Volume 06 _ Issue 10 _ Oct 2015 SAMENA TRENDS EXCLUSIVELY FOR SAMENA TELECOMMUNICATIONS COUNCIL'S MEMBERS BUILDING DIGITAL ECONOMIES

A SAMENA Telecommunications Council Newsletter

Articles

Three factors critical to mobile broadband investment in MENA Page 56

Broadband network investment three actions for regulators... Page 58

TD-LTE is deployed more often in emerging markets than in developed markets Page 67

Exclusive Interview David Murphy Chief Commercial Officer Yahsat Page 04

Growing demand for broadband infrastructure investment and operators’ readiness. What is the way forward?

www.samenacouncil.org SAMENA CONTENTS VOLUME _ 06 _ISSUE _ 10_oct 2015 TRENDS

The SAMENA TRENDS newsletter is wholly REGIONAL & MEMBERS owned and operated by The SAMENA UPDATES Telecommunications Council FZ, LLC 09. Members news (SAMENA Council). Information in the newsletter is not intended as professional services advice, and SAMENA Council 15. Regional news disclaims any liability for use of specific information or results thereof. Articles REGULATORY & POLICY and information contained in this publication are the copyright of SAMENA UPDATES 22. Regulatory news Telecommunications Council, (unless otherwise noted, described or stated) and cannot be reproduced, copied or 28. A snapshot of regulatory activities in printed in any form without the express SAMENA region written permission of the publisher. 35. Regulatory activities beyond the The SAMENA Council does not necessar- SAMENA region ily endorse, support, sanction, encour- age, verify or agree with the content, comments, opinions or statements made in The SAMENA TRENDS by any entity WHOLESALE UPDATES or entities. Information, products and 50. Wholesale news services offered, sold or placed in the newsletter by other than The SAMENA Council belong to the respective entity TECHNOLOGY UPDATES or entities and are not representative 56. Three factors critical to mobile of The SAMENA Council. The SAMENA EDITORIAL broadband investment in MENA Council hereby expressly disclaims any 03. and all warranties, expressed and im- 58. Broadband network investment plied, including but not limited to any three actions for regulators and warranties of accuracy, reliability, mer- policy-makers chantability or fitness for a particular purpose by any entity or entities offer- Technology news ing information, products and services in 60. this newsletter. The user agrees that The REGIONAL SAMENA Council is not responsible, and 67. TD-LTE is deployed more often in shall have no liability to such user, with PERFORMANCE emerging markets than in developed respect to any information, product or markets service offered by any entity or entities 07. Regulatory trends and ICT in this newsletter. The SAMENA Coun- cil’s only liability in the event of errors adoption SATELLITE UPDATES 69. Satellite news shall be the correction or removal of the erroneous information after verification.

Editor-in-Chief Bocar A. BA

Contributing Editors Izhar Ahmad Javaid Akhtar Malik

Contributing Members Analysys Mason Syniverse

Publisher SAMENA Telecommunications Council

Subscriptions [email protected] 04. 77. Advertising [email protected] EXCLUSIVE SAMENA Legal Issues or Concerns [email protected] INTERVIEW ACTIVITY David Murphy SAMENA Council chaired ITU’s 5th Private SAMENA TRENDS Chief Commercial Officer Sector Chief Regulatory Officers (CRO) [email protected] Yahsat meeting Tel: +971.4.364.2700 SAMENA Council chaired panel session in ITU Telecom World

© 2015 - All rights reserved. SAMENA TRENDS is a trademark of SAMENA Telecommunications Council. EDITORIAL

SAMENA TRENDS _ OCT 2015

Growing demand for broadband infrastructure investment and operators’ readiness. What is the way forward?

During the ITU Telecom World 2015, we had a At SAMENA Council, we feel, operators, or any wonderful set of discussions among the three core other stakeholders in our complex ecosystem, stakeholders: policy-makers, regulatory authorities, that truly understand what business knowledge and various members of the private sector. Even they need to attain, what they require to establish more wonderful was the in-principle agreement that digitization-centric networks, and how intuitive we all do, in fact, need to re-define each stakeholder their understanding of customers’ needs and group’s roles within our complex industry. It is such wants should be, are the ones to benefit the realization that sets us afloat toward a smarter way most from the digital and socio-economic trends forward in digital-development pursuits. that await us over the next few years. Arguably, from the regulatory end, this readiness would be The way forward for all stakeholders, fundamentally, dramatically enhanced if the current economic is beaconed by the availability of a quality-driven models underwent transformation; if network true broadband experience. And that requires planning and timely access to accurate information, investment-ranging from investment of time, spent and expedience in favorable decision-making on developing and implementing measureable were achieved; and if commercial innovation digital policies, to private-sector companies were fostered. From the private-sector’s end, if collaborating among themselves on mutually telecom operators accelerated their learning-curve beneficial, yet individually rewarding, innovative progress in understanding customers’ needs and in fronts. The fact that, today, at the near-closure monetizing their network investments, readiness to of 2015, we have less friction among all the achieve both future revenue progress and fulfillment stakeholders than we ever did before, is a healthy of national digital agendas would be maximized. indicator that we all are ready to embrace and want to realize a strong digital future for ourselves; for The future indeed looks very bright with stakeholder our world. This desire particularly drives telecom relationship complexities, implementation operators, which are constantly pursuing the challenges, growth opportunities, and socio- expansion of broadband as well as their own growth economic and environmental responsibilities through it, not only through their demonstrated will abound. to reduce conflict and shorten traditional distances with other stakeholders, but also by calling for and carrying out innovative, collaborative works across the stakeholder space.

Joint ventures, M&A, digital incubation initiatives, and moving into non-traditional spaces to pursue growth opportunities and socio-economically contribute, are among the notable steps that operators are beginning to take, thus clearly signaling their readiness for the future.

Yours truly,

Bocar A. BA Chief Executive Officer SAMENA Telecommunications Council

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David Murphy is the Chief Commercial Officer of Yahsat, the UAE-based satellite communication operator, a wholly owned company of the Mubadala Development Company.

David Murphy Appointed as CCO in 2014, David is responsible for the Company’s Customer Operations, Marketing and Sales management activities. With over 20 years Chief Commercial of experience in commercial leadership roles within the telecommunications Officer industry in Asia, Middle East, The Americas and Europe, David has a proven track record in successfully developing strategic partnerships and customer Yahsat acquisition programs – leading to growth. David is a successful change agent with a history of leading emergent markets entry and improving operational efficiency by creating tangible business results. He has multi-functional experience across M&A , strategy, business Yours truly, development, product management and sales & marketing.

Bocar A. BA David holds a BEng and an MBA from IMD Switzerland. Chief Executive Officer SAMENA Telecommunications Council

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Q. Please tell us about high net worth individuals, Yahsat organization and to young Yahsat’s operations in the remote VIP sites, O&G, NGOs, and students, young aspiring engineers connectivity deprived populations in and science professionals who will region, and core areas disaster zones. become key stakeholders in the of services that Yahsat is future. presently focusing on? Q. How do you view A. Yahsat was established in Yahsat is engaged in activities such 2007 with the aim of offering multi- the notion of integration as sponsoring Abu Dhabi Science purpose satellite services, including of terrestrial and satellite Festival, an eye opener for younger broadcast and broadband services communications? Can it people on the importance of technology and digital sustainability. across the Middle East, Europe, materialize as easily as it is Africa, Central and South West-Asia. Another Yahsat initiative is the Gulf Since inception our organization discussed? region’s first Master’s program has rapidly developed and today is A. Both technologies are focused on space systems and the 8th largest satellite operator in complementary. Our services are technology, to be conducted at terms of revenue and, operates two testimony to this and provide a Masdar Institute of Science and satellites Y1A and Y1B, with a 3rd variety of cost effective and high Technology, supported by Orbital satellite Al Yah 3, set to be delivered quality solutions that expand the ATK one of the world’s leading in Q4 of 2016, with the service launch communication ecosystem. This aerospace manufacturers. This will in early 2017. is a virtuous cycle where satellite help us to find more indigenous and terrestrial benefit from each solutions and generate more ideas Our core services include; YahClick, other, with the common purpose for digital sustainability, as students our flagship satellite broadband of reaching the unserved and will develop the knowledge and internet service for unserved and underserved in the most cost- resources they need to move forward underserved communities; Yahlive, effective way possible. An example with more innovations. a joint venture with SES, designed is the potential development of to deliver free to air, high-quality TV new backhaul technology in which We have also sent 15 of our top services to a diverse and culturally both Yahsat and Sevis Systems are engineers to work with our partner rich audience and, YahService, our collaborating. This could see the Orbital ATK at their facility in Virginia, end-to-end managed solution for integration of Yahsat’s Ka-band USA, where our next satellite Al-Yah customers from both governmental transport layer and Sevis’ optimizers. 3 is being constructed. This is an and commercial sectors. It is designed to provide a cost- exceptional opportunity for national effective wireless backhaul solution talent to gain first-hand experience and other service options such into the manufacturing cycle of a Q. What new as traffic offload and overflow via technologically advanced satellite. broadband service satellite. In addition to furthering attendees’ initiatives have you knowledge in the field of engineering and aerospace development, the launched within the Q. What types of cross- stakeholder, collaborative program will also provide employees SAMENA region, especially with valuable insight into the latest in large markets like initiatives would enable satellite industry trends, paving the Pakistan? the adoption of industry way for further career development. A. As mentioned, our friendly policies and ensure flagship service is YahClick, which a sustainable digital future Q. What are some of we launched in Pakistan in June for you and your peers? the major business areas 2015, and will help the country A. The industry is facing a lot that satellite operators of accelerate its economic growth and of changes including transforming the SAMENA region need social development by improving business models, external access to information, and reducing innovations that encroach on satellite to consider when it comes operational costs for internet access business and stringent regulations. to expansion strategy and in the most remote and currently Yahsat works very closely with global competition? underserved areas of Pakistan. regulatory bodies to shape policies A. Satellite operators in the that create positive value. Yahsat also SAMENA region need to consider The successful deployment of constantly explores partnerships all the challenges involved in YahClick in Pakistan, follows on with industry players and innovators competing in diverse markets. The from the roll-out of our services to drive development of satellite key to a successful performance to 13 countries out of a targeted products/services and constantly will be targeting different sectors, 28-country footprint, seven of which improve our value proposition for such as education, banking, public are in sub-Saharan Africa. To-date sustainability. In addition, we gear services, health and construction. we have 34,000 subscribers and our people to recognize digital shifts Expansion of coverage is also vital: are providing essential connectivity and respond proactively. This is a key Yahsat’s coverage area currently to SMEs, SOHO, healthcare and part of our training and development comprises the Middle East, Africa, education providers, entrepreneurs, ethos and we extend this outside the Europe, Central and South West

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be available and even then, there are potential issues. In order for countries across to sustain economic growth and development, all communities need to be connected and, in order to support countries grow and develop, we believe satellite broadband internet is the way forward whilst governments finalize traditional infrastructure plans. • The delivery of innovative technology. All our satellites utilize cutting edge technology and design and our 3rd satellite Al Yah 3 is a clear example of this. Al Yah 3 will be the first hybrid electric propulsion GEOStar-3- based spacecraft to be launched at the end of 2016. It provides the benefits of higher power and greater payload capability while still maintaining advantageous Asia. However, with the launch of our bandwidth available in Ka-band. launch costs. Once operational, third satellite ‘Al Yah 3’, we will also It is the first satellite service in the Al Yah 3 will enable the delivery be able to expand in Africa as well as region to offer internet connectivity of affordable broadband, entering the Brazilian market. through Ka-band multi-spot beams, directly or indirectly to over with reusable frequencies that 600 million users, specifically Q. How has Yahsat allow for more satellite capacity a covering more than 95% of the lower cost. We have also developed population in Brazil and 60% of historically dealt with an extensive network of highly the population in Africa. competition and the need experienced and well-resourced • Contribution to the economic to create shareholder partners in all of our markets, who development of the UAE. Yahsat value? have the skills and knowledge to is strongly aligned to Abu Dhabi A. As a wholly owned deliver our services with great speed, Economic Vision 2030 and, the subsidiary of Mubadala Development flexibility and efficiency. launch of our third satellite Corporation, Yahsat has a duty to within less than a decade of return value to its shareholder and Q. What major operation is a clear signal of maintain a strong value proposition the UAE aerospace industry’s contributions has Yahsat intentions for the future. for the end customer. It is therefore made to the satellite no different to any other commercial organization seeking to achieve industry at large, fostering Q. How do you view growth in sales and earnings innovation and overall your role in realizing smart and capture market share. This growth? cities with sustainable has involved the conception and A. The satellite industry infrastructure, and your implementation of a strategy based has a substantial amount to offer on a perceived market opportunity. communities, businesses and developmental role in IoT? We see such opportunity through countries around the world. At A. Smart cities of the 21st the fact that there are many Yahsat we see this contribution in century, especially the ones which communities and organisations several ways; have not yet been built, will not be lacking the connectivity they able to function through copper and need to lead better lives and run • The provision of satellite fibre networks alone, but will require themselves more efficiently and broadband services for additional connectivity to enable more securely. There is often little unserved and underserved the delivery of services to citizens. or no communications infrastructure communities across the Our technology and services will be available to them, as they are based region. A lack of infrastructure ideal for such applications, because in remote areas with rugged terrain, remains a barrier to wide- they can be used immediately, they or else have very stringent security spread internet connectivity require little incremental or ongoing requirements. One of Yahsat’s key in many countries. Whilst a investment in infrastructure, they are competitive strengths is that it uses strong network of underwater robust and they offer good value for state of the art technology to provide cables are being built it will money. its services through a new generation take years for connectivity to of satellites that leverage the higher

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SDN & NFV Focused Broadband Infrastructure Investments

Data Source: Approximated for illustrative purposes from Infotech Research’s Global Service Provider Survey 2014

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Data Source: Approximated from Analysys Mason’s data

Research Note

There is no one size fits all solution to broadband deployment in any two given markets. Underlying technology models, business models, funding, policy requirements, among other factors, vary across markets, with each having its own telecom infrastructure needs and digital development pace.

The telecom infrastructure market, primarily driven by broadband expansion, capacity enhancement, and network optimization, continues a transformation as new factors come into play. Software-Defined Networking (SDN) and Network Functions Virtulization (NFV) technologies, in this transformational context, could be mainstream options for providers’ cloud and network architectures post 2015.

Benefits of NFV implementation include faster time to market, creation and enablement of new services, ability to rapidly scale resources up and down, and lower capital expenditure and operational costs.

SDN helps to improve the programmability and operations of network components and also impacts the way operators build and operate their data center and cloud networks, giving them the ability to deploy low-cost blank standard switches that use independent network operating systems.

Close impact of SDN and NFV technologies on broadband networks, especially from network access point of view, is currently being observed by The Broadband Forum, which is encouraging collaboration among industry groups to ensure best practices and solutions.

Increasingly, communications networks of the near future will see hybrid designs of specialized hardware combined with SDN and NFV elements. Both SDN and NFV are expected to be among the most important network related investments for telecom operators moving forward.

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MEMBERS NEWS

Cisco projects cloud traffic workloads. At the same time, consumers continue to expect on-demand, anytime to quadruple by 2019 access to their content and services nearly The fifth annual Cisco Global Cloud everywhere. This creates a tremendous Index (2014-2019), released this week, opportunity for cloud operators, which forecasts that global cloud traffic will will play an increasingly relevant role in more than quadruple by the end of 2019, the communications industry ecosystem.” from 2.1 to 8.6 zettabytes (ZB), outpacing In addition to the rapid growth of cloud the growth of total global data center traffic, Cisco predicts that the Internet traffic, which is forecast to triple during of Everything (IoE)—the connection of the same time frame (from 3.4 to 10.4 people, processes, data and things— ZB). Several factors are driving cloud could have a significant impact on data traffic’s accelerating growth and the center and cloud traffic growth. A broad MEMBERS transition to cloud services, including the range of IoE applications are generating personal cloud demands of an increasing large volumes of data that could reach UPDATES number of mobile devices; the rapid 507.5 ZB per year (42.3 ZB per month) growth in popularity of public cloud by 2019. That’s 49 times greater than the services for business, and the increased projected data center traffic for 2019 (10.4 degree of virtualization in private clouds ZB). Today, only a small portion of this which is increasing the density of those content is stored in data centers, but that workloads. The growth of machine-to- could change as the application demand machine (M2M) connections also has and uses of big data analytics evolves the potential to drive more cloud traffic (i.e., analyzing collected data to make in the future. “The Global Cloud Index tactical and strategic decisions). Today, 73 highlights the fact that cloud is moving percent of data stored on client devices well beyond a regional trend to becoming resides on PCs. By 2019, the majority of a mainstream solution globally, with stored data (51 percent) will move to non- cloud traffic expected to grow more PC devices (e.g., smartphones, tablets, than 30 percent in every worldwide M2M modules, et al.). With the volume region over the next five years,” said of stored data increasing, Cisco predicts Doug Webster, vice president of service a greater demand and use for consumer provider marketing, Cisco. “Enterprise cloud storage. By 2019, 55 percent of and government organizations are the residential Internet population will moving from test cloud environments to use personal cloud storage (up from 42 trusting clouds with their mission-critical percent in 2014).

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Domestic unit drives signed the framework agreement for big data and analytics as one of the this project in China, in the presence most effective tools in understanding 6.4% rise in Turkcell of Sudan’s President and several customer needs and their experiences, Group revenue Sudanese government officials. The in addition to being an effective asset deployment of the new national fiber for the growth of sustainable business Turkcell Group has announced that it network will connect national cities registered record quarterly revenue as well as neighboring countries and EBITDA for the three months Chad, Libya and Central Africa. The ended 30 September 2015, on the new network will also connect the Mobily sent about back of strong results from the firm’s international circuit between the 90 Million awareness domestic unit. The group reported Red Sea and Europe through a new turnover of TRY3.364 billion (US$1.16 international transmission link. “The SMS in collaboration billion) for the third quarter of 2015, National Broadband Network is a with government an increase of 6.4% from TRY3.162 strategic project planned to construct billion in the year-ago period, mainly the broadband infrastructure in vast organizations driven by a 9.9% year-on-year rise areas of the country and is expected Huawei and the African Etihad in revenue from Turkcell Turkey to to enable and provide the needed Etisalat Mobily has sent recently TRY3.074 billion, which was attributed infrastructure for the country’s in collaboration with some of the to surging demand for mobile and E-government,” commented Tarig government organizations in the Saudi fixed broadband services. On the other Hamza Zainelabdin, Sudatel Group Kingdom about 90 million awareness hand, Turkcell International revenues CEO. “According to several studies, this SMS in various regions as part of were impacted by currency devaluation new major network infrastructure will Mobily’s corporate social responsibility in Ukraine and Belarus, and fell 22.9% support the increase in the broadband programs, which contribute to the from TRY305 million in 3Q14 to TRY235 penetration that subsequently will be awareness of Saudi society in several million a year later. Group EBITDA linked to an increase in the country’s aspects. Mobily managed through this was up 10.5% to TRY1.161 billion in GDP,” added Zainelabdin. The new program to activate the concept of a the three months to end-September network infrastructure project will real constructive partnership between 2015, while net income (excluding also support the economic and social the public and private sectors for the non-recurring items) increased 17.8% development of Sudan. GDP growth benefit and interest of the various year-on-year from TRY600 million to is expected to grow as the network segments of local community. The TRY707 million. Reported net income, will cover more areas and more job company’s efforts in this program however, declined by 16.5% to opportunities will be created from along with the efforts and plans of TRY630 million, mainly due to higher the project where the implementation some government agencies aimed to translation losses and lower interest and construction will require massive educate citizens in various fields, such income earned on time deposits with manpower. CITCC, a large state- as directions, health care, legal matters the lower cash balance despite higher owned information integrator and that aim to improve various economic EBITDA. In operational terms, Turkcell’s one of China Telecom arms, will be the and social sectors. Mr. Mohammed fixed broadband unit Superonline main contractor for this project and Albelwe, Executive General Manager reported 1.419 million subscribers at is involved in several infrastructure Corporate Communications and PR 30 September 2015, representing an projects in Sudan. at Mobily said that the integration of increase of 28.9% year-on-year, as fibre roles between the private and public and ADSL customers grew by 24.2% sectors contributes positively to and 36.7%, respectively. Turkcell’s define the needs of our community mobile customer base stood at 34.2 STC launches Big Data and to find innovative solutions to million at the end of 3Q15 (a decrease in collaboration with apply successful social responsibility of 1.4% year-on-year, but up by 0.6% programs. In this respect, Mobily from the previous quarter), including Teradata continues firmly in its constructive 16.1 million post-paid subscribers, The Saudi Telecom Company (STC) partnership with government agencies an increase of 8.8% from 14.8 million launched big data and advanced to serve our homeland and the twelve months earlier. analytics in collaboration with Teradata citizen’s interests. Mobily is working which specializes in data storage and presently on the study of several analytics. STC hopes the project will constructive means that would serve Sudatel to invest US$267 generate creative ideas allowing it to critical social issues in cooperation leverage knowledge gained about with other parties that are interested to million to construct customer experiences, needs, and execute effective social responsibility national broadband observations through a number of programs, in addition to the current communication channels. Teradata has awareness messaging program, which network been working with STC since 2005. The will be completed by the company Sudatel, a leading telecom group company is a renowned global leader on several phases to be distributed operator in Sudan and West Africa, operating big data and advanced over the coming period, depending announces the construction of the analytics, management of data storage upon the needs and interest of the “National broadband Network with an systems to build advanced analysis, community. investment of USD 267 Million to be fraud detection using social media financed by China Export-Import Bank. channels, and measuring customer Sudatel CEO Tarig Hamza Zainelabdin experience indicators. STC views

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Zain Kuwait partners in the Middle East to date, and we will including cloud computing, big take this NFV project as a successful data, the IoT, mobile broadband, with Huawei to build case study in considering an expansion SDN and BYOD, commented Huawei virtual network strategy to other Zain operating companies.” In president of products and solutions terms of technical deployments, the Ryan Ding. “Huawei has focused Zain Kuwait—Kuwait’s largest mobile latest contract will see Zain Kuwait on ICT infrastructure, opened up its operator—has signed a business leverage a full suite of Huawei NFV innovative and leading ICT solutions contract together with Huawei—a solutions including cloud data centers, to developers, and built an open leading global ICT solutions provider— virtualized evolved packet cores environment and enablement platform to use the power of virtualized (vEPC), a virtualized IMS core network, for the carrier and enterprise markets,” network technologies to deliver more SDM hardware and software, and he said. During the event Huawei dynamic, flexible, and efficient mobile test bed hardware for the network. shared details of previous success In addition, Zain Kuwait has agreed stories with developer partners, such to a three-year Managed Services as those designing open cloud services contract with Huawei which will see based on the company’s Enterprise Huawei experts assist Zain directly Cloud. The company also signed co- in setting up and managing the new operation agreements with partners solutions on top of NFV architecture. such as Microsoft and Richfit. The agreement is part of Zain’s overall ICT transformation strategy over the next decade. This includes plans to evolve its current IT infrastructure to Cisco network cloud data center and develop more infrastructure to power digital services. Zain already utilizes a number of Huawei solutions and the UAE government’s services to its customers over the next services to meet these ambitions, smart cloud three years. The agreement will focus both on the IT level and in terms of Cisco has announced that it is deploying on the application of a cutting-edge telecommunications networks. Earlier a Cisco Network infrastructure to trend in telecommunications known as this year the two companies unveiled power the Telecommunications Network Function Virtualization (NFV). plans for a new strategic cooperation Regulatory Authority ‘s (TRA) Electronic It is a concept that is still fairly new to that will trial and implement high- Federal Network (FedNet), which will the Middle East—Zain Kuwait is the first speed 4.5G services on Zain Kuwait’s host the UAE Government’s Smart regional operator to practice NFV on network over the next three years. Zain Cloud and will connect all Federal a live network—and which combines has also established a Joint Innovation Government entities in the UAE. This traditional telecommunications Center with Huawei in Kuwait to serve project was awarded to Cisco through hardware with contemporary cloud- as a research hub for the advancement two services providers. FedNet is a based and software-driven IT of future mobile broadband services secured government platform that solutions. The result is a network which and applications. can use virtual processes to streamline will offer secured connectivity and operations, utilize resources more shared services to more than 42 effectively, and which can be scaled federal government entities in the quickly to meet with customers’ rising Huawei commits $1 UAE. It will be an integral component service demands. “The concept of of the wider UAE Mobile Government Network Function Virtualization is billion to Development Initiative, which seeks to create the expected to change the ecosystem Enabler Plan necessary national infrastructure to enable the provision of all government of modern telecommunications,” says Huawei will make up to $1 billion services via mobile platforms. The Omar Al Omar, CEO of Zain Kuwait. available to support developers FedNet platform is rightly set to offer “We are excited to work closely with under its new Development Enabler them the agility and the speed that Huawei on our virtualization strategy Plan, which is focused on building an private enterprises enjoy from the and to bring it live onto our networks open ICT developer ecosystem. At public clouds, without compromising as soon as possible. In particular, the vendor’s first Huawei Developers the Federal Government’s security Huawei’s breadth of solutions and Congress (HDC), the company policies. Cisco will also build a managed services can really help announced it will make the investment Network Operations Center and a us to advance our overall network to implement its new plan over the Cloud Command Center to operate evolution strategy.” “One of the great next five years. As part of the process, the FedNet infrastructure. Once features of this project is that the Huawei plans to build a developer implemented, FedNet will provide NFV approach can provide operators enabler platform and forge business secured communication services with more flexibility in opening up partnerships with its developers. The such as Government-to-Government their network’s capabilities—enabling platform will be called eSDK, and (G2G), secured internet, e-mail, voice them to pioneer new services faster will be designed to help developers and video services. FedNet will be the and more efficiently to the end user,” accelerate technological information. very first cloud platform to offer IaaS said Mohamad Sharara, Head of Zain It will be based around the LEADS (Infrastructure as a Service) to Federal Key Account at Huawei. “Zain Kuwait concept - Lab-as-a-Service, end- Government entities. has long been at the forefront of to-end, agile, dedicated and social. mobile service development. This is Developers contribute to Huawei’s a testament to that vision. It pushes ecosystem in technology areas the boundaries of what we have seen

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Saudi Telecom service enablement and training. The new architecture also enables “Transforming our network to deliver disaggregation of the software stack, deploys high-capacity comprehensive and reliable services enabling providers to add their own international mesh demonstrates STC’s dedication to its services, the company said. customers. Being a customer-centric network operator, STC offers innovative and Saudi Telecom Company (STC) is high-quality services over its leading Ooredoo Qatar tests deploying a resilient, next-generation state-of-the-art network infrastructure. 590Mbps LTE-A network (NGN) based on Ciena’s STC ICT regional leadership is converged packet-optical platforms, emphasized by the deployment of Ooredoo Qatar, Nokia Networks and as well as GeoMesh networking NGN solutions like Ciena’s packet- Netgear have announced a 590Mbps technology. This network solution optical and GeoMesh solutions. These speed test using LTE-Advanced (LTE-A) maximizes the potential of STC’s give STC the scalability and speed Category 11 technology on Ooredoo’s existing global submarine and of services deployment, in tandem network, which the partners claimed terrestrial investments by enabling with lowering operating costs and as a record for the Gulf Cooperation flexible, high-capacity wholesale and supporting STC’s fierce evolution Council (GCC) region. The speed was enterprise Carrier Ethernet and OTN toward NGN capabilities.” - Dr. achieved by aggregating 60MHz of for Internet connectivity, datacenter Homoud Al Kussayer, Vice President spectrum across three bands and interconnect and high-bandwidth for Wholesale at STC “This deployment applying 256QAM higher order cloud services. STC, based in the further cements our leading position in modulation. Ooredoo recently signed Kingdom of Saudi Arabia (KSA), is the submarine market. STC’s strategic an agreement with Netgear to launch the incumbent and the largest network approach coupled with Ciena’s a new range of LTE and LTE-A smart telecommunications services provider industry-leading solutions ensures devices in Qatar, and the 590Mbps in the Middle East and North Africa that it has the capacity, agility and result was achieved on the Netgear Region. Its international presence reliability needed to support current Aircard AC810S mobile hotspot, which spreads across nine countries and and future web-scale demands.” supports tri-band carrier aggregation includes an international data network (in Cat 11 mode enabling speeds of that extends to Europe and Asia. up to 600Mbps). Plans are in place Packet-Optical platform, equipped Ciena offers ‘self- for Ooredoo to launch the device with the WaveLogic 3 Extreme chipset service’ programmability commercially in 2016. Coinciding with and 15 Terabit (Tb/s) hybrid packet the speed test, Ooredoo announced OTN switching, together with the with new Blue Planet the commercial launch of the LTE-A 6500 help increase the capacity, agility Cat 6 Netgear AirCard 790S Mobile and reach of STC’s network, ensuring architecture Hotspot, which uses 802.11ac Wi- operational simplicity and scalability Ciena has unveiled enhancements to Fi and carrier aggregation (CA) while supporting the evolution toward its Blue Planet network orchestration technology to deliver download software defined networking (SDN). software to help operators expand and speeds of up to 300Mbps. Ooredoo E-Suite packet switch modules on accelerate the delivery of new services Qatar has more than 1,030 4G LTE both the 6500 and 5430 allow STC to across both virtual and physical base station sites, and continues to maximize the number of high speed domains. The enhancements enable add more every month. In addition, Ethernet services carried on the service providers to accelerate their it has completed the upgrade of 544 network. Ciena’s GeoMesh submarine transformation from closed and siloed outdoor sites to LTE-A (‘4G+’) and solution ensures survivability even network architectures to more open, upgraded 182 indoor sites to 4G and in the case of multiple network on-demand software-driven networks. four indoor sites to 4G+, including outages or submarine fiber cuts, with Ciena said its Blue Planet software helps malls, business centers, residential restoration within 50 milliseconds. service providers automate services to towers and hotels. As a result, STC can offer applicably reduce operational costs, eliminates vehement service level agreements network complexity and drives greater (SLAs) tailored to its wholesale and competitive advantage through a STC sees the need for enterprise customer requirements. level of service programmability open platforms to reduce GeoMesh also allows STC customers previously unachievable. Blue Planet to take advantage of faster speeds, software advances Ciena’s OP network barriers to innovation reduced latency and scalability architecture approach and delivers a The CEO of Saudi Telecom Company for seamless global connectivity number of critical benefits to service (STC) urged the region’s mobile industry solutions. Additionally, Ciena’s providers including new container- to focus on three key areas, warning OneControl Unified Management based, micro-services architecture that failure to do so may jeopardize System, OneConnect Intelligent allows rapid customization and the ability to benefit from booming Control Plane and OnePlanner Unified accelerated development of new demand for mobile data. Setting the Design System – all part of Ciena’s applications, including those from scene, Khaled Biyari asked whether OPn network architecture – give STC third-parties and based on open- the region’s 72 per cent annual mobile exceptional control over the entire source. Blue Planet is also said to traffic growth can be sustainable. “We network and enable service activation loosely couple software functions used to talk about terabytes, now in a matter of seconds. As a member within these containers to create we’ve changed the units to exabytes. of Ciena’s BizConnect program, STC and enable SDN management and We forecast 1.5 exabytes per month also benefits from marketing support, control, NFV orchestration, and in MEA by 2020. But revenue from multi-domain service orchestration. data is just 20 per cent, and it’s taking

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SAMENA TRENDS _ OCT 2015 SAMENA TRENDS _ OCT 2015 up 60 per cent of capex.” To support technology services company that Aziz Taryam, CEO Advisor and General what he calls the “digital revolution”, serves almost 70 million customers in Manager - Northern Emirates, Etisalat Biyari repeated the familiar call for 9 countries.” CEO of SAMENA Council, , at the telco?s stands on the sidelines more spectrum, suggesting that 600- Bocar BA said that “Turkcell is amongst of GITEX Technology Week 2015.The 800MHz of additional spectrum is the most ambitious and futuristic MoU will enable Ajman DED to achieve needed globally by 2020. And he telecom companies, with a visionary a sustainable economic development wants to see the introduction of “fair leadership. This decision to join by leveraging Etisalat’s best-in-class usage requirements,” controlled by SAMENA Council, which is the region’s telecommunications and technology the operators. “We need to be fair to premier industry representative body services and a wide range of everybody. Operators are the first to for telecom operators and service professional and smart services. Under worry about their customers, so the providers, demonstrates that operators the agreement, Etisalat will employ regulator is not correct to move to a that can presently see through into dedicated professional teams to build customer advocacy situation… The and beyond the fifth-generation of the necessary infrastructure for Ajman way we are able to price our products our technological evolution, clearly DED to develop IT solutions and fairly is so important to the future of understand the new roles that need to support the department’s conversion our industry.” Thirdly, the STC boss be assumed in the evolving business to a “smart” economic department. said it is necessary to encourage landscape. With Turkcell’s active open platforms to reduce barriers to participation within the SAMENA innovation. “This is fundamental. GSM Council’s community, we hope to Cisco supplying SDN as a technology was successful because achieve new milestones in telecom it is an open standard.” All this, claimed operator representation, regionally, and NFV to Softbank Biyari, will ensure operators are well and contribute to the growth of Softbank, which owns controlling positioned to inject capital into their private sector, worldwide.” “We warmly interest in Sprint, said this week it networks. “The economic model will welcome Turkcell and its CEO Kaan will use Cisco’s SDN and Network collapse if operators are not able to Terzioğlu in our community of leaders Functions Virtualization (NFV) invest,” he warned and thinkers”, Bocar expressed. technologies in its cloud VPN service. Through this membership, Turkcell will The operator will deploy Cisco’s be able to leverage SAMENA Council’s Network Services Orchestrator, regional and international reach as well based on technology from the Tail-f TURKCELL joins SAMENA as advocacy support, expressing its acquisition, to provision and service Telecommunications corporate vision, addressing industry chain physical and virtual network needs and contributing to the debate elements. Softbank will also use Cisco’s Council as Member on business transformation challenges new Virtual Topology System (VTS) Turkcell, an integrated that demand closer communication for automating VXLAN provisioning telecommunications and technology among the operators of the SAMENA through BGP-EVPN. Cisco says this services provider based in Turkey, has region. enhanced architecture will reduce joined the SAMENA Council. Turkcell service provisioning time from weeks ranks amongst the region’s most to minutes, and enable more flexibility advanced service providers with a in upgrading virtual network functions. global vision. “Today’s information Etisalat to enhance Software-controlled service chains society requires a different model government operational steer traffic through the appropriate of development – a model that Layer 4-7 security functions based on focuses on innovation, solves efficiencies flow, customer profile, service type problems with locally-generated Etisalat has signed a Memorandum or other characteristics. VTS will be ideas, and encourages regional of Understanding, MoU, with the used to “stitch dynamic service chains collaborations. At Turkcell, we place Ajman Department of Economic within the data center,” Cisco said. great emphasis on understanding Development, Ajman DED, to enhance SoftBank’s White Cloud SmartVPN this new, innovative landscape and the government entity’s operational uses physical and virtual elements creating locally, regionally and globally efficiencies through implementation from multiple vendors. It provides relevant solutions using cutting- of advanced telecommunications a self-service online portal to assist edge technology. With our network and ICT services. The agreement customers in selecting security policies investments, 5G R&D partnerships, was signed by Essa Al Nauimi, and network services to support and focus on connected homes and business requirements. Separately, smart cities, we are among the players Cisco opened an Innovation Center that define technologies of the future”, in Berlin this week to showcase digital said Kaan Terzioğlu, CEO of Turkcell. development, particularly on its “SAMENA Council brings together Internet of Everything offerings. The some of the most important players focus at the new openBerlin Innovation in our sector, providing a platform Center is on manufacturing, logistics for successful exchange of ideas and transportation verticals. Cisco and know-how as well as promoting intends to invest close to $30 million efficient dialogue between regulators in the new site over the coming years. and operators. We are happy to join It is the ninth Innovation Center the this distinguished group, and we look company’s established worldwide. forward to sharing our experience as General Manager, Ajman Economic an integrated communication and Development Department , and Abdul

