrar in UAE and Qatar and is also planning on analysis is based on customer base, traffic, revenue, open up in Morocco and Tunisia, according to executive and indices related to market experience, investment director Mahmoud A Lattouf. (December 1, 2015) muscatdaily.com capacity and control over access to end-users and the absence of potential competition. The regulator has set A Memorandum of Understanding (MoU) has been out the operators’ obligations, including a requirement signed between Algeria and Oman’s regulatory bodies. to publish technical and pricing reference offers. The MoU is expected to boost exchange of information (December 14, 2015) telecompaper.com and expertise in the field of telecommunications and postal sector in future. It will also strengthen cooperation in research and consultancy studies and exchange Nepal of information in relation to the approved technical Chairman: Mr. Digambar Jha standards. Possibilities of exchanging expertise in [Nepal Telecommunication Authority (NTR)] frequency spectrum management, allocation of bands, mechanisms of network evolution, interconnection and regulatory measures are also addressed by the MoU. Malaysia’s Axiata Group has signed a conditional sale (November 26, 2015) muscatdaily.com and purchase agreement with TeliaSonera to acquire the Swedish firm’s 80% interest in Nepal’s largest mobile operator by subscribers, Ncell. Axiata is to pay USD1.365 Pakistan billion for the interest via its wholly owned subsidiary Chairman: Dr. Syed Ismail Shah Axiata Investments (UK) Ltd. TeliaSonera announced in [Pakistan Telecommunication Authority (PTA)] September this year that it was looking to exit all seven countries in its ‘Eurasia’ mobile network operating division – Kazakhstan, Uzbekistan, Azerbaijan, Tajikistan, Pakistan’s push to hold a 3G/4G spectrum auction Nepal, Georgia and Moldova – to sharpen its focus on will likely be delayed by at least 12 months after the its operations in Sweden and Europe. Axiata Group’s consultant hired by the telecoms regulator reportedly chairman, Tan Sri Azman Hj. Mokhtar, commented: determined the market is not ready for another auction. ‘Axiata has over the years established a good track The consultant, InterConnect Communications, met record in its M&As, delivering and implementing with the country’s five mobile operators and other value-enhancing deals. The board has reviewed this stakeholders and submitted its report to the Pakistan transaction in some detail and believes it to be a rare Telecommunication Authority’s (PTA) evaluation opportunity to own and control a sizeable enough committee for review. PTA sources told that the asset that is a value-accretive transaction with attractive consultant found mobile operators are struggling with cash yields. The board is confident that Ncell will bring low margins and aren’t interested in investing in the significant positive financial impact to the Group.’ The spectrum within the next 12 months. The operators also deal is subject to Axiata shareholder approval. According complained about high taxes, low return on investments to TeleGeography’s GlobalComms Database, Ncell is and weak economic growth. The finance ministry has Nepal’s largest mobile operator, with 13.01 million pushed PTA to hold the auctions twice this year, but customers as of mid-September, ahead of government- both times the sale has been pushed back after all five backed Nepal Telecom with 12.45 million and limited operators said they would not participate. The reason mobility operator Smart Telecom with 1.34 million. behind the push is the government budgeted the (December 21, 2015) telegeography.com auctions to generate PKR56 billion ($539 million) in fiscal 2014-15 and then raised its target for this fiscal year to PKR65 billion. Minister of State for Telecom and IT, Anusha Rehman, told it aims to hold the 3G/4G spectrum Oman auction by 30 June. After the last auction in April 2014, in Executive President: Dr. Hamed Al-Rawahi which blocks of 4G and 850MHz spectrum where unsold, [Telecommunication Regulatory Authority the government assured operators it would address the (TRA)] industry’s challenges. The investment climate, however, The Telecommunications Regulatory has deteriorated this year. The federal government Authority (TRA) has approved Abu Ghazaleh Intellectual doubled the sales tax on various categories of imported Property as its fifth registrar licensed to issue domain mobile handsets in June to PKR300-1,000 ($3-$10), and names for .om (in both English and Arabic). Dot Oman is the government in Punjab introduced a 19.5 per cent pronounced ‘nuqta Oman’ in Arabic. The Arabic version

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SAMENA TRENDS _ DEC 2015 SAMENA TRENDS _ DEC 2015 sales tax on internet usage in early June. In addition, operators to deploy BVS at their CSCs by 30 November not only did mobile revenue drop 1.8 per cent in the 2015. The set deadline has been successfully met by fiscal year ending 30 June, but direct foreign investment WLL operators after which WLL connections like Vfone, plunged 72 per cent and the sector’s tax contributions EVO, Wingle, wireless dongles, etc., used for providing fell almost 50 per cent from last year. Only China Mobile- broadband service, are being issued after biometric backed Zong has a 4G license. But the attraction of a 4G verification of the subscriber. Four WLL operators, auction is low, particularly after VimpelCom’s Mobilink dealing in individual WLL connections, namely PTCL, merger with Warid Telecom was announced last month. Wi-tribe, Qubee and Wateen, have deployed the new Mobilink, the country’s largest operator with a 28 market system at their CSCs. In order to check the compliance share, has said it won’t participate in the auction. level of WLL operators, PTA teams are strictly monitoring (December 15, 2015) propakistani.pk the sale channels across the country and deviations are being continuously shared with WLL operators for According to revised Telecom Policy 2015 that has been rectification of the same. It is pertinent to mention here approved by ECC Pakistan Telecommunication Authority that during second phase of the project, deployment has been mandated to revise licensing framework for of BVS shall be completed at Franchisees and Retailers telecommunication services in the country to particularly of WLL operators by 31st December 2015 whereas re- include selected OTT services into the telecom licensing verification of existing WLL connections, issued prior to regime. Once new licensing framework is finalized by launch of BVS, shall be completed by 29 February 2016 PTA, certain OTT services (WhatsApp, Skype, Facebook during third and the final phase. It may be mentioned etc.) are likely to be asked to obtain license from here that, after launch of BVS for issuance of mobile regulator in order to operate in Pakistan. In developing phone SIMs in 2014 and subsequent re-verification of the new licensing regime interalia the following should SIMs in 2015, deployment of BVS for WLL connections is be taken into account: Section 20 of the Telecom Act, another step of PTA for ensuring authentic subscribers’ and in particular, which over-the-top services should credentials for a safer Pakistan. (December 9, 2015) propakistani.pk be licensed under a “general authorization” in which a service provider is deemed to hold a license by virtue of The Ministry of Information Technology has formally the services that it provides and is then subject to the started consultative process on IT Policy frame- terms of that general authorization, which may include work in order to get inputs from all stakeholders. In national security requirements; The regulator, PTA, will this regard consultative meeting was held between determine licensing terms for certain OTT services — Ministry and Academia herein Islamabad in the chair based on criteria that is yet unknown — and will make with State Minister for Information Technology and it mandatory for such selected OTT services to get a Telecommunication Anusha Rahman. Speaking this license before operating in Pakistan. Moreover, some correspondent, Tahir Mushtaq, Spokesperson of the IT OTT services will be licensed only after they agree to Ministry, said that consultative process has been started terms (outlined by PTA), which may include national with all stakeholders for giving final touches to the IT security requirements or lawful interception. It is still Policy Frame-work. He said consultations with industry unclear that which OTT services would be asked to get have already been concluded in this regard and in the the license. (December 14, 2015) propakistani.pk second phase, the ministry wants to take input from academia. Mushtaq said that contrary to the Telecom The Pakistan Telecommunication Authority (PTA) and policy, the ministry would not hire international services China Mobile Pakistan (CMPak) – which operates under of consultation as it has all the resources required to the Zong brand name – have reached an agreement finalize IT Policy. He further said with the passage of regarding the cellco’s 3G spectrum allocation; time, the technological requirements are increasing and ProPakistani cites unnamed sources as saying. Zong the ministry wants to meet all those challenges. Mushtaq sent a legal notice to the regulator in October this did not give any final deadline for the finalization of the year complaining that it had been allotted ‘corrupted’ IT policy framework, however resolved that it would be spectrum, known to be affected by interference from finalized at the earliest. Earlier Minister Anusha Rehman illegal DECT 6.0 cordless phones, and demanding that informed the committee that a comprehensive telecom the PTA issue it with different spectrum, along with policy has already been finalized with consultation US$40 million compensation for the lost revenue, market of all stakeholders and is with ECC for approval. IT share and optimization costs. According to the unnamed Policy Frame-work has been floated for stakeholder sources, the PTA has agreed to change Zong’s spectrum consultations, she added. She said that Academicians allocation, and expects to complete the change by the are repositories of knowledge and their input will not end of December 2015. As a result of the deal, the cellco only help us in preparation of a comprehensive policy is expected to withdraw its compensation claims; a frame-work but also help in improving linkages between PTA official was quoted as saying, adding that: ‘There Academia and Industry. While discussing salient features wouldn’t be any cost involved in changing spectrum.’ of the IT Policy Frame-work, she said that our IT Policy (December 10, 2015) propakistani.pk draft includes human resource development, promotion of young entrepreneurs, infrastructure development, As per the directions of Pakistan Telecommunication measures to enhance the volume of software export and Authority (PTA), Wireless Local Loop (WLL) operators a legal & regulatory frame-work to achieve that. Anusha have launched Biometric Verification System (BVS) for Rahman said that it is the dire need of the time to issuance of WLL connections at their Customer Service revisit our IT Curriculum being taught in our Academic Centers (CSC) with effect from 1st December 2015. institutions currently and should redesign it by keeping During the first phase of the project required WLL in view the current market demands to enhance the volume of employability of young graduates. She said that for practical training of the young entrepreneurs,

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we have already announced “Tech-City Project” and telecommunication infrastructures as well as new potential venture capitalist would be partnering in this technologies and services and to provide specialized flag-ship program. The Minister further stated that our assistance and support, particularly in the field of new IT Policy draft will have a special focus on provision spectrum management and frequency assignment. of basic e-services i.e. e-health, e-education, and “I give my assurance that ITU will continue to work e-agriculture viz-a-viz women empowerment through with the Palestinian and Israeli authorities to ensure ICT by teaching young girls, coding, cloud computing better communications for ordinary citizens,” said ITU and other technological skills. She said that it’s a just a Secretary-General Houlin Zhao. beginning of the discussion, we will surely have a series (November 25, 2015) cellular-news.com of consultations with all stakeholders and their valuable inputs will be embedded in final policy draft. The meeting was attended by Federal Secretary IT, Azmat Ali Qatar Ranjha, Member (Telecom) Mudassar Hussain, Member President: Mr. Mohammed bin Ali Al Mannai (IT/HR) Tahir Mushtaq and Member (Legal) Ameena [Communications Regulatory Authority (CRA)] Sohail. The Academia side was represented by the senior faculty of NUST, COMSATS, Air University, IIU, HEC, QAU, Agriculture University, FAST, ZABIST and other IT Heads The Communications Regulatory Authority (CRA) of of renowned Educational Institutions from public and Qatar yesterday announced it had issued an order approving the Reference Infrastructure Access Offer private sector. (December 9, 2015) propakistani.pk (RIAO) of incumbent PTO Ooredoo, which will enable all existing and future licensed service providers to gain fair and non-discriminatory access to Ooredoo’s Palestine telecommunication ducts, with the objectives of Minister of Communications & Information enhancing availability of additional networks for users Technology: Dr. Allam Moussa while aligning Qatar with international best practices. [Ministry of Communications and Information The order requires Ooredoo to publish the approved Technology (MCIT)] RIAO on its official website within 14 days. Qualified An Israeli Palestinian agreement has been reached on service providers may then initiate access requests with the assignment of radio frequencies for the exclusive Ooredoo and negotiate agreements based on conditions use by Palestinian cellular operators as well as on a stated in the RIAO. (December 3, 2015) telegeography.com shared basis by Palestinian and Israeli operators. “The Israeli-Palestinian Agreement to facilitate cellular phone operations is a major landmark in improving Saudi Arabia relations between the parties and will no doubt Acting Governor: Eng. Habeeb K. Alshankiti lead to the establishment of a modern and reliable [Communication & Information Technology telecommunication network for the Palestinian people,” Commission (CITC)] said ITU Secretary-General Houlin Zhao. “The spirit of cooperation and compromise demonstrated by those On receipt of requests received from number involved in reaching this agreement is highly appreciated stakeholders to extend the deadline for the submission by ITU. We commend their efforts in achieving this of applications for an MVNO license in the Kingdom significant outcome. This signature will certainly Hosted with MTC “Zain”, the CITC announces that facilitate the work of the World Radiocommunication the deadline will be extended to January 11, 2016. Conference, currently in session in Geneva, to enhance The Commission invites all interested parties to visit global communications.” “ITU will continue to develop CITC website (www.citc.gov.sa) for news, updates, and telecommunications networks and cellular services in to submit their applications for MVNO licenses in Palestine and elsewhere in the region,” said François accordance with the specified requirements set by CITC. Rancy, Director of the ITU Radiocommunication Bureau. (December 9, 2015) citc.gov.sa Palestinian operators will be able to construct broadband cellular networks completely independent and separate from Israeli networks. Moreover, the operations of the Sri Lanka D i r e c t o r G e n e r a l : M r . P. B . A b e y k o o n Palestinian and Israeli broadband cellular networks will [Telecommunication Regulatory Commission be regulated respectively by the Palestinian and Israeli ( T RC ) ] authorities. Following the Israeli-Palestinian agreement, the ITU World Radiocommunication Conference (WRC- Dialog Axiata, Sri Lanka’s largest mobile operator 15), currently in session in Geneva from November 2 to by subscribers, is in negotiations to buy fifth-placed 27, welcomed the bilateral Israeli-Palestinian agreement player Bharti Airtel Lanka for US$100 million. A source on the assignment of frequencies in the 2100 MHz band with knowledge of the talks told the newspaper: ‘The for Palestinian cellular operators signed November transaction will be a mix of cash and an equity stake in 19. Furthermore, WRC-15 adopted a revised version Dialog at current market prices, where the total value of Resolution 12 of the Conference on Assistance would be US$100 million’. In addition, the sources have and Support to Palestine, which resolves to continue revealed that Dialog Axiata is planning to transfer its cell assistance to Palestine in order to enable Palestine to tower operations to a separate company. Acquisition obtain and manage the required spectrum in order to target Airtel is believed to preside over a 2,500-strong operate telecommunications networks and wireless tower network in Sri Lanka, placing it on a par with Dialog. services. The Resolution calls for ITU to take additional The Sri Lankan mobile sector is ripe for consolidation. measures for enhancing and developing wireless

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In February 2014 Sri Lanka Telecom – owner of second Director General, ADSIC. Osman Sultan, Chief Executive largest cellco Mobitel – reportedly finalized an agreement Officer, du, said: We are committed to continuously to acquire fourth-placed Hutchison Telecommunications innovating and pioneering the best in breed products Lanka, although the US$130 million deal has yet to be and services that are aligned with the proliferation of completed. Elsewhere, Etisalat of the UAE was said to information and communication technologies. Ensuring be considering offloading its Sri Lankan unit in October that we remain abreast of technologies and at the 2014, with a number of international telecoms operators forefront of innovation is a key driver for our vision to be said to be interested in the asset. (December 2, 2015) Ceylon Today a partner of choice. We are thrilled to be working with ADSIC on a number of exciting projects. (December 10, 2015) ameinfo.com T urkey Acting Chairman: Dr. Omer Fatih Sayan [Information & Communication Technologies Authority (BTK)]

Turkey’s largest mobile service provider by subscribers, Turkcell, is looking to make a non-binding offer to acquire TeliaSonera’s 58.55% stake in Fintur, in a move which will give the Turkish operator full control of the subsidiary. According to Bloomberg citing people with knowledge on the matter, Turkcell has signed agreements to hire Citigroup and HSBC Holdings to advise on the acquisition, while earlier this month the company’s CEO Kaan Terzioglu said Turkcell intends to fully acquire Fintur in 2016 ‘if all negotiations go well’. The operator has not provided financial details regarding the value of TeliaSonera’s stake. In September this year Turkcell declared that it was looking to appoint a strategic and financial advisor to explore the possibility of full acquisition of Fintur (inclusive of mobile operations in Kazakhstan, Azerbaijan, Georgia and Moldova). The news was pursuant to TeliaSonera’s announcement that it had initiated a process to reduce, and over time fully exit, its presence in CIS and Asian markets. TeliaSonera is one of Turkcell’s major shareholders as well as its partner in Fintur. The jointly-owned cellular operators under consideration are K’cell (Kazakhstan), Azercell (Azerbaijan), Geocell (Georgia) and Moldcell (Moldova). (November 26, 2015) telegeography.com

United Arab Emirates Director General: Hamad Obaid Al Mansoori [Telecommunication Regulatory Authority (TRA)] Du has signed a cooperation agreement with the Abu Dhabi Systems and Information Centre (ADSIC) on smart city and smart apps. The announcement comes in line with both parties continued efforts and enthusiasm to contribute in providing best services and solutions in each of these fields. In the field of smart city and smart services, du and ADSIC are currently in discussions regarding the various areas they will cooperate in. Additionally, ADSIC and du will align on the roll out of the WiFi UAE network, which give users two options to choose from, WiFi and Premium WiFi, and can be accessed from any WiFi-enabled device and a UAE mobile number. This includes smartphones, laptops, tablets, gaming devices and more. Furthermore, the two companies will join hands on strengthening the infrastructure for government and public sectors in Abu Dhabi. We have selected du based on the company regional leadership in smart city technologies with a sound infrastructure capable of handling the traffic that nascent technologies will bring about. We look forward to a long and secure partnership with du, said Rashed Lahej Al Mansoori,

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REGULATORY ACTIVITIES BEYOND THE SAMENA REGION

Australia Data downloads on mobile phones in Proposals put forward Australia jumped 85 per cent to 71.6 by the Australian pedabytes in Q2 from a year ago, while Communications and the average download per user rose 79 per Media Authority (ACMA) cent to 3.4GB. According to a new report is expected to make access to spectrum from the Australian Communications and easier for the companies operating Media Authority (ACMA), the total volume machine-to-machine (M2M) wireless of downloads (mobile and fixed-line) in communications links. In a press release Q2 increased 41 per cent to 1.46 exabytes. the regulator revealed that planned Smartphone adoption in the country Regulatory changes to existing regulations will expanded 11 per cent to 13.4 million remove a technical barrier to the operation in June from the previous year, lifting Updates of narrowband low powered wireless penetration to 74 per cent. The number networks in the Radiocommunications of mobile connections increased 2.5 per (Low Interference Potential Devices) Class cent to 31.77 million. The percentage of Licence 2015 in the 900MHz, 2.4GHz band adults using mobile phones remained at and 5.8GHz bands. Such frequencies, 94 per cent for the past three years, the the ACMA noted, support a variety ACMA said. But mobile internet users applications across a number of industries, edged up 2 per cent to 21 million. The including data telemetry, machine data country’s three major mobile players and monitoring, sensor networks, smart expanded their 4G coverage, with Telstra metering, security systems and industrial reaching 94 per cent of the population, control. Submissions on the proposed Optus covering almost 90 per cent and changes are being accepted until February Vodafone Hutchison Australia (VHA) 26, 2016. ‘The changes should encourage reaching 95 per cent of the metropolitan innovations in the M2M and [Internet population. Telsta’s 4G user base increased of Things] IoT spaces,’ ACMA chairman 48 per cent to 7.7 million over the past Chris Chapman said of the plans, adding: year to 30 June, while Optus’ surged 58 ‘The proposals are a part of our work in per cent to 3.8 million. ACMA didn’t looking at Australia’s state of readiness for release figures for VHA. The competitive IoT and identifying areas where the ACMA landscape remained fairly stable over the can further assist IoT developments.’ past year, with Telstra taking a 54 per cent share of mobile connections (up 1 point (December 22, 2015) telegeography.com from the previous year), and Optus and VHA steady at 29.5 per cent and 16.5 per cent respectively. The number of mobile

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phone users without a fixed-line telephone increased ANATEL revealed that it has received applications 9.5 per cent to 5.37 million year-on-year. The number of from nine companies to take part in the multi-band complaints filed with the Telecommunications Industry spectrum auction due to get underway later this month. Ombudsman during 2014-15 fell 10.4 per cent from The Brazilian regulator shared the list of applicants, 2013-14, with complaints about mobile services down which includes three of the big four operators in the 29 per cent from the previous year and less than half the country; locally-owned Oi is missing. America Movil’s level recorded in 2011–12. Complaints about billing and Claro, Vivo parent Telefonica, and TIM Brasil will take payment issues fell 14 per cent, while those concerning part in the contest for 1800-MHz, 1900-MHz, and 2.5- customer service dropped 22 per cent. GHz frequencies that is scheduled to start on Thursday.

(December 4, 2015) mobileworldlive.com Nextel, Brazils’ fifth largest mobile operator, albeit with a market share of just 0.86% as of September, is also on the list. The remaining five are Clivo An applicant information paper (AIP) has been published Participações, Lig Telecomunicações, Sercomtel, Sky, by the Australian Communication and Media Authority and TPA Telecomunicações. The regulator has divided (ACMA) related to release of 1800MHz spectrum up the available frequencies into three batches. The in remote areas of the country. This paper outlines aforementioned companies have effectively registered the application documents that must be completed to compete for A and B lot spectrum. The third, lot and forwarded to the ACMA, as well as details of the C, does not require registration; it has been split into regulatory and legislative process the ACMA will municipal-level blocks with the hope of attracting small employ to issue licenses. In announcing the AIP’s and medium companies. Reserve prices are mostly release, the ACMA noted that it has revised existing below 10,000 reais (€2,372). The regulator is also offering regulatory measures for the band and developed flexible payment terms, allowing winning companies to access arrangements for remote regions utilizing public pay in installments with low interest rates and grace telecommunications service (PTS) licenses. It claims such periods of up to 36 months. (December 14, 2015) totaltele.com revisions will support the deployment of mobile services in remote areas, while to assist with an orderly release of licenses in the band, the ACMA has defined a list of Cameroon ‘priority assignments’ for access to the band. Under this Cameroon’s Telecommunications approach, applicants will only be permitted to apply for Regulatory Board (ART) is set to launch licenses in the specific channels assigned to them. With a new national drive to register the the release of the AIP marking the commencement of nation’s mobile telephony subscribers, the notification period, Australia’s three mobile network reports Business in Cameroon. The campaign, which will operators – Telstra, Optus and Vodafone Australia – are begin on 21 December, is aimed at preventing criminal now able to make applications for those frequencies in and terrorist activities. The regulator has called on the the defined priority assignment relevant for each carrier. country’s operators – MTN, Orange, Viettel (Nexttel) and Meanwhile, potential licensees in the ‘Other’ segment of CamTel – to update their subscriber databases, following the band must wait until the application window opens which any unidentified or incompletely registered on January 12, 2016; this window will subsequently close subscriber lines will be deactivated. TeleGeography’s on January 19, 2016. (December 2, 2015) telegeography.com GlobalComms Database notes that a new decree was introduced in September 2015 to reinforce and clarify the procedures related to the identification of mobile Brazil subscribers in the country. The new rules prohibit the A decision paper detailing the Australian sale of SIM cards by street dealers, meaning that mobile Communications Telecoms regulator operators must set up authorized retail outlets or sign ANATEL raised BRL762.7 million ($192 official partnership deals with retailers to sell SIMs. In million) in the bidding for lots A and B in addition, the decree limits subscriber SIM ownership to the auction of leftover frequencies in the 1.8 GHz, 1.9 three cards per operator. (December 15, 2015) telegeography.com GHz and 2.5 GHz bands. “In one of the lots, the premium over the minimum price set by the regulator reached 1,272.53 percent,” it said in a statement. Telefonia Brasil Costa Rica announced it was the winner of seven lots in the 2.5GHz Deputy Minister of Telecommunications frequency including the Sao Paulo and Rio de Janeiro Emilio Arias has set the ball rolling for the regions for BRL185 million. “The company will increase auction of 70MHz of mobile spectrum its service delivery capacity with 4G in key regions of the that went unsold back in January 2011, country, with extra band of 10 + 10 MHz in addition to El Financiero reports. The minister has signed an order the band of 20 + 20 MHz acquired in 2012’s bid,” the instructing the Superintendency of Telecommunications operator said. “With today’s acquisition, the company (Superintendencia de Telecomunicaciones, Sutel) achieves its goal of ensuring the necessary spectrum for to commence the auction process, which will see the expansion of 4G service, thus meeting the growing 40MHz of 1800MHz spectrum and 30MHz in the demand for high-speed internet,” it added. It was also 1900MHz/2100MHz band go under the hammer. reported that Claro won several licenses for Sao Paulo, The wireless market’s two smaller network operators, Rio de Janeiro, Espirito Santo and Rio Grande do Sul, Telefonica-owned Movistar and America Movil’s local while TIM won licenses in Parana and Pernambuco. The unit Claro, are expected to compete in the auction, while other companies that had shown interest in the auction market leader Kolbi (Grupo ICE) previously declared that were Clivo Participacoes, Lig Telecomunicacoes, Nextel, it does not intend to participate.

