Volume 07, August, 2016 SAMENA TRENDS EXCLUSIVELY FOR SAMENA TELECOMMUNICATIONS COUNCIL'S MEMBERS BUILDING DIGITAL ECONOMIES

A SAMENA Telecommunications Council Newsletter

Articles

Aviation Industry Prepares for Digital Transformation... Page 42

Policy Implications of the Internet of Things Page 48

Measuring the Capability of Business Continuity Management... Page 50

Mr. Kaan Terzioglu Chief Executive Officer Turkcell Page 04

Telecom Operator and OTT Collaboration

www.samenacouncil.org SAMENA CONTENTS VOLUME 07, August, 2016 TRENDS

The SAMENA TRENDS newsletter is REGIONAL & MEMBERS wholly owned and operated by The UPDATES SAMENA Telecommunications Council 10. Members News (SAMENA Council). Information in the newsletter is not intended as professional 16. Regional News services advice, and SAMENA Council disclaims any liability for use of specific information or results thereof. Articles REGULATORY & POLICY and information contained in this UPDATES publication are the copyright of SAMENA 23. Regulatory News Telecommunications Council, (unless otherwise noted, described or stated) 27. A Snapshot of Regulatory Activities in and cannot be reproduced, copied or SAMENA Region printed in any form without the express written permission of the publisher. 32. Regulatory Activities Beyond the The SAMENA Council does not necessar- SAMENA Region ily endorse, support, sanction, encour- age, verify or agree with the content, WHOLESALE UPDATES comments, opinions or statements made 39. Wholesale News in The SAMENA TRENDS by any entity or entities. Information, products and services offered, sold or placed in the TECHNOLOGY UPDATES newsletter by other than The SAMENA 42. Aviation industry Prepares for Digital Council belong to the respective entity Transformation take-off... or entities and are not representative EDITORIAL of The SAMENA Council. The SAMENA 43. Technology News Council hereby expressly disclaims any 03. Telecom Operator and OTT and all warranties, expressed and im- Collaboration plied, including but not limited to any 48. Policy Implications of the Internet of warranties of accuracy, reliability, mer- Things chantability or fitness for a particular purpose by any entity or entities offer- 50. Measuring the Capability of Business ing information, products and services in ContinuityManagement... this newsletter. The user agrees that The SAMENA Council is not responsible, and REGIONAL shall have no liability to such user, with SATELLITE UPDATES respect to any information, product or 52. Satellite News service offered by any entity or entities PERFORMANCE in this newsletter. The SAMENA Coun- Over-the-Top (OTT) cil’s only liability in the event of errors 08. shall be the correction or removal of the Service Trends erroneous information after verification.

Editor-in-Chief Bocar A. BA

Contributing Editors Izhar Ahmad Javaid Akhtar Malik 04. Contributing Members Cisco Systems Orange Business Services EXCLUSIVE Saudi Telecom Company INTERVIEW Publisher Mr. Kaan Terzioglu SAMENA Telecommunications Council Chief Executive Officer Turkcell Subscriptions [email protected]

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SAMENA TRENDS AUGUST 2016

Telecom Operator and OTT Collaboration

Among the latest trends that our industry is OTTPs to seek closer relationships with telecom witnessing, the potential for and the likelihood of, operators. Ultimately, it may just be about the telecom operators working together in a viable customer and who, telecom operator or the OTTP manner with over-the-top providers (OTTPs), ranks – makes most use of such existing relationships. above many. The current situation with regard to communication For years, the discussion has revolved around services provided by telecom operators and OTTPs’ use – some may argue, misuse – of operator OTTPs, and how the customers and the regulatory network assets to make money, while operators bodies benefit from it, has certain complexities. figured out the best ways to deal with the fact that However, knowing that operators want to recover their networks and their customers had become lost revenues and monetize their network assets, a source of monetary value for those with no OTTPs require moving to the next phase of market pressures to invest in infrastructure development capitalization toward greater monetization and or to fulfill burdensome regulatory and financial leveraging customer relationships, and regulators obligations. want fair play as well as untapped revenue sources, the possibilities of closer communication across Due to the investment of telecom operators, the the aforementioned stakeholders have become availability of telecoms infrastructure and digital much more real with time. access technologies have become a reality over the recent decades, contributing directly to the SAMENA Council, based on the perspectives of human endeavor, and promoting market entry its own operator members, feels that telecom and access by players directly involved in digital operators are highly likely to enter into OTTP communications and ICT development. partnerships over the near future. What they would require as incentives, include fair policies Now, however, for telecom operators, the focus and regulatory approaches that promote such has shifted from just investing in infrastructure needed collaboration within the industry. Many and launching many of the same types of of the developing ones are increasingly sharing in communication bundled offerings to focusing the prosperity brought forth by socio-economic on and investing in customer experience integration, driven by digital communication management, deemed by many to be the ultimate and accelerated digitization. Such acceleration differentiator. The modern operator aims to can be achieved with a greater success rate by improve its financial performance while also fostering integration and collaboration within the revamping its customer-experience management communication industry. strategies – improving which will indeed have a direct impact on the financial performance and on thwarting competition.

From the OTTP perspective, the OTT communication model has matured. This, combined with a set of realizations – for example, that, one, operators, today, are experiencing a change in mindset and are beginning to consider OTTPs as less a threat and more as potential partners, and, two, the rising acceptance and maturity of OTT based communication as a viable alternative mode of connecting, and to note the investment pressures on OTTPs themselves from the OTT investor community itself – presents a strong reason for

Yours truly,

Bocar A. BA Chief Executive Officer SAMENA Telecommunications Council

3 exclusive interview

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Kaan Terzioğlu was appointed Turkcell’s Chief Executive Officer on April 1 2015. He began his professional life in 1990 as an Independent Auditor and CPA at Arthur Andersen Turkey. In 1992, Mr. Terzioğlu joined Arthur Andersen USA as the IT Strategies and Mr. Kaan Terzioglu Security Specialist, and in 1994, began working at Arthur Andersen Belgium as the Leader CEO of Information Management and Digital Strategy Services. In 1998, he was appointed Vice President of Consultancy Services Turkey Operations. Between 1999 and 2012, he Turkcell served as the Team Leader of E-Commerce Strategies for the EMEA region, Sales Director of Advanced Technologies for the EMEA region, Managing Director of Technology Marketing Organization for the EMEA region, and Vice President of Central and Eastern Europe at the Cisco Systems Brussels branch, respectively. Between April 3, 2012 and April 1 2015, Mr. Terzioğlu was a Member of the Board of Directors at Akbank, Aksigorta A.Ş., Teknosa İç ve Dış Ticaret A.Ş. and Carrefoursa A.Ş. Kaan Terzioğlu graduated from the Department of Business Administration at Boğaziçi University.

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Q: After acquiring the largest part of LTE spectrum, Q: You have changed your mobile business you deployed your 4.5G network for LTE-Advanced approach with aggressive OTT services such services on April 1 this year. How is your network as BiP, FIZY, Turkcell TV+, etc. What is your coverage and user penetration today? major strategy in ICT sector to enriching your conventional telecom services portfolio? A: When investing heavily during Turkey’s spectrum auction, we knew that this was the ground work to influence the A: Our growth strategy overall is three-pronged: We will future of technology and communications in Turkey. As you become the market leader of the integrated market in know, the auction was technology-agnostic – an extremely home country Turkey; we will grow our footprint globally visionary step on the side of the regulator. By revamping regionally through organic growth in our subsidiaries and our network with the latest LTE technologies, we, at Turkcell, selective M&A; and finally, we will become a top digital made sure that both our customers and our country make services provider both in Turkey and globally, starting with the most of this important opportunity for many years to our region. come. The focus on services has already started paying off with Since Day 1, we serve our customers in all 81 cities of the 46% of Turkcell Turkey’s revenues in Q2 coming from data country with 4.5G We offer exceptional speeds with carrier and services. The revenue growth in this line of business aggregation. We are very glad to see that the demand from in Q2 is 39.3%. We observe that our OTT services not only our customers has more than matched our own enthusiasm. drive up revenue but also reduce churn significantly. On We had 1 million people on our LTE network on the the other hand, they also help us redefine the concept of a midnight of March 31st, within three minutes of our launch. “Turkcell customer”. All our digital products are all-access - As of the end of Q2 (the first quarter with 4.5G), the data open to the customers of other mobile operators. We have consumption on our network has increased by 33%. Our been successful in reaching out to new customer segments population coverage is 82% and increasing day by day. Half - 41% of our BiP customers are not subscribers of Turkcell as of our mobile customer base has indicated their intention a mobile operator. to use 4.5G and we already have more than 5 million active users. So in the near future, we plan to maintain our all-access approach; continue to focus on bringing together the best Responding to the demand from our customers, we have of the GSM world with the best of the OTT world; and explore accelerated our CAPEX investments – we’ll concentrate our every opportunity to use technology, including 4.5G, to 4.5G CAPEX plans within this year as opposed to having a expand the capabilities of our services. I think that as we more spread out investment plan that covers 2017. move into 5G, a lot more could the done in the services space – joined by AI, AR and VR technologies, mobile Q: What type of new LTE services are your providing services can truly change the experience of communication. in comparison with the previous technologies? Q: What type of innovative services are being A: Turkey was a late-comer in the LTE game but we have developed in-house? Are you exporting any such turned the situation into an advantage. The spectrum that services? we acquired is technology-agnostic; we have launched 4.5G with the most advanced releases of equipment. The A: Turkcell has the largest R&D center of the industry in technology that we are using helps us attain speeds and Turkey with 750 employees. Every year, we rank among the capabilities which would not have been within reach with very top companies across all sectors in patent applications. earlier technologies. It also puts us on track for future 5G Turkcell Group in general also has a similar focus – for development. example, in Belarus, we have an R&D company called Lifetech which employs more than 120 people. These R&D When launching 4.5G in April, we had set the bar high and centers are the backbone of our products and services said that we would transform the TV experience on small portfolio. screen. We have already started to achieve that – the mobile app downloads of our TV platform TV+ have reached Overall, we are a firm believer in partnerships and constantly 1.8 million as video experience on mobile improves to an explore opportunities to grow with a creative, digital unprecedented level. The average mobile video viewing ecosystem. We continue to develop “My Dream Companion” time on Turkcell TV+ has almost tripled since January. - a mobile app for the visually disabled – along with our partner Young Guru Academy. The app was awarded twice 4.5G also helped us redefine other digital products such as by the GSMA for use of mobile for accessibility and includes our music app Fizy. Fizy now has live broadcast capabilities. features which are global firsts such as the first movie audio- Earlier this year, we had simultaneous broadcast from 3 description on a mobile app. cities. Over the weekend of August 14th, 230 thousand people tuned in to watch a concert live – and we keep on Given our R&D focus, we were among the first companies trying this model on Fizy, with matching levels of success. in the region to launched partnerships for 5G R&D. We have bilateral cooperation agreements with Turkish defense We are also experimenting with VR technologies. We have industries company ASELSAN as well as global giants collaborated with Ericsson in the VR broadcast of a basketball Ericsson and Huawei. game and also used VR in Turkcell Platinum Bosphorus Cup.

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Q: You call Turkcell as Integrated Telecoms and Technology Provider. To this effect, what is your target for the next three years?

A: We have indeed defined Turkcell as an integrated operator and we are glad that our customers are keen to make use of all the different alternative services that we can provide. 20% of our mobile customers are now using Turkcell for voice, data and an additional mobile service such as BiP, Fizy, TV+, Smart Cloud and the like. On the fixed side, we are happy to note that 33% of our residential fiber customers have also signed up for IPTV services through TV+.

Overall, our customers are increasingly thinking of Turkcell as an end-to-end provider for a whole range of their communication and technology needs. We have also recently started offering single-billing, a unified customer care - where our call center operators can help with the entire range of mobile and fixed products – as well as a single experience in Turkcell stores. All of these consumer- facing aspects make us Turkey’s first real integrated operator.

We will continue to deepen this integration and increase multi-play ratios in both mobile and fixed as we continue to grow in the coming years.

Q: You and other Turkish alternative ISPs have recently announced plans to launch a joint venture company for greater fiber penetration. What is the purpose of this initiative?

A: Turkcell has been investing in fixed communications for quite some time and today we are the market leader in fiber the Richter scale. The walls and doors of the building are and the leading operator in FTTH. In fixed, we already serve fire-resistant. 1.6 million customers and 59% of that are fiber customers. We’ll continue to grow in this area, but we believe that our It is an investment that we are extremely proud of – it is a own growth is not enough. Turkey as a whole needs to very important step not only for Turkey but for the entire achieve a much greater level of fiber penetration and we region. Facilities like these ensure that the data generated in believe that the most efficient way of doing this is through our part of the world stays here and can be stored, analyzed joining forces. and accessed more efficiently. Our data center will be an important asset as our region gets fully integrated into an Therefore, we took the initiative – along with other alternative ICT-focused mode of industrial production. ISPs – to launch talks for the creation of a joint venture company increase fiber penetration and bring viable FTTH With our new data center in Gebze, our total data center solutions to millions of homes and businesses. The JVC will space tripled to reach 52 thousand m2 . We have also allow for the more efficient use of the existing infrastructure, announced plans to open two new data centers in Ankara create better conditions for future investments while and Izmir, and upon completion of these two data centers, bringing us closer to Turkey’s 2023 growth targets. Overall, we will have 107,000 m2 of data center area. Turkish economy’s resources will be used more efficiently and customers will be able to benefit from services-based competition. Q: Nearly 3 million Syrian refugees have been living in Turkey for several years. Communication Q: You opened an extremely large data center in is defined as a human right. You met the UN Istanbul in June. How big is it and what is your Secretary General Ban Ki-moon representing the data storage plan for Turkey and beyond? telecommunications community in the World Humanitarian Summit in May. What can telecom A: Our new data center in Gebze is spread over a total area sector do for those shelterless people who live at of 33,000 m2. The active area – known as the “white space” refugee camps in a foreign country? - consists of 20 rooms of 500 m2 each. The building has 33 thousand meters of fiber connections. The infrastructure A: As you know, our home country Turkey is the top is supported by a 30-megawatt energy capacity and 25 refugee-hosting nation in this heart-wrenching conflict. generators of 2500 KVA each. Security is maintained with Turkey has welcomed Syrians at this difficult time with a retina-scanning technology, 146 cameras and 6400 control full sense of humanitarian duty – and we are proud to have sensors. With 312 earthquake isolation units, the datacenter mobilized our resources to connect Syrians to life in the can withstand earthquakes of magnitudes of up to 9.0 on worst humanitarian crisis since World War 2.

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As Turkcell, our role is many-fold. The first layer is connectivity. We have responded quickly to acute situations like refugee influx, but we also invested heavily in the regional network over time as southeastern Turkish cities. Today, we are the top operator for Syrian refugees in Turkey, serving more than 1.2 million Syrian customers in Turkey’s overall Syrian population of about 3 million. We provide services in 26 camps.

However, our work doesn’t stop with connectivity. Turkcell operates the only Arabic-language call center in Turkey. We are now mobilizing our services-focused model to facilitate the integration of our guests into their new homes. Turkcell Academy is working on a mobile application which is focused on teaching basic language skills, and on facilitating the lives Q: What is the future of telecom operators in the of refugees with location-based services, frequently asked SAMENA Region? questions including guidance on registration, obtaining identification documents and the like. We also intend to A: SAMENA unites operators from a very special region. expand the app to include video learning and instant audio The global telecommunications world can see a picture of translation (Turkish-Arabic) in the near feature. lower levels of disposable income and ARPU, but we, as the operators of the region, fully understand the potential We also work with innovative partners to bring online of our customers. We cater to populations that are education opportunities to the camps on the back of strong overwhelmingly young and have high demands of being connectivity. We’ll have a number of announcements coming connected to the rest of the world and of benefiting from up in this area, I believe that there is a strong potential for the same services and products. Telecoms in general and our work to be an example to the region as we all struggle mobile communication in particular can achieve more in this with a very difficult period in our collective history. part of the world in terms of enriching and facilitating their lives through access to banking, education, information and Q: Turkcell has operations not only in Turkey entertainment services. We can also help businesses thrive but also in other 8 countries. Do you have any in the connected world and claim a space in the global strategy to increase your foot-print? Where? commercial landscape through connectivity and best-in- class corporate services. A: Earlier this year, we have set the goal of serving 100 million customers globally – including through digital services. In order to achieve this, we need to increase penetration of Turkcell Group already serves close to 70 million customers networks – including fiber – and smartphones. We need to in the countries where we operate, and we believe that our better communicate with health, education, transportation, experience in Turkey and other Turkcell Group countries energy and financial services sectors to create solutions that create a very solid foundation for our future ambitions. can help them leap and help us fully use the potential of communication technologies. All of these industries can We are keen to evaluate potential M&A opportunities serve our societies much better and in much more efficient especially in the countries with which have geographical ways as telecoms services become ubiquitous, reliable and and cultural affinities. This definition automatically includes affordable. We also need to create more content in our local the Middle East, North Africa, Balkans, Caucasus and Central languages. Asia. We obviously look for a number of financial and operational criteria – including a balanced mobile and fixed Q: You are one of the Board Members of portfolio and/or the opportunity to create this kind of an SAMENA Council. What should be the role of this environment – but I believe that, overall, we have a lot to association both regionally and globally? offer in the countries of the region. A: SAMENA is the most influential telecommunications Our focus on services, which I have elaborated on previously, association of the region. As a platform that unites the is not only domestic but also regional and global. Our operators of the region, it is a very significant actor in voicing flagship global app BiP has already been downloaded the shared concerns of its members on local, regional and close to 800 thousand times outside of Turkey, including in global stages. We are glad to see that the annual SAMENA countries where Turkcell subsidiaries do not operate, such as Leaders’ Summit becomes more relevant and engaging Iran and the United Arab Emirates. We look for opportunities every year. to make these products more relevant in each local market, and would be happy to explore options to work with fellow SAMENA also brings together companies that operate operators or service providers on different models. in very different regulatory settings – as such, it is an important platform for exchanges of experience and know- Last but not least, we will increase our footprint with organic how between operators and countries. We need to intensify growth as our subsidiaries become greater players in the these exchanges, and also engage at a deeper level with countries where they operate. lifecell – our subsidiary in institutions like the GSMA, ITU, World Bank and WEF. Ukraine – has rolled out 3G about a year ago. Life:) which In many countries, it can also be a platform for fostering is our subsidiary in Belarus has started 4G services in Minsk dialogue with stakeholders that are not primarily telecoms on August 8th. We believe that both cases have a lot of operators. potential to grow with greater focus on data and services.

7 REGIONAL PERFORMANCE

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Over-the-Top (OTT) Service Trends Shifting Over-the-Top (OTT) Service Trends around the Globe and the Potential for Telecom & OTTP Collaboration

Source: Data approximated from analysis by Informa Telecoms & Media

8 REGIONAL PERFORMANCE

SAMENA TRENDS AUGUST 2016

Source: Data approximated for illustration purposes based on analysis by Alcatel-Lucent and Nokia

9 REGIONAL & MEMBERS UPDATES

SAMENA TRENDS AUGUST 2016

MEMBERS NEWS

technologies for our individual, residential and business customers in order to reach the highest levels of customer satisfaction and enrich our customer’s experience. These investments will support STC strategic role in achieving sustainable growth, enabling STC’s revenue up 6.6% in 1H16 government institutions and private sector transformation to the digital economy in Saudi Telecom Company (STC) has posted a connection with the recently announced net profit of SAR4.241 billion (USD1.13 billion) major national transformation programme for the six months ended 30 June 2016, a and Saudi Vision 2030 which will bring about decrease of 16.2% from SAR5.062 billion important developmental changes in all vital in the year-ago period. STC attributed the sectors of our country.’ MEMBERS decline in net profit to a rise in cost of services and a SAR616 million increase in operating UPDATES expenses during H1 2016, which was mainly due to: a SAR138 million decrease in selling and marketing expenses compared to 1H15, a SAR357 million increase in general and administrative expenses, and a SAR397 million increase in depreciation and amortization. Gross profit for the six-month period totaled SAR14.582 billion, down marginally 0.9% Türk Telekom to continue from SAR14.708 billion in the corresponding infrastructure investments period of 2015. Revenue from services rose 6.6% year-on-year in the first six months CEO says Türk Telekom closed down net- of 2016 to reach SAR26.335 billion, while work where coup plotters were active and EBITDA amounted to SAR9.608 billion, a provided extra data services to security decrease of 3.5% from SAR9.953 billion the forces. Türk Telekom played a major role previous year. STC Group CEO Khaled Bin in helping the elected government over- Hussain Biyari stated: STC’s revenues from come July’s coup attempt, the CEO has services for the second quarter increased told a leading Turkish newspaper. Group 11% and gross profit for the same period CEO Rami Aslan told the newspaper, Hur- increased 3% compared to the comparable riyet, that the operator worked with the period last year. Therefore, we assure that government to deactivate the network STC will continue to expand its fixed and in areas where plotters were active. The mobile networks and will continue to company also provided extra data servic- invest in its infrastructure to introduce new es at the request of the security services,

10 REGIONAL & MEMBERS UPDATES

SAMENA TRENDS AUGUST 2016

Aslan said. “Türk Telekom played a transformation. For companies, their significant role in making the coup ICT systems are shifting from being attempt fail,” he told Hurriyet”We isolated support systems to becoming worked in complete connection with mission-critical production systems the Information Technologies and that support efficient production, op- Communications Board [BTK] and eration, and decision-making. To suc- the Transportation, Maritime Affairs Omantel reveals dedicated ceed in this new era, organizations are and Communications Ministry,” Aslan division for integrated ICT embracing new ICT tools including said, according to Hurriyet. “We im- Cloud, Big Data, the Internet of Things mediately deactivated the telecom- solutions (IoT), and Software-Defined Net- munications services in a number of working. Companies are increasingly Omantel, the Sultanate’s premier tele- key points where the coup plotters focusing on opportunities across a coms provider, today announced the were active, such as the presidency of cloud-pipe-device architecture to ac- formation of a dedicated division fo- general staff, the Akıncı air base and celerate their digital transformation cused on delivering Information Com- the Eskişehir air base, among others, plans. The new division encompasses munication Technology (ICT) services in line with the information from the all these technologies, creating a new to public and private sector clients BTK and the ministry. The data speed ecosystem that completely integrates across the Sultanate. The division of- was also accelerated in the places ICT infrastructure providers and in- fers clients unprecedented opportu- where security forces were needed.” dustry partners to create greater nity for comprehensive technology He said Türk Telekom, which is 30% value for organizations and compa- solutions, made possible by Oman- state owned, will continue its planned nies in the Sultanate. Leading the new tel’s leading global partnerships and investment programme. division is Eng. Fadi Nasser, a Silicon expansive network infrastructure. The Valley veteran and formerly the Chief formation of the new division aligns Alliances Officer at regional leading with Omantel’s vision to bridge the ICT provider. Speaking about the ben- digital divide, roll-out smart technolo- efits the new division offers, Nasser gy and launch innovative business and mentioned, “With the establishment e-Government services, accelerating of the new division, ICT solutions are Oman’s ascension towards better ICT now consolidated onto locally owned preparedness and global standings. and operated platforms and that cli- Commenting on the formation of the ents no longer need to invest in their Batelco inks cloud ser- ICT division, Omantel CEO Talal Al Ma- own ICT infrastructure and applica- mari noted, “We are pleased to unveil vice partnership with tions including the costly constant Omantel ICT, a newly formed division upkeep of underlying technologies Microsoft that enables Omantel to act as the and management of security threats. single point of contact for integrated Bahrain’s Batelco has signed a part- By partnering with Omantel ICT, our ICT solutions including connectivity nership agreement with Microsoft to clients become free to focus on their and next generation smart technolo- improve and elevate productivity for core business without undue distrac- gies. The division will conduct work SMEs through the launch of key so- tion.” A recently published study from integral to achieving the ICT objec- lutions. As part of the partnership, the American research and advisory tives set out by the wise government Batelco has added Microsoft Office firm Gartner points to Middle East IT of His Majesty, including the develop- 365 to its portfolio of cloud services. spending reaching $212.9 billion in ment of digital society, and to use the Microsoft Office 365 is a web-based 2016, which represents a 3.7 percent latest technologies to drive innova- version of Microsoft‘s Office suite of increase from 2015. The report notes tion, enable economic diversification enterprise-grade productivity ap- the continued growth in the Middle and to support the nation’s develop- plications and comprises the most East IT sector is being driven by rapid ment march. The new division offers popular and in-demand office ser- uptake in the digital business arena, unparalleled ICT solutions to clients vices. Two packages, Office 365 Con- and an environment increasingly driv- across the Sultanate, strengthening sumer and Office 365 Business, have en by an interconnected world. The our role as the leader of the digital been designed to suit the needs of substantial industrial refocusing to awakening within Oman. The division small businesses and individuals. Mi- generate new economic development is actively engaged in the roll-out of a crosoft Office 365 package includes beyond the oil industry, with deepen- number of strategic digital platforms Word, Excel, PowerPoint, OneNote, ing smart cities initiatives and adop- across multiple vital segments of Outlook, Publisher and Access. Also, tion of the Internet of Things (IoT), is business and society.” The rapid con- optional add-ons include installation identified as a high priority in the re- vergence of technologies as well as and training and one year support for gion. This demand is also prioritizing the customers’ evermore entangled back up services. Batelco cloud and development for smart city solutions requirements blur the lines and invite ICT product marketing senior manag- in education, transportation, safety more integrated solutions that relieve er Hussain Mohammed and Microsoft and health. “At Omantel, we also have fragmentation challenges on the side Bahrain and Oman General Manager the ability to leverage existing net- of the customer while promising bet- Sherif Tawfiq signed the agreement at works and our cutting edge facilities ter commercial efficiencies brought Batelco’s Headquarters on August 8 in right here in the Sultanate, resulting about from the economies of scale the presence of officials from both or- in improved access performance and of such offerings. The overall strat- ganizations. The Microsoft Office 365 guaranteed data jurisdiction, a critical egy for Omantel ICT underlines how packages are available for existing advantage over ICT platforms which the regional economy is undergoing and new customers. are based abroad. Additionally, given a massive change driven by digital Omantel’s size and market standing,