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Qualcomm to sell Vuforia Etisalat tests virtual CPE the Middle East. DE-CIX Istanbul will locate the first presence of its AR business for $65M with NEC/Netcracker new platform in the MedNautilus Qualcomm is to offload its Vuforia NEC and NetCracker Technology building, a multi-tenant and carrier- augmented reality unit, against the announced that Etisalat UAE has neutral facility. The building houses backdrop of a corporate realignment completed a series of comprehensive colocation operators across several which will see it focusing on its virtual customer-premises equipment floors, including MedNautilus (part licensing and processor activities. (vCPE) trials. The vCPE solution of the Telecom Italia Sparkle group), Qualcomm Connected Experiences is was provided through NEC’s and Turkcell/Superonline and Verizon. All offloading the business to IoT platform NetCracker’s joint business brand, of the other data center floors will be company PTC for $65 million, with NEC/NetCracker SDN/NFV Solutions, DE-CIX-enabled. The building is also the new buyer pledging to continue and demonstrated new ways to served with capacity from all of the investment and support for the optimize customer experience through major national Turkish and a large platform and its developer ecosystem. an innovative self-service portal. number of international carriers. This According to PTC, Vuforia “enables The companies said the proof of includes being a landing station for the apps to see and connect the physical concept validated the NEC/NetCracker MedNautilus subsea cable backbone, world with digital experiences that vCPE solution’s ability to move which serves the Mediterranean basin. demand attention, drive engagement, highly complex IP and connectivity Because of this strong connectivity and deliver value”. It has a developer functionality from end-user gateways into the MedNautilus facility, ecosystem in 130 countries, powering to Etisalat’s data center, which will customers will have an abundant more than 20,000 apps with more reduce complexity for residential and diverse community of carriers than 200 million installs worldwide. customers and provide them with to choose from starting Day One of “Because of what IoT is enabling, more control over services. Etisalat’s operations. Furthermore, the DE-CIX more and more products are now a deployment of the vCPE solution will service will be available in more than mixture of digital and part physical enable it to experience a number fifteen additional facilities across the content. So, naturally, the ways in of critical advantages, including the city of Istanbul. Network operators which we interact with these products ability to provide next-generation can also take advantage of the DE- will evolve toward a mixed-reality connectivity without deploying highly CIX Istanbul service in three other model that blends physical and digital complicated equipment at customer cities across Turkey, including Ankara, interactions,” Jim Heppelmann, CEO locations, resulting in reduced costs Bursa and Izmir. In addition, DE-CIX of PTC, said. Qualcomm announced and fewer truck rolls. NEC and International acquired the Istanbul a strategic realignment that will see NetCracker demonstrated several Internet Exchange (IST-IX), founded by “fundamental changes” in July 2015, highly sophisticated use cases for Terremark. IST-IX will be transferred to indicating that this will lead to the Etisalat, including the ability to let DE-CIX and upgraded to the DE-CIX curbing of investments beyond its customers personalize device- and Apollon platform, DE-CIX’s 100GE- core silicon and licensing activities. subscriber-specific usage controls enabled exchange backed by best-in- The company has previously made through an easy-to-use self-service class Service Level Agreements. “DE- numerous forays into adjacent areas – portal. NEC and NetCracker also CIX Istanbul will become a network such as its MediaFlo mobile broadcast showed how customers can extend ‘center of gravity’ in a part of the world activities, Mirasol display business and their LAN to enable cloud-based L2 that is so important to the Internet,” wearables among many others, as it services and content, as well as the states Harald A. Summa, DE-CIX CEO. looked to drive innovation. But these vCPE solution’s ability to deploy virtual “We are combining a strong multi- activities are essentially costly bets on firewalls. carrier data center environment with where the market may be going, which DE-CIX Apollon and our experience have often failed to pay off. “Qualcomm in building out successful Internet always looks to push the boundaries exchanges. We intend to create a of what is possible with computer DE-CIX launches service peering ecosystem that consists vision. By leveraging the company’s in Istanbul and acquires initially of both national and regional mobile technology leadership, Vuforia players that will evolve into an has become the platform of choice IST-IX attractive world-class interconnection for developers of augmented reality DE-CIX today launches its new Internet environment for the entire region.” applications,” Derek Aberle, president exchange in Istanbul, Turkey. DE-CIX of Qualcomm said. While it is not clear Istanbul will be operated by DE-CIX how much cash has been pumped into Istanbul Network Connections LLC, Vuforia, PTC said the business’ annual which is a wholly owned subsidiary revenue is “currently not material” of DE-CIX International AG. The to its financials. The transaction is new Istanbul exchange will deliver expected to close by the end of 2015, carrier and data center-neutral subject to closing conditions. Internet exchange services in Turkey, the Caucasus region, Persia and

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REGIONAL NEWS

Saudi Arabia Arab World’s developed. For the fifth year in a row, Saudi Arabia maintains its first rank most competitive cellular in the Cellular markets’ competition market levels in the Arab world. Saudi Arabia score benefited from four operational The Arab Advisors Group released and licensed MNOs in addition to two the results of its Cellular Competition operational MVNOs. Saudi Arabia scored Intensity Index 2015 in September 2015. fully for the availability of smartphone Saudi Arabia maintained its rank as the plans, corporate offers, 3G/4G LTE and Arab World’s most competitive cellular International Long Distance competition. market for the fifth consecutive year. By August 2015, the top four competitive Arab cellular markets; Saudi Arabia, REGIONAL Jordan, Palestine and Iraq maintained Oman homes to be their 2014’s ranks in the Cellular linked to high speed fibre UPDATES Competition Intensity Index; Saudi Arabia scored 85.08%, followed by Jordan with broadband 75.92%, Palestine came next with 75.19% An estimated 225,000 homes in the followed by Iraq with 69.76%, Bahrain capital region of Oman will be connected with 65.33%, and Egypt with 64.48%. to a new fiber-based broadband Tunisia maintained its 2014’s seventh network under a deal reached by rank with 62.45%. Kuwait came next with Oman Broadband Company (OBC) 61.43%, followed by a drop in the rank with Singapore’s ViewQwest. A well- for Morocco, Oman and Algeria with known fiber broadband service provider, 61.52%, 61.21% and 60.23% respectively. ViewQwest is providing its local knowhow Yemen obtained its twelfth rank with to state-owned OBC which plans to a score of 57.97%, followed by Sudan roll out fiber links to some 90 per cent (57.39%), Mauritania (56.31%), United of homes in Muscat and 35 per cent of Arab Emirates (51.32%), Qatar (50.80%), other governorates. This equates to and Lebanon (41.83%). Libya stepped up some 225,000 homes in Muscat, which is with a score of 35.20% followed by Syria expected to start trialing Internet surfing with 34.99%. The Cellular Competition at speeds of up to 1Gbps -- or 100 times Intensity Index is relative in nature as faster than current technologies on the it compares the state of every market 45th anniversary of Oman’s National Day. relative to other markets. As such, even if Commercial launch is slated sometime a market’s absolute level of competition next year. “We are inspired by Singapore’s improved, its score in this relative index strategic approach to the implementation will also depend on how other markets and we hope to emulate that success

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SAMENA TRENDS _ OCT 2015 SAMENA TRENDS _ OCT 2015

in Oman as we connect homes and of fellowships and has taken note of UAE aims to be first with offices nationwide,” said Ghaith Al the decision of the Government of Darmaki, program director of Oman’s Rwanda to put US$1 million available nationwide 5G in 2020 sole fiber broadband service provider, to the permanent secretariat of Smart The United Arab Emirates (UAE) is Awasr. Africa, based in Kigali. Regarding the throwing its hat into the 5G ring, scholarships, the Council welcomed claiming that it will be the first the pledges of South Sudan, Burkina country to deploy the future wireless Faso, Rwanda, Gabon and the ITU. technology nationwide. “We are ready Zain Kuwait to offer The choice of Dr. Hamadoun Toure, to take the big leap into the future M2M services over secretary-general of the international of the telecom industry with the UAE Telecom organization until 2014, becoming the world’s first nation Vodafone platform expresses the desire of the board to roll out the 5G network,” Ahmad Zain Kuwait has launched machine- of directors of Smart Africa to give Julfar, CEO of Etisalat , said this week to-machine (M2M) services for a new dimension to its activities. at a GSM Association (GSMA) event in corporate customers over Vodafone’s Satellite systems Engineer, non- Dubai. The nationwide deployment of M2M platform, following the executive director of the board of the 5G network will be hung around expansion of the two company’s directors of Inmarsat since March the Expo 2020 event in Dubai, which existing Partner Market Agreement, 2015, Dr. Toure is currently one of the starts in October 2020. Etisalat has a Zawya reports. The launch of M2M most influential Africans in the field of 5G development deal in place with services for enterprises looking to telecommunications. His three-year Ericsson AB. The 5G specification implement Internet of Things (IoT) term as executive director of Smart hasn’t yet been set in stone, but the is in line with Zain’s strategic vision Africa takes effect from January 2016. end result is expected to be a wireless to enrich the bundle of solutions it system that’s tens of times faster offers to corporate customers. than current 4G networks, offering gigabit-per-second download speeds Two-day blackout costs over the air. For the consumer, this Former ITU secretary- cellcos around USD10m would mean that an HD movie could Pakistan’s cellcos are estimated be downloaded to a compatible 5G general to lead Smart to have incurred losses of around smartphone. All of this is at least a Africa PKR1 billion (USD9.56 million) in few years in the future, but that isn’t lost revenue after services were stopping Asian and other operators The former secretary-general of the temporarily disabled for two days, from racing to be the first with some International Telecommunication ProPakistani writes. Mobile voice and kind of 5G deployment. NTT DoCoMo Union (ITU), Dr. Hamadoun Toure, internet services were disabled for Inc. is plotting a 5G deployment for has been appointed director general reasons of national security during the Summer Olympics in Tokyo in of Smart Africa. This is one of the an Islamic festival, the celebrations July 2020. SK Telecom in South Korea major decisions taken in parallel of of which have been the focus of is also eyeing a 2020 timeframe for the conference Transform Africa 2015 sectarian violence and terrorist initial deployments. Recently, Verizon held in Kigali from 19 to October 21, attacks in the past. 68 districts were Wireless has become very aggressive 2015 with the participation of 2,500 affected by the blackout, impacting on its 5G timeline. The US operator delegates from 80 countries. Chaired tens of millions of mobile subscribers, is plotting 5G field trials in 2016, and by President Paul Kagame, the board with cellcos estimating their losses there have even suggestions of initial of directors of Smart Africa includes to be around PKR1 billion, whilst deployments in 2017, which could the presidents of Burkina Faso, the government lost out on around happen before 5G proofs-of-concept Gabon, the Mali, Kenya, Uganda, PKR300 million in potential tax income are completed. Not all US carriers the Ivory Coast, South Sudan and from calls and messaging. According are so bullish though: Sprint Corp. Chad. To this group is to be added to TeleGeography’s GlobalComms suggested that 5G will arrive after 2020 the African Union Commission Database, controversial cellular in the US in a recent presentation. and the general secretariat of the blackouts were used heavily in 2012- ITU. The Council, which was held 13, with one cellco claiming in March on the sidelines of the conference 2013 that it had been ordered to UAE gets fixed network Transform Africa 201, has decided switch off its network no fewer than to activate the fund for the financing sharing; Du expands 24 times. The rules for ordering the closures M2M with Vodafone were subsequently The Telecommunications Regulatory tightened, however, Authority (TRA) of the United Arab and the measure is now Emirates (UAE) has announced that employed only once or fixed network sharing is now active twice each year, typically across the country, allowing Etisalat on days deemed most and Du to share infrastructure and susceptible to terrorist market their services in new locations attacks due to their previously only served by their rival. religious or cultural Du has confirmed that UAE residents significance looking to switch provider could be up and running on its network within

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SAMENA TRENDS _ OCT 2015 SAMENA TRENDS _ OCT 2015 seven days. The launch comes after to-market and offering its customers Fi and carrier aggregation (CA) some six years of negotiations a world-class IPTV experience. The technology to deliver download between the regulator and the partnership agreement provides an speeds of up to 300Mbps. Ooredoo two telcos. ‘It’s an excellent step opportunity for du to expand the Qatar adds in its press release that that we are giving the customer regional reach of its IPTV platform. it now has more than 1,030 4G LTE the opportunity to choose,’ The “We strive to further enhance our base station sites, and continues to National quoted Majed Al Mesmar, leadership of digitalization in the add more every month. In addition, deputy director general of the Sultanate through different aspects. it has completed the upgrade of 544 TRA, as saying. ‘The quality of We are pleased to enter into this outdoor sites to LTE-A (‘4G+’) and service being offered will definitely partnership agreement with du which upgraded 182 indoor sites to 4G and change. Those who ignore it will will enable us to offer our customers four indoor sites to 4G+, including lose customers now that the other state-of-the-art IPTV service,” said malls, business centers, residential operator has the same chance.’ Talal Said Marhoon Al Mamari, chief towers and hotels. The network sharing agreement executive officer of Omantel. “As the does not yet, however, cover owner of Oman’s largest IP network, pay-TV services, meaning those we believe IPTV provides a unique customers on multi-play packages opportunity to offer our customers Du and Nokia demo which include TV are unlikely to be unmatched broadcast quality for on- 10Gbps 5G switching their voice and internet demand entertainment services,” he The United Arab Emirates (UAE) telco provider as this would see them added. “Our partnership with Omantel Du has signed a memorandum of losing their bundled discount. marks a significant step for us as we understanding (MoU) with Nokia It is expected that the deal will continue in our steadfast growth Networks for the development of 5G be expanded to include pay-TV throughout the region. We are now a technology, while the two firms have services by end-2016. Separately, regional ICT player, having diversified also given what the say was the first Du has announced an expansion from pure telecommunications, and live demonstration of 10Gbps 5G to its partnership with UK-based we are expanding our offerings for services in the Middle East. A Nokia Vodafone Group which covers regional incumbents,” said Osman press release says the 5G technology machine-to-machine (M2M) Sultan, chief executive officer of du. will support a range of ‘smart city services for UAE businesses. This new partnership is demonstrative use cases’, from IT to automotive, The telco says the partnership of the collaboration potential between manufacturing, healthcare, agriculture enables it to offer enhanced M2M regional operators that can reduce and entertainment. The vendor said services to enterprises looking to costs, and create a new order where its 5G demo system used very high implement Internet of Things (IoT) operators do not have to build bandwidth smart antennas and next services by pairing its local market infrastructure from scratch, but generation multi-carrier modulation knowledge with Vodafone’s M2M can rely on partners to launch new to achieve ultra-low latency and platform and expertise. Du says it services and sharing best practices peak data rates of 10Gbps. It added will initially focus on connected car and offerings. that the 5G radio proof-of-concept opportunities such as enhanced was developed in cooperation with safety, connecting drivers with National Instruments (NI). garages and emergency services, and in-car infotainment. mHealth Ooredoo Qatar tests applications for M2M will also 590Mbps LTE-A be explored to improve remote Ooredoo Qatar, Nokia Networks and Saudi public and private care for patients and bring Netgear have announced a 590Mbps greater efficiencies for healthcare sectors to receive speed test using LTE-Advanced (LTE-A) providers. Category 11 technology on Ooredoo’s innovative e-services network, which the partners claimed ELM, a leading provider of innovative as a record for the Gulf Cooperation electronic solutions and government Omantel and du Council (GCC) region. The speed was support services, has launched four achieved by aggregating 60MHz of innovative e-services during the 35th partner up for IP spectrum across three bands and edition of GITEX Technology Week. The television service applying 256QAM higher order new services address the public and modulation. Ooredoo recently signed private sectors’ needs for advanced Oman Telecommunications an agreement with Netgear to launch electronic solutions that save time Company (Omantel), the largest a new range of LTE and LTE-A smart and effort in completing official telecom operator in the Sultanate devices in Qatar, and the 590Mbps procedures while adhering to the and the pioneering leader in result was achieved on the Netgear highest standards of quality, accuracy, the digitalization, has signed a Aircard AC810S mobile hotspot, which reliability and transparency. Among partnership agreement with the supports tri-band carrier aggregation ELM services launched at GITEX 2015 UAE’s du, to provide its IPTV (in Cat 11 mode enabling speeds of is ‘Tasreeh’ which is of particular (Internet Protocol television) up to 600Mbps). Plans are in place importance as an integrated e-service service platform in the Sultanate. for Ooredoo to launch the device designed to meet the requirements Through this regional first tie-up commercially in 2016. Coinciding with of eligibility management. It enables between the operators, Omantel the speed test, Ooredoo announced customers of government agencies will be able to launch IPTV service the commercial launch of the LTE-A and private companies to issue entry in its local market using du’s IPTV Cat 6 Netgear AirCard 790S Mobile permits as per regulations and policies platform, thereby reducing its time- Hotspot, which uses 802.11ac Wi- through an advanced web portal. ‘Data

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Management’ Service, on the within the Saudi market, particularly companies, a press release says. other hand, primarily focuses on in terms of IT services which have ensuring high quality data in line generated sales of 6.1 billion SR with the digital transformation. It over the current year. Our previous converts paper data into digital successes have driven us to continue Ooredoo, Nokia sign data and generates periodic innovating and developing highly five-year mobile reports that help in building the advanced e-services.” said Majid strategy more accurately and Alarifi. Majid Alarifi, extended the broadband framework rapidly, and analyzes performance invitation for those interested in the agreement measurements. As for ‘Human technology to visit ELM pavilion. He Qatar’s Ooredoo Group and Nokia Resources,’ the Cloud integrated added that ELM’s presence at the 35th Networks have signed a five-year modern techniques service that edition of Gitex 2015 complements framework agreement to support was created by ELM, it allows for the success of last year’s participation, Ooredoo’s long-term development better management of human which enjoyed remarkable interest strategy across its footprint in the resource-focused aspect of from pioneers, decision-makers, Middle East, North Africa and Southeast operation like salaries. Meanwhile, senior government officials and Asia. Under the contract, Nokia will ‘Muqeem’ service was developed private sector companies. provide advanced mobile broadband for the management of residents technologies and professional services and the Wage protection system for Ooredoo Group’s 2G, 3G, 4G and which required by ministry of LTE-A networks. In the renewed labors, which can be accessed Saudi mobile subsidiary agreement, the terms and conditions via a single gateway from achieves milestone have been revised to include global any point online. The service Virgin Mobile Saudi Consortium, the best practices in terms of delivery and clearly shows the exact costs of Saudi Arabian subsidiary company of technology for the benefit of both development & maintenance Virgin Mobile Middle East & Africa, is companies, a press release says. avoiding any extra hidden costs now serving over a million customers to provide the customer with in Saudi Arabia. The milestone has the highest accuracy in terms of been achieved in less than one year budget management and data since the commercial launch of the GCC’s Mobile Connected protection of security concerns Mobile Virtual Network Operator and technical issues. Majid Alarifi, Devices Market Suffers (MVNO), making it the mobile Marketing Manager at ELM, noted telecommunications company with Heaviest Decline on that the reveal of the upgraded the fastest growth rates across the GCC version of “Estihkak” service Record in 2014 and 2015. Karim Benkirane, offers additional benefits, such as Chief Executive Officer Virgin Mobile Saudi Telecom Company The GCC’s access to basic data, management Saudi Arabia, said: “At Virgin Mobile mobile connected devices market and modification of the terms we are working hard to be right at the suffered its worst ever quarter on of maturity, and connection front of the customer revolution that decline in Q2 2015, according to newly with multiple sources. It has a is sweeping our industry, and make released research from International robust technical infrastructure mobile better. Virgin Mobile is the Data Corporation (IDC). The global for data processing, efficiently next generation mobile service that is consulting services firm’s latest data facilitates the application process, being built by today’s talented young shows that the market suffered an and possesses flexible engine Saudi Arabians, so we are on a great 8% decline in shipments during the simulation maturities. The KSA’s path.” quarter to total just over 8 million several social services platforms units. The GCC mobile connected are successfully using Estihkak. devices market comprises shipments ‘Estihkak’ has been providing of smartphones, tablets, and portable more than 3 million electronic Ooredoo, Nokia sign PCs to Saudi Arabia, the UAE, Bahrain, transactions per month, through Oman, Qatar, and Kuwait. The market’s connections of 40 multiple five-year mobile decline was mainly due to the bleak sources of the data-developing broadband framework economic situation, geo political a flexible engine for simulations uncertainties, inventory pileups, of maturity, which facilitated agreement and seasonal shifts in demand. In procedures and the provision of Qatar’s Ooredoo Group and Nokia contrast to the poor performance of services in accordance with an Networks have signed a five-year the overall market, Oman and Bahrain electronic innovative infrastructure framework agreement to support both experienced healthy quarter-on- technology for data processing. Ooredoo’s long-term development quarter growth, spurred by a strong The upgraded version of ‘Estihkak’ strategy across its footprint in the push of smartphone and portable provides many features such as Middle East, North Africa and Southeast PC shipments by certain vendors. technical support and system Asia. Under the contract, Nokia will Unfortunately, these markets only customers’ management and provide advanced mobile broadband account for a combined 9% share of the objections in addition to the technologies and professional services GCC mobile connected devices space, follow-up performance reports. for Ooredoo Group’s 2G, 3G, 4G and meaning their positive performances “The new services revealed during LTE-A networks. In the renewed were unable to counterbalance the the GITEX 2015 are in response to agreement, the terms and conditions negative growth seen across the rest the growing demand and huge have been revised to include global of the market. The larger markets of potential of integrated e-solutions best practices in terms of delivery and Saudi Arabia and the UAE dominate technology for the benefit of both the GCC mobile connected devices

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SAMENA TRENDS _ OCT 2015 SAMENA TRENDS _ OCT 2015 space with a combined share of region this quarter, we are continuing Mobile operators directly more than 75%, but it was these to track considerable movements in two markets that suffered the the GCC and remain optimistic about contributed US$31 region’s steepest declines as the tablet market’s performance,” says billion to Sub-Saharan political and economic concerns, Feras Ibrahim, a research analyst for decreased consumer sentiment, personal computing at IDC Middle African economy, and seasonality variables all East, Africa, and Turkey. “We expect to hit demand. Ongoing political see some noteworthy activity in the representing 1.7 percent tension in Yemen is proving to tablet market, and this won’t be limited of GDP be a particular concern as the to the consumer segment. Kuwait will The mobile industry in Sub-Saharan country borders Saudi Arabia see the delivery of over 70,000 units to Africa contributed more than US$100 and the current situation poses the education sector in Q3 2015, while billion to the region’s economy last a threat to the kingdom and the a significant delivery in the aviation year, according to a new GSMA study wider region. Falling oil prices are sector has already been announced published at the ‘Mobile 360 Series also hampering growth prospects, in Bahrain.” Shipments of portable - Africa’ conference being held in with governments across the GCC PCs fell 13.2% quarter on quarter in Cape Town this week. The new study, introducing spending cuts. Some Q2 2015. Consumers are increasingly ‘The Mobile Economy - Sub-Saharan GCC countries are considering moving away from portable PCs Africa 2015’, finds that the US$102 introducing new tax systems that towards tablets and smartphones, billion economic contribution in 2014 have the potential to negatively and this trend is inhibiting any type was equivalent to 5.7 per cent of the impact the commercial segment of growth in this space. “There is region’s GDP1. Mobile operators and reduce both consumer no question that portable PCs in directly contributed US$31 billion, disposable income and confidence the GCC are being threatened by representing 1.7 per cent of GDP. in general. The GCC smartphone other tech products, and shipments This economic contribution is set market’s performance in Q2 2015 will continue to decline throughout to increase over the coming years was its worst since IDC began the five-year forecast period,” says as mobile operators continue to tracking the market in 2013, Ibrahim. “More and more end users extend connectivity to unconnected with shipments down 9% on the are adopting tablets, smartphones, populations across the region and roll previous quarter. Four out of and even wearables as their ready-to- out new mobile broadband networks the six GCC countries recorded go mobile device instead of portable and services. The industry is forecast negative growth in Q2 2015, but it PCs, which is leading to prolonged to contribute US$160 billion in value was the poor performance of Saudi refreshment cycles and is blocking to the region by 2020, equivalent to Arabia and the UAE that drove the growth of portable PCs in the 8 per cent of expected GDP by this this decline in shipments. iOS and GCC.” According to IDC, the significant point. “The mobile industry remains Android continue to dominate in downturn experienced by the overall a key driver of economic growth terms of smartphone operating market in Q2 2015 is not indicative and employment in Sub-Saharan systems, with a combined 97% of a permanent malaise in the GCC. Africa, making a vital contribution market share. “That figure will only Instead, it shows that the region’s given the population growth and increase in the coming quarters markets have become more sensitive high unemployment levels seen in with news that more vendors - to external macro environments. many countries in the region,” said including BlackBerry and Nokia - Indeed, IDC forecasts a rebound in the Alex Sinclair, Acting Director General will be releasing their own Android coming quarters as the markets adjust and Chief Technology Officer at devices,” says Saad Elkhadem, a themselves to the economic factors the GSMA. “Despite revenue and research analyst at IDC Middle currently hindering their performance. margin pressures, local mobile East, Africa, and Turkey. “The Positive seasonal trends will also operators continue to invest heavily impending release of Windows 10 come into play, with the UAE’s GITEX to extend network coverage to serve will have a positive, albeit small, Shopper event expected to make a unconnected communities and impact on Microsoft’s share of significant contribution to shipments accelerate the migration to high- the smartphone space. It will take of all technology types in Q3 2015. speed 3G/4G mobile broadband time for both consumers and the The final quarter of the year is also networks. Mobile technology is also channel to gain confidence in usually a strong period for mobile playing a central role in Sub-Saharan the new platform, and Microsoft connected devices, primarily due to Africa by addressing a range of socio- will be reliant on app developers the holiday season but also because economic challenges, particularly to provide their backing in order many new smartphones are launched digital and financial inclusion, and to give it a fighting chance of in Q3 and start gaining traction in enabling access to vital services competing with the app offerings Q4. As such, IDC expects the GCC such as education and healthcare.” available on iOS and Android. Apps mobile connected devices market to It is forecast that there will be 386 are essential for driving a positive grow 6% in Q3 2015 and another 4% million unique mobile subscribers user experience on any given in Q4 2015. Looking at the year as a in Sub-Saharan Africa by the end of platform.” The GCC tablet market whole, IDC forecasts the GCC mobile this year, equivalent to 41 per cent of bucked the trend in Q2 2015, connected devices market to grow 6% the region’s population. The region’s recording quarter-on-quarter year on year to total 34 million units, subscriber base has grown by 13 per growth of 2% to prevent the overall followed by further growth of 10% in cent a year (CAGR), on average, during mobile connected devices market 2016. the first half of this decade (2010 to from spiraling to an even worse 2015), growing at more than twice performance. “Despite the gloomy the rate of the global average (6 per proclamations surrounding the cent) during this period. The region

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overtook Latin America in 2014 to indirectly supported as result of the phones has also doubled over the become the world’s third-largest demand generated by the mobile past four years, replacing desktops mobile subscriber market, behind sector, bringing the total to 4.4 million. and other portable devices,” Al only Asia Pacific and Europe. It is forecast that the industry will grow Ahmad said. He added that such an The number of unique mobile to support more than 6 million jobs by abundance of data has shed light on subscribers in Sub-Saharan Africa 2020. The mobile ecosystem also made the importance of telecommunication is forecast to surpass half a billion a contribution to the public finances of providers raising security in order to (518 million) by 2020, representing the region’s governments via general offer backup in case of emergencies. almost one in two (49 per cent) of taxation of approximately US$15 “The data centre in Khalifa City offers the region’s population by this billion in 2014. Mobile operators in servers, additional storage of data, point. Total mobile connections2 the region invested US$9 billion in cooling systems, and a wider network in Sub-Saharan Africa are on track network infrastructure development to distribute energy. This means to reach 722 million by year-end. in 2014, a 16 per cent increase on the that we have more infrastructure to Mobile broadband (3G/4G) will amount invested in 2013. The ongoing service more individuals, companies, account for almost a quarter of investment in mobile broadband government organizations, and banks,” connections this year, but will networks will see capital investments Al Ahmad said. He noted that etisalat increase to 57 per cent by 2020, reach US$13.6 billion by 2020. has laid out an investment plan worth driven by expanding mobile The report highlights how mobile Dh25 million between 2010 and 2015 broadband network coverage and operators are working on innovative to raise its coverage. The company’s falling device costs. Commercial solutions to expand network coverage nine data centers are located in Abu 3G networks have been launched to underserved populations in rural Dhabi, Al Ain, Dubai, and Fujairah, and in 41 countries across Sub-Saharan and geographically remote areas, and can store over 400 gigabytes of data Africa as of June 2015, while 4G to tackle the barriers to mobile phone across the centers’ total area of 16,000 networks have been launched in adoption, including affordability square meters. “It has become clear 23 countries. Investment in these and digital literacy. It also indicates that there is an urgent need to handle high-speed networks is resulting that mobile operators, governments data, especially with the Internet of in a corresponding growth in and international development Things, and Big Data. The data centre consumers using their devices organisations have been working on in Khalifa City currently services the to access the internet; almost a a range of mobile-based solutions to education, banking, and aviation quarter (23 per cent) of the Sub- address a variety of social challenges sectors primarily,” Al Ahmad said. Saharan African population will in the region, many of which arise from be using the mobile internet this lack of access to essential services, year, a figure forecast to rise to 37 such as basic education and health. per cent by 2020. Mobile is seen “Mobile is having a hugely positive LTE performance: Oman as the primary means of accessing and transformative impact across Sub- ranked 28th, only behind the internet in a region where Sahara Africa, but future progress will fixed-line infrastructure is severely depend on governments working with UAE among GCC states limited. The increasing availability the industry to provide a regulatory Oman’s telecommunication industry of mobile broadband networks, environment that encourages continues to perform robustly with alongside the introduction of investment and innovation,” added the sultanate being ranked 28th in affordable mobile data tariffs and Alex Sinclair. the world in LTE performance, leaving falling device prices, has led to behind the UK, Japan, Germany and a surge in smartphone use. The the US. Oman is ahead of all GCC smartphone adoption rate has UAE telecom countries except UAE. The average doubled over the last two years download speed on Oman’s 4G and now accounts for one in five infrastructure ready networks inched up to 15Mbps in the connections, though this is still to handle data and June-August quarter, according to half the global adoption average research company OpenSignal’s global (40 per cent). It is predicted emergencies report, ‘The State of LTE’ released that regional smartphone Etisalat, the Abu Dhabi-based earlier this month. New Zealand connections3 will reach 540 telecommunications provider, scored the highest average speed in million by 2020, accounting announced the launch of nine data the quarter with 36Mbps, coming up for half of total connections centers across the UAE in order to from nowhere in the rankings. But by that point. The report notes boost its services to consumers. The perennial standouts like South Korea that the average selling price centers aim to provide back-up and and Singapore kept getting faster, (ASP) of smartphones has fallen additional infrastructure in case of too. The average LTE speed in Korea significantly in most regional natural disasters such as earthquakes is now 29Mbps (up by 4Mbps), and in markets, with an increasing and fires. During a Gulf News visit to Singapore it’s 33Mbps, up by 5Mbps. number of models now available a data centre in Khalifa City, Abdullah UAE ranked eighth, Bahrain 37th, in the sub-US$100 price range. Al Ahmad, etisalat’s vice-president Qatar 58th, Kuwait 63rd and Saudi In 2014, the mobile ecosystem of Business Services, said that the Arabia 65th. However, in case of LTE directly employed approximately company has seen a global need to coverage, Oman is ranked 43rd (with 2 million people in Sub-Saharan boost data security. “There are about 55 per cent coverage) overall and is Africa, with the majority working in 15 billion devices globally connected behind all other GCC states. Kuwait the distribution and retail sectors to the internet, with data worth 13 leads the group at the fourth spot, and approximately 325,000 trillion gigabytes in 2015 and around followed by Bahrain at ninth, Qatar at employed by mobile operators. 500 million transactions done on a 13th, UAE (17th) and Saudi Arabia at A further 2.4 million jobs were daily basis. The number of mobile the 30th position. The biggest standout

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SAMENA TRENDS _ OCT 2015 SAMENA TRENDS _ OCT 2015 is South Korea, where users enjoy size of US $1 billion in 2015. IT services launch in Dubai. Last year alone, LTE service 97 per cent of the time. spending is estimated to reach US Huawei targeted global smartphone On carrier LG U+, it’s 99.6 percent, $361 million in 2015. Consulting, with shipments of 60 million units and so effectively subscribers never an estimated market size of US $93 expect this number to increase further. have to fall back onto 3G. Korea million in 2015, and implementation, “The Middle East is a very strategic is also home to the fastest single with an estimated market size of market for our business. We strive LTE operator in the world, Olleh, US $96 million in 2015, will be two to grow and offer our customers with an average download speed of largest sub-segment within IT products that impact and enrich their of 30Mbps. In another report services in 2015. Software spending lives. In designing the Huawei Mate S, conducted by global analyst firm will increase 4.9 percent over last we wanted to develop a smartphone Ovum, 4G LTE-enabled devices year to reach US $394 million in 2015. that offers a personalized experience will account for four out of five Internal services will grow 5 percent with the power of touch; we once mobile subscriptions in Oman in 2015 to be a US $497 million again took a revolutionary approach by 2020. The number of LTE market in 2015. Internal services and re-imagined how people interact mobile subscriptions in Oman will refer to salaries and benefits paid to with their devices, adding innovative exceed GSM (2G) subscriptions in the information services staff of an features that enhance ease of use, the country by the end of 2015 organization. The information services functionality and creativity,” said and overtake W-CDMA (3G) staff includes all company employees Sandeep. With the launch of the subscriptions during 2018, growing that plan, develop, implement and Huawei Watch, we have created a to account for 80.6 per cent of maintain information systems. “The bespoke timepiece that expresses Oman’s mobile subscriptions by private sector in the Middle East and consumers varied preferences in the end of 2020, forecasts Ovum. North Africa is ramping investments technology, fashion and lifestyles, The number of GSM connections in building hospitals, clinics, and by whilst maintaining technological in Oman will decline steeply over forming partnership with international innovation, added Sandeep. Touch is the forecast period, with the result centers of excellence from the U.S. and a core of the Huawei Mate S, creating that W-CDMA and LTE connections Europe. Chronic disease management a new experience for users that combined will make up 99.5 per is a major priority in the area, “said enhances their interaction with the cent of mobile subscriptions Anurag Gupta, research vice president device. When viewing photos, they can in the country by end of 2020. at Gartner.”This demand of healthcare be quickly previewed and enlarged by Matthew Reed, practice leader for within the local population, and pressing the screen with one finger, Middle East and Africa at Ovum, growth in building local credentials streamlining the operations of a said, “Oman is among the more to attract medical tourists is deriving traditional phone. advanced telecom markets in the corresponding investments in ICT.” Middle East, and the continued Further information on healthcare roll-out of LTE networks by the two providers sector IT spending is Airtel, Axiata Bangladesh main operators, along with factors available in the Gartner report: such as increasing affordability Forecast: Enterprise IT spending for apply for merger of LTE-enabled devices, will lead the Healthcare Providers Market, permission to a rapid rise in the use of LTE Worldwide, 2013-2019, 2Q15 Update. Bangladeshi cellcos Robi Axiata technology over the coming five The forecasts provides total enterprise and Airtel Bangladesh, owned by years.” IT spending, including internal Malaysia’s Axiata and India’s Bharti spending and multiple lines of detail Airtel respectively, have applied for spending on hardware, software, to the local telecoms regulator for IT services, and telecommunications permission to merge their operations, Healthcare providers for vertical industries and 43 countries it has been revealed in an update to the within seven geographies. in Middle East and previously announced negotiations North Africa to spend between the two rivals. The Daily Star, quoting senior executives of US $2.73 billion on IT Huawei witnesses Robi and Airtel, wrote that the pair in 2015 exponential growth in hope to complete a merger deal by January 2016 to leapfrog Vimpelcom’s Healthcare providers in the Middle ME subsidiary Banglalink as Bangladesh’s East and North Africa will spend Chinese electronics giant Huawei and second-largest mobile provider US $2.73 billion on IT products the world’s third-biggest smartphone behind Telenor’s GrameenPhone unit. and services in 2015, according to manufacturer say that the Middle East The Bangladesh Telecommunication Gartner, Inc. This forecast includes market remains their stronghold as it Regulatory Commission (BTRC) spending by healthcare providers witnesses exponential growth in the confirmed that it has received a (which includes hospitals and smartphone segment. At the same joint application, whilst noting that physicians’ practices) on internal time Sandeep Saihgal, Middle East the merger will require separate services, software, IT services, Vice president of Huawei Consumer government approval on top of data center, devices and telecom Business Group said that the company the regulator’s recommendation. services. Telecom services, continues to break new ground in According to the merger plan, Axiata which include fixed and mobile the wearables space, especially with would take a 70% stake in the enlarged telecom services, will remain the the unveiling of the Huawei Watch, cellco, with Bharti Airtel holding 25% largest overall spending category powered by Android Wear(tm) and IOS. and a 5% stake retained by Japan’s throughout the forecast period Huawei unveiled the flagship Power NTT DOCOMO, which is an existing within the healthcare providers of Touch “Mate S” Smartphone and minority shareholder in Robi sector with an expected market the Huawei Watch W1 at the regional