Sercomtel, Sky and TPA Telecomunicacoes for the A and (December 22, 2015) telegeography.com B lots. The date for a new bidding session for lot C will be announced soon. Last year, Brazil’s auction of 4G spectrum in the 700MHz band generated less revenue than expected after just three of the four nationwide operators bid for licenses.

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“Citizens and businesses will profit from clear rules that Cote d’Ivoire are fit for the digital age, that give strong protection and Bruno Nabagne Kone, head of at the same time create opportunities and encourage the Regulatory Authority for innovation,” said Vera Jourová, EU commissioner for Telecommunications in Cote justice, consumers and gender equality. In addition, the d’Ivoire (Autorite de Regulation des new legislation is designed to help law enforcement Telecommunications de CI, ARTCI), has told reporters authorities in member states exchange information to that the watchdog is set to authorize the formal use aid investigations and improve cooperation in a bid of 4G LTE technology from the first quarter of 2016. to counter terrorism and serious crime. However, one Speaking at a media event to mark the launch of analyst warned that some aspects of the EU’s new rules the latest segment of the government’s fiber-optic may already be outdated. “Unambiguous consent… backbone, the minister said: ‘The success that has might be incredibly difficult to obtain in a few years’ accompanied the introduction of 3G has encouraged the time, when IoT applications will have become more government to consider the launch of fourth-generation widespread and will originate an almost uncontrolled mobile services before the end of the first quarter of flow of personal data,” warned Luca Schiavoni, senior 2016’. ARTCI has raised the mobile license renewal fees analyst, regulation at Ovum, in a research note on due to be paid by the country’s operators in 2016 to Wednesday. He also pointed out that individual markets XOF100 billion (US$162.5 million), with the regulator will still be responsible for enforcing the minimum age also opting to cut the duration of the concessions, from under which parental consent will be required for the 20 years to 15. While it has not been stated explicitly, it use of services like Facebook, for example. “This is likely seems likely that the renewed concessions will permit 4G to be disruptive for both online companies and young functionality. Running in parallel, the ARTCI is evaluating users,” he said. The final text of the EU’s data protection applications for a new ‘global’ telecoms license holder, rules are due to be adopted at the beginning of 2016 which it hopes will be able to compete with Orange, and will become applicable in 2018. MTN and Moov. To that end the regulator has promised an ‘optimal redistribution of spectrum resources’ to help (December 16, 2015) totaltele.com even the playing field. (December 3, 2015) telegeography.com The European Commission’s (EC) investigation into CK Hutchison’s proposed acquisition of Telefonica O2 in Dominican Republic the UK centers on four key areas. A questionnaire sent The telecoms regulator Indotel has to companies in the mobile industry covers four main said it is working on an update of the areas; retail competition, sales channels, infrastructure country’s main telecoms legislation, and wholesale services provision. The commission General Telecommunications Law No. announced at the end of October it will be running an 153-98, which was enacted in May 1998. A report from in-depth inquiry into the takeover which would create Telesemana says that the regulator wants the law adapted the UK’s largest mobile operator. The EC has become to reflect the latest developments in the ICT sector. The more skeptical about deals which reduce the number executive director of Indotel, Leonardo Alberty Canela, of operators in a market from four to three under also said that the body will be working with operators competition chief Margrethe Vestager. A large part of to lower the cost of internet access in the country, while the questionnaire contains questions on the impact of promoting the extension of telecoms infrastructure to the merger on wholesale access to rival providers. The more rural areas and the construction of a national fiber commission asked respondents to judge what effect a backbone. (December 14, 2015) telegeography.com 5 per cent rise in wholesale costs would have, as well as the impact on average retail prices if costs per subscriber fell by 10 per cent. The questionnaire also asks whether European Union there will remain a sufficient number of providers of The European Commission, Parliament passive network infrastructure following any deal. The and Council reached a deal paving the way commission is also interested about the impact on high for a uniform set of data protection rules street retailers, such as Carphone Warehouse, which act to be rolled out across the EU. Originally as third-party resellers of mobile services. Following any proposed in 2012, the legislation is designed to give takeover, there is a risk that 3 and O2 brands could be consumers greater control over how their personal withdrawn from stores, weakening independent retailers. information is used, and to give businesses clarity about The EC is expected to use the responses it receives to how they should treat customer information. The rules the questionnaire to create a so-called statement of apply to companies in the EU and those based further objections in January, which it will present to Hutchison afield but which offer services within the EU. “We and Telefonica. It has a deadline of April 18, 2016 to should not see privacy and data protection as holding reach a final decision.(December 9, 2015)The Financial Times back economic activities. They are, in fact, an essential competitive advantage. Today’s agreement builds a strong basis to help Europe develop innovative digital The European Commission (EC) has declined a request services,” said Andrus Ansip, EU vice president for the from Britain’s Competition and Markets Authority Digital Single Market, in a statement. One of the powers (CMA) to review CK Hutchison’s planned acquisition given to consumers will be the right to be forgotten, of Telefonica Europe, owner of O2 UK, by pointing out which will enable consumers to request that their that it is ‘better placed’ to ensure consistency in the personal information is deleted in cases where there are application of merger control rules in the EU telecoms no legitimate grounds for retaining it. It will also be easier market, given its extensive experience in assessing to transfer personal data from one service provider to cases in the sector. The EC, which opened an in-depth another. Companies must also obtain explicit consent investigation of the deal in October this year, has until before processing customer data. And if a company is March 16, 2016 to make a final decision on the matter. hacked, they are required to notify the authorities and Hong Kong-based Hutchison entered into an agreement affected customers as soon as possible, or face penalties with Spain’s Telefonica to buy its subsidiary O2 UK for including fines of up to 4% of their annual turnover. GBP9.25 billion (US$14 billion) in March 2015 and filed

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an application seeking approval of its bid to the EC in National Communications Authority (NCA) once it has October. Shortly after, the CMA requested to review the transferred the money. The NCA announced a fortnight case, claiming that the transaction ‘threatens to affect ago that MTN, via its Scancom unit, was the only winner significantly competition in the UK retail mobile and in the 800-MHz contest, but it did not disclose the price wholesale mobile markets’. The watchdog highlighted of the licenses. There were two licenses up for grabs and that it would be appropriate for the tie-up to be referred four bidders in the auction, but the other three were to it for investigation because any impact on competition unsuccessful, the NCA said, without providing further resulting from the merger will likely be limited to UK details. The regulator said it will make a decision “in consumers. (December 7, 2015) telegeography.com due course” about the remaining unallocated spectrum block. “The award of this license will enable MTN Ghana to launch 4G/LTE services to support the increasing The European Commission has launched a public demand of data services and improve customers’ data consultation to finalize the details of the new roaming usage experience,” the telco said this week. As it stands, regulation passed by Parliament in October. The it is able to provide 2G and 3G voice and data services legislation will see roaming surcharges capped from to customers using 900-MHz, 1800-MHz and 2.1-GHz April 30, 2016 and an end to all roaming charges from spectrum, but the terms of those spectrum licenses June 17, 2015. From that point, all roaming in the EU will mean they cannot be extended to cover LTE services. cost the same as customers pay for domestic services. Ghana’s 4G regulations require licensees to have a The European Commission has been charged with minimum 35% Ghanaian ownership within 13 months setting the details of the fair-use policy and sustainability of the license date. MTN said it is “exploring various mechanism of the new roaming regulation. The former options” to comply with that rule. would allow operators to set a fair use amount of roaming in the EU, in order to avoid any abuse of the system, such (December 18, 2015) totaltele.com as ‘permanent roaming’, where customers use in their home country Sims from other countries where national The National Communications Authority (NCA) has rates are cheaper. If a customer exceeds the fair-use revealed MTN Ghana as the winner of one lot of 2×10MHz amount, operators would be able to add extra charges spectrum in the 4G LTE-suitable 800MHz mobile band, for roaming. (November 26, 2015) telecompaper.com pending fulfillment of requirements. The regulator notes that the auction process, which began in May this year, has been managed by independent auctioneer KPMG, France with a total of four companies applying for the two Orange was slapped with a €350 million lots of 2×10MHz frequencies on offer. The NCA will antitrust fine for anticompetitive practices make a decision on the other unallocated block ‘in due at Orange Business Services. The penalty course’. MTN Ghana, Surfline Communications, Goldkey was levied by France’s Autorité de la Telecom and Migson Communications each submitted Concurrence on the grounds that the incumbent applications for the frequencies by the 9 November artificially defended its position by withholding from 2015 deadline. The regulator set a minimum reserve rivals vital information about its copper local loop price of US$67.5 million, with the license to be valid network. Orange was also ruled to have harmed for 15 years, and noted that applying entities must be competition through aggressive loyalty programs that registered under the laws of Ghana and duly certified to meant customers were not necessarily retained based operate in Ghana, while entities with foreign ownership on the merits of the services on offer. Some of Orange’s – companies, joint ventures or consortia – must have a anticompetitive practices were implemented as long ago minimum of 35% Ghanaian ownership. Applicants failing as 2002 and subsequently discontinued, while others to meet the criteria were requested to submit a letter were rolled out more recently and are still in effect today. of commitment to have the minimum 35% Ghanaian “The fact that Orange has implemented these practices ownership in place within 13 months from the license’s simultaneously for nearly 10 years is an aggravating validity date, or otherwise face reduction of two years in factor,” the watchdog said, noting that the telco has been their license duration, plus an additional year for each sanctioned seven times over the last 15 years “for similar year in which the threshold is violated. predatory practices and discrimination.” According to the competition authority, Orange has agreed to (December 3, 2015) telegeography.com cooperate with its proposed remedies. The telco will establish within 18 months a scheme that guarantees equivalent access to information about its copper local India loop network, and amend or abolish its loyalty schemes. Only 93 million mobile users have 3G It will also pay a fine of €350 million, the largest ever connections in India, which is home to imposed on an individual company by the Autorité de la a whopping 981 million subscribers, Concurrence. “The victims of these practices are not only implying a low 3G penetration of 9%, said competing operators…but above all French companies, brokerage CLSA in a note. Although “300 million use whatever their size,” the watchdog said. mobile data, only 93 million of these have broadband (3G) connections,” said CLSA, citing latest data collated (December 17, 2015) totaltele.com by Regulator TRAI. “3G penetration varies significantly across circles in India, with the top-five circles having twice as much 3G penetration as the remaining 17 Ghana markets, and also having 40% higher ARPU versus MTN is working on the launch of 4G the industry average,” said the brokerage in a note to services in Ghana, having won a license clients Thursday. A case in point is that 3G penetration in the country’s 800-MHz auction earlier in Mumbai is a strong 21% , while in UP (East), it is as low this month, it revealed on Thursday. The as 4%. So much so, India’s top five data-centric markets - mobile operator said it has agreed to pay US$67.5 Mumbai, Delhi, Kerala, Karnataka and Tamil Nadu - have million (€62.5 million) for its license and 2 x 10 MHz of average revenue per user (ARPU) of Rs 225, which is 800-MHz spectrum, which it will receive from Ghana’s 40% higher than the industry average of Rs 161. Market

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SAMENA TRENDS _ DEC 2015 SAMENA TRENDS _ DEC 2015 leader Bharti Airtel and No 2 carrier Vodafone India lead Telecom industry will witness consolidation and Idea- in these top-five data markets and have gained higher Videocon spectrum trade is first of a series of such deals share here, the brokerage said. “Bharti and Vodafone possible in the sector driven by the recent guidelines lead these markets with 58% revenue market share on spectrum trading, India Ratings and Research (Ind- (RMS), which is higher than their overall market share Ra) said. The rating agency added that trading deals of ~55%, the brokerage said. However, analysts at CLSA will lead to the rise in debt levels of the acquiring cautioned that since “high-ARPU subscribers are likely to entities. Idea Cellular has announced purchase of the be early adopters of 4G, Bharti Airtel and Vodafone could 4G airwaves in the Uttar Pradesh (West) and Gujarat be impacted once newcomer Reliance Jio’s launches its circle from Videocon Telecommunications for Rs 3,310 awaited 4G services. crore last week, a deal which indicates that Videocon

(December 17, 2015) telecom.economictimes.indiatimes.com may be looking at exiting the telecom business. The availability of spectrum to launch 4G services in a fast growing 4G ecosystem will enable Idea to participate The telecom department (DoT), following a nudge from in the anticipated spurt in demand for data. “Similarly, the finance ministry, is speeding up harmonization of other telecom operators would need to strengthen their airwaves in the 1800 MHz band, to free up an extra 10 spectrum capabilities in order to meet the growth in MHz of pan-India 4G spectrum before the next auction 4G services and competition from Reliance Jio Limited likely in early-2016. Harmonization will make airwaves (R-Jio). Therefore, it is possible that Bharti Airtel and contiguous or `continuous’, which is absolutely critical Vodafone India may show interest in purchasing for 4G services. The 1800 MHz band is the most popular spectrum in the circles remaining with Videocon,” Ind- one globally for 4G-LTE deployments but if such airwaves Ra said. It added in Bihar and UP (East), Airtel may be are non-contiguous the quality of 4G services will suffer. a potential buyer of Videocon’s spectrum as Airtel’s Long term evolution or `LTE ‘ is the technology standard current spectrum is in a block of less than 5 MHz and for delivering high-speed broadband services, popularly in Haryana, Vodafone may look to buy spectrum for the known as 4G. The 4G spectrum harmonization roadmap same reasons. Videocon has 5 MHz block of spectrum was discussed last week with all industry stakeholders at in the 1800 MHz band in four other circles of Bihar, an internal DoT meeting chaired by the wireless advisor, Haryana, Madhya Pradesh and UP (East) post the Idea two people who participated in the discussions told deal. The Idea deal will also set a benchmark for pricing ET. The DoT meeting virtually coincided with telecom the spectrum, as other operators may also look for regulator’s recently unveiled consultation paper that opportunities to cash out their spectrum holding and seeks to establish the reserve price of airwaves across retire debt. Ind-Ra notes that Idea’s purchase of the multiple bands (800 MHz, 900 MHz, 1800 MHz, 2100 spectrum is at a significant premium to the last auction MHz, 2300 MHz and 2500 MHz) to be auctioned in discovered price of similar spectrum. The Rs 3,310 early 2016. At present a total 75 MHz of airwaves in crore price paid by Idea is 98 per cent higher than the the 1800 MHz are distributed between the telecom spectrum prices discovered in March 2015 auction. Idea industry (55 MHz) and the armed forces (20 MHz). has gross debt of Rs 23,540 crore as of September 2015. However, these spectrum holdings are fragmented and “The current deal can potentially increase the total debt scattered across the band, and hence not conducive for of the company by over 10 per cent,” it added. In case 4G. Distribution of airwaves in the 1800 MHz band was the other telecom players also tend to acquire spectrum formalized when the DoT and defense ministry entered at a substantial premium, the debt levels in such a pact more than four years ago. However, harmonizing companies could increase further, it added. It further 1800 MHz spectrum is a complex issue since telecom said heightened competitive intensity will also restrict companies are holding frequencies within the 20 MHz any meaningful pricing improvement for the telecom block meant for the defense ministry, which in turn, is sector in the near to medium term. “At the same time, holding spectrum within the 55 MHz block allocated for cash accruals from such investments will be back ended commercial telephony. The DoT meeting explored ways as 4G revenue will gain significance over the next three to reconfigure these airwaves to ensure both telcos and to five years and therefore could be credit negative in the armed forces have contiguous blocks of spectrum the short term,” it added. Ind-Ra said the telecom sector, within their designated quota. The telcos, it is learnt, which is witnessing increasing competition in the data have already submitted inputs sought by DoT for re- space is likely to take on additional capex to sustain configuration of the 1800 MHz band. The stakes are growth. The ratings agency said acquisition of spectrum big since reorganization of these airwaves will generate is strategic for Idea, enhancing its 4G capability on the an additional 10 MHz of contiguous 4G spectrum in all 1800MHz band. “With the acquisition of this spectrum, circles. So much so, such airwaves are likely to command Idea will increase its 4G footprint from 10 to 12 circles, a significantly higher valuation and potentially generate which currently contribute around 80 per cent of the total more revenue for the government once auctioned next revenues,” it said. Gujarat and UP (West) are important year. “Harmonization of 1800 MHz spectrum has been markets for Idea as they together account for more hanging fire for months, but DoT is keen to speed up than 11 per cent of its total Indian subscriber base and matters and maximize the quantum of spectrum that contributes 15.5 per cent of the company’s revenues. can be put to auction as the finance ministry is also keen Also, for the quarter ended September 30, 2015, Idea’s to conclude the airwaves sale this fiscal,” said one of the revenue market share in Gujarat and UP (West) was persons cited above. “The good news is that defense 25.2 per cent and 35.1 per cent respectively, while the ministry is very keen to coordinate matters with DoT subscriber share was at 13.5 per cent and 14 per cent since it will also gain access to contiguous airwaves,” respectively, it added. Ind-Ra said Idea faces a credible said the second person cited. But with the 1800 MHz threat in these circles from Reliance Communications band lately emerging as a core GSM band behind the which had acquired spectrum in the 800 MHz band premium 900 MHz, the demand for 1800 MHz spectrum in both these circles in the March 2015 auctions. “The as increased amid an ever expanding GSM subscriber 800MHz band provides RCom a chance of becoming base coupled with the fact that such spectrum is also 4G capable on a superior band and thus potentially ideally suited for 4G mobile broadband services, further providing a better 4G experience than the incumbents helped by a fast maturing devices ecosystem. thereby challenging their existing market position,” Ind- (December 1, 2015) telecom.economictimes.indiatimes.com Ra said. (November 30, 2015) telecom.economictimes.indiatimes.com

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The Telecom Regulatory Authority of India (TRAI) has The Minister of Communications and Information published a consultation paper on the valuation and Technology (MCIT) Rudiantara has revealed his reserve price for spectrum in the 700MHz, 800MHz, dissatisfaction with the recalculation of interconnection 900MHz, 1800MHz, 2100MHz, 2300MHz and 2500MHz charges, a process that began in the middle of this bands, in which it has proposed substantial changes to year. Having seen the results of the recalculation the the current rules on spectrum caps. The TRAI’s paper minister said: ‘I am not satisfied; I … am seeing no suggested that the spectrum caps should no longer be significant reduction in termination charges’ applied band-specific, with telcos limited to a proportion of the for cross-network calls. Rudiantara is keen to update a total spectrum an operator can acquire all together. As an system that has not been revised for a number of years; exception to this, the sub-1GHz bands (700MHz, 800MHz interconnection charges on fixed telephony and cellular and 900MHz ranges) would be grouped together, services are currently implemented under measures with a separate cap. ‘As all [of] these bands are lower introduced in 2006 and 2008, respectively. The MCIT frequency bands, all of them have better propagation supremo is keen for more to be done, saying that characteristics and, hence, can be treated alike,’ the trimming rates still further will have a beneficial impact paper notes. The TRAI did not propose specific levels for on the wider community. ‘We want to see a balancing the caps, but to illustrate its point suggested that telcos between on-net calls and inter-operator networks. I will could hold 25% of spectrum assigned in all bands, but not be a [signatory on the new measure] if the decrease 50% of all assigned airwaves in the sub-1GHz ranges. is not significant. As it stands, the termination charges The TRAI drew attention to the need to review the rules are too high – by a factor of six to seven times,’ he said. on spectrum holdings, noting that under the current The process of recalculating interconnection costs is guidelines none of the existing cellcos with spectrum in currently being carried out by the telecoms operators the 2300MHz or 2500MHz bands would be eligible to and the Indonesian Telecommunications Regulatory purchase new spectrum as they would be crossing the Body (BRTI). Rudiantara has hinted that the reductions 50% threshold, adding that there are unlikely to be any arrived at will need to be much more significant if he is new entrants in those bands as ‘the ecosystem … is still to sign it into law in Q1 2016. (December 11, 2015) IndoTelko not fully developed’. Further, the upcoming auction of the 700MHz range cast further doubt on the suitability of the current system. Provided the spectrum is sold off ITU in blocks of at least 2×5MHz, the TRAI pointed out that Organizations from the mobile and a minimum of three providers could purchase spectrum, broadcast sectors talked up their successes with each limited to a cap of 2×15MHz (of a potential at the ITU’s World Radiocommunication 2×35MHz per circle). The TRAI claimed a change to Conference 2015, which identified new the spectrum cap rules would be necessary to ensure spectrum for mobile services as well as providing some that at least four service providers could gain access stability for media companies. In a statement, John Giusti, to this ‘premium’ spectrum band, adding that it would chief regulatory officer of the GSMA, said that the global prefer to avoid implementing new restrictions solely harmonization of three new spectrum bands for mobile for the 700MHz band. The measures would help ease services represents “a major step forward in meeting the the process of consolidation in the sector, and allow the growing demand from citizens worldwide for mobile nation’s larger cellcos to scoop up much-needed extra broadband”. Newly harmonized bands for mobile include spectrum without falling foul of caps. The TRAI invited C-band (3.4GHz-3.6GHz), which is suited for delivering stakeholders to submit their comments by December 21, capacity in urban areas; L-band (1427MHz-1518MHz), 2015. (November 27, 2015) telegeography.com which is said to offer “an ideal blend of coverage and capacity capabilities”; and an extension of the 700MHz band (694MHz-790MHz) from Americas and APAC to Indonesia global availability. With regard to the 700MHz range, The Ministry of Communication and Giusti said: “By now making this spectrum available in Information Technology (MCIT) in Europe, the Middle East and Africa, governments have Indonesia is preparing to implement new taken an important step in improving the reach of critical rules requiring consumers to confirm mobile broadband services.” The European Broadcasting their identity when purchasing a new pre-paid SIM card, Union (EBU) welcomed the fact that UHF spectrum some ten years after it adopted a ministerial decree on (470MHz-690MHz) will remain exclusively allocated to the measure. The Jakarta Post writes that from December terrestrial TV services in the ITU’s Region 1 (including 22, 2015 anyone buying a pay-as-you-go SIM will be Europe, Africa, Russia, and parts of the Middle East) “well required to present personal identification papers, as into the next decade”. With calls to make the spectrum the government finally moves to prevent identity fraud available for mobile services, the EBU said that the and the possible misuse of telecoms services/devices for stability will “enable many countries in ITU Region 1 to nefarious means. It is understood that the main mobile continue with their digital switchover programs without network operators are broadly in support of the personal the risk of an impending change in use of the spectrum”. identification scheme, with Indosat Ooredoo chief sales The Asia-Pacific Broadcasting Union said that the same and distribution officer Joy Wahyudi quoted as saying frequencies will “remain broadly allocated to terrestrial that the firm was technically and administratively ready to TV services in ITU Region 3 (APAC) well into the future”, implement the regulation. ‘Indosat Ooredoo has readied with no region-wide mobile identification in the band. our new system to accommodate the customer database The sub-700MHz band is available for mobile in markets details. The new SIM cards have been distributed and in the Americas and several major markets within the our retailers have been informed. We can say that we are Indian subcontinent announced an intention to use part ready,’ he said. Echoing Indosat Ooredoo, Telkomsel sales of this band for mobile broadband. GSMA regulatory director Mas’ud Kamid added that the company was also head Giusti also noted the intention for the next WRC ready to implement the decree’s requirements, noting in 2019 to identify high frequency bands – above 24GHz that any potential problems with its implementation – for 5G mobile services. “This is a critical first stage in would be handled ‘collaboratively between retailers and the journey towards a new wave of mobile innovation, operators’. (December 17, 2015) telegeography.com considerably faster than existing technologies and driving a hyper connected society in which mobile will