11 REGIONAL & MEMBERS UPDATES

SAMENA TRENDS AUGUST 2016 we partner with major international participation in the international league Ooredoo’s group customer technology providers in order to of- of swimming in Kazan (Russia, 2014), she fer our clients some of the world’s has been selected to participate in Rio base up 14% to 130 million latest Tier-1 integrated solutions. By 2016 Olympics. Commenting on this Revenue at Qatar-based Ooredoo Group choosing Omantel for their complete sponsorship, Wafa Izzelarab, Market- reached QAR15.914 billion (USD4.366 ICT solution, customers also have the ing Communication Senior Manager of billion) in the first six months of 2016, opportunity to benefit from economy “Sudani” said: “We are so proud to see a as growth in Qatar, Oman, Indonesia, of scale principles, to receive better Sudanese young girl in an international Myanmar, Algeria, Kuwait, Palestine and value and advantageous commer- competition. Haneen is our ambassa- the Maldives drove a 2% rise in group cial models,” concluded Fadi Nasser. dor to Rio and we hope to see more sales in local currency terms, but foreign Investing in the future of the nation, Sudanese young people taking part exchange effects caused a reported Omantel connects even the most re- in such competitions, internationally. currency revenue decline of 1%. The mote communities of the Sultanate to Our company is encouraging the youth group’s total customer base increased each other and the rest of the world. segment in all areas and this is why we by 14% year-on-year to 130 million at Omantel is the Sultanate’s first and created a dedicated network for them”. 30 June 2016, driven by strong mobile leading integrated telecommunica- growth in Indonesia and Myanmar. Group tions services provider, enabling the EBITDA rose marginally from QAR6.456 digital society to flourish, allowing billion in H1 2015 to QAR6.478 billion new ways of doing business and de- a year later, with an improved EBITDA livering a world of information, news margin of 41% in 1H16, up one percent- and entertainment. Today, Omantel age point. Group net profit attributable boldly innovates to deliver the high- to Ooredoo shareholders increased est levels of customer satisfaction, by 46% to QAR1.462 billion, driven by the broadest and most reliable na- Ooredoo Oman to further strong contributions from Indonesia, tionwide network while investing for Myanmar and Algeria, supported by Oman’s future development. invest millions on network positive forex movements. Underlying expansion data revenue increased to 39% (QAR6.2 billion) of consolidated revenue in H1 Ooredoo Oman, leading Omani com- 2016 (H1 2015: 34%), whilst B2B revenue munications provider, which enjoys increased by 5% to QAR2.8 billion re- almost a 3-million client base, is in- flecting Ooredoo’s ongoing investment vesting RO 60 million this year in ex- in services for business customers. panding its network and enhancing Recent developments highlighted by service quality to its customers, ac- Ooredoo include its market-first launch cording to its CEO. Speaking to the Sudatel’s youth network of 4G LTE in Myanmar (May 2016) and Observer, Greg Young, CEO, Ooredoo pre-commercial LTE phase finalized in initiative (AYWA) sponsors Oman said, “A substantial amount will Algeria (July 2016), whilst 4G networks be invested in enhancing our 4G In- one of the youngest par- are now operated in eight of Ooredoo’s ternet quality and coverage, with the ten main markets. ticipants in the Olympics aim of providing additional value to As part of its young people network our customers”. The telecoms ser- program, “Sudani” decided to sponsor vice provider also completed their one of its youth network subscriber fibre optic network across the length participating in Rio 2016 Olympics. and breadth of the country, span- Haneen Sami, 15 years old, is one of ning 5,500 km and more than 100,000 the successful stories sponsored by households will be able to ben- “Sudani” via its youth network initiative efit from their superfast fiber home (AYWA) designed especially for the youth broadband to their doorstep by the Microsoft launches UK, segment. The program offers special year end. “Next year we will see a fur- services, offers and ways of communica- ther increase to 180,000 households Italy carrier billing tion, adapted to the youth life style in who can enjoy superfast speeds, as we continue to push our great value- Following the launch of carrier billing order to create a positive energy inside in the US, Germany and Switzerland, youth communities and to support them added plans out to the market. Once customers have experienced fiber, the companies have expanded their making their dreams come true. Haneen agreement to bring direct carrier bill- is the youngest Sudanese swimmer to they won’t want to go back”, Young added. Ooredoo has seen a growth ing to Windows Store customers in participate in Rio 2016 Olympics and she the UK and Italy, through respective is also one of the youngest participants rate of 3.2 per cent in terms of over- all customer base, helping it to reach partnerships with O2 and Wind. “Mi- in the Olympics in general. She started crosoft is a superb partner for Boku, her journey of success when she was 6 almost 3 million customers this year; years old with a full support from her mobile customers growing at about family. She joined the Sea Scout club in 2.5 per cent, fixed customers by al- Khartoum when she was 10 years old most 34 per cent, mobile broadband and she participated in different local by 8 per cent and data revenues have and international competitions. She won grown to become more than 50 per more than 23 Gold medals in national cent of total revenues. and international competitions. After her

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SAMENA TRENDS AUGUST 2016 and our relationship has been made As part of the deal, PCCW has signed baba Cloud’s anti-DDoS products sold even stronger with the addition of UK an overseas content distribution and distributed through PCCW Global and Italy,” said Jon Prideaux, CEO of agreement with STX to bring original will offer businesses comprehensive Boku, which has more than 260 car- and first-run Hollywood content, in- protection against all types of DDoS rier connections, reaching 4 billion cluding recent US hit Bad Moms, as threats, including complex layer 7 ap- mobile subscribers worldwide. Mi- well further strengthening its content plication-level attacks. The automatic crosoft 10 customers on O2 or Wind offerings of its over-the-top (OTT) and cloud-based service monitors compli- subscriptions can use their mobile pay-TV businesses by co-producing ance violations and security breaches account as a payment option when regionally tailored programmes for to provide real-time threat visibility. making purchases in the Windows PCCW to distribute across its pay- Mr. Marc Halbfinger, Chief Executive Store. Recent Kanter statistics indicate TV and OTT services in Hong Kong, Officer of PCCW Global, said, “We that O2 owns 33% of all cellular plan are pleased to be play- subscribers in the UK and Wind owns ing a role in extending 33.5% of all cellular plan subscribers Alibaba Cloud’s capabili- in Italy. Prideaux addd: “In a matter ties to new markets. The of months, our agreement with Mi- relationship with Alibaba crosoft has expanded from one major Cloud is a remarkable developed market to five, and covers opportunity to provide all Windows 10 devices; from phones our combined custom- and tablets, to desktop computers. ers with the very best in This rapid expansion, with much more data security, customer- to come, is proof positive that carrier service quality, and net- billing is becoming the world’s pre- work coverage. Adding ferred alternative payment, regard- Alibaba Cloud’s security less of consumer access to credit or products to our threat bank cards.” According to Ovum, OS identification systems will app stores are predicted to be the Southeast Asia and India. “The new offer enterprises a holistic perspec- largest revenue-generating segment alliance represents an important mile- tive of complete security needs.” Mr. for carrier billing by 2017. Windows stone in expanding PCCW’s strategic Sicheng Yu, Vice President of Alibaba 10 is seeing steady growth glob- investments into compelling content Group and General Manager of Aliba- ally, having already been installed on creation, not only for audience in ba Cloud Global, said, “We are excited more than 350 million devices. Carrier Hong Kong but also for international to deepen our strategic cooperation billing has experienced a surge over audiences in markets which we op- with PCCW Global. It is a great col- the past year with Microsoft’s launch erate,” said PCCW Media Group MD laboration to empower both of our of carrier billing coming shortly after Janice Lee. “STX’s wide release of films customers in Hong Kong and Asia Apple’s adoption of carrier billing for and scripted television series can also by leveraging Alibaba Cloud’s robust iTunes, which were recently launched be distributed across PCCW’s pay-TV cloud security capability and PCCW in Germany and Russia. Further mar- and OTT platforms, thus bringing the Global’s expertise in international net- ket rollouts with new carriers and best content to viewers in Hong Kong work.” Alibaba Cloud’s cloud platform Boku, which is widely reported to be and in the region.” has a proven track record in handling powering carrier billing on iTunes, are extremely high traffic levels which can expected over the coming months. easily be a target for DDoS attacks. PCCW Global and Alibaba Alibaba Cloud’s success in processing Cloud expand strategic co- a peak order volume of over 140,000 orders per second during Alibaba operation to collaboratively Group’s 11.11 Global Shopping Fes- protect businesses against tival last year is a powerful validation of Alibaba Cloud’s security reliability. cyber attacks DDoS attacks occur when multiple systems are used to flood the ac- PCCW takes equity in Alibaba Cloud, the cloud comput- cess capacity of a targeted system. ing arm of Alibaba Group, and PCCW In recent years, sophisticated DDoS STX to offer unique con- Global, the international operating attacks have increased in frequency, tent across Asia division of HKT, Hong Kong’s premier size and complexity. Alibaba Cloud telecommunications service provider, successfully thwarted one of the Hong Kong quad-play provider PCCW jointly announced today their expand- world’s largest cyberattacks on De- Media has acquired an equity inter- ed strategic collaboration to provide cember 20, 2014, protecting a gaming est in US-based STX Entertainment in cloud based anti-DDoS (distributed app company from a 14-hour long order to bring more premium content denial-of-service) security products DDoS attack with peak attacking traf- to viewers in Hong Kong, South East to enterprises. The two companies fic of 453.8 gigabits per second. Not Asia and India. STX specializes in the have cooperated to provide network only has Alibaba Cloud nullified some development, production, marketing and IDC (Internet Data Center) ser- of the largest cyberattacks in history and distribution of talent-driven films, vices in Hong Kong since June 2015. but its security technologies are now television and digital media content, The new collaboration will deliver Ali- scalable such that PCCW Global will with a unique ability to maximize the baba Cloud’s world-class anti-DDoS be able to offer service guarantees impact of content across worldwide, products to international business for various forms of security applica- multiplatform distribution channels. customers through PCCW Global. Ali- tions. Since the acquisition of Crypteia

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Networks in 2014, PCCW Global has technologies in a real-world setting. UAE by establishing and maintaining been a leading provider of cybersecu- Ibrahim Nassir, Chief Human Capital close, productive collaborations with rity for global enterprises across mul- & Administration Officer at du, said: academic institutions, industry and tiple network layers. In China, Alibaba “We are excited to announce this ini- the community. du will deliver innova- Cloud has developed its own world tiative that will allow the UAE to ef- tive communications solutions in or- class anti-DDOS software and security fectively compete with the advanced der to generate social and economic services. This collaboration will fur- markets and bring UAE’s voice to the value for the nation. Moreover, du will ther protect their customers and busi- technology development debate. The develop the skills of UAE students. nesses from the ever increasing threat UAE will be a major industry devel- of cyberattack. opment leader and we can only do this through collaboration between industry and academia. We plan to work closely with suppliers and SMEs and eventually train future UAE aca- demic and industry leaders. The pro- gramme will be open for all UAE uni- versities and industrial organization Huawei enables Lebara that need to be part of the state-of- Mobile KSA to launch du announces UAE 5G the-art 5G ecosystem development.” “The inauguration of U5GIG adds first Mobile Virtual Net- Innovation Gate (U5GIG) further impetus to the initiative of work Enabler in the re- for development of next His Highness Sheikh Mohammed Bin Rashid Al Maktoum, Vice-President gion generation 5G & IoT and Prime Minister of UAE and Ruler systems of Dubai, in establishing the UAE as a Huawei and Lebara Mobile KSA have global leader in all aspects and as an announced the commercial launch of UAE-based telecommunications ser- innovator in technology in the Middle Lebara Mobile’s first Mobile Virtual vice provider - du, announced the East region,” he added. du, as well as Network Enabler in the region. Lebara establishment of UAE 5G Innovation other consortium members will jointly Mobile leverages Mobily’s advanced Gate (U5GIG). The U5GIG has been supervise a 5G research programs telecom network in the Kingdom envisioned to be a consortium of with the major UAE universities and to deliver cost-effective voice and technical and academic organizations based on carefully selected practical data service to Saudi customers. The in UAE as well as global telecom ven- 5G research topics. Accordingly, UAE launch of Lebara Mobile KSA ushers in dors to plan and use their expertise to shall contribute and participate in the the next evolution of mobile connec- define and develop a global 5G net- standardizations and development of tivity in the region with the creation work that will radically change lives 5G in forum such as 3GPP, ITU, and of the Kingdom’s first Mobile Virtual across the UAE. du is taking the lead GSMA. Although 5G is a few years Network Enabler (MVNE). MVNEs provide turn-key communications infrastructure and related services to other MVNOs and businesses who, in turn, can offer hosted mobile services to their customers while leveraging the MVNE’s hosted network, services, billing and CRM systems. “Lebara Mo- bile KSA is the first MVNE host in KSA and the Middle East, and will serve as the enabler of many new businesses in the mobile industry while acceler- ating the digital transformation of the region,” said Fadi Kawar, CEO Lebara Mobile KSA. “Advanced, cost-effective mobile services are critical to busi- nesses today and through our ad- vanced mobile virtual network which is based on Mobily’s superior mobile infrastructure, we are able to serve regional telecom business by meet- ing their communications needs and to build a UAE 5G Innovation Lab to away, the U5GIG will be pushing the delivering value-added services that prototype, test and validate early 5G boundaries of what is possible now accelerate their growth.” Huawei was and Internet of Things ( IoT) equip- and in the future and participate in able to help design and then deploy ment and services. U5GIG will also the development. The true impact of the Lebara Mobile network in less than allow universities and technical orga- 5G will come from the innovative ap- 30 weeks, putting in place the tools to nizations across UAE to work together plications and IoT-use cases, the new migrate to the new network without and participate in the development of network will enable. The aim of this any loss of critical data or functional- the 5G ecosystem, and for academia initiative is to bridge the gap between ity. Huawei provided support in plan- and industry to test applications and telecom industry and academia in ning and implementation of the core

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SAMENA TRENDS AUGUST 2016 network elements while deploying the Emirates Telecommunications Corpo- We congratulate the firm on building full range of Business Support Servic- ration (Etisalat) has announced the synergies across industries on a global es to provide end-to-end telecommu- completion of the sale of its 92.3% and regional scale, and hope that with nication services, as well as a range of stake in Sudanese fixed line operator SAMENA Council membership, goetz- value-added services to Lebara Mo- Canar Telecommunication Company partners will also help to develop syn- bile. “Huawei is particularly proud of (Canar) to the Bank of Khartoum. The ergies that can positively impact ICT its partnership with Lebara Mobile transaction was finalised on 7 August, development in our region. SAMENA KSA, as this network represents a first- after securing all regulatory approvals Council is always on the lookout for of-its-kind in the region and a new from Sudanese regulator the National pushing the ICT agenda of sustain- era in digital communications ser- Telecommunications Corporation (NTC) able growth among stakeholders vices for the Middle East as a whole,” and the country’s competition authorities. who share the vision for empowered, said Chen Jianhan, COO of Huawei UAE-based Etisalat added that the final digitally-led economic development.” KSA. “The telecom industry needs to consideration received for its shareholding goetzpartners is well placed to benefit move rapidly towards an open digital amounted to AED349.6 million (USD95.2 from SAMENA Council’s pan-regional ecosystem, and Huawei is commit- million). Etisalat signed a share purchase reach and stakeholder engagement, ted to collaborating with customers agreement with Kuwait-based Zain Group focused on enabling fruitful dialogs in and industry partners to achieve this. for the sale of its 92.3% stake in Canar the ICT industry, and to leverage the Lebara Mobile KSA’s network is proof in May 2016, but one month later, the breadth of opportunities to network of the effectiveness of embracing this UAE telecoms group announced that with decision-makers representing ecosystem and delivers digital ser- the Bank of Khartoum, which holds a both operators and regulators. vices seamlessly anytime, anywhere, 3.7% stake in Canar, had exercised its and on any device.” Huawei believes right of first refusal regarding the sale that telecom providers must be able to Zain Group. to deliver the ROADS experience to stay competitive, encompassing five fundamental characteristics of the ultimate user experience in a fully connected world - Real-time, On-de- mand, All-online, DIY, and Social. To- Mobily reports net profit day, Lebara Mobile delivers on these of SAR35.4m in 1H16 five key characteristics based on Hua- wei’s ROADS vision, and will foster an goetzpartners joins SA- Saudi Arabia’s mobile operator Eti- open industry ecosystem that will en- had Etisalat (Mobily) has published able innovation and accelerate the re- MENA Council as a member its financial results for the six months gion’s digital transformation. Through SAMENA Council has announced ended 30 June 2016, reporting a 7% Lebara telecom platform supported that goetzpartners, an independent decrease in revenues year-on-year by Huawei, Lebara Mobile will begin advisory firm for all key issues driv- to SAR6.729 billion (USD975 million), to offer high-quality MVNO services ing entrepreneurial activities – Strat- down from SAR7.236 billion in H1 to regional players in the coming egy, M&A and Transformation – joins 2015. The drop was mainly due to de- months. Huawei will continue to col- SAMENA Council as a member. Erik creases in interconnection revenues, laborate with Lebara Mobile on build- Almqvist, Managing Director Middle as a direct result of the new mobile ing win-win scenarios as it continues East at goetzpartners, says: “Digital termination rates (MTRs) introduced to expand its services in the region. transformation, innovation and agility in April 2016, coupled with a drop in are the very heart of our DNA. Hav- handset sales. Further, a SAR1.238 bil- ing served some of the world’s larg- lion increase in EBITDA to SAR2.246 est corporations in Strategy, M&A billion in 1H16 was attributed to and Transformation, we are thrilled to growth in gross profit by SAR214 mil- serve the Middle East with SAMENA lion (reflecting continuous cost opti- Council as a key strategic partner.” mization efforts) and an increase in He adds: “SAMENA Council has an general and administration expenses excellent track record in bringing the by SAR934 million in H1 2015 (due to Etisalat completes sale leaders of the telecommunications booking a SAR800 million additional of Sudanese telco Canar sector together. We see a number of doubtful debt provision towards Zain challenges and opportunities for the Saudi Arabia), with EBITDA margin im- Middle East Operators to proving to 33.4% (13.9% in 1H15). Net evolve in the fields of dig- income also grew, with the operator italization, cost and pro- reporting profit of SAR35.4 million, up cess efficiency, customer from net loss of SAR945.4 million in experience and sustain- the corresponding period of 2015. able value delivery.” Bo- car BA, CEO of SAMENA Council congratulated goetzpartners and re- marked, “I am pleased to welcome goetzpartners to the SAMENA Council.

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REGIONAL NEWS

Huawei aims to increase acquired 46% of mobile phone market sales in Egypt during the third quarter market share to 30% in of 2015, compared to 58% in the same Egypt with new products period of 2014. It referred to the decline in the company’s market share in Egypt. in 2017 According to the report, Nokia-Microsoft ranked second with a market share of 20%, Company’s sales grew by 158% during while Huawei came third with a market the first half of this year compared to the share of 8.7% during the first three months same period last year. It came as a result in 2016. Sony ranked fourth with a market of the company’s broad base of different share of 4.6%, while Lenovo acquired 4.4% products in terms of specifications and of market sales occupying the fifth place prices that meet the needs of various social in the local market. HTC acquired 3.5% of segments. He added that Huawei relies on REGIONAL the market sales during the same period the Y family of products to increase its sales in 2016, while the rest of market sales and market share during the current year. UPDATES estimated at 19.8% were shared by Oppo He pointed out that Huawei Y5II and Y3II Electronics, Tecno Mobile, G-TIDE Mobile, achieved sales of 42,000 mobile phones Honor, and Infinix. during the first 50 days following their release in the market last year. Huawei sold about 500,000 mobile phones from Sri Lanka Telecom to the Y family last year, which helped the company acquire the second highest provide global connectivity market share of smartphones locally. The backhauling facility via Sri company now plans to raise its market share to 30% over the next year. Li noted Lanka that his company, like other international Sri Lanka’s National ICT solutions provider, companies, has suffered from the US Sri Lanka Telecom PLC (SLT) has gained dollar crisis currently facing the Egyptian full landing status of SMW5 Cable Station economy. However, Huawei managed to in Matara, aiming to be a key regional overcome this issue by releasing devices player by offering state-of-the-art global that suit the local market and the Egyptian services provided through multiple consumer. Huawei launched its new international undersea cable systems that mobile phone Y6II with a 5.5-inch screen run through Sri Lanka. SLT’s International in the Egyptian market on Tuesday. The Backhaul Network consists of three main International Data Corporation released cable stations at Colombo, Mt Lavinia and a report, which showed that Samsung Matara connecting to SLT’s international

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SAMENA TRENDS AUGUST 2016 backhaul hub at the Welikada SLT Smartworld to set up the UAE’s first- security breach could jeopardize all premises. All these stations are well of-its-kind ‘Cyber Security Centre’, he their efforts. connected by OTN NW on which the said that mobile threats will continue transport will be based dedicatedly to flourish this year. The days where reserved international connectivity PC-like exploit kits for smart phones 3G/4G Users in Pakistan to any cable system runs through are easily available is not far away. Reach 32 Million Sri Lanka. Through this project, Smartworld, a joint venture between multiple undersea optical fiber cable etisalat and Dubai World Central, 3G and 4G users reached 32 million systems: SEA-ME-WE 5, SEA-ME-WE is behind the implementation of IT in Pakistan at the end of July 2016 4, SEA-ME-WE 3, Bharat-Lanka and systems at Al Maktoum International as mobile phone companies added Dhiraagu-SLT will be interconnected Airport at Dubai World Central (DWC), a total of 2.2 million new 3G and through a highly reliable and Terminal One and Terminal 2 at Dubai 4G users to their networks during redundant very high capacity Fiber International Airport. According to the reported month. Mobile phone Optic Ring. The company, with this statistics shown at the Cyber Security companies grew their 3G/4G users by dedicated international backhaul Centre on Monday, the US, China almost eight percent, up from negative will be exploring for more global and Ukraine are the top three origins growth that operators showed just a business opportunities and Business of attack and the US, UAE and Spain month ahead in June 2016. According Impact of this would be the use of the are the top three targeted countries. to Pakistan Telecommunication cable system for traffic termination “The threat landscape will be more Authority, Mobilink alone added 1.2 in the country, cross connecting with complicated day by day. It needs million new 3G users on its network other cable systems and enhancing more knowledge, experience and while Zong added another half million capacity. Exploring such opportunities, more complex solutions to handle the 3G users during the month. Total SLT identifies the challenge of current type of attacks. Cyber security number of 3G users by the end of backhauling traffic through Matara is not a solution and the measures July 2016 stood at 30.62 million while Cable Station and routing through developed a year ago will not be 4G users reached 1.16 million by the Colombo Cable Station because all enough to protect organizations in time. Entire 3G/4G subscriber based other submarine cables systems and today’s threat landscape. Threats reached 31.78 million. Mobile phone domestic operators are based in do change overnight and so do the users in Pakistan, from all operators, Colombo. By considering the growing security solutions,” Kayyali said. He said touched 133.28 million marks by demand for international bandwidth the “cat and mouse game” between the end of July 2016, marginally up in the country & exploring new the hackers and security solutions from 133.24 million a month ahead. opportunities, establishing scalable providers will continue indefinitely and Ufone and Warid lost over 700,000 mesh protected, WDM international become more complicated as each customers combined during July 2016. backhaul NW is vital. Backhauling day passes by. Dr. Saeed Al Daheri, Mobilink and Zong added almost Global Connectivity options have to Chairman of Smartworld, said that 709,000 users during the reported maintain the highest level of Service the centre will train UAE nationals in month, while Telenor added 77K users Level Agreements (SLA) standards cyber security and provide round-the- during the month. Total additions in because it transports domestic as clock advanced security monitoring mobile phone subscriptions during well as international traffic. Therefore, along with cyber threat management the month netted under 100K. we are capable of providing scalable to companies across the government mesh protection to global operators. and private sector in the UAE. Saif Tunisie Telecom seals deal Al Ketbi, senior vice-president of with GO; now owns 65.4% Nation-state protection technology at Abu Dhabi Airports Company and advisory to Smartworld, of GO share capital against cyber attacks said that the UAE and Dubai are making tremendous progress in Tunisie Telecom has announced the required; UAE ranked adopting the world’s latest smart successful conclusion of the Voluntary second after the US technologies. “These advancements Public Offer made by its fully owned bring with them the responsibility to subsidiary TT ML Limited for shares The country of UAE is now the second ensure safety from external threats. in GO p.l.c., thus acquiring 65.4% of most targeted country after the US, Particularly as we witness the launch GO’s total issued share capital. “As per according to statistics shown at the of several mega projects and hosting announcement dated 17 August 2016, UAE’s new Cyber Security Centre, which the Expo 2020, the progress in the all the conditions to the Offer, set out was opened on Monday. Dr. Mounes area of smart technology is set to in the Offer Document dated June Kayyali, CEO of security solutions be massive,” he said. According to a 14, 2016, have been satisfied, and provider The Kernel, told Gulf News Kaspersky survey, costly attacks are completion of the necessary share that Anonymous, an international now almost routine with 90 per cent transfers as well as settlement of the group of hacktivists (hacker + activist), of the 5,500 companies surveyed Cash Consideration have been duly and other hacker groups have reporting at least one security effected. As a result of the completion been conducting cyber espionage incident and nearly half, 46 per cent of of the offer, through TT ML Limited, attacks against state-owned energy businesses, lost sensitive data due to Tunisie Telecom now holds 66,281,050 companies. It’s inevitable that nation- an internal or external security threat. ordinary shares in GO. The remainder state attacks will grow and become Al Ketbi said that most organizations of the shares in GO are in free float the new norm for hackers, he said. pay greater attention to developing on the official list of the Malta Stock After signing a deal with Dubai-based and implementing projects. However, Exchange, “thereby allowing GO to information and communication they need to include security right retain a strong local shareholder technology (ICT) services provider at the planning stage of a project. A base. Commenting on the closing