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Regulatory NEWS

Reduced growth rate in general sales tax (GST) collection declined by almost a quarter to Rs46 billion in the Pakistan telecom sector an review period compared to Rs60 billion in incentive for policy review FY14. Other taxes, which include customs duty, withholding tax and other levies Almost all key indicators – from revenues declined by 6.4% to Rs73.5 billion in FY15 to foreign direct investment (FDI), imports compared to Rs78.6 billion of the last and contribution to the national exchequer fiscal year. – showed reduced growth, statistics from Pakistan Telecommunication Authority have revealed. The sector’s overall revenue clocked in at Rs449.5 billion in the year Europe votes on roaming ended June 30, 2015, down 3% compared charges, net neutrality Regulatory to Rs463.5 billion of the previous fiscal year. A breakdown indicates the sales The European Parliament backed the EU Updates of cellular mobile operators, which telecoms reform package, including key account for more than two-thirds of the measures that will see an end to roaming sector’s overall revenue, declined 1.8% charges and guarantee net neutrality – to Rs317 billion during the year under although the proposal was never under review compared to Rs323 billion of the serious threat. The result was unlikely to corresponding year. It may be added that deliver any serious surprises, since the the operators’ overall user base decreased text in question was agreed between the by more than 25 million or 18% to 114.7 parliament, European Commission and million in FY2015, compared to the peak the Council of Ministers in June. However, of almost 140 million in June 30, 2014, Pilar del Castillo Vera, the bill’s main courtesy the biometric verification drive. parliamentary backer, was heckled during The total FDI in the sector amounted her victory speech and amendments were to $121 million during FY15, down proposed (but rejected). Supporters of 72% compared to $430 million of the tighter net neutrality failed to muster corresponding year. The telecom sector’s enough votes to cause an upset. In a contribution to the national economy – speech ahead of the vote, European in the form of sales tax, excise duty and Commission Vice-President Andrus Ansip customs duty – also declined by almost hailed the compromise behind the vote: 50%. The sector paid Rs126 billion in “Adopting the rules for a Telecoms Single taxes to the government during FY15 Market will be a major achievement for compared to Rs243 billion of the previous the Digital Single Market. It will show year. A breakdown of tax data shows Europeans that the Union can deliver

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tangible results. You now have the at ways to use the spectrum that is noted. “We have a good economy and deal in your hands. It is a good deal, available more effectively. “A way to good regulation [in the UAE].” Julfar for Europe and Europeans.” The address the challenge is to combine was preceded on stage by H.E. Hamad agreement between the three bodies spectrum, as well as spectrum Al Mansoori, the Director General will see an end to roaming charges sharing, particularly in rural parts of of the UAE’s Telecoms Regulatory from June next year as well introducing the country. This could be part of the Authority (TRA), who had set out net neutrality for the first time in EU solution, even if operators don’t like the local government’s strategy for law. The latter rules will come into it. In the future, it is inevitable that supporting digital growth. He talked effect from 30 April, 2016. However, spectrum is limited. of the government and the private it followed some fraught negotiation. sector working together to achieve Ansip himself appeared in despair “common goals” and responding at times. Back in March this year, he quickly to rapid technological change. described the chance of reaching a India’s telecom industry This was a theme continued by Julfar: compromise agreement as “an uphill may see a 3-way merger “Even in UAE, we are just scratching struggle”. However, presumably today the surface [of the digital revolution]. Indian operators Reliance he is adopting a lighter tone. Governments need to adapt… and Communications (RCom), Aircel and embrace change. It’s like a high speed Sistema are reportedly negotiating train bypassing your station – do you a three-way merger that could bring get on or do you get left behind? some sorely-needed consolidation to Qualcomm, Ericsson and Regulators in many countries are not the nation’s crowded mobile market. yet geared up to support the future.” ZTE weigh in on calls for The companies have commenced Julfar noted that Etisalat was active initial talks over an arrangement that more US spectrum in 19 “very different” markets across could create the nation’s third largest US spectrum access remains the the Middle East and North Africa, as mobile operator by subscribers, the biggest challenge facing the country’s well as being the market leader in the Economic Times reported, citing mobile market and needs to be UAE. He described Etisalat as “a digital unnamed sources. Under the proposal addressed to support the growing enablement platform” and an “enabler Sistema’s Indian mobile brand MTS requirements in the country, leading of social and economic growth.” could merge into RCom via a share- vendors warned. Representatives swap deal. The combined company from Qualcomm, Ericsson and ZTE would then enter a pact to tie up with echoed each other in drawing on a Aircel. According to the report, the lack of available spectrum to meet the Tata Teleservices takes second stage of the proposed deal growing demand for data services in would require both RCom and Aircel first step to trade the country, which Ericsson’s North to reduce their debt levels via asset America CTO and head of strategy 800MHz spectrum sales. But RCom would reportedly Glenn Laxdal said is growing “at India’s Tata Teleservices is looking to prefer to enter a deal with Aircel a rate of more than 50 per cent, liberalise its CDMA spectrum in at involving trading and sharing airwaves while revenue for operators grows least four regions as it prepares to rather than a merger. If a merger deal comparatively in the single digits”. He trade the spectrum, likely with Telenor does go through the sources say said that while next year’s US incentive India, as it needs to offer 4G services Maxis will end up being the largest auction will help, “even though its not to keep up with the country’s major shareholder in the combined company a large amount”, the recent AWS-3 players which have announced 4G with a 35-40% stake, RCom’s majority spectrum, which raised approximately rollout plans. Under the country’s owner Anil Ambani having less than $45 billion, showed “just how valuable new spectrum trading rules, which 30%, Sistema having less than 10% spectrum is”. Laxdal said the country the cabinet approved last month, an and the remainder going to RCom’s now needs to look “towards a 2020 operator is required to “liberalise” other shareholders. Aircel is owned timeframe, in particular for 5G, when spectrum that wasn’t acquired in by Malaysia’s Maxis, while Sistema the the industry will need access to large an auction by paying the market, or parent company is from Russia blocks of spectrum in 100GB blocks”. auction-determined, price before it can Counterpart Matt Grob, EVP and CTO trade the airwaves. Tata Teleservices, at Qualcomm, conformed, stating that which is the country’s seventh largest “fair and reasonable access to spectrum Etisalat CEO hails UAE’s operator with a 6 per cent share, has remained the biggest challenge in the advised the Department of Telecom US to deploy networks where they regulatory stance its intention to liberalise its 800MHz are needed”, while ZTE’s Sean Cai, VP Ahmad Abdulkarim Julfar, head of spectrum in Delhi and Andhra Pradesh, CTO team, said the problem lies in Etisalat Group, highlighted the UAE’s and plans to do the same for Mumbai regulating the amount of spectrum approach to telecoms regulation as a and Maharashtra, the Economic Times available, which could present even model that will support mobile growth reported. It also may consider freeing bigger challenges once 5G comes across the Arab world. Speaking in up the spectrum in Haryana at a later around. “With 4G, you see pockets of the opening keynote session here time. The operator’s 800MHz spectrum spectrum being used, but you need in Dubai, Julfar (pictured above) in the four regions has attracted deep coverage to fulfill what 5G is hailed the UAE as “one of the most interest from rivals because they are intended to do, even in rural parts successful telecoms markets in the among the country’s highest revenue of the country, and that will be the region”, especially with regards to service areas, the Times said. Tata biggest challenge.” Cai believes that spectrum. “We have more spectrum Tele had been linked to Telenor India, as well as providing more spectrum, available in the UAE than any of the which operates 2G service in only the country’s operators need to look other markets where we operate,” he

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SAMENA TRENDS _ OCT 2015 SAMENA TRENDS _ OCT 2015 six regions and is understood to be secure its digital future and maintain • Simplification of current looking to expand nationwide. But the its position as the leading digital regulations with duplication Telenor unit balked at the valuation of economy in the G20 Boston Consulting removed where possible Tata Tele, which has more than INR250 Group. UK eGDP 2010-2018: Summary As well as setting out how the billion ($3.8 billion) in debt. The new of forecasts. May 2015. Central to BT’s broadband market has flourished spectrum trading rules would enable vision is further large scale investment – in part thanks to the creation Telenor to expand by just purchasing – building on the £20bn it has invested of Openreach – BT’s submission the 800MHz spectrum to roll out 4G in networks over the last decade – as highlights the continuing problems services. Tata Tele plans to introduce well as an enhanced focus on service in the Pay TV market, where Sky’s 4G services as well, but first needs to to meet massively increasing customer dominance continues to be unchecked liberalise its spectrum, the Times said. demand for communications. BT says and where new rules are needed Reliance Communications and 4G it is vital for the digital health of the to make switching far easier for upstart Reliance Jio Infocomm were UK that Openreach remains part of customers. The competition issues in the first operators in India to take the wider BT Group as this will enable this market have long been recognized advantage of new regulations allowing it to continue to benefit from BT’s but regulation has been ‘lop sided’ to spectrum sharing, with plans to share capital as well as the c.£500m a year date with Sky having easy and highly the 800MHz band in 10 service areas. BT spends on its world class research regulated access to the Openreach and development. BT is keen that network – which has enabled it to Open reach continues to provide secure millions of UK broadband European telco regulated services to all companies customers – whereas BT has struggled on an equal basis as this model has to obtain similar wholesale deals with CEOs speak up served the UK exceptionally well over Sky when it comes to content. BT the past decade, and the company Group chief executive Gavin Patterson for consolidation, believes others have failed to make a said, “We are now at a critical point regulatory reform convincing and evidence based case in the development of the UK as a for change. In its submission, BT cites Operators say they need to be able to digital nation. Broadband has become independent data that shows the UK merge to build scale as demands on central to our economic and social life currently leads the EU ‘big five’ for the network grow. Upgraded copper, today and the industry must therefore superfast broadband coverage, take mobile and cable are all now used for invest to meet this growth in customer up and competition. Prices are also delivering high-speed Internet access. expectations and demand. “BT is among the lowest in Europe Ofcom, “Commercial terms for network driving the transformation of Britain’s European Broadband Scorecard Q1 access should be the rule; regulation digital infrastructure but we need the 2015. The company also sets out how should be the exception,” they said. right regulatory regime that supports the average UK broadband speed They also spoke up for spectrum fair competition for all and large has risen from just 1Mbps in 2005 to reform, demanding “a truly European scale investment. With this in place, more than 22Mbps currently, and how approach to spectrum allocation.” there is no doubt that we can meet around 24 million households and “We support a political agreement the challenges of the next decade, businesses are using the service across between the European Commission fulfilling the needs of consumers all networks, around three times the and governments on how to ensure and businesses, driving the growth eight million who used broadband harmonized spectrum management of the UK economy and supporting a decade ago. Demand is growing across the EU,” they said. Finally, the social progress for the whole country. with customers increasingly reliant on telcos also addressed the issue of net “Ofcom has the opportunity to level the internet and demanding higher neutrality, highlighting the importance the playing field by tackling Sky’s levels of service. BT outlined plans of network quality and diversification dominance of Pay TV. That dominance on 22 September to meet this surge of services as new markets emerged, has led to poor outcomes for UK in demand now and in the future, such as connected cars, e-health and consumers and it is about time that and today’s submission sets out the online content distribution. “All of converged regulation was introduced regulatory changes that would help this requires network management to deal with a converged market. UK consumers and businesses enjoy as well as differentiation of services,” The current lop sided approach isn’t the best possible outcomes. These the operators said. “This awareness serving customers well.” include: should drive implementation and any future policy debate on the topic. • Long term commitments from MTN chief pushes Ofcom to provide certainty and clarity need for “predictable” Operators’ need for • Regulatory policies to encourage regulation large scale investment the right regulatory Sifiso Dabengwa, CEO of African regime that supports • Support for consolidation when it operator group MTN, said that while benefits competition and brings the idea of providing universal access fair competition for investment to telecoms services is “a great investment reinforced in • A better regulatory balance objective”, this has to be accompanied UK between service quality and price by regulatory moves “to make sure • A level playing field particularly that can actually happen”. “I think that BT has responded to Ofcom’s Digital with regard to Pay TV in our region, across our continent, Communications Review, setting the relationship between operators, out how regulation can help Britain

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regulators and policy makers has (pictured) questioned the underlying (master services agreement) warranted probably not been optimal. In nearly argument behind such deals. She a stock market announcement. every market there is a policy drive claimed even while UK operators are to get universal internet access, but investing billions in rolling out 4G, then the availability of spectrum they are maintaining a healthy average is probably the biggest issue,” he cashflow margin in excess of 12 per BT says retaining said. Dabengwa was confident in his cent. “We continue to believe that four Openreach ‘vital’ for UK belief that operators are prepared operators is a competitive number to invest heavily, but that this is a that has delivered good results for digital economy long-term effort which needs to be consumers and sustainable returns BT became the latest U.K. telecoms accompanied by “clear regulation that for companies,” commented White operator to respond to Ofcom’s is predictable”. “It’s going to be quite in a speech at the London School of market review, reiterating its expensive, a lot of capital expenditure Economics & Political Science. Even determination to retain control of its has to be made, but I think that if though Ofcom will not rule directly Openreach access arm and its desire you look at it in the longer term, it’s on either UK merger, her comments for a level playing field in the pay a worthwhile investment. I don’t reflect thinking among regulators. “I TV sector. The U.K. incumbent once believe that from an operator point am concerned that the UK could end again highlighted the investments it of view there are a lot of issues, the up with more concentrated markets has made in its infrastructure, putting big issue is that we need a predictable that lead to higher prices and reduced the sum at £20 billion over the last environment, knowing that we will not choice for consumers, without the 10 years and pledging to continue be limited in terms of growth from a promised boost to investment and spending provided it has the backing spectrum point of view.” The MTN CEO innovation,” said White. The UK of a supportive regulator. “It is vital pointed to the strong growth of basic regulator provided evidence to the for the digital health of the U.K. voice services in Africa, where “the Competition and Markets Authority that Openreach remains part of the costs of getting into the business from (CMA) and the European Commission wider BT Group as this will enable a regulatory point of view were very for both deals but does not have a final it to continue to benefit from BT’s reasonable. There weren’t extensive veto on either. She echoed comments capital as well as the c.£500 million up-front costs”. “All we are asking is last week by EU Competition a year BT spends on its world class that the same regulatory framework Commissioner Margrethe Vestager, research and development,” the telco that we saw in the basic voice service pointing to research suggesting that said, in a statement. “BT is keen that has to be applied in the more data- a reduction in the number of players Openreach continues to provide intensive environment. But the key from four-to-three in a national regulated services to all companies issue is that we have to have the mobile market in the EU can lead on an equal basis as this model has spectrum available, and it has to be to higher prices for consumers, but served the U.K. exceptionally well over available much ahead of time, so that not more investment per subscriber. the past decade, and the company we can always meet the demand as it Meanwhile Vodafone has used a believes others have failed to make a grows,” he added. Dabengwa also said submission to Ofcom to call for BT’s convincing and evidence based case that consolidation may be required local-networks business, Openreach, for change,” it added. Its comments in some markets in order to enable to be split off entirely from its parent. come after Vodafone on Thursday the necessary levels of investment in BT’s role as a wholesale supplier of aligned itself with the structural infrastructure. “I think if one averages broadband services has come under separation camp, sharing its belief out most markets on the continent, greater scrutiny since its bid for EE. that this is the only way to stimulate probably the population is between According to the Financial Times, investment in the market, referring in 30 million and 60 million. If you have Vodafone argued that BT generated particular to fiber network rollouts. four or five operators that are trying to £6.5 billion in “excessive profits” in In its submission to the regulator, BT compete, and invest, and be profitable, the past decade from its Openreach insisted that the U.K. has a flourishing I think that’s quite difficult,” he said. unit overcharging broadband rivals. broadband market, in part thanks to “In data-intensive markets, we have to The operator made its submission as the creation of Openreach a decade consider consolidation, to the extent part of Ofcom’s general review into ago. It also renewed calls for Ofcom that there is still competition, but also regulation of the telecoms sector to address Sky’s dominance of the pay so the markets and the business are (as opposed to specifically the BT-EE TV market. Sky has “easy and highly sustainable.” deal). Consultation closed today (8 regulated access to the Openreach October). Separately, fixed operator network – which has enabled it to Cityfibre yesterday announced it secure millions of U.K. broadband OFCOM chief warns on would be supplying connectivity to customers – whereas BT has struggled Vodafone. There has been concern to obtain similar wholesale deals BT/EE, 3 UK/O2 mergers expressed by some operators at BT’s with Sky when it comes to content,” Sharon White, chief executive of UK role as a leading backhaul provider for BT said. The telco has built up a pay regulator Ofcom, gave a further sign the mobile industry since its bid for TV customer base of 1.2 million and of bearishness among regulators in EE. But Vodafone denied to Mobile has spent heavily to secure rights to Europe towards consolidation in the World Live any link to BT’s EE bid. premium sports content, including mobile industry. Fixed incumbent BT “We have always worked with a mix English Premier League football. is in the process of acquiring leading of different suppliers, usually there “BT is driving the transformation of operator EE, while 3 UK and O2 are no announcements about these Britain’s digital infrastructure but we might also tie up, radically reshaping agreements. Howwever with CityFibre need the right regulatory regime that the UK’s telecoms market. Yet White being AIM listed they felt that the supports fair competition for all and first contract under the existing MSA

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SAMENA TRENDS _ OCT 2015 SAMENA TRENDS _ OCT 2015 large scale investment,” said BT chief Telecoms regulations “deployment of communication executive Gavin Patterson. “Ofcom has networks that meet the needs of users the opportunity to level the playing should not “create over the next decade” and provide for field by tackling Sky’s dominance of burdens” for businesses “an acceptable level of connectivity” pay TV,” he added. “That dominance for every person, it said. The regulatory has led to poor outcomes for U.K. looking to invest in regime should also be one which consumers and it is about time that “empowers and protects consumers converged regulation was introduced the next generation of through greater transparency and to deal with a converged market. digital communications awareness of services and safeguards consumer privacy and use of their infrastructure, the UK data”, and provide EU countries government with freedom to “place appropriate Regulators urged to give obligations on service providers” The Department for Culture, Media for national security reasons, it said. IoT industry sub-1GHz and Sport (DCMS) issued the DCMS said the European Commission warning in a document that sets spectrum should look to avoid increasing the out the UK government’s views Regulators need to devote sub-1GHz regulation facing ‘over the top’ (OTT) and priorities for reforms to the EU spectrum to the Internet of Things to communication providers, echoing electronic communications regulatory ensure the long-term health of the views expressed by UK culture minister framework. DCMS said the electronic sector, the Wireless IoT Forum has Ed Vaizey last month. Instead, the communications market has seen urged. The industry body said the likes Commission should focus efforts on “significant changes” since the last of Ofcom in the UK and the FCC in the reducing the regulatory burdens for time the regulatory framework for US need to do more to solve issues such traditional telecoms operators facing the market was opened up for review as fragmentation and interference. It competition from the OTT providers, in 2007, including an increase in said the latter is a problem because where possible, it said. “Changes in consumers’ expectations of electronic of the volume of applications using technology will create winners and communication services, and the current bands. Further difficulties losers, but new regulation should increase in use in, and advancement of, are caused by how IoT traffic has not be used to shield companies mobile technologies. “Users are now to go through a limited number of from the competition of legitimate, increasingly seeing connectivity as a base stations and are subject to the more popular alternatives and the right, rather than a privilege,” DCMS same regulatory constraints as other Commission should use the existing said. “They commonly expect to have devices using unlicensed spectrum. competition framework effectively the freedom to be connected and In order to power networks that where there is evidence of market to access services and applications, comprise more than 1,000 devices abuse,” DCMS said. “The Commission wherever they are and whenever they per cell, the IoT Forum said these cells should also make the distinction want, at all times. The willingness of need to have enough power to have between regulation of infrastructure consumers to pay for communications a range of up to five kilometers, have networks and the regulation of services may not necessarily rise with a balanced uplink and downlink ratio, communication services, reflecting their expectations and so this is a real be interference free and operate on that OTT service providers have investment challenge to industry.” a band that is available worldwide. no control over the infrastructure “This challenge is intensified by the William Webb, WIoTF CEO, said: “It upon which they rely.” “Creating a costs associated with developing new is clear the IoT is a key technology transparent and competitive market technologies; the emergence of new, to boost productivity, alleviate key should not automatically mean non-­traditional players delivering societal challenges, and improve our extending regulation to all over the electronic communication services; working lives and to deliver growth top services… It should be possible and changes in market structures and employment. “For these reasons to explore a deregulatory approach across Europe. Within this context, it merits a higher level of regulatory where this does not harm consumer the regulatory framework needs attention than many other wireless interests or hinder member states’ to support industry to make the applications. We would like to see ability to protect public security by necessary investments in our digital regulators dedicate bands in the range placing obligations on services. Where communications infrastructure, rather 800MHz-1000MHz to IoT applications, users now consider OTT services to than create burdens on public finances thus overcoming interference issues. be close substitutes for traditional or on the businesses investing in “Where IoT is deployed in general electronic communication services, infrastructure. Deregulation should purpose unlicensed bands we would deregulation of those traditional therefore be the starting point for this like to see “light licensing” approaches services could reduce the financial review,” it said. The UK government for base stations removing duty cycle and regulatory burden on the wants to see EU a regulatory framework restrictions and enabling higher telecoms industry at a time where for electronic communications that power levels.” Webb’s Weightless the Commission and member states “supports investment and innovation, SIG has been working on its own are looking for significant levels of and accommodates changes in narrowband IoT technology. Nwave investment in infrastructure and technology and market structure” and recently deployed an IoT network in services,” it said. DCMS also said which recognizes that competition Copenhagen using tech built on the that reforms to EU data protection is “the most effective way to deliver Weightless-N standard. rules currently in the pipeline could the desired outcomes”, DCMS said. afford EU law makers the chance to The framework must also aid the streamline EU e-privacy rules. The

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the UK retail mobile spectrum want to share their spectrum, and wholesale mobile then they will need to pay one-time markets’. As such, it spectrum charge demanded by DoT. has said it believes it “If the said amount is not paid due to is appropriate for the judicial intervention at judicial forums case to be referred barring any coercive action, in the to it for investigation interim, sharing of spectrum in such because any impact on cases will also be permitted subject to competition resulting submission of a bank guarantee for an from the merger will amount equal to the demand raised… likely be limited to pending final outcome of the court UK consumers. It also case,” the guidelines said. cited its experience in investigating mergers Arcep authorizes Orange as another reason that to trial ‘5G’ in France it should be allowed to tackle the case, France’s Regulatory Authority for Commission has previously said it will saying in particular Electronic Communications and look to update the existing Privacy that its ongoing investigation into Posts (Autorite de Regulation des and Electronic Communications the proposed merger of fixed line Communications Electroniques Directive once the new General Data incumbent BT and cellco EE meant et des Postes, Arcep) has issued Protection Regulation has been that there were ‘clear links between domestic cellco Orange France finalized. “A mandatory approach risks these two cases’ which meant it would with authorization to conduct trials unanticipated impacts on member be ‘more efficient’ for it to examine of ‘5G technologies’ in the city of states that result in excessive costs the O2 UK/Three merger, while also Belford until the end of 2016, as and will have implications for industry ensuring it avoids ‘duplication and part of Europe’s 5G Infrastructure as well ­– member states will seldom fragmentation’. A decision by the EC Public Private Partnership (5G-PPP) be in identical positions, meaning on whether or not to refer the case to program. The project will examine a need in some cases for costly the CMA must be made by 30 October ‘the conditions of use for millimeter- remediation of services. Furthermore, 2015. wave frequency bands between some of these differences arise from 6GHz and 100GHz for 5G’, which the physics of radio transmission in represent a key component in the different geographies of different achieving the performance objectives member states: the presence of hills, India government being set for 5G technologies. Arcep mountains, trees and rain all impact notifies spectrum authorized Orange to perform trials on radio transmissions at some in the following bands: 3600MHz- frequencies,” it said. sharing guidelines 3800MHz, 10500MHz-10625MHz and The department of telecommunications 17300MHz-17425MHz. (DoT) on Thursday notified the CMA asks EC to allow it spectrum sharing rules that were approved by the Cabinet on August 12 to review O2 UK/Three and will allow sharing of all spectrum UK merger available at present, and new bands Britain’s Competition and Markets which will be allocated in future. The Authority (CMA) has made a request guidelines issued by the government to the European Commission (EC) allow telecom companies to share to allow it to review the proposed even traded spectrum, where telecom acquisition of Telefonica Europe, owner companies can sell the right to use of O2 UK, by Three UK Hong Kong- spectrum to other company and later based parent company CK Hutchison share the same spectrum. “All access Holdings. As previously reported spectrum, including traded spectrum, by TeleGeography’s CommsUpdate, shall be sharable provided both following the confirmation earlier this licensees are having spectrum in the month that CK Hutchison had filed same band,” the guidelines issued by an application seeking approval of DoT said. The guidelines will not only its bid for O2 UK to the EC, the CMA help in effective use of airwaves, but revealed that it was seeking views on will also reduce call drops and cost of the proposed tie-up to determine operations of telcos besides improving whether it might substantially lessen quality of calls. The spectrum sharing competition in the country’s mobile is allowed only among two telecom sector. Now, the CMA has confirmed operators in the same frequency band that its initial view, following this within the same telecom circle. The consultation and preliminary analysis, guidelines have clarified that in the is that the transaction ‘threatens to case of telecom companies operators affect significantly competition in holding administratively allocated

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A snapshot of regulatory activities in samena region

Bahrain Algeria Chairman: Dr. Mohammed President: Mr. Toufik Bessai [Regulatory Authority for Post Al Amer [Telecommunication & Telecommunication (ARPT)] Regulatory Authority (TRA)] Algeria’s new Minister of Post, IT and Telecommunications Regulatory Authority Communications, Iman Houda Feraoun, (TRA) says that it is in receipt of a has revealed that there are no current substantial amount of complaints over the Regulatory plans to open up the capital of state- degradation of VOIP applications by the owned telecoms operator Algerie three public licensed mobile operators. As Updates Telecom (AT) to the public, as it is viewed a result, the regulator says that it has issued as ‘a strategic holding of the state’. The an Emergency Order to the three mobile official, however, pointed out that the operators. Following its investigation into listing of a 20% stake of AT’s wireless arm the matter, the TRA said that it believes Mobilis on the Algiers Stock Exchange is that the mobile operators have effectively still on the cards. Under the plan, which changed the terms and conditions of their is currently being under review, Mobilis service without the written approval of would be spun off in a separate company the regulator which is in turn a breach of before the initial public offering (IPO) their license conditions. The Authority’s takes place. In October 2013 it emerged General Director Mohamed Bubashait that the Council of State Holdings stated “In line with the Authority’s role and (Conseil des participations de l’Etat, responsibility in protecting consumers in CPE), the agency managing the Algerian the Kingdom of Bahrain, the Authority will government’s stake in business entities, be taking appropriate action to ensure was reportedly planning to sell the shares that the operators comply with the terms of ten nationalized companies, including and conditions of their license and obtain Mobilis, to the public. The government the Authority’s approval before embarking wanted to give a strong signal in favor on any change.” (October 26, 2015) cellular-news.com of boosting the stock market and the creation of a market capital by the IPO of Telecommunications Regulatory Authority a total of 40 state-owned companies by (TRA) has circulated on its website a public consultation entitled “Regulation on the end of 2015. (October 7, 2015) Agence Ecofin

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Roaming on Public Mobile Communications Networks”. such as TD-LTE. The 2300MHz and 2600MHz auctions The consultation introduces a significantly revamped are aimed at existing fixed telephony and internet International Roaming Regulation; the aim of which is providers, while the 3500MHz band is open to all to provide enhanced consumer protection safeguards applicants. Successful bidders must agree to open their notably by increasing tariff transparency insofar as new networks to competitors on a wholesale basis. this relates to international roaming. Significantly (October 21, 2015) telegeography.com international data roaming is now also within the scope of the regulation and more importantly for consumers, an automatic cut off limit is being proposed that would Jordan see data roaming services being switched off once a Chairman of the Board of Commissioners/ pre-determined financial limit is reached. TRA General CEO: Eng. Ghazi Al-Jobor [Telecommunication Regulatory Commission Director Mohamed Bubashait stated that “I am confident (TRC)] that these improvements should massively help reduce Orange Jordan will complete the roll-out of Fourth the element of “Bill Shock” which is a phenomenon Generation (4G) mobile service across the Kingdom that affects many travelers who are faced with high by the end of November, the company’s CEO, Jerome international roaming bills upon their return from their Henique, said. “We will focus on increasing connectivity travels.” Mr. Bubashait further added that “The revised across Jordan as part of our Essentials 2020 strategy for regulation draws on best practice from other leading the coming years,” Henique said at a press conference. jurisdictions. It is the first comprehensive regulation of Stressing that there is a significant room for growth this nature in the GCC region and this further enhances in the Jordanian market and that demand for telecom TRA’s reputation as the leading Telecommunications services is on the rise, he said Orange Jordan will focus Regulator in the Middle East.” (October 14, 2015) tra.org.bh on high-speed broadband amidst increased data usage in the Kingdom. Henique added that Jordan is one of the most rapidly growing markets in this regard, noting Bangladesh that 4G technology will drive demand. Orange Jordan Chairman: Sunil Kanti Bose launched its 4G service in May after signing a deal [Bangladesh Telecommunication Regulatory with China’s Huawei in March to build its 4G network Commission (BTRC)] and upgrade its second and third generation networks. State Minister for Foreign Affairs Shahriar Alam Under its Essentials 2020 strategy, the telecom operator complained in a Facebook post about the poor quality is allocating JD200 million for the enhancement of its service provided by Grameenphone, the country’s network infrastructure. In addition to Orange Jordan, largest mobile operator. According to The Independent telecom operators Zain Jordan and Umniah are also newspaper, the minister wrote: “What is the problem licensed to provide 4G services. with GP [Grameenphone]? Impossible to make calls. Call (October 29, 2015) ammannewsdaily.com drops. Couple of months ago they used to send apology SMS after call drop. No trace of that even; also very poor Batelco has reached out to potential buyers including network at Arani.” He said two years ago he asked them Emirates Telecommunications Group and Qatar’s look into it, but there has been no improvement. State Ooredoo QSC about a sale of its Jordanian mobile Minister for Post and Telecommunication Tarana Halim, operator, according to people with knowledge of the commenting on Alam’s post, said: “I have been repeatedly matter. The former Bahrain state monopoly, known as asking them [GP] to improve their service quality. I have Batelco has also approached other companies and also asked Telenor. It seems they are more interested private-equity firms about a possible sale of Umniah in making money than providing quality service.” Mobile Co., nearly a year after appointing Citigroup Inc. Grameenphone representative Talat Kamal told The as an adviser on the disposal, the people said, asking Independent that it is aware of the minister’s complaint not to be identified as the information is private. A and plans to take immediate action. The operator, 56 per sale of Umniah may fetch about $500 million to $600 cent owned by Norway’s Telenor, has nearly 54 million million, the people said, adding that there was no formal mobile connections and a 42 per cent market share. It agreement with any of the parties yet and talks may boosted its capex by 20 per cent to BDT15.2 billion ($191 still fall apart. Batelco was working with Citigroup to million) last year to fast-track its 3G rollout, which it said evaluate options for Umniah, people familiar with the covers all 64 districts. Its capex to sales ratio was 24.2 per matter said in November last year. The Bahrain operator cent in Q2, while its EBITDA margin was 53.9 per cent. bought 96 percent of Umniah for $415 million in 2006, Just 13 per cent of its customers had 3G connections at according to data compiled by Bloomberg. Umniah the end of Q3, according to GSMA Intelligence. had more than 3 million customers in Jordan and a (October 15, 2015) mobileworldlive.com market share of about 32 percent in 2014, according to its website. In Bahrain, Batelco competes with the local units of Kuwait’s Mobile Telecommunications Co. and Iran Saudi Telecom Co. Representatives for Batelco, Citigroup Chairman: Dr. Mohammad Ali Forghani and Etisalat declined to comment. Officials for Ooredoo [Communication Regulatory Authority (CRA)] didn’t respond to requests for comment. (October 21, 2015) bloomberg.com The Communications Regulatory Authority of Iran (CRA) has announced a new tender for fixed wireless The number of Jordanians accessing the Internet via broadband spectrum in the 2300MHz, 2600MHz and third and fourth generation technologies is consistently 3500MHz bands. The watchdog says the frequencies can on the rise, figures by the Telecommunications be used for time division duplexing (TDD) technologies Regulatory Commission (TRC) showed. By the end of

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June this year, the number of Internet users in Jordan and government organizations. The dynamic nature reached 6.2 million, compared to 5.7 million at the same and application of M2M services are set to reshape the time last year, according to the TRC Similarly on the way the world does business. Cost saving remains one rise, the number of Internet subscribers in the Kingdom of the primary drivers for businesses to adopt M2M reached 2.029 million at the end of June, compared solutions as it enables them to save time and money by with 1.7 million at the end of 2014. The commission’s optimizing business processes. Benefits of M2M include figures indicate that the number of mobile broadband enhanced energy efficiency, improving safety and subscribers, which is provided by third and fourth security, supporting faster and better decision-making, generation technologies, reached 1.7 million of total and even enabling whole new products, services, and subscribers, rising from 1.4 million mobile subscribers at business models. Zain ‘s M2M services are provided with the end of 2014. Of the total number of subscribers, the the support of the best experts in the field, who also number of ADSL users reached 223,435 at the end of benefit from Vodafone’s global M2M experience. M2M June, compared to 213,398 at the end of 2014. WiMax connects machines, devices, and appliances wirelessly to subscribers reached 114,133 at the end of the first half the Internet, transforming them into intelligent devices of this year, compared to 125,481 at the end of last year. that exchange real time information and open up a Fourth generation services are currently provided by Zain range of possibilities for how businesses run and grow. Jordan and Orange Jordan. They will soon be provided Through Zain ‘s M2M portal, the solutions enable real by Umniah as well. In terms of mobile users in Jordan, time monitoring of IoT/M2M traffic, including volume TRC figures showed that mobile penetration reached and advanced diagnostics, and also support fraud 152 per cent at the end of June, with some 12.3 million detection features and the ability to set traffic caps and active mobile subscriptions compared to 147 per cent issue various reports. Additionally, online ordering and at the end of last year, when total mobile subscriptions trouble ticketing functions that are facilitated by M2M reached 11.1 million. Recent figures by the Ministry of solutions can increase operational efficiency, and the Information and Communications Technology indicated APIs offered allow customers to integrate their back end that about 70 per cent of mobiles used in Jordan are systems and processes with M2M Platform to access its smartphones. Conversely, figures showed that the use of data and capabilities. Zain is also planning to conduct landlines in the country is declining, with subscriptions a series of industry-specific seminars in 2016 where dropping to 375,601 at the end of June, at a penetration corporate customers can learn more about IoT/M2M rate of 4.6 per cent compared to 5 per cent at the end of capabilities and their application into their businesses. 2014. (October 11, 2015) Jordantimes (October 26, 2015) zawya.com

Kuwait Lebanon Chairman and CEO: Salim Alozainah Chairman & CEO: Dr. Imad Hoballah [Communication and Information Technology [Telecommunication Regulatory Authority Regulatory Authority (CITRA)] (TRA)]

Zain announced the launch of Machine-To-Machine Lebanon’s State Shura Council has ordered the Prime (M2M) services on its ultrafast network to Enterprise Minister’s Tender Office to allow Egypt’s Orascom and Government sectors in Kuwait. The launch came Telecom Media & Technology (OTMT) to compete in as part of the expansion of Zain Group’s existing the tender for a contract to manage one of Lebanon’s Partner Market Agreement with Vodafone. The two state-owned mobile network operators, Alfa and announcement was made during a press conference Touch. OTMT – which currently manages Alfa – had that was recently held at Zain ‘s main headquarters and its initial offer rejected by the telecoms ministry which saw the attendance of Fahad Al Jassim, Zain Kuwait ‘s claimed that the Egyptian firm handed in documents Marketing Director, Waleed Al Khashti, Zain Kuwait ‘s on the deadline date (July 31) but too late (at 5pm, Corporate Communications and Relations Director, apparently after the tender office had shut at 4pm). The Alberto Hernandez, Global Head of Commercial and report says that the Council decision is mandatory as Partners Markets, Vodafone Machine to Machine, and all government departments and agencies must fully Bilal Agha, Zain Kuwait ‘s Corporate Marketing Senior comply with its verdicts. The ministry had reportedly Manager. The launch of M2M services is in line with Zain intended to announce the results of the tender this ‘s strategic vision to enrich the bundle of solutions and week, whilst a source told Lebanese paper the Daily services it offers to corporate customers, especially that Star that only two out of the six companies that bought M2M services are one of the telecom industry’s fastest the terms of the contracts – namely Orange Group of growing sectors in the region. Vodafone is a leading France and Touch’s current management company Zain global provider of M2M services and this partnership Group (Kuwait) – had submitted initial bid applications. represents a new and important milestone in Zain ‘s Although the source’s information was not confirmed, entry into the M2M sector. The two telecommunication under the tender rules there should be at least three companies have been working together for a number companies competing for the contracts, meaning that of years, and this development will allow Zain to OTMT’s application would be required to make the leverage Vodafone’s experience and benefit from the process truly competitive, regardless of the argument opportunities offered by the exponential growth in M2M over late entry. Vodafone Group of the UK bought tender sector, as the company developed a clear strategy to documents but later stated it would not be bidding for contribute to this growth as well as an extensive range of a contract, whilst the other firms picking up documents IoT(Internet of Things)/M2M products and services from were: Maxis (Malaysia), Turkcell (Turkey) and Detecon connectivity, managed connectivity and end-to-end (part of Germany’s Deutsche Telekom). The new mobile solutions, designed to provide services for businesses contracts are scheduled to start on January 1, 2016.