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SAMENA TRENDS _ DEC 2015 SAMENA TRENDS _ DEC 2015 play an ever more important role in people’s lives,” he the start of next year, with the QoS reports published on said. (November 27, 2015) mobileworldlive.com a quarterly basis, although penalties will only be applied once a year. (November 25, 2015) The Nation Kenya The Communications Authority of Kenya (CA) has asked the country’s largest mobile Kyrgyzstan operator by subscribers, Safaricom, to The Ministry of Transport and hand back part the 800MHz spectrum Communications (MoTC) is proposing it was awarded last year, so that the 4G LTE-suitable to postpone the introduction of mobile frequencies can be reallocated to two smaller players, number portability (MNP) from January 1, Airtel and Telkom Kenya. According to local newspaper 2016 to January 1, 2018. According to an announcement The Star, the regulator has requested that Safaricom from the government, efforts to implement MNP in the return 5MHz of the 15MHz it was awarded, which will beginning of 2016 may have a negative impact on the then be handed to the cellco’s smaller rivals, along with government’s priorities, causing ‘substantial damage an additional 15MHz, giving each of the three operators to the reputation of the State’. Once launched, MNP an equal 10MHz allocation of 800MHz spectrum. ‘After services will allow subscribers to retain their mobile discussions, we all agreed that the 800MHz [spectrum] number when moving between providers operating be channelized at two by 10MHz, which means the in the country, which includes Megacom, Sky Mobile 30MHz that has been released, we can be able to get (Beeline) and Nur Telecom (O!). (November 26, 2015) Tazabek three slots. For fairness and parity, we need to equally distribute them to the three players,’ CA director general Francis Wangusi was quoted as saying. In November Mexico The telecoms market will develop in much 2014 Safaricom signed a KES14.9 billion (US$143 million) the same way as the U.S., AT&T chief national security communication contract with the executive Randall Stephenson predicted government, giving it access to additional frequencies this week. The U.S. operator’s operations in the 800MHz band, which the cellco use to switch on in Mexico are performing well and will constitute a commercial LTE services in Nairobi and Mombasa one major part of its growth over the next couple of years, month later. (December 17, 2015) telegeography.com but an aggressive reaction from its major competitor could be on the cards, Stephenson said on a Webcast National Treasury Cabinet Secretary Henry Rotich has interview during a UBS event this week. A key strategy said that the government plans to buy back twelve for AT&T in 2016 will be to “keep pushing the footprint,” million shares in Telkom Kenya, equivalent to a 10% with particular reference to Mexico, Stephenson said. stake, in a move that would raise its total shareholding “We’re convinced that the U.S. is going to replicate itself to 40%. Last month France’s Orange Group announced in Mexico.” AT&T landed in the Mexican mobile market the signing of an agreement with African private equity thanks to the acquisitions of Iusacell and Nextel earlier firm Helios Investment Partners for the sale of its entire this year. It has launched some cross-border offers and 70% stake in Telkom. The Nation newspaper cites Rotich is rolling out an LTE network that will reach 40 million as saying that a new shareholding agreement between people by the end of this year and 100 million in three the government and Helios Investment Partners will be years. “It is proving to be everything we had hoped ready by the end of the year, paving the way for Orange and more,” Stephenson said. He explained that AT&T Group to exit Telkom Kenya. He added that the deal will is introducing its own brand in Mexico on a market- usher in a new board that will restructure the telco’s by-market basis, at the same time as it launches LTE top management: ‘We need top managers with a clear services. “The demand for the AT&T brand is really strategy for the company. As Telkom Kenya’s ownership high,” said Stephenson. “The AT&T brand in Mexico is changes by January, we should expect fresh leadership.’ an aspirational brand.” The U.S. telco’s Mexican business The government’s shareholding in Telkom dropped from is recording good growth in terms of both postpaid and 49% to 30% on a permanent basis in June 2013 (thereby prepaid subscriptions. “I think we’re going to surprise raising Orange Group’s ownership to 70%), following a a lot of people with our Mexico results in the fourth decision by the National Treasury not to allocate any quarter,” Stephenson said. “It tells you the appetite there funds to the financially stricken firm. The Treasury’s stake is for a competitive alternative in Mexico.” That said, in Telkom had initially dropped to 30% in December the operator faces formidable competition from Carlos 2012 after the government only paid up KES2.5 billion Slim’s America Movil, and the market leader is doubtless (US$24.1 million) of the KES4.9 billion it was expected to keen to protect its position. “I do not expect Carlos inject into the firm to preserve its shareholding. (December is just going to lay down and allow us to take share,” 10, 2015) telegeography.com Stephenson said. “I know this guy. He’s going to be very aggressive.” When it comes to investment in Mexico, Stephenson was keen to emphasize that he views the Telecoms operators will be required to pay a fine country as an extension of his core U.S. business, rather equivalent to 0.2% of their annual gross revenue if they than as a new market; effectively AT&T is extending its fail to meet quality of service (QoS) standards, under new LTE network into Mexico, not rolling out a new network measures introduced by the Communications Authority there. “Think of Mexico as another state of the United of Kenya (CA). Addressing stakeholders from the East States,” he said. The pricing and the look and feel of African region at a meeting in Nairobi centered on QoS, mobile offers will look similar across the two markets, the regulator’s Director General revealed that the CA is and over the next year AT&T will roll out more shared in the process of outsourcing QoS surveillance services, value plans. “[Mexico] is going to be a major part of our in a move that will see more frequent assessments and growth for the next couple of years,” Stephenson said. reports regarding Kenyan telcos’ adherence to the set (December 9, 2015) totaltele.com targets across the country. This will ensure that corrective measures are undertaken within the shortest time possible, he added. The new regulations will apply from

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The Federal Telecommunications Institute (IFETEL) Movitel – say they will be limiting the services of users has confirmed that the freeing up of 700MHz ‘digital who do not register their details in time, and eventually dividend’ spectrum is on schedule, and the analogue cutting services completely. By last month only around switch-off will take place in an initial six states at two-thirds of Mozambique’s 16 million mobile lines had midnight on December 17. The first states to transition been registered, though this was up from 43% back in to digital broadcasting have been identified as Sonora, February. The Minister of Transport and Communications Hidalgo, Tlaxcala, Puebla, the State of Mexico and Distrito had previously labeled the task as ‘hopeless’.

Federal. Running in parallel, fellow Mexican regulator (November 27, 2015) AllAfrica the Secretary of Communications and Transport (SCT) issued an invitation for interested parties to participate in the tender for the so-called ‘Shared Network’ project. Myanmar The tender, which will see the SCT supported by financial The government is seeking expressions advisor Bank of America Merrill Lynch alongside local of interest from international operators firm Transparencia Mexicana, is due to commence looking to join the consortium that will on January 29, 2016. The Shared Network, which will become the market’s fourth mobile have exclusive use of a 90MHz block of spectrum in the operator. Operators will have until Friday to submit an 700MHz band, was written into Mexico’s constitution expression of interest to the government, the Myanmar in 2013 as part of a sector overhaul designed to curb Times reported. The winning applicant will join a group the dominance of America Movil (AM)-backed Telcel. of 11 local technology and other companies that have The plan calls for groups of private companies to bid successfully applied to take part in the consortium. The for the right to build and run the network, which would consortium will then be awarded a 15-year telecom rent capacity to mobile providers. Current government license with an option to extend this for at least 10 assumptions price the overall project at around US$7 additional years. These are the same terms granted billion, down from an original US$10 billion ten-year to Telenor and Ooredoo during their successful bid to projection, with the number of cell towers likely to be launch mobile operations in the market. Roland Berger, closer to 12,000 than 20,000. (November 25, 2015) telegeography.com the consultancy firm that helped choose Telenor and Ooredoo as the winners of the tender to grant two mobile licenses, will also help select the international Moldova applicant to take part in the new consortium. Operators Orange Moldova has announced that will need to be able to bring the necessary expertise it has been awarded a pair of licenses and financing to ensure a successful mobile rollout. The in the 800MHz and 900MHz bands by license will be granted next year after the joint venture the National Regulatory Agency for has been formed. (December 14, 2015) telecomasia.net Electronic Communications and Information Technology (ANRCETI). The watchdog issued the concessions on November 24, following the conclusion of the two-month Netherland tender; Orange was the only company to participate in Vodafone Netherlands has announced the auction. The 800Mz license comprises 2×10MHz that it is suing the country’s incumbent blocks of Frequency Division Duplex (FDD) spectrum, PTO KPN for EUR115 million (US$130 while the 900MHz permit encompasses 2×5MHz million) in damages as a result of ‘anti- blocks of FDD spectrum. The concessions will expire on competitive behavior’. Mobile operator Vodafone claims November 5, 2029 and the combined license fee has that KPN hampered its attempts to enter the fixed been set at EUR11.905 million (US$12.637 million). a telephony, internet and pay-TV markets by restricting total of 16 spectrum licenses went under the hammer access to its networks between 2011 and 2014, which on September 25, including one license for frequencies meant that Vodafone was not able to compete effectively in the 800MHz band, two for 900MHz frequencies, two with KPN and other multi-play providers such as the in the 2100MHz range, three in the 2600MHz band, and cableco UPC. Vodafone says that during the three-year eight licenses in the 3400MHz-3800MHz range. period KPN ‘repeatedly failed’ to provide access to its (November 26, 2015) telegeography.com copper and fiber infrastructure at a time when the cellco claims 100,000 households per quarter were signing up for ‘all-in-one’ offers. The operator launched its Mozambique ‘Vodafone Home’ bundle of wireline services in August Mobile operators in Mozambique are 2011, but had attracted just 73,000 fixed broadband working to complete the registration of subscribers by end-September 2015, while KPN claimed all SIM card users in the country by this over three million retail internet customers at the same weekend and are threatening to limit the date. (December 10, 2015) telegeography.com services of customers who do not register their details. The government first ordered operators to carry out SIM card registration around five years ago, in response to a Nigeria series of riots in Maputo which authorities said had been MTN announced that it is taking legal coordinated by mobile phone. The scheme was designed action to challenge the hefty fine imposed to avoid the use of cell phones for illegal activities. A on it in Nigeria. The African telecoms number of deadlines for the process came and went, group said that it has taken legal advice but in August this year the government passed a decree on the matter which has led it to believe that Nigeria’s giving the phone companies 90 days to complete the telecoms regulator does not have the necessary authority registration of their clients. The final date for registration to levy such a penalty. The Nigerian Communications is tomorrow (November 28, 2015), with the operators Commission (NCC) hit MTN’s local unit with a fine worth facing fines of up to MZN6 million (US$15,000) if they fail US$5.2 billion (€4.7 billion) almost two months ago for to respond. Nigerian operator MTN was recently handed its failure to disconnect millions of unregistered SIM a fine of NGN1.04 trillion (US$5.2 billion) for failing to cards in accordance with the regulator’s timetable. The disconnect around 5.1 million unregistered subscribers. NCC has since reduced the fine to US$3.9 billion on the Mozambique’s three cellcos – mCel, Vodacom and grounds that MTN admitted it was in the wrong and

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SAMENA TRENDS _ DEC 2015 SAMENA TRENDS _ DEC 2015 taking into account its sizeable investments in Nigeria’s best outcome for the company, its stakeholders and telecom sector. MTN is still not satisfied though. “The the Nigerian authorities and accordingly all factors manner of the imposition of the fine and the quantum having a bearing on the situation will be thoroughly thereof is not in accordance with the NCC’s powers and carefully considered before the company arrives at under the Nigerian Communications Act and therefore a final decision.” And a source told Reuters that MTN there are valid grounds upon which to challenge the more negotiations are on the cards: “The fine is still big fine,” MTN said in a statement on Thursday. As such, enough to cripple MTN’s ability to invest in its network MTN has instructed lawyers to proceed with an action and that’s what further talks with the NCC are about.” in the Federal High Court in Lagos, it said. Nonetheless, MTN is facing the fine after failing to cut off 5.1 million the telco said it will still continue to engage with the unregistered SIM cards from its network, with NCC Nigerian authorities with a view to resolving the matter stepping up efforts to verify the identity of subscribers out of court. The fine has caused some significant amid concerns about terrorism. Nhkelo was appointed upheaval for MTN and its management in recent weeks. executive chairman following the resignation of group The telco’s group chief executive Sifiso Dabengwa president and CEO Sifiso Dabengwa last month. Now the resigned in early November, having tried and failed to affair has claimed the resignations of MTN Nigeria CEO resolve the situation. The company is being steered Michael Ikpoki and the head of regulatory and corporate by executive chairman Phuthuma Nhleko for the next affairs, Akinwale Goodluck. (December 3, 2015) mobileworldlive.com six months. And earlier this month MTN Nigeria CEO Michael Ikpoki and head of regulatory and corporate affairs Akinwale Goodluck also resigned. The company The Government has committed to reach 100% initiated a management restructuring in a bid to improve penetration of digital terrestrial television (DTT) by 2016 to facilitate a ‘vibrant TV and media economy’. Speaking operational oversight. (December 18, 2015) totaltele.com at the 35th anniversary of media and entertainment company Silverbird, President Muhammadu Buhari Telecom regulator has explained its decision to reduce said the analogue switch-off provides an opportunity the multi-billion dollar fine imposed on MTN Nigeria for to diversify the country’s provision of TV channels and failing to disconnect unregistered SIM cards. In a report content. Sub-Saharan Africa is expected to have 46.46 by Vanguard on Tuesday, the Nigerian Communications million primary digital DTT homes by 2020, he added, with Commission (NCC) said it took into consideration 37.6 million receiving free-to-air (FTA) content and 8.86 several factors, including the operator’s admission of million pay-TV subscribers, according to World Stage. guilt and the contribution the operator has made to “Nigeria will be the largest DTT nation in Africa in 2020, the sector. “We are aware and conscious of the level both for free-to-air, that is 9.07 million, and for pay, that of investment MTN has made in this market; they have is 3.59 million ... The target markets for free-to-air are the the largest number of subscribers. It is also important 26 million-plus TV households, and the growth of DTT in to know that Nigeria remains their biggest market,” said Nigeria is accelerating much faster than the growth in the Tony Ojobo, the NCC’s director of public affairs, in the pay-TV market,” said President Muhammadu Buhari. He report. Indeed, MTN is by far the largest mobile operator also called on stronger cooperation between Nigeria’s in Nigeria, serving 62.5 million customers at the end of media and entertainment industry and the government September, according to the NCC’s most recent figures. administration to fight terrorism and increase the jobs Second-placed Glo Mobile has 31.3 million customers. available for young people. (November 25, 2015) rapidtvnews.com MTN Nigeria was fined in late October after failing to disconnect 5.1 million unregistered SIM cards in accordance with the NCC’s timeline. The telco was fined Norway 200,000 naira (approximately US$1,000) per subscriber, Communications regulator NKOM said the leaving it with a total bill of $5.2 billion. Last week, the auction of three blocks in the 1800 MHz fine was reduced to $3.4 billion but then it was almost band, left over from the December 2013 immediately increased again to $3.9 billion after the 4G auction would begin on November 25. NCC put the wrong figure in its first letter to MTN Block one will pair the frequencies 1710-1715 MHz and Nigeria. “There was a mistake in [the] figure of the first 1805-1810 MHz, block two will include the ranges 1715- letter which immediately prompted the second one,” 1720 MHz and 1810-1815 MHz, and block three will said Ojobo in Tuesday’s Vanguard report. For its part, offer the bands 1720-1725 MHz and 1815-1820 MHz. MTN said it is carefully considering both letters, and that NKOM said a single operator might obtain all the blocks, executive chairman Phuthuma Nhleko will “urgently re- or the blocks might be allocated to more than one engage” with Nigeria’s authorities. player. The watchdog said it would not publish any more information while the auction was under way, but would (December 10, 2015) totaltele.com do so once it was complete. (November 25, 2015) telecompaper.com

The Nigerian Communications Commission (NCC) reduced the $5.2 billion fine facing South Africa’s Paraguay MTN by about one third to $3.4 billion, while the National Telecommunications Council management fallout continues at the group with two (Consejo Nacional de Telecomunicaciones, more executive departures and a revamped reporting Conatel) has confirmed that Tigo and structure. Talks between the NCC and the company Claro have been formally awarded have been going on for several weeks and this is the 1700MHz/2100MHz 4G licenses. Earlier this month outcome, which was delivered in a letter dated. MTN’s the watchdog revealed that the incumbent duo were reaction to the reduction was cautious, saying the the only Paraguayan operators to register applications company is “carefully considering” the NCC’s reply. ahead of the auction, with Telecom Personal (Nucleo) Executive chairman Phutuma Nhkelo will “immediately – the country’s second largest cellco by subscribers – and urgently re-engage” with the Nigerian authorities opting not to participate in the process. The two licenses “before making a formal response”, said a statement. generated a total of USD90 million, CONATEL noted in The statement continued: “Furthermore, as it is essential its press release, suggesting that Tigo and Claro both for the company to follow due process to ensure the secured their maximum spectrum allowance. As per the

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bidding conditions, twelve paired 2×5MHz AWS sub- speeds. It stipulated that broadband be classified as a bands went under the hammer, with minimum bids data connection speed of at least 256kbps, but some set at USD15 million per paired spectrum block. The say that this figure should be much higher. For example, maximum spectrum allowance each carrier could be interactive media specialist Carlos Nazareno of the assigned was set at 30MHz. Going forward, CONATEL group Philippine Flash Actionscripters has argued that, anticipates that the frequency holders will be in a in today’s market, 256kbps is little more than dial-up position to launch commercial services by August 2016. and as such is inadequate when dealing with the current State-backed mobile operator Hola Paraguay (Vox) was size of Web pages (e.g. 2MB/3MB). This position has also conspicuous by its absence from the process; the been supported by other key groups in the tech sector, cellco activated its own 4G network back in December including the Philippine Web Designers Organization, 2012, utilizing unused 3G spectrum secured back in Game Developer’s Association of the Philippines, August 2008. (December 16, 2015) telegeography.com Philippine Game Development Community, and the Philippine Internet Freedom Alliance. The National Telecommunications Council (December 21, 2015) The Standard newspaper (CONATEL) has confirmed that Tigo and Claro have registered applications for the watchdog’s imminent Telecom regulator the National Telecommunications 2100MHz/1700MHz AWS spectrum auction, while Commission (NTC), has approached the Commission noting that Telecom Personal (Nucleo) – the country’s on Audit (COA) as it seeks to determine the appropriate second largest cellco by subscribers – has opted not to value of the 3G license it is seeking to auction off. The participate in the process. CONATEL has now clarified frequencies in question relate to the 3G concession that it intends to distribute the spectrum between relinquished by Philippine Long Distance Telephone December 17 and 21, and anticipates that the frequency Company (PLDT) three years ago – at the time they holders will be in a position to launch commercial were assigned to its Connectivity Unlimited Resources services by August 2016. Twelve paired 2×5MHz AWS Enterprise (CURE) unit and being used by sister company sub-bands have been made available for auction by the Smart Communications – as a precondition of the telco’s government, while the maximum spectrum allowance acquisition of Sun Cellular from the Gokongwei Group. each carrier can be assigned has been set at 30MHz. According to TeleGeography’s GlobalComms Database, The minimum bidding price for a sub-band has been CURE originally secured one of four 3G licenses in January set at US$15 million. Interested parties were given until 2006. However, in 2008 the PLDT Group acquired CURE December 3 to file applications for the tender. State- from a consortium helmed by former trade minister backed mobile operator Hola Paraguay (Vox) was also Roberto Ongpin for PHP419.54 million (USD9.1 million). conspicuous by its absence; the cellco activated its own In October 2011 the NTC ordered PLDT to relinquish 4G network back in December 2012, utilizing unused 3G CURE’s surplus 3G frequencies as part of its approval for spectrum secured back in August 2008. PLDT’s takeover of Digitel and its Sun Cellular arm. PLDT (December 7, 2015) telegeography.com has previously stated that it hopes to recoup as much as PHP1 billion of its CURE investment, but the process has dragged on interminably. In July 2014 the regulator Philippine began the process of drawing up the bidding criteria Telecom regulator, the National for the auction of the surplus license, confirming at the Telecommunications Commission (NTC), time that the watchdog and PLDT would each nominate is proposing new legislation to set up a a representative to assume a position on the bidding universal access fund (UAF) for broadband committee, with a third nominee selected between them services in the country. The regulator’s initiative would to act as an auditor. The committee was to be tasked call on all telecoms operators to contribute 0.25% of with deciding on the compensation owed to PLDT for gross revenue automatically into the UAF under the its PHP2.125 billion investment in CURE, which briefly draft bill titled ‘An Act Institutionalizing A Universal operated under the Red Mobile brand. In the latest Access Fund’, to be used to boost the development of twist, however, NTC commissioner Gamaliel Cordoba has broadband infrastructure in underserved areas. Public confirmed that the watchdog has approached the COA telecoms entities generated revenue of PHP264 billion seeking its help to determine an accurate cost recovery (US$5.58 billion) in 2014 – translating into nearly US$14 amount (CRA) for the license, that can be used as a basis million had it been converted into the UAF. Further, the for the auction’s asking price. The NTC hopes to have new law would require the NTC to transfer 90% of the an answer by January 2016 which, as Cordoba points annual spectrum fees it collects from operators into the out, will be used as the compensation value to PLDT fund – which currently runs to around PHP500 million for its investment in CURE. The NTC is adamant that the per annum. Earlier this month Senator Juan Edgardo 3G license can still be auctioned off before the end of Angara, chairman of the Senate committee on ways and President Aquino’s term of office (May 2016). means, urged the government of President Benigno (December 15, 2015) telegeography.com Aquino to do more to prioritize e-commerce and help micro, small, and medium enterprises (MSMEs) bolster their global web presence, pointing to the Philippines’ Senator Juan Edgardo Angara, chairman of the Senate poor showing in a 2015 study by internet performance committee on ways and means, has again urged the data provider Ookla, which found that it has the second government of President Benigno Aquino to do more slowest download speeds among 22 Asian countries to improve the poor state of the country’s internet profiles, next to Afghanistan. Ookla’s findings suggest services. Angara says more must be done to prioritise that, in the Philippines, average download internet e-commerce and help micro, small, and medium speeds are around 3.64Mbps – significantly below the enterprises (MSMEs) bolster their global web presence, average broadband speed of 23.30Mbps – leaving the pointing to the Philippines’ poor showing in a 2015 study nation languishing at 176th place out of 202 countries by internet performance data provider Ookla, which across the world. Earlier this year the NTC introduced found that it has the second slowest download speeds new rules governing broadband internet connection among 22 Asian countries profiles, next to Afghanistan.