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SAMENA TRENDS AUGUST 2016 of the transaction, Nizar Bouguila, with fixed line incumbent Pakistan said in a statement. “For Telenor Chairman and Chief Executive Officer Telecommunication Company Ltd Pakistan, this represents a huge of Tunisie Telecom, said: “With today’s (PTCL). ProPakistani writes that the leap forward towards realizing our transaction close, GO will become a deal will enable Zong to access the ambition of bringing Internet for All key player within the Tunisie Telecom incumbent’s nationwide fiber-optic and empowering Pakistan with digital group, enabling us to capture key network whilst PTCL will also deploy, technology,” the statement reads. growth opportunities in Malta and operate and maintain 789km of Telenor Pakistan was the only bidder Cyprus, both high potential European new fiber to connect Zong’s base for 4G spectrum during a recent markets, and to fulfil our strategic transceiver stations (BTS) for data auction of a 10 MHz block in the objectives. We are confident that backhaul. 850-MHz band. The operator secured Tunisie Telecom and GO can achieve the spectrum for $395 million. The more together than we can apart, operator will be competing against unlocking numerous benefits and Zain Saudi secures China Mobile subsidiary Zong, which synergies for both companies that USD600m loan to repay this week announced it has expanded will enable us to deliver long-term its 4G coverage to over 100 cities value for all our stakeholders. I now previous borrowings nationwide. look forward to working with GO’s Saudi Arabian telecoms operator Zain local management team to build on has inked a long-term commercial Qatar stimulates TMT our combined strengths and start borrowing facility worth SAR2.25 delivering on our vision to create billion (USD600 million) with a two- sector growth a leading trans-Mediterranean year tenor that is extendable by one In line with Qatar National Vision 2030 telecoms platform spanning from additional year (until 8 August 2019). and the hosting of the 2022 World Cup, North Africa to Malta, Cyprus and The new facility agreement signed Qatar has taken measures to stimulate Greece.” The transaction was first with the Industrial and Commercial many of its vital sectors by providing announced on May 23, 2016, when Bank of China will replace an existing financial support and issuing related GO declared it had selected Tunisie syndicated facility, and the proceeds regulatory legislation and incentives Telecom as the final preferred bidder will be used to repay a commercial mainly in the fields of infrastructure, for the Company’s shares. loan signed in June 2016. The hospitality, health, technology, previous loan was provided by a media and telecommunications. syndicate led by Arab National Bank Ooredoo invests USD155m In relation to technology, media and also included Banque Saudi and telecommunications, Qatar’s in fixed, mobile networks Fransi, Gulf International Bank and commitment to support these sectors Samba Financial Group. The new Ooredoo Oman has earmarked has seen the formation of the Ministry borrowing facility has improved terms investment of OMR60 million (USD155 of Transport and Telecommunications and will reduce financing cost by million) for this year, as it seeks to and the Ministry of Culture and approximately SAR175 million over expand its fixed and mobile network Sports. These two recently- the three-year period, Zain Saudi said. infrastructure and enhance service established Ministries are intended quality for consumers. The Oman Daily to consolidate efforts and focus on Observer quotes the firm’s CEO Greg Telenor Pakistan launches the development of the technology, Young as saying that a ‘substantial media, telecommunications and amount’ of the funds will be invested 4G services sports sectors, as well as securing in increasing the coverage and quality Telenor Pakistan has commenced various expertise required to meet of its 4G LTE services, adding that a nationwide 4G rollout launching market demands. To further assist by the end of the year, more than services in six cities. The company in the growth and development of 100,000 households will have access will offer 4G services to customers these areas, an array of legislation has to Ooredoo’s high speed fiber-to-the- free of cost as a promotional exercise been issued, which aims at regulating home (FTTH) network. ‘Next year we in the initial launch areas, which these sectors and setting out related will see a further increase to 180,000 include select locations in Karachi, investment rules. While the general households who can enjoy super-fast rule for foreign investment in Qatar speeds, as we continue to push our is that a local Qatari partner must great value-added plans out to the hold at least 51% of the shares of market,’ Young was quoted as saying. any business to be established in The company, which is majority- Qatar, the Qatar Foreign Investment owned by Qatar’s Ooredoo, reported Law No. 13 of 2000 as amended (the a total fixed and mobile customer “Foreign Investment Law”) exempts base of 2.841 million at the end of governmental projects from the June 2016, an increase of 3.2% from application of this rule. In particular, 2.753 million twelve months earlier. the Foreign Investment Law permits a foreign investor to establish a Zong inks fiber deal with Lahore, Islamabad, Multan, Peshawar branch office (the “Branch”) that can and Swat. Customers in the cities be utilised in circumstances where PTCL will be able to obtain 4G SIMs at the a foreign investor is performing operator’s sales and service centers a specific governmental-related China Mobile Pakistan (CMPak), which and franchises. Telenor Pakistan plans contract in Qatar in various sectors, operates under the Zong brand name, to rapidly roll out the service to other including technology, media and has signed a fibre leasing agreement cities in the nation, the operator telecommunications. Such a Branch

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SAMENA TRENDS AUGUST 2016 shall be allowed to perform the Cyber Security Insights Report here on in neighboring networks. It may be specific contract for which it is Wednesday, revealing that 6,538,262 recalled that Telenor was granted registered and a Qatari partner is not people have been victims of cyber 2x10MHz block in 850MHz spectrum necessary. The Foreign Investment attacks and affected by online crime. for $395 million earlier this month. Law also exempts some sectors from The report further reveals that close According to details, Zong’s spectrum the application of the general rule, to half (46 percent) of the millennials is placed right next to Telenor’s one such sector being information have experienced cybercrime newly acquired spectrum with a gap technology services. Furthermore, in compared to only 37 percent of the of just 3.5MHz. Telenor’s spectrum response to substantial technological younger generation. Surprisingly line ends at 879MHz while Zong’s advancements, the Supreme Council nearly two in every five millennial uplink band starts at 882.5 MHz, of Information and Communications admitted to sharing passwords with with just 3.5MHz as a total buffer Technology drafted Qatar’s first another person despite understanding between both the networks. This close comprehensive e-Commerce law in its associated risks. Speaking on proximity, at few locations where 2010. The Electronic Commerce and the occasion, Eyas Hawari, country Telenor was testing its 4G network, Transactions Law No. 16 of 2010 (the manager for Symantec Saudi Arabia, caused interference in networks “E-Commerce Law”) was enacted said: Unfortunately, online crime has of other operators. Resultantly, with the aim of facilitating and become commonplace in Saudi Arabia mobile operators petitioned the providing a clear legal framework to with 58 percent of the population Islamabad High Court that Pakistan address matters such as electronic having experienced it in the past Telecommunication Authority should transactions and electronic signatures. year.” He added: “This is 10 percent ensure there is no interference The E-Commerce Law also allowed higher than the global average of between Telenor and other networks for electronic or data messages to 48 percent and strongly reinforces due to the new spectrum. Pakistan be used where a law requires that the need for a shift in the mindset of Telecommunication Authority has information or documents be in consumers in the country.” He said said that Telenor is already mandated writing. This is provided that the consumers need to be more proactive (through IM and license terms) to information or document is accessible in protecting their precious personal deploy receive filters on its towers so as to be used for subsequent data and be aware that taking simple to confine its network usage with- reference by every person that has precautionary steps can easily help in the allotted spectrum. For those a right to access the information thwart potential attacks. With an who don’t know, “receive filter” is a or document. This was considered increasing number of individuals hardware installed on telecom towers as a considerable development in connected and using mobile devices, to confine network communication evidentiary requirements for courts cyber threats are becoming ever from interfering other frequencies. in Qatar. Although the application present among all age groups as one According to network professionals, of some of these initiatives may in four consumers have had their these receive filters cost around USD face practical challenges, they mobile device stolen, potentially 1,000 per installation and will cost reflect Qatar’s vision to support exposing sensitive information in Telenor around 3 million dollars if the development of its economy their e-mail, social media and banking such filters are installed at 50% of and infrastructure and to develop apps to cyber thieves, he said. its entire tower base. In actuality, the sectors including technology, According to the report one in seven Telenor may have to deploy receive media and telecommunications, by users has had the identity stolen, filters at around 2,000 cell sites. making it easier for foreign investors one in six has had someone breach Parvez Iftikhar, a telecom consultant, to do business in certain fields and their social media account, one in told ProPakistani that such receive modernising the ways in which every four respondents indicate their filters will only be required: On sites commerce can be undertaken. e-mail account was breached by a operating in 900MHz band owned hacker. Surveying 1,000 individuals by Telenor or other operators (Not all in the Kingdom, the research by sites are in 900MHz, both for Telenor Cybercrime hit 6.5 million the software security provider also and other networks. Even in 900 band, in KSA last year discusses the consequences of only those sites where operators are consumer cybercrime in its report. The using them for 3G as 2G does not Over 6.5 million people in the consumers lost close to a day dealing need such filters. Additionally, it will Kingdom were affected by cybercrime with the repercussions of online also depend on several other factors, last year, according to American crime, revealed the report, adding it like location of the site/s and which software security provider Symantec also cost an average of SR3,230 per part of 900MHz band they have PTA that conducted a survey in the person with consumers losing over told ProPakistani that newer operators Kingdom. Norton, by Symantec, SR21 billion in total. (Telenor in this case) are obligated released its findings from the Norton by license terms to deploy receive filters, like Mobilink once did back Telenor 4G Spectrum is when Instaphone was operational. Causing Interference for PTA also explained that this is a usual practice around the world, in Other Telcos: Petition Filed fact in India — in one instance — Islamabad High Court has accepted there’s a spectrum gap of 1.5MHz a petition filed by mobile phone between two operators. Telenor operators in which they have Pakistan, when asked for comments contended that Telenor’s recently on the matter, said that it received acquired 850MHz — that it is using for the commencement certificate from 4G network — is causing interference Pakistan Telecommunication Authority

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SAMENA TRENDS AUGUST 2016 on Thursday, 4 August 2016 for the In another four years, Oman Broad- tor (mainly banks and insurance com- use of 3G and 4G services on the newly band aspires to cover major part of panies) that sent a handsome amount acquired 850MHz spectrum, whereas the Sultanate, as the cabling of optic of $531 million in the same period. the court order inviting our comments fiber has been going on a fast scale However, the profit repatriation of the on the use of the said spectrum, has and the telecom service providers are telecom companies has dropped by just been received. Telenor said that offering “excellent cooperation”. After 31.8 % as compared to previous finan- the matter is currently sub judice becoming fully operational, the Oman cial year of 2014-15, during which tel- therefore it cannot comment on the Broadband, according to Al Rashdi, cos had remitted $258.6 million. The proceedings of the case. “We would would be able to cover the rural urban reduction of the profit was recorded like to highlight that Telenor Pakistan divide of fast and slow network, as the mainly due to investments made by is working closely with the Regulator technology adopted herein is state- cellular operators in Pakistan from and Frequency Allocation Board in of-the-art with a capacity to serve their earnings which is also called as order to ensure strict adherence to across the Sultanate. The problems reinvestment of revenues in the oper- legal requirements and international like limitations of spectrum and back- ating market. According to Economic best practices for the use of spectrum haul connectivity would be addressed Survey of 2015-16, the estimated to serve our customers and fulfill with the installation of new towers. revenues of telecom sector stood at our ambition of providing Internet The broadband services, according to Rs 332 billion in three quarters that for All and Empowering Pakistani Al Rashdi, have great value addition in ended March 31st, 2016 as compared Societies with Digital Technology”, the areas of public safety healthcare to Rs. 449 billion during four quarters Telenor further said in its response to and education which ultimately would of 2014-15 The decline in revenues is ProPakistani. Islamabad High Court have positive reflection on the na- in line with the international trend of has set August 25 for the hearing of tional economy. “The broadband fa- profitability and revenues in telecom the case, where PTA is likely to clarify cility offers networking to vast online industry, the report had mentioned. the situation in the court. service facilities which helps people to Moreover a declining trend in rev- connect for business and investment enues of telecom operators was also opportunities. It helps them negotiate observed due to loss of millions of Oman Broadband sets and interact with clients and end ser- cellular subscribers after BVS Re- veri- target at 130,000 units vice users in a better way,” he said and fication process and intense competi- added that the broadband facility also tion and low tariffs. After the launch by year-end offers availability of quality content of 3G and 4G services, cellular opera- Oman Broadband keeps an ambitious for all kinds of academic needs, diag- tors are challenged by Over-The-Top target of reaching to 130,000 houses nostic and therapeutic services and (OTT) services which provide alternate by the end of 2016 as it already has ac- enhancing precautionary measures channels through apps for customers cess to 60,000 houses in Muscat. The for public safety by supporting early to make free chats, voice and video national broadband company of the warning systems and disaster readi- call services. It is pertinent to mention Sultanate aspires initially to assist the ness programmes. here that telecom sector’s continued government to achieve its larger goal to invest in Pakistan as collectively of e-government and serve the na- Omantel ends WorldCall injected $210.4 million during the tional aspiration of serving the people outgoing financial year. Overall, the with the smartest possible broadband takeover talks multinational companies and local facility. This was stated by Hamood al companies with foreign shareholding Oman Telecommunications Company Rashdi, Manager Business Relation- repatriated $1.91 billion to the dif- (Omantel) has ended discussions with ship, during the opening of the Oman ferent countries in the financial year an investor interested in purchasing Broadband Exhibition at the Salalah 2015-16 which is 16.7 % ($275 million) a majority stake in WorldCall, its Tourism Festival (STF). He called the higher than previous year in which the Pakistani ISP division, after the two occasion as reaching out to people amount stood at $1.637 billion. parties failed to reach a favorable and raise awareness about the ser- agreement. Omantel did not name vice. The exhibition opened under the the investor, although Allied Supplies Telecom Egypt board gives auspices of Salim bin Aufit al Shanfari, and Services and Dunya Technologies Chairman of Dhofar Municipality, in preliminary approval for were previously linked to an offer. presence of officials from the Ministry 4G license acquisition of Transport and Communication and telecom service providers. “Our target Telcos Sent $176 Telecom Egypt (TE) has announced is to cover 80 per cent of Muscat by that its board has tentatively ap- 2020 and 95 per cent of the Sultan- million Profits Back To proved plans to acquire a 4G mobile ate’s urban area by 2030,” he said in Headquarters during concession, Reuters reports, citing a his comments to Observer. Com- statement made by the company on menting on current status of Oman 2015-16 the Egyptian stock exchange website. Broadband, Al Rashdi said: “Currently Multinational telecommunication TE’s board of directors is said to have we are doing optic fibre cabling in as- companies, mainly the cellular opera- given its preliminary approval on 28 sociation with three telecom service tors, sent back $176.2 million profit July, with a full study of the 4G license providers -- Omantel, Ooredoo and to the countries of their headquarters plan to now be presented to the in- Awasr.” “We are also assisting gov- during the closing financial year 2015- vestment committee. Commenting ernment service providers like power 16, according to the data provided by on the matter, an unnamed TE official and water bodies in offering them the State Bank of Pakistan (SBP).The tele- was cited as saying: ‘Telecom Egypt best possible links in their effort to com sector earnings — that were sent will provide the service within a year serve the people in a better way and back to their respective countries — is of obtaining the license due to its save cost on infrastructure,” he said. the second highest after financial sec- need for experts to run mobile ser-

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SAMENA TRENDS AUGUST 2016 vices, prepare networks and work on havioral, genetic and biological sys- pense on loans and ‘4.5G’ payables; agreements.’ tems” to track criminals. The Dubai and a higher amortization expense Future Foundation is already housed due to the 4.5G license. Operation- in the world’s first 3D printed building, ally, Turkcell Group reported that its Dubai to invest $275 and Dubai Municipality is aiming to combined subscriptions amounted to million in global innovation build on this and use new technolo- 66.5 million as at 30 June 2016, down gies such as robotics and biomimicry from 69.5 million one year previously. initiative to develop ‘nature-inspired’ buildings Within its domestic unit, post-paid The Dubai government on Tuesday that will use three times less energy mobile subscriptions rose 5.7% y-o-y said it plans to invest 1 billion dirhams and carbon dioxide and are five times from 15.9 million to 16.8 million, while ($275 million) over the next five years more efficient. Companies can now pre-paid mobile users fell 12.7% from in a new initiative that challenges apply online at www.dubaifutureac- 18.1 million to 15.8 million. In terms global companies to brainstorm tech- celerators.com to be part of the pro- of Turkcell Turkey’s broadband cus- nological advances across several sec- gram. tomers, fiber connections increased tors, including healthcare and urban 18.1% from 817,600 to 965,400, with planning. The initiative, Dubai Future Batelco launches country’s ADSL subscriber numbers also rising, Accelerators (DFA), was launched by from 528,000 to 675,2000 (up 27.9%). the Dubai government and Dubai fastest residential broad- ‘We trust that the markets will remain Holding earlier this year to harness band package strong, despite short-term volatil- new technologies, such as robotics, ity’, commented Turkcell CEO Kaan artificial intelligence, 3D printing, bio- Bahrain Telecommunications Com- Terzioglu, adding: ‘We have entered mimicry, and biotechnology, to ad- pany (Batelco) has launched what it this period with previously taken pre- dress challenges expected to be faced claims is the country’s fastest resi- cautionary measures. Having funds by the United Arab Emirates (UAE) dential broadband package, with for investment and expansion that over the next decade. The main focus download speeds of up to 500Mbps. we believe are adequate for the next will be on healthcare, transportation, Costing BHD150 (USD395) per month, three years, having already taken vari- renewable energy, sustainability, edu- the tariff includes upload rates of up ous actions against currency risk and cation, security, and urban planning, to 50Mbps, 1TB usage limit, and free operating our business on the basis the Dubai Future Foundation, which weekend browsing, while it is avail- of disciplined financial policies at all is behind the initiative, said in a press able to new and existing customers. times, we are able to perform soundly release. The DFA “will be an important Additionally, the operator has in- during this period.’ and strategic contribution to the re- creased the speeds of its existing fi- gional investment market, attracting ber internet plans. ‘The enhancement Turkish ISPs plan JV to the world’s best start-ups and compa- forms part of Batelco’s ongoing im- nies to compete for new opportuni- provements on its home broadband further fixed broadband ties that make a positive difference in packages,’ commented CEO Muna Al roll-out the world,” cabinet minister Moham- Hashemi, adding: ‘and we are contin- med Al Gergawi, who is vice chair- uously expanding our state of the art Turkey’s alternative ISPs announced man of Dubai Future Foundation, was fiber network to reach more custom- plans to work on a joint venture com- quoted as saying in the statement. ers and meet the consumers changing pany. Turkcell Superonline, Vodafone The foundation’s CEO, Said Al Aleeli, needs.’ Turkey, TurkSat and members of Tel- said that the competition would cre- koder (Telecommunication Operators ate a “global market worth billions Association) launched negotiations of dollars” to help solve challenges Turkcell posts group rev- for the JV, with the aim of invest- common to governments around the enue growth of 8.6% in ing more efficiently in Turkey’s fixed world related to urban planning, in- broadband infrastructure. The even- Q2 2016 tual JV will allow the efficient use of Turkcell Group has published its results existing infrastructure, and create bet- for the three months ended 30 June ter conditions for future investments 2016, reporting year-on-year revenue by removing the need for duplicate and EBITDA growth of 8.6% and 3.5%, infrastructure-building, Turkcell said. respectively. Total group revenue Also, the company believes the in- reached TRY3.358 billion (USD1.1 bil- dustry as a whole will benefit from lion) in the quarter, up from TRY3.093 fairer conditions in investment and in billion in Q2 2015, while EBITDA rose provision of services, while the Turk- from TRY994.8 million to TRY1.029 ish economy’s resources will be used billion in the same period; the group’s more efficiently as ultrafast broad- EBITDA margin, meanwhile, stood at band penetration increases. Turkcell 30.7%, against 32.2% twelve months CEO Kaan Terzioglu called for a joint earlier. Net income totaled TRY416.1 venture for fixed broadband con- million, down 41.6% from TRY712.0 nectivity as early as September 2015. frastructure and social services. The million one year earlier, mainly due Turkcell previously announced that challenges range from reducing water to: a translation loss in Q2 2016, com- Turkey could save up to USD 12.6 bil- and energy consumption, to develop- pared to a translation gain in Q2 2015; lion if three major operators were to ing prototype automated transport the negative contribution of its Fintur invest jointly rather than separately. systems that reduce congestion and subsidiaries; lower interest income carbon dioxide emissions, to enhanc- from time deposits due to a lower ing policing through “integrated be- cash balance; increased interest ex-

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Number of Unique Mo- total subscriber base. The number of by increased take-up of mobile ser- unique mobile subscribers is forecast vices. Africa’s mobile ecosystem also bile Subscribers in Africa to reach 725 million by 2020, account- supported 3.8 million jobs in 2015 Surpasses Half a Billion ing for 54 per cent of the expected and made a $17 billion contribution population by this point. African mo- to the public sector via general taxa- More than half a billion people across bile subscribers are rapidly migrating tion. The number of jobs supported is Africa are now subscribed to mobile to mobile broadband networks and forecast to rise to 4.5 million by 2020, services as the continent continues to services, a result of ongoing network while the tax contribution is expected migrate rapidly to mobile broadband rollouts and the increasing availability to increase to $20.5 billion. The report networks, reveals a new GSMA study. of affordable mobile broadband de- also explains how mobile is power- “More than half a billion people across vices and tariffs. Mobile broadband ing innovation and entrepreneurship Africa are now subscribed to a mobile (3G/4G) accounted for just over a across Africa. It notes that there are network, providing them not just with quarter of total connections2 at the now approximately 310 active tech connectivity but a gateway to a range end of 2015, but is expected to ac- hubs across the region, including 180 of other essential services in areas count for almost two-thirds by 2020. accelerators or incubators. Mobile such as digital identity, healthcare and By mid-2016, there were 72 live 4G operators are supporting this ecosys- financial services,” said Mats Granryd, networks in 32 countries across Africa, tem by opening up APIs to third-party Director General, GSMA. “The rapid half of which have launched in the last developers in areas such as messag- ing, billing, loca- tion and mobile money, which has allowed start-ups to scale quickly. Mobile technol- ogy is also playing a central role in addressing many of the social chal- lenges in Africa, including the abil- ity to provide citi- zens with official identities, tackling the ‘digital divide’ by enabling ac- cess to the mobile internet, and deliv- ering financial in- clusion via mobile money services. The number of mobile subscrib- ers in Africa that access the mobile internet has tri- pled in the last five years, reaching move to mobile broadband networks two years. Meanwhile, the number of 300 million by 2015, equivalent to a is also unlocking new opportunities smartphone connections3 in Africa is quarter of the African population. An for consumers, businesses and gov- forecast to more than triple over the additional 250 million subscribers are ernments, growing an ecosystem that next five years, rising from 226 million expected to become mobile internet last year added more than $150 bil- in 2015 to 720 million by 2020. users by 2020, bringing the total to lion in value to Africa’s economy.” 550 million (41 per cent of expected population). “The positive transfor- Network Investments and Smart- Mobile’s Contribution to African mational impact of mobile is being phones Driving Mobile Broadband GDP, Jobs and Public Funding to In- felt more profoundly in Africa than Adoption crease anywhere else in the world; Africa’s The report finds that there were 557 The use of mobile technologies and mobile industry is at the forefront of million unique mobile subscribers1 services across Africa generated $153 helping to deliver the United Nations’ across Africa at the end of 2015, billion in economic value last year, Sustainable Development Goals5,” equivalent to 46 per cent of the con- equivalent to 6.7 per cent of the re- added Granryd. “We are focused on tinent’s population, making Africa gion’s GDP4. This contribution is ex- creating a better future for citizens the second-largest - but least pen- pected to increase to $214 billion by and businesses across Africa, provid- etrated - mobile market in the world. 2020 (7.6 per cent of expected GDP) ing access to essential information Africa’s three largest markets - Egypt, as countries in Africa continue to ben- and services, improved employment Nigeria and South Africa - together efit from the improvements in pro- and economic opportunities, and accounted for around a third of the ductivity and efficiency brought about greater productivity and competitive- ness.”

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Regulatory NEWS

France and Germany urge the Economic Times writes. Under the 2009 agreement that saw DOCOMO take reform to access encrypted a 26.5% stake in Tata Teleservices (TTSL), messages the Japanese group was given the option of exiting the partnership if TTSL failed to French Interior Minister Bernard Cazeneuve meet certain financial targets, in which met with his German counterpart, Thomas case DOCOMO would receive either a fair de Maiziere, on 23 August to discuss market value for its shares or 50% of the anti-terrorism proposals. Following the original purchase price. DOCOMO chose meeting, Cazeneuve told the press in Paris to enact this option in March 2014, but that France and Germany will put forward the matter quickly stalled. Tata was unable a European initiative to tackle the problem to find another buyer for the shares but, of messaging encryption used by Islamist as existing laws stipulated that no foreign extremists, to be discussed at the EU investor could exit its investment at a pre- Regulatory summit taking place on 16 September. In determined price or with assured return, particular, Cazeneuve said that messaging it was not permitted to pay the previously Updates service operators such as Telegram, which agreed price of INR58 (USD0.86) per has so far been reluctant to cooperate share – INR72.5 billion for the entire with the authorities, should be compelled stake – instead of the INR23.34 per share to provide access to encrypted content valuation determined by independent to terrorism investigations. The French assessors. minister urged the European Commission to pass new legislation targeting encrypted Responding to calls to intervene in the messaging services provided by both EU matter, the government has made it clear and non-EU companies, creating the right that it does not want to become embroiled legal framework to strengthen national in the issue, as it would require the security. retrospective amendment of rules dating back to 2007 – an extreme measure with potentially far-reaching consequences Government rules out which the government is reluctant to intervention in DOCOMO/ implement. As noted by TeleGeography’s GlobalComms Database, Tata was ordered Tata dispute by a London arbitration court in June 2016 The Indian government does not intend to pay damages of USD1.62 billion to its to relax rules to allow Japan’s NTT Japanese partner, whilst DOCOMO would DOCOMO to exit its joint venture with release its shares in the cellco to Tata. Tata Group at a pre-determined price,

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India among nations with other countries that claimed the 1,50,000 crore worth of spectrum. US exerted too much control over Operators and analysts alike have most stringent EMF norms the global internet. In addition to criticized the high reserve price of the privatizing the DNS system, the new 700 MHz band, which is deemed best The department of telecommunica- structure aims to enhance ICANN’s for deploying 4G services, particularly tions has taken it upon itself to ad- accountability as a fully independent due to the relatively immature dress concerns raised by many activ- organization answering to a wide handset and equipment eco-system ists and groups on the health hazards range of stakeholders around the for the frequency. While all the emanating from electromagnetic field world. ICANN will hold its quarterly airwaves being put for auction can (EMF) emissions from mobile tow- conference call with stakeholders on be used to deploy 4G services, due to ers. Telecom Secretary J S Deepak 18 August to provide an update on its the high propagation characteristics, has been organizing awareness pro- work and the transition plans. the spectrum in the 700 MHz band grammes across the country to edu- is considered premium. The cost of cate municipal corporations, doctors providing service in it is one-third and residents’ welfare associations Spectrum auctions: DoT of 3G service in 2100 MHz band. that India has among the most strin- The government will put under the gent EMF norms in the world. Ad- estimates just half of hammer 2,354.55 MHz of airwaves for dressing members of government airwaves will be sold sale in seven bands – 700 MHz, 800 and medical fraternity at an event in MHz, 900 MHz, 1800 MHz, 2100 MHz, Mumbai, J S Deepak categorically said With the telecom service providers 2300 MHz and 2500 MHz — with a consumers cannot access mobile tele- anticipating a muted spectrum reserve price of Rs 5.56 lakh crore, phony services without mobile towers. auction, which are proposed to begin compared with 470.75 MHz in the He said: “Telecom towers are critical from September 29, the Department previous round that saw bids worth installations on which the backbone of Telecommunications (DoT) itself has Rs 1.10 lakh crore. Moreover, analysts of wireless communication rests and gone through the numbers to arrive at expect that in other bands as well, unfounded apprehensions around a fair estimate of what the exchequer operators are expected to pick up EMF emissions have the potential to could be making from this year’s sale spectrum only based on their needs, derail our growth story.” Broadband of airwaves. Notwithstanding the which this time around would be to penetration is directly connected with operators’ sense of apprehension fill gaps in their 3G and 4G mobile the rate of growth of any economy. about the demand of spectrum from internet services. “The September Citing statistics, Deepak said that a 10 the upcoming auctions due to a percentage points increase in broad- band access leads to an increase in per capita GDP by 1.38 per cent. India is still a digital have-not compared to many other countries but in the next few years, India will add over 300-400 million broadband subscribers. Most of these will be mobile broadband us- ers. And if people have to be part of a 24/7 network then mobile towers will have to be allowed in streets, residen- tial buildings and public places.