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(October 9, 2015) telegeography.com An unconfirmed report from Reuters says that O2 Czech Republic has Morocco Director General: M. Azdine El been granted rights to use spectrum in the 900MHz Mountassir Billah and 1800MHz bands covering the period 8 February [Agence Nationale de Reglementation des 2016 until 22 October 2024. According to the cellco, the Telecommunications (ANRT)] scope, rights and other conditions of the frequencies Telecom regulator National Agency of remain unchanged from its current allocation. It is Telecommunications Regulation ANRT has reportedly understood that the operator paid a total of CZK432 awarded five new telecoms concessions on October million (US$18.12 million) to extend its licensing rights. 22. The regulator granted three 10-year licenses for (October 12, 2015) Albawaba.com the provision of telecommunications satellite services using VSAT technology to Maroc Telecom (IAM), Cairo-based Orascom, which operates one of Lebanon’s Wana (Inwi) and the Green Development Corporation cellular networks, has filed a complaint to the Shura (SADV) for MAD19 million (US$1.92 million) each. In Council to protest the decision to disqualify the addition, the regulator granted two authorizations company from the upcoming tender bidding. “We raised for the establishment and operation of trunked radio this issue to the Shura Council in the hope that it revokes networks (3RP) to SADV and Cires Telecom, with the the decision of the Prime Minister’s Tender Office to two companies said to have paid MAD600,000 apiece. disqualify our company from participating in the tender The ANRT however did not award any licenses for the to operate one of Lebanon’s mobile networks,” said a provision of satellite telecommunications services source close to Alfa, Orascom’s branchthat currently using GMPCS technologies. In early March 2015 ANRT operates one of the networks. The Tender Office claimed announced that it would launch three tenders – for that Orascom failed to submit the bidding offer on time 3RP, GMPCS, and VSAT concessions – on March 16. The and for this reason the company was disqualified. But regulator invited all interested parties to submit their the source stressed that Alfa General Manager Marwan license bids by 7 May. (October 29, 2015) Agence Ecofin Hayek submitted the offer on July 1, the final deadline for submitting the tender. The Tender Office plans to National Telecommunications Regulatory Agency announce the names of the companies which applied for (ANRT) has amended the terms and conditions for the management of the cellular networks this Thursday number portability services in the country with Decision and disclose the names of the winners Friday. The source 04/15 of October 8, 2015, following a consultation with said that the Shura Council is supposed to pass its the country’s three operators. The updated legislation verdict Wednesday or Thursday at the most. The Tender is aiming to improve ‘the operational modalities’ of Office is obliged by law to accept the final verdict of the the number portability regime by reducing the time Shura Council. Hayek earlier told The Daily Star that his required to port a number, in addition to facilitating company was taken by surprise when the Tender Office the implementation of a centralized number portability disqualified Alfa from the list of firms that are eligible database, which should be operational by June 2017. to bid for operation of the network under the pretext Further, the watchdog said that it will award a contract for that the firm failed to submit its application before the the supply, installation and operation of the centralized deadline. But the Telecommunications Ministry dismissed database shortly. ANRT ordered the implementation the company’s claims of unfair treatment, adding that of mobile number portability (MNP) to be completed the firm had ample time to submit its request before by January 1, 2007, but granted operators extra time the deadline expired. “Alfa has been operating one of to set up the required systems after they complained the country’s cellular networks for many years and they of technical difficulties. At the end of April 2007 the should know by now that the offices of the ministry close regulator announced the commercial introduction of in the afternoon. Why did Alfa submit its request at 5 in fixed and mobile number portability; since May 31, 2007 the afternoon when the acceptance of the applications all operators are legally bound to port a customer’s expired at 4?” a source at the ministry told The Daily number on request. (October 15, 2015) telegeography.com Star. The source stressed that Telecommunications Minister Boutros Harb has no ulterior motives behind the disqualification of Alfa, adding that the minister Nepal always had good relations with the company. But the Chairman: Mr. Digambar Jha source at Alfa insisted that the company submitted the [Nepal Telecommunication Authority (NTR)] offer on the last day of the deadline. “The deadline was July 1 and we made our offer on that day. There is no reason to disqualify us from the tender,” the source said. Nepalese mobile operator Ncell has signed a deal to He added that the firm will accept any decision made improve its customer support systems using solutions by the Shura Council even if it was not in the company’s from network analytics and monitoring firm Polystar. favor. The sources said Orascom made a very good offer Polystar’s Network Insight and Customer Insight to the government to operate one of the networks. “Our products provide real-time intelligence on 2G and prices are very competitive. We are also very familiar 3G network and service performance which can be with the Lebanese market and we have been running the used by engineers and customer service agents. Ncell networks six years,” the source said. There are more than says the deal will boost operational performance and 4 million cellular subscribers in Lebanon but this ceiling improve customer experience. Ncell is majority owned can be raised if the market opened up to privatization, by TeliaSonera and is the larger of Nepal’s two mobile experts argue. The telecoms revenues, both land line operators, with around 12.5 million subscribers at the and cellular, are considered the second-greatest source end of June 2015. (October 14, 2015) telegeography.com of income to the treasury. (October 7, 2015) The Daily Star

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went unsold in last year’s spectrum auction, which was Pakistan the last 3G sale in Asia. The government at the last Chairman: Dr. Syed Ismail Shah [Pakistan Telecommunication Authority (PTA)] minute added a 10 per cent tax on spectrum assets obtained in the auction. In the current environment, with a high tax burden on operators and modest growth, Pakistan’s cellcos signed up 18.04 million 3G and 4G sources say operators are not interesting in paying out subscribers by end-September 2015 according to sector in another auction. Only second ranked Telenor is said to regulator the Pakistan Telecommunication Authority be profitable.(October 13, 2015) mobileworldlive.com (PTA). Telenor continues to lead in the 3G space, with 5.49 million users, closely followed by Mobilink, which Pakistan Telecommunication Authority today published represented 4.91 million 3G customers. Similarly, third- the results for its recently conducted Quality of Service placed Zong has kept just ahead of incumbent Ufone, Survey results for mobile operators’ 2G, 3G and 4G with 3.77 million 3G users compared to the latter’s 3.52 services. This is authority’s first QoS survey after the million. In the 4G sector, meanwhile, Zong retained its auction of 3G/4G spectrum. PTA said that results are lead over its sole rival Warid, having pulled ahead in based on Quality of Service survey that it conducted July 2015. At end-September 2015 Zong’s 4G user base in various cities across Pakistan during 2015. Mobilink totaled 201,564 – up from 105,128 three months earlier topped the charts for their 3G services with average – whilst Warid represented 156,827 LTE customers, download speeds of 4.04Mbps and average upload increasing from 106,211 at end-June 2015. speeds of 3.17Mbps on its network. Zong remained (October 22, 2015) telegeography.com second with average download speed of 3.66Mbps and average upload speed of 2.93Mbps across various cities Pakistan Telecommunication Authority, after mandatory of Pakistan. Telenor scored average download speeds of approvals from Azad Jammu & Kashmir along with 2.22 Mbps and average upload speeds of 1Mbps while Gilgit Baltistan Councils, today published Information Ufone’s average download speed stood at 1.27Mbps Memorandum for the spectrum auction of WLL (Wireless and average upload speeds of 1Mbps. Clearly the 10Mhz Local Loop) licenses for AJK and Gilgit Baltistan. PTA blocks of 3G spectrum helped Zong and Mobilink to offer said that it plans to auction spectrum in 1900MHz and better 3G speeds to consumers. There are currently two 3.5GHz bands for WLL licenses for all three telecom 4G operators in country and Zong topped the 4G speeds regions of AJK and GB. PTA is aiming to auction the with 9.4Mbps average download speed and 6.1Mbps of spectrum for WLL license by December 2015. If all average download speeds. Warid, the other 4G operator, offered spectrum gets sold then PTA is likely to generate managed to achieve 5.95Mbps of average download Rs. 90 million in total for 2×5 MHz in 1900MHz band and speeds and 2.9Mbps of average upload speeds for its two 30 MHz unpaired lots in 3.5GHz bands. PTA said that 4G LTE services. 2G services for all operators remained operators can submit their applications with processing with-in the defined threshold levels, except for couple of fee and sealed bids by November 20th, 2015. Then after instances. Overall 2G services remained above standard announcing pre-qualification of potential participants, and almost all operators were closely ranked for majority auction will be held on December 4th, 2015. IM said of 2G KPIs. that spectrum will be allotted to potential buyers at base • Moblink topped for network uptime with a total of price if overall demand of spectrum is lower or equal to 0.23% of downtime experienced on its network spectrum offered. In case the demand is greater than • Telenor topped for “Grade of Service” with 0.55% the spectrum offered, in either of the bands, PTA will • Telenor remained most accessible network with conduct an open outcry auction to assign the spectrum 99.56% accessibility rights. Both existing and new operators can take part in • Mobilink scored best for call connection time with auction. (October 15, 2015) propakistani.pk 5.04 seconds • Warid remained best for call completion ratio with China Mobile Pakistan (CMPak), which operates 99.54% under the Zong brand, complained to the Pakistan • Telenor’s End to End Call quality remained best with Telecommunication Authority (PTA) that interference in 3.78 MOS (Read below note for more info on this) the 1.8GHz band it acquired in the auction last year is • Ufone and Warid scored 100% for Inter System causing serious quality of service issues. Zong, Pakistan’s Handover of CS voice third largest operator with a 22 per cent market share, • Warid topped for end to end SMS delivery time with spent $210 million on 10MHz of the 4G spectrum, but 3.1 seconds the 1.8MHz frequency is also used by some versions of DECT 6.0 wireless phones, which causes interference in Note: Mean Opinion Score or MOS is matrix used to Zong’s 4G services, ProPakistan reported. The PTA has measure call quality. MOS scores ranges from 1 for worst banned the use of cordless phones operating at that quality to 5 for excellent quality of call. spectrum and has fined importers, but the issue remains (October 10, 2015) propakistani.pk a problem for Zong. A Zong representative said it has asked the regulator to either eliminate the interference Vimpelcom and Abu Dhabi Group, the parent companies caused by the DECT phones or allocate it a different 4G of cellcos Mobilink and Warid have agreed a merger frequency. The operator said it can’t offer quality 4G deal. According to the sources, the merger is intended service until the situation, which is impacting its ability to give Mobilink access to Warid’s 4G network and to attract new customers and revenue, is fixed. The PTA spectrum resources. Warid would continue to operate is unlikely to act quickly on the matter given that the independently, however, and the Abu Dhabi Group Minister for State for Telecom and IT recently hinted would retain a 20%-30% stake in the cellco. The sources at another round of 3G/4G spectrum auctions in the also claimed that Mobilink has already completed due coming months. One 10MHz block of 1.8GHz spectrum diligence and that a sale agreement will be signed by

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SAMENA TRENDS _ OCT 2015 SAMENA TRENDS _ OCT 2015 the end of the year. Mobilink is Pakistan’s largest cellco modulation. Ooredoo recently signed an agreement with by subscribers with 33.4 million users at end-June 2015, Netgear to launch a new range of LTE and LTE-A smart equating to a market share of 29.0%. Warid, meanwhile, devices in Qatar, and the 590Mbps result was achieved represented 8.5% of the market at that date with 9.8 on the Netgear Aircard AC810S mobile hotspot, which million users, but was one of just two providers with supports tri-band carrier aggregation (in Cat 11 mode permission to offer LTE services – the other being enabling speeds of up to 600Mbps). Plans are in place Chinese-owned Zong. (October 2, 2015) The Daily Times for Ooredoo to launch the device commercially in 2016. Coinciding with the speed test, Ooredoo announced the commercial launch of the LTE-A Cat 6 Netgear AirCard Qatar 790S Mobile Hotspot, which uses 802.11ac Wi-Fi and President: Mr. Mohammed bin Ali Al Mannai carrier aggregation (CA) technology to deliver download [Communications Regulatory Authority (CRA)] speeds of up to 300Mbps. Ooredoo Qatar adds in its press release that it now has more than 1,030 4G LTE The Communications Regulatory Authority (CRA) issued base station sites, and continues to add more every a comprehensive competition framework to clarify anti- month. In addition, it has completed the upgrade of 544 competitive behaviors in the communications sector and outdoor sites to LTE-A (‘4G+’) and upgraded 182 indoor associated assessments and actions that will be taken by sites to 4G and four indoor sites to 4G+, including malls, CRA if a service provider is found to have engaged in business centers, residential towers and hotels. anti-competitive behavior. The main components of the (October 20, 2015) telegeography.com framework, result of a transparent consultation process that engaged key stakeholders, are a Competition Policy, market assessment methodology, and a complaints Saudi Arabia Acting Governor: Eng. Habeeb K. Alshankiti process. “We developed this Policy to ensure that the [Communication & Information Technology market remains competitive and so that all stakeholders Commission (CITC)] understand that CRA will not hesitate to initiate investigations into anti-competitive behaviors that pose Saudi Arabia’s Capital Market Authority (CMA) challenges in the delivery of effective competition,” said suspended trading of Mobily’s shares on 11 October, Mohammed Ali Al-Mannai, President of CRA. “The Policy and then lifted the ban a day later. The suspension will be implemented in telecommunication and postal was regarding “a clarification from Mobily about the sectors as well as access to digital media, the areas preliminary decisions issued by the Committee for the under CRA’s direct jurisdiction. Furthermore, this Policy Resolution of Securities Disputes (CRSD) on the lawsuits will also ensure that consumers receive the benefits filed by some investors regarding compensation for the of thriving competition in the market,” he added. losses they suffered as a result of the financial statements Specifically, this Policy prohibits agreements that may released by the company,” CMA said in a statement. The prevent or substantially limit competition. Such actions CMA then said it had lifted the suspension when “Mobily include price fixing; sharing of markets and customers; announced that it received the first decisions issued by limiting or controlling investments; and agreements the CRSD regarding those lawsuits”. Mobily, part-owned for fixed and minimum resale price maintenance. The by Etisalat, said the CMA had rejected demands by some prohibition can apply to different types of behaviors shareholders for compensation over a sharp drop in the such as disclosing strategic information; or raising firm’s stock price. In June, the CMA suspended Mobily barriers which lead to anti-competitive foreclosures of shares following an investigation over accountancy other suppliers or buyers. Importantly, the Policy details discrepancies affecting its 2013 and 2014 financial the actions that CRA can take if a service provider is results, which eventually led to the departure of long- found to have infringed the prohibition on abuse of term CEO Khalid al Kaf. In August, shares resumed dominant positions or anti-competitive behavior. CRA trading on Riyadh’s bourse after the company reissued will ensure that remedies are sufficiently well targeted its financial results for 2014 and Q1 2015. Its restated and do not have adverse competitive effects; and 2014 loss grew to SAR 1.58 billion ($421.3 million) from that the implementation costs of the remedy do not SAR 913 million and the company saw its profits slashed outweigh its benefits. CRA may also respond to anti- over the entire period by a total of almost SAR 1.76 competitive behavior with remedial actions ranging billion. (October 14, 2015) mobileworldlive.com from enforcement of a specific behavior on the service providers involved in the alleged infringements of the Saudi Arabia’s market regulator has rejected demands competition aspects of the Telecommunications Law; or made by some shareholders in telecoms operator Mobily structural remedies depending on each case. CRA will for compensation for the steep drop in its stock price, continue to ensure that individuals, businesses, and the company said. Mobily’s announcement comes after government have access to a broad range of innovative the Capital Market Authority (CMA) earlier suspended and reasonably priced communications services. The the company’s shares pending its response to the CRA uses its full range of regulatory powers to ensure preliminary decisions of the regulator’s Committees that competition in the communications sector thrives for the Resolution of Securities Disputes. The CMA and consumer rights are protected. (October 21, 2015) cra.gov.qa did not say what these findings were, but Mobily said in a subsequent bourse filing that the committee had Ooredoo Qatar, Nokia Networks and Netgear have rejected investors’ demands for compensation for announced a 590Mbps speed test using LTE-Advanced losses suffered as a result of its financial statements. (LTE-A) Category 11 technology on Ooredoo’s network, Mobily, part-owned by Abu Dhabi-listed Etisalat, was which the partners claimed as a record for the Gulf once a favorite of retail and institutional investors Cooperation Council (GCC) region. The speed was as it posted record earnings year after year and paid achieved by aggregating 60MHz of spectrum across generous dividends, but the operator’s shares are down three bands and applying 256QAM higher order 63 percent since last November when it restated some

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of its previously announced profits. It subsequently 2016. Turkcell secured 4G-suitable frequencies in the made further adjustments to its earnings, eventually government multi-band spectrum auction held on restating 27 months of earnings to March 31, 2015, 26 August this year. The cellco paid EUR372.9 million which cut its total profits over the period by about 1.76 (US$424.0 million) for the ‘A3’ spectrum package. billion riyals ($470 million). Mobily said it was obliged to (October 13, 2015) telegeography.com publish its original results once approved by its board, in accordance with Saudi share listing rules. As such the committee had found no proof “of any violation Tunisia by Mobily of its statutory obligations”, its statement on President: Mr. Hassoumi Zitoune Sunday said. The company had attributed its problems [National Telecommunication Commission to the premature booking of revenues from wholesale (INTT)]

broadband leases and mobile promotional campaigns Ooredoo Tunisia and Tunisie Telecom (TT) have signed and said it had also made further changes to the way a radio access network (RAN) sharing agreement, the it accounts for some contracts and the depreciation first of its kind in Tunisia. Details of the agreement have of property and equipment. In May the CMA referred not been published, but representatives of the two a case of suspected insider trading at Mobily to public cellcos noted that the pact would drive down rollout prosecutors. The regulator’s investigation centered on a and maintenance costs, whilst expanding coverage suspicion that the company might have breached one and improving service quality. Nizar Bouguila, CEO of of its market listing rules and two articles of the Capital state-backed incumbent TT commented on the deal: Market Law, including provisions against insider trading. ‘It will allow us to accelerate the expansion of network “Mobily will announce any material developments to coverage, [provide] a better quality of service to our the company,” its statement on Sunday said in reference customers and [create] significant savings to meet the to the case brought by disgruntled investors and other challenges of investment in networks with very high lawsuits. (October 11, 2015) zawya.com bandwidth to meet the new uses of mobile internet.’ His counterpart at Ooredoo, Ken Campbell meanwhile Sri Lanka added that the pact would allow the cellco to ‘make D i r e c t o r G e n e r a l : M r . P. B . A b e y k o o n better use of its investments.’ (October 19, 2015) telegeography.com [Telecommunication Regulatory Commission ( T RC ) ] United Arab Emirates Sri Lanka’s largest mobile operator by subscribers Director General: H.E. Hamad Obaid Dialog Axiata has inked a deal with the country’s Al Mansoori Board of Investment (BOI), under which an additional [Telecommunication Regulatory Authority US$175 million will be invested in ICT infrastructure. The (TRA)] agreement encompasses expansion of Dialog’s third- The Telecommunications Regulatory Authority (TRA) generation and fourth-generation broadband services of the United Arab Emirates (UAE) has announced alongside development of its fiber-optic transmission that fixed network sharing is now active across the network, international telecommunications network country, allowing Etisalat and Du to share infrastructure and digital satellite television infrastructure. Dialog says and market their services in new locations previously it will also direct investments towards enhancing its only served by their rival. Du has confirmed that UAE digital services portfolio, including payment, commerce, residents looking to switch provider could be up and education and health initiatives. The development running on its network within seven days. The launch agreement will increase Dialog Axiata’s cumulative comes after some six years of negotiations between investment to US$1.96 billion, the highest among all the regulator and the two telcos. ‘It’s an excellent step Foreign Direct Investments (FDI) operating under the that we are giving the customer the opportunity to aegis of the BOI. Dialog’s Director/Group Chief Executive choose,’ The National quoted, deputy director general Dr. Hans Wijayasuriya commented: ‘As espoused in of the TRA, as saying. ‘The quality of service being our investment pledge, we will continue our thrust in offered will definitely change. Those who ignore it will supporting the vision of the government of Sri Lanka lose customers now that the other operator has the in accelerating the advancement of Sri Lanka’s digital same chance.’ The network sharing agreement does economy through the delivery of affordable and plural not yet, however, cover pay-TV services, meaning those available services of the highest quality.’ customers on multi-play packages which include TV are (October 22, 2015) telegeography.com unlikely to be switching their voice and internet provider as this would see them losing their bundled discount. It is expected that the deal will be expanded to include Turkey pay-TV services by end-2016. (October 22, 2015) telegeography.com Acting Chairman: Dr. Omer Fatih Sayan [Information & Communication Technologies The Telecommunications Regulatory Authority (TRA) of Authority (BTK)] the UAE says that revenues from the country’s telecoms sector rose 12.3% in 2014 to reach AED32.8 billion Tokyo-based NEC Corporation has been contracted to (US$8.9 billion), compared to AED29.2 billion in 2013. provide its iPASOLINK iX all-outdoor, ultra-compact The bulk of the total – AED25.5 billion – came from microwave radio systems to Turkcell of Turkey, ahead of mobile services, the regulator said, followed by internet the latter’s planned LTE launch. According to a vendor access with AED4.6 billion and fixed telephony at AED2.7 press release, the system will form part of the cellco’s 4G billion. Revenues from mobile services rose 16.9% in network infrastructure. In the same press release, Atac 2014, with the country home to almost 17 million cellular Tansug, fixed network director of Turkcell, confirmed subscribers at the end of last year. that the operator’s LTE network will launch on April 1, (October 6, 2015) telegeography.com

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REGULATORY ACTIVITIES BEYOND THE SAMENA REGION

Angola strategy. The regulator blocked the Minister of sale of a 68 per cent stake in Sofora Telecommunications and Telecomunicaciones, Telecom Argentina’s Information Technologies holding company, to Fintech, a deal worth Jose da Rocha has $960 million. AFTIC said Fintech had not announced that the nation’s three main demonstrated it had the “experience and telephony providers – cellcos Unitel and expertise” to run the fixed and mobile Movicel and fixed line incumbent Angola operator. In addition, said the regulator, Telecom – will soon be awarded universal it was found that “Fintech Telecom was concessions for a range of fixed and mobile incorporated in the State of Delaware on Regulatory services, as well as pay-TV. To enable the October 18, 2013, less than a month before expansion of mobile services, meanwhile, the Telecom Italia Group has accepted the Updates the official explained that ‘digital dividend’ offer to start the operation in question.” 4G spectrum would be made available to A deal was agreed between the two firms operators, noting: ‘What should happen towards the end of October. Another in the very near future is that we will no concern from the regulator, regarding longer have the transmission of television Telecom Argentina’s “social composition”, and radio [in] analogue form, and move to was that it would fall under the control digital form.’ The frequencies freed up by of an investment company. “For these the transition can then be used by mobile reasons, the Board considered that Fintech operators for wireless broadband services, is not in a position to operate and take enabling them to provide wider coverage control of the services and infrastructure and faster speeds, the Angop news of the company Telecom Argentina,” the a g e n c y q u o t e d t h e m i n i s t e r a s s a y i n g . regulator concluded. Telecom Italia, which (October 6, 2015) Angop News Agency had net debt of €27 billion at mid-year, issued a statement to reassure investors. It said Fintech planned to appeal the regulator’s decision. However, the Italian incumbent also laid out a contingency Argentina plan. If the sale of a 51 per cent stake in Telecoms regulator AFTIC Sofora to Fintech (an initial 17 per cent has blocked Telecom Italia’s already been sold to the investment firm) (TI) sale of a majority stake is not completed by April 2017, TI has two in Telecom Argentina to options. One option is to withdraw from investment firm Fintech – a blow for the agreement with Fintech and exercise a the Italian incumbent’s debt repayment six-month call option to purchase (either

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directly or through another part of the group) the 17 agree to move to another set of frequencies. Companies per cent stake. The second option is to pursue the that want to participate in the second stage of the sale (subject to regulatory approval) of its 51 per cent auction need to register their interest by 28 January controlling interest in Sofora to a third-party buyer, with 2016. (October 19, 2015) mobileworldlive.com a guarantee from Fintech of total proceeds to Telecom Italia of at least $630.6 million. If the proceeds of such a sale exceed the minimum guaranteed by Fintech, the Bahamas difference will be allocated between Telecom Italia and Locally-owned triple-play provider Cable Fintech according to an agreed formula. If Telecom Italia Bahamas Limited (CBL) has defeated is unable to complete the sale to a third party within a rival Virgin Mobile Bahamas to claim the further period of two and a half years, the agreement Bahamas’ second mobile license, paving with Fintech will be terminated, Fintech will pay Telecom the way for the operator to launch the nation’s first Italia $175 million and Telecom Italia will benefit from alternative mobile services to compete with incumbent a six-month call option to purchase (either directly or Bahamas Telecommunications Company (BTC). The through another part of the group company) the 17 per Cellular Liberalization Task Force (CLTF) announced cent minority stake in Sofora previously sold to Fintech. earlier this week that CBL had won the second phase Telecom Italia previously received certain guarantees of of the selection process, a spectrum auction overseen performance under the 2014 agreements with Fintech, by sector watchdog the Utilities Regulation and which are secured by the pledge of collateral with a Competition Authority (URCA), with a final bid of value of $600.6 million. (October 16, 2015) mobileworldlive.com BSD62.5 million (US$62.1 million). Under the terms of the license, CBL will now establish a new company (NewCo) to hold the license. NewCo will be 49%-owned Austria by CBL, which will retain full management and board Austria’s finance ministry hit back at control, whilst the remaining 51% will be owned by a a report which said the country was new holding to award the 15-year license by the end preparing to sell its 28 per cent stake of the year. Company (HoldingCo), shares in which will in Telekom Austria to America Movil, be sold to Bahamian investors. The CLTF expects in an the operator’s majority owner. The denial comes after interview with local newspaper Tribune 242 CBL’s VP of Austrian newspaper Kurier reported that the country’s marketing, David Burrows, stressed the importance of government was planning the sale to Carlos Slim’s the company’s existing infrastructure in completing the America Movil, which already owns just under 60 per ‘mammoth task’ of the government’s demanding rollout cent of the Austrian incumbent. According to Reuters, a schedule. Mr. Burrows added that CBL is optimistic about spokeswoman for the finance ministry said “there are no its ability to take on former monopoly holder BTC, saying such plans”, in response to the claims. “There is nothing that CBL is ‘well poised’ due its strong data network: ‘It’s in this.” It was initially reported that the Mexico-based more and more about data. That’s one of the things operator group “signaled an interest in a total takeover”, that stands out for CBL….Wherever you’re going, that including the 28 per cent of the operator held by state network we have in place will be able to deliver that owned OBIB, which is reportedly worth approximately data.’ Pan-Caribbean group Digicel was long considered €900 million on current market prices. The sale is seen the front runner for the new concession, but backed out as one of the “few possible sources of finance” for the in April 2015, during the early stages of the selection ministry to fill the country’s budget gap and would also process. No statement was given on the reason for its rid the problem of further capital increases at Telekom withdrawal, although the group had previously been Austria for “cash strapped ministers”, reported Kurier. critical of the ownership and rollout obligations of the The company last announced an anticipated €1 billion new concession. (October 21, 2015) telegeography.com capital increase in November 2014, with America Movil and OBIB pledging commitment. America Movil cemented majority control of Telekom Austria in July Belgium last year, and has indicated in the past it wants to ramp A long-running legal battle between up its interests in Europe. It also holds a stake in Dutch mobile providers in Belgium has been operator KPN. (October 19, 2015) mobileworldlive. settled, with former monopoly operator com The Federal Communications Commission (FCC) Proximus agreeing to pay EUR120 million disclosed what it is willing to pay TV stations for (US$136.3 million) to rivals Mobistar and BASE Company. acquiring their spectrum, which will be resold to mobile The case was launched in 2003, alleging that Proximus operators in its planned incentive auction. This is the first had abused its dominant position in the market in the stage in a process that will subsequently involve the US late 1990s and early 2000s by ‘applying tariffs from regulator re-auctioning the frequencies in early 2016 the past for mobile telecommunication services that to operators craving spectrum for mobile broadband. are differentiated between on-net and off-net voice The FCC is attempting to lure TV stations with bids as communications’. high as $900 million in New York City. Other leading US cities, including Los Angeles and Chicago, also carry big A statement from the firms says that the settlement bids. Bids tail off for more remote or rural locations. A agreement comes ‘without any harmful recognition and station in the Virgin Islands will fetch only $10 million, translates the willingness of the parties to put an end to for instance. The bids are expected to come down over litigation proceedings’. The deal will see BASE getting time, as the FCC uses a reverse auction to encourage TV EUR66 million from Proximus and Mobistar EUR54 stations to commit early to cashing in their frequencies. million. Proximus said earlier this year that it had made Station owners will now mull over whether they want no provisions to cover a payout as it maintained that to participate. The filing window opens on December there had been no wrongdoing. 1 and closes December 18. Releasing prices now gives broadcasters at least 60 days to consider the prices on (October 22, 2015) telegeography.com offer. The broadcasters also have a choice over the type of bid they make. The deadline for that choice is March The EU’s competition watchdog has opened a full 29, 2016. Either they choose to give up their license or investigation into the proposed acquisition of Belgian

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SAMENA TRENDS _ OCT 2015 SAMENA TRENDS _ OCT 2015 mobile operator BASE Company by domestic cable connectivity is of prime interest.” Bhutan is most likely TV and broadband provider Telenet, which is part of to have its third link to the internet by 2017. “At best, the Liberty Global group. A statement released by the physical connectivity works will take at least nine months European Commission (EC) said that its preliminary after the feasibility studies have been carried out and review of the deal had found that it could harm negotiations carried out with the Government of India competition in Belgium’s mobile sector, where BASE is and Royal Government of Bhutan,” Jigme Tenzing said. the smallest of the three network operators and Telenet Having a third link to the internet is expected to make is the largest MVNO. EU Competition Commissioner Bhutan a more attractive destination for IT investment. Margrethe Vestager commented: ‘We want to make sure “It will improve the reliability of international connectivity that consumers in Belgium do not suffer higher prices to Bhutan by providing an alternative exit route other and less choice as a result of this proposed takeover.’ than Siliguri which is currently the exit point of all our A decision on the tie-up is due by 18 February. Liberty international connections,” Jigme Tenzing said. “This announced in April this year that it had agreed a EUR1.3 will help attract other IT/ITES FDI businesses to Bhutan.” billion (US$1.4 billion) deal to buy BASE from KPN of Bhutan’s total international bandwidth is around 5.65 the Netherlands. BASE had around 21% of all mobile Gbps (giga bits per second), with both Bhutan Telecom subscribers in the country at the end of June, with 2.8 and Tashi InfoComm combined. million users, while Telenet claimed 953,700 mobile (October 6, 2015) kuenselonline.com users at the same date. (October 7, 2015) telegeography.com Bosnia and Herzegovina Benin Bosnia’s Communications Regulatory In a process with knock-on benefits for Agency (CRA) has published data for the the mobile broadband sector, ICT minister quarter ended June 30, 2015, revealing Etienne Kossi has announced that Digital that there were 3.407 million mobile Terrestrial Television (DTT) will be available subscribers in the country at that date, down marginally by the end of 2015. Kossi explained that December is from 3.418 million three months earlier. Mobile market the new deadline set by the Beninese government to leader BH Telecom retained its lead in the sector, begin the process of analogue-to-digital TV migration. accounting for 45.44% of the country’s mobile subscriber A national commission involving all stakeholders is total, up from 44.98% at end-March 2015, while second- coordinating the digital migration process in order placed Telekom Srpske (m:tel) saw its share of the pie to meet the new deadline. The former ICT Minister decline slightly, from 42.09% at 1Q15 to 40.97% three Jean Dansou enacted Benin’s law on analogue-to- months later. Third-placed HT Mostar remains some way digital broadcasting transition on 30 September 2014. behind, meanwhile, representing 13.06% of the nation’s Dansou had also declared in December 2014 that Benin mobile accesses at 30 June 2015, up from 12.68%. would meet the deadlines set by the International Rounding out the sector were the nation’s MVNOs, with Telecommunication Union (ITU) in partnership with the the longest-established of those – IZI Mobil – having African Telecommunications Union (ATU) regarding signed up approximately 15, 675 customers to claim digital switchover (June 2015 for UHF services and June a market share of 0.46%, up from 0.18% at end-March 2020 for VHF in certain countries), with the by-product 2015. Blicnet and Logosoft meanwhile accounted for of freeing up the ‘digital dividend’ 700MHz-800MHz just 0.06% and 0.01% of Bosnian mobile subscribers spectrum bands for 4G LTE mobile broadband networks, at end-June 2015, respectively. Broadband accesses in potentially from 2016. (October 2, 2015) Telecompaper Bosnia totaled 544,483 at the end of June 2015, barely changed from the 544,907 reported three months earlier by the CRA. xDSL remains the most popular technology Bhutan type, with almost 54% of customers (292,656) signed up Bhutan could have its third link to the to such a connection, though this was down by roughly internet by 2017. However, it is yet to be 1% from 295,483 at 1Q15. Cable broadband increased determined from where this link would be in popularity, with such accesses numbering 191,316 at established. One of the main reasons why the end of the reporting period, up 2.69% quarter-on- the country’s IT park was not able to attract any major quarter. (October 8, 2015) telegeography.com international IT companies was the lack of true redundant or back up link to the internet. Currently, while Bhutan does have two links to the internet through Gelephu and Botswana Phuentsholing, both links converge in Silliguri, which in The part-privatization of Botswana a way eliminate the redundancy aspect. If connectivity in Telecommunications Corporation Limited Silliguri is disrupted for whatever reasons, the possibility (BTCL) is set to be postponed once of both links becoming unavailable does exist. The again, with the country’s Public Accounts government has been attempting to establish a third link Committee (PAC) recommending that the current to the internet via Cox’s Bazaar in Bangladesh. Efforts deadline of December 2015 be pushed back. There have been ongoing for some years now. “Tender process have been unspecified ‘challenges’ to the sale process. is ongoing to recruit a consultant to carry out feasibility Earlier this year Botswana’s Minister of Transport and studies on how best to bring in a truly redundant Communications, Tshenolo Mabeo, said the delays international connectivity to Bhutan,” Department of in the planned initial public offering (IPO) in the fixed Information Technology and Telecom officiating director, line operator were due in part to problems with the Jigme Tenzing said. “The study will also look at bringing in transfer of infrastructure from BTCL to national networks connectivity through Cox’s Bazaar in Bangladesh through firm BoFiNet. Mabeo said that the original ‘Possession the north east states of India.” He added that feasibility and Use’ agreement, which was due to be signed in studies will be completed before June 2016. The study November 2014 ahead of the planned IPO the following will not only look at Coz Bazaar but other areas as well. month, was not ‘fit for purpose’. A new Possession “The consultant will study and find out other options, and Use document was eventually signed on 4 March if any,” Jigme Tenzing said. “However, Cox’s Bazaar 2015, transferring all BTCL infrastructure to state-owned