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Ookla’s findings suggest that in the Philippines average partnership with Australia’s Telstra Corp, both Philippine download internet speeds are around 3.64Mbps – Long Distance Telephone Co (PLDT) and Globe Telecom significantly below the average broadband speed of have suggested that a fairer redistribution would enable 23.30Mbps – leaving the nation languishing at 176th them to provide users with improved mobile internet place out of 202 countries across the world. Despite services. In answer to a question on the topic at an event the senator’s assertion that Filipinos are ‘known to be in Metro Manila this week, though, Cabarios said: ‘How big users of social media and given the amount of time can you reassign when it has presently been assigned?’ we spend on the web … will no doubt embrace online He went on to point out that any move to reassign shopping,’ access costs are also proving a barrier to the spectrum must have a good legal basis to do so entry. Average internet costs of US$18.19 per 1Mbps are, – such as the owner failing to pay its fees or non-use he notes, far above the global average of US$5.21. Earlier of spectrum, adding that SMC’s various telecoms units this year the telecoms industry watchdog, the National are currently up to date in this respect and the firm is Telecommunications Commission (NTC), introduced new pursuing the ‘ongoing build-up of its network’. In the rules governing broadband internet connection speeds. NTC official’s view, any move to force SMC to give up It stipulated that broadband be classified as a data the spectrum for reallocation would have to involve a connection speed of at least 256kbps, but some argue ‘quasi-judicial’ process that could take ‘a long time’ to that this figure should be much higher. For example, resolve. In a bid to grab a slice of the valuable 700MHz interactive media specialist Carlos Nazareno of the frequencies owned by SMC, PLDT and Globe Telecom group Philippine Flash Actionscripters has argued that, asked the NTC for access to the bandwidth, saying that in today’s market, 256kbps is little more than dial-up the conglomerate currently had an unfair allocation of and as such is inadequate when dealing with the current spectrum by dint of its acquisitions in the Philippines? size of Web pages (e.g. 2MB/3MB). This position has The telcos’ request came just after Telstra made some been supported by other key groups in the tech sector, less than complimentary remarks on the quality of including the Philippine Web Designers Organization, internet services in the country. SMC owns rights to use Game Developer’s Association of the Philippines, the band through its telecoms units Wi-Tribe (Liberty Philippine Game Development Community, and the Telecoms Holdings) and High Telecommunication – its Philippine Internet Freedom Alliance. so-called ‘ace in the hole’ – as it contemplates launching

(December 7, 2015) The Manila Bulletin the mobile joint venture with Telstra. SMC also owns the Filipino telcos Extelcom, Eastern Telecommunications Philippines (formerly ETPI) and Bell Telecommunications The Ayala-led Filipino operator Globe Telecom is (BellTel), helping to ramp up its presence ahead of the ramping up pressure on the regulator, the National 2016 launch. SMC owns rights to a total block of 90MHz Telecommunications Commission (NTC), to reallocate of spectrum in the 700MHz band, split between Wi-Tribe highly valuable spectrum frequency (VSF) in the 700MHz (80MHz) and High Telecommunications (10MHz), while band, currently held by a number of telcos owned by another player, New Century Telecommunications, holds the conglomerate San Miguel Corp (SMC). In another the remaining 10MHz. SMC’s President Ramon Ang has plea this week, Globe said it is ‘imperative for the NTC already dismissed the incumbents’ appeal, however, to ensure that the 700[MHz] band is made open to pointing out that no deal with Telstra is in place yet, and other telco players’, in order to address concerns over whatever the outcome it intends to use the 700MHz the state of internet services in the Philippines amid band to deliver high speed mobile internet services. rising demand for data connectivity. SMC owns rights ‘Between the two of them [PLDT and Globe], they have to a total block of 90MHz of spectrum in the 700MHz almost 300MHz of LTE frequencies. Why do they need band, split between Wi-Tribe (80MHz) and High more,’ Ang said. ‘They have all the frequencies, all the Telecommunications (10MHz), while another player, New technology. All they have to do is fine- tune what they Century Telecommunications, holds a further 10MHz. have.’ (November 27, 2015) telegeography.com Despite this, Edgardo Cabarios, the head of regulatory affairs at the NTC, has said it would be ‘difficult’ to recall and reallocate the 700MHz frequencies owned by SMC, Poland despite strident calls from incumbents Globe and PLDT The new Minister of Administration and for it to do so. The conglomerate also holds spectrum Digitization, Anna Strezynska, has said under the 800MHz, 900MHz and 1800MHz bands, and that the government’s auction of 800MHz its president Ramon Ang has already dismissed the and 2600MHz frequencies will not be incumbents’ various appeals, pointing out that: ‘Between repeated, despite complaints from some participants the two of them [PLDT and Globe], they have almost over the way the sale was handled. The Minister has 300MHz of LTE frequencies. Why do they need more? revealed that she has received objections from unnamed … They have all the frequencies, all the technology. All operators because of the state’s decision to force an they have to do is fine-tune what they have.’ In response, early end to the auction process in mid-October. Five however, Globe General Counsel Froilan Castelo argues companies submitted bids totaling PLN9.23 billion that there is an urgent need to ensure more ‘equitable’ (US$2.5 billion), which was more than five times the initial distribution of the VSF spectrum, noting: ‘The whole reserve price of PLN1.6 billion. The government stepped range of 700[MHz] band simply cannot be given to only in to end the bidding because of fears that the high one entity.’ (December 3, 2015) telegeography.com price of spectrum would see operators pass the costs on to customers in the form of tariff hikes for 4G services. Separately, it has been reported that Orange Polska and Edgardo Cabarios, the head of regulatory affairs at the T-Mobile Poland are testing 4G services using 2100MHz National Telecommunications Commission (NTC) in the spectrum. While the firms say they have no immediate Philippines, says that it would be ‘difficult’ to recall and plans to utilize the band for LTE technology – assuming reallocate the 700MHz frequencies owned by locally- the 800MHz and 2600MHz auction results do stand – owned conglomerate San Miguel Corp (SMC), despite they will ultimately look to use 2100MHz frequencies strident calls from incumbents for it to do so. Amid once 4G is more established. The two telcos have signed growing speculation that SMC intends to use the ‘very a network sharing agreement in Poland which sees them powerful’ band to roll out mobile broadband service in collaborate on the rollout of infrastructure, whilst all

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major operators in the country already offer commercial of last year the ARTP said it had pushed back plans to LTE services largely using the 1800MHz band. launch MNP to 2015, despite previous assurances that

(December 2, 2015) telegeography.com it would go live in October 2014. Tests relating to the introduction of the MNP system began on July 22, ahead of a full-blown launch in September. The transfer of a Russia mobile number to a different operator is free of charge Ministry of Telecom & Mass for consumers. (December 22, 2015) telegeography.com Communications (Minsvyaz) has confirmed that a decision came into force A group of Senegalese MPs has asked the government on December 12, 2015 which permits all not to renew the license of mobile operator Orange telecoms operators to deploy nationwide IP Multimedia Senegal until it makes a commitment to provide Subsystem (IMS) packet networks for public use, freeing assurances that it will improve its quality of service mobile operators to implement commercial voice-over- (QoS). The cellco, which is part of the Sonatel Group, has LTE (VoLTE) on a national basis. the decision removing been accused by the parliamentary members of failing IMS restrictions will also enable the unrestricted launches to address defects on its networks – despite being the of a range of other services, such as SIP-protocol-based largest player in the market – resulting in poor service, voice/messaging/presence status, Wi-Fi Calling (VoIP poor network coverage, high internet access costs and calls via existing Internet channels), and various network numerous network failures. With Orange hoping to virtualization applications whereby operators move renew the concession when it expires in 2016, MPs are certain hardware/software functions to cloud servers. asking that the Ministry of Posts and Telecommunications (December 15, 2015) Telecom Daily (MINPOSTEL) and the Regulation Authority of Post and Telecoms (ARTP) ensure it agrees to do more to address Telecom regulator this week announced that it will the defects before getting its request authorized. That open applications for participating in its upcoming 2.6- said, the MPs involved are not restricting their criticism GHz spectrum auction on December 1 and outlined its to Orange alone, noting that the two other incumbent timetable for the multi-stage sale process. Interested cellcos, Tigo and Expresso, need to redouble their parties will have until December 29 to lodge their efforts to expand their network across all administrative applications for the contest, Roskomnadzor said. The counties in Senegal. (November 30, 2015) Agence Ecofin auction, which covers frequencies from 2570 MHz to 2620 MHz, will begin in February 9. The regulator has split the available airwaves into 82 lots. The first lot will Serbia be auctioned on February. Lots two to 41 will be sold on Government is agonizing over the sale of February 11, followed by lots 42-82 on February 17. Lot Telekom Srbija, with a final decision on one covers all of Russia, with the exception of Moscow the future of the company reportedly due and Sevastopol, in the Crimea. It includes 25 MHz later today (December 11). Six companies of spectrum and carries a reserve price of 2.94 billion placed binding offers for the 58 per cent majority stake roubles (€42 million). The other lots are all regional and in the operator in November, which included a joint also come with 25 MHz of spectrum. Starting prices vary offer by Slovenia’s Telekom Slovenije and US private from RUB1.1 million for spectrum in Nenets (lot 33) to equity fund Apollo, as well as a bid from the Abu Dhabi RUB134.3 million in St Petersburg (lot 12). Roskomnadzor investment authority. The biggest offer on the table so pointed out that in its recently-completed auction of far has reportedly been from the US Apollo fund at €1.2 spectrum in the 1800-MHz band, the final sum raised billion, which falls just short of a €1.4 billion government was six times higher than the aggregate reserve prices valuation. Serbia’s Prime Minister Aleksandar Vucic is set of the spectrum lots. Indeed, the contest, which drew to consult with financial adviser Lazard one more time to a close in early October, raised RUB6.28 billion (€90 before making a final decision. “I’m doing this because million), compared with a reserve price of RUB1.03 opinions are divided among ministers, it’s not easy to billion. All four of the country’s main mobile operators take such a decision,” he’s quoted as saying. Vucic has took part and each won in excess of RUB1 billion worth said in the past the government will not sell the stake of spectrum. Vimpelcom was the biggest spender, unless its valuation is met, and it remains unclear whether racking up a bill of RUB2.03 billion, closely followed by ministers are divided about whether to sell at all, or who MTS, which spent RUB1.91 billion to secure five spectrum to sell to. Telekom Austria, which had a failed bid for the lots. MegaFon and Tele2 committed RUB1.26 billion and company in 2011, and Deutsche Telekom both emerged RUB1.08 billion respectively. (November 26, 2015) totaltele.com as interested parties when the sale process began, but have since pulled out of the running. Telekom Srbija owns a majority stake in Bosnia’s Telekom Srpske and Senegal also controls Montenegro’s M: Tel. According to GSMA Regulatory Authority for Intelligence, the company has 4.8 million mobile Telecommunications and Post (L’Autorite connections, almost half of all overall connections in the de Regulation des Telecoms et des country. (December 11, 2015) mobileworldlive.com Postes, ARTP) has reported that a total of 2,870 subscribers have changed their network service provider in the first three months since mobile number Spain portability (MNP) was launched in the country on Spain plans to auction 2.6-GHz and 3.5- September 1, 2015. According to the Director General of GHz spectrum in January 2016 with the ARTP, Abdou Karim Sall, Tigo Senegal – a subsidiary a view to completing the process by of Millicom International Cellular (MIC) – has been the March, it emerged this week. According biggest beneficiary of MNP to date, with a net gain of to a report by Expansion on Tuesday, Spain’s Ministry 702 (with 239 leaving its network), followed by Orange of Industry is tendering 2.6-GHz frequencies that with a gain of 372 (despite losing 813 subscribers), while were left unsold following the digital dividend auction Expresso Telecom booked a net loss of 361. At the end carried out in mid-2011. It will also offer for sale 10

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MHz of 2.6-GHz spectrum returned to the government long belated analogue switch-off project on February by Vodafone, which exceeded its spectrum cap when 1, 2016, TechCentral reports. Minister in the Presidency it acquired Ono. The airwaves carry a reserve price of Jeff Radebe said: ‘Cabinet was briefed on [the] progress €5 million, and cover Aragon, Cantabria, Castile and made on the digital migration program. It approved Leon, Catalonia, Ceuta, Extremadura, La Rioja, Navarra, the commencement of the dual illumination period for Madrid, Melilla, Murcia and Valencia. Together these the digital broadcasting signal on February 1, 2016.’ areas have a combined population of 27 million, about The official added that the migration from analogue 58% of the total population of Spain. Furthermore, Spain to digital broadcasting services will release ‘the much- also plans to auction 20 MHz of nationwide unpaired needed frequency spectrum’ – suitable for the provision 3.5-GHz spectrum. Currently used for fixed wireless of 4G LTE mobile broadband services – and will increase broadband, the government is reallocating it for use the competitiveness of the South African economy. by mobile operators. According to the report, Spain’s The migration process deadline, which was originally smaller players, Yoigo and MasMovil, are the most likely scheduled for completion in November 2011 in line with candidates for the spectrum given that the country’s big a Cabinet decision taken in 2007, has since been pushed guns – Telefonica, Vodafone and Orange – are ineligible back to December 1, 2013, and subsequently June due to the fact they would breach the upper limits of 17, 2015 (the International Telecommunication Union’s their spectrum caps. (December 14, 2015) totaltele.com [ITU’s] deadline for analogue switch-off). The country however failed to meet the international deadline. (December 14, 2015) telegeography.com Spanish authorities are set to launch a sale of spectrum in the 2.6GHz and 3.5GHz bands in January 2016, with winning bidders expected to be named in March. South Korea Amongst the frequencies to be auctioned is a 2×10MHz South Korea’s mobile operators expect block in the 2.6GHz band which was previously owned their combined revenues to drop this by ONO – the cableco’s now owner Vodafone Spain year as mobile broadband penetration had been required to give up the frequencies to in the hyper-connected country nears ensure it remained within the legal limit for spectrum saturation point. Total revenue (fixed and mobile) from ownership. The report notes that frequencies offered the three major operators — SK Telecom (SKT), KT and in the 2.6GHz band will also include those which went LG Uplus – is forecast to decline 5 per cent this year to unsold in previous auctions. With the starting price for KRW49.5 trillion ($42 billion), the Korea Herald reported. the spectrum having been set at EUR5 million (US$5.5 The country’s mobile broadband penetration rate is now million), it is said to cover around 27 million people, or 99 per cent and the SIM penetration rate is 112 per cent, approximately 58% of the population, with locations according to GSMA Intelligence. Subscriber growth in including: Aragon, Cantabria, Castilla y Leon, Cataluna, the country has slowed over the past few years. And Ceuta, Extremadura, La Rioja, Navarra, Madrid, Melilla, regulations introduced a year ago to curb what the Murcia and Valencia. Meanwhile, a 20MHz block of regulator called “excessive subsidies” have further spectrum will be offered in the 3.5GHz band – currently contributed to the slowdown. The country’s second being used to provide fixed-wireless broadband services largest operator KT predicts its total revenue will drop – offering nationwide coverage. According to the report, 8.7 per cent this year to KRW21.8 trillion, while market Yoigo and MasMovil are among the likely bidders for the leader SK Telecom expects revenue to fall 4 per cent spectrum when it is offered, while Movistar, Vodafone to KRW17.1 trillion. Number 3 LG Uplus is forecasting Spain and Orange Espana will all be unable to bid due to almost a 3 per cent revenue fall to KRW10.6 trillion ($9 having reached spectrum holding caps. billion). SKT last month reported a 2.4 per cent drop in (December 11, 2015) Daily Expansion its Q3 revenue to KRW4.26 trillion. Mobile revenue fell 2.8 per cent to KRW2.74 trillion, due to more subscribers choosing mobile fee discounts based on their contracts, South Africa the company said. LG Uplus’ revenue peaked at $10.4 Following a complaint lodged by South billion in 2013, then fell to $10 billion last year. Looking African wireless operator Cell C, the for new growth areas, the operator is focused on Advertising Standard Authority of South strengthening its network and preparing for Internet of Africa (ASASA) has ordered Vodacom SA Things (IoT) applications, such as IoT @Home, which it to stop marketing its LTE network as ‘4G’ as it does not launched earlier this year for $6 a month. 4G penetration conform to ASA’s definition of a 4G network. Cell C argued has climbed from just under 50 per cent two years ago that a previous case, which was brought by Vodacom in to nearly 70 per cent. 4G users represented 67 per cent 2010, had considered the definition of a 4G network and of SKT’s total customers in Q3, 71 per cent of KT’s and 86 that Vodacom’s LTE network did not conform to it. In per cent of LG Uplus’, according to GSMA Intelligence. its defense Vodacom said it uses the term ‘4G’ in order (December 14, 2015) mobileworldlive.com to demonstrate its LTE network’s technical capabilities and to match what the press, handset vendors and consumers call it. The ASASA however rejected the claim Swaziland by stating that ‘to argue that network providers should The Minister of Information and use the term “4G” simply because that is what some Communication Technology Dumisani consumers believe an LTE network to be is arguably Ndlangamandla has presented 13 disingenuous, and may well add to confusion, rather draft telecommunication legislations than clarify it’. The authority said that Vodacom has to to the Council of Ministers, which will be discussed in withdraw the 4G logo with immediate effect and may parliament in February 2016 before being enacted into not use it again in future, unless adequate substantiation laws, Agence Ecofin reports. The updated telecoms has been submitted and a new ruling issued. regulations will reportedly provide for the opening

(December 21, 2015) TechCentral of the mobile sector to competition and ending MTN Swaziland’s monopoly in the market. Under the new regulations, the government is planning to grant a 10- South Africa is now gearing to initiate the country’s year non-exclusive concession to any telecoms operator

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who wants to offer mobile services in Swaziland. expecting to surpass the three million miletone by Selected companies will also pay the government 5% the end of the year. Rounding out the market are Asia of their net operating profit as royalties. In November Pacific Telecom, which had around 500,000 LTE-based 2014 it emerged that work on developing the regulatory customers at end-October 2015, and aims to boost this framework for a new mobile license in Swaziland was to between 700,000 and 800,000 by year’s end, and underway, with Viettel-backed start-up Swavitel said to Taiwan Star Cellular, with around 400,000 (target of half have submitted an application for the concession. Stan a million by end-2015). (December 2, 2015) Digitimes Motsa, acting chief executive officer of the Swaziland Communications Commission (SCC), said at the time: ‘We are drafting the legislation with help from experts Thailand provided by the International Telecommunication Union True Corp, Thailand’s third largest (ITU), as well as local stakeholders within the country’s cellco by subscribers, and Jas Mobile communications sector.’ Further, Motsa added that, if Broadband (Jasmine), subsidiary of granted permission, Swavitel would utilize the Swaziland Jasmine International (the parent of Thai Post and Telecommunication Corporations’ (SPTC’s) fixed network operator Triple T Broadband), have both backbone infrastructure. (December 16, 2015) telegeography.com secured 900MHz spectrum in Thailand’s 4G auction, with bids totaling THB151.95 billion (US$4.2 billion). Thai PBS reports that the auction was completed on December 18 Taiwan when no bids were submitted at the start of the 199th National Communications Commission round, leaving the highest bids of the 198th round to win; (NCC) will seek administrative instruction as such, market newcomer Jasmine will pay THB75.654 from the Executive Yuan regarding what billion for 2×10MHz of spectrum in the 895MHz- to do when 2G licenses expire in June 905MHz/940MHz-950MHz band, while True is set to pay 2017, according to the Taipei Times. Data produced by THB76.298 billion for 2×10MHz frequency allocation the regulator revealed that as at 25 November there in the 905MHz-915MHz/950MHz-960MHz band. The were just 1.25 million 2G subscribers left in the country winners beat two other participants – Advanced Info across all operators, with the bulk of those signed up to Service (AIS) and Digital Total Access Communication Chunghwa Telecom. NCC spokesperson Yu Hsiao-cheng (DTAC). Shares in the four bidding telcos fell to a three- was cited as saying that NCC is aware operators are year low as the auction ended, amid concern at future keen to consolidate spectrum currently being used to costs and competition in the sector. Jasmine shares fell serve 2G subscribers into the ‘C6’ block in the 1800MHz 16.3%, while True stock dropped 8.2%. AIS and DTAC band, which is not being used at the moment. However, shares, meanwhile, fell 10.3% and 14.5%, respectively. existing regulations means that there will be issues in (December 21, 2015) reuters.com doing so; as such, Yu noted: ‘We will see if the Executive Yuan has any instructions regarding this issue.’ Telecoms regulator has been given clearance to auction (December 17, 2015) telegeography.com off two licenses holding 900Mhz radio spectrum. The auction had been in doubt due to concerns whether Taiwan’s auction of spectrum in the 2.6-GHz band the regulator had the authority to carry out the auction has drawn to a close after 142 rounds, raising 27.93 on behalf of the military controlled government. The billion Taiwanese dollars (€775 million), the country’s state owned TOT had queried the regulator’s authority telecom regulator announced earlier this week. The to carry out the auction, mainly as the spectrum being final total was 93.9% higher than the reserve price, the sold is currently held by that mobile network. The National Communications Commission (NCC) revealed mobile network operator had hoped to retain the 20 in a Chinese-language statement on its Website. Four MHz of spectrum, which is currently leased to AIS under companies picked up six lots of spectrum. The biggest a concession agreement which expired at the end of spender was Chunghwa Telecom, which successfully bid September. The government however ruled that the NT$9.96 billion for two blocks, while rival Far EasTone spectrum has to be surrendered back to the regulator also acquired two blocks for NT$9.13 billion. Taiwan for it to be sold. The NBTC expects the sales of the Star and Asia-Pacific Telecom won one lot each, paying two licenses on the 900-MHz spectrum might reach a NT$6.62 billion and NT$2.23 billion respectively. The combined 60 billion baht. (December 16, 2015) cellular-news.com other participant, Taiwan Mobile, dropped out of the contest a couple of weeks ago. The NCC explained that National Broadcasting & Telecommunications the final total was reached after 140 rounds of bidding. Commission (NBTC) has formed a plan to reallocate In accordance with auction rules, the contest was spectrum for cellular services in the 1500MHz band stopped after two more rounds in which no new bids currently used by state-run telco TOT and oil company were lodged. (December 9, 2015) totaltele.com Chevron Thailand. TOT uses 35.15MHz of the frequency for rural telephone and signal transmission services, More than ten million mobile subscribers in Taiwan have while Chevron uses 56MHz for its operations including now signed up to a 4G service figures produced by surveying and petroleum production divisions. TOT has local telecoms regulator the National Communications informed the ICT Ministry of its plan to provide mobile Commission (NCC). According to the watchdog, as at the phone services in the 1500MHz range. Thanapant end of October 2015 there were a total of 10.087 million Raichareon, Deputy NBTC Secretary General, explained 4G customers in the country, representing a population that Thailand and ten other countries had supported penetration rate of 43.8%. Overall mobile market leader the standardization of the 1500MHz band or telecoms Chunghwa Telecom also tops the table in terms of LTE- services during the World Radiocommunication based accesses, with it reportedly having 3.84 million Conference in Geneva, Switzerland, last month. The such subscribers on its books at the end of October, NBTC expects that it will take four years to refarm the while it aims to increase this to 4.40 million by end- spectrum. (December 11, 2015) The Nation 2015. At that date, Far EasTone and Taiwan Mobile were separated by a narrow margin, with 2.78 million and 2.64 million 4G subscribers, respectively, with both operators

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Thailand’s second-largest cellco by users Digital Total delay commencing the auction process’. The regulator Access Communication (DTAC) is now free of legal has not yet rescheduled a date for the spectrum auction. restrictions on its expansion of 2100MHz 3G W-CDMA/ (December 4, 2015) telegeography.com HSPA+ network coverage after the country’s Supreme Administrative Court revoked an injunction order which had been in effect since May, the Norwegian- OFCOM put a halt on a planned spectrum auction until backed operator has confirmed. Thailand’s Central an EC decision on Hutchison 3 UK’s proposed merger Administrative Court previously issued the injunction with Telefonica’s O2 UK, following complaints from the stopping DTAC from installing or connecting any two companies. In a statement, the regulator said it had further 2100MHz equipment to base stations subject received letters from both objecting to the planned to arbitration decisions regarding their ownership – a auction of 2.3GHz and 3.4GHz spectrum next year, a consequence of DTAC’s original build-transfer-operate process due to commence this month. OFCOM said (BTO) operating concession issued by state-owned CAT both Telefonica UK and Hutchison stated “their intention Telecom. CAT cannot appeal the apex court’s latest order to bring judicial review proceedings against OFCOM’s reversing the lower court’s decision. decision to commence the auction process before the outcome of the EC’s consideration of the processed (November 30, 2015) telegeography.com merger between those two companies”. The regulator said it will now not commence the auction process “until the EC has taken its decision” regarding the processed Togo merger, which is “expected no later than mid-May 2016”. Telecoms Regulator, the Authority of Posts It said it will also wait until a decision is made regarding and Telecommunications Regulation BT’s proposed £12.5 billion deal to acquire EE, currently (ART&P) has set a ten-day deadline – being scrutinized by the UK’s competition and markets starting November 25 – for anyone who authority (CMA), although this process is expected to be has yet to register their SIM card to do so, or have their completed early next year. OFCOM said it took the initial service disabled. ART&P is implementing the measure decision to launch the process before the end of the year under Decree No. 2011-120/PR, which establishes because it “recognized the demand for this spectrum and mandatory identification of all subscribers using mobile took the view that spectrum efficiency is best achieved telecoms services in Togo. Adopted in 2011, Decree No. by bringing available frequencies into use as soon as 2011-120/PR is intended to clamp down on handsets possible”. Objections from both O2 UK and 3 UK are being used for illegal activity. Four years after it came seemingly a representation of a lack of knowledge as to into force, however, many users still remain unidentified their spectrum requirements going forward, whether or – something the watchdog is looking to change. Mobile not the deal goes through. The planned auction, which operators Togo Cellulaire (Togocel) and Atlantique will see some 190MHz made available in the two bands, Telecom (Moov) have been asked to ensure that all their is being freed up by the Ministry of Defense, as part of a customers are informed of the deadline. wider plan to free up public sector spectrum.