US to cede control of DNS system to ICANN from October number of reasons, the DoT’s estimate 2016 auction will be the first in the also fails to inject any optimism to past three years without material The US government has approved the exercise. According to internal ‘renewal’ spectrum on offer — not a the transition of internet domain estimates of the DoT, spectrum worth ‘gun on the head’ auction for most management to an independent just 50 per cent of the base price is operators, in our view,” brokerage organization under ICANN. The expected to be picked up by the firm Kotak Institutional Equities said. National Telecommunications and operators in this year’s auctions. A “To this end, this auction is a critical Information Administration, part of senior DoT official, on condition of test of the operators’ rationality; an the US Department of Commerce, said anonymity, said that airwaves worth auction where operators need to it received on 12 August a letter from Rs 2,74,800 crore is likely to be bought guard against getting swayed by ICANN saying the transition of all tasks by telecom companies this year competitive spirits and bid with long- would be completed by the deadline against a reserve price of Rs 5,56,000 term interests in mind; no self-goal, of 30 September. As a result, NTIA crore as approved by the ministry in other words,” it added. Director said it intends to allow ICANN to take based on the recommendations of General of industry body Cellular over the contract to run the Internet the sector regulator. Of this, spectrum Operators Association of India (COAI) Assigned Numbers Authority from only in the premium 700 MHz band Rajan S Mathews said that while the 01 October as planned. The US first has a base price of over Rs 4,00,000 quantum put up for auction was agreed in early 2014 to cede control crore, of which, the DoT official cited favorable the demand was expected of the internet domain management above said, it was estimated that to be different band-wise. “We see organization under pressure from companies could pick up close to Rs relatively good demand for 1800

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MHz band, some demand for 2100 which uses full-scale encryption on Jio, which is expected to launch MHz and 2300 MHz band. Limited WhatsApp, said in its response to commercially later this month, has demand for 700 MHz, 800 MHz and the Commission’s public consultation attracted 1.5 million users to free 900 MHz bands. I will be surprised that extending the rules to online voice and data services in a test if there are any takers for 2500 MHz messaging services would mean phase. “This is no test. This is the band,” Mathews said. Mathews also they could in effect “no longer be provisioning of full-blown and full- said that the Telecom Regulatory able to guarantee the security and fledged services masquerading as Authority of India’s move to bring out confidentiality of the communication tests, which bypass regulations and a consultation on interconnect usage through encryption” because can potentially game policy features charges shortly before the spectrum governments would have the option like the IUC (interconnection usage auction dates being announced raised of restricting the confidentiality charge) regime, non-predatory some “red flags” and the exercise right for national security purposes. pricing, fair competition etc,” wrote could potentially throw in uncertainty “Therefore, any expansion of the Rajan Mathews, director general of to the auction process. current ePD (ePrivacy Directive) COAI, which represents incumbent should not have the undesired operators such as Bharti Airtel, consequence of undermining the Vodafone India and Idea Cellular. EU: OTT players face telco- very privacy it is seeking to protect,” However, Reliance Jio is also a like regulation the company said. Tech companies member of COAI. Its commercial have been at loggerheads with launch promises to disrupt the status The European Union is planning to national governments and police quo in the Indian market. The letter extend telecom rules covering security agencies over the use of encryption. argued existing license conditions do and confidentiality of communications Advocates of strong encryption not provide for testing of free voice to web services such as Microsoft’s argue the technology is vital for and data services. “In order to ensure Skype and Facebook’s WhatsApp, protecting the privacy of consumers compliance to license conditions and which could restrict how they use and businesses. EU Commission Vice- the Trai regulations and guidelines, encryption. The rules currently only President Andrus Ansip has spoken we request your urgent intervention apply to telecoms providers such as out in the past in favour of encryption. in this matter and instruct the said Vodafone and Orange. According to The EU document said that the exact licensee to stop such practices,” the an internal European Commission confidentiality obligations for web letter requested to DoT. “Further, they document seen by Reuters, the EU firms would still have to be defined. should be instructed to immediately executive wants to extend some of The Commission could also force disconnect all such connections the rules to web companies offering the companies to allow their users provided to [the] general public under calls and messages over the Internet. to take a copy of their content, for the guise of test connections,” added Telecoms companies have long example emails, with them when COAI. Such a suggestion, if followed, complained that web groups such as they switch providers, according to would cause a headache for Reliance Google, Microsoft and Facebook are the document. The EU executive will Jio’s launch plans and annoyance for more lightly regulated despite offering propose a reform of the ePrivacy Mukesh Ambani, the chairman of similar services and have called for rules later this year, while a broader Reliance Industries. the EU’s telecoms-specific rules to overhaul of the EU’s telecoms be repealed. They have also said rules will come in September. The that companies such as Google and Commission said it was considering India demands unpaid Facebook can make money from the whether the scope of the current license, spectrum fees use of customer data. “Unlike telcos, rules needed to be adapted needs “to OTT (web-based) are global players ensure adequate levels of consumer The Indian government has issued that are allowed to commercially protection and ensure that regulation demands to six cellcos relating to exploit the traffic data and the does not distort competition.” “This underpaid spectrum and license location data they collect,” telecoms does not necessarily mean treating fees during the four financial years group Orange said in a response all communications services the 2006/07-2009/10, following a report to the EU’s public consultation on same for all purposes,” Commission from the Comptroller and Auditor the reform proposals. Under the spokeswoman Nathalie Vandystadt General (CAG) earlier this year. The existing “ePrivacy Directive”, telecoms said. Economic Times cites finance minister operators have to protect users’ Santosh Kumar Gangwar as saying in communications and ensure the a note to the upper house, the Rayja security of their networks and may not India’s trade body COAI Sabha, that the operators had under- keep customers’ location and traffic accuses 4G newcomer reported revenues during the four- data. The EU rules also allow national year period to the tune of INR460.45 governments to restrict the right to Reliance Jio of breaking billion (USD6.88 billion), leading to confidentiality for national security a shortfall in license fees, spectrum and law enforcement purposes. Many rules usage charges (SUC) and interest (up tech companies such as Facebook The Cellular Operators Association of to March 2015) totaling INR72.76 and Google already offer end-to-end India (COAI) said newcomer Reliance billion. The six cellcos in question encryption on their messaging and Jio Infocomm is offering a full-blown were Reliance Communications email services. They argue there is no mobile service disguised as a trial. (RCOM), Tata Teleservices (TTSL), need to extend the telecoms rules to According to Electronic Times, the Vodafone India, Bharti Airtel, Idea web services and that the EU should industry group wrote a letter to the Cellular and Aircel. ‘The government not dictate how they protect their country’s telecom department (DoT) has issued regular demands for all users’ communications. Facebook, highlighting the issue. Reliance the four financial years and special

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SAMENA TRENDS AUGUST 2016 audit demands for two financial years by the CTIA, the American Cable resolution system, so data subjects 2006/07 and 2007/08. These demands Association, the National Cable and may file and resolve complaints overlap the short falls pointed out Telecommunications Association and about how their data is handled. in the CAG report,’ the official said, USTelecom request a hearing in front The European Commission has also adding: ‘On the basis of special audit of the full DC Circuit Court of Appeals, published a guide for citizens on the demands of INR18.47 billion and an en banc hearing, rather than the principles of the agreement, how they INR11.19 billion as license fees and three-judge panel that ruled against can expect their data to be handled spectrum usage charges were raised. them in June. “It comes as no surprise by businesses and organizations and These demands are subjudice.’ that the big dogs have challenged what to do if they suspect misuse. A the three-judge panel’s decision,” new independent ombudsperson will said Wheeler. “We are confident also be available for complaints about Cabinet green lights new that the full court will agree with the alleged violations of privacy and spectrum usage price floor panel’s affirmation of the FCC’s clear misuse of personal data by national authority to enact its strong Open intelligence services. The cabinet has approved the Internet rules, the reasoned decision- Telecom Commission’s decision on making upon which they are based, the spectrum usage charge (SUC), the and the adequacy of the record from Telecoms Minister Economic Times reports. The decision which they were developed.” Expert challenges ICASA’s plans to set a floor of 3.00% of annual gross opinion would appear to be against revenues for the SUC, which will the trade groups, and in favour of allocate mobile spectrum otherwise still be based on a weighted the FCC’s position. For instance, South Africa’s Minister of Telecom- average. Further, the decision set a flat Andrew Schwartzman, Benton senior munications and Postal Services, Si- SUC of 3.00% for all spectrum bands in counselor at the Public Interest yabonga Cwele, is seeking to halt the the upcoming tender, down from the Communications Law Project at Independent Communications Au- 5.00% levy on frequencies purchased Georgetown University Law Center’s thority of South Africa (ICASA) from in the 2015 sale. As previously Institute for Public Representation, proceeding with plans to allocate reported by CommsUpdate, many wrote in a recent article, quoted by spectrum in 700MHz, 800MHz and operators – notably incumbents Motherboard: “The likelihood that 2600MHz bands for wireless broad- such as Bharti Airtel, Vodafone India the full DC Circuit would agree to band services. According to a state- and Idea Cellular – had requested rehear the case, much less reverse the ment posted on the website of the the introduction of a flat SUC for all panel’s decision, is extremely remote.” Department of Telecommunications operators and across all bands, but “The DC Circuit typically agrees to and Postal Services, Cwele intends to the Telecom Commission was forced rehear a case only a few times each launch legal action to review the ac- to reject the request on the basis year, at most, usually where there is tions of the ICASA, as the government that it could not increase the charge a sharp split on an important issue has yet to finalize the policy on how for broadband wireless access (BWA) on which other circuits have taken the spectrum should be allocated. spectrum in the 2300MHz band above a different stance. This case doesn’t ‘The position of the government is its current 1%. With the introduction meet those criteria and thus starts out that it is the custodian of spectrum, of the new SUC, Reliance Jio as a particularly poor candidate for which is a national and public re- Infocomm and Aircel will both have rehearing,” he added. source and whose utilization must to pay a slightly higher SUC. Aircel’s benefit all the people of South Africa. charge will increase from 2.83% to There is presently no policy direction the minimum of 3.00% whilst RJIL’s US start certification for on spectrum that has been issued. fee will increase to 3.05% from 2.88% new privacy shield terms The policy process is ongoing but as under the previous regime. The 0.05% yet is still incomplete,’ the statement over the minimum is due to RJIL’s The new ‘privacy shield’ agreement on said. It added that the minister is con- spectrum sharing agreement with the transfer of personal data between cerned that the ICASA’s Invitation to Reliance Communications (RCOM). the US and the European Union has Apply (ITA) for the spectrum was ‘is- By contrast, Airtel, Vodafone and become operational. The bilateral sued without consultation and prior Idea will pay 3.80%, 4.80% and 4.50% agreement replaces the previous ‘safe notification to the government as the respectively. harbor’ designation for the US, which policy maker’. As previously reported was struck down by the European by TeleGeography’s CommsUpdate, Court of Justice for not meeting EU earlier this month the ICASA issued FCC chief bites at “big privacy standards. As of 01 August, an ITA for spectrum in the 700MHz, businesses can ‘self-certify’ through dogs” on net neutrality 800MHz and 2600MHz bands to all a special website set up by the US interested parties wishing to provide Federal Communications Commission Department of Commerce to ensure wireless broadband services. The reg- (FCC) chairman Tom Wheeler hit back they meet the criteria for protecting ulator said that awarding frequencies at questioning of the US regulator’s personal data transferred across in the aforementioned bands would authority to enact the Open Internet the Atlantic. The certification must ensure nationwide broadband access rules. A clutch of leading US trade be renewed annually. Each business for all citizens by 2020, in line with groups are pressing for what is called wanting to make trans-Atlantic data the National Development Plan (NDP) an en banc review of a June decision transfers must develop its own privacy and the South Africa Connect Policy. by a US appeals court that the FCC policy incorporating the 23 principles has authority to impose utility-style of data protection enshrined in the regulation on broadband providers to privacy shield and also set up an ensure an open internet. The petitions independent recourse mechanism, such as joining an alternative dispute

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A snapshot of regulatory activities in samena region

Afghanistan Algeria President: Dr. President: Mr. Mohamed Mohammad Najib Azizi Ahmed Nacer [Afghanistan [Regulatory Authority for Telecommunication Post & Telecommunication Regulatory Authority (ARPT)] (ATRA)] Djezzy, a subsidiary of Global Telecom, Sector watchdog the Afghanistan Telecom aims to launch fourth generation wire- Regulatory Regulatory Authority (ATRA) has urged less services (4G) in Algeria this autumn, the nation’s mobile providers to intro- during the last quarter of 2016, accord- Updates duce biometric verification for SIM regis- ing to an investment report by Global tration as soon as possible. Whilst the of- Telecom. The company explained that the ficials committed to put such a policy into 4G network is considered a major step place soon, the cellcos are unlikely to be towards supporting Djezzy’s situation af- in a position to act on the proposals for ter revenues declined during the second some time, as the government’s efforts quarter (Q2) of 2016 at an annual rate of to introduce national electronic ID cards 15%, dropping to $27.4m compared to – complete with biometric data – have $32.2m in Q2 of 2015. This plan comes recently foundered. Neighboring Pakistan after Global Telecom merged its Pakistani completed a re-verification project last subsidiary Mobilink with Warid Telecom year, which required all mobile customers in July, which will result in the number of to confirm their identity with their mobile subscribers to this new venture reaching provider via biometric verification – in this 50 million users. The report showed that case a thumbprint scan. Pakistan chose to the base of subscribers of the subsidiar- reinforce its SIM registration procedures ies’ services expanded during Q2 of 2016 after an attack on a school in Peshawar at an annual rate of 5% to reach 86.6 mil- in December 2014 revealed that phones lion subscribers, compared to 82.5 million used in the attack had used fraudulently subscribers in Q2 of 2015. Global Telecom verified SIMs.(August 18, 2016) telegeography.com is paying special attention to growing mobile data revenues. This was clear in

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SAMENA TRENDS AUGUST 2016 the results of Q2 this year, which showed a growth in mobile Prime Minister gave approval to the proposed merger of data revenues at an annual rate of 56%. This reflects the cellcos Robi Axiata and Bharti Airtel. An official from the company’s shift from depending on traditional voice and Telecoms Division of the Ministry of Posts, Telecommuni- message services to digital services. Global Telecom’s total cations & Information Technology (MoPTI) was quoted as profits in Q2 of 2016 reached $26.5m, compared to $42m saying that the PM endorsed all the clauses and conditions in the same period last year. Revenues suffered a decline, set by the division for the amalgamation of the two opera- dropping to $693m compared to $736m during the same tors. Telecom Secretary, said that the approval file will now period last year. (August 6, 2016) dailynewsegypt.com be sent to the Bangladesh Telecommunication Regulatory Commission (BTRC), with ‘only some formalities left to com- plete the merger,’ according to Secretary. The newspaper Bahrain adds that the BTRC’s legal team said a court hearing on Chairman: Dr. Mohammed Alamer the issue has been scheduled for August 4; if the PM’s ap- [Telecommunication Regulatory Authority proved copy is received before that date, it will be placed before court. As one condition of the deal, Robi must sub- (TRA)] mit a specific plan on human resource management to the Telecommunications Regulatory Authority regulator to ensure job security following the merger. On (TRA) Bahrain launched its first interactive quality of service January 29, 2016 Malaysian-backed Robi and Indian-owned portal (https://qos.tra.org.bh/), enabling users to benefit Airtel signed an agreement to merge in Bangladesh under from access to the latest information on broadband qual- the name of Robi, which would create the second largest ity of service through various reporting tools including cellco in the country. Parent groups Bharti Airtel and Axi- but not limited to; Social Media performance per mobile ata subsequently deferred the deadline for the merger to network, Internet performance of ISP’s, Streaming experi- September 26, 2016. Under the agreement, Axiata will take a ence over broadband networks and more. Users seeking 68.3% controlling stake in the combined entity, while Bharti to make specific performance queries will now be able to will hold 25%, and the remaining 6.7% will be held by Robi’s choose their own search parameters and decide for them existing minority shareholder NTT DOCOMO of Japan. which particular service provider can best suit their unique (August 2, 2016) telegeography.com needs. TRA has implemented this monitoring solution utiliz- ing several probes across the Kingdom’s governorates that Country’s oldest mobile operator, CDMA-based Pacific Ban- are deployed to simulate and collect samples that shed light gladesh Telecom Limited, trading as CityCell, reportedly on customer experience. These probes conduct continuous faces potential shutdown after the latest demand from the tests of various services in order to enable the measurement Bangladesh Telecommunication Regulatory Commission of service quality around the clock, thus reflecting user ex- (BTRC) to pay all its dues worth BDT4.77 billion (US$60.7 perience for each Internet Service Provider (ISP) and Mobile million) by August 16. The regulator also ordered CityCell Network Operator (MNO). The portal also comes in tandem – part-owned by SingTel of Singapore – to create an option with the release of TRA’s Second Quarter Broadband Qual- for its subscribers to switch to an alternative operator. ‘City- ity of service report, which now hosts the quarterly report Cell’s service quality has deteriorated, which leads to loss directly on the portal’s home page. Some of the major high- of its market share. If the trend continues, the operator will lights this quarter show that LTE Network Performance has face a drastic fall in the number of subscribers,’ said a BTRC made a substantial leap forward compared to the results official. Another report, from the Daily Star, claims that the of the previous report released in June. TRA Acting Direc- BTRC is also preparing to cancel CityCell’s rights to its wire- tor of Consumer Affairs and Media Ms. Taiba Albinlai ex- less spectrum, noting that the number of CityCell subscrib- pressed that “We expect data conscience consumers would ers fell sharply after a biometric SIM registration process be happy to find the noticeable difference in performance.” was introduced, standing at around 760,000 including mo- He continued, “It’s worth noting the importance of finding dem users at end-June 2016, by far the smallest user base of solutions to provide Bahrain’s consumers with services that the country’s six cellcos. (August 1, 2016) The Dhaka Tribune are fast, convenient and reliable and it pleases us to see op- erators taking the initiative to continually improve services to consumers.” Network performance averaged out at 9.5 Mbps last quarter and changed to 17.8 Mbps in the second Egypt quarter. (August 21, 2016) zawya.com Acting Executive President: Eng. Mustafa Abdul Wahid [National Telecommunication Regulatory Bangladesh Authority (NTRA)] Chairman: Sahjahan Mahmud Egypt’s National Telecom Regulatory Authority (NTRA) is [Bangladesh Telecommunication Regulatory making moves to bring to an end a long-running saga in- volving the issue of 4G licenses. The authority has now ap- Commission (BTRC)] The Bangladesh Telecommunication Regula- proved amended 4G license terms and is preparing to send tory Commission (BTRC) has pushed back the deadline for final 4G license forms to Egypt’s fixed and mobile operators receiving applications to implement and operate the coun- on August 21, Reuters reported, citing a source in the coun- try’s mobile number portability (MNP) system, from August try’s Telecommunications Ministry. The news agency added 8 to August 22, 2016 although the date for the auction to that only Telecom Egypt had accepted the original terms decide the winning MNP bidder remains September 21. after the government offered 4G licenses to the fixed-line The regulator decided to give applicants more time, after incumbent and Orange Egypt, Vodafone Egypt and Etisalat responding to a considerable volume of queries on various in June. A related report by AhramOnline stated that opera- tors must accept the revised terms by midday on September details of the MNP contract. (August 15, 2016) telegeography.com 22, indicating that the country is keen to put past delays in issuing 4G licenses behind it and quickly move towards

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SAMENA TRENDS AUGUST 2016 deploying infrastructure. The telecoms ministry source told Reuters that the NTRA has decided that the winning appli- Pakistan cants will gain additional frequencies with their 4G license. Chairman: Dr. Syed Ismail Shah [Pakistan Telecommunication Authority That move could help ease GSMA concerns that the country was not lining up sufficient spectrum for operators to offer (PTA)] effective 4G services. The association in July said that previ- Pakistan Telecommunication Authority is considering reg- ous experience shows that the total amount of spectrum as- ulating the mobile apps and Over the Top (OTT) services signed to individual operators must fall within the range of such as WhatsApp, Viber and Skype, etc, official sources told 2x30MHz to 2x60MHz over a range of coverage and capac- Business Recorder. Sources said the model for delivery of In- ity bands. While the authority has proven flexible in terms ternet-based VoIP and other OTT services is fundamentally of frequencies, it is standing firm on the cost of the licenses, different from the earlier model in which services were em- the telecoms ministry source told Reuters. Payment terms bedded in the network. Therefore, most regulatory regimes were sent to operators in June. According to a previous Re- designed in accordance with the earlier model are not satis- uters report, incumbent operator Telecom Egypt faces the factory when applied in this context. The proposed revision highest charge of EGP7.08 billion (€707 million/$797 mil- to the licensing framework will address this issue in the long lion) to cover the cost of its 4G license and also licenses for term. PTA is working on a framework through which it hopes 2G and 3G technology, which the operator must pay as it to be able to regulate mobile apps and OTT services. PTA moves into the mobile market for the first time having pre- has constituted a committee which is working on the said viously been a fixed-line only operator. Orange Egypt said in framework to be shared with stakeholders including telecom June that it has been asked to pay EGP3.54 billion for its 4G operators as soon as it is ready. The committee was tasked license in the country. The operator faces additional fees of to formulate recommendations through which OTT services, EGP100 million for a fixed-line license, and of EGP1.8 billion mainly the mobile apps, will be brought under regulation in to enable it to offer international calling services. Egypt’s Pakistan. PTA said that all efforts for getting a framework government originally approved plans to issue 4G licenses for regulating OTT are driven by the Telecom Policy 2015 in 2014, but the process has been delayed by disagreements that the Ministry of Information Technology approved and between operators: in particular regarding the interconnec- issued. Telecom Policy 2015 said the framework will enable the government to make sure that such mobile apps are in tion fees levied by Telecom Egypt. (August 17, 2016) totaltele.com line with national interests and do not hurt telecom sector’s (operators) interests. Officials said there is an immediate re- quirement to regulate services such as VoIP and other voice Iran services that are partial or full substitutes for the traditional Chairman: Dr. Ali Asghar Amidian Public Switched Telephone Network, particularly when the [Communication Regulatory Authority services are provided by unlicensed service providers either (CRA)] in Pakistan or in other countries. PTA, in consultation with Mobile number portability (MNP) has been given a com- federal government and stakeholders, will develop appro- mercial launch in Iran after a month of Beta testing. Iran’s priate regulatory framework to treat VoIP and other OTT 114 million cellular subscribers are now able to switch pro- services. The framework will take account of the possibility vider while retaining their original number. So far 11,000 that service providers offering such services may preferably users applied to change their network during the trial install equipment in Pakistan where possible, the rapidity of phase. Iran is home to three national cellular license hold- development of such services, the extensive range of such ers – state-owned Mobile Communication Company of Iran services, the potential requirements for scarce resources (eg (MCI), South African-backed MTN Irancell and newest en- numbers), requirements for access to emergency services, trant Tamin Telecom, which trades under the ‘Rightel’ name requirements for lawful interception, cooperation with Law – as well as several regional operators, the largest of which Enforcement Agencies, data retention obligations on opera- is Taliya Mobile. (August 23, 2016) TechRasa tors, impact on operator networks, and where appropriate, the requirement for interconnection with the equivalent embedded or OTT. Taking into account the globally emerg- Oman ing revenue sharing arrangements between local licensees Executive President: Dr. Hamed and OTT players, for offering better than normal best-effort Al-Rawahi or differentiated version of the services, licensed access pro- [Telecommunication Regulatory Authority viders will be free to enter into mutual agreements with the (TRA)] service providers enabling them to monetize OTT service The industry regulator Telecommunications Regulatory Au- delivery on mutually agreed terms. New regulatory frame- thority (TRA) has invited interested parties, including po- work may also incorporate revenue sharing arrangements tential investors, to give their comments and observations between local licensees (telcos for instance) and OTT play- on the draft Reference Access and Interconnection Offers ers (WhatsApp, Skype, Viber, etc), for offering differentiated (RAIOs) published by Omantel and Ooredoo. According to version of the services (free and paid) so that licensed busi- the Muscat Daily, Omantel and Ooredoo have published nesses could enter into mutual agreements with OTT ser- their Draft RAIOs on their respective websites for consulta- vice providers to monetize OTT service delivery on mutually tion. TRA said it has not yet approved the published Draft agreed terms. According to the sources, US and India also RAIOs and is inviting interested parties to provide com- framed such regulations and are in implementation phases. ments and observations. The regulator said it will give due (August 23, 2016) brecorder.com consideration to all comments and contributions received within the set time frame but that it is under no obligation Technology neutral license for the 10 MHz-850 MHz fre- to adopt the comments of any respondent. quency spectrum has been handed over to the successful (August 10, 2016) world.einnews.com bidder – Telenor Pakistan –making way for the company to become the third 4G operator in the country. Minister for