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BoFiNet, which was established in 2012 to take over the telecommunications investment, protect consumers and running of the country’s telecoms networks, with BTCL earn national revenue,’ a statement from the Council of acting purely as a service retailer. Having initially been Ministers read. The next stage will see the draft law sent planned for 2011, the sale first ran into problems in 2012, to the National Assembly for debate. before an IPO was cancelled in August 2014. The offer (October 12, 2015) The Cambodia Daily was then rescheduled for 7 November, but problems with the sale of shares to employees caused yet another postponement to end-December, but this date too was Canada missed. 44% of BTC’s shares will be available for purchase Bell Canada has been fined C$1.25 million by individual investors and Batswana companies, while after its employees were found to be 5% will be reserved for the telco’s employees through giving positive reviews for its own mobile an Employee Share Ownership Program (ESOP). The apps on app stores. Last November, a remaining 51% will be retained by the government. number of Bell employees were encouraged to post (October 13, 2015) News Agency BOPA positive reviews and ratings of the free MyBell Mobile app and Virgin My Account app on the iTunes App Store and the Google Play Store, without disclosing that they Brazil work for Bell. Bell acted quickly to have the reviews and The Board of Directors of Brazil’s ratings removed as soon as it became aware of the National Telecommunications Agency matter. Nevertheless, the Canadian Competition Bureau (ANATEL) has approved the bidding of determined that these reviews and ratings created the radio frequency bands with the aim of general impression that they were made by independent expanding the telecommunication services coverage in and impartial consumers and temporarily affected the the country. Lots will be available on a municipal level overall star rating for the apps. The apps allow Bell in order to encourage the participation of small and customers to manage their existing mobility accounts medium providers and it will be possible to pay in up directly from their mobile devices. Bell provided full, to ten installments with low interest rates. Lots will be timely and ongoing co-operation with the Bureau’s offered in the 1.800 MHz, 1.900 MHz and 2.500 MHz inquiry. In addition to the consent agreement, Bell has bands for mobile telephony, broadband and radio taxi indicated that it will sponsor and host a workshop to services. The winners will receive licenses for 15 years, promote, discuss and enhance Canadians’ trust in extendable for another 15. (October 23, 2015) telegeography.com the digital economy, including the integrity of online reviews. (October 22, 2015) cellular-news.com Bulgaria Telecoms regulator the Communications China Regulation Commission (CRC) has invited China’s Ministry of Commerce approved all interested parties to submit their Nokia’s proposed acquisition of French bids for participation in a tender for rival Alcatel-Lucent with conditions, frequencies in the 2500MHz-2690MHz spectrum band almost completing the 15.6 billion euro by October 29, 2015. According to Decision No. 477 ($17.6 billion) deal’s antitrust process. The ministry said (dated October 8, 2015), the regulator is planning to the Finnish telecom network equipment maker had award 14 2×5MHz paired blocks (frequency division agreed to meet certain terms by December 10, mainly duplex [FDD]) in the 2500MHz-2570MHz/2620MHz- relating to the use of wireless telecommunication 2690MHz band and ten 1×10MHz blocks (time division standards and patent licensing. The terms were imposed duplex [TD]) in the 2570MHz-2620MHz band. In April in keeping with China’s anti-monopoly regulation to 2013 the Bulgarian government announced that the ensure market competition isn’t harmed by the takeover, National Security Service (NPS) will start the release of it added in a statement on its website. As part of its frequencies in the 2500MHz-2690MHz band (occupied talks with China, Nokia in August agreed to create a by the military), for terrestrial systems capable of joint venture, Nokia Shanghai Bell, with China’s state- providing communications services. The CRC opened a owned Huaxin. “We look forward to maintaining our tender (with Decision No 489 of July 9, 2013) for five deep commitment to China and playing a key role in the 2×5MHz paired blocks and three 1×5MHz blocks in the country’s shift towards an innovation-driven economy,” band in July 2013. The licenses were to be issued for Nokia chief executive Rajeev Suri said in a statement on a ten year period, with operators required to establish Monday. Nokia and Alcatel still need formal approval and operate 3G and/or 4G networks covering 35% of from the French government, after which Nokia will the territory within two years from license award, going proceed with its all-share offer. The takeover is expected on to reach 55% coverage within five years. Citing a lack to close in the first half of 2016. of interest, however, the CRC cancelled the tender in (October 19, 2015) telecomengine.com August. (October 15, 2015) telegeography.com China’s State Council has unveiled plans to invest Cambodia CNY140 billion (US$22.0 billion) in expanding broadband The Council of Ministers has approved network infrastructure in underserved areas of the a new draft telecommunications law, country by 2020. Under the plans, 30 million households which is aimed at enhancing the would have their internet access improved, including regulation of the sector and improving some 50,000 villages currently without broadband service quality. The government has yet to officially access. The targets are the latest in a series of investment publish a copy of the new 114-article draft law, which plans announced this year to help drive China’s digital has been under development by the Ministry of Posts economy, after Premier Li Keqiang called for operators and Telecommunications Cambodia (MPTC) for a to lower prices and improve access speeds. In July this number of years. ‘The main purpose of the law is to year, a spokesperson for the Ministry of Industry and ensure the quality and effective use of infrastructure, Information Technology (MIIT) confirmed that China was networks and telecommunications services, encourage

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SAMENA TRENDS _ OCT 2015 SAMENA TRENDS _ OCT 2015 looking to invest CNY435 billion in improvements to everyday business could continue. Under EU data internet infrastructure by the end of the year – including protection law, companies cannot transfer EU citizens’ the deployment and evolution of 4G LTE networks. personal data to countries outside the EU deemed to (October 15, 2015) reuters.com have insufficient privacy safeguards, of which the United China Mobile, China Telecom and China Unicom agreed States is one. EU data protection authorities meeting in to transfer a combined 213.9 billion yuan (€29.5 billion) Brussels to assess the implications of the ruling said in worth of towers and related assets to their new tower- a statement that they would assess the impact of the sharing joint venture. The telcos formally agreed to judgment on other data transfer systems, such as binding establish the new company, originally named China corporate rules and model clauses between companies. Communications Facilities Services Corporation “If by the end of January 2016, no appropriate solution Limited but now called China Tower, in July 2014. It was is found with the U.S. authorities and depending on the formed with the aim of reducing duplication of towers assessment of the transfer tools by the Working Party, and related infrastructure. Ergo, China Tower will be EU data protection authorities are committed to take all responsible for the construction, maintenance and necessary and appropriate actions, which may include operation of towers and ancillary systems, such as power coordinated enforcement actions,” the watchdogs said and air conditioning, for base stations. In a regulatory in a statement. The Commission and the United States filing on Wednesday, China Mobile said it will transfer have been in talks for two years to reform Safe Harbour assets worth CNY116.4 billion to China Tower. In similar after former U.S. National Security Agency contractor filings, China Unicom and China Telecom said they will Edward Snowden revealed the existence of mass U.S. transfer assets worth CNY63.2 billion and CNY34.3 billion government surveillance programs. Talks have been respectively. All three operators will then lease assets hampered by the difficulty of extracting sufficient back from China Tower. The transactions are expected guarantees that U.S. authorities’ access to personal data to complete on 31 October, upon which China Mobile would be limited and proportionate. The regulators said will own 38% of China Tower, China Unicom will own in their statement the EU and the United States should 28.1%, and China Telecom will own 27.9%. Meanwhile negotiate an “intergovernmental agreement” providing China Reform Holdings – an entity controlled by the stronger privacy guarantees to EU citizens, including government’s State-owned Assets Supervision and oversight on government access to data and legal Administration Commission (SASAC) – will take a 6% redress mechanisms. Multinationals can set up internal stake. (October 15, 2015) totaltele.com privacy rules which have to be approved by regulators to transfer data to the United States, known as binding corporate rules. However, only about 70 companies Comoros currently use this system. Lawyers have said alternative The National Authority for Regulation data transfer systems could also be at risk to legal of ICT (ANRTIC) has awarded Comoros’ challenge since they do not provide stronger protection second telecoms license to Madagascan against U.S. government snooping than Safe Harbour operator Telecom Malagasy (Telma), did. “The good news is that the European data protection thus removing the long-held monopoly of incumbent authorities have agreed on a kind of grace period until Comores Telecom (ComTel). Announcing the concession the end of January,” said Monika Kuschewsky, a lawyer at winner on October 1, ANRTIC disclosed that Telma bid Covington & Burling. (October 19, 2015) telecomengine.com KMF7.010 billion (US$16 million) for the concession while its sole rival for the license, Mauritius Telecom, The European Commission has pushed back its offered just KMF3.931 billion. The license is valid for 15 deadline to rule on Liberty Global’s planned acquisition years and will allow Telma to provide fixed and mobile of Belgian mobile operator Base to March next year. (2G,3G,4G) services to the public upon full payment. The Commission’s competition arm has extended its Telma offers fixed and mobile services in Madagascar, provisional deadline to issue a decision in the case until while former Comorian monopoly ComTel launched the 3 March 2016, it announced on Wednesday. The move first GSM and ADSL networks in the country in October comes just two days after the Commission revealed it 2003 and April 2007, respectively – the operator has will conduct an in-depth investigation into the proposed since remained the sole provider of wireless and fixed deal on the grounds that it could damage competition services in Comoros. Applicants (or parent companies) in the market. At the time it set a deadline of 18 February for the concession on offer were required to have at least for a ruling, some 10 working days earlier than the new one million subscribers to their existing fixed or mobile date. It did not give a reason for the delay. Liberty services, and to be in possession of at least USD20 Global’s Belgian cable operation Telenet agreed to pay million in funding. Interested parties were required to €1.33 billion in cash for Base, currently owned by KPN, have registered their interest by May 18, 2015, and to in April. Telenet has a presence in the mobile market have submitted their bids by June 25, 2015. through a mobile virtual network operator (MVNO) deal, (October 5, 2015) Agence Ecofin but the addition of Base will give it its own network and a much stronger mobile business. Telenet had 895,000 MVNO customers at the end of last year, compared with European Union Base’s 3.3 million mobile subscribers. The move is in Companies could face action from line with a growing M&A trend in Europe and further European privacy regulators if the afield, as operators seek to buy the new capabilities they European Commission and United States need to become full service providers. While a number do not come up with a new system of similar deals have been approved by the European enabling them to shuffle data across the Atlantic in Commission in the past couple of years, albeit with three months, the regulators said. The highest EU court remedies attached, a change of personnel in Brussels last week struck down a system known as Safe Harbour appears to have brought with it a harder stance on used by over 4,000 firms to transfer personal data to the competition. New competition commissioner Margrethe United States, leaving companies without alternatives Vestager blocked Telenor and TeliaSonera’s plans to scrambling to put new legal measures in place to ensure merge in Denmark last month on the grounds that the

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market needs four mobile network operators to remain country; under the terms of the agreement, SFR agreed competitive. Vestager insists that all proposed deals to deploy a fiber-to-the-home (FTTH) network on will be assessed on their own merits, but the Denmark behalf of the two operators, with Bouygues Telecom decision has left other players involved in consolidation contributing financially to the operation. Following the – including Telenet and Base - facing an uncertain future. November 2014 acquisition of SFR by Numericable’s (October 7, 2015) totaltele.com parent company Altice Group, the new owner committed to maintain the fiber-optic agreements that SFR had reached with other operators prior to the France takeover. In regards to the agreement with Bouygues France’s Regulatory Authority ARCEP has Telecom, Numericable had committed ‘to connect the approved the applications of the country’s deployed horizontal network to the vertical network four existing mobile network operators of buildings’ within two years (for the network sharing (MNOs) to participate in the upcoming points that existed before the December 2010 deal) and 700MHz spectrum auction. The regulator said that the three months (for the ones installed after). Moreover, examination process concluded that the applications Numericable had committed to provide maintenance from Bouygues Telecom, Free Mobile, Orange France of the implemented infrastructure under transparent and Numericable-SFR were all eligible and satisfied and non-discriminatory conditions. Bouygues Telecom, the qualification criteria. As a result, the quartet is however, pointed out that the pace of connections authorized to participate in the 700MHz auction, which achieved by Numericable-SFR experienced a ‘significant will commence on November 16, 2015. The government slowdown’ since the November 2014 merger, which in is planning to free up 2×30MHz blocks of spectrum in turn raised concerns that Numericable could not achieve the 703MHz-733MHz/758MHz-788MHz bands between its objectives within the set deadlines, the regulator said. April 2016 and June 2019, thanks to improvements in For its part, Numericable is disputing the delay claims, digital terrestrial TV (DTT) compression standards, the with Numericable-SFR’s Deputy CEO Jerome Yomtov so-called ‘second digital dividend’. The 700MHz licenses as saying: ‘We respect the commitments, projects are will come with a base price of EUR416 million (US$454.7 underway and the production rate is accelerating.’ million) per 2×5MHz block, with no buyer allowed to (October 13, 2015) Les Echos purchase more than three blocks (2×15MHz). Further, bidders will not be allowed to exceed a cap of 2×30MHz of combined spectrum in the 700MHz, 800MHz and France will soon get a boost in internet speed as its 900MHz bands. (October 23, 2015) telegeography.com telecoms regulator ARCEP announced that it had received applications for the upcoming 4G mobile spectrum auction. The auction saw all four major mobile France’s 4G-friendly 700MHz spectrum auction will carriers in the country including Bouygues Telecom, take place on 16 November, according to the country’s Iliad, Orange, and Numericable-SFR submitting their telecoms regulator ARCEP. The regulator, which first application to participate in the event. Business Insider announced the auction in June, stuck to its timelines reported that the 4G spectrum auctioned is for the 700 after previously earmarking November to hold the megahertz airwaves which were previously reserved process, with the view of distributing licenses to winning for television broadcast. Mobile World Live detailed parties by the end of the year. All four of the country’s that there are six airwaves block of 2x5MHz to be domestic operators, including Bouygues Telecom, Free, auctioned and each mobile carriers are allowed to hold Orange, and SFR, submitted applications for inclusion only three blocks according to ARCEP’s guideline. An in the process last month, with the regulator set to announcement will be made by the French regulator in look at the proposals by the end of October. 700MHz October on which company will be allowed to enter the spectrum is being freed up in France by the country’s auction. The auction will be held in November this year television broadcasters, and ARCEP intends to raise at and the government is expecting to obtain a minimum least €2.5 billion from the sale. According to Les Echos, of 2.5 billion euros from the auction as each block of the process will take a few days to complete, and involve 4G spectrum will be auctioned at a starting value of 416 eight rounds of bidding a day. Six blocks of 2x25MHz are million euros according to Reuters. The low-frequency on offer, and a single operator will be unable to acquire spectrum is in high demand by the mobile carrier as it more than three in total. Operators will also be unable could speed up its network speed. The internet speed in to hold more than 2x30MHz of low frequency spectrum the country is getting slow due to an increase in the data in total, across the 700MHz, 800MHz and 900MHz bands traffic usage by the French as the mobile has become combined, according to guidelines set by the regulator part of everyday life. The auction is part of ARCEP’s in June, with the minimum bid for each block set at future planning where it is planning to ensure the French €416 million each. Orange’s European chief told Mobile city center will get 100 percent network coverage by the World Live earlier this month the upcoming 700MHz is end of 2027. The agency also said that the government a necessary step before consolidation can happen in the is planning to make sure 40 percent of the population market, with France still operating with four established to be able to enjoy the internet network by the end players. (October 14, 2015) mobileworldlive.com of 2020. This is not the first spectrum auction held by the French government as they had managed to raise France’s Competition Authority (Autorite de la 2.639 billion euros in December 2011. The money raised Concurrence) has opened ex-officio proceedings in through the auction of the 800 MHz airwaves spectrum. order to review whether domestic telecoms operator The government considered the spectrum airwaves as Numericable-SFR has complied with its commitments in the intangible asset and could help bring revenue to relation to a co-investment agreement with Bouygues the country. The French government is also planning to Telecom for the deployment of fiber-optic infrastructure. encourage investment in the communication industry In December 2010, SFR and Bouygues Telecom signed among the mobile carriers through this auction. The an agreement on the horizontal deployment of fiber- majority of the revenue raised from this auction will optics in certain very densely populated areas of the be diverted to the country’s defense budget. Earlier

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SAMENA TRENDS _ OCT 2015 SAMENA TRENDS _ OCT 2015 in June this year, Germany had done a similar process Despite the challenges, the report forecasts fast growth of auctioning its 700 MHz spectrum. The government in mobile broadband and smartphone usage. It predicts manages to raise 5.08 billion euros through the two that mobile broadband networks will support more than weeks intense bidding process. (October 6, 2015) vcpost.com two-thirds (69 percent) of all mobile connections across the Arab States of the Middle East and North Africa by 2020, up from just 34 percent at the end of 2014. Bouygues Telecom, Free Mobile, Orange and SFR have In terms of hard numbers, GSMA expects there to be all applied to take part in France’s upcoming spectrum 350 million 3G/4G mobile broadband connections in the auction, regulator ARCEP announced this week. In a region within the next five years. The report argues that statement on Tuesday, the watchdog said it will evaluate such growth is being driven by operator investments in the telcos’ submissions to ensure they satisfy its eligibility 3G and 4G networks and rising smartphone adoption. criteria. “Once this examination process is complete, Over the last four years, mobile operators across the around one month from now, ARCEP will publish a Arab States are said to have spent more than $40 billion list of the candidates that are eligible to participate in on capital investments, or approximately 18 percent of the frequency auctions,” ARCEP said. France has set total revenue. This investment has focused on improving a reserve price of €416 million per 2x5 MHz block of network coverage, increasing network capacity, 700-MHz spectrum, meaning that if all the frequencies and deploying 3G/4G mobile broadband networks. are sold, the government will raise at least €2.5 billion. According to the report, 3G networks are now live in In June, Germany became the first major economy in every country in the region except one, while there are Western Europe to auction 700-MHz spectrum, selling 23 live 4G networks in ten countries in the region and 4G 2x30 MHz and raising just over €1 billion. It was sold launches planned in a further eight markets. Meanwhile along with frequencies in the 900 MHz, 1500 MHz and the number of smartphone connections in the region 1800 MHz bands, and the process raised €5.1 billion is forecast to almost triple between 2014 and 2020, overall. France’s 700-MHz auction is due to kick off in reaching 327 million (around two-thirds of the total November. Licenses will carry coverage obligations connection base). (October 20, 2015) telecomreview.com requiring winners to provide services in rural areas and along 29,000 km of railway lines. (October 1, 2015) totaltele.com Kyrgyzstan Regulatory Authority ARCEP has issued domestic cellco Telecom Regulator National Orange France with authorization to conduct trials of Communications Agency (NCA) has ‘5G technologies’ in the city of Belford until the end pushed back the deadline for SIM card of 2016, as part of Europe’s 5G Infrastructure Public registration to February 1, 2016, citing Private Partnership (5G-PPP) program. The project will requests from inhabitants of remote areas who claim to examine ‘the conditions of use for millimeter-wave be unable to easily access the service centers of mobile frequency bands between 6GHz and 100GHz for 5G’, operators to complete the registration procedure. The which represent a key component in achieving the NCA reported that 1,082,601 of the country’s wireless performance objectives being set for 5G technologies. subscribers (which totaled nearly eight million at the ARCEP authorized Orange to perform trials in the same date) were still unregistered as of September 30, following bands: 3600MHz-3800MHz, 10500MHz- 2015, one day ahead of the previously set deadline. 10625MHz and 17300MHz-17425MHz. Compulsory SIM registration was introduced under government decree No. 97 ‘On approval of rules for the (October 1, 2015) telegeography.com provision of mobile telecommunication services’, which entered into force on March 8, 2014; SIM card holders GSMA were expected to register their details within a year – A new report from the GSMA reveals i.e. by March 8, 2015 – or face disconnection. Due to the diverse mobile landscape across the the cellco’s collective failure to meet the deadline, the Arab States of the Middle East and North timeframe was subsequently extended to August 8, then Africa, a region where some markets October 1, 2015. (October 1, 2015) telegeography.com enjoy penetration rates above 75 percent while others lag behind with fewer than half the population having Lithuania a mobile subscription. Bahrain, Kuwait and the UAE are Communications Regulatory Authority highly advanced Gulf States, but penetration rates fall (RRT) has approved the procedure and below 50 percent in Palestine, Sudan, Syria and Yemen. conditions for its planned auction of Indeed, subscriber growth across the 18 Arab State spectrum in the 880MHz-915MHz and markets examined in the report - Algeria, Bahrain, Egypt, 925MHz-960MHz paired frequency ranges, as well as Iraq, Jordan, Kuwait, Lebanon, Libya, Morocco, Oman, the 1710MHz-1785MHz and 1805MHz-1880MHz paired Palestine, Qatar, Saudi Arabia, Sudan, Syria, Tunisia, bands. Following the conclusion of a consultation with United Arab Emirates, Yemen - is expected to be slower the public and industry stakeholders, the regulator has than the global average between now and 2020, with set a starting price of EUR10 million (US$11.3 million) subscriber penetration hitting 57 percent (233 million for each block of spectrum, which will go under the subscribers) by the end of this decade, behind a global hammer on January 6, 2016. The country’s three existing figure of 59 percent. The report, ‘The Mobile Economy - mobile network operators (MNOs) Omnitel, Tele2 and Arab States 2015’, attributes this to several factors: “the Bite Lithuania have the right to use the frequencies for declining growth potential in already highly penetrated wireless telephony and data services until October 31, markets; the challenge of growing penetration in the 2017, and the new licenses will be valid from November lower income and rural-based groups in less developed 1, 2017 to October 31, 2032. (October 20, 2015) telegeography.com markets; and the unstable political and economic conditions that currently exist in several regional markets.” The number of unique mobile subscribers in the Arab States as a whole reached 199 million at the end of 2014, equivalent to 54 percent of the region’s population.

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Once Telmex is formally notified of the decision, the Malawi company has 20 days to present a new plan, the Federal The Malawi Communications Regulatory Telecommunications Institute (IFT) said in a statement. Authority (MACRA) has formally issued Since declaring America Movil dominant last year, the a ten-year public telecoms services IFT has been introducing stricter measures designed to license to Lacell Private Limited. Nyasa boost access to a sector seen as less competitive than Times quotes the head of the MACRA, Godfrey Itaye, Mexico’s peers. America Movil operates around 70 as saying that the licensing of a new mobile operator percent of Mexico’s mobile and fixed lines. will increase competition, leading to lower prices and improved service quality. Lacell chairperson, Farook (October 13, 2015) telecomengine.com Satar, said the company will deliver high quality services and will provide coverage to rural parts of the country. Two of Mexico’s fixed-line telecoms operators detailed Lacell will compete with established cellcos Airtel a merger agreement that will enable them to compete Malawi and Telekom Networks Malawi (TNM), which more effectively in the market. Conglomerate Alfa has claimed subscriber bases of 3.39 million and 2.63 million, inked a deal that will see it combine its Alestra business respectively, at the end of June 2015. Lacell and another services operator with fixed-line telco Axtel. Axtel will company, Expresso Telecom Group, were selected as remain as an operating and publicly-traded holding the winning bidders of two mobile concessions in April company, Alfa said. It will issue new shares to be held by 2009, but following legal concerns that the MACRA had Alfa, giving it around 51% ownership of the combined issued a pair of licenses but had only advertised one for company. The value of the deal was not disclosed. sale, the government cancelled the process in October Together the two operators generate annual revenues of 2009. A new international tender was subsequently 11 billion pesos (€584 million) from enterprise customers launched by the regulator in February 2010, and an and MXN4 billion from the consumer market. They operating concession was eventually awarded to Celcom have 37,500 km of backbone, metro and fiber network Limited in May 2011. However, Celcom has not launched infrastructure and 6,000 square meters of data centre commercial services, having repeatedly failed to meet its space. However, the pair has a long way to go before rollout obligations, and earlier this year MACRA moved they will be able to seriously challenge dominant player to revoke the locally-owned firm’s concession. Telmex, owned by America Movil. According to the latest (October 7, 2015) telegeography.com data from regulator IFT, America Movil had a 62.5% share of Mexico’s 20.9 million fixed lines at the end of the first quarter of 2015, while Axtel’s market share came Malaysia in at just 3.9% and Alestra formed part of the ‘others’ The Malaysian Communications and category that made up 1.4% of the market. As such, the Multimedia Commission (MCMC) is merged entity will remain more than ten times smaller targeting broadband access for 95% of than the incumbent. “The merger between Alestra Malaysians by 2020, with plans to offer and Axtel enhances their competitive advantages and speeds of up to 100Mbps to at least 50% of urban areas positions the company to continue to meet the growing and 20% of rural locations. Additionally the government demands of the Mexican telecom and IT markets,” said is reportedly seeking to offer cheaper broadband Alfa president Alvaro Fernandez Garza, in a statement. tariffs to consumers, with the majority of Malaysians He will become co-chairman of the board of the new currently subscribed to entry-level broadband plans. entity, alongside Axtel chairman and CEO Tomas Milmo ‘We may consider changing the entry-level package to Santos. Rolando Zubiran, who currently serves as chief a higher speed without any substantial increase in cost executive of Alestra, will take on the role of CEO of to maintain affordability and at the same time offer a the merged entity, while Axtel CFO Felipe Canales will higher speed,’ commented MCMC Minister Datuk Seri become finance chief. The deal is subject to various Dr. Salleh Said Keruak, adding: ‘I have asked my ministry closing conditions, including regulatory approvals. The to put special emphasis and to focus on infrastructure firms expect it to close by the end of this year or in early development to expand the internet penetration and 2016. (October 2, 2015) totaltele.com coverage to all parts of Malaysia … My ministry is now looking into the details.’ As at end-June 2015 Malaysia had 2.906 million broadband subscriptions, representing Myanmar a household penetration rate of 42.4%, with Telekom Myanmar’s Ayeyardwady Bank (AYA Bank) Malaysia having 78.7% of the market share in terms of has contracted systems integrator NEX4 subscribers and offering coverage to approximately 70% ICT Solutions to overhaul the financial of households. (October 19, 2015) Bernama News service provider’s IT infrastructure. The deployment includes using VMware products to virtualize AYA bank’s data center and networking infrastructure to Mexico enable agility, flexibility and scalability, with the aim to Mexican telecoms regulator IFT said better serve Myanmar’s growing digital economy. Since earlier this week that it will force Telmex its formation in 2011, AYA Bank has always prioritized its to offer competitors better terms as it customers, with a strong belief in technology’s role in seeks to open up its local network, part of ensuring long term sustainable growth, service delivery an effort to increase competition in a sector dominated for its customers and community at large. Technology by billionaire Carlos Slim. The move will require Telmex, has been recognized as an enabler for businesses to owned by Slim’s America Movil, to modify the terms innovate and be more productive particularly in today’s and conditions under which it will let other companies digital age. The opening of Myanmar’s economy has use part of its vast fixed line infrastructure. The so- given rise to increased digitization of its economy, with called “last mile” connects competitors using Telmex’s mobile subscriptions expected to reach 38.5 million fixed line infrastructure with their end-user customers. by end of 2019. With smartphones and connectivity,

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SAMENA TRENDS _ OCT 2015 SAMENA TRENDS _ OCT 2015 speed and way of communicating and transacting like e-payment and mobile banking, are now possible. Nigeria From banking, trading to payment services, AYA Bank’s The Nigerian Communications employees across the country create and manage high Commission (NCC) has abolished the amounts of data ranging from customer information, minimum data price for all operators, in financial records and more daily. With increasing growth order to ensure the ‘sustainability, growth in business, AYA Bank needed the ability to provision the and development’ of the data service market. In a public necessary support to manage the rising data volumes at notice published on its website, however, the watchdog a cost-effective and efficient manner. “To better serve our warned that it would restore the data floor price if any customers in today’s digital age, we are glad to partner distortion is observed within the market segment. Earlier with VMware in enhancing our ability to provide faster this month the NCC also permitted ‘small operators’ – and more reliable services across our 124 branch offices classed as an existing service provider or new entrant in Myanmar. In a highly competitive industry where with a subscriber market share of less than 7.5% – and prompt and good customer service is critical, we saw IT non-profit organizations to set their voice and data as the driver in supporting our business, enhancing our tariffs below the industry’s retail floor price. The regulator customer service delivery, business productivity while imposed a retail floor price on the telecoms sector in ensuring security,” Phyo Aung, MD, AYA Bank. May 2013, as a means of controlling anti-competitive behavior by operators deemed as having a dominant (October 26, 2015) telecomasia.net position within the market. (October 28, 2015) telegeography.com

New Zealand MTN Nigeria has been fined US$5.2 billion by Nigeria’s The government of New Zealand Communications Commission (NCC). The report revealed has upped its target for nationwide that MTN was fined for non-compliance with a deadline broadband coverage, saying 99% of set out by the NCC to disconnect all non-registered SIM the population should have access to cards. The move follows accusations by mobile phone a connection offering speeds of at least 50Mbps by users that the regulator had failed to bring operators 2025, with the remaining 1% able to get speeds of at to account for poor services to subscribers, the report least 10Mbps. Under its previous plan, 97.8% of the revealed. According to the report, MTN Nigeria said it population was being targeted with a minimum 5Mbps was studying the letter sent to it by the regulator and line. The government-backed Rural Broadband Initiative will respond as soon as possible. A senior official of the (RBI) and Ultra Fast Broadband (UFB) schemes are company said it was in talks with the regulator over the seeing operators deploy high speed wireless and fiber fine and hoped to resolve the matter. The report further networks, with UFB concentrating on urban areas and revealed that some Nigerians said that they wanted the RBI targeting more outlying regions. Communications regulator to address poor network signals provided by Minister Amy Adams says: ‘our use of, and reliance on, telecoms companies in the country. Additionally, they technology and broadband connectivity are increasing want more sanctions on firms to encourage them to rapidly. It’s vital that we set aspirational targets to ensure improve signals and the quality of service in the country. we keep up with this pace of change. This is about Statistics from the NCC indicates that Nigeria, a country setting a vision of where we want New Zealand to be in with estimated population of more than 170 million, ten years.’ She added: ‘We want to see all Kiwis, whether has close to 150 million mobile phones. According to urban or rural, with access to the economic and social timeslive.co.za, shares in MTN extended their losses opportunities high-speed connectivity brings.’ to more than 10 percent and traded down 9.3 percent (October 8, 2015) telegeography.com lower at 173 rand by 1236 GMT (14:36 SA time). (October 26, 2015) itnewsafrica.com Niger Niger is set to merge national state- The Nigerian Communications Commission (NCC) said owned telecoms operator Societe it has withdrawn the “data floor price’’ for operators Nigerienne des Telecommunications in the telecommunications industry. “Floor price’’ is a (Sonitel) and its mobile arm SahelCom, government or group-imposed price control or the limit in a bid to combat rising competition from the likes a price can be charged for a product to check unhealthy of international giants Bharti Airtel and Orange Group. rivalry among players. In a statement in Lagos, the Reuters cites Telecommunications Minister Abdou Mani commission said that the withdrawal was in a bid to as saying that the merger aims to streamline the two ensure sustainability, growth and development of the companies’ technical and financial resources. He added data service market segment. “However, the commission that the government, which has invested XAF85 billion will restore the floor price if any distortion is observed (US$147 million) in Sonitel since 2012, will complete the within the market segment,’’ it said. NAN reports that deployment of the company’s fiber-optic network and with the withdrawal of the price, telecommunications other new technologies to encourage privatization of industry now has the permission of NCC to charge the combined national carrier. In December 2001 a 51% subscribers lower than the set lowest industry prices. stake in Sonitel was sold by the government to Dataport, The regulatory body had in May 2013 imposed a price a joint venture between Libyan Arab African Investment floor on telecommunications operators in the country Company and China’s ZTE. In February 2009, however, as a means of controlling anti-competitive behaviors the government said it was renationalizing the stake by operators considered to have attained the dominant held by Dataport, allegedly due to poor management status in the industry. Such anti-competitive behaviors and failure to meet the terms of the privatization include charging calls within their networks much lower agreement. In May 2011 – two months after a deal to sell than what they charged for calls terminating on other a stake in the company to Libya’s LAP Green Network networks. With this, the operators might just be setting was cancelled – Niger began looking for a new buyer up calling clubs – a practice where subscribers just call for Sonitel, but in April 2012 parliament voted to keep those within the network of their own service providers. Sonitel in government hands. (October 19, 2015) reuters.com (October 26, 2015) vanguardngr.com

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the coming days. The country’s four operators were vying Norway for 4G spectrum, including Orange, Deutsche Telekom, Norwegian telecoms regulator the Polkomtel’s Plus and Play (P4). Early reports suggest P4, National Communications Authority which was recently put up for sale by its Greek owners (Nkom) has published the final conditions Olympia Development, has won one 800MHz block and for the upcoming auction for technology- four blocks of 2.6GHz frequencies. P4 and Plus already neutral authorizations in the 900MHz frequency band, have access to some 4G frequencies, giving them a following a public consultation in June 2015. The head start on rivals Orange and Deutsche Telekom. Up regulator is aiming to sell two blocks of 20MHz spectrum for grabs in the auction was five 800MHz blocks, as (divided in four blocks of 2×5MHz) in the 880MHz- well as 14 blocks of 2.6GHz, with each bidder restricted 915MHz/925MHz-960MHz bands in a multi-round open to no more than two 800MHz blocks and four blocks auction in the summer of 2016, with a minimum set of 2.6GHz. The conclusion of the lengthy process will price of NOK140 million (US$18.27 million) per block. indeed come as a relief to UKE, after its head Magdalena The 15-year concessions will offer nationwide coverage Gaj questioned whether the “market is serious about (excluding the Norwegian dependencies of Jan Mayen buying frequencies” following more than 400 rounds of and Svalbard, and other territories with special status). bidding in September. As prices continued to hike up, The spectrum will become available from January way past the PLN1.6 billion originally set by regulators, 1,2018, with the frequencies to be freed up as a result of the government intervened and proposed a deadline the expiry of licenses held by NetCom (TeliaSonera) and to end the process after 115 auction days, which was Telenor Norge. (October 20, 2015) telegeography.com approved last month. The proposal was however met with staunch opposition. The country’s operators, mainly P4 and Plus, argued against a change in rules mid-way Paraguay through the process, with the former threatening legal The National Telecommunications Council action. Under Polish law, when the auction started the (Consejo Nacional de Telecomunicaciones, process could only end once bidding ceased. According Conatel) has released the final bidding to analysts, the high auction price could impact the terms and conditions for the country’s price for phone services for users, as well as weigh on planned 2100MHz/1700MHz AWS spectrum auction, profitability for the operators. Market leader Orange which will allow participating cellcos to introduce 4G LTE Polska was also seen as most under pressure to secure technology. Twelve paired 2×5MHz sub-bands will be the spectrum. (October 16, 2015) mobileworldlive.com made available, while the maximum spectrum allowance each carrier can be assigned has been set at 30MHz. The minimum bidding price for a sub-band has been set at Country’s fourth largest mobile operator P4, which USD15 million. Interested parties have until 3 December trades under the ‘Play’ brand, is to be put up for sale to file applications for the tender, with the bids due to next year by its current owners, investment funds opened later that same day. (October 16, 2015) telegeography.com Tollerton and Novator. The deal could be valued at up to PLN7.5 billion (US$2 billion), and is expected to take place by mid-2016. Greece-based Tollerton, which Poland is itself a subsidiary of Olympia Development, holds Poland’s Office of Electronic 50.3% of P4, while Icelandic firm Novator controls the Communications (UKE) has released the remaining 49.7% stake. Sources are suggesting that full results of the 4G spectrum auction European operators such as Telenor or TeliaSonera could which ended last week, with Orange see P4 as a platform to enter the Polish market, while the Polska emerging as the highest bidder. It paid a total cellco has in the past been linked as a possible target for of PLN3.17 billion (USD859 million) for two 5MHz domestic fixed line operator Netia. P4’s owners recently blocks of paired frequencies in the 800MHz band and threatened legal action against the government should three blocks of 2×5MHz at 2600MHz. The three other the ongoing sale of 4G wireless spectrum be brought to 800MHz packets on offer were won by new entrant an early conclusion; P4 is one of six companies bidding NetNet (PLN2.05 billion), plus existing cellcos T-Mobile for 4G frequencies in the 800MHz and 2600MHz bands. Poland (PLN2.02 billion) and P4/Play (PLN1.50 billion). (October 7, 2015) reuters.com The other incumbent mobile operator, Polkomtel, had already pulled out of the 800MHz bidding, saying it would be better if operators collaborated on the rollout Romania of one or perhaps two nationwide 4G LTE networks to Orange, Vodafone and quad-player RCS avoid duplicating infrastructure, but it did pay a total & RDS were among the biggest spenders of PLN155.8 million for four 2×5MHz blocks in the in Romania’s re-auction of 3.4 GHz and 2600MHz band. The remaining tranches of 2600MHz 3.8 GHz licenses, which concluded this spectrum were won by T-Mobile (PLN115.8 million for week, raising €10.1 million. 2K Telecom and state- three blocks) and P4 (PLN222.4 million for four blocks). owned broadcaster Radiocom also picked up spectrum Orange was the only one of the incumbent operators during the auction, which raised less than the Romanian without any 800MHz/2600MHz 4G spectrum prior to the National Authority for Management and Regulation in sale (although it offers LTE via 1800MHz spectrum), so Communications (ANCOM) had in mind. Orange spent had always been expected to be the highest bidder. A the most, bidding €3.9 million for five 2x5 MHz blocks sixth company, Hubb Investments, pre-qualified for the of 3.4 GHz spectrum and nine unpaired 5 MHz blocks auction when it began back in February, but failed to of 3.8 GHz spectrum. RCS & RDS snapped up 10 lots participate in the bidding. (October 20, 2015) telegeography.com of 3.8 GHz spectrum for €1.9 million, while Vodafone won four blocks of 3.4 GHz spectrum for €1.7 million. Radiocom lodged bids totaling €1.9 million and was Poland’s long-running 4G auction finally came to an end, awarded 10 blocks of 3.8 GHz frequencies, while 2K raising PLN9.23 billion ($2.5 billion) in bids, six times the Telecom won a more modest two blocks of paired 3.4 initial target set by regulator UKE. UKE will reveal the final GHz spectrum for €740,100. “The license fees, reaching results of the auction, which began back in February, in