(November 30, 2015) telegeography.com (December 3, 2015) mobileworldlive.com

The government has set aside £550 million to compensate the current occupiers of the 700 MHz United Kingdom band, including Digital Terrestrial Television (DTT) Telecoms regulator OFCOM has broadcasters, as it opens up more spectrum for mobile announced a delay to the auction of broadband. The figure was revealed in the government’s spectrum in the 2.3GHz and 3.4GHz bands. Autumn Statement delivered by George Osborne, the In October 2015 OFCOM unveiled details Chancellor of the Exchequer, and will be spent over the of its planned frequency auction, which had been due period of the next parliament, which runs until 2020. In to take place early next year. A total of 190MHz of high- November 2014, telecoms regulator OFCOM published capacity spectrum is to be offered across the 2.3GHz and a consultative document in which it estimated the 3.4GHz bands as part of a wider government initiative to economic cost of emptying the 700 MHz band. Its figure free up public sector spectrum – made available by the was similar to the government’s (between £550 million Ministry of Defense – for civil uses. With the frequencies and £660 million). The OFCOM document specified three ‘particularly suited for high-speed mobile broadband main costs. Firstly, there will be extensive modification services, because they can carry large amounts of of DTT transmission infrastructure for broadcasters. data’, OFCOM at that date set a reserve price of GBP70 In addition, there will be a cost for consumers, as a million (US$107 million), with no cap on the amount of proportion of UK households (about 100,000) will need spectrum any one company can acquire. In a statement to replace their DTT aerials. An even smaller proportion confirming the delay to the sale process, OFCOM cited might need to fit a filter to their TVs to prevent mobile the fact that the Competition Market Authority’s (CMA’s) phone signals from interfering with TV reception. Finally, decision on the proposed merger between BT and EE many audio program makers and special events (PMSE) is expected next month; while a ruling by the European users, who specialize in live coverage including concerts, Commission (EC) on a tie-up between O2 UK and will need to change wireless microphones as they shift Hutchison 3G UK (Three UK) is due by mid-May 2016. to new radio frequencies, as well as train or recruit more The watchdog noted that last month it received letters engineers. The government will compensate the various from both O2 UK and Three UK stating their respective users who are impacted by the freeing up of 700 MHz. intentions to bring judicial review proceedings against However, the OFCOM document also sounded a brighter OFCOM’s decision to commence the auction process note. It estimated that additional mobile broadband before the EC makes a decision on the O2/Three merger. frequencies will bring benefits to the UK of £900 million In light of this, and after ‘careful consideration’, OFCOM to £1.3 billion because they enable operators to meet said that ‘given these specific circumstances, we have increasing demand at a lower cost than would otherwise decided for reasons of good public administration to have been the case. (November 26, 2015) mobileworldlive.com

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United States Uzbekistan The Federal Communications Commission Uzbekistan plans to carry out nine large wrote to AT&T and T-Mobile US asking for investment projects focused on internet more information about their packages expansion by 2020. The projects have that offer free data to users, also known been included in the special program as zero rating. In addition to the two mobile operators, on ICT development for 2015-2019 signed by the the regulator also wrote to cable operator Comcast Uzbekistan President. The investment in the projects about its live streaming service delivered over a fixed totals US$ 883.7 million. The list includes the expansion network. FCC chairman Tom Wheeler said the letters of HSPA+ and LTE networks, fixed and wireless networks, asked the three operators “to come in and have a the development of backbone and multi-service data discussion with us about some of the innovative things transmission networks, the deployment of fiber-optic that they are doing.” However, Wheeler emphasized the lines, the introduction of new multimedia-based services FCC is not conducting an investigation but more of a and creating conditions for content development. The fact-finding mission. He recently give the all clear on amount of broadband ports is planned to increase by net neutrality grounds to T-Mobile’s Binge On service, 120 percent, and the data transmission speed to grow which waives data charges for certain video streaming 20-fold. (December 1, 2015) gazeta.uz services, although with the caveat he would keep his eye on it. Binge On was only launched recently but AT&T has offered sponsored data for longer. Its packages allow Venezuelan content providers to subsidize users’ wireless data. This Thousands of Venezuelans have taken means users can stream specific content from sponsors to the streets of the capital Caracas without it coming out of their data allowance. AT&T is and several other cities to display thought to have signed up at least six partners for its support for the workers of state-owned sponsored data service. The letter to AT&T has the air telecommunications company CANTV after it was of the FCC looking for more information rather than a threatened with re-privatization by opposition politicians, formal inquiry. “As you may be aware, concerns have who, following recent elections, will hold a two-thirds been expressed about these programs, for example, majority of the National Assembly from January 5, 2016. some have argued that sponsored data unfairly Telesurtv.net reports that in a rally attended by CANTV advantages incumbent content providers,” the letter to President and Minister for Science & Technology Manuel AT&T said, quoted by Reuters. “We want to ensure that Fernandez, workers and supporters of the full-service we have all the facts to understand how these services telco/broadcaster gathered at CANTV’s headquarters relate to the commission’s goal of maintaining a free and released a statement rejecting the ‘destabilizing’ and open Internet while incentivizing innovation and plans of the opposition. CANTV was nationalized in May investment from all sources,” it adds. The operators have 2007, since when it has ramped up efforts to provide until January 15 to respond. (December 18, 2015) mobileworldlive.com affordable fixed line, broadband, mobile and TV services to rural, disadvantaged and underserved sections of the population under socialist policies. Ill-fated US wireless start-up LightSquared has announced that the Federal Communications Commission (FCC) has (December 16, 2015) telegeography.com approved its ‘Change of Control’ application, paving the way for the company’s emergence from Chapter 11 Zimbabwe bankruptcy protection. LightSquared says that the FCC ICT, Postal & Courier Services Minister grant represents a ‘significant milestone’ for the company, Supa Mandiwanzira has defended the as it will now provide notice to the US Bankruptcy Court Zimbabwean government’s move to take for the Southern District of New York, signaling the control of struggling mobile network effective date of its confirmed Plan of Reorganisation, operator Telecel, saying the state is looking to turn the enabling it to successfully exit restructuring. The business around and make it profitable. State-run ISP company originally filed for bankruptcy protection in Zarnet has paid US$40 million to acquire a 60% stake in May 2012 and its reorganization plan was confirmed by Telecel from Global Telecom Holding, which is itself 51.9% Judge Shelley C. Chapman on 26 March 2015. CEO Doug owned by Vimpelcom. Mandiwanzira has confirmed that Smith commented: ‘We are very appreciative for today’s Zarnet is now looking to buy the remaining 40% of Telecel FCC action, which will allow LightSquared to begin anew which is held by Empowerment Corporation, a group of and recommit to work with all stakeholders to resolve domestic investors. The minister told local newspaper important technical matters, identify necessary solutions, The Standard that there are no plans to combine Telecel and remove regulatory uncertainty that the company with the country’s other state-run mobile operator, has faced over the past three-and-a-half years’. In NetOne, saying that they should remain competitive in February 2012 the FCC declared that LightSquared’s use order to challenge the market leader, privately owned of non-traditional frequencies in the 1.4GHz and 1.6GHz Econet Wireless. The operator lost second position in bands interfered with GPS satellite navigation devices the wireless market to state-owned NetOne in 2014, and and aircraft flight safety equipment. Subsequent months claimed around 1.94 million subscribers by the end of saw the stricken company beset with myriad financial June 2015, behind NetOne’s 3.38 million and Econet’s and legal problems, before being forced into bankruptcy 6.63 million. (December 1, 2015) telegeography.com in May 2012. Prior to its regulatory woes, LightSquared sought to build out a nationwide hybrid-LTE network using terrestrial and satellite spectrum capacity.

(December 8, 2015) telegeography.com Javaid Akhtar Malik Regulatory Affairs SAMENA Telecommunications Council

“Information contained herein has been obtained from sources, which we deem reliable. SAMENA Telecommunications Council is not liable for any misinformed decisions that the reader may reach by being solely reliant on information contained herein. Expert advice should be sought.”

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wholesale NEWS

KPN ordered to offer Vodafone sued KPN for €115 million, claiming that the incumbent was slow wholesale services for to provide the technology it needed to three more years launch a DSL-based triple-play service, resulting in a three-year delay that caused KPN must continue to provide rivals Vodafone to miss out on market growth. wholesale access to its fixed networks for the next three years, the Dutch competition regulator ruled this week. Wholesale serves up The Netherlands currently has two major network operators – incumbent Ethernet over HFC product KPN and cableco Ziggo – which is not enough to ensure healthy competition, for carrier customers WHOLESALE the Netherlands Authority for Consumers Wholesale may be an advocate of fiber- and Market (ACM) said on Thursday. The based services, but being a traditional Updates watchdog said technical challenges make cable operator it is now tapping into it difficult to open Ziggo’s network to its HFC (hybrid fiber-coax) network to rival service providers, which leaves KPN deliver an Ethernet over HFC service to as the only viable option. “Furthermore, customers in its network area. A particular KPN is stronger than Ziggo because target for this service will be service of its position in the business market. provider customers that need to fulfill One explanation for this is that many connections for multisite off-net business business parks only have a KPN network. customers. It can also be used to fulfill Customers in such business parks are branch, remote offices and even small to unable to choose Ziggo,” said ACM medium sized businesses within a metro board member Henk Don, in a statement. area. As an MPLS-based service, the “Access to KPN’s network is sufficient for EoHFC product offers carrier customers making competition possible,” he insisted. a range of symmetrical speeds of 3, 5 “This will result in increased competition and 10 Mbps, and supports traditional in the Dutch telecom sector, and in better Ethernet topologies such as Ethernet Line prices.” The new regulatory regime is due (E-Line) and Ethernet LAN (ELAN). It also to come into force on January 1, 2016. provides interoperability with fiber‐based KPN already provides wholesale access Ethernet access. Has priced the EoHFC to its network, of course; however, some service as an nxT1 option, with service customers are not happy with some installation in 30 days or less upon order. of the services they receive. Last week, Wholesale may be an advocate of fiber-

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based services, but being a traditional increased its EBITDA guidance for the Labs. The East Africa Data Centre, cable operator it is now tapping into 2016 financial year to NZ$580 million- which is part of The Liquid Telecom its HFC (hybrid fiber-coax) network to NZ$600 million, up from NZ$546 Group, was also shortlisted in the deliver an Ethernet over HFC service million, as a result of the decision. global category of Best Data Centre. to customers in its network area. A “We have consistently said that the Nic Rudnick, Liquid Telecom’s CEO, was particular target for this service will previous draft prices significantly also one of five executives recognized be service provider customers that underestimated the true value of for their contribution to the telecoms need to fulfill connections for multisite Chorus’ network, so it is pleasing that industry and described as a leader in off-net business customers. It can the Commission has taken on board driving connectivity to inland Africa. He also be used to fulfill branch, remote the industry’s repeated requests and was also recently named as the most offices and even small to medium used some of the real world costs of powerful and influential person in the sized businesses within a metro area. building a network,” said Chorus CEO African telecoms industry by Global As an MPLS-based service, the EoHFC Mark Ratcliffe. However, he noted Telecoms Business magazine. Nic product offers carrier customers a that Chorus is disappointed that the Rudnick said “We are an ambitious and range of symmetrical speeds of 3, 5 Commission elected not to backdate innovative organization determined to and 10 Mbps, and supports traditional the price hike. Its disappointment continue investing in and improving Ethernet topologies such as Ethernet is likely less than that felt by retail telecoms in Africa because we believe Line (E-Line) and Ethernet LAN (ELAN). provider Spark, which described the that every individual has the right to It also provides interoperability with new price limit as “the worst possible be connected. Recognition by our fiber‐based Ethernet access. Has priced Christmas present for New Zealand peers is always appreciated by me and the EoHFC service as an nxT1 option, consumers and businesses.” The telco the entire Liquid Telecom team.” The with service installation in 30 days or insisted that the move will affect the Global Carrier Awards have become less upon order. prices paid for services by end-users. the biggest and most prestigious “We are now also forced to increase awards event of the wholesale our retail voice and broadband pricing telecoms industry. They focus on the Chorus welcomes NZ to take into account the significantly contribution of individuals, companies increased costs now faced from higher and technology partners that have wholesale pricing move, regulated Chorus line charges,” said excelled in the use, development Spark complains Spark New Zealand managing director, and deployment of carrier services in Simon Moutter. Spark claims that the the past 12 months. The awards are New Zealand’s Commerce Commission new prices mean New Zealanders independently judged by a panel of on Tuesday published its final decision will pay almost double the median telecoms analysts, industry experts and on wholesale broadband prices, the regulated line charges in other the senior editorial team of Capacity figure coming in higher than the one comparable countries, warning that magazine. proposed in the summer, news that regulated charges for the Chorus was welcomed by network operator copper network now exceed those for Chorus but lamented by incumbent entry-level plans on fiber. “The massive operator Spark. Effective Chorus 3 Denmark signs national swings in successive Commerce can charge NZ$41.19 per month for Commission decisions within a matter roaming deal with Telia wholesale copper broadband, made of months makes it extremely hard for 3 Denmark has signed a new wholesale up of NZ$29.75 for unbundled copper any business to invest, plan and price roaming agreement with Telia, local loop (UCLL) and NZ$11.44 for its services effectively,” Moutter said. replacing its previous deal with TDC. unbundled bitstream access (UBA). “We have now had two years of market The agreement gives 3 access to 3G The new prices are on a glide path and disarray, with significant fluctuations at data roaming, which was not part of will increase slightly over the next five every stage of the process. The losers the TDC deal, as well as 2G and 3G years to reach NZ$42.35 (see chart). out of this are New Zealand consumers voice. Telia and 3 said they expect the The new figures are several dollars and businesses.” national service to be implemented by higher than the NZ$38.43 per month the end of February 2016. Roaming will the Commission proposed in July and be available to 3’s customers anywhere some way above the current price its own network does not cover, and of NZ$34.44. However, they remain Liquid Telecom named they will be switched automatically below the NZ$44.98 Chorus was able Best African Wholesale to the Telia 2G or 3G network to charge prior to December 2014. when needed. 3 is in the process of “Significant changes, such as the need Carrier for third year completing its own network expansion. to increase the amount of trenching running Its 4G network is expected to reach 88 required to physically lay the network Liquid Telecom was named Best African percent of the population by year-end, and adjusting the make-up of fiber Wholesale Carrier for the third year while the 3G network is getting more and fixed wireless connections, led running, beating stiff competition from sites, particularly in the 900 MHz band, to the final price rising,” telecoms Bharti Airtel, Internet Solutions and to boost indoor coverage. Telium commissioner Stephen Gale said. WIOCC. The company also took home claims 99 percent outdoor coverage “This has been partially offset by other the award for Best African Project for for 3G, helped by its network-sharing changes, including a decrease in the its work in building the East Africa agreement with Telenor. allowed rate of return for Chorus due Fiber Ring, after being shortlisted to the fall in interest rates since July, alongside projects from AMS-IX, and the removal of vacant properties Infinera, Ooredoo and World Telecom from the model,” he added. Chorus

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Telstra backtracks on the operators to review the terms through Open Access Network. FTTH of their two-year contracts, which Mobily, Sahara Net and Shabakah Net proposed data roaming automatically are renewed with high are going to provide smart city services hike termination fees. And in May operators for the residential and industrial areas were required to unlock SIM cards on at Yanbu industrial city. The signing Australia’s largest operator backtracked handsets that customers keep for ceremony for these agreements was on a plan to triple excess data roaming more than six months. The operators held in the presence of the Chief fees and its recent introduction of a have insisted that they are meeting Executive Officer of Royal commission flat-rate charge for paper bills. Telstra consumer needs by introducing for Jubail & Yanbu Dr. Alaa Bin Abdullah CEO Andy Penn (pictured) said in a affordable new plans, Japan News said. Nassif; also in attendance were Dr. Akil blog post: “Good leadership means Al Akil the General Manger of Bayanat recognizing when it is right to change company and Omar Al Rasheed the decisions because it is the right thing Arcep proposes increase Executive General Manger for the for our customers.” The operator said Mega projects in Mobily. Dr. Nassif it is scrapping a controversial proposal in wholesale access in said that the agreement will help to increase the excess data fees on its 2016/17 provide the internet services for 1,500 Travel Pass roaming packages from housing units in Yanbu industrial city; French telecoms watchdog, the AUD0.03 to AUD0.10 per MB ($0.072) it will also provide modern digital Regulatory Authority for Electronic or about AUD100 per GB. Penn said environment conducive to creativity, Communications and Posts (Autorite price increases are often necessary learning and provision of improved de Regulation des Communications and understands why his teams made health services ensuring sustainable Electroniques et des Postes, Arcep), the changes, “but they didn’t sit well environment for the residents of the has launched a public consultation with me; customers clearly told us the industrial city. He added that the Royal on a proposed increase in the tariffs same, so it’s my responsibility to act on Commission in Yanbu is seeking to for access to Orange France’s fully behalf of our customers”. The operator convert the industrial city of Yanbu unbundled lines over the next two also backed down from a move to to Smart City by upgrading the basic years, in a bid to bolster market liquidity charge a flat rate of AUD3.20 on paper infrastructure of the city; this is being and investments in next generation bills received by mail or paid over the accomplished by building a 3000 fixed access networks. Under the draft counter. It will now charge AUD2.20 to km long fiber network utilizing state proposal, the incumbent telco will start receive a paper bill and AUD1.00 for an of the art international equipment, charging EUR9.10 (USD9.63) a month over-the-counter payment. It will give with capacity to accommodate future per fully unbundled access line from customers charged the AUD3.20 fee a expansion of the residential area, 2016 (up from the EUR9.05 currently rebate where applicable. heavy and light industries area and charged), with the monthly tariff various businesses. In addition to this, set to increase to EUR9.45 in 2017. two fully equipped data centers are Meanwhile, the regulator proposed Japanese ministry being established equipped with latest that the price for wholesale line rental hardware and software to provide pushes for lower tariffs, (WLR) must not exceed its current level secure host services to businesses in (EUR12.32) in 2016 and 2017. Arcep more choice the vicinity at competitive rates. Dr. Akil, has invited all interested parties to expressed satisfaction on the ability Japan’s government plans to put submit their comments by 4 January of Bayanat to complete and deliver pressure on the country’s three major 2016. Arcep also said that the price the project and maintaining optimal mobile operators to reduce mobile cap marks a first step towards ‘more quality standards. He termed Bayanat tariffs and give customers a wider substantial changes’ to the country’s a strategic partner to the Kingdom variety of data plans, the Yomiuri regulatory framework. The next round in general and Royal Commission of Shimbun reported. The Internal Affairs of analysis for broadband and superfast Yanbu in particular for development and Communications Ministry is broadband markets, scheduled to be and implementation of Smart looking to prohibit handset subsidies carried out in 2017-2020, will include Cities, which will lead to significant and ask operators to use the money the planned phase-out of the switched socioeconomic development in the they save to reduce charges. Under network and accelerated transition to Kingdom. Bayanat team has already the new plan, the ministry aim to superfast access. To that end, Arcep completed and announced the roll- establish guidelines, based on the is planning on opening a broader out and implementation of the Telecommunications Business Law, consultation in 2016, with a view to network infrastructure based on the by February and urge operators to establishing a second set of price caps Strategic Partnership Agreement start reducing tariffs in the spring. for the period from 2018 to 2020. Average data usage is 1.9GB a month, with the Royal Commission, based on yet the data plans offered by all three build-operate-transfer (BOT) model. operators – NTT Docomo, KDDI and Bayanat signs wholesale The purpose is to enable other Retail SoftBank – start at 2GB, which doesn’t Service Providers to utilize the robust cater to low-data users. Minister Sanae agreements to develop platform developed by Bayanat team Takaichi said it would be appropriate for provision of necessary services for users to have the choice of 1GB of Yanbu as the first Smart to the customers in Yanbu area. This data, Japan News reported. Tokyo had City in KSA marks first implementation of such fair and just model for all Retail and the fourth highest mobile data rates Etihad Etisalat’s data subsidiary, Bayanat Internet Service Providers through out of seven major cities around the has signed wholesale agreements with Open Access Network in the Kingdom. world in 2014, according to research by three different Retail Service Providers the ministry. In July the ministry asked to serve the community in Yanbu

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Technology NEWS

NEC and Intel Collaborate pleased to extend our collaboration in Network Functions Virtualization (NFV) in Mobile Base Station to mobile base stations,” said Nozomu Virtualization Watanabe, General Manager, Mobile Radio Access Network Division, NEC NEC says that it is to collaborate with Corporation. “Looking forward, NEC will Intel to jointly develop a “Cloud Radio further strengthen its relationship with Access Network (Cloud RAN) solution” Intel for the advancement of NFV, which for virtualizing the functions of mobile is the core technology supporting 5G and base stations. Both companies will start other forms of next generation wireless a joint proof of concept trial from early communication.” 2016 to verify the capabilities of the Cloud-RAN solution. Mobile base stations Technology are comprised of a Digital Unit (DU) that NetCom and Huawei handles data processing and a Radio Unit Updates (RU) that sends and receives radio waves. demonstrate ‘LTE- The Cloud-RAN solution separates the DU functions from mobile base stations, Advanced Pro’ technology and enables the functions to be run on NetCom, the Norwegian arm of general-purpose servers equipped with TeliaSonera, has partnered with Chinese Intel’s multi-core processors. This makes vendor Huawei on the demonstration of it possible to centralize the DU functions, what the latter has claimed is ‘the world’s allowing for multiple units of the RU to first trial of LTE-Advanced Pro’ technology be centrally controlled from one general- – also referred to as ‘4.5G’ – over a live purpose server. The solution improves commercial network. With the technology the communication performance of pilot having been conducted in Oslo, mobile base stations through more a vendor’s press release said it was an precise control of radio interference ‘important milestone towards next year’s between the RUs, while cutting down expected commercial availability of 4.5G’. on power and space consumption by To achieve the downlink speeds of around consolidating the DU hardware. This 1Gbps shown in the demonstration, four in turn contributes to a reduction in frequency bands (800MHz, 1800MHz, the Total Cost of Ownership (TCO) of 2100MHz and 2600MHz) were used base station equipment. “We have been simultaneously. On the back of the working with Intel on the virtualization trial Huawei has said it expects that the of mobile core networks and customer commercial deployment of 4.5G among premises equipment (CPE) and are very