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IT and Telecommunication Anusha Rahman formally hand- The Communications and Information Technology Commis- ed over 850 MHz license to Telenor Pakistan CEO Michal sion (CITC) of Saudi Arabia has started disconnecting unreg- Foley at a ceremony held at the IT Ministry, said a press istered mobile subscribers, which failed to submit their fin- release. Telenor Pakistan granted 4G license for $395 mil- gerprints in line with the new security measures introduced lion. Rahman stated that Telenor had played a significant by the regulator in September last year. The CITC said the role in the sector during the last few years and successfully fingerprint registration is meant to protect personal infor- participated in all three spectrum auctions held in the last mation of SIM cardholders and prevent buyers from obtain- twelve years. Rahman further said that when she became ing mobile phones using fake or stolen identification cards. minister broadband penetration was less than 3 per cent but All unregistered users will have a grace period of two weeks within a short span, mobile broadband had grown to more to submit their details, before the service is cut. The regula- than 19% and is targeted to cross 38% by 2020. The new tor said in its most recent report for the first quarter of 2016 license to Telenor will further bring high speed connectivity that it expects a continued decline in the number of mobile and the associated socio economic benefits and opportuni- subscriptions (standing at 50.9 million at the time) in the ties to the Pakistani citizens. Telenor wins 850MHZ spectrum coming periods, as a direct result of the new registration license Michael Foley said, “Telenor is committed to sup- programme. (July 26, 2016) telegeography.com porting Pakistan’s efforts to become a digitally developed nation. Driven by our vision of empowering societies, our success to date has been built on a simple realization: mo- Sri Lanka bile communication, financial services and internet are not Director General: Mr. Sunil S. Sirisena luxury goods for the few – they are for everyone.” He hailed [National Telecommunication Corporation the Minister for her initiatives towards expanding the overall (TRC)] digital ecosystem in the country. (July 27, 2016) tribune.com.pk Telecommunications and Digital Infrastructure Ministry Sec- retary Wasantha Deshapriya said that together with Tele- communication Regulatory Commission of Sri Lanka (TRC- Saudi Arabia SL), they are hoping to formulate a national IT brand policy Governor, Deputy Chairman of the BoD: and plan before the end of this year, as the country lacks a Dr. Abdulaziz Bin Salem Al Ruwais benchmark for digital transformation. He said that though [Communication & Information Technology in supplying side there were so many ways to transform the Commission (CITC)] industry by adopting various technologies, in Sri Lanka the Complete Saudization of the local telecommunications sec- demand side was still very low. “So that one problem is con- tor will come into effect after ten days in accordance with an tent such as gaming as well as video, video is going to be order issued by the Minister Labor and Social Development one of the key content areas, but we do not have it, “he said Mufrej Al-Haqabani. The ministry is training about 40,000 “Second point is E- government policy, National ICT policy. male and female Saudis to work in the telecommunications I’m hopeful that we would see that before end of this year. sector and allied fields. Related agencies that are helping Previous version had that every government; organization in the training include the Human Resources Development should be connected to Lanka government network. It is Fund (HADAF), Technical and Vocational Training Corpo- going to be providing broadband connections in 3 years to ration, General Organization for Social Insurance and the 7500 government organizations connected with minimum Saudi Credit and Savings Bank. Participating ministries in of 20 MBs, this should cater to a huge demand,” he added. the resettlement in the telecommunications sector include ICTA Chairperson, Chitranganie Mubarak said that based on the Ministries of Labor and Social Development, Interior, the statement made by the Prime Minster at the parliament Commerce and Investment, Municipal and Rural Affairs, and of digitizing the economy and for taking the digital world Communications and Information Technology. Earlier, the to schoolchildren right across the country, their goal was to mobile phone industry was given six months to implement create a digitally inclusive Sri Lanka. “We all are working very the decision on the Saudization of the sector across the hard to make sure this goal is met, and that we leverage on Kingdom. The first step was Saudizing 50 percent of the sec- ICT, to take Sri Lanka to the next stage of development. So in tor for the first three months from Jamad Al-Thani 1 (March this context what we should we be doing is empowering our 10). It should be completely localized by Dhul Hijjah (Sept. citizens digitally,” she said. She said that they have planned 2). Al-Haqabani ordered that only Saudis will be employed programmes for building capacity for women entrepreneurs in the entire mobile industry, covering sales, maintenance using ICT and as well as social circles, which will be based on and accessories. The order is being implemented according the Grama Niladari. Telecommunications and Digital Infra- to the jurisdiction, tasks, and responsibilities of each indi- structure Minister Harin Fernando said that in order to face vidual ministry. During the campaign, the Labor and Social increased challenges with behavioral and ethical issues of Development Ministry took steps to ensure that business digital transformation, such as cyber bullying, inappropriate owners follow instructions by replacing foreign workers with sharing, ICTA was taking a great effort together with their Saudi nationals. The decision to localize the telecommuni- ministry in protecting the citizens in this cyber space. Prom- cations industry aims to create employment opportunities ising that 2017 will be an impressive year in the digital space for male and female Saudis who are interested in working for Sri Lanka, he said that next year, on the digital space, Sri in the sector. According to a Labor and Social Development Lanka was going to go right on top, as the connectivity in Sri Ministry decision, all the regions and provinces in the King- Lanka was going to have some new innovations. “We need dom and large and medium and small establishments are to brace the new technology, need to grab the opportunity. covered under the rule. According to Abdul Kareem An- When the loon was looming, people were not happy with Nujaidi, HADAF director general, the fund is supporting the loon, but when the loon works, the whole country will be recruitment and rehabilitation of Saudis willing to work in connected with 4G technology right across the country,” he the sector. (August 26, 2016) arabnews.com said. He said that they initiating were several projects such

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SAMENA TRENDS AUGUST 2016 as providing 100 digital classrooms this year, and providing tablets for 100 schools for students starting from grade 9. United Arab Emirates (August 9, 2016) dailymirror.lk Director General: Hamad Obaid Al Mansoori [Telecommunication Regulatory Authority Turkey (TRA)] Acting Chairman: Dr. Omer Fatih Sayan The Telecommunications Regulatory Authority (TRA) of the [Information & Communication UAE has announced that there are no legislations in the country that obstruct the economic movement or the work Technologies Authority (BTK)] of local or international companies based in the UAE. This Turkey’s telecoms regulator, the Information Technology comes in response to several inquiries the TRA has received and Communications Authority (Bilgi Teknolojileri ve Iletisim from companies or institutions about what has been Kurumu, BTK) has abolished the minimum price regulation published in the media recently regarding the use of Virtual for retail mobile voice and SMS messaging services which Private Networks (VPN) in the UAE. The TRA has assured had been imposed solely on market leader Turkcell since businesses and the public that it is fully committed to the 2009. In a statement issued yesterday, Turkcell said that the safety and the smooth flow of economic activities for UAE- regulation, which was scrapped with effect from 16 August based companies and institutions, highlighting that there 2016, has had a negative impact on its competitive strength, are no regulations which prevent the use of VPN technology and added: ‘With the removal of the respective restrictions by companies, institutions and banks to access their internal applied to our tariffs and campaigns, our company will be networks through internet. However, business users can be in a position to enrich the offer portfolio that meets our held accountable, like the use of any other technology, if it customers’ needs. The underlying reasons behind the lifting has been misused. Referring to a recently issued amendment of this obligation are stated [by BTK] as developments in on the Federal Law No (5) of 2012, the TRA noted that the the mobile electronic communication market, the increasing law is not new in its essence and that the only changes were significance of mobile internet service, the proliferation of related to tightening the penalty or punishment for any over-the-top (OTT) services enabling communication over violation. The TRA further urged to read the actual violation the internet, and the declining significance of voice and SMS mentioned in the law; which says: “using a false IP address services as compared to the period when the regulations or a third-party address by any other means for the purpose were put into practice, as well as the decline in the propor- of committing a crime or preventing its discovery”, in order tion of on-net traffic and in the price difference between to understand the law correctly and where the punishment on-net and off-net calls.’ The minimum price rules required is exclusively linked to the mentioned fraudulent act and the average on-net prices of all Turkcell’s standard and pro- the intent to commit a crime or prevent its discovery. “The motional retail mobile voice/SMS tariffs to be set at over UAE is proud of being one of the countries that encourage 1.7 times the wholesale mobile termination rates applied by investment and openness to ICT-based economic activities. Turkcell to rival operators per minute/number of SMS. This trend is embodied the UAE’s history since the founding (August 24, 2016) telegeography.com of the union in 1971,” said Hamad Obaid Al Mansouri, Turkey has confirmed reports that it has shut down its in- Director General of TRA. “It is also included in the strategic ternet surveillance agency, the Department of Telecom- directions of the UAE, particularly in our national Vision munications and Communication (TİB), and merged it into 2021, which aims to make the UAE one of the best countries the general telecoms regulator, the Information and Com- in the world – and clearly outlined as well in our national munication Technologies Authority (BTK). The decision was agenda and major programs and projects that confirms the among a set of emergency decrees – published yesterday UAE’s leadership in this field worldwide.” The TRA further by the Turkish government in its Official Gazette – that emphasized that any misuse of the licensed and organized follow the attempted coup of 15 July. The government is services in the UAE will lead to legal accountability. It is worth blaming an organization that it calls the FETÖ and has set mentioning that the laws are targeting those who misuse about removing anyone that it believes was sympathetic to the services and not those activities that are consistent the rebels. The move follows a speech earlier this month with UAE’s laws. “The leadership of the UAE in the field of by Turkey’s president, Recep Tayyip Erdoğan, who said: “We internet applications and IT in general, is on the contrary want to form a strong intelligence mechanism against the to what has been circulated by some media regarding the activities of this organization [FETÖ]. For instance, we will use of VPNs. It is known that the UAE is keen to embody shut down the TİB, because it is among the places that has the directions of the UAE Government’s wise leadership all the dirt.” A year ago a government minister Lütfi Elvan regarding smart transformation, including the smart – now in charge of transport, maritime affairs and commu- government, smart cities, Big Data, and Internet of Things, nications – said that the building then occupied by TİB was in addition to promoting investment, competitiveness and used by FETÖ members as “headquarters for illegal wire- focus on building a knowledge-based economy and society,” tapping”. He said, according to Turkish newspaper Hurriyet: Al Mansouri added. (August 1, 2016) gulfnews.com “We don’t know where the cables from that building reach. We know that nearly 1,000 people in the TİB were illegally wired.” The TİB was responsible for checking communica- tions made by any network, the evaluation of signal infor- mation and recordings. It also oversaw the implementation of the country’s website blocking laws. “The TİB’s powers, responsibilities, staff and its entire technical possibilities will be transferred to the BTK,” said Deputy Prime Minister Nu- man Kurtulmuş. (August 17, 2016) globaltelecomsbusiness.com

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REGULATORY ACTIVITIES BEYOND THE SAMENA REGION

Australia as app-based detection of infrastructure The Australian Govern- wear and tear and automatic dispatch of ment is encouraging local maintenance crews, to computer gener- councils to find technol- ated programs that support or enhance ogy solutions to improve city services. Taylor said the most valuable suburbs and cities. Speaking at a Future projects will be transformative collabora- Cities Summit in Brisbane Angus Taylor, tions between multiple councils and tech- Assistant Minister for Cities, announced nology industry partners that link closely a series of stakeholder roundtables to be with future plans for the area. Stakeholder held in September to kick-start the AU$50 roundtables will be held in a number of Regulatory million (US$38 million) Smart Cities and major Australian cities during September. Suburbs Programme. A key election com- (August 26, 2016) itu4u.wordpress.com Updates mitment of the new government, the programme will support councils across A market study examining a wide range Australia to fast-track open data and in- of issues concerning competition and ef- novative technology solutions to fix lo- ficiency in communications markets is to cal problems. Taylor said the goal was to be undertaken by the Australian Compe- encourage local governments to partner tition and Consumer Commission (ACCC). with tech experts to make cities and sub- With the consultation set to involve indus- urbs more live able, sustainable and pro- try participants and consumers, the ACCC ductive. “The Smart Cities and Suburbs noted it has already held preliminary Programme is to support clever technol- discussions with a number of stakehold- ogy ideas to fix difficult or long standing ers. Topics to be discussed as part of the community issues,” he said. “The most market examination include the changing valuable projects will be transformative structure of the nation’s communications collaborations between multiple councils markets, particularly the transition to a and technology industry partners that fixed line market in which nbn, the com- link closely with future plans for the area.” pany overseeing the National Broadband “The Commonwealth [Government] ex- Network (NBN) rollout, is the wholesale pects local governments to bring forward provider to retail service providers. Other a variety of cutting-edge projects such as matters which the ACCC will look to ad- collaborative design solutions or pilots of dress are: the issue of consolidation and emerging technologies.” A wide range of market concentration in the retail sector; projects are expected to be eligible, such the growth in availability of over-the-top

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(OTT) services; the exponential growth in the demand for The European Commission (EC) is tipped to be targeting bandwidth and data; and the increased use of mobile data a stricter regulation of over-the-top (OTT) messaging ser- by consumers and the increasing preference for mobile as vices from companies including Facebook and Microsoft as a way to access the internet. The market study will consider part of a broader overhaul of European Union (EU) privacy how these and other changes affect competition, the effi- laws. Internal EC documents revealed that the commission cient operation of markets, and investment incentives, and is preparing to issue proposals for the regulation of ser- will examine options to address any issues identified, while vices including Facebook’s WhatsApp and Microsoft’s Skype considering the potential to improve economic regulation next month, as part of broader efforts to update existing where warranted. The ACCC will commence consultation electronic privacy rules and remove differences in regula- with an issues paper and will release a draft of its find- tion faced by telecoms groups and their online rivals. The ings for comment prior to completing the market study in latest e-privacy laws will replace existing rules that were 2017. Commenting on the matter, ACCC chairman Rod Sims conceived in 2002, and are likely to remove restrictions said: ‘We recognize the communications sector is one that on telecoms service providers relating to subscriber loca- all Australians have an interest in, and one that facilitates tion data, Fortune reported in a related article. European economic growth. Importantly, the study will also allow the telecoms operators including Orange and Telefonica have ACCC to consider a wide range of interrelated issues that long complained that OTT services from companies based have been raised by the sector and that go to the proper outside the EU – in this case the U.S. – have benefitted from functioning of the market … The study will examine the looser regulations than mainstream telecoms service pro- changing landscape and identify any issues preventing the viders. However, the EC’s goal to include OTT companies in use of innovation and investment to deliver the benefits of broader telecoms laws is more focused on the user data that competition to consumers.’ (August 5, 2016) telegeography.com such companies gather, the FT noted. In particular, the EC is aiming to ensure that security agencies can readily access OTT services’ user data, the newspaper stated, adding that China the commission is also seeking to regulate the way in which China ended June with 709.58 million inter- OTT companies utilize that data. The EC’s proposals will also net users, which represents an increase of include regulation of online services that allow users to dial 6.27 percent year-on-year, according to a fixed and mobile phone numbers, the FT added. However, report from China Internet Network Infor- the commission does not intend to cover online-to-online mation Center (CNNIC). Internet penetration reached 51.7 calling in its proposals, the newspaper said. While the EC is percent at June 30. Around 656.37 million or 92.50 percent making progress in its bid to overhaul its ageing e-privacy of China internet services customer base go online directly laws, it is still far from certain that the latest proposals will from their mobile phones. The report further shows that, be passed into law. The FT noted that EU member states in the first half of this year, the average time of using inter- will spend several months debating the proposals, and that net services was 26.5 hours per user per week. There were lobby groups are also likely to weigh into the matter. 337.608 million IPv4 addresses and 20,781 blocks/32 of IPv6 (August 15, 2016) totaltele.com addresses, 36.984 million domain names, and 4.542 mil- lion websites registered in China at 30 June. China had total The European Commission (EC) has opened an ‘in-depth bandwidth of 6,220.764 Gbps for international internet con- investigation’ into plans by Portugal’s National Commu- nections. China Telecom led the ISP market with bandwidth nications Authority (ANACOM) to refrain from granting of 3,817.006Gbps, followed by China United Network Com- regulated local or central access to the PT Portugal (MEO) munications (1,501.805Gbps), China Mobile (787.763Gbps), fiber-optic network in parts of the country where there is Cernet (61.440Gbps) and CSTNet (53.248Gbps). little prospect of alternative infrastructure deployment. In its (August 25, 2016) telecompaper.com draft decision, ANACOM conducted an analysis of the retail and wholesale markets for broadband services. It found that MEO has significant market power (SMP) on both the lo- European Union cal and the central wholesale access markets for broadband The European Commission (EC) is working on (covering copper, fiber and cable platforms). ANACOM has a proposal which will see all European mobile divided the Portuguese territory into two distinct geograph- licenses issued for a minimum of 25 years, a ic retail markets: ‘competitive’ parishes (mostly urban areas move it says will increase investment certain- where alternative operators are present with significant ty for operators. According to Reuters, citing a private EU coverage of next generation networks (NGNs) and/or a lim- document, the proposal will be published next month and ited market share by MEO) and ‘non-competitive’ parishes potentially endorsed as early as 2018. Under the provisional (mostly rural, where MEO is by far the strongest provider of plan, the EC would have the power to adopt binding guid- broadband services). In justifying its investigation, the EC ance on some conditions of the assignment process, such argues: ‘Despite the very limited economic prospects that as the deadlines for spectrum allocation and spectrum shar- alternative operators could independently deploy their own ing. Member states would also be able to jointly organize fiber in less densely populated areas in the short orme- spectrum auctions to assist with the award of multi-country dium term, ANACOM has not provided a sufficiently sub- or pan-EU licenses, although this aspect would be voluntary. stantiated justification as to why not regulating fiber access The EC has made no secret of its desire to forge a single would foster a sustainable competitive market at retail level European telecoms market in recent years and telcos have and represent an acceptable balance between the objec- also called for greater EU coordination of spectrum policy. tives of competition and efficient investment in end-users’ The plan, however, will still need to be approved by member interest.’ As such, the Commission believes that ANACOM’s states and the European Parliament before becoming law, intention not to regulate access to MEO’s fiber network in and a certain level of resistance is anticipated. National au- the ‘non-competitive’ areas is contrary to the provision of thorities are likely to be reluctant to relinquish control over EU telecoms rules. Under the EU Framework and Access Di- how they auction wireless spectrum, which is generally con- rectives, telecoms regulators can decide to impose specific sidered to be a national resource. (August 17, 2016) telegeography.com remedies on operators with SMP to allow alternative opera-

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SAMENA TRENDS AUGUST 2016 tors to more easily deploy their own infrastructure and to ernment approved the long-awaited Telecommunications compete more effectively with them for consumers. These (Amendment) Bill (2016) in July this year. The legislation has remedies typically include the obligation to provide propor- been designed to pave the way for liberalization in the mar- tionate access for alternative operators to specific elements ket, but there are still several hurdles in the way, including of the network. (August 4, 2016) telegeography.com negotiating the end of GTT’s monopoly without risking a lawsuit from the telco, or its parent company, ATN Inter- national (formerly Atlantic Tele-Network). The reshuffling of GSMA Guyana’s regulatory structure is also required, including the The GSMA calls for the Egyptian authorities creation of the new Telecommunications Agency – which and the country’s mobile industry to work will incorporate the National Frequency Management Unit closely together to set a roadmap for the (NFMU) and oversee the sector alongside existing regulator successful introduction of 4G services. Egypt the Public Utilities Commission (PUC) – and the establish- is planning to move forward on licensing spectrum to sup- ment of a host of new regulations covering license and fre- port 4G in the coming weeks, although it is not yet clear quency allocations, interconnection, competition, consumer if sufficient spectrum will be made available on terms that protection and universal service. Commenting on the plans, will encourage rapid and large scale investments in 4G net- Mr. Hinds noted that infrastructure sharing and net neutral- works and services. “There are some critical success factors ity are expected to see fierce opposition from operators: that should to be clarified before moving forward with 4G ‘How we manage those kinds of things…is going to be tricky licensing in Egypt,” said John Giusti, GSMA Chief Regulatory in terms of who is going to hold the infrastructure, who is Officer. “The GSMA is concerned about sufficient spectrum going to rent from who…because we simply can’t have a being made available at fair, market-reflective prices to sup- situation where every man jack is running fiber all over the port full-fledged 4G rollout. A clear spectrum roadmap is town.’ On net neutrality, the official said that operators are necessary to allow operators to understand how and when hoping to only carry traffic for over-the-top (OTT) VoIP and sufficient spectrum will be made available. We believe that messaging applications like WhatsApp and Viber for an ex- further dialogue between government and industry ahead tra cost, as the use of such services is eating into their tra- of the proposed licensing process could provide clarity on ditional voice and SMS revenues. ‘That is concretely oppo- a plan to bring world-class 4G mobile broadband to con- site to what net neutrality is,’ the official explained, adding: sumers and businesses across Egypt.” Based on the GSMA’s ‘Guyana is probably the first Caricom territory to pass the international experience, the total amount of spectrum as- dilemma of net neutrality legislation … in terms of ensuring signed to each operator for 4G needs to be in the range that there is no discrimination in terms of the provision of of 2x30MHz to 2x60MHz, across a range of coverage and data via telecommunication providers.’ capacity bands, with a minimum contiguous bandwidth of (August 22, 2016) Demerara Waves 2x10MHz in each band (to enable efficient network eco- nomics). It is also essential that cost of spectrum access enables the delivery of the long-term social and economic India benefits of mobile broadband and takes into account the The telecom departments (DoT) will kick- investment necessary to provide robust networks. “To en- start the largest sale of 2G, 3G and 4G air- sure the lowest possible cost and best possible experience waves from September 29. While the govern- for consumers, national 4G services must be able to scale ment hopes to garner a minimum around Rs rapidly,” added Giusti. “This requires that sufficient spectrum 5,56,000 crore from the sale of all airwaves on offer at base be made available now, and that plans for future spectrum price, industry experts say the lack of a compelling reason releases are clarified. Having a spectrum roadmap is critical like expiry of bandwidth and exorbitantly priced spectrum in for business and investment planning.” A recent Memoran- the 700 MHz band may dampen demand. The DoT Monday dum of Understanding between the GSMA, the Government released the Notice Inviting Application (NIA), the legally- of Egypt and the National Telecommunications Regulatory binding document for the auctions, outlining all details of Authority (NTRA)1 was agreed to promote a regulatory en- how the government plans to sell airwaves to private tele- vironment in Egypt that stimulates long-term investment in com operators, including the eligibility requirements and mobile services. (July 26, 2016) cellular-news.com the minimum earnest money which operators will have to deposit if they wish to participate in the auctions. Accord- ing to the details released on Monday, the government will Guyana sell 2354.55 megahertz of spectrum in the 3G band of 900 Guyanese incumbent Guyana Telephone and MHz and 2100 MHz and 4G bands of bands of 700 MHz, 800 Telegraph Company (GTT) is set to begin MHz, 1800 MHz, 2300 MHz and 2500 MHz. This includes negotiations with the government regard- additional spectrum released in the 1800 MHz and 800 ing the end of its monopoly on international MHz bands valued at Rs27,000 crore at base price, Telecom voice and data services next month, with talks expected to Secretary J S Deepak told reporters. According to the NIA, be completed by the end of the year media reports, citing any sort of consolidation in the market -spectrum trading/ Lance Hinds, an adviser to the Minister of Public Telecom- sharing/merger and acquisition- will be suspended until munications. The official made the announcement at a pub- the sale is complete. The move is designed to help raise lic forum earlier this week, and ruled out the possibility of a higher demand for the government’s sale of bandwidth. compensating the operator for the remaining nine years of Meanwhile, the spectrum sold in the upcoming auctions will exclusivity, stating: ‘That is not a discussion that is really go- attract a spectrum usage charge of 3%. However, the overall ing to happen, because it is difficult to put a value on an SUC which a telco will pay will differ from one operator to exclusive license for nine years down the road, because you another and will be a blended SUC of multiple levies im- [are then] doing future projections on earnings and that gets posed on sale of bandwidth from time to time. Computed into a science that will only get us into a dispute.’ Instead, as a weighted average, the overall SUC of each operator will Mr. Hinds said that the talks will focus on whether GTT has now onwards, also include the airwaves in the 2300 MHz any liabilities and the specifics of a new license. The gov- which were earlier attracting a flat SUC of just 1%. Winners