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SAMENA TRENDS _ OCT 2015 SAMENA TRENDS _ OCT 2015 a total of €10,124,101, are to be paid by 2 December despite the trio deploying teams across the country to 2015, and the new rights of use of the radio spectrum help complete the process. (October 13, 2015) telegeography.com will enter into force on January 1, 2016, for a 10-year period,” said ANCOM, in a statement on Tuesday. The sum raised is below the €12.8 million reserve proposed The incumbent fixed and mobile operator Sonatel has by ANCOM in July because some frequencies were left received an official warning from industry watchdog on the shelf. 255 MHz of spectrum was assigned in total, ARTP over a string of network outages that caused comprised of 11 lots of 2x5 MHz blocks of spectrum in major service disruptions last month. On 30 September the 3.4 GHz-3.6 GHz band, and 29 lots of unpaired 5 ARTP rapped the telco over repeated network failures on MHz blocks of spectrum in the 3.6 GHz-3.8 GHz band. September 15, 18 and 26. Sonatel, which is 51%-owned Five lots of paired spectrum and seven lots of unpaired by Orange Group, experienced signal failures across its mobile system that prompted a wave of complaints from spectrum did not attract bidders. (October 28, 2015) totaltele.com customers. ARTP has officially reminded the operator of its contractual obligations under Articles 7, 26 and 139 After analyzing the initial offers submitted by the five of Law No. 2011-01 of February 24, 2011 relating to applicants in the tender for wireless broadband licenses Senegal’s telecommunications code, which includes the in the 3410MHz-3600MHz and 3600MHz-3800MHz obligation to ensure continuity of operation of networks spectrum bands, Romanian regulator the National and services ‘operating continuously, round the clock, Authority for Management & Regulations (ANCOM) has including weekends and holidays’. Sonatel could face decided that each operator will be awarded their initial fines if it fails to redress the problems on its network. requested number of blocks, as demand did not exceed (October 2, 2015) telegeography.com supply. This week ANCOM is holding additional bidding rounds for the remainder of the frequencies up for grabs, whilst applicants may also bid for their preferred Taiwan bandwidth allocations. The five provisional licensees A row is brewing in Singapore over are: Vodafone Romania, Orange Romania, 2K Telecom, Telecoms regulator the National RCS&RDS (Digi) and Radiocom (SNR). Communications Commission (NCC) has once again rejected an application for a (October 20, 2015) telegeography.com merger between Ambit Microsystems and Asia Pacific Telecom (APT), according to the Taipei Times. An earlier Orange Romania, Vodafone Romania, RCS&RDS (Digi), merger application was rejected in January 2015 on the National Radiocommunications Company (SNR) and grounds that it had not adequately explained the scope 2K Telecom submitted offers for 3400MHz-3800MHz of a strategic alliance with another of Taiwan’s cellular wireless broadband licenses by the deadline of October operators, Taiwan Mobile, which holds shares in Ambit. 5. The ten-year nationwide licenses will be valid from In this latest development the link between Ambit, APT January 1, 2016. Current license holders in the band are and Taiwan Mobile has again caused concern for the Orange Romania, UPC Romania, Vodafone Romania, 2K NCC. Regulatory spokesperson Yu Hsiao-cheng noted Telecom and SNR, under concessions expiring at end- that, with Taiwan Mobile having raised its stake in Ambit 2015. UPC apparently decided not to renew its wireless via the acquisition of 14.99% of the latter’s shares, broadband spectrum. If demand exceeds the available the merger of APT and Ambit would lead to Taiwan resources, an auction for the frequencies will start on Mobile having a 3.45% holding in the post-merger October 26. (October 7, 2015) hotnews.ro firm. According to the Telecommunications Act, Taiwan Mobile should file an additional application regarding its investment in the new company, which must be Senegal approved by the NCC. Separately, Taiwan Mobile and Senegal’s telecoms regulator Autorite de APT will each be required to submit individual plans Regulation des Telecoms et des Postes to address breaches of telecoms regulations linked to (ARTP) has given the country’s three mobile a 4G roaming agreement under which the two firms operators, Orange Senegal, Tigo Senegal would share a core network; such a setup, the NCC has and Sudatel Senegal (Expresso), a 60-day extension ruled, does not actually meet the definition of a roaming on the deadline for ensuring that all their customers agreement. According to Yu, the Commission will only have provided the necessary personal identification review the merger once it has received all the relevant information under the watchdog’s mandatory SIM documentation. For its part, APT has said it will make a registration program. Under Decree No. 2007-937, all renewed merger application as soon as possible after users are required to comply with new rules confirming examining the NCC’s requests, while it will also submit a their identity, but the ARTP has extended the deadline plan to address the issue of its use of the core network. from October 1, 2015 to December 1, 2015 allow the last (October 5, 2015) telegeography.com of the ‘offenders’ to comply before switching off their service. In June 2013 the Ministry of Communication, Telecommunications and Digital Economy launched a Thailand scheme to identify all mobile subscribers in the country. Thailand’s National Broadcasting and The project, managed by the ARTP, is being carried out Telecommunications Commission (NBTC) under recommendations laid out by the International has given state-owned telco TOT the Telecommunication Union (ITU) – adopted in 2007 – green light to develop 4G LTE services that require domestic cellcos to identify who is using using its existing 2300MHz-2400MHz spectrum for the their mobile services in order to provide more reliable next ten years. The strategy will help TOT create new statistics on the market improve security and tackle the revenue streams to offset lost build-transfer-operate grey market for phones. Eight years after adopting the (BTO) concession revenues, the NBTC’s secretary-general decree, Senegal’s wireless service providers have so far Takorn Tantasith claimed, after the watchdog’s telecom failed to complete the mobile identification scheme, committee approved TOT’s 4G proposal on Thursday. Mr.

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Takorn added that TOT is permitted to develop 60MHz starting bid will be Bt15.912 billion per license, since of bandwidth for commercial 4G services nationwide there are more than two bidders, according to the (out of a 64MHz block held by TOT – 4MHz being of NBTC’s auction rules. “If the four compete seriously in limited technical usefulness). The frequency range has the bidding, each license is expected to fetch more than previously been partly utilized for public telephony Bt20 billion,” an NBTC source said. The auction will be services and transmission links. ‘TOT will have the right held on November 11. The telecom committee is also to use the 2400MHz spectrum to operate wireless expected at its Tuesday meeting to finalize the date broadband service until 2025 without an operating for auctioning two licenses for the 900MHz spectrum. license,’ confirmed Takorn. In March 2012 the NBTC The tentative date is December 15, but the NBTC is indicated (without confirming) that it would grant TOT expected to move it up to next month. However, TOT permission to continue using certain existing wireless has considered mounting a legal challenge against frequencies which are not covered by licenses, and whilst the NBTC’s plan to reclaim this 900MHz spectrum for awaiting final regulatory approval TOT has held trials auction. TOT granted a 900MHz concession to Advanced of Time Division (TD)-LTE 2300MHz services, including Info Service. It expired on September 30. The state a partnership project with cellular market leader enterprise wants to keep the spectrum until 2025. (October Advanced Info Services (AIS) in H1 2012. It has recently 11, 2015) nationmultimedia.com been reported that the regulator and government are looking to appease TOT with incentives including concessions and loans to avoid the telco carrying out Thai telecoms start-up venture Mobile LTE is the fifth its threat to launch court action against next month’s company to acquire bidding documents for the planned 900MHz license auction, which involves the reallocation auction of two 900MHz 4G licenses in Thailand, which of frequencies originally issued by TOT to AIS under a is scheduled to take place in December this year. build-transfer-operate (BTO) agreement which expired Each would-be participant must pay a ‘bidding fee’ of THB500,000 (US$13,746), plus a deposit guarantee in September. (October 30, 2015) the Bangkok Post worth 5% of the reserve price; which for a 900MHz Cat Telecom plans to ask the National Broadcasting and license is THB12.9 billion, or 80% of the estimated real Telecommunications Commission again to consider spectrum value. Documents will be made available to permitting it to upgrade its idle 20 megahertz of potential bidders until October 21. Earlier this month bandwidth on the 1,800MHz spectrum to provide the first four potential bidders in the 900MHz auction fourth-generation wireless broadband service, said were named as cellular market leader Advanced Info CAT’s acting chief executive officer, Colonel Sanpachai Service (AIS); second-placed cellco Digital Total Access Huvanandana. The NBTC recently declined its request Communication (DTAC); third largest mobile provider on the upgrade pending CAT’s obtaining consent from True Corp (True Move H); and Jas Mobile Broadband Total Access Communication (DTAC) first. CAT has (a subsidiary of Jasmine International, parent of Thai granted 50MHz of the 1,800MHz spectrum to DTAC, fixed network operator Triple T Broadband). All four which currently uses only 25MHz. Of the remaining idle companies previously acquired bidding documents for bandwidth, 5MHz was been allocated to the NBTC for the government’s 1800MHz auction, which will take place reallocation by auction. CAT’s plan to ask again for the in November. Mobile LTE is a consortium of local ICT and spectrum upgrade follows last week’s decision by the oil trading firms. Advanced Information Technology (AIT) NBTC telecom committee to consider allowing TOT to holds a 20% stake in Mobile LTE, which is also one of the upgrade its bandwidth on the 2.3-gigahertz spectrum shortlisted firms aiming to partner struggling state-run to provide 4G service, pending TOT’s submission of Thai telco TOT in the 4G mobile sector. a related business plan. Sanpachai said CAT needed to upgrade and use the idle bandwidth as part of its (October 7, 2015) Bangkok Post plan to use the spectrum efficiently. “We plan to be a 4G network provider. We’re looking at wholesaling Tonga 4G bandwidth to our MVNOs [mobile virtual network The national Parliament has taken steps operators], which might want to offer 4G as well as 3G to control internet access in the country, service,” he said. Sanpachai said that besides providing rushing two new communications bills cloud services and a submarine cable network service, through that will set up a new regulatory CAT needed to provide 4G service in order to serve body with powers to block selected content for internet the government’s “digital economy” policy. Besides the users, along with other measures that critics argue 1,800MHz spectrum, CAT holds 15MHz on the 850MHz could infringe individual rights. The two new bills have spectrum, on which it provides 3G service jointly with been proposed by the Minister for Communication True Group. Its rights to the 850MHz spectrum will Siaosi Sovaleno who says that they are vital for expire in 2025, while that for 1,800MHz will end in 2018. the development of the country’s communication CAT is preparing to present to the Information and industry. The minister said that the existing telecoms Communications Technology Ministry its plan to set up legislation, the Communication Act 2000, was becoming a joint venture with DTAC to run telecom towers under a outdated and needed amending in order to deal with concession contract. The CAT board has approved it and advancements in modern communications technology. is waiting for the State Enterprise Policy Commission to As such, the third reading of the two bills was carried consider it. (October 19, 2015) nationmultimedia.com unanimously by the House on 6 October, enabling the new Communication Bill 2015 to be adopted, and All four telecom companies that picked up bid documents ultimately the establishment of the new independent for two licenses on the 1,800-megahertz spectrum regulator. (October 12, 2015) telegeography.com have been pre-qualified, the National Broadcasting and Telecommunications Commission said. They are Advanced Wireless Network of Advanced Info Service, DTAC TriNet Network of Total Access Communication, True Move H Universal Communi-cation of True Corp and Jas Mobile of Jasmine International. The minimum

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OFCOM confirmed that it will go ahead with plans to United Kingdom auction off spectrum in the 2.3 GHz and 3.4 GHz bands Having examined the likely impact of the early next year, setting a reserve price of £70 million proposed acquisition of British mobile (€97 million) for the airwaves. The U.K. regulator did network operator EE by local fixed line not set a firm date for the process, other than to say incumbent BT, the Competition and that the auction “is planned to take place in early 2016.” Markets Authority (CMA) has provisionally given the Participants will be able to bid for a total of 190 MHz of green light to the deal. The competition watchdog said spectrum, 40 MHz in the 2.3 GHz band and 150 MHz that it had reached its initial decision after studying in the 3.4 GHz band. Earlier this year OFCOM mulled how the tie-up would affect competition in a number of holding some 60 MHz in reserve for sale at a later date, different areas of the telecoms sector, while also looking due to the potential impact on the market of ongoing at how the merger might affect competition for services operator consolidation, but it has elected to auction off to consumers which both companies currently provide. the entire spectrum at once. The spectrum has been Stating that it does not believe the merger of BT and EE made available by the Ministry of Defense as part of a would result in a ‘substantial lessening of competition broader government initiative to free up spectrum for (SLC) in any market in the UK’; the CMA’s full provisional civil uses. There is no cap on the amount of spectrum findings report will be published later this week. One any one operator can acquire since large blocks have the initial detail that has been revealed is that, with the potential to support fast download speeds, the regulator inquiry group having considered ten areas of concern said. It will split the 2.3 GHz band into 10-MHz lots, (or theories of harm) outlined in an issues statement setting a reserve price of £10 million per block. The 3.4 published in July, it was unanimous in provisionally GHZ band will be divided into 5-MHz lots each carrying finding no SLC in relation to all but one of the markets a minimum price of £1 million. “This auction is an reviewed. In relation to the wholesale mobile market, important step in ensuring that the UK has the wireless however, the group was said to have been evenly divided capability to deliver and support new technology,” said over whether the concerns it investigated gave rise to an Philip Marnick, OFCOM’s spectrum group director. SLC. Commenting on the decision, John Wotton, Inquiry “We’re responding to rapid change and innovation in Chair, was cited as saying: ‘We provisionally think that the communications sector, which is placing greater the retail mobile market in the UK, with four main mobile demands on spectrum,” he said. “Part of our plan to providers and a substantial number of smaller operators, meet this demand is by making new spectrum available is competitive. As BT is a smaller operator in mobile, it and allowing it to be used in a number of different ways.” is unlikely that the merger will have a significant effect OFCOM said the spectrum in question will be suitable for on competition. By the same token, it is unlikely that the mobile broadband services, including 4G. It noted that merger will have a significant effect on competition in the 2.3 GHz band is already being used for 4G services the retail broadband market, where EE is only a minor in 10 markets outside of the European Union, including player.’ In announcing its provision decision, the CMA China, India and Australia. TD-LTE services have been confirmed that it had extended the deadline for its final particularly successful in China, thanks to support from report by eight weeks, to January 18, 2016, to allow it China Mobile, which had 247.62 million 4G customers to consider all responses to the provisional findings in using the technology as of the end of September. Major detail before finalizing and publishing its decision. smartphone brands also support the 2.3 GHz band. The (October 28, 2015) telegeography.com 3.4 GHz band is being used for 4G wireless broadband in six countries including the UK, Canada and Spain, UK telecoms regulator OFCOM has unveiled details of its OFCOM added. UK Broadband uses 3.4 GHz spectrum planned spectrum auction due to take place early next for its Relish wireless broadband service in London. year. A total of 190MHz of high-capacity spectrum will (October 26, 2015) totaltele.com be offered across the 2.3GHz and 3.4GHz bands as part of a wider Government initiative to free up public sector spectrum – made available by the Ministry of Defense United States – for civil uses. OFCOM noted that the frequencies are The US Federal Communications ‘particularly suited for high-speed mobile broadband Commission (FCC) proposed new rules services, because they can carry large amounts of data’. to “unlock the mobile broadband and The regulator also revealed that a reserve price would unlicensed potential of spectrum at the be set at GBP70 million (US$107 million), with no cap on frontier above 24GHz”. It wants to make 28GHz, 37GHz, the amount of spectrum any one company can acquire. 39GHz, and 64-71GHz bands available using schemes OFCOM highlighted that limits could prevent a bidder like “traditional wide area licensing, unlicensed, and from buying large blocks of adjacent spectrum – which a shared approach that provides access for local area have the potential to support very fast download speeds and wide area networks.” It said the rules would create and could potentially pave the way for 5G. With OFCOM a regulatory environment in which next-generation also saying it aims to ensure that the auction is ‘designed mobile technologies can take hold. It was previously to be fair and transparent’, it will offer the 2.3GHz assumed physical and tech limitations could not support frequencies in 10MHz lots, while spectrum in the 3.4GHz mobile service in these bands, it said in a statement. band will be offered in 5MHz lots. Commenting on the However, now it believes new developments may allow plans, Philip Marnick, OFCOM Spectrum Group Director the use of these high frequencies for mobile applications was cited as saying: ‘Spectrum is the essential resource like 5G service, “with significantly more capacity and which fuels the UK’s wireless economy. This auction is an faster speeds for next generation mobile service.” important step in ensuring that the UK has the wireless The proposition also provides a path for a variety of capability to deliver and support new technology … platforms and uses, including satellite, to coexist and We’re responding to rapid change and innovation in expand through market-based mechanisms. The FCC is the communications sector, which is placing greater seeking comment on the service, licensing, and technical demands on spectrum. Part of our plan to meet this rules for facilitating flexible use in these bands as well as demand is by making new spectrum available and on other bands above 24 GHz that may be considered allowing it to be used in a number of different ways.’ in the future. “By taking this action now, the commission (October 27, 2015) telegeography.com begins to establish a framework to proceed in parallel

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with technological development in order to keep pace The U.S. Federal Communications Commission (FCC) will and help future mobile and other wireless technologies retain US$3.4 billion worth of mobile spectrum licences flourish,” it said. (October 23, 2015) mobileworldlive.com acquired by Dish Network in the AWS-3 auction earlier this year, and have imposed a financial penalty on the satellite TV operator for its failure to pay in full for those The U.S. Federal Communications Commission on Friday licenses. Dish won a significant amount of spectrum – released opening bid prices for its airwaves auction in racking up a bill of $13.3 billion - in January’s AWS-3 a public notice and also set the dates for broadcasters auction, but drew controversy by exploiting a loophole to file applications for the auction. “For all practical in the rules designed to help small players. It bid via purposes, we’ve fired the starting gun: the release of three smaller subsidiaries, two of which – Northstar final opening bid prices - combined with the detailed Wireless and SNR Wireless – won frequencies. Under the application procedures and other data released provides FCC’s designated entity (DE) rules, the pair both qualified broadcasters with all of the information they need to for a 25% small business discount on the airwaves, decide whether to apply to participate in the auction,” reducing the overall bill by $3.3 billion. In August the FCC Chairman Tom Wheeler said in a statement. FCC ruled that Dish is not entitled to those discounts. Applications to participate in the reverse auction This week Dish announced that the FCC will retain $2.2 must be filed between December 1 and December billion worth of the spectrum won by Northstar and 18, according to the notice, which said that late filings $1.2 billion of that secured by SNR, leaving the pair would not be accepted. Broadcasters must commit to paying $5.62 billion and $4.27 billion respectively for a preferred initial bid option by March 29, as well. A airwaves. “Dish and the entities in which it has invested senior FCC official, briefing reporters on condition of are expected to have an average of approximately 75 anonymity, said the whole process will likely close in the MHz of spectrum nationwide,” the satellite operator said. second or third quarter of 2016. According to the notice, “The eligibility of Northstar Wireless, SNR Wireless and the highest opening price in the auction is $900 million, their investors (including Dish) to participate in future which would go to WCBS-TV in New York. auctions, including any re-auction of the AWS-3 licenses (October 19, 2015) telecomengine.com retained by the FCC, is not affected,” Dish added. Dish said it has loaned Northstar and SNR $413 million to pay FCC commissioner Mignon Clyburn said she is “not the penalty imposed on them by the FCC for defaulting happy” about the lack of universal mobile broadband on payments for the retained licenses. The companies service across the US, insisting that “far too many people could have more to pay, depending on how the FCC in rural America” have been denied access for too long. fares in any future attempt to re-auction the licenses. Speaking in the day two keynotes at the US Competitive According to Reuters, which cited an unnamed FCC Carriers Association’s (CCA) annual convention, Clyburn official, the regulator will seek to re-auction the licenses, called for the adoption of a permanent mobility fund in which number 197 in total, after it concludes its so-called the country, which she believes will address some of the incentive auction – the sale of 600 MHz frequencies problems facing a large group of US consumers that still currently held by broadcasters - next year. Should the lack access to internet services. She said the commission re-auction raise less than Northstar and SNR agreed to decided on establishing such a fund in 2011, before pay first time around, the two affiliates would be on the “funding froze at 60 per cent of 2011 support levels”. hook to pay the balance, the newswire explained. “Now is the time for the commission to ensure that (October 6, 2015) totaltele.com funding to mobile providers extracts the most value for each dollar of each universal fund spent,” Clyburn said. The U.S. Federal Communications Commission (FCC) will “Now is the time for consumers in those underserved retain US$3.4 billion worth of mobile spectrum licenses areas to have what most of us take for granted.” Clyburn acquired by Dish Network in the AWS-3 auction earlier revealed the CCA, which represents the interests of more this year, and have imposed a financial penalty on the than 100 small wireless providers in the US, had called satellite TV operator for its failure to pay in full for those on the FCC to increase funding to providers, “so that licenses. Dish won a significant amount of spectrum – the mobility fund could reflect the true state of mobile racking up a bill of $13.3 billion - in January’s AWS-3 broadband deployment, which is far more limited than auction, but drew controversy by exploiting a loophole the commission assumes, and doesn’t represent the in the rules designed to help small players. It bid via essential nature of mobile broadband”. During the three smaller subsidiaries, two of which – Northstar speech, Clyburn cited a study that suggested almost 10 Wireless and SNR Wireless – won frequencies. Under the per cent of all Americans use only their mobile phones FCC’s designated entity (DE) rules, the pair both qualified to access the internet. She said the evolution of the for a 25% small business discount on the airwaves, industry meant the same rules should now be applied reducing the overall bill by $3.3 billion. In August the to both fixed and mobile services. “Users of mobile FCC ruled that Dish is not entitled to those discounts. services should no longer be relegated to a second class This week Dish announced that the FCC will retain $2.2 mobile experience. They need and deserve a robust billion worth of the spectrum won by Northstar and experience on par with their wireless peers,” she said. $1.2 billion of that secured by SNR, leaving the pair Clyburn’s FCC colleague, commissioner Michael O’Reilly, paying $5.62 billion and $4.27 billion respectively for who opened CCA’s annual meet up with a keynote of airwaves. “Dish and the entities in which it has invested his own on day one of the event, echoed Clyburn’s are expected to have an average of approximately 75 views on underserved areas, and insisted infrastructure MHz of spectrum nationwide,” the satellite operator said. deployment was becoming ever more essential. “In the “The eligibility of Northstar Wireless, SNR Wireless and near term, wireless providers must install thousands of their investors (including Dish) to participate in future new facilities to provide service, meet capacity needs, auctions, including any re-auction of the AWS-3 licenses relieve congestion and expand coverage areas,” he retained by the FCC, is not affected,” Dish added. Dish said. “This will also help smaller providers in bringing said it has loaned Northstar and SNR $413 million to pay connectivity to underserved areas, as they will also the penalty imposed on them by the FCC for defaulting benefit from facility sharing.” (October 9, 2015) mobileworldlive.com on payments for the retained licenses. The companies could have more to pay, depending on how the FCC

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fares in any future attempt to re-auction the licenses. According to Reuters, which cited an unnamed FCC official, the regulator will seek to re-auction the licenses, which number 197 in total, after it concludes its so-called incentive auction – the sale of 600 MHz frequencies currently held by broadcasters - next year. Should the re-auction raise less than Northstar and SNR agreed to pay first time around, the two affiliates would be on the hook to pay the balance, the newswire explained.

(October 2, 2015) totaltele.com

Uruguay The Government ordered its revenue entity to study the way to start charging taxes to OTT platforms such as Netflix and Spotify as an answer to the request made by the Uruguayan National Broadcasters Asociation (Andebu). Andebu gathers all TV channels and Cable TV operators and had demanded the Government to take action in taxing the multimedia services offered by Netflix, particularly, but to the rest of the foreign companies operating in that country as well. “It doesn’t make any sense that channels and Cable TV operators should pay their taxes and that Netflix shouldn’t pay anything. In other countries they are already paying”, said the President of Andebu, Pedro Abuchalja, in an article published some days ago in the El Pais journal. Netflix is available in Uruguay since September 2011. (October 6, 2015) nextvlatam.com

Zimbabwe The government could assume US$322 million of debt from state-owned fixed line and broadband operator TelOne, in a move designed to improve the telco’s position with regard to securing additional financing. TelOne inherited loans totaling approximately US$330 million when it was spun off from the former Postal and Telecommunications Corporation (PTC) in 2000. Media quotes a company statement which says the removal of the debt from the balance sheet would allow the company to access loans at reasonable rates. A bill for the assumption of the debt would need to be tabled in parliament. TelOne recently reported a 9% year-on-year fall in revenues for the six months to June 30, 2015 to US$69 million. (October 5, 2015) The Zimbabwe Independent

Javaid Akhtar Malik Regulatory Affairs SAMENA Telecommunications Council

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

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wholesale NEWS

Europe finally abolishes roaming fees is a massive win for British consumers. Driving down costs and mobile phone roaming making it easier to travel is what being charges in the EU is all about. “This shows what we can achieve when Britain plays a Members of the European parliament leading role in Europe.” The news was have voted through new rules that will welcomed by campaigners, though some scrap mobile roaming charges and stop were cautious over some clauses that holidaymakers returning home to the might limit the agreement’s utility for nightmare of a massive phone bill racked all. Monique Goyens, director general of up on their travels. The vote sees the deal the European Consumer Organization reached between European authorities said: “Another cost cut for mobile use in June to scrap increased costs for calls, abroad by April 2016 is good news, WHOLESALE text and data while roaming with the EU, but is still only a half-baked solution. passed into law. UK mobile phone users “Allowing companies to limit roaming Updates who travel within Europe will only have rights for frequent travelers, for example, to pay the same prices as they would is certainly not the promised end of at home, curbing the cost of continued roaming in Europe. A real zero-roaming mobile connectivity while abroad. Europe hinges on a major telecom Former vice-president of the European market reform, which is a mammoth Commission and rapporteur for the task to achieve in just 13 months.” The Trade in Services Agreement, Viviane Reding said: “After 10 years of tireless fight, roaming is over. A victory for consumers and a stepping stone towards a truly European digital single market.” Liberal Democrat MEP Catherine Bearder said: “The end of rip-off

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vote followed more than two years move given that has resonated well agreements are in place, it could take of negotiations and U-turns as the with customers – Three’s Feel at Home the European mobile phone operator European parliament butted heads service has saved customers £1.3bn in market one step closer to being free with EU member states concerned roaming charges and has been used of its current geographic restrictions. about the financial impact on their by over 2 million customers.” Ernest Mark Windle, head of marketing for national telecoms groups. The anti- Doku from Uswitch said: “Bill shock telecoms software provider OpenCloud roaming plans had been scheduled from holidaying in the EU affects more said: “Most mobile network operators for the end of 2015, but were blocked than 9 million UK mobile users a year are limited to a market defined by their in March by ministers of national according to our research.” One-fifth own radio-access network – services governments through the European of UK mobile users travelling to the are defined by, and delivered from, council. The roaming plans were EU in the last year have faced higher individual service-siloes in each country twinned with a vote over amendment than usual bills for usage, collectively – but service provision is capable of to telecoms regulation that would have amounting to £573m, according to being pan-European, if not global. reinforced European net neutrality, the data from Uswitch. The average charge “The change in roaming charges may principle that internet service providers added to bills was £61 on top of a flatten the EU for travelers, the creation should not give preferential treatment user’s standard contract charge, while of a single communications market is to certain websites and services. The 17% faced bills of £100 or more. While not yet in place. But it is coming.” amendments were rejected, leading to consumers may welcome the news, criticism by net neutrality campaigners. some have seen the moves to cut The commission is saying the new premiums for roaming as potentially amendments to the telecoms market damaging to the operation of mobile MVNO EUROPE IS will be an end to “huge telephone operators, removing a lucrative COMMITTED TO THE bills ruining your holiday budget”. This revenue stream. Others see the moves year, phone operators can still charge as opening new routes for revenue EFFECTIVE END OF travelers to European member states potential from increased overseas ROAMING CHARGES up to 19 cents (14p) a minute for mobile use. Mann said: “European The European Parliament plenary outgoing calls, five cents for incoming operators have seen roaming revenue ratified the political agreement to calls, six cents per text message, fall rapidly over the past few years abolish retail roaming charges by June and 20 cents per megabyte of data following implications of legislation 2017. MVNO Europe, representing downloaded, on top of their normal from Brussels. The fall in roaming innovative virtual mobile operators in tariff. In April next year those costs will revenue for operators is sharpening Europe, welcomes this vote but will be reduced to five cents per minute, their focus on new areas such as remain very attentive to the revision two cents per SMS and five cents machine-to-machine connections of the wholesale market included per MB. Roaming charges will not be and vertical segments. “There may in the text, as we believe is a pre- completely removed until June 2017 be a temptation for operators to raise condition to an effective roaming- and will require reform of the roaming roaming charges outside the EU to free Europe. After more than two wholesale market on which national compensate for the decline in revenue years of intense negotiations, the EU phone operators across Europe trade in the Union.” Jennifer Kyriakakis, co- institutions finally agreed to the end services between each other. It is this founder of telecom systems provider of retail mobile roaming surcharges in trade that allows UK mobile phone Matrixx said: “The fact is that most the European Union by 15 June 2017. users to make calls, send texts and customers – approximately 90% – don’t Until this date, a transitional regime access data using European networks use their mobile devices while they’re will be put in place on the 30th of April while in countries such as Germany, abroad, especially for data services, 2016 allowing operators to apply a Spain or France. Some UK mobile and when they do they reluctantly surcharge capped at €0.05 per minute, operators have come out ahead of pay a premium for it. “With more €0.02 per SMS and data use at €0.05 the roaming changes; others have subscribers using their phones abroad per megabyte. However, the battle isn’t stuck steadfastly to increased charges ... operators could have a much larger over yet. The foreseen end of roaming that can see bills of hundreds of revenue stream that’s both predictable is dependent on the completion of a pounds for holidaymaker usage that and sustainable, while simultaneously review, by the European Commission; would not seem out of the ordinary driving customer loyalty instead of of the regulated wholesale roaming in the UK. Some operators, including driving them away.” The abolishment market (the price operators pay each Vodafone UK, added daily charges to of roaming charges was not met with other to use their respective networks). user bills for use of their allowance in universal approval. In the days before Without any further reduction of European countries. Others, including the vote Roger Helmer MEP tabled an wholesale regulated roaming prices, Hong Kong conglomerate Hutchison amendment to reject the agreement in particular for data, MVNOs – but Whampoa’s Three UK mobile, removed on behalf of Ukip. Helmer said: “Lower also smaller MNO operators – will roaming charges for those travelling prices for jet-setters will mean higher have to pay overpriced wholesale to a selection of European countries, domestic prices. The EU plan is good roaming charges to visited mobile mirroring the end goal for the newly for MEPs, bad for voters.” The next operators in order to offer roaming passed legislation. Kester Mann, mobile step for regulators is a reform of the services to their consumers in Europe, operators analyst with CCS Insight, said: roaming wholesale market, which has thus making it impossible for them to “A number of providers have opted to potential to further delay the process remain competitive on their domestic offer inclusive roaming in many tariffs. of roaming charge removal beyond markets. Due to a structural absence of This is a smart and differentiating June 2017, should talks drag. Once bargaining power, MVNOs are usually

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SAMENA TRENDS _ OCT 2015 SAMENA TRENDS _ OCT 2015 required to pay maximum rates when “One Airtel.” “One Airtel” roaming which requires very huge funds and striking deals with MNOs on providing offer enables inbound roamers or sound technology to put in place. roaming access to their customers. Yet, visiting subscribers from all Airtel Because we did not want a situation smaller and more agile players such Africa countries to be treated as local where our service will not be up to as MVNOs have been always more customers in the visited country in standard, we took our time to put in competitive in terms of prices as well terms of pricing, including receiving place the best network,’ Omoniyi is as first-movers in innovative offers calls free of charge while retaining quoted as saying. A consortium of to European consumers (e.g.: multi- their home SIM card. Airtel Kenya VDT Communications, BitCom Systems numbers SIMs, niche markets or fixed/ customers can travel across sixteen and Superflux International, Bitflux mobile integrated offers, IoT/M2M, Airtel Africa’s countries and can roam emerged as the winner of the Nigerian sophisticated m-payment solutions on any of the Airtel networks for only Communications Commission’s (NCC’s) based on NFC, multiple sourcing Ksh. 12 per minute for all local calls 2.3GHz spectrum auction in February strategies). In the absence of a within the country, and Ksh 35 per 2014 with a bid of USD23.251 million, significant reduction of wholesale caps minute for any call back to Kenya or beating Globacom’s offer of USD23.050 reflecting genuine costs of international for an international call. Receiving million. The 30MHz of spectrum will roaming, mobile operators will be calls while roaming still remains free be used to provide wholesale wireless induced or even forced to impose of charge for the first 100 minutes broadband access services to ISPs and restrictions, also through complex and a month. The countries where the other retail telecoms service providers, unfriendly contractual clauses, to end- new flat rate applies include Nigeria, which in turn will offer retail high users when roaming abroad. This will Zambia, Tanzania, Malawi, Ghana, speed internet services to consumers. be an unexpected and disappointing Sierra Leone, Seychelles, DRC, Gabon, Earlier this year, Biodun Omoniyi, CEO outcome of the present regulation, Congo, Niger, Tchad, Burkina Faso and of VDT Communications, said that which would undermine the credibility Madagascar. In addition, Airtel Kenya rollout was originally expected to take of the efforts carried out by institutions SMS rates to and within Uganda and place in 1Q15, but had been delayed and industry up to now. The European Rwanda have been reduced to Ksh. by ‘investment challenges’ in Nigeria. Commission, with the support of 6/-. Previously, customers used to pay BEREC, is to conduct this review by from Ksh. 13/- while roaming and Ksh. June 2016, which will still need to be 10/- for international SMS to the two agreed on by all parties. Negotiations countries. Voice calls to and within Telefonica Espana fined could take more time than expected these countries will remain the same by CNMC for breaching and postpone the real end of roaming. at the rate of Ksh. 10 per minute. The Additionally, during the transitional changes in the tariffs within Kenya, wholesale broadband period, MVNOs risk margin squeeze Uganda and Rwanda is as a result of rental regulations and therefore urge for the review to an agreement by the heads of state Spanish telecoms watchdog the be done as soon as possible. MVNO of three East African countries to Comision Nacional de los Mercados Europe will remain vigilant in this reduce cross-border calling rates by 60 y la Competencia (CNMC) has fined process in order to make sure that the percent, as part of efforts to enhance local fixed line incumbent Telefonica revision will not distort the market in regional integration. Espana EUR5.0 million (USD5.7 million) favor of the largest mobile operators for violating regulations regarding and lead to the exclusion of dynamic the rental of broadband connections smaller players. Bitflux to launch wholesale LTE network in Airtel offering flat rate Lagos by year-end for roaming across Africa Bitflux Communications, the winner of a national 2.3GHz spectrum licence Airtel customers can now enjoy flat that was auctioned off in February last and affordable rates for its customers year, has rolled out a limited wholesale travelling across Airtel’s Africa wireless broadband network in parts countries, after the introduction of of Lagos, with plans to launch full commercial services in the city by the end of the year. Bitflux director Biodun Omoniyi told local newspaper Daily Trust that the 4G LTE network is ready in ‘a controlled area in Lagos’ and to the nation’s alternative operators. revealed that services are live in some According to Reuters, the regulator parts of the city. A commercial launch ruled that Telefonica Espana, which is planned for Lagos by the end of the offers its services under the Movistar year, with network rollout in Abuja and banner, had applied charges and Port Harcourt scheduled for 2016. ‘We clauses in the rental of Ethernet circuits have our network ready in a controlled above those allowed by legislation. area in Lagos. It took us this long to Operators affected by the violations roll out because the 2.3GHz spectrum – which the CNMC said had been is a very high frequency spectrum repeated between October 2010 and

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February 2015 – included Vodafone ACCC announces one-off In terms of factors affecting the Spain, Jazztel and BT. decision, the regulator cited lower uniform 9.4% reduction costs of the copper network; a ‘very significant’ decline in the cost of capital While the decision cannot be appealed in fixed line access since 2011; low inflation over the 2015 via administrative channels, the CNMC financial year; and new forecasts from did confirm that Telefonica Espana service charges NBN Co on its rollout schedule for the could fight it via the High Court, with A final decision relating to the prices NBN. Additionally, upward pressure a two month deadline for the telco to that alternative operators pay to on prices resulted from the ACCC’s start such action should it choose to. provide services over Telstra’s copper network has been published by the decision to adopt a fully allocated cost Australian Competition and Consumer model in combination with declining Commission (ACCC). The regulator has demand for fixed line services due to Telkom SA spins off revealed that there will be a one-off substitution of mobile for fixed line wholesale division into a uniform reduction of 9.4% in access services and the migration to the NBN. prices from current levels, with this separate company applying to the seven fixed line access South African incumbent fixed line services: unconditioned local loop Strategic partnership operator Telkom is set to establish service (ULLS), line sharing service a separate wholesale company – (LSS), wholesale line rental (WLR), local between Telefonica and dubbed ‘Openserve’ – in line with carriage service (LCS), fixed originating MegaFon renewed its turnaround strategy to divide its access service (FOAS), fixed terminating Spanish telecoms giant Telefonica and wholesale and retail divisions ‘to access service (FTAS), and wholesale Russia’s MegaFon have confirmed facilitate greater focus, accountability ADSL service. The ACCC’s final the extension of their strategic and customer centricity’. The division decision also covers connection and partnership, which was first unveiled is set to supply Telkom and alternative disconnection charges and a decision back in May 2013. The companies telecoms operators with wholesale to not exempt the central business claim that extending the agreement fibre broadband access as well as district (CBD) areas from coverage under the final access will make it possible for both to determinations. With ‘continue to benefit from their the new prices to apply collaboration in a variety of areas, from 1 November including procurement, expansion of 2015 and remain valid their international customer base and until 30 June 2019, the exchange of best practices’. Since first cost of ULLS in Bands striking the partnership deal, MegaFon 1, 2 and 3 will fall from and Telefonica have worked together AUD16.21 (USD11.67) on marketing and channel approaches, per month to on new network technologies AUD14.68 per month, such as NFV, and on procurement while in Band 4 the of selected network equipment. charge will be reduced Further, the partnership has also from AUD48.19 to included cooperation on international AUD43.65. WLR will wholesale for selected parts of the drop to AUD20.69 world. A press release confirming the updated deal notes that the duo metro Ethernet, IP Connect (IPC) and per month (down have completed a number of projects South African Internet eXchange (Saix) from AUD22.84), with LSS charged at for major multinational companies services, in addition to reselling DSL a monthly AUD1.63 (AUD1.80). LCS (MNCs), while they have also expanded services. Telkom CEO Sipho Maseko will cost AUD0.089 per call (down their customer base with new data said the decision to establish Openserve from AUD0.095), and FOAS and FTAS and wireless projects for Russian and as a standalone infrastructure provider will both be billed at AUD0.0086 international companies. As a result of would have a big impact on South per minute (AUD0.0095). Wholesale the partnership extension, MegaFon Africa’s economy and would help to ADSL connections in Zone 1 will drop will continue its membership in the bridge the digital divide. ‘Through to AUD22.14 per port per month, Telefonica Partner Program, while this separation, Telkom will improve its compared to AUD24.44 at present, Telefonica will continue to extend customer focus and establish clearer while in Zone 2/3 the service will cost its reach to the Russian market and lines of accountability. As a standalone AUD26.87 per port per month, down gain industry insights provided by business unit within Telkom, Openserve from AUD29.66. ACCC chairman Rod MegaFon. will be autonomous and will be Sims commented: ‘The ACCC has responsible for its own profit and loss dealt with a number of complex issues account,’ the company said. during this inquiry, including the unique circumstances of the transition from Telstra’s copper network to the National Broadband Network [NBN].’