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operators will start from 2016. Macao (73.7 Mbps); Romania (72.9 two partners will promote training Commenting on the demonstration, Mbps); Israel (70 Mbps); and Sweden in Cambodia and support the city’s NetCom CEO Abraham Foss was cited (69 Mbps). The U.S. was 21st globally, development as a hub for ICT in as saying: ‘This is the future mobile with a peak average in Q3 2015 of 57.3 the country. Furthermore, HAINA network for the new generation Mbps, up 18% year-over-year, and up programs will also help ICT university telecommunications companies. 14% quarter over quarter. Akamai students to fill the gap between TeliaSonera is an innovative company also tracks adoption by speed levels, theory and practice and master that will always strive to be in front of including 25 Mbps, the FCC’s current required skills. Under the partnership, the development, and we are proud to downstream benchmark for what’s Huawei also set up an ICT laboratory cooperate with Huawei in Norway to considered “broadband.” Globally, to provide students with opportunities develop and test this new technology. 5.2% of unique IP addresses connected for hands-on exploration of the latest Our vision is to bring the world closer to Akamai at average connection cloud computing and networking on the customer’s terms, and we will speeds of at least 25 Mbps, up 6.3% technologies. Wang Xiaofeng, drive the digitalization and create versus the previous quarter, led by president of Learning Service value for both our customers and South Korea (24%), Sweden (19%) and Department Huawei Globle, said society.’ Norway (16%). The U.S. was not in Huawei is honoured to collaborate the top 10 in the 25 Mbps category, with NIPTICT to equip students with but Washington, D.C., was tops in up-to-date ICT knowledge and skills 15% of World’s the nation, with 22% of connections that will nurture the next generation of providing average speeds of at least ICT leaders in Cambodia. Huawei has Broadband Deemed 25 Mbps in Q3 2015, followed by now extended its HAINA program to ‘4K-Ready’ Delaware (17%), Utah (14%) and more than 130 universities worldwide. Massachusetts (13%.) Akamai also mobileworldlive.com Global broadband speeds experienced continued to track adoption of IPv6, some ups and downs in Q3 as average a more massive IP addressing scheme connection speeds rose versus the that enters play as the pool of IPv4 previous period along with a small TeliaSonera claims addresses runs dry and amid the decline in average peak speeds, growth of the so-called Internet of “world record” with 4.5G according to Akamai’s latest State Things. of the Internet Report. Akamai also pilot found that 15% of the world is “4K TeliaSonera said Netcom, its ready,” the classification Akamai Norwegian unit and a 4G pioneer, assigns to broadband connections Huawei Opens ICT reached “world record” download that pump out at least 15 Mbps. Training Centre in speeds of up to 1Gb/s in Oslo, using That 4K-readiness figure, which is technology dubbed as 4.5G and becoming more important as Netflix, Cambodia officially known as LTE Advanced Amazon and MVPDs look to expand China’s Huawei and Cambodia’s Pro. 4.5G has been heavily promoted their 4K streaming libraries, is up from National Institute of Posts, by Huawei and the Chinese vendor 5.3% in Q3 2014, according to Akamai. Telecommunications and Information provided the infrastructure for In Q3, global average connection Communication Technology (NIPTICT) TeliaSonera’s outdoor pilot. The speeds rose 14% year-over-year, to have opened a Huawei Authorized technology has been claimed to 5.1 Mbps, but only rose 0.2% versus Information and Network Academy bridge the gap between 4G and 5G the previous quarter. South Korea (HAINA) in the country. “The opening and standards body 3GPP officially (20.5 Mbps) was tops in that category, of the HAINA is a new achievement approved it in October, giving it the though down 19% year-on-year. for NIPTICT,” Cambodian Post and moniker LTE Advanced Pro (read more Rounding out the global top 10 for Telecommunication Minister Prak on the move here). Huawei has already average connections speeds were: Sokhonn said, adding “It will facilitate announced 4.5G trials with China Sweden (17.4Mbps); Norway (16.4 students in the study, research, and Mobile, Japan’s SoftBank and Hong Mbps); Switzerland (16.2 Mbps); Hong development of telecom and ICT in Kong’s HKT. It claims 4.5G will reduce Kong (15.8 Mbps); Netherlands (15.6 Cambodia.” According to Huawei, the latency from the current level of about Mbps); Japan (15 Mbps); Finland (14.8 Mbps); Latvia (14.5 Mbps) and Czech Republic (14.5 Mbps). The United States, which placed 16th globally, produced a 12.6 Mbps average, up 9.4% from the year-ago quarter, and up 7.3% versus Q2 2015. With respect to average peak connection speeds, the world averaged 32.2 Mbps in Q3 2015s, down 0.9% versus Q2 2015, but rose 30% year-over-year. Singapore, with a peak average of 135.4 Mbps, led the way, followed by Hong Kong (101.1 Mbps); South Korea (86.6 Mbps); Japan (78.4 Mbps); Taiwan (77.9 Mbps); Qatar (75.2 Mbps);

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40ms to 10ms and provide the peak of high energy-efficient solutions in trials being run in San Francisco, New speeds of 1Gb/s as touted in today’s Orange’s infrastructures to achieve York and Boston next year, although TeliaSonera announcement. “This our 2020 objective of reducing CO2 for ‘most’ Verizon users, it will be is an important milestone towards emissions per customer-usage by 50%,” 2017 before they can experience 5G – next year’s expected commercial said Mari-Noëlle Jégo-Laveissière, with ‘official commercial mass rollout’ availability of 4.5G,” noted Huawei in senior EVP of Orange’s innovation, expected to take place during the a joint statement with TeliaSonera. marketing and technologies division, course of that year. 5G smartphones, “With the introduction of 4.5G in a statement. Among the areas however, are not likely to become technology, operators will be able covered by the agreement is research widely available until 2018 at the to improve the user experience and into new components and signal earliest. ‘What 5G is, is much more support the increase of machine-to- processing algorithms that will designed for video, we call it more use- machine (M2M) communications and improve the performance of mobile case defined. It will be more point-to- the Internet of Things (IoT), as well as network power amplifiers. Orange point solutions. And you will be able new mobile Internet applications, such and Huawei will also look to network to do up to one gigabit of service over as VR glasses and drone technology.” functions virtualization (NFV) to that technology,’ he said, noting that A TeliaSonera statement added: optimize network performance. In the deployment will reduce the need “NetCom is the first operator in the addition, the companies plan to make for Verizon to roll out fibre broadband world to take the LTE Advanced Pro greater use of liquid cooling – which in a number of locations. technology out of the test laboratory is more efficient that air cooling – and and build a pilot outdoors under real conduct tests of solar and wind-based life conditions. To achieve the high renewable energy technology. “This The Transformative speed, NetCom transmitted data over innovative approach in research and four frequency bands simultaneously, development of ecosystems will assist Growth of the Enterprise and what makes today’s test special society in energy and environmental Cloud is that NetCom only used frequency transition,” said Jégo-Laveissière. Originally embraced as a more resources that are already available efficient means of managing for mobile today: 800MHz, 1800MHz, organizations’ workloads, the cloud 2100MHz and 2600MHz.” Netcom’s increasingly is transforming business 4G and 4G+ currently offer speeds 5G: Verizon targets 2017 models, according to a recent of up to 80 Mb/s and 300 Mb/s, for first commercial Verizon report (link is external). respectively. It was the world’s first Companies are leveraging the cloud operator to introduce 4G six years ago service to create new customer experiences today. TeliaSonera Norway’s CTO, Jon Lowell McAdam, Verizon’s chief and to adapt processes that could Christian Hillestad, said: “We do not executive officer, has confirmed that potentially optimize operations and know exactly which speeds the future the carrier aims to begin commercial spur growth. Verizon’s “State of the will require, but the future will require test services of its ultra-high speed Market Enterprise Cloud Report 2016” bandwidth, high speed and no delay 5G wireless services in 2017. It is (link is external) underscores key in transfers. We are preparing for understood the pilot network will trends underway in enterprise cloud that reality with LTE Advanced Pro,” be installed in Verizon’s Basking adoption and deployment that hold he added. The statement from the Ridge, New Jersey headquarters promise for businesses and consumers operator called the deployment “an in January 2016 and will involve ‘a alike, including: 84 percent say their important step towards 5G.” limited number of users’. Verizon – the use of the cloud increased over 2015. 83 percent say their company Orange, Huawei eye views IT advances energy efficient networks as “an opportunity to differentiate/ Companies research new components, disrupt and gain software, power sources in bid to market share.” Top- reduce CO2 emissions per customer ranking reasons for by 50%. Orange and Huawei this moving mission- week reaffirmed their commitment critical workloads to improving the energy efficiency to the cloud of networks. The two companies include: 88 percent have been working together to cited enhanced reduce power consumption and responsiveness CO2 emissions since 2013, and have to business needs; 65 percent said developed energy-saving features largest mobile provider in the US by it would improve operations; and for fixed and mobile networks, some subscribers – expects to realise peak 41 percent said it would help save of which Orange has begun to roll data throughput of up to 1Gbps, with money. 69 percent of organizations out. The announcement, made on McAdam quoted as saying: ‘I showed surveyed say they have used the Wednesday outlines the next steps my board the service in November’, cloud to change business processes. Orange and Huawei will take to make adding that ‘you don’t ever go to 77 percent say the cloud gives their networks greener. “This partnership a board with something that’s not business a competitive advantage, up will accelerate the implementation real’. The CEO went on to say that the from 74 percent in 2014. More than company’s 5G deployment will see

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one-third of organizations said they spent upgrading these LTE networks opportunities; however it is imperative have already used the cloud to change between 2015 and 2019. Through its for service providers to define their their business model, such as adapting model, iGR has also forecast that a role today in this growing eco-system. usage-based pricing or creating new total of $56 billion will be spent in the A fundamental question service consumer experiences. An additional U.S. from 2017 to 2025 on the build providers need to answer is what 19 percent say they are working to of 5G. (Neither figure includes any role they would like to play in this leverage the cloud in these types of operational costs.) Therefore, total new connected world. Their strategic transformative ways, and 25 percent costs for the build of the upgraded LTE choice will depend on their relevant say they see future potential for this in network and the 5G network is $104 strength and position in the market their organizations. This recent AT&T billion between 2015 and 2025. “While place as well as operating frame blog also highlights how the cloud 5G is likely to include some new air work. At an abstract level, carriers can is helping enhance the consumer interfaces, the initial deployments will focus on one, or a combination of the experience, tailoring offerings be based on future versions of the following three key strategies: based on individual preferences. For current 4G LTE networks,” said Iain Network developers: Primary focus example, cloud-based software can Gillott, president and founder of iGR. will be on core connectivity such as track customer engagement and “Based on the research conducted enterprise access, mobile broadband catalog a customer’s purchase history for the new 5G cost study and prior and device connectivity. Efficiency and so that companies can offer highly research on LTE infrastructure costs, ability to maintain service levels and targeted promotions aligned with we forecast that a total of $104 billion use case driven commercial models individual consumer preferences. By will be spent in total to upgrade LTE will be key drivers and differentiators catering to customers in this tailored and build 5G between 2015 and 2025.” Service Enablers: Will focus on way, businesses expect greater creating platforms and systems customer engagement that ultimately over which services can be created yields higher sales. “Last year, the Evolution of mobile and to which adds value. Examples news was that cloud was being used include operators offering multi-paly for mission-critical workloads, now networks for the Internet packages, IPTV or M2M platforms. enterprises are using it to transform of Things how they achieve that mission,’” said Service Creators: Will control the The emergence of IoT will bring radical (link is external) Ryan Shuttleworth, entire value chain, controlling the innovations and entirely new ways of cloud chief technology officer for connectivity, service delivery platforms delivering services across businesses Verizon Enterprise Solutions. as well as the applications, services and industries. Over the past few and content. years, an exponential growth in smartphones led by ubiquitous mobile A strategic vision needs to be Study Forecasts That broadband coverage transformed augmented with a robust execution $48 Billion Will Be telecom networks to being data strategy where besides other factors; centric networks. The evolution to network will be at the center of this Spent to Upgrade LTE in the IoT will see mobility, broadband, vision. Preparation for 5G and cloud as disruptive forces driving innovation in service delivery, network Current state of networks represent The demand for high quality efficiency, and process agility to a fragmented approach where mobile data services has increased support the commercial models services are delivered over distributed dramatically with the advent of robust emerging from the Internet of things platforms – each adding to the smartphones and tablets being (IoT) Unlike mobile broadband where overall complexity of management, used on 4G LTE networks. As mobile the prime use case was smartphones, innovation, time to market, scalability consumers’ demand continues to grow, the evolution to IoT will necessitate a and capability enhancement. Despite the question some in the industry are wide variety of use cases with varying these inefficiencies, the telecom asking is, “What is next after 4G LTE” degree of complexity to support industry found a viable business case The answer is 5G. But what exactly is varying demands of industries. To as there were few use cases to address. 5G, how much will it cost to build, and address these challenges, networks The proliferation of OTT applications when will U.S. mobile operators deliver need to bring efficiency, agility, and along with a rapid evolution of it The first 5G networks are likely to automation to a level where they consumer demands is driving services include some or all of the following: can offer viable commercial models providers in an inherent disadvantage a virtualized mobile core over which a addressing a wide spectrum of use when competing with the innovative preponderance of traffic flows, some cases encompassing many industries business models offered by these new type of “evolved” IoT (Internet of with their unique requirements and players. In addition, the evolution of Things) use case, and LTE-Advanced cost points. IoT is a rapid-growing networks will see a massive growth deployed along with new spectrum. segment and forecasts point towards in the volume of traffic over a finite In addition to analyzing the specific 30 Billion connected devices by spectrum over multiple layers of requirements and use cases of 5G, iGR 2020. Gartner predicts the IoT will technology, an unprecedented growth has created a forecast for the cost of provide a value add of USD 1.9 Trillion of devices spanning across multiple building and deploying 5G networks across all industries; making it one industries requiring a unique set of in the U.S. First of all, ­5G networks are of the largest industries in 2020. An capabilities, and innovation and speed likely to be layered on top of existing ecosystem of this magnitude means in building new services models at a and upgraded LTE networks, and iGR plenty of opportunities to explore much lower of cost points from today’s has forecasted that $48 billion will be new business models and revenue

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SAMENA TRENDS _ DEC 2015 SAMENA TRENDS _ DEC 2015 networks. The wide variety of IoT use will be a key driver for the new eco- both technologies also bring a host cases also means that the degree at system, where market will also open of benefits to the telecommunications which these capabilities are needed up for new chipset players which will service provider community. Not only will vary from industry-to-industry. become more relevant in IoT space. can these technologies help address When we look at the needs of many The devices need to be simplified in the explosive capacity demand of of these IoT use cases, we see that HW to a degree that it can achieve mobile traffic, but they can also cellular has a unique combination much lower cost levels to make it reduce the CapEx and OpEx burden of characteristics which makes it an feasible for industrial requirements. faced by service providers to handle attractive choice for IoT. In contrast LTE- Cat-0 chipset as an example will this demand by diminishing reliance with other LPWAN technologies – bring substantial cost reduction when on expensive proprietary hardware mostly working in unlicensed spectrum compared with a Cat-4. There are platforms. The recognition of these – cellular in licensed spectrum meets also discussions on Cat-M and Lite in benefits has led to the emergence a wide range of connectivity needs standards which could further drive of the NFV concept that seeks to from both technology and business down costs. This is not to discount virtualize and effectively consolidate perspective. Service providers can the requirement of 5G, as there will many service provider network leverage the unmatched global reach be an even broader spectrum of use elements onto multi-tenant industry- of the cellular access infrastructure cases – especially with critical MTC standard servers, switches and deployed over many years. Cellular where the need of 5G will be inevitable storage. The “SDN, NFV & Network also benefits from its mature eco either due of requirement of ultra-low Virtualization Ecosystem: 2015 – 2030 system of chipset vendors, device latency or high reliability, and in some – Opportunities, Challenges, Strategies makers, network suppliers, and service cases, better spectral efficiency from & Forecasts” report presents an in- providers developed over a number of what can be achieved from today. depth assessment of the SDN, NFV years. Moreover, the reliability, quality 5G is expected to start rolling- and network virtualization ecosystem of service, security, and scalability out in operator networks by 2020. including enabling technologies, key aspects of cellular technologies makes Some of the key use cases of 5G trends, market drivers, challenges, it suitable to address the IoT market. will be related to IoT and machine- use cases, deployment case studies, That said, there are still gaps that need type communication, and currently regulatory landscape, standardization, to be addressed to accelerate the a wide-array of technologies are opportunities, future roadmap, value uptake of the IoT. There are more than being positioned as contributors chain, ecosystem player profiles and 230 million existing cellular machine- to the eventual standardization. 5G strategies. The report also presents to-machine (M2M) subscriptions for networks will be multi-purpose and market size forecasts from 2015 till IoT devices, but certain challenges will support different virtual networks 2030. The forecasts are segmented for have limited the potential for large- with different characteristics through 10 submarkets, 2 user base categories, scale adoption across a variety of use network slicing – a dedicated slice for 9 use cases, 6 regions and 34 countries. cases, namely: the cost of IoT devices, remote water metering for instance. battery life, and cellular coverage in Using a common infrastructure will both remote areas and deep inside stimulate many new business models Mobile operators buildings. Since cellular technology by removing the need for separate struggle against online was mainly focused around human- infrastructure investment for different to-machine consumption, the key verticals. IoT applications will be a messaging innovations were around high big part of 5G but the future starts Online messaging apps are eating away throughput, spectral efficiency, and today. Operators need to establish into revenues from short messaging reduced latency. IoT use cases will their role in IoT using today’s networks services (SMS), causing mobile drive new performance needs from to secure that they can leverage the operators to find new ways to compete cost, coverage, capacity, latency, full potential of IoT when 5G arrives. and stay profitable. In fact, online chat battery life, and security .etc Some The first steps in this direction will applications are even challenging the of the gaps in GSM and LTE are now be to evolve current technologies to voice business of mobile operators. being addressed in 3GPP- REL 13 support various terminal devices with Telecom consultancy firm Ovum with extended coverage GSM (EC- very different characteristics. reported a 20-30% annual decline in GSM) and LTE-M being approved as SMS usage. Meanwhile, WhatsApp, study items in 3GPP Rel-13. EC-GSM Facebook Messenger, Skype, Viber will support use cases where deep Service Provider SDN and other applications or over-the-top indoor coverage, long battery life, and device cost are key drivers. This is and NFV investments to especially interesting for applications surpass $20 Billion by where massive amounts of low cost sensors are needed. Typical examples 2020 of industries with such requirements 4G-Reports‘s latest report indicates include agriculture sector, smart that service providers are expected meters, smart buildings, and other to invest over $20 Billion in (SDN similar requirements where a small Software Defined Networking) of data needs to be sent to the and NFV (Network Functions network. LTE-M could further support Virtualization) solutions by 2020. While use cases where relatively higher the advantages of SDN and network data throughputs are desired with virtualization are well known in the relatively low latency. Device cost enterprise IT and data center world,

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(OTT) services are seeing huge boosts Ericsson and Orange architecture and reduces expensive in user bases. WhatsApp alone is duplex filters, allowing for 60 percent delivering around 30 billion messages Trial Internet of Things cost reduction in comparison with every day, and WeChat in China has (IoT) over GSM and LTE existing LTE Cat 4. Extended battery doubled its user base and reached life: In partnership with Sequans, 200 million in six months. KakaoTalk Ericsson and Orange have announced Ericsson will also demonstrate is used every day by 90% of South a trial of optimized, low cost, low energy efficiency over GSM and LTE Korea’s mobile phone subscriber base. complexity devices and enhanced networks with Power Saving Mode As for SMS, India in particular has seen network capabilities for Cellular IoT (PSM) technology. The PSM feature is an 18.35 decline in usage in June 2014, over GSM and LTE. IoT is a rapidly applicable to both GSM and LTE, and according to the Telecom Regulatory growing segment and, according to supported by Evolved Packet Core Authority of India (TRAI). This is largely the Ericsson Mobility Report, there (EPC). It enables extended battery due to the increase in OTT messaging will be 28 billion connected devices life of communication modules traffic. WhatsApp, and other popular by 2021. Cellular network and device such as sensors by up to 10 years services, have put significant pressure capability enhancements are being thanks to optimized, power-efficient on mobile operators’ SMS revenue driven through the standardization operations. Thomas Noren, Vice – with over $1.5 billion in revenues process at 3GPP to meet emerging President and Head of Radio Product lost in 2014. With voice services on requirements of ubiquitous coverage, Management, Ericsson says, “IoT is Viber, WhatsApp, and other OTT long battery life and low-cost devices, an emerging market and presents applications growing in popularity, enabled through software upgrades great business potential for mobile mobile operators are seeing growing of existing networks. Improved indoor operators. Ericsson is providing the pressure on their main revenue coverage: The world-first EC-GSM software-upgrade-only solution to channel – voice revenue. While OTTs (Extended Coverage) trial will be accelerate cellular network for IoT, have not taken over the voice market, conducted in France using the 900 allowing operators to leverage their it is growing steadily. Accenture MHz band, with the aim to enhance infrastructure investments in order estimates that voice revenue will device reachability by up to 20dB to quickly capture new business drop by 2% annually in 2012-2017. or a seven-fold improvement in the opportunities now and in the future Customers are shifting towards OTT range of low-rate applications. This with 5G.” Sequans Communications apps as VoIP calls increase in quality. further extends the dominant global is the first chipset manufacturer Analysys Mason has reported that coverage of GSM in Europe and Africa to develop MTC LTE devices able 20% smartphone users now actively to reach challenging locations such as to fit with connected form factors. use VoIP services are beginning to use deep indoor basements, where many Among possible solutions, there will VoIP apps for primary voice services. smart meters are installed, or remote be sensors, smart metering, assets The numbers are nascent for now, areas in which sensors are deployed tracking, and wearables. Cellular but reflect the potential of OTTs to for agriculture or infrastructure networks optimized for IoT will be take over mobile operators as the monitoring use cases. In addition, EC- operational in 2017. primarily voice service provider. The GSM will reduce device complexity and OTT voice market remains relatively thus lower costs, enabling large-scale small in less-developed nations IoT deployments. Another advantage 2016’s key industry where network quality and internet of this technology is enablement by penetration is low. Mobile operators software upgrades of existing cellular trends: IoT hype and big are also competing with extremely networks, providing nationwide IoT data disillusionment low voice tariffs. Mobile industry coverage without additional hardware The past year has seen an increasing experts believe the growth of OTT investments. Reduced IoT device cost: need for operators to adopt new services will not create competition, In parallel, the world’s first LTE IoT trial methods, learn from their customers but will open new opportunities for in partnership with Sequans will take in the market, and provide an excellent operators to create new revenue place using low-cost, low-complexity customer experience globally. With channels. Operators need to change devices with one receive antenna demand from operators to provide how they charge consumers – with (instead of two), and half-duplex FDD customer-centric care continuing to OTT consumers currently paying for .This simplifies the device hardware internet bandwidth – but not on a per- message or call basis.3D projections, immersive video conferencing, and augmented and mixed reality displays and interfaces. Recognizing that a connected society in the years beyond 2020 will need to accommodate a similar user experience for end- users regardless of whether they are on the move or stationary, the new 5G standards aim at maintaining high quality service at high mobility, enabling the successful deployment of applications on a moving platform, such as in cars or high-speed trains.