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SAMENA TRENDS AUGUST 2016 in the 700 MHz, 900 MHz and the 800 MHz bands will need to acquire the additional 2.1GHz (3G) frequencies, including to pay 25% of the winning amounts within 10 days of the Hutchison 3 Indonesia (Tri), XL Axiata, Indosat Ooredoo and auction close, while 50% of the winning bid price will be the Telkomsel. (July 27, 2016) telegeography.com upfront payment for spectrum in the 1800 MHz, 2300 MHz and the 2500 MHz bands. The rest would need to be paid in 10 equal installments after a two-year moratorium. The Montenegro government will allot spectrum within 30 days of the up- The telecoms regulator announced the con- front payment. (August 8, 2016) telecom.economictimes.indiatimes.com clusion of a multi-band spectrum auction that saw the country’s three existing mobile India’s Telecom Commission set the spectrum usage charge operators pick up airwaves, but failed to at- for the next batch of spectrum to be sold at a minimum tract interest from any new players. The Agency for Elec- of 3 per cent of revenue, increasing the fees for Reliance tronic Communications and Postal Services (EKIP) sold off Jio Infocomm and Aircel, Economic Times reported. The spectrum in the 800 MHz, 900 MHz, 1800 MHz, 2 GHz and commission’s proposal will be reviewed by the cabinet next 2.6 GHz bands via an auction process that ran for almost a week. The next auctions, which have been delayed by the month before drawing to a close on August 2. In the pre- spectrum usage fee issue, can go ahead 45 days after the auction stage it ensured that certain frequencies were re- cabinet gives the green light. In June, the cabinet approved served at a particular price point for a potential new market a huge spectrum auction plan proposed by the regulator. entrant, but given that there was no interest in the pack- Initial reports said the auction was expected to raise a re- age, those airwaves were wrapped into the main auction. cord INR5.6 trillion ($83 billion), exceeding the country’s last It raised €50.65 million from the process overall, including auction, which raised INR1.1 trillion. According to the Times, €35.73 million via the main auction. The country’s three Jio, based to the earlier formula proposed by the commis- existing mobile operators – Crnogorski Telekom, which is sion, would have a spectrum usage fee of 2.88 per cent of indirectly owned by Deutsche Telekom and operates as T- revenue, but will now have to pay 3.05 per cent. It will have Mobile, Telenor, and Telekom Srbija’s Mtel – all walked away to pay an additional 0.5 per cent as it shares spectrum from with spectrum, EKIP said. However, not all the available Reliance Communications. The 4G newcomer will continue spectrum was assigned. EKIP calculated the value of unsold to pay a 1 per cent fee on the spectrum it won in 2010. frequencies at €8.31 million, based on reserve prices. Aircel’s fee will rise from 2.83 per cent under the previous (August 5, 2016) totaltele.com recommendation to 3 per cent. India’s top mobile opera- tors, which pay a higher usage fee, have pushed the gov- ernment to impose a flat 3 per cent usage charge across all Myanmar spectrum bands, regardless of how they were acquired, and The Ministry of Transport and Communica- want to see the fee gradually cut to 1 per cent to encour- tions of the Republic of the Union of Myan- age investment. But the Telecom Department has not ac- mar, acting through the Posts and Telecom- cepted this option. The newspaper quoted Rajan Mathews, munications Department, will launch a 2600 Director General of Cellular Operators Association of India, MHz spectrum auction on October 17. The government will as saying: “The telecoms industry is disappointed with the offer 40 MHz of spectrum in the 2600 MHz frequency band. commission’s decision to continue with a weighted average This spectrum can only be used for provision of broadband methodology for calculating the spectrum usage charge. data services. A total 40MHz of spectrum in the 2600MHz We believe that the dangers highlighted by the Telecom band (2575-2615 MHz) will be made available for this auc- Regulatory Authority of India of revenue arbitrage are still tion, comprised of 2x20MHz (2575-2595 MHz, 2595-2615 prevalent and we hoped the government would switch over MHz) divided into three regions. Each bidder will be able to to a flat rate instead of a weighted charge, which is different win up to two regional licenses thus allowing for three to six for each operator.” (July 26, 2016) mobileworldlive.com regional licensees in total. The spectrum lot will be in TDD mode. The Ministry of Transport and Communications has recently published a list of companies that had submitted Indonesia expressions of interest (EOI) for the October auction, and a The government of Indonesia says it will list of those selected as potential bidders. Telenor and MPT not allow mobile network operator (MNO) both made EOIs and were selected as potential bidders. Telekom PT SmartFren (Smartfren) to in any Ooredoo did not apply. Qualified bidders will be announced way slide in its 1900MHz frequency migra- on September 28. The auction winners will be announced tion timetable. Under the Ministry of Communication and on October 20. (August 22, 2016) telecompaper.com Information Technology’s (MCIT’s) network migration pro- gramme, CDMA operator-turned-LTE provider Smartfren will not be able to use the 1900MHz band for its service Nigeria from the start of 2017 and, as such, is looking to move to Nigeria, Africa’s largest mobile market by the 2300MHz band where it is hopeful of securing 30MHz of subscribers, ended June 2016 with a total of spectrum. Speaking yesterday, however, MCIT minister Ru- 149.18 million active GSM lines, an increase diantara reaffirmed that he will not tolerate any delays in the of 1.8% from 146.49 million twelve months migration programme, adding that by January 1, 2017 the earlier. According to the latest figures from the Nigerian 1900MHz band ‘should be clean of code division multiple Communications Commission (NCC), South Africa-based access services belonging to Smartfren’. The company cur- MTN remained the mobile market leader with a total sub- rently holds 13.75MHz of bandwidth in the 1900MHz band scriber base of 58.41 million at mid-2016 (a 39% of total for CDMA, but – according to the rules – it will not be able GSM users), followed by locally-owned wireless operator to use this beyond December 2016. Rudiantara is keen to Globacom with 36.32 million users (24%), Airtel Nigeria – ensure that Smartfren vacates the 1900MHz band in good a subsidiary of Indian telecoms group Bharti Airtel – with time to allow MCIT’s proposed tender of 3G frequencies at 31.98 million subscribers (21%) and finally Etisalat Nigeria 2.1GHz to run as scheduled. A number of MNOs are seeking with 22.47 million users, giving it a GSM market share of

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15%. In comparison, the number of active mobile CDMA and Telekom Romania Mobile Communications for failure lines declined from 2.11 million at the end of June 2015 to to meet the two-year wireless broadband coverage targets just 454,092 twelve months later, mainly attributable to the stipulated by the terms of their 800MHz digital dividend migration of Visafone’s customers to the GSM network of spectrum licenses, which were auctioned in September 2012 MTN, which acquired the CDMA operator at the end of last and became valid in April 2014. ANCOM confirms that the year. The NCC reported that the West African nation ended three operators fell short of covering their full quotas of the first half of 2016 with just 170,539 fixed and fixed-wire- specified unserved villages/rural municipalities by the dead- less lines in service, down slightly from 182,643 the previous line of April 5, 2016. Vodafone failed to cover 72 out of its year. (August 12, 2016) telegeography.com 225 stipulated settlements and was fined RON720,000; Or- ange was fined RON120,000 for failing to cover twelve of its 225 settlement quota; and Telekom (formerly Cosmote Ro- Paraguay mania) failed to cover six of its stipulated 169 settlements, Paraguay is preparing a new law to regulate costing it RON60,000 in fines. A fourth operator RCS&RDS the country’s growing Internet-based TV ser- (Digi) was awarded 900MHz spectrum in the 2012 multi- vices, specifically targeting the taxation of band auction, and is assumed to have met its licensing con- over-the-top (OTT) operators. The announce- ditions of covering the remaining 57 rural/unserved settle- ment was made by congressman Dany Durand during the ments on ANCOM’s list of 676 specific locations. (July 27, 2016) Centreo de Estudios para el Desarrollo de las Telecomuni- telegeography.com caciones de América Latina (CERTAL) summit. According to Durand, the law won’t be a traditional media regulation, as this is banned by the constitution, but rather a law intended Singapore to fill the gap between regulated pay-TV operators and on- Singapore’s legislative assembly passed the line service providers. He cited Netflix as a case in point, as Info-communications Media Development the American subscription video-on-demand (SVOD) ser- Authority Bill, paving the way for the merger vice doesn’t pay the same taxes as local cable companies. of the Info-communications Development During CERTAL, held in the Paraguayan capital Asunción, Authority (IDA) and Media Development Authority (MDA), many official voices pointed out the need for an OTT regula- as the government seeks to adapt its regulatory structure tion in Latin America which guarantees competition. In fact, to better address the rapidly-changing and increasingly Paraguay is not the first country to consider regulating a converged telecoms and media sectors. With traditional tel- booming OTT industry. Argentina tried to do so locally in cos stepping up their challenge in the pay-TV/IPTV content Buenos Aires in 2014, and Brazil is currently debating the sphere, and TV broadcasters fighting for space against over- necessity of a specific law for VOD platforms. the-top (OTT) providers such as Amazon and Netflix, the (August 22, 2016) rapidtvnews.com government believes that the creation of a super regulator – the Info-communications Media Development Authority (IMDA) – will be better suited to coordinate future conver- Philippines gence in the industry. In a statement, Minister for Commu- An appeals court in the Philippines ordered nications and Information Yaacob Ibrahim said: ‘IMDA will the competitive watchdog to explain why build on the success of IDA and MDA, and help develop PLDT and Globe Telecom should not be Singapore as a future-ready infocomm media hub. Consum- granted temporary restraining orders to halt ers will also be a key focus for IMDA, ensuring that they a review of the operators’ joint acquisition of San Miguel continue enjoying a variety of infocomm media services at Corp’s telecoms assets. The court gave the Philippine Com- good service standards and competitive prices.’ The minis- petition Commission (PCC) 10 days to comment on the op- ter went on to point out that as a unified body: ‘IMDA will erators’ petitions, filed in early July, to halt the review of the be better poised to address the talent needs and develop PHP69 billion ($1.47 billion) acquisition. PLDT and Globe professional skills for the infocomm media sector. It will do will have five days to respond after PCC releases its com- this by building interests and cultivating talents from young ments. PCC has called for a public consultation on the deal, and introducing our students and young adults to the ex- which includes the 700MHz spectrum band, which is well citing world of infocomm media.’ (August 17, 2016) telegeography.com suited for boosting coverage. The deadline for public com- ment is 6 August. The two dominant operators, with a 99 per cent market share of mobile connections, have turned South Africa up pressure on the regulator over the past month. Globe South Africa’s Department of Telecommuni- called the request for a public consultation “mob rule”. Last cations and Postal Services (DTPS) has filed week Globe complained the watchdog is treating the pro- an application with the High Court in Pretoria posed acquisition differently from other deals and accused to block the proposed auction of LTE-suitable the PCC of “changing the rules suddenly in the middle of a spectrum in the 700MHZ, 800MHz and 2600MHz bands, game and acting on it whimsically”. Both have said they fol- which was launched by telecoms regulator the Indepen- lowed PCC rules and so the acquisition should be “deemed dent Communications Authority of South Africa (ICASA) last approved”, but the regulator has reserved the right to re- month. The ministry said that the decision to halt the pro- view the deal under the country’s fair competition law. It is ceedings ‘has become necessary in order to prevent irrepa- worth noting that shortly after the deal was struck, PCC re- rable harm which unsuspecting interested parties may suf- leased new regulations for the competition act, which were fer in the licensing process which this court could ultimately put into effect in early June. (July 26, 2016) mobileworldlive.com find unlawful’, as the proposed auction would prevent the entry of new players in the wireless broadband sector. The authority also said that ICASA should wait for the publica- Romania tion of the government’s spectrum policy – which is expect- Romanian telecoms watchdog ANCOM ed to be approved by the end of the year – before launching has imposed fines totaling RON900,000 the Invitation to Apply (ITA) process. In July 2016 the ICASA (US$221,600) on cellcos Orange, Vodafone 36 REGULATORY & POLICY UPDATES

SAMENA TRENDS AUGUST 2016 issued an ITA for spectrum in the 700MHz, 800MHz and executed so as to enhance the access and the quality of 2600MHz bands to all interested parties wishing to provide internet connection in our country’. Further, the Council of wireless broadband services. The regulator said that award- Ministers says it will develop plans to build a new data cen- ing frequencies in the aforementioned bands would ensure tre in the country, set up an internet exchange point (IXP) nationwide broadband access for all citizens by 2020, in line and construct a 140km fiber-optic network, all of which it with the National Development Plan (NDP) and the South says will ‘help pool’ the efforts of national operators Togo Africa Connect Policy. The auction for the spectrum lots – Telecom and Togo Cellulaire (Togocel). Meanwhile, in an- which will come with a reserve price of ZAR3 billion (US$210 other bold statement of intent, Minister is expected to be million) each – is expected to start on January 17, 2017 and given recommendations to license 4G LTE mobile services, end on 30 January 2017. (August 9, 2016) TechCentral by awarding concessions to Togocel and Moov Togo, major- ity owned by Maroc Telecom. No timeframe has been given on the raft of initiatives currently under discussion. Slovenia (August 26, 2016) Xinhua/News Ghana Slovenia’s Agency for Communications Net- works & Services (Agencija za komunikaci- jska omrezja in storitve, AKOS) has set a date United Kingdom of September 5 for the rescheduled auction Telecoms regulator OFCOM has unveiled ‘de- of spectrum in the 1800MHz and 2100MHz bands, left over tailed plans to make digital communications from the April 2014 4G frequency tender. The regulator is of- work for everyone’, including proposals for a fering 2×10MHz in the 1800MHz band (1775MHz-1785MHz major reform of Openreach, the network divi- paired with 1870MHz-1880MHz) valid until 4 January 2031, sion of fixed line incumbent BT. Having said back in February plus 2×5MHz at 2100MHz (1955MHz-1960MHz paired with that it believed Openreach should become more indepen- 2145MHz-2150MHz) valid until September 21, 2021. The dent from BT, OFCOM has now detailed proposals on ex- 1800MHz spectrum has a reserve price of EUR2.6 million actly how it envisages this happening. As per the proposed (US$2.9 million) per 2×5MHz block, while the reserve price model, Ofcom has said that Openreach should become a of the 2100MHz block is EUR1.3 million. ‘distinct company’, legally separate within the BT Group, (August 19, 2016) telegeography.com with its own Articles of Association. In addition, it has called for Openreach to have its own board, with a chief executive appointed by, and accountable to, the Openreach Board, Spain not to BT Group. Further, Ofcom has called for Openreach Having approved final regulations governing to be obliged to consult formally with customers such as the wholesale broadband market in February Sky and TalkTalk on large-scale investments, while it has also 2016, Spanish telecoms regulator the Comis- said that the infrastructure company should own its physi- ion Nacional de los Mercados y la Compe- cal network. Finally, independent branding for Openreach is tencia (CNMC) has now launched a public consultation re- also on the cards, with Ofcom saying that this will help ‘em- lated to wholesale services offered over Telefonica Espana’s bed the organizational culture of a distinct company’. How- fiber-optic infrastructure. In a press release the regula- ever, should this setup fail to ensure that Openreach acts tor confirmed that it is looking to have Telefonica Espana, more independently from BT Group, Ofcom has said it could which offers its services under the Movistar banner, provide yet reconsider whether the two should be split into ‘entirely a ‘NEBA local’ service (analogous to a virtual unbundled lo- separate companies, under different ownership’. Views on cal access [VULA] connection) in areas deemed not to have the Openreach proposals are being sought, with a deadline sufficient competition in the fiber arena; in its February for submissions of 4 October. Alongside matters relating to 2016 ruling the CNMC noted that Telefonica Espana would Openreach’s governance, Ofcom has detailed its plans de- be exempted from opening up its fiber network in a total signed to boost investment in fiber networks and improve of 66 municipalities, equivalent to 35% of the population. quality of service. Back in February the regulator commit- The watchdog has also noted that speeds of up to 300Mbps ted to making it easier for alternative operators to invest in should be provided as part of this wholesale offering, with advanced, competing infrastructure by improving access to alternative operators able to strike deals with Telefonica Openreach’s network of telegraph poles and ducts. In its lat- Espana for any downlink rate up to that top level to allow est announcement, Ofcom noted that new rules come into them to offer a broad range of services. Upon conclusion force from 31 July that will give telecoms providers further of the consultation, which is set to run for two months, the rights to access physical infrastructure, with these designed CNMC will notify the European Commission (EC) of the final to reduce the cost of deploying broadband networks by proposals, following which it will look to give the final nod sharing access to infrastructure across different sectors. In to the plans. Once approved, the Spanish regulator expects regards to quality of service, Ofcom said it has taken ‘signifi- Telefonica Espana to introduce the NEBA local service within cant steps’ in this area, which included: discussing proposals twelve months. (August 8, 2016) telegeography.com which will require operators to provide automatic compen- sation to customers when services fall short; publishing pro- posals to make switching between mobile providers swifter Togo and easier, while it expects to publish plans to make it easier The Council of Ministers has instructed the to switch landline, broadband and pay-TV services ‘shortly’. Minister of Posts & Digital Economy to issue Commenting on the raft of measures being proposed, Of- a tender to award three new licenses to ISPs com’s chief executive Sharon White said: ‘We’re pressing in the West African country. In its report the ahead with the biggest shake-up of telecoms in a decade, to Council explains: ’The coming of new operators will help de- make sure the market is delivering the best possible services velop competition, enhance the quality of internet services for people and business across the UK.’ and reduce costs significantly,’ adding that the government (July 26, 2016) telegeography.com has taken this decision ‘to support major projects currently

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United States Uzbekistan According to the Federal Communications VimpelCom has announced that its Uzbeki- Commission (FCC), the 600MHz Broadcast stan subsidiary, which offers services under Television Spectrum Incentive Auction (‘Auc- the Beeline banner, has been granted a 15- tion 1002’), which commenced on August 16, year extension to its operating license, taking has generated total bids worth USD18.579 billion after 18 its validity period up to 2031. Regulatory approval for the rounds of bidding. Round 19 is scheduled to commence to- move was given following an application submitted in May day. As expected, spectrum allocations covering New York 2016 and reportedly takes into consideration VimpelCom’s and Los Angeles have attracted the highest bids thus far, further network development plans. ‘We are extremely followed by the likes of Chicago, San Francisco, Baltimore- pleased to have our license extended in Uzbekistan and will Washington, DC, Philadelphia, Boston, Dallas and Miami. continue to serve our customers in this important market,’ Going forward, as of August 29 the FCC will use a 10% in- commented Dmitriy Shukov, CEO of Beeline, adding: ‘We crement to set new ‘clock prices’ for all spectrum lots in each cover 88% of the Uzbekistan population with our 2G net- round of bidding. The move comes at a time when industry work, 52% with 3G, and are now preparing to significantly insiders have cast doubts over the likelihood of the auction expand our 4G/LTE services.’ (July 25, 2016) telegeography.com reaching its target. Currently, the ‘clock price’ for each round is set by adding a fixed 5% increment to the previous round’s ‘posted price’. The current Auction 1002 ‘Forward Auction’ Zimbabwe was preceded by a ‘Reverse Auction’ between the FCC and The Zimbabwe government’s social security the TV broadcasters that held the 600MHz spectrum. This and pensions fund, the National Social Se- process saw the ‘clearing cost’ for 126MHz of spectrum es- curity Authority (NSSA), is looking to gain tablished at US$86.423 billion, significantly exceeding ana- control of the country’s third mobile op- lyst expectations. If that figure is not met in the Forward erator, Telecel. In November 2015 the state agreed to ac- Auction the FCC will reduce the amount of spectrum it will quire a 60% interest in Telecel from multinational telecoms free up and resume bidding with TV broadcasters in a sec- group VimpelCom, with the transaction to be conducted by ond stage of the Reverse Auction. (August 26, 2016) telegeography.com government-backed ISP Zarnet. The NSSA initially agreed to provide Zarnet with a ten-year loan to cover the US$40 The US Federal Communications Commission (FCC) has million cost of the transaction, but a report says that the paused the ‘shot-clock’ on the proposed US$1.8 billion take- fund is now worried that the ISP will be unable to make the over of XO Communications, by Verizon Communications. repayments and it is therefore looking to take over the 60% In correspondence dated July 20, the FCC’s Wireline Compe- stake in the cellco itself. While the government announced tition Bureau informed the relevant parties that its investi- that the deal had been completed earlier this year, Vimpel- gation into the deal was suspended on July 7– Day 86 of the Com subsequently contradicted this, saying that it was still regulatory process – due to issues regarding unfulfilled in- waiting for the payment to be made. It is thought that only formation requests. The sticking points are said to relate to US$6 million of the US$40 million purchase price has so far on-net fiber buildings, interconnection agreements, inter- been handed over. VimpelCom had been under pressure for net backbone networks and Verizon’s plans for XO’s existing some time to reduce its stake in Telecel to comply with Zim- Ethernet over Copper (EoC) services. Verizon agreed to buy babwe’s 49% foreign ownership limit, and the group even- XO Communications’ fiber-optic network business in Feb- tually put its shares in the telco up for sale in December ruary 2016. XO operates metropolitan networks in each of 2014. The remaining 40% of Telecel is held by a consortium the 30 major US markets, with over 4,000 on-net buildings, of local businesses under the name Empowerment Corpora- while its intercity network spans 19,000 route miles, con- tion (E Corp). (August 22, 2016) The Zimbabwe Independent necting 85 cities. Announcing the deal, Verizon said that the takeover of XO’s fiber-based IP and Ethernet networks will The government of Zimbabwe is now unlikely to implement help better serve its enterprise and wholesale customers. At mobile number portability (MNP) before 2017. A report the time of the deal, the companies said that the transaction cites Hilda Mutseyikwa, an executive at telecoms regulator was expected to close in the first half of 2017. Separately, POTRAZ, as saying at a conference this week: ‘Sometime in Verizon will lease available XO wireless spectrum, with an 2013, we did consultations with operators on the feasibil- option to buy XO’s entity (that holds its spectrum) by end- ity of introducing number portability and our conclusion 2018. (July 25, 2016) telegeography.com then was that it was not feasible … We were also looking at the cost implications and who was going to manage that platform and then we concluded that maybe it may not be Uruguay viable. But we haven’t really cancelled that project. We are Uruguay’s communications regulator UR- considering reviving it again, most probably this year or in SEC is about to publish the bidding rules 2017.’ Given that the watchdog has still to even begin the for the forthcoming auction of spectrum in search for a consultant to help manage the implementation the 700MHz band, due to take place in the of MNP, and operators will need time to introduce the nec- second half of the year. “The bidding conditions are ready essary systems to allow for portability, then next year would and the procedure now requires the executive order ap- seem the earliest possible launch date for MNP. proving the conditions and setting a date to begin the auc- (August 3, 2016) TechZim tion, which should occur within a month of the approval,” said Diaz. Uruguay already has highest LTE penetration in Javaid Akhtar Malik Latin America, reaching 55.88 percent of the population Regulatory Affairs compared to 11.35 percent of the region as a whole, ac- SAMENA Telecommunications Council cording to 5G Americas. However, Cosse said the 700MHz band would allow operators to expand mobile broadband “Information contained herein has been obtained from sources, which we deem reliable. SAMENA coverage to rural areas that aren’t currently reached by 3G Telecommunications Council is not liable for any misinformed decisions that the reader may reach by services. (July 28, 2016) telecompaper.com being solely reliant on information contained herein. Expert advice should be sought.”

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wholesale NEWS

Italian cellcos investigated PTA consults on new termi- over EU roaming charges nation rates for 2017 Italy’s telecoms regulator, the Authority Icelandic telecoms regulator the Post for Communications (Autorita per le Ga- and Telecommunication Administration ranzie nelle Comunicazioni, Agcom), has (PTA) has opened a public consultation initiated proceedings against 3 Italia (H3G on a draft decision, which will dictate Italia) for its failure to adopt new Euro- the wholesale mobile termination rates pean Commission (EC) roaming rates that (MTRs) for all of the country’s wireless op- WHOLESALE entered into force on 30 April. The move erators – Siminn, Vodafone Iceland (Fjar- follows the launch of proceedings against skipti), Nova, Alterna and re-seller 365 Updates larger rivals Telecom Italia (TIM) and Wind (previously Tal) – effective 1 January 2017. Telecomunicazioni (Wind Italy) on 31 May The document proposes that the whole- for also failing to ensure full compliance sale rates for termination in individual with the new measures, which cap EU mobile networks in Iceland decrease to roaming charges for consumers ahead of ISK1.23 (USD0.01) excluding VAT in cal- a full ban entering force on 15 June next endar year 2017; the current termination year. Agcom says the mobile operators rate of ISK1.40 per minute will remain in must prove that they have ceased the effect until 31 December 2016. In addi- alleged conduct and must launch proce- tion, the regulator is also consulting the dures to reimburse affected users. public on maximum wholesale prices for call origination and termination in fixed telephone networks, following analyses of

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sible delay and high transfer capacity said. In line with the government’s ensuring high level of quality service. agenda, it is estimated that another telecom industry player, China Uni- com, will follow the steps taken by its Mobile service provid- competitors and announce plans to ers move to cut roaming terminate roaming fees in the near future, according to experts. “Roam- charges in China ing charges are out of date, and cur- The major domestic mobile telecom rently, there is virtually no country in service operators, including China the world that still charges for that,” Mobile and China Telecom, have an- said Liu Dingding, an independent in- nounced plans to phase out roaming dustry analyst, noting that the trend charges amid Chinese government of abandoning these fees and charg- ing by traffic is gaining momentum Market 2 and Market 3. The regulator calls and improved consumer use in the telecom industry. Li Yue, China determined that the wholesale price of fourth-generation (4G) systems. Mobile’s CEO, said at a press confer- for call origination in fixed networks State-owned China Mobile plans to ence Thursday that the move to phase should not exceed ISK0.50 per min- phase out its long-distance roaming out roaming fees will pose huge risks ute, while the wholesale price for fixed charges by the end of 2016, an em- for the company, given that voice call termination should be capped at ployee of the company, who prefers to services generated 37 percent of the ISK0.14 per minute; the current maxi- be unnamed, told the Global Times on company’s revenues in the first half mum rates – in effect until 31 De- Sunday. The cancellation was already of 2016, the newspaper Guangzhou cember 2016 – are ISK0.56 (fixed call under way, and roaming charges for Daily reported. Yet for telecom service origination) and ISK0.16 (fixed call the Beijing-Tianjin-Hebei area ended providers like China Mobile, revenues termination). All interested parties in August 2015, said the employee. generated by traffic are on the rise. In have been given until 1 September to China Telecom rolled out a similar the first half of 2016, China Mobile’s submit their comments on the draft plan on July 15. Yang Jie, CEO of China revenue increased 7.1 percent to 370 decisions. Telecom, said at the 8th Intelligent Terminal Industry Forum that in ad- billion yuan ($56 billion), according dition to abolishing roaming charges, to the company’s financial statement. Mobily completes the re- all the company’s services will gradu- Traffic revenue surged 26.7 percent to gional interconnection ally be charged by traffic, including 195 billion yuan, accounting for 43.3 voice calls, domestic news portal 163. percent of the total and for the first with Iraq com reported in July. The carriers’ time surpassing the income from tra- moves followed an announcement by ditional businesses and becoming the TEtihad Etisalat “Mobily” has success- the Ministry of Industry and Informa- biggest revenue source. As of the end fully completed the implementation tion Technology (MIIT) in April, which of June, the company’s 4G users to- of regional interconnection project urged the three major telecom service taled 429 million, said the statement. with Iraq by the high-speed fiber- providers to pursue the marketization The figure represented 51 percent optic network to be part of a broad- of telecom fees and accelerate the of the customer base, an increase of band network. The implementation of pace of abolishing roaming charg- 28 percentage points from the same the project included the provision of es. The MIIT’s involvement largely period in 2015. “The popularity of 4G special infrastructure of fiber optic ca- pushed forward the process, experts services, as well as the growing traf- bles stretching for a distance of more than 80 km from the city of Arar, in Northern borders of Saudi Arabia to the Iraqi border, which allows greater speed and addition of new telecom markets in the Middle East. This comes as an extension to Mobily’s strategic projects that included interconnect- ing Kuwait, UAE, Qatar, Bahrain and Jordan, in addition to the three in- ternational marine cables connecting Jeddah and Khobar, which allows Mo- bily to provide high-quality services in collaboration with global partners in telecom sector and through its highly reliable infrastructure. It is worth men- tioning that Mobily has local FTTH network extending more than 22000 kilometers between the cities in ad- dition to the most advanced FTTH metro network within cities extending more than 5,000 which provides un- precedented speeds that reach up to 200 Mbps with stability in the connec- tivity performance and minimum pos-