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TPP tackles telco global roaming,” the Australian Department will not accept this text, as the only of Foreign Affairs and Trade announced winner from it is national telecoms roaming charges in its TPP overview [PDF]. The United operators themselves. Member states Trans-Pacific Partnership (TPP) is States government expanded on this, should hang their heads in shame.” It taking aim at the high cost of mobile saying the plan involves increasing is not yet known what form the global global roaming, with the 12 signatory global roaming competition, ensuring mobile roaming regulatory rules will countries reaching an agreement to equal access to wholesale rates take in the TPP, but Foreign Affairs, encourage competition in wholesale between countries should one decide Trade, and Development Canada pricing for access to foreign mobile to offer a lower price, and providing pointed towards a similar wholesale other options for approach decided between telcos and telco usage while shared between member states. “A travelling overseas. dedicated article addressing the high “They also agree cost of international mobile roaming that they may take ... Ensures that a party’s regulated steps to promote rates and conditions on wholesale competition in international roaming services international mobile are provided to the other parties’ roaming services telecommunications service suppliers and facilitate the on a reciprocal basis,” Foreign Affairs, use of alternatives Trade, and Development Canada to roaming,” the said in its summary on the TPP’s Office of the telecommunications chapter. A limited United States Trade number of telcos and other providers Representative said have previously worked to improve in its TPP summary. global roaming costs, with Vodafone “TPP parties agree Australia offering customers on its Red that, if a party plans international roaming capped chooses to regulate at AU$5 per day and Apple selling a rates for wholesale SIM in Australia, the US, the UK, and international several European countries that allows mobile roaming customers to switch between mobile networks. The TPP, which reached services that party shall permit providers on short-term prepaid agreement on Monday after talks had operators from the TPP countries plans in each country. Google is also stalled several times over digital rights that do not regulate such rates the reportedly negotiating with UK telco and other issues, will regulate trade opportunity to also benefit from the Hutchison on a wholesale access between Australia, the United States, lower rates.” Similarly, the European agreement to provide Google’s US New Zealand, Canada, Singapore, Commission had earlier this year MVNO customers to make calls, send Vietnam, Malaysia, Japan, Mexico, sought to scrap global roaming fees messages, and use data anywhere Peru, Brunei, and Chile. “After five years by 2016, with the European Parliament in the world for only the cost of of intensive negotiations, we have voting in a proposal to have roaming their usual plan. Customers of UK come to an agreement that will create prices dictated by local competition in telco Three can already access their jobs, drive sustainable growth, foster the country being visited by travellers. monthly allowance of data, calls, and inclusive development, and promote However, in March, a majority of the messaging for no additional cost innovation across the Asia-Pacific 28 European Union member states while travelling in Australia, France, region,” said US Trade Representative in the European Council barred this the US, Hong Kong, Italy, Ireland, the Michael Froman. Reliable and efficient from occurring by voting in favour of Nordics, and other countries. The TPP telecommunications networks are keeping roaming charges until 2018. is also endeavoring to push trade and a critical part of trade and supply, They suggested an alternative scheme commerce giant China into conforming according to the TPP, with the that would grant travellers a “basic to the regulations imposed on its document encouraging competitive roaming allowance” -- of only 5MB per neighbors by the TPP. “When more network access rules for mobile day -- and calls, messaging, and data than 95 percent of our potential suppliers; transparent regulatory usage thereafter charged at a rate set customers live outside our borders, procedures; regulations that do not lower than the maximum wholesale rate we can’t let countries like China write discriminate against technologies; paid by operators to use the networks the rules of the global economy,” and timely, transparent, and non- in other countries. “This is a scandal. United States President Barack Obama discriminatory processes for allocating An end to roaming charges and the said in a statement. “We should write and using scarce telco resources, delivery of a genuine single market for those rules, opening new markets to such as spectrum frequencies, phone telecoms was a campaign priority for American products while setting high numbers, and rights of way. The 12 all parties, many of whom are today standards for protecting workers and Pacific rim countries have also agreed responsible for blocking this measure,” preserving our environment.” The full to attain lower global roaming charges said Guy Verhofstadt, president of the text of the agreement has yet to be through regulation. “Australia has Alliance of Liberals and Democrats for published, with the 12 member states successfully advocated for a provision Europe in the European Parliament. only releasing summaries. that addresses, for the first time, the “To say this text lacks ambition is an high cost of international mobile understatement. Certainly our group

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NTT Docomo to launch enhance Telin’s portfolio in the business Global mobile Suppliers Association sector by providing an interoperable (GSA), there were 422 live LTE networks VoLTE international and versatile network.” Syniverse’s IPX spread across 143 countries at the roaming in South Korea Network Solution interconnects the end of the second quarter. By 2020, it world’s networks to make LTE roaming predicts the number of LTE subscribers Japan’s leading mobile operator possible. The IPX Network Solution will have grown to 3.5 billion from by subscribers, NTT DOCOMO, has provides a carrier-grade connection 755 million at the end of Q2 this year. announced the upcoming launch of to the company’s all-IP network, which “The need for LTE data roaming is its voice-over-LTE (VoLTE) international currently serves more than 2,000 essential, said Jan Karmakar, director roaming service in South Korea, LTE roaming routes. The enhanced of Tele2’s international carrier and on October 7, making it the first roaming reach Telin achieves through roaming business, at Carriers World, Japanese operator to offer a VoLTE Syniverse’s IPX network is supported in which is running alongside Total outbound roaming service. The cellco part by Syniverse’s Diameter Signaling Telecom’s IPX Summit in London says that no fewer than nine of the Service, which enables signaling this week. Tele2 began rolling out new smartphones it has unveiled as routing and interoperability. Together, IPX across its footprint in 2014, and part of its winter/spring line-up are these solutions deliver multiple class- its operating businesses have been compatible with the new service, of-service levels to support voice, data launching LTE roaming services ever which it claims will enable users to and video with guaranteed security. since. On Wednesday, Karmakar said make high-quality voice and video Indonesia and Asia Pacific represent a Tele2 experienced a 50-fold increase calls. The launch in South Korea comes critical market for LTE roaming in the in inbound roaming traffic in 2015, by dint of a partnership agreement next few years, according to GSMA compared with 2011. “That was with Seoul-based KT Corporation, Intelligence. The region has half of the without introducing any special price one of the country’s largest mobile world’s subscribers and connections, plans,” he said. “Roam-at-home tariffs operators. VoLTE is proving popular in with 1.8 billion and 3.8 billion, will drive data volumes even higher.” Japan; mobile users in the country had respectively, and smartphone adoption Indeed, the EU has set plans in motion placed VoLTE calls from more than ten is forecast to rise from 40 percent in million smartphones as of 31 August, 2015 to over 50 percent by 2016, and according to DOCOMO research. Its reach 66 percent by 2020. “We are new roaming service incorporates honored that Telin chose Syniverse S8 home routed (S8HR) architecture, to extend its LTE roaming reach,” said which is used to enhance the existing MK Chang, Vice President, Advanced LTE data roaming architecture to Signal and Network Interoperability, support VoLTE under a roaming Mobile Transaction Services, Syniverse. environment. The S8HR architecture is “At the forefront of LTE roaming a method based on 3GPP standards to enablement for operators around realize VoLTE roaming. Going forward, the globe, Syniverse looks forward to DOCOMO expects to expand its VoLTE using this expertise combined with roaming service into other countries LTE reach to more than 270 operators through partnerships with local in 44 countries to help Telin deliver companies. the highest level of LTE service.” with a view to abolishing roaming The agreement with Telin builds on charges across the bloc by June 2017. Syniverse’s recent accomplishments Until then though, operators in the Syniverse extends LTE in Asia, including supporting Amazon EU will continue to charge a premium roaming reach for Telin China in optimizing mobile customer when customers access mobile engagement, providing global A2P services while abroad, which throws up Syniverse and Telin today announced messaging for the Bigo free-call challenges when it comes to voice over that they have signed a multiyear app, enabling Wi-Fi connectivity for LTE (VoLTE) roaming. “VoLTE roaming agreement to provide Telin, one of Samsung Indonesia, delivering the will take some time,” Karmakar said. He the largest network service providers Syniverse IPX Network Solution for highlighted that the industry is having in Southeast Asia, with 4G roaming SoftBank, and launching the world’s difficulty working out how to bill for and signaling connectivity through first VoLTE (Voice over LTE) services for it, with some suggesting charging per Syniverse’s IPX Network Solution. LG Uplus and KDDI. megabit, rather than the traditional Through the agreement, Syniverse will per minute billing normally associated enable Telin to deliver seamless LTE with voice; however, that would have to roaming services to its sister company Tele2 prepares for LTE take into account variances in network and Indonesia’s largest operator, speed. “There is quite some journey Telkomsel, which has more than 120 roaming ramp-up before we solve that,” he said. million subscribers. “Collaboration Telco expects IPX deployment, roam- with Syniverse has strengthened like-home regulations to spark rapid Telin’s capability in delivering LTE growth in number of customers who roaming services to customers,” said access mobile data abroad. Tele2 Natigor Sitorus, Director of Marketing said it is preparing for huge growth and Sales, Telin. “In addition to the in roaming LTE traffic, driven by IPX increased capability in infrastructure deployment and the EU’s ‘roam-like- and footprint, the agreement will also home’ regulations. According to the

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Three factors critical to mobile broadband investment in MENA

In the next few years, the Middle East Moreover, as an example of how the and Africa will offer one of the most mobile broadband opportunity is taking dynamic areas of any region in the world shape, in the Middle East, every mobile for investment in broadband networks, operator in the Gulf Cooperation Council and mobile will lead the way. In addition – including Bahrain, Kuwait, Oman, to a large population and increasing Qatar and Saudi Arabia – now has at smartphone and data usage, the region least one LTE network. What’s more, LTE presents a tremendous opportunity for subscriptions are expected to grow to mobile broadband growth since many 30 million in these countries by 2018, rural areas barely have any wireline according to Pyramid Research. penetration available now. As these numbers show, the next phase To appreciate the increasing opportunity of LTE will be crucial in serving the world’s for mobile broadband – specifically LTE – exploding mobile data needs. However, in the region, consider the area’s recent LTE deployment involves a number of growth. In 2013, mobile data traffic in complex technology challenges. On the Middle East and Africa more than the technology end, operators have doubled, growing 107 percent, and to install new equipment and adapt overall the region is expected to have the existing infrastructure to new standards. strongest mobile data traffic growth of On the business end, operators have any part of the world, with a 72 percent to determine new pricing structures compound annual growth rate from 2013 and reconfigure business partner to 2018, according to Cisco. What’s more, relationships for roaming. The next Nour Al Atassi Cisco forecasts that the percentage of phase of LTE growth will depend on Regional Vice President and smart devices and connections will rise how well operators are able to manage Managing Director from 11 percent in 2014 to 41 percent by infrastructure investments to tackle these Middle East and Africa, 2019. complexities as smoothly as possible. Syniverse

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and legacy 3G and 2G service, and markets with only LTE service. Operators must have a separate strategy in place for a number of roaming situations and fallback scenarios to minimize disruptions among these three types of network situations. Above all, they must ensure that VoLTE calls will seamlessly hand off to older technologies when users travel through areas that lack LTE service, and that users with VoLTE service enjoy seamless connections to available LTE service with minimal disruptions. In this area, Syniverse has been helping a number of operators confront the unique circumstances for enabling their At Syniverse, we have been in the thick LTE networks. In particular, initial VoLTE connections. of helping operators address these through Syniverse’s work to challenges. As LTE rollout accelerates, enable LTE roaming for numerous Today’s users in the Middle East and we have identified three factors that operators, we have identified Africa are increasingly expecting we think operators should place one potentially problematic area. high-speed connectivity and high- special focus on in investing in LTE to LTE roaming requires operators data capacity anytime, anywhere. As meet the expectations of their users: to submit new call detail record operators are pressured to deploy LTE information to their clearing networks faster and faster to meet 1. Maximizing reach with IPX – houses in order for the records these demands, determining how Operators deploying LTE must to be processed and changed to they make investments related to the focus first on establishing reach TAP accurately. During testing, we three factors above will go a long way to a maximum number of LTE discovered that a number of initial toward helping ensure a successful networks to offer the widest submissions didn’t include this transition to a new mobile broadband coverage for their users. IPX necessary information completely era. has emerged as a fundamental or in the right format, seriously network backbone for LTE, VoLTE hampering accurate wholesale and next-generation services, and retail billing. As a result, allowing operators to efficiently we devised several solutions to achieve this reach. This technology remedy this and at the same time allows a single-connection identified compliance with the approach that greatly simplifies new clearing requirements as a testing and deployment while critical component in ensuring consolidating the establishment the performance of LTE roaming. of a large number of connections This is a complex area of LTE for worldwide. Moreover, new which operators should carefully improvements in IPX technologies allocate their investments. enable an integration of services 3. Implementing Voice over LTE and link to operators worldwide (VoLTE) – Voice communication through a single-to-many represents the next frontier of connection. Consequently, LTE, and enabling VoLTE poses operators should invest in IPX as special challenges. To implement the core part of their strategy to this technology, operators must establish a maximum number of manage the complex process direct connections. of converting voice calls into 2. Ensuring roaming interoperability Internet traffic so the same – Enabling ubiquitous roaming is a airwaves can be used for voice special challenge of LTE. It requires or data. Among the challenges a series of comprehensive testing in doing this, one of the most and validation of critical roaming critical involves a roaming processes, such as clearing marketplace that is fragmented and settlement, and customer- into three types: markets with no experience management between LTE service, markets with both LTE

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Broadband network investment: Three actions for regulators and policy-makers

“Regulators and governments can help do to attract investment in broadband to improve network planning, reduce networks. Drawing upon practical investment costs and attract innovative examples from a wide range of countries technologies and commercial models we have identified a number of initiatives to improve investment in broadband that regulators and governments can networks” undertake to improve network planning, reduce investment costs and attract This article presents the findings innovative technologies and commercial of a discussion paper[1] written by models. Analysys Mason for the International Telecommunication Union (ITU) and Making broadband infrastructure presented at the Global Symposium for coverage maps available to operators Regulators 2015 (GSR15) to identify the and expediting licence applications role that regulators and government can promote network coverage policy makers (‘managing authorities’) expansion can play in attracting investment in Managing authorities should facilitate broadband networks. This is the second information sharing with operators in a series of articles summarising the by providing up-to-date broadband paper’s findings.[2] coverage and passive infrastructure mapping data. This will assist operators Investment in broadband network with network planning and allow infrastructure is now more important infrastructure investment to be prioritised than ever, as governments seek to in those areas where it is needed most. strengthen their country’s position in Google, for example, has invested in the digital economy in order to create wholesale fibre networks in Africa, because jobs, economic growth and prosperity. the lack of adequate infrastructure has [3] However, the financing of broadband been a barrier to the provision of high- infrastructure can be a high-risk venture speed broadband services. Google for investors as it requires significant emphasises the important role that upfront capital investment and the local governments can play in reducing payback is not immediate. Investors are the complexity of fibre networks, by Iqbal Singh Bedi more likely to make an investment in a providing new entrants with access to Principal favourable market environment, as this existing fibre networks, and maps of gas Analysys Mason will minimise their risk and maximise the and water mains and overhead power commercial returns. Therefore this article lines, as well as expediting the granting considers what managing authorities can of construction permits.[4]

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However, as well as providing maps, or no mobile coverage. The network [8] This approach can address issues managing authorities should also infrastructure will be offered to mobile such as the lack of available spectrum, ensure that operators have clarity operators on a wholesale basis to because white-space spectrum is on passive infrastructure-sharing promote competition and reduce licence exempt.[9] It also benefits from rights. For example, operators need costs.[7] However, for a variety of the strong propagation characteristics to understand which components of technical, commercial and operational of UHF spectrum, which means that the existing infrastructure (e.g. ducts, reasons, progress has been limited. fewer base stations are required telephone poles, power lines) can be to cover a given area. White-space used, and what rules govern their use. Managing authorities can also pilot projects have been launched in encourage fixed operators to Scotland (to provide Internet access Regulatory approval for explore alternative ways of reducing on a ferry boat) and in Bhutan (to [10],[11] network-sharing deals can costs. In areas where incumbent connect remote health units). fixed operators own legacy copper Regulators in the USA and the UK are encourage investment in rural infrastructure, regulators can developing TV white-space regulations areas (subject to local constraints) allow in preparation for the commercial use Due to the challenging economics operators to decommission their of white-space technology. involved, investments in rural and copper networks. In these situations hard-to-reach areas have largely operators can extract and sell the Managing authorities can also play involved the deployment of wireless copper infrastructure, to generate a role in encouraging investment in solutions. However, managing funds to offset future investment in community broadband networks. Due authorities can play an important role fibre networks. However, there are to the not-for-profit nature of these by building passive infrastructure or limitations to this approach, as copper initiatives they may be financially approving network-sharing deals to decommissioning will only be possible viable in areas where the returns would encourage operators to reduce the in countries where wholesale services be too low for commercial operators, cost of deploying broadband networks. such as local loop unbundling (LLU) particularly in rural districts. However, Regulatory approval for network- and bitstream services are not present. the scale of such schemes is generally sharing deals among mobile operators In addition, the cash benefits will not small and would be complementary can bring improved efficiencies, as it be immediate, as the copper network to other larger national broadband allows them to reduce operating costs can only be decommissioned once the schemes. and share ongoing investment in fibre network has been built. new sites, thus making investment in In Germany, for example, a number rural areas more commercially viable. of communities joined forces with In France, Bouygues Telecom and Technical and commercial local governments, businesses and SFR concluded a significant network- innovation is important in individuals to finance the construction sharing agreement in February 2014, the development of a digital of a high-speed broadband network enabling the two operators to reduce economy and can lead to in the provinces of Nordrhein- their site numbers by around 40%. increased investment in Westfalen and Schleswig-Holstein. This has generated savings of about broadband infrastructure [12] The regulator ensured that the EUR100 million per year for Bouygues Managing authorities can play a key infrastructure was offered on an open- Telecom and EUR200 million per year role in encouraging investment in access basis, as the network was built for SFR.[5] For end users, network innovative technologies and in new using public funds. sharing has the benefit of improved investment models. For example, coverage, particularly in rural areas. regulators can play an important Another example is provided by For example, eight major mobile part by approving technology Scotland, where the government’s operators in the Middle East and pilots for new and innovative Community Broadband Scotland (CBS) Africa announced plans in March 2014 technologies. Innovative or ‘disruptive’ scheme provides financial support to to work together on a new network- technologies are often developed to communities that decide to engage in infrastructure-sharing initiative to overcome challenges (e.g. such as community broadband projects.[13] reduce costs and improve rural cost) associated with using current- broadband coverage.[6] generation technologies to deploy In the USA, the communications broadband networks. However, it can regulator, the FCC, allowed two In the UK, the government funded be difficult to gain approval to use new community broadband providers in a programme to improve mobile technologies in broadband networks, the states of Tennessee and North coverage in remote areas by 2016. as they are unproven. Carolina to expand the geographical The Mobile Infrastructure Programme provision of their services, even (MIP) was set up in 2013 to fund One such technology that is gaining though the law in these two states had the construction of passive mobile prominence in both developing and previously prevented such expansion infrastructure in remote and rural developed markets is the transmission from taking place.[14] areas of the UK which had either little of data using UHF TV white space.

[1] The paper, Investment strategies for the deployment of broadband and access to the digital economy, draws on practical examples from a wide range of countries to develop best-practice guidance for regulators and government policy makers (‘managing authorities’) that wish to foster and secure investment in broadband networks. The paper is available at http://www.itu.int/en/ITU-D/Conferences/GSR/Documents/GSR2015/Discussion_papers_and_Presentations/Discussion%20paper_investment.pdf Since its inception in 2000, GSR – attended by chief regulatory officers, policy makers and senior industry executives – has met annually to examine key issues affecting the regulation of telecoms and digital services. See also http://www.itu.int/en/ITU-D/Conferences/GSR/Pages/GSR2015/ default.aspx [2] The first article in this series can be found at http://www.analysysmason.com/About-Us/News/Insight/Broadband-investment-strategies-digital-economy/#06%20July%202015 [3] This investment can be in core, backhaul, metro or last-mile networks. [4] See http://telecoms.com/200521/uganda-is-next-stop-for-google-fibre-project/ [5] See http://www.analysysmason.com/About-Us/News/Insight/France-consolidation-Jun2014/#17%20June%202014 [6] See http://www.zdnet.com/article/middle-east-africas-mobile-giants-take-first-steps-on-sharing-networks-to-cut-costs-boost-rural-coverage/ [7] See http://www.ispreview.co.uk/index.php/2014/12/gbp150m-uk-mobile-infrastructure-upgrade-project-makes-slow-progress.html [8] The term ‘TV white space’ usually refers to unoccupied portions of spectrum in the VHF/UHF terrestrial TV frequency bands in some geographical areas. [9] A licence-exempt framework allows devices to operate on a non-interference/non-protection basis in compliance with technical specification and/or band rules without the need for an individual device licence. See ITU, Trends in Telecommunication Reform Special Edition: 4th Generation Regulation, Chapter 3 (White Spaces: Managing empty spaces or better managing inefficiencies?), available at http://www.itu.int/en/ITU-D/Regulatory-Market/Pages/Trends/Trends-Special%20Edition.aspx [10] See ITU, GSR Discussion paper: New frontiers in Spectrum Licensing, available at http://www.itu.int/en/ITU-D/Conferences/GSR/Documents/GSR2014/Discussion%20papers%20and%20presentations%20-%20GSR14/Session4_GSR14-DiscussionPaper-SpectrumLicensing.pdf [11] See http://www.scotsman.com/news/scotland/top-stories/rural-scotland-to-lead-with-white-space-internet-1-3569913 [12] See http://www.governancereport.org/home/governance-innovations/featured-innovations-2014/broadband-crowdfunding-germany/ [13] See http://www.hie.co.uk/community-support/community-broadband-scotland/funding/default.html page_59 TECHNOLOGY UPDATES

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Technology NEWS

ZTE, HP and China Unicom Ericsson Applies 5G Complete Testing of NFV- Concept for Up to 50% based VoLTE Technology Higher Speed on LTE ZTE has announced the successful Smartphones completion of a joint project with Hewlett While standards for 5G are yet to be Packard and China Unicom to demonstrate established, it is clear that the technology the feasibility of network function will employ ultra lean design improving virtualization (NFV) based voice over the signaling schemes both to save energy long term evolution (VoLTE) services. The and to enable the dense builds required by proof of concept (PoC) project involved a the expected new 5G spectrum. Ericsson comprehensive range of vEPC and vIMS says that its proprietary Lean Carrier equipment and solutions provided by Technology innovation is first to address intercell ZTE to be used when testing for end- signaling interference, introducing lean to-end VoLTE services in virtualized Updates design concepts to 4G LTE to improve environment deployment solutions. This data speed and app coverage for users included interoperability of management while on the road to 5G. Ericsson Lean and orchestration (MANO) functions and Carrier is running live in thousands interfaces, virtualized network function of cells in SK Telecom’s (SKT) network (VNF) lifecycle management, VNF disaster where Ericsson and SK Telecom have now recovery and maintenance management, deployed Ericsson Lean Carrier in urban, VoLTE end-to-end functionality and suburban and rural areas. In a large- performance, data plane acceleration and scale deployment, users can enjoy up to packet domain gateway functions of C/F a 50 percent increase in downlink data separation. To comply with the European speed with a network average increase Telecommunications Standards Institute of about 10 percent. Park Jin-hyo, Senior (ETSI) reference architecture, the project Vice President and Head of Network R&D was completed using HP’s C7000 Blade Center, SK Telecom, says: “Through this server, and a virtualized infrastructure technology commercialization on LTE manager (VIM) provided by ZTE and base stations, we can expect to enhance HP. The project was also implemented the performance at cell edge area and using ZTE’s vEPC, vIMS, VNF Manager user experience. In the future, SK Telecom and element management system (EMS) will continue to adapt new technologies solutions, in addition to a network on LTE to support network evolution.” function virtualization (NFV) orchestrator By reducing interference, Ericsson Lean provided by HP and ZTE. Carrier enables new 256 QAM higher

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order modulation to be utilized over Etisalat and Intel join to service and creating multi-vendor a broader area, extending the higher scalable environment. SDN enables data speed advantage to the outdoor hands to deploy NFV carriers to use centralized software macro environment. Ericsson Lean and SDN in the network to control and automate network Carrier increases the use of 256 QAM functions, services and policies in by up to 280 percent. Lowering intercell Etisalat has signed a Memorandum the cloud easily replicating software interference while simultaneously of Understanding (MoU) with Intel to throughout the networks in a flexible improving network performance help networks cope with the new era of and highly efficient approach. requires innovation. Leveraging the Network Function Virtualization (NFV) flexibility and power of the Ericsson and Software-Defined Networking LTE baseband hardware combined (SDN). Etisalat NFV/SDN deployment is with Ericsson’s intelligent software aimed to enhance user experience and Small chip harnesses scheduling algorithms, the Ericsson increase service agility and innovation. White Space to solve Lean Carrier innovation applies the Virtualization will enable Etisalat design concepts being developed offer customers, both businesses and rural coverage issues for future 5G systems to today’s 4G consumers, flexible, scalable, more Google might be looking into LTE networks. Ericsson Lean Carrier dynamic and innovative services. extravagant methods of solving rural reduces, or makes lean, the level of Under the strategic partnership, broadband coverage problems, but reference signaling needed for good Intel will share knowledge, provide a small chip designed by Saankhya network performance. This leads to advice for competence build-up and Labs in Bengaluru could be a more a corresponding improvement of the assessment of NFV/SDN solutions feasible solution in the short-term of downlink data speed which applies to be deployed within the Etisalat connecting more people in remote to all parts of the 4G LTE network, network. The collaboration will foster communities to the rest of the world. with the highest performance gains both parties to utilize Intel technology The chip, called Pruthvi, beams an occurring in the areas with most cell in the telecom cloud infrastructure internet connection to households overlap. Per Narvinger, Head of LTE, deployment. This will lead to a more which can receive a TV signal but Ericsson, says: “When LTE was created open, standardized and highly efficient are unable to benefit from a fixed in 2008, it was straightforward, carrier grade SDN/NFV multi-vendor broadband infrastructure. Pruthvi powerful technology, but now we have technology deployment. Esmaeel harnesses unused TV spectrum – added significantly more intelligence. Al Hammadi, Senior Vice President, known as White Space – to bring Running signaling full-blast limits Network Development at Etisalat more people online than ever before. performance by creating unnecessary said, “We are pleased to announce Saankhya Labs, developers of Pruthvi, intercell interference. Drawing on our our partnership with Intel, enabling won the 40th ELCINA-EFY 2015 experience from high-performance our customers with faster access to Award for “Excellence in Innovation” networks and projecting forward innovative services on an intelligent earlier this month. The company is to what will be possible with 5G, we network with better connectivity part of the WhiteSpace Alliance, an were able to innovate a solution that and reach. The deployment of NFV/ organisation aiming to speed-up the optimizes the signaling in today’s SDN will provide flexibility as well as deployment of “TV band” internet 4G LTE network. Operators are savings in the long-run, helping us access. WhiteSpace is the creator of beginning to adopt more advanced better control and automate network industry standards for broadband encoding schemes to efficiently functions and policies. This translates delivery over TV White Space such handle demands for improved user into a dynamic network delivering as the Wi-FAR™ and WSAConnect™ experience; however, use of the new the latest services, facilitating new interoperability specifications which 256 QAM higher order modulations technologies deployment and Saankhya Labs use for their Pruthvi require clean radio signals in order to meeting demands of our growing chip. “Development of technical increase the downlink data speed. By customer base.” Taha Khalifa, Regional specifications and interoperability reducing interference Ericsson Lean General Manager Middle East and testing provides significant time-to- Carrier increases the amount of time North Africa added “NFV and SDN market and product reliability benefits during which 64 QAM and 256 QAM are already demonstrating the ability to our members,” said Dr. Apurva encoding schemes can be utilized by to transform networks for increased N. Mody, Chairman of WhiteSpace the LTE system. Ericsson Lean Carrier agility and efficiency. Intel is investing Alliance. “This is accelerating can be implemented within Ericsson’s in technology, ecosystem enabling, availability of cost-effective broadband LTE networks today, and the solution open standards, open source, and access solutions in underserved is compatible with all LTE devices. 5G deep industry engagements to regions of the world.” Pruthvi is the will encompass an evolution of today’s accelerate availability of innovative size of a postage stamp and can be LTE technology and the addition of solutions. Intel is delighted to partner used as part of a complete system new radio access technologies, often with Etisalat to create a foundation for called Meghdoot which consists of a in higher frequencies. These higher network transformation that will speed base station and user-side modem that frequencies will drive smaller cell sizes, up the deployment of new digital can provide Wireless Rural Broadband making it increasingly important to services for businesses and consumers over the TV White Space spectrum minimize unnecessary transmissions. “ NFV allows telecom operators to ranging from 400 to 800MHz. The This is the basic principle of 5G ultra- virtualize existing network functions technology does not require line-of- lean design. by using customized software to sight, thus ensuring longer range, and work on common standard hardware can serve up to a radius of 10-15km cutting down costs, shortening time depending on antenna tower height and transmit power. If this range

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SAMENA TRENDS _ OCT 2015 SAMENA TRENDS _ OCT 2015 is not enough, it can be boosted called eSDK based on the concept Ericsson and MTS using more powerful and taller of LEADS (lab-as-a-service, end-to- antennas. The system will soon be end, agile, dedicated and social). Conduct Russia’s First going into field trials in collaboration This platform is designed to help Live Trial of LTE Broadcast with IIT-Bombay, IIT-Delhi and IIT- developers accelerate technological Hyderabad. Saankhya Labs is also in innovation and increase their Ericsson, Qualcomm and Russia’s discussions with Microsoft to do trials efficiency in developing differentiated MTS have successfully completed at Srikakulam in Andhra Pradesh. services. In addition to providing lab- their first live tests of LTE Broadcast. Beyond India, the Meghdoot system as-a-service based on the cloud, it will The trial took place at MTS’ office in could be deployed in other countries introduce the Developer Zone that the city of Nizhny Novgorod, while thanks to its compliance with the Wi- supports social engagement among video content was distributed from FAR standard making it compatible for partners. Aachen, Germany, using Ericsson’s use elsewhere. end-to-end LTE Broadcast solution, which shows the feasibility of a fully distributed operator solution. Research Boosts Optical Pre-configured LTE Broadcast- Huawei to invest $1B in enabled mobile devices powered Fiber Data Speeds by Qualcomm Snapdragon810 developer ecosystem In the latest advance to boost the processor with an integrated X10 Huawei is embarking on a charm speed of the Internet, a research team LTE modem. LTE Broadcast delivers a offensive with developers, announcing including, the City College of New totally new video experience, offering it will invest up to $1 billion over the York, University of Southern California, the highest quality broadcast video next five years to build a developer University of Glasgow, and Corning over LTE networks and enabling enablement platform and establish Incorporated, has demonstrated new video services, while helping partnerships with the sector. The a way to increase the data speeds service providers to optimize network announcement of the Developer of optical fibers considered the resources and available spectrum and Enablement Plan was made at Internet’s backbone. “Optical fibers offload networks. The service uses can be sped up by ‘twisting’ data; Single Frequency Network technology, multiple data streams are transmitted such as DVB-T, to distribute the signal and received as different twists of to an unlimited number of recipients. light,” says Giovanni Milione, a City Users only need an LTE Broadcast app College doctoral student at the time. installed on their devices in order to “Thought impossible using standard access the service. During the test, optical fibers which untwist the data, the devices received different video corrupting it, we showed that if the feeds. The necessary features were data was digitally re-twisted, after it enabled on the trial devices featuring was received, it could be recovered.” the Snapdragon™ 810 processor with To digitally re-twist the data, the X10 LTE, which features Qualcomm researchers borrowed a well-known Technologies’ comprehensive LTE technique of radio communication, Broadcast solution for the evolved referred to as ‘MIMO,’ used by cell Multimedia Broadcast Multicast phones and Wi-Fi routers every Service (eMBMS). The solution featured day. “Light’s twists were treated like the chipset, broadcast middleware, antennas,” Milione explains. “Even if multimedia services, and a proven transmitted data was untwisted, it was interface for LTE Broadcast application Huawei’s Developers Congress today received as a different twist (antenna) development. Additionally, the X10 in Shenzen. Ryan Ding (pictured), and recovered.” As a proof of LTE modem supports up to 450 Mbps Huawei’s executive director and principal, the researchers successfully download speed even in intensive use president of products & solutions, transmitted four data streams on cases like 4K video streaming, The said Huawei has opened up its ICT four twists of light over 5 kilometers capability and the flexibility enabled solutions to developers and is building of standard optical fiber. A key to by LTE Broadcast is a powerful tool an open environment and enablement their experiment was a University of for operators wishing to leverage platform for the operator and Glasgow-made device that separates the impact and attraction of media enterprise markets. The aim, he said, and combines light’s twists as a prism content to provide new services and is to help developers create innovative does color. “This development could business opportunities in the digital services and rapidly respond to offer a solution to the insatiable mobile era. According to the latest customers’ business needs. Ding noted needs of data-driven social media, Ericsson ConsumerLab report, 50 that the company has opened up to its such as, Facebook and YouTube, percent of Russian consumers watch developer technologies, such as cloud which continually push optical fiber TV and video on their smartphones, computing, big data, IoT and BYOD. In data speed limits,” said Distinguished and 37 percent are ready to pay for addition to technical cooperation and Professor of Physics Robert R. Alfano. HD-quality video. LTE Broadcast is talent cultivation, Huawei said it will a single-frequency network (SFN) in work out business partnerships with broadcast mode that is part of the developers. Huawei announced that it series of 3GPP LTE standards known will build a developer-centric platform as evolved Multimedia Broadcast