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SAMENA TRENDS _ DEC 2015 SAMENA TRENDS _ DEC 2015 rise, 2016 will see communications Given that all of the biggest “internet of Understanding (MoU) with the service providers (CSPs) face several companies” are deep in the game, the intention to advance technology fresh challenges? Here is how CSPs connected home sector is receiving evolution towards 5G. Under the can seek to remain competitive lots of focus and is expected to be a agreement, the two companies and profitable in the midst of new hot talking point at MWC 2016. With will develop a joint understanding technological and commercial the recent introduction of Amazon’s of 5G use cases, requirements developments: After a lot of hype Echo & Buttons, Google’s Nest and and deployment scenarios, as over the past five years, and despite Apple’s Homekit each taking a slightly well as evaluate performance and serious investment by many CSPs, the different, experimental approach applicability of potential 5G key advertised benefits of big data have by to leading the way and whipping technology components. The areas and large failed to materialize, leading up hype around the connected of interest for the companies include to disappointment for everyone. This home, many smaller players will be radio and core technologies. Yoshiaki may be partly due to the fact that the rushing to the market to follow in the Uchida, Managing Executive Officer, data held by CSPs is not that great after footsteps of these giant players. With Technology Sector, Member of the all, and partly because the success of all CSPs looking to solidify a position Board, KDDI, says: “We are committed ‘traditional’ big data approaches (by in this crowded area as well, we can to providing high-quality network Google et al) assume some level of expect a wealth of M&A activity in the performance and user experience to serendipitous discovery. The CSPs, on connected home sector during 2016. address the needs and expectation the other hand, are looking more for In the western world, 2015 has seen of our customers. Through our joint answers to more specific questions, a massive increase in interest around efforts with Ericsson we will study 5G where a different approach may be the area of payments from traditional technologies and take an important called for. In 2016, this will lead to many financial institutions, Internet players step toward bringing 5G capabilities CSPs returning to more grounded and CSPs alike. Unlike mobile money to the market.” Chris Houghton, Head approaches to analytics and we will in emerging markets and previous of Region North East Asia, Ericsson, see much more talk about “small data” attempts at “e-cash” in the west, the says: “This MoU is another important or “smart data”. In practice, this means focus this time round has shifted from milestone in Ericsson’s partnership analyzing the behavior of individual a banking/government perspective, with KDDI and an opportunity for customers using almost-real-time and will not look to replace, but both companies to strengthen event data and using generalizations rather will seek to amend existing the technology foundation for the to moderate the findings against mechanisms. With a number of players evolution toward 5G. The combination trends, as opposed to trying to predict pushing their own mechanisms, 2016 of Ericsson and KDDI’s technology (or influence) individual behaviors will see banks, credit card companies, leadership will generate valuable from generalizations of the entire internet companies, CSPs and a host synergies that strengthen our research population. At a time when the IoT of other specialized players flock to and development.” (or IoE) hype in general still keeps this space, either alone or in various, rising, the relative lack of concrete sometimes not so obvious, partnership success stories in the CSP environment arrangements. Due to the rather small Alcatel-Lucent will also require a re-adjustment of overlap between systems, we may also approach. While industrial players start to see the emergence of a single, Technology to Shatter are concentrating on making their mainstream crypto currency, between Capacity Limits of respective end-to-end ecosystems now and 2020, as a potential successor viable, especially from the point of to Bitcoin. With lots of activity in this Optical Networks view of smooth deployments, CSPs space, the initial result may see major Bell Labs, owned by Alcatel Lucent with a few exceptions have been confusion in the minds of consumers has shown off an optical networking relegated to the role of providing that are trying to make sense of all the technology that could potentially access to a marginal segment of the alternative mechanisms to use. New help operators address the expansion market. In 2016, global CSP players partnerships and acquisitions should of internet traffic a real time space will continue to form partnerships and clear the field towards the end of division multiplexed optical multiple joint ventures with the major industrial 2016, hopefully allowing each market input multiple output (MIMO players, while the smaller CSPs will to converge towards a limited number SDM) system. This world’s first be looking to adopt a more focused of feasible models, both technically demonstration of the Bell Labs’ approach in locally relevant areas and commercially. pioneered MIMO-SDM technique has such as the connected home. The the potential to increase today’s 10 to few significant independent service 20 Terabit-per-second fiber capacities aggregators will either end up forming Ericsson Joins to Petabit-per-second capacity - the close partnerships with the big boys equivalent of 1,000 Terabits/s. The or will end up being acquired, possibly Forces with KDDI successful 6x6 MIMO-SDM real-time by the global software giants, some of in 5G Research and experiment using six transmitters whom still lack an offering in this space. and six receivers in combination with While the industrial side of IoT (driven Development real- time digital signal processing by vertically integrated ecosystems Ericsson has announced a 5G research was conducted over a 60-km-long across sectors including transportation and development collaboration coupled-mode fiber in Bell Labs’ and logistics) marches on in terms of with KDDI, a telecommunications global headquarters in New Jersey. transformation, it is the connected operator based in Tokyo, Japan. Using the MIMO-SDM technique, Bell home that is receiving the most Representatives from KDDI and Labs aims to overcome the capacity focus in the consumer IoT ecosystem. Ericsson have signed a Memorandum limitations imposed by the non-linear

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‘Shannon limit’ on current optical fiber. commercial service in order to deliver structured to assess interactions This sets a fundamental threshold for increased capacity in our network to between mobile devices and radio the maximum information transfer meet growing demand. In addition to access networks (RANs) in both indoor rate on a single optical fiber used Telstra consumer customers, we are and outdoor scenarios, as well as the in today’s metro and long-haul preparing our networks for growth new capabilities and characteristics transport networks. Commenting on in business use, as well as emerging of core networks based on Network this breakthrough, Marcus Weldon, technologies, which rely on our ability Functions Virtualization (NFV) and CTO of Alcatel-Lucent and President to deliver high capacity and low- software-defined networking (SDN) of Bell Labs said: “This experiment latency solutions.” The aggregation technologies. Further, as an adjunct represents a major breakthrough in of 100 MHz of spectrum using five to the ramping up of development of the development of future optical carriers across four separate bands, 5G in the Asia-Pacific region, South transport. We are at the crossroads as achieved in this test, lays the Korea’s Samsung Electronics has also of a huge change in communications groundwork for the aggregation of announced the signing of an MoU networks, with the advent of 5G higher frequency bands on the road with KDDI for ‘joint development of Wireless and cloud networking to 5G. common views on next generation underway. Operators and enterprises 5G technologies’, continuing the alike will see their networks challenged companies’ more than decade long by massive increases in traffic. At Bell Ericsson announces 5G history of collaboration. In another Labs we are continuously innovating Japan-related 5G announcement, to shape the future of communications development initiatives Ericsson says that it is supporting NTT networks to meet those demands.” with KDDI and NTT DOCOMO’s requirements for field trials that are likely to begin as early DOCOMO as 2016 with the introduction of 5G Ericsson and Telstra The Swedish equipment manufacturer radio prototypes, including multi-user Ericsson has announced separate MIMO (MU-MIMO) technology and Test LTE-A Via 5-carrier 5G research and development so-called ‘beamforming’ (i.e. a signal Aggregation over a Live projects with Japanese cellcos KDDI processing technique used to control and NTT DOCOMO to develop a the directionality of the reception Network better understanding of radio and or transmission of a signal on a Ericsson and Australia’s Telstra core technologies in deployment transducer array), that can be deployed have announced the world’s first scenarios, and to support the latter’s in ‘live outdoor and indoor network demonstration of 1 Gbps capability requirements for field trials as early environments and across multiple with five carrier LTE A Carrier sites’. Ericsson Aggregation integrated on a live end to says that radio end mobile network. Downlink speeds access prototypes in excess of 950 Mbps were achieved integrate with with a UDP speed test application by cloud-based aggregating 100 MHz of spectrum network slicing across Telstra’s spectrum holdings. to ‘enable agility Just as importantly, they were also and differentiated able to hit download speeds of over services for 843 Mbps end to end over the Internet consumers, to the speedtest.net site. Reaching enterprise and speeds of 1 Gbps was an original a wide array of goal of the LTE standard, making this industrial Internet demonstration a key milestone in the of Things (IoT) evolution of LTE-Advanced. In the applications’. test, downlink speeds were achieved Commenting by aggregating 100 MHz of spectrum on the MoU, across the 700 MHz, 1800 MHz, 2100 as 2016. In the first agreement, Seizo Onoe, EVP and CTO, NTT MHz and 2600 MHz (2 x 20 MHz) Ericsson and KDDI have signed a DOCOMO, said: ‘We are pleased to bands and delivered to a Cobham Memorandum of Understanding take the next step toward testing Aeroflex TM500 mobile device. Mike (MoU) with the goal of advancing in a realistic network environment. Wright, Telstra Group Managing technology evolution towards 5G, Tokyo Olympics and Paralympics will Director, Networks, says: “Demand as well as evaluating ‘performance be a great opportunity to propose for a superior user experience is and applicability of potential 5G key many different use cases of 5G, which ever increasing as customers are technology components’. The areas will be launched in 2020. We expect ‘always-on’ and have access to new of interest for the companies include that this would lead to even further and advanced technologies. We are radio and core technologies. Both opportunities. Ericsson’s 5G radio thrilled to be able to demonstrate parties note that 5G is expected to prototypes will help us to gain insights this capability in our network thanks drive what they term ‘an evolution into the potential for 5G in our network to our ongoing partnership with of the entire future communications environment and market, to open up Ericsson. The demonstration of 1 ecosystem, from devices to mobile new possibility to enable new services Gbps end to end capability shows the access, IP core and the cloud’. It for our customers and partners.’ advanced state of these standards and is understood that Ericsson’s 5G our ability to rapidly bring them into test network initiatives have been

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Incentivize the telecom industry towards achieving more national economical growth.

Overtaxing communications can harm Moreover, well-developed physical and the telecommunications industry, a sector digital infrastructures have a direct impact essential to economic development and on productivity by connecting economic countries’ competitiveness. A balance is agents, reducing transaction costs, easing needed between short-term requirements the flow of information and enabling to secure governments’ funding and long- integration of markets. Additionally, term strategies to drive competitiveness there is a growing empirical literature on and economic growth. how ICTs (Smart cities, E-government, E-health, etc) facilitate innovation and According with several studies performed impact firms and countries productivity along the years, telecommunications by giving decision makers more complete industry drives economic progress information. M a r c B i o s c a P a r t n e r , A . T . K e a r n e y and is a major contributor to the world Lead Partner CMT Practice economy. The 2013 GSMA-A.T. Kearney The telecommunications industry is also Middle East Mobile Economy study predicts revenues an important contributor to government of mobile operators will reach US$1.085 funding, through a wide range of tools trillion by end of 2015, equivalent to 1.5% like licenses and other regulatory of world’s GDP. When considering the fees, corporate tax and consumption whole mobile ecosystem, these figures taxes (including to telecommunication increase to US$1.858 trillion, or 2.4% services as well as hardware devices), of global GDP. 10 million people are among others. In 2014, the mobile estimated to be in the mobile ecosystem, ecosystem made a total $13 billion with ~250.000 new jobs to be created contribution to MENA public finances in the next two years. The total value through its tax contribution (spectrum generated by the mobile ecosystem in fees excluded)1. As regional economies MENA amounted to $115 billion in 2014, face increasing challenges due to equivalent to 4% GDP and it created and lower oil revenues, some governments supported around 1.3 million jobs1 Isabel Neiva Principal, A.T. Kearney CMT Middle East Practice

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may turn to the telecommunications sector to ease their The study has found evidence that telecommunications funding requirements. Sector-specific or usage-driven development and tax burden are correlated (Figure 2) and taxes are a swift way to increase government income. ultimately, economic development. In fact, 3G penetration However, questions remain about the impact of increased supports GDP growth across Western and Eastern Europe tax burden in the telecommunications industry and how but when taxes increase, 3G penetration growth rate this can negatively affect economic development and decrease, along with GDP. competitiveness.

Some have defended a clear relation between the taxation of mobile telecommunications services and the rate of growth of the mobile industry in a given country, arguing that excessive taxation is counterproductive. In fact, a report by the GSMA in Latin America2 showed that in several countries (e.g. Mexico and Panama) where taxation had increased, mobile usage and penetration had either stagnated or contracted, while in countries where taxes had been eliminated (e.g. Ecuador and Uruguay) both these metrics had increased – for example, in Ecuador monthly Minutes of Use doubled between 2008 and 2011, after a usage tax was eliminated in 2008.

In 2013 the Jordanian government increased telecom sector taxes to address its increasing funding needs by doubling tax rates on both mobile phones (from 8% to 16%), and Figure 2: 3G penetration vs. GDP Growth mobile subscriptions (from 12% to 24%), on top of the direct Source: Eurostat 2013, Wireless Intelligence 2013, A.T. Kearney analysis taxation in place (ie income tax and a revenue sharing levy). Such measure seems to have had a direct impact on the telecom sector revenues, which fell by 7.3% year-on-year in More generally, falling to secure telecom investment (in 2013 (Figure 1) 4G, FTTX, etc) will affect ICT development by limiting the existence of the required telecommunications infrastructure and by potentially leading to higher costs of using ICT. Without a sustainable development of ICTs, MENA countries will face increasing difficulties to leapfrog their economic development and competitiveness and grasp the new digital opportunities.

Addressing government funding requirements with sector- specific taxes can negatively impact the telecommunications industry. Countries that increase taxes and regulatory fees on the telecommunications industry decrease the use of these services and restrict telecom investment and ICT industry development, impacting growth in GDP, productivity and jobs-creation in the long run. Revenue growth in the Figure 1: Change (%) in total mobile revenues (year-on-year), Jordan Source: GSMA Intelligence industry is already challenging enough, with telecom operators still to find ways to successfully monetize their investments in FTTX and 4G. Increasing telecom-specific taxes hinders operators’ growth opportunities as well as ICT To better understand the impact of government taxes and and economic development in the region. fees on the telecommunications industry, A.T. Kearney has conducted a study on the average price per minute (APM) and the volume of taxes and fees incurred by mobile operators across 30 European countries3. Across these economies, total tax burden usually accounted for around ¼ of the APM (from as low as 12% in Switzerland to as high as 40% in Hungary) and for most European countries, telecom specific-taxes had a negligible effect on average price per minute

1 The mobile Economy, Arab States 2015, GSMA 2 Mobile Telephony and Taxation in Latin America 2012, GSMA 3 Taxing Telecom, The Case for Reform; A.T. Kearney (2013)

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SATELLITE NEWS

Televisa Signs C-band Deal satellites 11 and 12 into Medium Earth Orbit (MEO) at approximately 23,500km with SES using a Soyuz rocket from French Guiana. Mexican multimedia company Televisa The mission is the launch company’s last has contracted capacity on SES’s AMC 9 for the year, having conducted six Ariane satellite to broadcast content to millions of 5 launches, three Vega launches and households across Mexico. The multiyear now three Soyuz, representing the most agreement secures three C-band launches the company has conducted transponders for the premium channels in a year. Arianespace also logged its Canal 2, Canal 5 and Canal 9. Televisa is highest order intake in one year of nearly also renewing a separate transponder 2.4 billion euros, and launched more to support a video contribution and than 53 metric tons into Geostationary bidirectional data networks in Mexico. Transfer Orbit (GTO), the largest total Latin America has grown in importance payload mass injected into that orbit Satellite for SES in recent years. Over the last in a year. “With today’s launch, Europe three years SES’s technical reach in has doubled the number of its Galileo Updates Latin America has grown to 24 million satellites in orbit in just nine months,” households, while the number of TV said Jan Woerner, director general of the channels broadcast over the operator’s European Space Agency (ESA). “Along satellites to this region has doubled. The with the ground stations put in place company is launching a new satellite, around the globe, this brings Galileo’s SES 10, aboard a SpaceX Falcon 9 in the completion within reach. Initial Galileo second half of next year. The spacecraft services are scheduled to begin within will have 55 transponders on board, of next year, which proves the importance which 27 are incremental transponders at of this wise investment.” The European the 67 degrees west orbital slot. AMC 9 is Commission is funding and executing located at 83 degrees west. Galileo’s Full Operational Capability (FOC) phase, with ESA designated as the system’s development and sourcing Arianespace Reaches agent. Prime contractor OHB System in Bremen, Germany produced the Record Launch Cadence satellites, and U.K.-based Surrey Satellite with Latest Galileo Mission Technology Limited (SSTL) provided the onboard payloads. Arianespace completed its 12th launch of 2015 on Dec. 17, delivering Galileo

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Peru’s Fitel Awards Gilat network operations and prototype and built this highly advanced satellite user terminals. The space segment but successfully developed and built $108 Million for Remote was originally to be comprised of three up a comprehensive set of indigenous Connectivity Project spacecraft, but the second was lost due facilities and infrastructure and raised to an International Launch Services a team of highly dedicated engineers Gilat Satellite Networks has received an (ILS) Proton anomaly in May this year, who will now have every confidence award by Peru’s telecommunications reducing the constellation to two. to go forward and build even more investment fund Fondo de Inversion Boeing and the Mexican government advanced satellites.” en Telecomunicaciones (Fitel) to will conduct field testing in the coming supply regional telecommunications months and have already reported infrastructure for $108 million. The initial success with the addition of Telstar 12 Vantage new project, to take place in the Morelos 3. The system is expected to region of Cusco in Southern Peru, be fully operational by mid-2016 and Satellite Begins is in addition to the previously managed by Telecomunicaciones de Commercial Operations projects Fitel awarded to Gilat in the Mexico on behalf of the Ministry of Telesat’s recently launched Telstar regions of Huancavelica, Ayacucho Communications and Transportation. and Apurimac, which are currently 12 Vantage satellite has initiated underway. Fitel’s regional initiative full commercial operations at its 15 represents the complementary Singapore’s First degrees west orbital location. The phase of the Peruvian National Fiber satellite entered orbit three weeks ago Backbone project, aimed to connect Commercial Satellite via a Mitsubishi Heavy Industries (MHI) rural villages to broadband services. H2A rocket from the Tanegashima The fiber-optic transport networks will Launched on India’s Space Center in Japan, and provides be built and immediately transferred PSLV coverage from the Americas to Europe and the Middle East. Airbus Defence to the Ministry of Telecommunications, TeLEOS 1, the first Singapore-produced and Space built the Telstar 12 Vantage while the access networks based on commercial satellite, launched Dec. 16 satellite, which combines broad wireless technologies will be built and aboard a Polar Satellite Launch Vehicle regional beams and high throughput operated for 10 years before transfer (PSLV) from the Indian Space Research spot beams to support broadcast and to the Ministry. In the frame of the Organization (ISRO) into a 550 km Near enterprise networks on the ground, in access network operation obligations, Equatorial Orbit (NEqO). Produced by the air and at sea. The satellite uses Ku Gilat will connect about 615 public Singapore Technologies Electronics band for all customer services and is institutions and 371 remote villages to Limited (ST Electronics), the electronics backwards compatible with existing broadband services. “Today we start arm of Singapore Technologies Ku-band terminal equipment. covering new villages with high speed Engineering (ST Engineering), the 400 broadband. I’m pleased because kg satellite launched along with five strategic alliances between public additional small satellite secondary and private sectors are strengthening payloads. TeLEOS 1 has a mean revisit Japan Confident New with those projects,” said Jose Space Policy is Restoring Gallardo Ku, Minister of Transport and Communications in Peru. “On top Industry of the bid, Gilat expects additional Japan is enthusiastic that changes revenues to be generated by enabling being implemented through its most cellular carriers to acquire network recent “Basic Plan on Space Policy” are capacity to address the growing needs showing the first fruits of revitalizing for voice, data, and Internet in these and stabilizing the country’s space regions,” added Dov Baharav, chairman industry. Speaking Dec. 10 at a and interim CEO of Gilat. Maureen and Mike Mansfield time of 12 to 16 hours and its coverage Foundation event in Washington, D.C., of the equatorial belt includes many Yoshinori Komiya, director general Morelos 3 Satellite major shipping routes as well as of Japan’s Office of National Space Operations Handed Over disaster prone and forest fire regions. Policy, said that in the two years since ST Electronics expects the satellite the plan was introduced, it is already to Mexican Government will contribute to high-response having a modernizing impact on the Boeing has transferred on-orbit applications in maritime security and nation. Komiya said one of the biggest control of the Morelos 3 satellite, safety, humanitarian aid, disaster relief changes reflected in the new plan launched Oct. 2 aboard an Atlas 5 and environmental activity verification was the need for a clear long-term rocket, to the Mexican government. with its optical payload. “The successful public investment plan. This in the Based on the Boeing 702 High Power launch of the TeLEOS 1 satellite past grew to be such a problem that (HP) platform, the satellite is designed represents a major step forward it stunted the growth of the island to serve Mexico’s national security, civil for the Singapore space industry,” nation’s domestic space sector. “The and humanitarian programs. Boeing is said Lee Fook Sun, deputy CEO and lack of foreseeability has weakened responsible for the design and delivery president of the defense business at the Japanese industry,” he said, adding of the integrated Mexsat system. ST Engineering and president of ST that the “the Japanese space industry The ground segment is comprised Electronics. “It marks the completion of has decreased for this decade.” of two ground network and satellite a very intensive and challenging phase Komiya described two primary parts control stations in Mexico, associated in which we have not only designed of Japan’s “Space Basic Plan,” with the

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SAMENA TRENDS _ DEC 2015 SAMENA TRENDS _ DEC 2015 first being maintenance, and the other through ViaSat 1 and the upcoming Inmarsat, EM Solutions being implementation. This includes ViaSat 2 for even higher throughput amending the plan once a year, which on a worldwide level. “We feel like we Partner on Combined he said happened just recently ahead of have made enough progress both in Milsatcom-Global Xpress his U.S. trip. Japan’s Office of National terms of payloads and the spacecraft Space Policy has also achieved greater integration … and then apply a lot of Terminals long term planning into the schedule the ground segment technology that Inmarsat and EM Solutions of for launching satellites, despite some we have been developing toward Australia have teamed up to develop political resistance, giving industry the ViaSat 2 space system to achieve a maritime satcom terminal capable more motivation to invest. “I received that global effect with dramatically of linking with both Milsatcom and various comments from our Japanese improved bandwidth economics as Global Xpress (GX) systems. The new space industry that they can easily well,” Dankberg said. “We are really terminal is scheduled to receive full foresee and they can invest the confident that we have a system Inmarsat accreditation during the technology and the human resources second quarter of 2016, on the space mission. So I believe the and will be submitted for outer space basic plan already starts Wideband Global Satcom to make sense to revive the Japanese (WGS) certification. space industry,” he said. The U.S. plays Inmarsat and EM an influential part in Japanese space Solutions are creating policy. Chirag Parikh, director of space the terminals for an policy at the U.S. National Security Australian government Council said Japan has been one of the customer, which will most collaborative nations with the support features such as U.S. in space, with delegations from tracking via monopulse both countries meeting nearly every technology and easy month. Of particular importance, he switching between GX said, is the ability to collaborate in and Milsatcom systems. commercial, civil and, more recently, The new terminals will use in defense space programs. “Because EM Solution’s Diamond of the change in the basic space law, Series Ka Multiband it allowed for [the Japan Aerospace Block UpConverters Exploration Agency] JAXA to be able (BUCs), which use Gallium to work with the Ministry of Defense, that we are going to be able to Nitride (GaN) technology and cover and with the Department of Defense get under contract and get started both commercial and military Ka to look at Space Situational Awareness soon.” Dankberg expects the future frequency bands in a single package. (SSA) data and see how it will be able satellites to provide a massive boost Based on its land mobile terminal to support national security purposes, in throughput compared to what the for the Ka-band, EM Solutions is also [and] civil space traffic management company is already offering today. contracted to deliver a simultaneous purposes,” said Parikh. SSA, along with ViaSat 1, launched in late 2011, X-band/Ka-band maritime terminal maritime situational awareness, are supports 140 Gbps of capacity, and for another customer, which provided two areas where Parikh said otherwise ViaSat 2, once launched, will offer the baseline reference for the new disparate space programs can work between 250 and 300 Gbps as well as program in conjunction with Inmarsat. together, and are top areas where seven times the coverage. Dankberg The Inmarsat-EM Solutions family Japan and the U.S. can support each said this upward trend would continue. of maritime terminals is known as other. “What that means is we are probably the Cobra series and will be further in the thousand gigabit — meaning developed for other capabilities in the terabit — range, taking into account near future. ViaSat Embarks on what we will learn from ViaSat 2 on Global Triple Satellite ViaSat 3,” he explained. “It’s a little bit early to make predictions, but we think Inmarsat and Turksat Network a thousand gigabits is a reasonable prediction. There is some chance it will Enter Collaborative ViaSat is ramping up its coverage with go down but I think there is more of a a plan for global High Throughput chance it will go up.” The first market Partnership Satellite (HTS) connectivity with a fleet ViaSat 3 will address is the Americas, Inmarsat and Turkish state-owned of three new satellites. Mark Dankberg, building on the presence of ViaSat satellite operator Turksat have signed CEO of ViaSat, described the triple 1 and 2 while plunging significantly a Memorandum of Understanding satellite system during the company’s further into areas like Latin America. (MoU) to explore opportunities most recent earnings call. In an The second ViaSat 3 satellite is to through the formation of a strategic interview with Via Satellite, he laid out focus on Europe, the Middle East and partnership, initially focused on more details for the upcoming system. Africa (EMEA), and the third on the the defense and aviation sectors. ViaSat is eager to get started on the Asia Pacific. ViaSat intends to begin Under the MoU, Inmarsat would be new satellites, collectively known as launching these satellites by the end Turksat’s preferred mobile satellite ViaSat 3, in the very near future. The of the decade. communications provider. Inmarsat vision behind the new spacecraft is expects Turksat’s strong links across to build on the knowledge acquired the Caucasus and Central Asia will