40 wholesale updates

SAMENA TRENDS AUGUST 2016 fic revenue, heralds the time to initi- ency to ensure quality provision of ICT with EU telecom rules; if the Austrian ate a reform to transform the revenue regulatory interventions for the ben- watchdog decides against amending structure,” Liu told the Global Times efit of Ghanaians. Through the ICH, its draft proposal, then it has to pro- on Sunday, noting that industry play- we are able to increase focus on trans- vide a valid justification. ers should shift their focus on Internet parency at all levels of operations to value-added service, like games and ensure ethical functioning within the e-commerce. telecommunication industry.’ URCA issues ruling on BTC/NewCo national Ghanaian parliament EC asks Austria to amend roaming pact approves Interconnect fixed, mobile termina- Bahamian regulator the Utilities Reg- Clearinghouse regula- ulation and Competition Authority tion rate proposal (URCA) has issued its final determina- tions The European Commission (EC) has is- tion on whether cellular incumbent the Bahamas Telecommunications The parliament of Ghana has ap- sued a recommendation asking Aus- Company (BTC) should provide na- proved the regulations covering the tria’s Regulatory Authority for Broad- tional roaming to new licensee New- operations of an Interconnect Clear- casting & Telecoms (RTR) to amend or Co during the latter’s rollout period. inghouse (ICH), confirms a press re- withdraw its proposal to allow Aus- URCA’s order imposed on BTC the lease from the National Communica- trian operators to differentiate fixed obligation to provide NewCo with tions Authority (NCA). The Electronic and mobile termination rates based national roaming services for a pe- Communications (ICH Services) Regu- on the member state from which the riod 24 months, by the end of which lations 2016 – also referred to as the call originates. In its draft measure, the newcomer is required, under LI 2234 – aims to regulate the activi- the RTR proposed higher price caps the conditions of its license, to have ties of service providers who connect for calls originating in member states rolled out its own network with na- and route national and international which have not brought down mobile tionwide coverage. URCA ruled that traffic through an ICH, while also and fixed termination rates in line with the 36-month period requested by overseeing the operations of the ICH the EU Recommendation on Termina- NewCo backer Cable Bahamas Ltd itself. Interconnect rates will remain tion Rates. Following a three-month (CBL) was ‘unnecessary and exces- unchanged until January 2018, how- investigation, the EC has concluded sive’, whilst the 18-months suggested ever, in a move to protect consumers that a measure adopting the origin of by BTC would not be in the national from price hikes, with the NCA noting the call within the EU as the sole crite- interest, as NewCo would not have that the costs of licensing and operat- rion for setting a higher rate, is not in completed its rollout within that pe- ing the ICH could have resulted in an line with the non-discrimination prin- riod. In its decision, URCA determined additional cost to operators who may ciple and would deepen existing bar- that the national roaming agreement have passed this onto consumers. Di- riers in the internal market. Brussels should include the following services: all incoming and outgoing calls to and from NewCo’s mobile customers, regardless of origin or destination; all inbound and outbound messaging services to or from NewCo’s mobile subscribers; access to calling features for NewCo’s mobile customers; and access to mobile internet services for NewCo’s mobile customers. The order also specifies that BTC is not required to support international roaming agreements between NewCo and its foreign counterparts.

rector General of the NCA, Mr. William has requested the RTR to withdraw Tevie, commented: ‘The authority will its proposal or to amend it so that continue to undertake its regulatory the termination rates are set in line functions with integrity and transpar-

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greatest volume growth. In the next Aviation Industry Prepares for 12-24 months, 55% of contact centers plan to expand or add inbound voice queues to accommodate the Digital Transformation take- expected increase. off as ICT Unifies Airlines and Deploying the right ICT solutions improves margins and boosts Airports to Create Seamless brand power. Collaboration between specialists in the fields of ICT and aviation can Passenger Travel Experience deliver call center solutions that improve margins and elevate the passenger experience across their journey. app that combines live data from the airport’s systems with Google For example, by using their unique indoor maps, passenger booking collective experience in the air details, location and flight time to transport industry, Orange Business provide personalized instructions Services and SITA, together with and updates for passengers. Genesys through their CRM solutions, These include check-in reminders, offer a seamless integration between directions to bag-drop, departures Genesys Contact Center solutions and and gate location, plus real-time gate a range of unified communications and baggage notifications delivered solutions, providing contact center Mr. Mohammed Retmi directly to their mobile phones. infrastructure that supports a Head of EMI Orange personalized customer service. Applications for Business, Passengers are increasingly adopting Orange Business Services the self-service option when offered Offering an omni-channel 360 degree – be it for booking and check in, bag customer experience is not easy, but drop or boarding – and increasingly the partnership between Genesys, through a mobile device, as they a leader in contact center software move between airline and airport. No industry is immune to digital based solutions, SITA, a global IT transformation, including the com- provider to the aviation industry, mercial aviation sector, which is look- Don’t discount the power of the and Orange Business Services, the ing to ICT solutions to boost margins, voice channel leading contact center cloud-based reduce operating costs and meet the solution provider, can deliver such demands of travelers who expect a Implementation of flexible, cloud- experiences seamlessly, securely, and seamless, sophisticated passenger based contact centers play a pivotal cost effectively. experience. role in supplementing the delivery of personalized information. The power Contact Center Advanced Services ICT spend within the aviation sector of voice cannot be discounted in uses the latest technology to improve is growing as the industry attempts providing a precise and timely answer a contact or call center’s efficiency to catch up with its digitalized to your passengers’ most pressing and ultimately, customer satisfaction. passengers and keep the ground and questions. Whether you have a large centralized the air connected. This is being done office or multiple sites around the by unifying communications and When ICMI (International Customer globe, Contact Center Advanced combining them through multiple Management Institute) asked Services can be custom built for your channels – online, social, voice, face consumers why they preferred phone business and meet the demands of to face – across airlines, airports and service to other channels, it was not your passengers. even government agencies. Through because it was the most convenient the Internet of Things, passengers are option or the one that best fitted This will have a powerful impact on the being connected via the increasingly their lifestyle – but because voice passenger experience. By delivering ubiquitous smartphone to a range remains the most effective way to get information when and where it is of dedicated travel services and to the best answer. needed means empowering your information. passengers to take control of their A total of 92% of organizations say own journeys. One example of this “holistic that customer engagement is a connectedness” is European low- priority for them and 81% of them cost carrier, easyJet, which has recognize the linkages between partnered with London’s Gatwick customer experience and customer Airport to launch Mobile Host, an brand loyalty. And it is the phone channel that is still seeing the

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Technology NEWS

Sprint tri-carrier aggrega- on capable devices. Three-channel carrier aggregation is slated for enablement on tion reaches 275 Mbps capable devices via an automatic software update following network deployment. Sprint reached peak speeds of 275 Mbps in three-channel carrier aggregation lab tests using the LG G5, one of the first de- Public cloud spending to vices on the market to support the func- tionality. During an earlier test, Sprint double by 2020, report carrier aggregation reached 295 Mbps Revenue from public cloud services will with HTC 10. Sprint is independently test- reach over $195 billion in 2020, more than ing three-channel carrier aggregation in doubling the current market size, accord- Technology its labs to evaluate overall performance, ing to new research. Western Europe will speed, and reliability as it prepares for continue to represent around a fifth of Updates LTE Plus network deployment. Carrier ag- this global market, with revenues growing gregation is an LTE-Advanced feature that from $15 billion in 2015 to $38.6 billion in bonds together bands of spectrum to cre- 2020, research house IDC predicted. This ate wider channels and produce more ca- represents a five-year compound annual pacity and faster speeds on capable devic- growth rate of 20.8 percent. Software as es. Essentially it creates a wider lane that a service accounted for over two-thirds of allows more data traffic to travel at higher all public cloud revenue in 2015, and will rates. At present, Sprint offers 22 devices continue to represent the largest portion that actively support two-channel carrier in 2020. However, platform as a service aggregation on its LTE Plus network. Two- and infrastructure as a service will grow channel carrier aggregation delivers peak at a quicker rate, IDC said. The forecast speeds of more than 100 Mbps in 237 differs hugely to a report from Gartner LTE Plus markets across the country using in January this year, which predicted that 40 MHz of spectrum on the company’s the worldwide public cloud services mar- 2.5GHz cell sites. Six devices currently of- ket would break through the $200 billion fered by Sprint are three-channel carrier barrier by the end of 2016. Bo Lykkegaard, aggregation capable, namely the HTC 9, IDC’s Associate Vice President, Software HTC 10, LG G5, Samsung Galaxy S7, Sam- & Cloud Services Trackers, said: “Public sung Galaxy S7 Edge, and Samsung Note cloud services have changed how Europe- 7. With three-channel carrier aggregation, an organizations evaluate and select soft- Sprint will use 60 MHz of spectrum to pro- ware. “Aspects such as very fast rollouts, vide peak speeds of more than 200 Mbps continuous upgrades, and ease of post-

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structure is installed by a diverse set 5G connections to reach of suppliers and maintained by differ- ent agencies that sometimes work in 690m by 2025: Strategy isolation. The interconnection of city Analytics systems will demand standardized in- terfaces, and this is where standards 5G connections are set to reach 690 bodies such as IEC, ISO, ITU, IEEE, CEN- million by 2025, with 5G handset ship- CENELEC, ETSI and others will have an ments also expected to rise to 300 important role to play. For city plan- million by this point according to lat- ners, utilities and service and technol- est predictions from Strategy Analyt- ogy providers, standards are essential ics. The research company explained enablers in achieving consistent levels that the 690-million figure relates to of performance and quality, as well what it calls “user-linked subscrip- as compatibility between technolo- tions” and does not include industrial gies. Representatives of the standards machine-to-machine connections. bodies will meet regularly to ensure “So we are including connections for implementation reconfiguration are that their cooperation upholds prin- which there is an individual user end- now top criteria for new application ciples of mutual respect, transparency, point (either B2C or B2B), such as for purchases. “Some European countries openness and sharing of new findings. consumer electronics products, but have started the adoption of public Over the coming months the organi- does not include vertical/industrial cloud services later than others, due zations will work together to develop applications,” explained Phil Kendall, to concerns related to information a viable framework for cooperation. A executive director at Strategy Analyt- security, data location, solution avail- follow-up meeting organized by ISO ics. This definition includes handsets; ability, and other issues.” Telcos, no- is planned for 2017. modem and embedded connections tably Deutsche Telekom, are looking in PCs/notebooks/laptops; tablets; to get a share of the market, which ITU’s key role and connections in the consumer is led by the likes of Amazon and “ITU has a leading role to play as the electronics category including con- Google. The Germany-based operator United Nations specialized agency for sumer wearables, connected cars and launched its Open Telekom Cloud in ICTs,” said Houlin Zhao, ITU Secretary- more. In June, Ovum forecast that March, with the European Organiza- General. “The Key Performance In- global 5G subscriptions would reach tion for Nuclear Research trialing the dicators that we have developed for 24 million by the end of 2021 but was service. Smart Sustainable Cities as well as referring only to broadband connec- our various international standards tions. Strategy Analytics also warned World’s Leading Stan- for the Internet of Things will provide that fragmentation is highly likely as valuable tools to drive the New Urban operators in different regions pursue dards Bodies Join Forces Agenda and achieve the Sustainable different 5G paths. “Significant work is on Smart Cities Development Goals.” “Cities devel- needed to marry the appeal of a uni- op and mature in a diverse range of fied early 5G standard with the longer Inspired by dialogue at the World ways, reflecting differences in history, term need to support diverse market Smart City Forum in Singapore, July culture, geographic and economic requirements,” the company said. Se- 13, 2016, representatives of IEC, ISO, environments”, according to Chaesub nior analyst Guang Yang noted that ITU, IEEE, CEN-CENELEC and ETSI Lee, Director of ITU’s Telecommunica- 5G network plans have developed convened at a follow-up meeting ini- tion Standardization Bureau. “It is a well in 2016, “driving an ecosystem tiated by IEC to discuss means of ac- great challenge to identify the com- which will put 7% of mobile con- celerating and better aligning their mon characteristics of Smart Cities in nections on 5G networks by 2025.” standardization work in support of a global sense. However it is clear that “China’s 2020 5G launch plans brings Smart Cities. The shared commit- essential element of a city’s ‘smart- it closer to early adopters in the U.S., ment to cooperation resulting from ness’ will depend on information and South Korea and Japan, [which] are the meeting is expected to assist the communication technologies (ICTs).” speeding up progress to meet the standardization community in de- IEC General Secretary and CEO Frans broadband access demands from the veloping a well-coordinated contri- Vreeswijk agrees. He said, as a global, Olympic Games and competition of bution to the upcoming Habitat III. not-for-profit organization, the IEC non-traditional players. In contrast, Sustained investment in information saw the opportunity for greater Smart European operators are currently pay- communications technology (ICT) in- City cooperation and provided the ba- ing more attention to opportunities frastructure and innovation are crucial sis for such a meeting. We are excited in IoT,” Yang said. In terms of handset drivers of economic growth and de- about the prospect of more efficient, sales, Strategy Analytics director Ken velopment and achieving the United inclusive standards development Hyers said the first commercial 5G Nations’ Sustainable Development for cities. Cities are complex, multi- handsets would appear in small num- Goals (SDGs). With over half the world dimensional systems of systems. No bers in 2020 in South Korea and Ja- population now living in cities, ICTs, single standards organization will be pan. In 2021, more launches are then mass transport and renewable energy able to provide everything cities need. expected in the U.S., the UK, Sweden are becoming ever more important. Here, as elsewhere, broad collabora- and the UAE with commercial sales tion is required. In this context, some- set to exceed 300 million by 2025. “By Interconnected systems will need times one organization will lead an 2022 tens of millions of 5G handsets standardized interfaces effort and at other times it will share will be sold, and as a proportion of to- In today’s cities much of the infra- its expertise while another one leads.” tal handset sales will reach low single digit percentages,” Hyers said. Senior

44 TECHNOLOGY UPDATES

SAMENA TRENDS AUGUST 2016 analyst Ville-Petteri Ukonaho also Service & Operations, said of the mat- were: the Netherlands, China, New pointed out that the first commercial ter: ‘Our EE mobile business already Zealand, Trinidad and Tobago and 5G handsets “will likely come with boasts the biggest 4G network in the Bosnia and Herzegovina. The bot- very high price tags.” “While the first UK, which is set to cover 95% of the tom 5 in wifi all had connections less trial 5G handsets in 2018 are expected country by 2020. We will build on that than 20 percent of the time and were: to have teething problems, including foundation to develop the next gen- Democratic Republic of the Congo, short battery life, no 4G handover or eration of LTE-Advanced Pro and 5G Sri Lanka, Afghanistan, Myanmar unstable connectivity, by 2020 these services over the next few years. It’s and Ethiopia. Turning to individual issues will be largely resolved,” Uko- still early days for 5G technology, but countries, OpenSignal said that while naho added. experience tells us that a collaborative South Korea did not have the absolute approach is key to success. We’re de- highest 4G speeds, it led the speed lighted to be working with Nokia to table because the inherently fast tech- BT and Nokia ink 5G drive a common approach to 5G, and nology was the most ubiquitous and research collaboration to develop exciting use cases which it is easier to find an LTE connection bring together our combined experi- than it is to find a 3G HSPA connec- agreement ence in fixed and mobile technolo- tion. Japan meanwhile was placed British fixed line incumbent BT has an- gies.’ second in 3G/4G availability, but 9th nounced that it has signed a research in overall speed, due to its more mod- collaboration agreement on 5G tech- South Korea tops mobile erate LTE speeds. The US ranked 19th nologies with Finland’s Nokia. In a in availability, but just 39th in overall press release confirming the develop- data speed, Afghanistan speed with slow networks on both 4G ment it was revealed that the two com- last - study and 3G. Globally, only two countries panies have agreed to work together averaged data speeds faster than 30 Average download speeds over 3G Mbps, and only nine had averages and 4G networks range from 41.3 greater than 20 Mbps. Meanwhile, 21 Mbps in South Korea down to just countries averaged less than 5 Mbps 2.2 Mbps in Afghanistan, according and the median speed in the list was to the latest data harvested from its about 8.5 Mbps. users by coverage mapper OpenSig- nal. Among the 95 countries sampled Du claims ‘20G’ FTTH for its research during the second quarter of 2016, it said 93 had mobile broadband data signals over 3G or 4G available Dubai-based telco Du has announced at least half of the time. WiFi contin- the deployment of a ‘20G’-capable ued to be the dominant form of con- fiber-to-the-home (FTTH) broadband on potential customer use cases for nection via smartphone in a range service in partnership with China’s 5G technologies, the creation of 5G of countries with both high and low Huawei, potentially trumping fel- Proof of Concept (PoC) trials and the availability of mobile broadband and low UAE operator Etisalat, which, as development of the emerging tech- the Netherlands topped the list, with CommsUpdate reported in May, has nology standards and equipment. It is 70 percent of all connections mea- been working with Huawei on testing understood that these trials will focus sured over wifi, according to the 10Gbps passive optical network (XG- on the technology enablers for 5G company’s inaugural Global State of PON) technology. TradeArabia reports including mmWave radio and conver- Mobile Networks report. The top 10 that Du has claimed a regional first by gence, as well as potential commer- countries for availability of either 3G launching its latest ultra-high speed cial services including ultrafast mobile or 4G connections were, in descend- network upgrade for residential sub- broadband, mission-critical services ing order: South Korea, Japan, Israel, scribers, expanding its capabilities for and the Internet of Things (IoT). This Australia, Singapore, New Zealand, cloud and video services whilst giving agreement builds on an existing re- Finland, Taiwan, Sweden and Canada. customers huge upload/download lationship between the duo in which The bottom 10 were, Algeria, Pakistan, speeds and reducing latency on home Nokia supplies BT’s 21C Core Routing Iran, Togo, Nepal, Trinidad and Toba- broadband connections. The article Platform and both the BT/EE subscrib- go, Iraq, India, Ukraine and Guyana, quotes Jasim Al Awadi, Du’s vice presi- er register infrastructure and part of the last two of which had less than 50 dent of Network Infrastructure & Ser- the EE Radio Access Network (RAN). percent availability of a mobile broad- vices, as saying that the ‘20G’ project Collaboration between BT and Nokia band connection. By overall speed of with Huawei ‘will effectively enable us is already underway, meanwhile, with mobile broadband, the top 10 were, to provide a better customer experi- the latter confirmed to be conduct- in descending order: South Korea, ence with new services and solutions.’ ing trials of its latest 5G-ready radio Singapore, Hungary, Australia, Den- equipment at the BT Labs at Adastral mark, Norway, Netherlands, Lithuania, Park, Suffolk. This radio system, it was Japan and Sweden. The bottom 10 in Tele2 Eesti demonstrates noted, demonstrates key 5G technol- the survey all came in at lower than 5 ogy ingredients that are currently in Mbps and were: Togo, Pakistan, Sene- 5G in Tallinn; regulators standardization running on Nokia’s gal, Philippines, Trinidad and Tobago, seek 700MHz, 2500MHz AirScale radio access, including an Algeria, Iraq, Ethiopia, Costa Rica and entirely new 5G frame structure and Afghanistan. For wifi use, the top 5 feedback 4×100MHz carrier aggregation. How- in the survey all used the connection Tele2 Eesti has announced that it has ard Watson, CEO of BT Technology, more than 60 percent of the time and successfully demonstrated 5G mobile

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SAMENA TRENDS AUGUST 2016 broadband technology in capital city 0.5% was considered a pass mark). segments, and to tailor their wireless Tallinn. The trial, which was carried out Quality of Service capabilities built into connectivity through Network Slic- in conjunction with Finnish vendor Ericsson’s equipment also allowed for ing. Looking ahead, the operator is Nokia, achieved downlink transmis- the preemption and prioritization of continuing plans to deploy its first 5G sion speeds of 4.5Gbps, although the mission-critical railway services. Char- trial on the Gold Coast in 2018. With precise technical specifications used lotta Sund, Head of Customer Group regards to Telstra’s other 5G-related during the tests have not been made Industry & Society at Ericsson, says: activities, the telco has been contrib- available. Speaking at a media event, “The results of the tests performed to uting to the international 5G industry Tele2 Eesti CEO Argo Virkebau noted date are very promising and we will standards ‘to ensure that the upcom- that the download speeds comfort- continue to test a variety of modems ing technologies are suited to [its] ex- ably surpassed the 1Gbps transmis- to ensure we can provide robust LTE pansive rural environments, and take sion claimed by local rival Telia Eesti in networks for rail applications. We aim into account Australia’s unique flora in June this year, albeit over its existing to develop solutions that ensure en- the 5G channel modeling to provide 4G network. In related news, Estonia’s hanced rail safety through communi- the best possible experience for our Technical Regulatory Authority (TSA) cations-based train control and CCTV, customers’. and the country’s Ministry of Econom- as well as enhanced entertainment for ic Affairs and Communications (MKM) passengers through services such as have announced that they have start- voice, platform information, advertis- Mobile broadband pen- ed preparatory work ahead of the ing and Wi-Fi.” etration hits 90% in introduction of mobile broadband OECD area frequencies in the 694MHz-790MHz Telstra to carry out 5G (700MHz) and 2500MHz-2690MHz There are now over nine high-speed (2500MHz) spectrum bands. A public demo with Ericsson this wireless internet subscriptions for ev- consultation into the process is now September ery 10 inhabitants in the 35-country open, and will run until 5 September OECD area, with mobile broadband 2016. Australia’s Telstra has confirmed it will penetration soaring to 90.3 percent undertake a demonstration in Sep- at the end of 2015, compared to 81.6 Ericsson and Bombar- tember 2016 with vendor Ericsson, percent in December 2014. Data re- aiming to ‘look at 5G capabilities in leased by the OECD revealed the total dier test LTE networks at a real world environment’. In a blog number of subscriptions rose to 1.153 speeds up to 200 km/h post, Telstra’s group MD for network, billion in a population of 1.27 billion Mike Wright, said that his company people, some 117 million more than Ericsson and railway carriage builder, will be the first in the country to tri- a year earlier. Japan has now overtak- Bombardier have completed trials of al Ericsson’s 5G radio test bed, with en Finland as broadband leader, with LTE networks for railway solutions at a view to testing the expected high a penetration rate of 138.8 percent simulated speeds of up to 200 kilome- speeds and ultra-low latency, as well versus 135.4 percent in Finland, and ters per hour. A total of 11 tests were as Multi-User Multiple-Input-Multi- there are now nine countries – Japan, conducted in a laboratory to deter- ple-Output (MU-MIMO). The dem- Finland, Sweden, United States, Den- mine the ability of the LTE networks onstration will also reportedly test mark, Australia, Estonia, New Zealand to support communications-based beam steering technology, which is and Korea – with penetration rates train control (CBTC) and multiservice designed to optimize mobile signals above 100 percent, compared to eight solutions. Examples of multiservice with less interference resulting in bet- countries a year ago. The US moved solutions are closed-circuit television ter network performance and more up to fourth from eighth place in the (CCTV), voice, platform information, capacity.Telstra confirmed details of ranking thanks to a growing demand advertising and Wi-Fi for passengers. other collaborations with Ericsson, for video and data in general and in- CBTC uses high-resolution location meanwhile, revealing that it has been creasingly competitive offers. Fixed- determination and high-capacity data embedding some of its employees line broadband subscriptions in the communications - such as those en- into the vendor’s 5G Research teams OECD area reached 371 million in De- abled by LTE networks - to support in Sweden to develop the 5G radio cember 2015, up from 356 million a automatic train protection, operation channel models and to train its en- year earlier, equivalent to an average and supervision functions. With more gineers in the fundamentals of fifth penetration of 29.0 percent. Switzer- accurate information about the ex- generation radio operations. Further, land, Denmark, the Netherlands and act positions of trains, operators can Telstra also highlighted a recent radio France topped the list with 51.9, 42.4, manage traffic in a more efficient and test at Ericsson’s 5G experience centre 41.3 and 40.4 percent respectively. In safe manner. CBTC systems are more which it said had delivered download terms of technology, DSL fell to 45.7 reliable than older train control sys- speeds of greater than 20Gbps in the percent of fixed broadband subscrip- tems, require less wayside equipment, lab. In terms of prepping its infra- tions, with fiber now accounting for have built-in redundancy features, structure, Telstra said it has started 19.4 percent of subscriptions, up from and enable operators to make op- modernizing its wireless core network 16.2 percent in December 2014, and timal use of tracks and trains by re- in preparation for 5G with network cable (32%) making up most of the sponding to demand more swiftly and function virtualization (NFV) and soft- remaining share. Japan, Korea and efficiently. In the CBTC tests, the LTE ware defined networking (SDN) tech- Latvia had the highest shares of fiber networks achieved uplink and down- nologies. It claimed by doing so this in fixed-line broadband at the end of link latencies far below the threshold would allow it to support increased last, with 73 percent, 71 percent and of 100 milliseconds and packet losses network configuration and deploy- 61 percent respectively. The OECD approaching zero (anything less than ment flexibility to different market added that there were 127 million