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enable the operator to increase its U.K. So far three channels, including 10 percent of the world’s airspace. penetration in this region of the world. Record TV HD and Daystar Television, This will be done through Aireon’s “We hope that with this MOU, Turksat have signed up for a new all-HD satellite-based Automatic Dependent and Inmarsat’s partnership program platform. Surveillance-Broadcast (ADS-B) will develop a long-term fruitful service, scheduled to be operational in cooperation. The main objective of this 2018. ATNS has decided to implement partnership is to broaden product and DOD’s STPSat 5 Satellite space-based ADS-B to enable real-time service portfolio of both companies,” visibility throughout their airspace. said Ensar GÜL, CEO, Turksat. from SNC Passes Critical Increased visibility, coupled with real- Design Review time air traffic surveillance, improves both the safety and efficiency of air Sierra Nevada Corporation (SNC) has travel and gives air traffic control the Ooredoo, Es’hailSat successfully completed the Critical ability to optimize airspace with more Design Review (CDR) of its STPSat 5 Team up for New VSAT accurate, predicable data, according satellite for the U.S. Department of to Aireon. “Much of Africa is currently Services Defense’s (DOD) Space Test Program without any air traffic surveillance. Qatari companies Ooredoo and (STP), confirming that the satellite Aireon’s service will give us visibility Es’hailSat have signed a large will meet mission requirements into many regions, allowing us to development and collaboration and is sufficiently mature to begin facilitate seamless transitions between agreement to work together on a fabrication. Administered by NASA’s air traffic control providers. This will portfolio of VSAT and other satellite Ames Research Center for the DOD be achieved without any additional services for customers in the country. STP office, STPSat 5 carries payloads ground infrastructure and utilizing The two telecommunications provided by the Space and Naval currently-mandated on-board companies will collaborate on designs Warfare Systems Command, the avionics,” said Thabani Mthiyane, and specifications for developing U.S. Air Force Academy, the Naval CEO at ATNS. ATNS signs their data VSAT projects for leading domestic Research Laboratory and Office of services agreement on the heels of enterprises. “Satellite-supported Naval Research, and the Air Force the International Telecommunication communications are opening new Research Laboratory. SNC is the prime Union (ITU) adopting a resolution for frontiers for businesses in Qatar and contractor on STPSat 5, a science and primary spectrum allocation of the across the region. By combining technology demonstration satellite 1090 MHz frequency band for use by Ooredoo’s industry expertise and carrying five space experiments for satellite-based ADS-B. Es’hailSat’s growing fleet of satellites, the DOD. STPSat 5 is the first satellite we can position Qatar as a true leader to use SNC’s SN-50 microsatellite in this growing field,” said Waleed bus, which features a modular design Al-Sayed, chief executive officer at and a green propulsion system. SNC 5 Points to Keep in Ooredoo Qatar. has already secured more than 75 Mind Ahead of the 2Ku percent of the hardware needed to manufacture the satellite and has Commercial Launch Arqiva Books recently begun integration of several Gogo CEO Michael Small is bullish key engineering models, including the about what the company’s new Transponder from spacecraft avionics. “Completion of satellite-based connectivity offering Eutelsat for HD Content CDR for STPSat 5 supports the Space will bring to the In-Flight Connectivity Test Program’s charter to rapidly (IFC) market, including loosening U.K.-based Arqiva has entered mature spaceflight opportunities for bandwidth constraints and aftermarket a multi-year commitment with space experiments that provide high domination. Hot on the heels of Eutelsat Communications for a 15th value to the Department of Defense,” the FAA’s certification of the 2Ku transponder at the 28 degrees east said Colonel Jason Cothern, Air Force technology and ahead of the offering’s video neighborhood to serve the Space and Missile Systems Center, rapidly approaching commercial country’s Direct-to-Home (DTH) Advanced Systems and Development launch set for the end of this year, broadcasting market. The additional Directorate. “We look forward to Small spoke at the UBS Global Media transponder will support the significant moving into integration and test of and Communications Conference this spacecraft in preparation for a in New York on December 8, about 2017 launch.” how the company expects the new offering to upset the IFC playing field — and what may stay the same. “We South Africa Signs on for have been so capacity constrained we have been doing everything we Aireon ADS-B can think of, practically, to prevent Aireon has signed a data services sales mainly raising price,” said Small. agreement with Air Traffic and To date, five airlines are signed up to Navigation Services (ATNS), South deploy 2Ku on aircraft in their fleet: Africa’s Air Navigation Service Provider launch customer Delta, Virgin Atlantic, (ANSP). Through the agreement, GOL, AeroMexico, United, Japan ATNS will have 100 percent air traffic Transocean, and Air Canada. As aircraft surveillance of the Johannesburg Flight on these fleets transition to 2Ku, Information Region (FIR) and the Cape capacity will free up in Air-to-Ground growth in HD channels operating on Town FIR, which cover approximately network and enable more bandwidth the Sky and Freesat platforms in the

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SAMENA TRENDS _ DEC 2015 SAMENA TRENDS _ DEC 2015 in all areas of the Gogo network — customers. Already appointed as a GX services will be sold to consumers in such as Delta who has committed to VAR for the maritime and government the U.K. through a network of satellite transitioning 250 aircraft from ATG to markets, NSSLGlobal will now also be resellers under the auspices of the the satellite solution by 2018. “There offering GX services to its customers British Government’s Universal Service is zero problems for a long, long in media, mining, oil and gas and Commitment. Under this plan directed time in selling more if we have more multinationals. Inmarsat has three GX by Broadband Delivery U.K. (BDUK), up bandwidth available,” he adds. “I no satellites in orbit and initiated global to 300,000 homes that cannot access longer feel our back is against the wall service for government customers at greater than 2Mbps from terrestrial on capacity.” the beginning of this month. Global networks will be eligible to receive a service for other verticals is scheduled contribution from government to fund for introduction by the end of the year. the installation of satellite broadband Eutelsat Awarded services, with the consumer then paying monthly service charges. The Capacity Deal for New Eutelsat powers StarTV program is expected to go live during Mexican Pay-TV Venture December. “Our rollout of superfast DTH launch across broadband has already reached an Eutelsat Americas has received a additional 3.5 million homes and multiyear contract from StarTV, the Mexico businesses who would otherwise commercial platform of Stargroup, StarTV is to launch a direct-to-home have missed out. We are making for capacity on Eutelsat 117 West A (DTH) pay-TV service in Mexico tremendous progress, but it’s a and Eutelsat 117 West B. Stargroup empowered by Eutelsat Americas. massive engineering project and won’t Stargroup’s new platform will start happen overnight. This scheme offers later this month in the Mexican immediate assistance to those homes state of Zacatecas and other parts and businesses in the most remote of the country, replacing the TVZac areas with the slowest speeds and is all platform. To support its expansion into part of our transformation of the U.K.’s DTH, StarTV has signed a multi-year digital landscape,” said Ed Vaizey MP, agreement with Eutelsat Americas for digital economy minister in the U.K. capacity on the Eutelsat 117° West A and Eutelsat 117° West B satellites. “Thanks to the telecommunications reform carried out by the Mexican Third and Fourth Galileo Government and the drive of the IFT FOC Satellites Enter to promote competition, there is an opportunity to provide an alternative Service satellite TV service,” explained Julio Di- The Galileo Full Operational Capability purchased the capacity to support Bella, CEO of Stargroup. “Eutelsat has (FOC) satellites 3 and 4, assembled by the launch of its new Direct-to-Home been a key ally and has the coverage OHB System AG of Germany, are now in (DTH) pay-TV service in Mexico. The and capacity that we need to guarantee service. The satellites are broadcasting new platform will start later this month the best service to our customers navigation signals and have since in the Mexican state of Zacatecas both today and in the future.” “The Dec. 1 been relaying Search and and other parts of the country, development of DTH services in the Rescue (SAR) messages as part of the replacing the TVZac platform that Americas is a strategic objective for international Cospas–Sarsat System. has been available regionally through Eutelsat. We are delighted to win Known as Adam and Anastasia, Galileo microwave distribution. StarTV plans the trust of StarTV as a new player FOCs 3 and 4 launched March 27 and to bring new pay-TV packages to the in Mexico and to leverage our prime Mexican market featuring national video neighbourhood to broaden the and international channels, and pay-TV offer in Mexico and beyond,” partnering with local distributors. The added Patricio Northland, CEO of new platform will begin to operate Eutelsat Americas. The new platform with 50 channels. Eutelsat 117 West B will kick off with a 50-channel offering, is scheduled to launch in 2016, after and will gradually increase its portfolio which it will join Eutelsat 117 West with both Mexican and international A at 116.8 degrees west, providing networks. coverage over Latin America. Avanti Communications Inmarsat and NSSLGlobal Awarded UK Universal Expand Global Xpress Broadband Contract underwent a lengthy test campaign. VAR Status BT has signed a new contract with The first pair of full satellites was Inmarsat has signed an agreement Avanti Communications to include the placed in improper orbits in 2014 by a with NSSLGlobal, appointing the operator’s satellite communications malfunction of their Soyuz launcher’s company as a Global Xpress (GX) Value as part of BT’s supply of wholesale upper stage, but the elongated orbits Added Reseller (VAR) for enterprise consumer broadband services. These have since been modified so that the

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navigation payloads can perform as payload to orbit without increasing satellites to calculate the location of planned. The European Commission our prices,” said George Whitesides, distress beacons by measuring the is set to make a decision on whether CEO of Virgin Galactic. LauncherOne Doppler effect on the received beacon they will be employed as part of the offers 200 Kg SSO missions for a price signals. To remedy gaps and delays in Galileo constellation. Galileo FOCs 3 below $10 million. Virgin Galactic’s beacon activation and alert message and 4 were inserted into the correct WhiteKnightTwo carrier aircraft generation that occur as a result of orbits. The third pair of FOC satellites will remain the mothership for the satellite orbit patterns, the LEOSAR launched in September 2015 and is company’s SpaceShipTwo suborbital satellites are being phased out over undergoing payload testing. OHB spaceflight vehicle. the next four years in favor of the expects this pair will enter service early MEOSAR system. This will also help next year. The latest Galileo FOC twins, to augment the sometimes-spotty named Antonianna and Andriana, have New Zealand, Australia coverage experienced by New Zealand arrived in French Guiana, aiming for a and Australia due to the limited Soyuz launch on December 17. The Step to Forefront of number of satellites in the system intention is to have those satellites, New Satellite Search and that monitor the Southern Pacific. Galileo FOC 7 and 8, ready to enter “Because of New Zealand’s distance the operational constellation by next Rescue System from the equator, the GEO satellites spring. Plans to boost to the satellite Search are low on the horizon, which can limit and Rescue (SAR) system in New their line-of-sight visibility, particularly Zealand and Australia are well in mountainous terrains,” Mike Hill, Virgin Galactic Switches underway as a New Zealand-based, manager of Rescue Coordination $7.2 million satellite ground station Center New Zealand (RCCNZ) and LauncherOne Carrier reached completion in November. As safety services for Maritime New from WhiteKnightTwo to Boeing 747 To accommodate an increase in the payload capability of LauncherOne, Virgin Galactic has swapped the carrier aircraft WhiteKnightTwo for a Boeing 747-400. The larger aircraft, previously operated by Virgin Atlantic under the nickname Cosmic Girl, will provide a dedicated launch platform for the LauncherOne orbital vehicle. Virgin Galactic doubled LauncherOne’s performance to 200kg for standard Sun-Synchronous Orbit (SSO) missions in September, with the option to purchase further increases in performance to the same orbit and for launches that reach other altitudes or inclinations. The launch system is capable of launching over 400kg of payload to other orbits. Boeing 747s have supported a variety of special part of a joint initiative by Maritime New Zealand, told Via Satellite. “That makes missions, including the Space Shuttle Zealand and the Australian Maritime LEO satellites important, but these are Enterprise test flight program, NASA’s Safety Authority, the McMurdo Group limited in number and not always over Shuttle Carrier Aircraft program, the completed installation of a six-antenna New Zealand, so there can be delays Pratt and Whitney flying testbed, and next-generation Medium-Earth Orbit between a beacon activation and its flight test of the X-45 Phantom Ray. The Search and Rescue (MEOSAR) satellite detection by a LEO satellite.” As with LauncherOne rocket will be mounted ground station system built near the current LEOSAR system, when a to the carrier aircraft under the left Tuapo in New Zealand. The new system beacon is activated, the signal will be wing, adjacent to the position that has aims to replace the aging Cospas- detected by all MEOSAR satellites in been used by other 747s to ferry a fifth Sarsat Low-altitude Earth Orbit (LEO) line-of-sight. The more satellites that engine. Cosmic Girl has completed international satellite distress alerting detect the beacon, the greater the initial inspections and tests. Prior to the system. The U.S., France, Canada and accuracy of positioning information. start of the wing modification, VT San former USSR established the original According to Hill, the chances of Antonio Aerospace, a Maintenance, system —known as the LEOSAR system a satellite being in line of sight of Repair and Operations (MRO) in conjunction with the associated beacons will greatly increase as the organization, will conduct a regularly ground receiving stations — in 1979, number of MEOSAR satellites orbiting scheduled maintenance check. according to the National Oceanic and the Earth continues to rise. There are “Selecting the 747 airframe provides Atmospheric Association (NOAA). It currently at least 18 MEOSAR satellites a dedicated platform that gives us the operates at 406 MHz and makes use operating, compared to five LEOSAR capacity to substantially increase our of LEOSAR and Geostationary (GEO) satellites, a number that will jump to

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SAMENA TRENDS _ DEC 2015 SAMENA TRENDS _ DEC 2015 over 50 MEOSAR satellites in orbit services. Inmarsat has a fourth Global segment — along with a business over the next 10 years. “As with the Xpress satellite ordered from Boeing plan, a development road map and an LEOSAR system, beacon signals will that the operator could launch in 2016. industrial organization proposal. The pass through the MEOSAR satellites to ONERA-developed Eole demonstrator the two ground stations, be processed is to perform flight tests in order to through the Canberra mission control Third Global Xpress validate key technologies, including center, and relayed to the Rescue the launcher avionics and its release Coordination Center New Zealand, Satellite Enters Service sequence. ONERA’s partners for the thus triggering SAR operations,” Hill Inmarsat’s third Global Xpress satellite, ALTAIR project include the French said, noting that the RCCNZ responds Inmarsat 5 F3, successfully completed Space Agency (CNES) and French to an estimated 550 beacon alerts all in-orbit testing and reached Full company Bertin Technologies, along each year. “Tests from the new site Operational Capability (FOC) on with Italy’s Piaggio Aerospace, GTD have already shown detection times December 1, 2015 for government Sistemas de Informacion of Spain, the will decrease, with test activations customers. The satellite, launched Swiss Federal Institute of Technology picked up every two or three minutes.” in August 2015, is at its final orbital Zurich, NAMMO Raufoss in Norway, The new ground station, along with position, enabling worldwide coverage and SpaceTec Partners of Belgium. a similar receiving station in Western with the Ka-band High Throughput Australia that began construction in Satellite (HTS) system. Inmarsat has 2014 and will be commissioned for said repeatedly that Global Xpress Lockheed Martin and use in next year, according to the will reach its full revenue potential Australian Maritime Safety Authority, once the three-satellite constellation EOS to Open Space are essential to allow data to be reached completion. The operator Debris Tracking Site in collected from the MEOSAR satellites expects Global Xpress revenues will orbiting over the New Zealand SAR achieve a minimum of $500 million Australia region. “Without this site, and the within five years of activating global Lockheed Martin and Electro Optic site in Western Australia, there would services. Inmarsat has a fourth Global Systems (EOS) have broken ground be a significant gap in global SAR Xpress satellite ordered from Boeing on a new space object tracking satellite coverage in the Southern that the operator could launch in 2016. facility in Australia that aims to Hemisphere,” Hill noted. Maritime provide commercial and government New Zealand will now enter a period customers an enhanced view of orbital of testing for the site, after which Europe to Study Semi- space debris fields. The new space Cospas-Sarsat will consider data from object tracking site will give satellite the ground station to ensure it meets Reusable Launcher for operators a clearer picture of the debris appropriate standards and approve it Small Satellites that could damage their networks, and as part of the global network. While The French Office National d’Etudes how they can avoid potential collisions. Cospas-Sarsat will not introduce the et Recherches Aerospatiales (ONERA) The network developed by EOS and MEOSAR system for global search and is leading a study with partners in six Lockheed Martin, called Optical Space rescue until 2017, the New Zealand site European nations on the feasibility Services (OSS), was formed in August is likely to be providing information for of a low cost system for launching 2014. Electro optical systems like OSS use in search and rescue operations in small satellites. The three-year serve as a complement to radar-based the New Zealand and Australia regions research program, known as the Air systems like the U.S. Air Force’s Space beginning in mid-2016. Launch space Transportation using an Fence, which will sweep the sky tracking Automated aircraft and an Innovative 200,000 objects. Sensors, lasers and Rocket (ALTAIR) project is under the optic systems will be fused together Third Global Xpress European Union H2020 research and by software enabling OSS to hone-in Satellite Enters Service innovation program, and has the on, characterize, and track human- goal of demonstrating the industrial made objects orbiting the depths of Inmarsat’s third Global Xpress satellite, practicality of a launcher for 50 to space. That data will then be quickly Inmarsat 5 F3, successfully completed 150 kg satellites into Low Earth Orbit and accurately delivered to customers all in-orbit testing and reached Full (LEO) altitudes between 400 and 1,000 allowing them to maneuver satellites Operational Capability (FOC) on kilometers. ALTAIR will use a semi‐ and prevent collisions. The system December 1, 2015 for government reusable “air launch” system, whose can also predict the paths of debris, customers. The satellite, launched carrier will be a reusable automated giving operators advance warning in August 2015, is at its final orbital aircraft, releasing an expendable of potential collisions, according to position, enabling worldwide coverage launch vehicle at high altitude. The Lockheed Martin. “This new tracking with the Ka-band High Throughput launch system is expected to use capacity will provide unique data Satellite (HTS) system. Inmarsat has environmentally friendly hybrid which is exclusively available to EOS said repeatedly that Global Xpress propulsion, advanced lightweight and Lockheed Martin, enabling each will reach its full revenue potential composite structures, avionics and organization to offer both data and once the three-satellite constellation an upper stage providing missAt the services to meet global market needs. reached completion. The operator conclusion of the study, ONERA and Based on current contracts and expects Global Xpress revenues will partners are to produce a detailed active negotiations, EOS expects to achieve a minimum of $500 million definition of the complete system commence the delivery of data and within five years of activating global — carrier, launcher and ground services by late 2016,” said Ben Greene, EOS chief executive officer.

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Satellite Industry Fares I believe every sector or every service preventing interference with other is leaving here happy with the fact that services and applications. WRC-15 Better Than Expected at the resources have been distributed also adopted several agenda items WRC-15 equally, and I have not seen a situation for future conferences regarding whereby a particular service has been additional spectrum for satellite, and Outcomes from the International marginalized.” Daudu added that WRC- regarding frequency bands for 5G. Telecommunications Union’s (ITU) 15 also serves as a litmus test for the The conference rejected proposals 2015 World Radiocommunications ITU’s ability to respond to emergency to consider globally harmonized 5G Conference (WRC-15) turned out to situations, chiefly evidenced by the spectrum in C-, Ku- or Ka-band at be more favorable than many feared ability to produce a decision on WRC-19, instead agreeing to evaluate leading up to the event, which took allocating spectrum for global flight high-frequency bands above 24 GHz place in Geneva, Switzerland from tracking. “We have been able to for 5G mobile services. WRC-19 will November 2 to November 27. The protect both the current investments also include studies on IMT spectrum four-week conference, attended by and the future investment for satellites above 6 GHz. roughly 3,300 participants and 162 of and for the broadcasting industry,” the ITU’s 193 member states, made added Francois Rancy, director of the critical decisions regarding the use ITU Radiocommunication Bureau. Ooredoo offers high of spectrum around the world. In the “These two industries were extremely balance hung the fate of C-band, concerned during these four years speed VSAT services for which stretches from 3.4 to 4.2 GHz, preparation by the possibility of a remote businesses with as it was being disputed between the decision by this conference which satellite industry and the International would create uncertainty about their Eutelsat Mobile Telecommunications (IMT) future. If we had started to open new Eutelsat Broadband has inked a deal industry. In a November 27 press bands in addition to the ones which with Ooredoo Qatar to deliver an conference and accompanying press have already been opened at the 2007 enhanced high speed VSAT service for release, the ITU stated that the lower conference, this would have led to a lot Ooredoo’s business customers under portion of C-band from 3.4 to 3.6 will of instability for these two industries. the ‘VSAT Internet’ banner, based be identified for mobile broadband So the result is very much balanced on the KA-SAT satellite dedicated communications, with the rest of the and very positive for everybody.” to broadband services. Connection band preserved for satellite. A same- Rancy said the conference was on the speeds are promised at up to 22Mbps day release jointly issued by the Asia verge of allocating another 200 MHz of (download) and 6Mbps (upload), with Pacific Satellite Communications C-band from 3.6 to 3.8 GHz for mobile the aim of delivering communications Council (APSCC), Cable and Satellite broadband in many countries using support for a wide range of applications Broadcasting Association of Asia footnotes, but ultimately decided not such as point-of-sale transactions, data (CASBAA), EMEA Satellite Operators’ to pursue this method. “We don’t want processing and reservation systems Association (ESOA), Global VSAT that because we want to preserve alongside high speed internet access, Forum (GVF), Interference Reduction harmonization and also simplicity of particularly aimed at businesses Group (IRG), Society of Satellite the regulations,” he explained. Beyond in remote locations such as desert Professionals International (SSPI), C-band, the IMT industry gained areas and coastal waters. The press World Teleport Association (WTA), and spectrum in L-band from 1427 to release adds that tailored VSAT-based others said that the decisions reached 1518 MHz, and in the 700 MHz band communications are expected to affirmed the importance of satellite, from 694 to 790MHz. The 700 MHz benefit sectors such as construction, which was increasingly concerned that band expanded from a regionally hospitality, manufacturing, tourism large quantities of spectrum would be harmonized band in the Americas and agriculture as well as government ceded to IMT. Based on conclusions and Asia Pacific to a global one, and agencies and news agencies. VSAT from WRC-15, regulators identified is prioritized for critical emergency Internet is available from QAR3,000 3.4 to 3.6 GHz to IMT for ITU Region services in Public Protection and (USD814.70) per month with one fixed 1, which comprises Europe, Africa, Disaster Relief (PPDR). L-band mobile- IP address per link, while add-on data the Middle East and Russia; Region 2, satellite service operations occur in packs are also available if reaching the which consists of the Americas; and the adjacent 1518 to 1559 MHz band. 200GB monthly data quota. a handful of countries in Region 3 — The satellite industry made some gains the Asia Pacific — which will sign a at WRC-15 as well. In Ku-band, the footnote allowing potential IMT use of industry gained a downlink allocation these 200 MHz. With the exception of in the 13.4 to 13.65 GHz band in Region Region 2, a “No Change” position was 1 and country-specific allocations in adopted for the majority of C-band the 14.5 to 14.8 GHz in several nations. ranging from 3.6 to 4.2, with only a Regarding Earth Stations in Motion few countries in Region 2 identifying (ESIMs), the conference adopted new the 3600 to 3700 MHz band for regulations in part of the Ka-band IMT. “During the proceedings of the satellite spectrum ranging from 19.7 conference there were tough times, to 20.2 GHz and 29.5 to 30 GHz. The but we were able to surmount all those new regulations are to facilitate the difficulties,” Festus Daudu, chairman global roaming of such terminals, of WRC-15, said during the press which are used for satellite broadband conference.” And so, on a general note, connectivity to mobile terminals, while

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