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M2M SIM cards in use by the end of tion MoU this July. The demand for ogy is a key component in the field 2015 versus 107 million at the end of spectrum to provide higher-capacity trial as participants will use sensors 2014. Sweden topped the machine- mobile access and self-backhaul has and data aggregation services from to-machine communications ranking, been rising drastically due to soaring members of the LoRa Alliance™ to with 69 M2M SIM cards per 100 in- mobile broadband communications ensure they are LoRaWAN-compliant. habitants, followed by New Zealand, traffic. The situation is even more Another goal of the trial program is Norway, Finland and Italy, although critical when operators are faced with to solicit feedback from participating the OECD cautioned that data is not the challenge to deliver ultra-high companies through information shar- yet fully comparable for all countries. throughout in emerging 5G network. ing sessions, meetings and surveys. As traditional lower bands used in “We are excited to launch our new current cellular access becomes ever LPWAN for field testing so that we Singtel, Ericsson 5G more crowded, there is an increas- can validate various use cases for our test achieves 27.5Gbps ing effort in the industry to explore network and collect valuable informa- the centimeter wave (cmWave) and tion we can use to enhance our IoT speed millimeter wave (mmWave) bands to offerings,” said Shigenori HORI, Se- Singapore’s leading mobile operator meet broadband speed requirements. nior Manager of NTT West’s Business by subscribers Singapore Telecommu- E-Band is millimeter wave (mmWave) Design Department. “After careful re- nications (Singtel), working in part- band and can be used as a comple- search, we chose a LoRaWAN-based nership with Sweden’s Ericsson, has mentary spectrum band to the low- network platform because it offered successfully tested fifth-generation er-band to deliver ultra-high mobile a large ecosystem of open standards- mobile technology, part of the city- broadband user experience. Especially based solutions through the LoRa Al- state’s push to become a ‘connected it can enable new applications such liance, while also providing the long society’. In the tests, which used Er- as VR/AR and act as self-backhaul for range and low power requirements icsson’s 5G radio prototypes, the the 5G mobile service traffic. Eric Xu, our customers need at a low cost. pair achieved a peak throughput of Rotating CEO of Huawei, said: “5G will Now that we have launched the field 27.5Gbps, with latency of just two mil- introduce full spectrum access to sup- trials, we are looking forward to see- liseconds (2ms). The demo also intro- port AR, VR, Smart Automobile and ing and sharing the results.” “It’s great duced what Singtel and Ericsson claim other unknown new services. The joint to see a carrier like NTT West play a to be the world’s first ‘end-to-end low trial of 5G mmWave connectivity in a leadership role in deploying and test- latency live video streaming’ over 5G. real world radio propagation environ- ing a LPWAN for IoT applications in The cellco has also called on other in- ment and co-existence of different ra- Japan,” said Marc Pegulu, Vice Presi- dustry players to join it in developing dio links is encouraging. I highly value dent and General Manager of Sem- new services and applications within the cooperation with Vodafone, and tech’s Wireless and Sensing Product a ‘5G ecosystem’, as it readies itself believe we will achieve more progress Group. “We are looking forward to for the anticipated standardization in 5G, together with Vodafone and seeing the various IoT use cases that of 5G in 2020 by deploying key pre- other industry partners.” will be enabled by this network. We 5G technologies including carrier ag- are also pleased that after reviewing gregation (CA), 256QAM (quadrature New LoRaWAN Network several solutions, they chose a net- amplitude modulation) and Narrow- work based on the LoRaWAN speci- Band Internet of Things (NB-IoT). in Japan Now Open for fication, which, through the LoRa Al- liance, is quickly becoming a global Field Testing IoT Appli- standard for IoT applications requir- Huawei and Vodafone cations ing long range, low power and low cost.” The LoRa Alliance, which was achieve 20GBPS for Semtech Corporation a leading sup- launched in March 2015, is a group single user outdoor at plier of analog and mixed-signal of over 300 companies committed to semiconductors, today announced driving and enhancing the LoRaWAN e_band that its LoRa® wireless RF technol- specification to ensure interoperabil- ogy will be featured in a new low Huawei and Vodafone have com- ity and scalability of LPWANs and IoT power, wide area network (LPWAN) pleted a 5G mmWave field test at applications. Through its work with deployed by regional telecom car- Vodafone’s offices in Newbury, UK. member companies and IoT industry rier Nippon Telegraph and Telephone The test covers SU-MIMO (Single groups, it is making LoRaWAN the West (NTT West) in the Kansai area User Multiple Input Multiple Output) standard for LPWANs focused on low of Japan to field test a wide range of with a strong reflection path to reach power, long range IoT applications. Internet of Things (IoT) applications 20Gbps UE peak rate, and MU-MIMO To date, there are LoRaWAN public such as smart metering and agricul- (Multi User Multiple Input Multiple and private networks in more than 50 ture, system monitoring of networks Output) for long-range UE to reach countries worldwide. The NTT field and equipment, asset and people 10Gbps peak rate. It is the world’s first trial period began at the end of June tracking, and environmental warning 5G outdoor field test at E-Band reach- 2016 and will continue through Feb- systems. The purpose of the field trial ing 20Gbps peak rate for a single user ruary 2017. It covers the Kansai area is to test the commercial feasibility of device with high spectrum efficiency. of western Japan. various IoT use cases on NTT West’s This peak user rate is targeted by ITU- LoRaWAN™-based LPWAN. Partici- R as a 5G requirement. This is a key pants selected for inclusion in the milestone after the two companies field trial will be able to deploy and signed a strategic MoU on 5G tech- test their applications on the NTT nologies last year and a 5G Accelera- West network. Semtech LoRa technol-

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Policy Implications of the Internet of Things

The world is going digital. The Internet of the Middle East region to get the policy Things (IoT) has become a reality. Homes, environment right, in order to maximize workplaces, vehicles, hospitals and cities the benefits that will stem from the are being transformed. The IoT presents digital era. a huge economic and social opportunity for our communities and its going to take Policy issues impacting the evolution companies, citizens and governments of the Internet Of Things working in tandem to seize it. There are a number of specific policy initiatives that will impact the IoT, Make no mistake the IoT is already including network infrastructure and here. In the Middle East and Africa over spectrum policy, security, data protection 200 million machine to machine (M2M) and privacy, open standards and required connections exist today and with a skill sets. combined annual growth rate of 22% will be 2.5 times larger by 2020 with over 536 Policy makers in our region see the million connected devices . This is a faster Internet of Things for the opportunity it rate than any other region, including the presents and look to foster and support US and Europe. IP traffic will grow at an this growing area. UAE and Saudi are even faster rate as each device generates leading the pack. His Highness Sheikh increasing amounts of data. Every year Mohammed bin Rashid Al Maktoum’s up to 2020, half the amount of traffic vision for Dubai to be the ‘Smartest City again will be added to the total. in the World by 2017’ is well under way. Sensors embedded throughout the city This converts to huge economic potential will connect everything from utilities to – we estimate the 10-year economic urban transportation, from entertainment value at stake for the private sector alone to energy, and from policing to politics. Mr. Aziz Mohamed Director, Government Affairs in the Middle East stands at $363 billion. On April 2016, His Royal Highness Middle East. But we are still at the beginning. Little Mohammed Bin Salman Bin Abdulaziz Cisco Systems more than 1% of objects that may one Al-Saud, Deputy Crown Prince and day be connected currently are. Chairman of the Council of Economic and Development Affairs announced Saudi That’s why it’s crucial for policy makers in Arabia’s Vision 2030 in order to diversify

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Image: 2016 Cisco VNI Complete Forecast – Middle East & Africa

its economy and create new knowledge skills in its young to address the new competences that will be required on and dynamic population. Local regulators in both UAE the labour market. Cisco’s Networking Academy, which and Saudi regularly meet with industry players including has helped more than 6 million people prepare for the IT technology vendors and service providers to review those workforce, has developed new curricula on the IoT and policy issues and how to build the right ecosystem for smart grids to prepare and build the workforce of tomorrow. growth, healthy competition and fostering innovation. Now is the time to innovate and we must be bold. The digitization opportunity is massive and the potential that We at Cisco actively participate in many discussions with digitization will bring to the Middle East will depend in regulators across the region and can say that there is so part on the ability to develop a policy environment that much energy and trust, which are essential for the IoT to enhances access to the Internet, builds the foundation for a blossom. Both policy makers and private sector actors have digital economy and removes barriers to the global digital the same ambition to ensure systems are secure, data is market. Cisco is ready to partner with government leaders protected and the right network deployment conditions and policy makers on this journey. are in place. Open standards and interoperability are encouraged to mature through a range of existing global industry-led standards bodies (SDOs).

Cisco’s role Cisco plays a key role in building out the Internet of Thing’s network of networks – intelligent, manageable, secure infrastructure that can scale to support billions of context aware devices. Technology trends such as cloud, mobile and data analytics all fit with the broader ecosystem and we are developing both the vision and business opportunity.

We are engaging in long-term partnerships with national leaders, industry and academia to develop a knowledgeable workforce, drive innovation through Innovation Centers and start-up incubators, extend the reach and impact of public services and create a secure and capable infrastructure. One example of our efforts to adapt to the digital age is

1 See Cisco VNI at http://www.cisco.com/c/en/us/solutions/collateral/service-provider/visual-networking-index-vni/mobile-white-paper- c11-520862.html 2 See Cisco study: Cisco Visual Networking Index: Global Mobile Data Traffic Forecast Update, 2015–2020 White Paper

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Measuring the Capability of Business Continuity Management & Disaster Recovery for KSA ICT Companies

The ICT companies in the Kingdom of ICT regards Disaster Recovery (DR) Saudi Arabia are expanding through new as a subset of BCM. It also considers services like cloud computing and IOT DR to possess the organizational or M2M. This article aims to consider ability to provide critical Network & assessing the business continuity and IT telecommunication capabilities and disaster management mechanism and services (after it is disrupted by an how to measure the level of readiness. It incident, emergency or disaster). also examines whether such mechanisms actually reflect reality or demonstrate Telecommunications services within the effectiveness within ICT companies Kingdom of Saudi Arabia are regulated committed to provide a robust business by the Commission for Information environment and meet the needs of Technology and Communications (CITC). their customers’ legal and regulatory Recently, CITC has published a Disaster requirements. Particular importance Recovery Regulatory Framework. STC is given to the protection of staff, is required to take all reasonable steps information, infrastructure, and business to comply with CITC’s DR regulatory processes, continuity of services, requirements acknowledge and accepted and revenue. Business Continuity internationally and industry’s best Management (BCM) is concerned with practices such as ISO 22301 and BCI the management of risks to ensure Good Practice Guidelines. the continued availability of mission critical processes, services, resources In 2010, in Saudi Arabia’s city of Jeddah, Mr. Thamer S.Al Hamed BC/DR expert and operations. ICT recognises that environmental disasters struck, causing Saudi Telecom Company effective BCM consequently enhances interruption in communication services. organisational resilience that ultimately The impact reached beyond basic safeguards the interests and reputation telecoms to e-services. A similar situation of stakeholders, brand and value creating may re-appear in the future. Thus activities. preparedness is crucial.

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Global competition is incessantly demanding Maturity Model (BCMM) and the Gartner BCP Maturity organizations to take measures that ensure the Model (Mingay, 2002). The former measures the extent to continuity of their business operations. Business continuity which an organisation is prepared for a serious negative has turned out to be a major concern for organizations to eventuality, such as a disaster. It classifies according to overcome negative factors. To continue their operations, six maturity levels, where levels one to three represent there is a desperate need to introduce and implement a organisations that are immature, to the extent that critical and well-thought management process for handling preliminary phases have yet to be completed in order to both people and processes. This approach of ensuring instigate an enterprise-wide business continuity system, the continuity of critical processes is known as Business whereas levels 4-6 represent organisations in the process Continuity Management (BCM). Organizations have become of achieving maturity towards this goal. Smit (2005) cites well-aware of the significance of BCM to avoid distribution Mingay (2002) who purports that the Gartner BCP Maturity in the event of a threat in their systems or infrastructure. Model is designed and functions to allow corporations to realise four objectives, namely, the evaluation of BCP BCM has eventually evolved as an effective tool for ensuring processes; allow high-ranking personnel to understand the delivery of organizations’ key products/services. It is, the requirements needed to achieve enterprise-wide BCP in fact, a business driven methodology unifying a broad application; “complete a gap analysis so realistic targets can spectrum of business management processes including be set; and provide a basis for peer-group comparison and quality management, risk management, facilities, supply establishment of industry standards.” The distinctive levels chain, disaster recovery, security, crisis communication, and of maturity the model classifies are based on the COBIT safety. Specifically, BCM is responsible for the development maturity model, which are partially based on the CMM of strategic and operational models to design and review maturity levels. Gartner identifies 19 performance measures the way an organization provides its services and products. required for of an organisation’s BCP maturity. However, the At the same time, it ensures the increase of resistance of criticism levelled against BCMM also applies to the Gartner distribution and interruption or even loss. BCM is all about BCP Maturity Model. guaranteeing the organization’s continuous operations and risk management. The research applies to the provider of telecommunication services in Saudi Arabia in terms of services, geographical The BCM Maturity Model coverage, and number of customers. It offers an expanding A maturity model allows an organization to have its methods range of wired, wireless, voice and data services, and and processes assessed according to management’s facilities to customers in all major geographical regions in best practice, against a clear set of external benchmarks. the Kingdom. The providers have an obligation to assure Maturity is indicated by the award of a particular “Maturity continuous and reliable telecommunication services by Level”. There are a number of different maturity models implementing the right level of protection for its IT systems in with different focus levels. The scope of a maturity model part of (data & broad band, e-business, e-governments).The can vary from a constituent process or a process within a detailed assessment of the business continuity and resilience certain function. The CMMI was developed at the Software of its network and IT services with particular attention to Engineering Institute at Carnegie Mellon University with the infrastructure, network design/architecture, and the representation from defence industry, government, and related organizational capabilities .Technology streams were traversed using a variety of means, including review of documentation, access and interviews of key personnel, and visits to key sites in different locales within the Kingdom. There is a huge demand of the services providers like STC and Mobily from E-government program, ministries (Health, Finance, Interior, Education, etc). Therefore, I principally focus on the critical system that has a higher impact on part of technology, people, cost and how each of them can be placed on one dashboard for appropriate Figure 1 – Umbrella of Business Continuity Management monitoring and consequent mitigation of risks ,Some critical academia. Currently, it is operated and maintained by the questions are as follows: CMMI Institute .The BCM maturity model starting from 2002 the Gartner set the new maturity model (mingay,2002) 1. Which kind of technology services has a direct impact? a maturity model is can be defines as staged structure of 2. What are the critical components of the service? maturity level ,Smit (2005) is defended another Maturity 3. How is the BC capability or maturity level measured? model that demonstrate the metrics , Business Continuity 4. How it is discovered if it is compliant with CITC Maturity Model (BCMM), Smit (2005) identified two BCM regulation and the international Standard of BC? maturity models that demonstrate the required merits, namely the Complete Public Domain Business Continuity

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SATELLITE NEWS

NASA Awards Launch Con- tigations, Geodesy and Heat Transport (InSight) mission to Mars in May 2018. tract to ULA for Mars 2020 The Mars 2020 mission is to build on Rover Mission the achievements of Curiosity and other Mars missions, including taking and seal- NASA has selected United Launch Alli- ing samples of rock and soil for potential ance (ULA) to provide launch services for return to Earth by a future mission to the Mars 2020, a rover mission to conduct Red Planet. The total cost for NASA to geological assessments of its landing site launch Mars 2020 is approximately $243 on Mars, determine the habitability of the million, which includes the launch service; environment, search for signs of ancient spacecraft and spacecraft power source Martian life, and assess natural resources processing; planetary protection process- and hazards for future human explorers. ing; launch vehicle integration; and track- Satellite The mission is targeted for launch in July ing, data and telemetry support. 2020 aboard an Atlas 5 rocket from Space Updates Launch Complex 41 at Cape Canaveral Air Force Station in Florida. ULA received the VNPT-Vinaphone teams contract through a competitive procure- up with Thuraya for mobile ment under the NASA launch services contract. The company has launched all satellite service Mars-bound U.S. spacecraft, including the Thuraya Telecommunications has an- Spirit, Opportunity and Curiosity rovers, nounced the signing of an agreement with VNPT-Vinaphone for the establishment of mobile satellite and maritime communi- cation services in Vietnam. The deal will give the Vietnamese telecoms operator 100% coverage of the country’s territory, including its islands and mountainous ar- eas, as well as coverage of ‘two-thirds of the world’ by utilizing Thuraya’s network. With the satellite mobile and post-paid Vinaphone SIM, customers will be able to make voice calls, send SMS and use and is also the launch provider for NASA’s GPS from any location in Vietnam. In its Interior Exploration using Seismic Inves- initial launch phase, VNPT-Vinaphone will

52 satellite updates

SAMENA TRENDS AUGUST 2016 introduce Thuraya’s XT-Lite handsets ing its land and maritime handsets One industry official said the tepid and maritime communication solu- available to the Vietnam Posts and response by satellite operators fol- tion SF2500 for Vietnamese consum- Telecommunications Group (VNPT). lowed FCC Chairman Tom Wheeler’s ers, government agencies and enter- This agreement will extend VNPT Vi- warning that he would not take kindly prise customers. VNPT-Vinaphone is naPhone’s coverage to two thirds of to any negative statements issued a wholly owned subsidiary of national the world by using Thuraya’s network, after the ruling. “We were told the PTO Vietnam Posts and Telecommuni- including full coverage over Viet- chairman wanted us to say nothing, cations Group (VNPT), itself owned by nam’s territory counting its islands, and that if we felt compelled to say the Vietnamese government. according to Thuraya. With the satel- something, that it should be neutral lite mobile and postpaid VinaPhone in tone,” this industry official said. SIM, customers can make voice calls, “We were told the chairman was still Eutelsat concludes agree- send SMS, use GPS and stay in touch angry with the satellite industry after ment with SpeedCast to from any place in Vietnam. This over- WRC-15.” WRC-15, or the World Ra- comes terrestrial limitations caused diocommunication Conference, was sell stake in WINS by distance, infrastructure, weather or the most recent meeting of global Eutelsat Communications (NYSE Eu- geography. In its initial launch phase, wireless spectrum regulators. Wheeler ronext Paris: ETL) and SpeedCast In- VNPT will introduce Thuraya’s XT-Lite and the U.S. delegation had urged ternational Limited (ASX: SDA) have handsets and maritime communica- that studies begin on the shared use signed an agreement whereby Speed- tion solution SF2500 for Vietnamese of Ka-band spectrum between 5G Cast will acquire Eutelsat’s 70% stake consumers, government agencies and satellite systems, a proposal the in WINS Limited for a consideration and enterprise customers. For gov- satellite sector successfully defeated. based on a total enterprise value ernment agencies, mobile satellite Wheeler made clear his unhappi- of approximately €60 million. Held services are an effective solution to ness about this in a March speech to through Skylogic, Eutelsat’s wholly- manage and monitor forest rangers satellite companies and referenced owned subsidiary, Wins is a provider and coast guards, allowing them to WRC-15 in the July 14 hearing before of maritime connectivity services to assist people on the borders and the the decision. “Every effort was made passenger vessels in the Mediter- islands. This is vitally important dur- to stop us” in Geneva, he said. FCC ranean region as well as, through its ing natural disasters, when terrestrial spokesman Charles Meisch said the German subsidiary DH-Intercom, a networks cease to operate. For busi- agency would decline comment on provider of principally L-band con- nesses, VNPT will provide uninterrupt- whether Wheeler had sent out word nectivity and VSAT solutions to mer- ed communications for enterprises that satellite companies should refrain chant vessels. In a consolidating mar- and their crews in the mining, fishery, from criticizing the 5G ruling. The U.S. ket, the transaction will enable WINS transport, construction and tourism Satellite Industry Association, which to benefit from the scale of a leading industries. Individual customers will represents most of the companies global network and satellite commu- also benefit from satellite services, es- that had a stake in the 5G ruling, on nications service provider. The sale of pecially those who are constantly on July 15 issued a statement that three Eutelsat’s stake in Wins is consistent the move or working in areas without SIA members agreed was a strained with its strategy of streamlining its cellular networks. attempt to not say what it wanted asset portfolio in order to maximize to say: “SIA recognizes the FCC’s ef- free-cash-flow generation. fort to address some of the signifi- Satellite sector mulls cant concerns of the satellite industry how to live with FCC’s about the potential for interference Thuraya, VNPT Provide latest decision on tele- to existing and planned systems,” the Mobile Satellite Services association said. “SIA is also encour- com technology aged b the provisions pertaining to in Vietnam Earth stations operating in the 28 GHz The U.S. regulatory decision that de- band…. We… appreciate the commis- Thuraya Telecommunications has nied protected status to satellite sys- sion’s willingness to revisit the issue signed its first service agreement in tems that have been investing in Ka- as needed. “There are many sophis- Vietnam with VNPT VinaPhone mak- band spectrum, and cast doubt about ticated technical issues posed by this the viability for satellite systems rulemaking, and we are eager to fully of other slices radio spectrum, has evaluate the rules that have been ad- been met with a curiously muted opted.” Asked if SIA had been advised response by the satellite sector. The by the FCC not to make critical public same companies that before the statements, the association said July July 14 decision had invested heav- 15 that its president, Tom Stroup, “was ily in high-powered legal talent to never contacted by the FCC or Chair- urge the U.S. Federal Communica- man Wheeler since the sunshine pe- tions Commission (FCC) to reverse riod went into effect and therefore we its course had surprisingly little to were never advised by the FCC about say once the ruling was announced. making negative comments concern- Several industry officials said they ing the ruling.” The number and va- would need time to study the im- riety of current and prospective sat- plications of the complex ruling, ellite operators submitting opinions designed to open spectrum above to the FCC suggest its importance to 24 gigahertz to next-generation, the satellite sector. They include Boe- or 5G, wireless broadband services. ing, EchoStar, Hughes Network Sys-

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SAMENA TRENDS AUGUST 2016 tems, Inmarsat, Intelsat, Iridium, O3b and satellites owned by Hispamar of was ViaSat’s own money. Asked to Networks, OneWeb, SES, SpaceX and Spain; O3b Networks, recently pur- comment on the FCC decision, ViaSat ViaSat. The Europe, Middle East and chased by satellite fleet operator SES said: “Upon initial review, we believe… Africa Operators Association and SIA of Luxembourg; Inmarsat of London; the order provides an approach that also submitted separate opinions. and consumer broadband provider gives satellite operators the ability to Not all focused on 28 GHz. Boeing, Hughes Network Systems of German- operate and expand alongside ter- for example, has filed to U.S. and in- town, Maryland. These authorizations restrial wireless networks. The order ternational regulators a proposal for gave these companies “settled expec- recognizes the need for additional a V-band satellite Internet constella- tations and legal rights” to 28 GHz, study of technical sharing issues and tion and wanted an FCC commitment ViaSat said. “Billions of dollars have we will continue working with the that V-band frequency allocations to been spent and even more has been commission and other stakeholders 5G networks would not interfere with committed to deploy these networks. to address those concerns. “[C]larity a planned satellite system. The FCC Changing the ground rules would af- is still needed about the specifications mainly rejected that argument, say- fect both operating networks and of the 5G technology, time frame and ing that to date there are not V-band those currently under development.” opportunity, and we will have to see satellite networks under construc- SES, which in addition to owning the how that plays out over the coming tion or about to enter construction. O3b Ka-band broadband satellite con- years.” Boeing issued a statement saying it stellation is weighing an investment would reserve comment “until we in a global Ka-band system for aero- have completed a thorough review. In nautical connectivity and other uses, DigitalGlobe and Part- the meantime, our position is that we chose to look on the bright side of ners Launch SpaceNet support a spectrum-sharing scheme the decision. “SES welcomes the pro- and regulatory approach that would tections the FCC has introduced, and Open Data Initiative on enable future satellite-based broad- its willingness to continue reviewing Amazon band services, maximizing consumer the risk of aggregate interference into choices, including in rural and remote 28 GHz satellites,” the company said DigitalGlobe, in collaboration with areas.” Broadband satellite systems in in a statement. “SES recognizes that partners CosmiQ Works, and Nvidia, the United States have already begun the introduction of mobile operations has launched SpaceNet, an online to deploy Earth stations in the 28 GHz into this spectrum presents a unique repository of satellite imagery and band under the assumption that they situation given the existing regulatory labeled training data, available as a would face no mobile interference in framework and uses of these frequen- public data set on Amazon Web Ser- that frequency. The legislative history cies in the United States, and requires vices (AWS). The companies anticipate of the 28 GHz band is a subject of SpaceNet will advance the develop- dispute. Satellite companies say they have relied on priority access to it for years and made substantial invest- ments accordingly. The 5G commu- nity, led by The Wireless Association CTIA, said satellite operators have, in effect, squatted the bandwidth on the assumption that no potentially in- terfering user would lay claim to the same spectrum. The FCC acknowl- edged in its decision the potential for interference between 5G and satel- lite services, but nonetheless said it would authorize 5G mobile, granting satellite uses “secondary” status. “The investments satellite operators have made in Ka-band operations were made with the knowledge of their secondary status,” the FCC said. Carls- bad, California-based Viasat Inc dis- puted this. SES and O3b endorsed Vi- aSat’s argument in a letter to the FCC. ViaSat, which operates Ka-band sat- a tailored approach and on-going co- ment of machine learning and deep ellites for fixed consumer broadband operation among the stakeholders.” learning algorithms that leverage re- and aeronautical mobile services for ViaSat had gone out of its way in the mote sensing data. SpaceNet opens commercial and government custom- months since WRC-15 to avoid a con- access to a large corpus of curated, ers, has perhaps more to lose with the frontation with the FCC. The company high-resolution satellite imagery to commission’s ruling than any other was criticized by other satellite opera- incubate algorithm development. established satellite operator. ViaSat tors for its “one-the-one-hand, on- The product will launch with an initial said the FCC has already approved the-other-hand” public statements contribution of DigitalGlobe multi- seven satellite networks, with 40 gate- about the effects of sharing the spec- spectral satellite imagery and 200,000 way Earth stations, using the 28-GHz trum with 5G mobile. But a large part curated building footprints across the spectrum. These include three ViaSat of the “billions of dollars” that ViaSat city of Rio de Janeiro, Brazil. Accord- satellites, one of which is in service; said had already been spent at 28 GHz ing to the company, this initial contri-

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SAMENA TRENDS AUGUST 2016 bution will provide the necessary data Devon & Somerset, which are covered meaning as many people as possible to create new algorithms to automate by their own regional schemes. Quali- can benefit from greatly improved the extraction of features like build- fying residential properties can now internet speeds over the coming ings in dense urban environments. receive full connection to Satellite In- months and years.” Over time DigitalGlobe, CosmiQ ternet’s services for a vastly reduced Works, Nvidia, and Amazon anticipate cost of £70, including all necessary making more than 60 million labeled equipment, professional installation satellite images accessible to the pub- and account activation. The ISP is lic via SpaceNet. “SpaceNet is key to also including a wireless router free unlocking a huge explosion of new with every order. Business proper- AI-driven applications that ultimately ties will also be eligible for the sub- will help us better respond to natu- stantially reduced set-up costs, after ral disasters, counter global security having an additional chargeable site threats, improve population health survey. Satellite Internet’s Business outcomes, and much more. The in- Development Director David Hennell dustry is coming together to power said: “The decision by BDUK really is smarter algorithms so we can see and a game changer and offers a superb learn things from imagery about our opportunity to broadband-starved planet that we simply cannot know residents and businesses to get con- today through manual techniques,” nected to services that will improve said Tony Frazier, SVP at DigitalGlobe. their day-to-day lives. In covering the whole of the UK, the scheme re- ally does provide the best assistance Satellite Internet Hails to disadvantaged premises. “We are BDUK Better Broadband delighted that within the revised Bet- ter Broadband scheme, subsidies are Access Scheme as a now being passed directly to those who actually deliver the service and “Game Changer” can only applaud BDUK for its proac- Satellite Internet, a specialist satellite tive thinking and common sense ap- Internet Service Provider (ISP), has proach, which delivers the best value welcomed the decision by Broadband for money for the taxpayer’s pound

Delivery UK (BDUK) to revise its con- alongside hugely increased benefits nectivity program - now retitled the for eligible premises,” continued Hen- Better Broadband scheme - meaning nell. “We at Satellite Internet can now that all properties with inadequate deliver qualifying applicants a radical- internet speeds can be set up for con- ly improved offering for a very small nection to its services at a heavily sub- fixed set-up cost, no matter how com- sidized rate. The BDUK Better Broad- plicated the required installation may band subsidy scheme is now available be. As a result, we’re already seeing a to any residential or commercial prop- fast-growing level of both enquiries erty with current broadband speeds and orders under the BDUK revised of less than 2Mbps across the entire scheme. This simplicity and clarity can UK, with the exception of Wales and only be a good thing going forward,

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