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Multicast Service (eMBMS). It extends CTO of Alcatel Lucent and president that can speak to a base station to existing LTE/Evolved Packet Core (EPC) of its Bell Lab’s division. “Up until enhance reliability. The base stations systems with an efficient point-to- now we’ve designed the networks for will be able to understand it all. That’s multipoint (PMP) distribution feature. people and their needs and now we’re the first technology Qualcomm has Ericsson LTE Broadcast supports a designing it for things.” Unsurprisingly, developed. The second is around range of use cases: live streaming of Qualcomm, a leading chip tech vendor carrier aggregation. Basically, this is video for highdemand content such in the mobile world, is already hard at one of Qualcomm’s major initiatives as live sports, breaking news, most work making upgrades to 5G possible. and basically means adding a bunch of popular media delivery, e.g.popular In an exclusive interview with Fortune, megahertz of spectrum to make one TV show, video, music and e-printing, Qualcomm’s executive vice president big chunk of spectrum. This matters top OTT contents, software updates and chief technology officer Matt Grob because the amount of bandwidth an and emergency broadcasting says the company has been developing operator can deliver is limited by the new technologies to commercialize size of the chunks of spectrum they for use in 5G wireless deployments. have. To get to gigabit speeds over Grob says he expects to see these in wireless an operator needs something Qualcomm readies itself use by 2020. Altogether these new like 80 megahertz of spectrum all for 5G with key technology technologies deal with increasing packed together. But since all the capacity, reliability, and latency. Before good spectrum is taken we can’t breakthroughs we dive in, it’s important to know make whopping huge chunks out of Carriers and the companies that that one way 5G plans to eke out it. Qualcomm’s big breakthrough is support them are preparing the next more capacity is to go after spectrum figuring out how to take spectrum generation of wireless networking that we don’t currently use in what’s used in today’s LTE networks and in called 5G. Every decade or so, the known as the millimeter band. There Wi-Fi networks and in tomorrow’s 5G wireless industry gets behind a new are several challenges with using this networks and squish it all together set of standards to improve the spectrum. The first is that in several in such a way that the radios see it cellular experience for customers and parts of the world, including in the as a contiguous lump of spectrum the bottom line for operators. About U.S., government agencies such as the that consumers can use to get their ten years ago operators began setting military are using it and don’t want to gigabit mobile speeds. Finally, after standards for 4G networks, and as share it with civilian communications. all of the spectrum and radio magic customers moved from 3G to 4G LTE The second is that the spectrum itself has been achieved, carriers still have cell phone owners noticed a big boost doesn’t travel through walls, water, or to make money. Since data is getting in speed. 5G consumers still get a even foliage. That means that rain or to be a commodity and operators are potential speed boost—perhaps up a poorly placed tree blocks reception worried about becoming a dumb pipe, to gigabit speeds—but there is far and any data transmission. The other Qualcomm has built a new network more at stake than just cell phones. part of Qualcomm’s plan is to go after design that lets mobile operators That’s because the 5G upgrade is also capacity by using Wi-Fi networks, create new business models around designed for the Internet of things. which causes a lot of worry about how services. This has been a dream of Unlike all previous versions of wireless existing Wi-Fi networks will behave companies such as Alcatel Lucent ALU networking, this version of technology when cellular phones start trying to 2.30% and Cisco CSCO 1.04% for a standards setting will involve “borrow” their capacity. Qualcomm’s while and so far it hasn’t quite caught automakers, hospitals, and industrial solution to grabbing more spectrum is on, but with the Internet of things it’s conglomerates. Unlike the move to 4G, complex. It plans to build a radio that possible that delivering location-as-a- which was all about boosting capacity, can constantly search for any available service or perhaps selling guaranteed the move to 5G is about creating a spectrum be it millimeter wave, Wi-Fi, latency for telemedicine might finally network optimized for connecting or licensed cellular radio and use that. catch on. These three technologies billions of new devices to the If this sounds similar to what Google are Qualcomm’s contribution to 5G Internet. There’s a capacity increase, and Apple have proposed recently, networks, a future that will arrive because we’re still using up as much it is similar in idea, but different in by 2020 according to Grob. As that bandwidth as we can with 4K Netflix execution. Google GOOG 1.59% and timeline approaches we’re going to on the go and live streaming apps Apple AAPL 1.48% are searching hear from more and more companies such as Meerkat or Periscope on our for the best radio signals using their about their vision for the 5G future. mobile phones. But operators are also respective Android and iOS operating Already Intel and Verizon are working adding technologies that will save on systems, but Qualcomm QCOM 1.14% together to build a partnership battery life, reduce the amount of data will do it at the radio level. The radios around 5G technology. And the fact sent with a mobile data packet, and will be in both phones and in the that Intel INTC -0.30% is involved in speed up the amount of time it takes cellular base stations that operators this is both a testament to how much the data to flow across the network put in towers and around towns. One Intel’s ambitions have stretched, and for sensors, autonomous cars, and useful feature of this technology is how much 5G will expand the role of mobile medicine. That speed is known that battery-powered sensors might cellular as it encompasses the Internet as latency, and it’s going to be a big contain a radio that “speaks” only of things. So get ready for gigabit deal for delivering telemedicine and using a low-power technology to save wireless internet, but know that that’s the huge amount of data autonomous on battery life, but the base station the least of what’s happening in 5G. vehicles need. “All the previous will still be able to hear it. However, a network technologies aren’t quite car might have several types of radios good enough,” said Marcus Weldon,

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Adoption of GSMA an operator to be selected at the limited to one device or operating country of destination. Automakers system. Apple has a similar offering, Embedded SIM can be confident that with the GSMA based purely on its own devices, to Specification helping Specification they have access to allow users to make calls and send the whole market of operators – the messages through Macs or iPads, mobile industry to same cannot be said for proprietary as well as its smartphones. In time, solutions. The IoT market has been in AT&T expects the service to develop benefit from $1.1 trillion need of standardised solutions and this to accommodate even more devices, IoT opportunity demonstrates how mobile operators and said it is actively working with its The recent announcement that are being proactive in addressing ecosystem to integrate NumberSync. operators Indosat, Tele2 and the concerns of auto manufacturers AT&T’s mobility CEO Glenn Lurie Telefónica Vivo have launched and OEM’s.There have already been told Re/Code this could include commercial solutions based on the a large number of operators, auto smartwatches, other wearables and GSMA Embedded SIM Specification manufactures and OEMs that have even connected cars in the future, is further demonstration of its broad formed partnerships in order to while noting pairing smartphones appeal and role in helping to scale capture a share of the connected to cars via Bluetooth remained a the burgeoning machine-to-machine car market, which is indicative of the complicated experience. “This is really confidence in this sector. The success a first in the industry that we are giving of the GSMA’s Specification here will customers the ability to do this,” Lurie likely act as a trigger for the adoption told the publication. The US operator of a standardised interoperable M2M had reportedly been testing the solution across many other verticals. underlying technology under the code It is clear that operators see the value name Cascade since last year, and said of providing commercial solutions there won’t be a separate charge to based on an interoperable and united share one number. Re/Code reports global standard that will allow them many existing smartphones will be to provide scalable, reliable and able to support the feature through a secure connectivity. As the number of software upgrade, with the company (M2M) and Internet of the Things (IoT) adopters of the GSMA Embedded SIM looking to work with all manufacturers markets. These recent deployments Specification increases, economies of going forward. mean that eleven operators have scale will drive down the cost.Analyst now launched commercial solutions firm Machina Research estimate that based on the GSMA Specification, the total addressable M2M revenue Spending on Mobile with a further fourteen committed opportunity for operators will be USD to launch solutions in future. It has $1.1 trillion by 2020. Operators looking Technologies to Reach quickly become the de facto industry to capitalise on this should ensure $1.2 Trillion by 2019 standard and a common language, their solutions are compatible with the reducing market fragmentation and Specification as soon as possible. Organizations across industries are helping to connect everything and increasingly leveraging mobility to anything to the internet, such as smart transform their businesses. Mobility meters, traffic lights, cars and industrial AT&T’s NumberSync may have started with the simple equipment.GSMA Intelligence has concept of shifting employees from calculated that nearly 75 per cent promises one phone being deskbound to being mobile. of global M2M connections are number across all now serviced by mobile operators deployed or committed to the GSMA’s devices solution, underscoring the momentum AT&T is readying NumberSync, a new behind the Specification. The GSMA feature that will allow its customers Embedded SIM Specification has to share a single number across been widely adopted because it smartphones, tablets and other devices offers significant advantages over through its network. The service, propriety solutions. It gives a clear which will launch “fairly soon”, will be advantage to end users in that they designed for its customers to own and will be able to swap profiles ‘over use multiple devices that have built the air’ without having to replace the in wireless connections and connect SIM itself – something particularly to a primary phone number. This useful for devices that are hard to means users can send or receive texts reach or stored in remote locations. and calls from a number of devices But it has advanced and evolved in One of the primary applications of through that same recognisable such ways that many organizations the GSMA Specification will be in the number. The US operator said the are embracing capabilities unique to automotive sector, where there is high service is network-based, meaning it mobility and unique to their industries. demand for features such as tracking, will work “even if your primary phone Each vertical is different in terms of its vehicle diagnostics and infotainment. is turned off or disconnected from underlying industry drivers, barriers, The GSMA Specification is ideal for the network”, and will also not be global products, because it allows

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and potential benefits. Industry- Huawei, DOCOMO we continue working on 5G research.’ specific applications will be a driving Huawei plans to launch the first 5G force as businesses look for solutions conduct field trial of pilot networks with its partners in that can be easily configured to 5G new radio access 2018, and aims to contribute to the their unique business and vertical 5G industry ecosystem to complete requirements. Key findings from the technologies interoperability testing in 2019, before new report include: Chinese equipment vendor Huawei commercially launching 5G networks has claimed the world’s first successful in 2020. • Worldwide, the manufacturing large-scale field trial of 5G new radio sector represents the largest access technologies, in cooperation enterprise opportunity for mobile with NTT DOCOMO, Japan’s Cisco security technologies. The industry’s largest mobile network operator sizeable economic footprint by subscribers. The two companies researchers disable and global operations create a announced their partnership on big distributor of naturally large market. joint trials of the new air-interface technologies for 5G in March 2015. • Consumer-centric industries such ‘ransomware’ The field trial, which took place at as retail, media, and personal and Cisco Systems Inc said it had managed an outdoor test site at Chengdu in consumer services are leveraging to disrupt the spread of one of the China, represents the first large- mobility to engage and connect most pernicious systems for infecting scale Multi-User MIMO (MU-MIMO) with their customers to improve Internet users with malicious software technology test with a concurrent their experience, bolster loyalty, such as so-called ransomware, which connectivity of 24 user devices in the and generate larger sales per demands payment for decrypting macro-cell environment on the sub- customer. users’ data. The investigators from 6GHz frequency band. Huawei claims Cisco’s Talos security unit were looking • There are still numerous concerns it is also the first time to validate the at the Angler Exploit Kit, which around mobility (and all of the performance of Sparse Code Multiple analysts at several companies say has other pillar technologies). Security Access (SCMA) and Filtered OFDM been the most effective of several and regulatory issues remain (F-OFDM) in the field, both of which kits at capturing control of personal the biggest barrier for mobile are 5G new air interface technologies computers in the past year, infecting technology adoption across proposed by Huawei. ‘This joint field up to 40 percent of those it targeted. industries such as government trial represents a significant advance and financial services. toward fulfilling Huawei’s commitment to developing 5G technology They found that about half of computers infected with Angler were According to the report, IDC estimates standards before 2018,’ commented connecting to servers at a hosting that $901 billion was spent worldwide Dr. Wen Tong, CTO of Huawei Wireless provider in Dallas, which had been on mobile technologies in 2014. Networks, adding: ‘Results like these hired by criminals with stolen credit Wireless data and smartphones show we are making rapid progress cards. The provider, Limestone comprised the lion’s share of this and are on the right path. I am Networks, pulled the plug on the spending. The opportunity is forecast confident that what we have learned servers and turned over data that to reach $1.2 trillion by 2019. here will be reflected in even more helped show how Angler worked. Excluding consumer spending, the innovative technological advances as industries expected to spend the most for mobile technologies include discrete and process manufacturing and professional services. Combined, these three segments will represent 17% of the market in 2019. The areas of greatest growth include personal and consumer services, media, and the banking industries. “More than ever, mobile technologies are empowering workers across industries to connect, collaborate, and create new ways to operate and do business,” said Jessica Goepfert, Program Director of IDC’s Global Technology and Industry Research Organization. “It goes beyond providing a smartphone to liberate the deskbound worker. Instead, it’s about utilizing mobile technology to increase sales, improve productivity, and raise customer and employee satisfaction.”

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The research effort, aided by carrier the highest amount of penetration, at Edge Computing (MEC) can bring Level 3 Communications, allowed over 50%, and it was among the first solutions to many of these issues. This Cisco to copy the authentication vertical markets to adopt cellular M2M White Paper outlines how Mobile Edge protocols the Angler criminals use to connectivity. The single-space parking Computing is characterized by low interact with their prey. Knowing these meters market is among the segments latency, proximity, high bandwidth and protocols will allow security companies that is growing at the most rapid pace real-time insight into radio network to cut off infected computers. “It’s on account of increased adoption in information and location awareness. It going to be really damaging to the recent years. Meanwhile, the wirelessly provides examples of how applications attacker’s network,” Talos manager connected POS terminals market is such as connected vehicles, e-Health, Craig Williams told Reuters ahead of comparatively more mature than industry automation, augmented the release of the report. Cisco said others and most of the market growth reality, intelligent video acceleration, that since Limestone pulled the plug is on account of growing adoption gaming and IoT services can each on the servers, new Angler infections of electronic payments in emerging benefit from Mobile Edge Computing. had fallen off dramatically. Limestone’s markets. The report delves into the ETSI has established an Industry client relations manager told Reuters potential market size for wireless M2M Specification Group on Mobile Edge his company had unwittingly helped communication in the retail industry, Computing (ISG MEC), to develop the spread of Angler before the Cisco important applications that provide a standardized, open environment investigation. Often sold in clandestine adequate business potential and that will allow efficient and seamless Internet forums or in one-to-one trends and developments impacting integration of third-party applications deals, exploit kits combine many small each vertical market segment. It across multi-vendor platforms. programs that take advantage of flaws also covers the foremost players of The group, which started work in Web browsers and other common vending telemetry solutions, insight in December 2014, is developing pieces of software. Buyers of those into how the market for wireless ATM terminology, service scenarios, kits must also arrange a way to reach connectivity solutions is growing, the technical requirements (including their targets, typically by sending foremost players offering connected use cases and their benefits) and a spoof emails, hacking into websites or parking meters, the number of framework and reference architecture. distributing malicious advertisements. connected digital signs across the When the first documents reach Once they win control of a target’s globe while providing a region-wise maturity, work on platform services, computer, exploit kit buyers can breakdown of the attach rate for APIs and interfaces will begin. Mrs. install whatever they want, including cellular connectivity in POS terminals, Nurit Sprecher of Nokia, chairman so-called ransomware. This includes and insight into the development of of MEC ISG, commented: “I truly a number of branded programs, the market for public transport fare believe that Mobile Edge Computing also sold online, that encrypt users’ collection systems. technology can stimulate innovation computer files and demand payment and enable a myriad of new use cases to release them. Talos estimated that across multiple sectors that can take if three percent of infected users the mobile broadband experience paid the ransom averaging $300, the ETSI’s Mobile Edge to a completely new level, bringing criminals that had used the Limestone Computing Initiative benefits for all stakeholders and servers to spread Angler could have consumers.” The group has released made about $30 million a year. Explained its Proof of Concept (PoC) framework ETSI has published a white paper specification. Proofs of Concept are on Mobile Edge Computing, a essential to demonstrate Mobile Edge key emerging technology which Computing as feasible and valuable, M2M retail sector is considered to be an important to validate the specifications that are analyzed in latest component of future generation being developed, to reduce time to networks, including 5G. Mobile market, to demonstrate use cases, and industry research Edge Computing is an IT service ultimately to help develop a diverse A report from Research and Markets environment and cloud computing and open MEC ecosystem. has assessed the retail sector capabilities located at the edge of for machine to machine (M2M) the mobile network, within the Radio communications and argues the Access Network and in close proximity market for wirelessly connected point to mobile subscribers. As telecom of sale (POS) and multi-space parking operators are facing new challenges meters are among the most advanced with ever growing mobile traffic and aspects in the space. According to Berg continued cost pressure, there is a clear Insight, the number of cellular M2M need to improve the end user quality connections in the retail industry will of experience, generate revenue, and rise to 44.3 million by 2019, up from optimize network operations. The 23.1 million in 2014 at a compound Internet of Things is predicted to annual growth rate (CAGR) of 13.9%. further congest networks. Application Wireless M2M communication and content providers are challenged technology is witnessing robust with the latency of the network when adoption in the retail sector in the connecting to the cloud. Enterprises spheres of POS terminals and on- want the ability to engage with their street parking solutions. The multi- customers with more efficient, secure space parking meter segment boasts and low latency connections. Mobile

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TD-LTE is deployed more often in emerging markets than in developed markets

413 commercial LTE networks were TD-LTE has enjoyed wider launched worldwide by the end of 2Q deployment than FD-LTE in 2015, according to Analysys Mason’s emerging markets, where BWA is recently updated FD-LTE accounts for 348 (or 84%) of them, while TD-LTE an attractive option accounts for only 55 (or 13%). It is not TD-LTE networks have commanded a clear which duplexing technology – FD or greater share of LTE network launches TD – has been used for the remaining 10 in emerging regions compared with launches (or 2%). developed regions (see Figure 1).

TD-LTE has been deployed more widely BWA is an attractive technology option than FD-LTE in emerging markets, for operators in countries (particularly compared with its deployment in those in emerging regions) where wired developed markets. This is partly because access networks are either unavailable TD-LTE is more suitable than FD-LTE for or unreliable. WiMAX technology was broadband wireless access (BWA), which often deployed in the 2000s in order to is in strong demand in emerging regions. provide BWA in emerging regions, but The relatively low level of deployment waning vendor, operator and consumer of TD-LTE in developed regions such as interest in this technology has prompted Europe suggests that a ‘spectrum crunch’ operators to reassess the future of their either does not exist in these areas or WiMAX networks. has been mitigated by the release of substantial amounts of paired spectrum Operators consider TD-LTE to be an by national regulatory authorities (NRAs) attractive BWA replacement for WiMAX to operators, including licences for the because: use of 700MHz and 800MHz digital dividend licences. In this comment, we Morgan Mullooly • most WiMAX deployments use Analyst focus on the reasons why there is an unpaired, TD spectrum in the 2.5GHz Analysys Mason unequal distribution of TD-LTE network and3.5GHz bands, and these bands launches worldwide. have since been designated by the

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3GPP as being suitable for TD-LTE In particular, there has been a series spectrum available to operators is • TD-LTE is ‘future-proof’ – it has of spectrum licence auctions in high frequency (supra-2GHz). a reasonably long evolution Europe during the past 5 years. NRAs • Weak wireless data traffic roadmap and should remain in Europe have awarded unpaired growth in Europe has discouraged a relevant and supported spectrum licences to 21 operators, investment in TD-LTE networks. Europe technology throughout the next according to our recently published recorded the lowest annual mobile decade Spectrum auction tracker. However, data traffic growth rates in 2013 of any • TD-LTE enables operators to none of them has launched a TD-LTE region – 48% in Central and Eastern reserve paired FD spectrum network yet (see Figure 2). Europe, and 54% in Western Europe – for mobile services, which compared with a worldwide average of mitigates against congestion in • Operators are focused 78%, as reported in Analysys Mason’s the spectrum from fixed–mobile on securing wide LTE coverage by Wireless network traffic worldwide: substitution usage profiles. deploying low-frequency FD-LTE forecasts and analysis 2014–2019. networks. The European telecoms Although TD-LTE deployments can add generous capacity to operators’ networks (thanks to the large tracts of spectrum that are typical of high-frequency unpaired spectrum licences), the relatively low number of TD-LTE deployments in the region suggests that networks in Europe are not congested enough to motivate operators to invest in deploying these types of network. • Wireless broadband consumers in Europe mainly use mobile broadband rather than BWA. Fixed networks are adequate in most developed countries, and as a result, this weakens demand for BWA. Consequently, operators are focused on optimising their networks for handset users. For example, the iPhone is a popular handset in this region, but it only achieved TD-LTE support in its European variant for its latest iteration (iPhone 6/6+), which was launched in 3Q 2014.

Figure 1: LTE network launches by duplex type and region, 2Q 2015

Low TD-LTE deployment in market is fiercely competitive. Much developed regions suggests that of the paired there are no spectrum shortages low-frequency (sub-1GHz) and or they have been eased mid-frequency TD-LTE has not been widely deployed (sub-2GHz) in developed regions – despite spectrum has much speculation within the wireless been auctioned industry during the past decade that and refarmed in a ‘spectrum crunch’ was inevitable. Europe in the past This seemed likely because mobile 5 years. Operators network operators’ (MNOs’) have focused on spectrum assignments were not able deploying FD- to adequately meet the increasing LTE networks consumer demand for mobile using that broadband data. However, national spectrum, which regulators have addressed these ensures that wide concerns by awarding MNOs with coverage can be more spectrum licences for the use of achieved quickly. both paired and unpaired spectrum. In comparison, the unpaired

Figure 2: Summary of spectrum licence auctions in Europe in which unpaired spectrum was offered to operators, 2010–2015

1 See Analysys Mason’s Analyst view: TD-LTE is the future for TD-SCDMA and WiMAX operators like China Mobile and Sprint

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SATELLITE NEWS

Eutelsat Orders Europe’s Ohio State to Lead First Spacebus Neo HTS NASA Radio Interference Satellite from Thales CubeSat Mission Alenia Space NASA has selected the Chair and Professor of Ohio State’s Department of Electrical Eutelsat announced an agreement with and Computer Engineering Joel Johnson Thales Alenia Space for a new High to lead an agency program to help Throughput Satellite (HTS) based on mitigate the impact of manmade Radio the Spacebus Neo platform. The all- Frequency Interference (RFI). The agency electric satellite is planned for launch in awarded the university $5.6 million for 2019, where it will provide broadband to the CubeSat Radiometer RFI Technology users in Africa. The baseline mission of Validation (CubeRRT) mission, which the new satellite is to provide 75 Gbps aims to demonstrate RFI technologies for of capacity across a network of 65 spot Satellite Earth-sensing microwave radiometers, beams that together provide quasi- enabling scientists to remotely sense complete coverage of Sub-Saharan Updates global properties such as soil moisture, Africa. The satellite will address direct-to- atmospheric water vapor, sea surface user consumer and enterprise broadband temperature and sea surface winds. services. It will also be used for “Successful RFI mitigation by CubeRRT community networks connected to Wi- will not only improve the possibility Fi hotspots, mobile phone backhauling, of microwave radiometry in an RFI and rural connectivity. Thales Alenia intensive environment, but may also Space developed the Spacebus Neo in allow future systems to operate over partnership with the European and French a larger bandwidth resulting in lower space agencies. In the coming months, measurement noise,” said Johnson. Ohio Eutelsat has the option to upscale the State, one of the four selected projects, is satellite to significantly increase overall working in partnership with investigators throughput and service areas. Eutelsat’s from NASA Jet Propulsion Laboratory African broadband business, including and NASA Goddard Space Flight Center. sales, will be managed by a newly created The academic institution is the only London-based affiliate. The new satellite national university leading a team for follows a recent agreement to provide NASA’s In-Space Validation of Earth high throughput connectivity to Africa Science Technologies (INVEST) program. with Facebook on Spacecom’s Amos 6 Johnson’s Ohio State team has focused on satellite. detecting and discarding manmade RFI

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from the Earth’s naturally fluctuating funding from the U.S. Army for Diamond, and though no longer microwave signals since 2001. The sustainment of the AN/TSC-198A buying the company, is seeking to give team’s RFI system will fly in space as SNAP (Secret Internet Protocol Router the idea a fresh start. “They had some part of a 6U CubeSat measuring 20 cm (SIPR) and Non-classified Internet good assets,” said Spott. “The general by 30 cm by 10 cm, with a potential Protocol Router (NIPR) Access Point) architecture of the constellation, the launch date in 2018 Very Small Aperture Terminals technology they always kept up to (VSATs). Ruggedized and designed for date. It was state of the art.” EightyLEO transport, the TCS SNAP VSATs provide joins other LEO communications secure communications for voice, projects such as OneWeb, SpaceX Boeing Wins Silkwave video and data. Combined with the and LeoSat in the resurgence of 1 Satellite Contract for initial funded contract value of $18.6 enthusiasm around providing million, this brings funding to date connectivity from Non-Geostationary Telecommunications in to $23.6 million. The ceiling contract Orbits (NGSO). Spott said eightyLEO is Asia value, including funded and unfunded carefully reevaluating the architecture amounts, is nearly $91 million through for the constellation, with hopes of Boeing has received a satellite order September 2018, if the Army exercises launching test satellites in the second from New York Broadband (NYBB) all options. half of 2016. EightyLEO still has access to construct a satellite on its Boeing to technology from Diamond through 702 platform to serve mobile users in key personnel in the extended project China, India and other Asian markets. network. Denver, Colo.-based NYBB, which EightyLEO Details owns 12 Ultra-High Frequency (UHF) channels in the U.S., is procuring Vision for IoT SmallSat the satellite and will lease capacity Constellation APT Satellite Launches to CMMB Vision. Located in Hong German entrepreneur Matthias Spott Kong, CMMB Vision plans to use the Apstar 9, orders Apstar is developing a European network of satellite to provide a comprehensive small communications satellites in Low 6C from CAST suite of media and information Earth Orbit (LEO) using a revamped APT Satellite launched Apstar 9, its services to Asian customers. CMMB constellation project from the 1990s. replacement satellite for Apstar 9A, on Vision is planning a new service in The company, called eightyLEO, October 17 aboard a Long March 3B/E Asia based on “Converged Mobile is seeking to galvanize the space rocket. Apstar 9 is based on China Great Media Broadcasting,” the mobile industry throughout Europe to build Wall Industry Corp.’s (CGWIC) DFH-4 handheld TV technology standard and deploy the constellation with an series platform and carries 39.5 C-band in China. Silkwave 1 will eventually intense focus on end user applications 36 MHz Transponder Equivalents (TPE) take the 105 degrees east-orbital slot in the commercial sector. Spott and 21 Ku-band TPEs. The spacecraft’s currently occupied by NYBB’s AsiaStar founded eightyLEO in early 2015 as a C-band payloads cover the Asia Pacific spacecraft, along with its L-band vehicle to resurrect a German-based and South East Asia, while its Ku-band spectrum rights. Silkwave 1 will offer company that was working on a “world footprint stretches from the East Indian 100 times greater transmission power phone constellation” since the 1990s, Ocean to the West Pacific Ocean, than the spacecraft that it will replace. similar to that of Iridium and Globalstar. targeting In-Flight Connectivity (IFC) The new satellite will be based on a The original company filed with the and maritime broadband verticals. variant of the Boeing 702 platform with International Telecommunications Immediately following the launch, APT solar cells generating 14 Kw of power Union (ITU) for spectrum, but never Satellite entered a contract with CGWIC and carrying a 9-meter reflector. The acquired the funding to orbit the for Apstar 6C. Also based on the DFH- launch is planned for 2018, and NYBB constellation. In an interview with 4 platform, Apstar 6C will be equipped will decide on the provider. “With Via Satellite, Spott said this company, with 45 transponders in C, Ku, and Ka this new Boeing satellite, Silkwave codenamed “Diamond” to honor bands, with a design service life of 1, we will realize a vision to deliver Non-Disclosure Agreements (NDAs), quality multimedia capabilities to the had valuable assets that can still be consumer on the move,” said Charles used today to form a commercially Wong, chairman and CEO of CMMB competitive satellite network in space. Vision. “Video, voice, data and other EightyLEO jumpstarted the program new digital media will become more this year, and originally found an readily available than ever before investor who was willing to finance the along the Silk Road of Asia, one of the purchase of Diamond’s shares along most historically significant routes for with six months support to modernize commerce in the world.” the effort. Diamond’s most valuable asset was its access to spectrum at a time when, according to Spott, US Army Awards other LEO satcom programs lacked TeleCommunication this resource. However, the existing 15 years. Apstar 6C is a replacement shareholder failed to complete the satellite for Apstar 6, which launched Systems $5 Million for ITU’s regulatory process by filing a in 2005, and is also able to serve as a Additional VSATs Coordination Request (CR) with the backup plan for other under-planning ITU. Nonetheless, eightyLEO still Apstar satellite programs. The satellite TeleCommunication Systems (TCS) saw value in the technology from is being designed for high-power has received $5 million in incremental

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SAMENA TRENDS _ OCT 2015 SAMENA TRENDS _ OCT 2015 transponder services to customers X-band marine VSAT terminals. Bangladesh. A bidder said, even if the across the Asia-Pacific region such Under the agreement, Norsat will work order is given now, it will take at as VSAT, video distribution, DTH supply its MarineLink COM12 1.2m least 26 months to launch the satellite. television and cellular backhaul. and MarineLink COM15X 1.5m dual But project officials remain confident. antenna maritime VSAT terminals for “Though we are not on schedule, we seafaring vessels, including naval ships. are confident that we can complete Additionally, Norsat’s proprietary Low everything according to plan,” said Md Yahsat orders Newtec Noise Block (LNB) downconverters Golam Razzaque, the project director Dialog Multiservice VSAT and Atom Block Upconverters (BUC) of the Bangabandhu-1 satellite. On will be integrated into the MarineLink June 18, Bangladesh Telecommunica- Platform for Brazil terminals. Both the COM12 and tion Regulatory Commission received UAE-based satellite operator Yahsat, COM15X include Norsat’s latest bids from four companies -- France’s has awarded a new contract to Newtec technical upgrades such as heavy-duty Thales Alenia Space, China’s Great for its Newtec Dialog multiservice industrial grade motors, advanced Wall Industry Corporation, USA’s VSAT platform, including VSAT high-speed acceleration and braking, Orbit ATA and Canada’s MDA. Work baseband hubs, user terminals, and high gain and low-loss antenna and orders were supposed to be given the Operating Support System (OSS) RF filter chain, and conformance to by the first week of September, but and Business Support System (BSS). military standards for high impact the evaluation committee is yet to do The contract also caters for the supply shock, vibration, and Electromagnetic so. To approve any bid, the technical of various types of Customer Premise Compatibility (MIL-STD-901D, MIL- evaluation committee first needs to Equipment (CPE). The turnkey solution STD-167, MIL-STD-461 for EMC). present its report to the line ministry, provided by Newtec, in partnership In addition, the COM15X will be which will then recommend it to the with Tech Mahindra, is integrated with officially going through Army Force government’s purchase committee. an Oracle platform to strengthen the Strategic Command’s (ARSTRAT) WGS Next, it will await prime minister’s OSS/BSS layer. Tech Mahindra has certification process. WGS certification approval before the work orders more than 20 years of experience gives the COM15X permission to can be awarded to any bidder. The in delivering OSS/BSS solutions to operate on the high-capacity WGS proposal will need Prime Minister global telecom operators and has a satellite constellation controlled and Sheikh Hasina’s approval twice, strong presence in Brazil. Yahsat’s third operated by the U.S. government. Due both before and after the purchase satellite, Al Yah 3, is scheduled for to ARSTRAT’s WGS certification timing committee’s nod, as she is also the service launch in early 2017, extending requirements, Norsat expects to begin minister for posts, telecommunication the company’s commercial Ka-band MarineLink terminal deliveries during and ICT, officials working on the project coverage to an additional 19 countries the fourth quarter of 2016 said. The project implementation and 600 million users across Brazil and committee has already extended the Africa. Al Yah 3 will cover more than tender validation date to November 95 percent of Brazil’s population. This 30, from the previously fixed date of latest partnership is in preparation Bangladesh’s October 15, a top executive of a bidder for these developments, and is in line Bangabandhu satellite company said. “The date will need to with Yahsat’s strategy to appeal to be extended further.” Officials of the wider demographics in the markets may miss deadline project implementation committee in which it operates. While Newtec is The launch of Bangladesh’s first have also voiced concern about the preferred partner for the Brazilian satellite is facing a setback due to meeting the deadline, especially market, the Newtec platform may also delays in awarding related jobs after because the decision is complex as be deployed in other territories across the original deadline to complete three of the four bidders do not even Yahsat’s footprint. “This latest contract the project expired in June. The have their own launching pads. The award to Newtec signifies the first time government now has a plan to launch satellite is so far the most sophisticated a satellite operator is set to integrate the satellite -- Bangabandhu-1, meant technological project undertaken by a fully-fledged OSS/BSS into the VSAT for communication and broadcast Bangladesh, worth about Tk 2,967.96 service platform for both wholesale services -- on December 16, 2017 and crore. Of the amount, some Tk and consumer segments. By doing so, use the following six to eight months 1,652.44 crore will be from foreign we are extending our service offering to fine-tune its orbital position. loans and the government will supply and ensuring a high level of customer Bangladesh bought the orbital slot Tk 1,315.51 crore. Of the loans, 85 experience for all,” said David Murphy, from Intersputnik, a Russian satellite percent will have to be brought in by Yahsat’s Chief Commercial Officer company, for $28 million early this the winning bidder. All the bidders (CCO). year, and the purchase contract agree that it will be difficult to launch mandates launch of the satellite by the satellite in time. “None can June 2018. If delayed, both money and maintain the December 2017 deadline the orbit will be forfeited. If launched under the current circumstances,” said Norsat Receives $2.7 in time, the orbit will remain valid for Zakir Hossen, a local consultant of the Million Military Contract fifteen years, after which, the deal Great Wall Industry Corporation. “Only will have to be renewed. The foreign Great Wall has a chance of meeting for Maritime VSATs companies that have participated in the deadline as we have our own A U.S. military contractor has awarded the bidding are of the opinion that launching pad,” he said. Great Wall is Norsat International a $2.7million there is not enough time left to install currently the fourth choice out of the contract for its Ku-band and Wideband and launch a commercial satellite bidders, as it has the highest stipulated Global Satcom (WGS)-certified for an inexperienced country like costs, and MDA is the first choice

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for its lowest bid of $222.75 million, Global VSAT Forum (GVF), announced and the ETC network, we Endeavour officials said. Thales Alenia Space of the signing of a Crisis Connectivity to ensure that by 2020 all those France is the second lowest bidder Charter with the global humanitarian responding to disasters, including with $248 million. However, financial community represented by the affected people, can communicate aspects are not the only criteria to UN Office for the Coordination of to respond, recover and redevelop. select the best bidder, as the technical Humanitarian Affairs (OCHA) and Mobilizing their members in this way, sides also have to be considered, the Emergency Telecommunications ESOA and GVF are supporting the ETC officials said. Currently Bangladesh’s Cluster (ETC). Embodying a in making this vision a reality.” Signing satellite-related needs are met by commitment from the satellite for GVF, David Hartshorn, Secretary renting bandwidth from different community to enhance connectivity General noted: “Our members provide operators, for almost $14 million a in humanitarian emergencies, the emergency communications on all year, with the costs increasing every Charter formalizes terms and protocols continents using key satellite spectrum year. Once launched, Bangabandhu-1 designed to accelerate the ability of such as the C-band. We hope will save this annual cost, and bring emergency response teams to access governments and administrations the in foreign currency by leasing out satellite-based communications when world over will recognize the vital role half its capacity to Saarc nations, as local networks are affected, destroyed satellite operators play in the globe’s well as countries like Indonesia, the or overloaded after a disaster. The telecommunications infrastructure Philippines, Turkmenistan, Kyrgyzstan principles of the Charter also include and its ability to ensure an immediate, and Tajikistan, if the frequencies are increased coordination to prioritize robust and resilient response to properly coordinated. The telecom access to bandwidth for humanitarian disasters.” regulator hopes to break even in purposes during disaster operations, seven years. The satellite will narrow pre-positioned satellite equipment the digital divide, as it will help take and transmission capacity at times broadcast and telecom services to of disaster in 20 high-risk countries 7 Satellite Operators rural areas, and allow the launch of in Europe, the Middle-East, Africa Sign UN’s Crisis some lucrative ventures like direct-to- and Asia, as identified by the ETC home services throughout the country and beyond, as well as training and Communications Charter capacity building for the humanitarian Eutelsat, Hispasat, Inmarsat, Intelsat, community across all five continents. SES, Thuraya and Yahsat, under Aarti Holla, Secretary General of ESOA: the umbrella of the EMEA Satellite Satellite operators sign “ESOA is honored to have led this Operators Association (ESOA) and Crisis Connectivity effort on behalf of member satellite the Global VSAT Forum (GVF), signed operators who collectively deliver a Crisis Connectivity Charter with Charter global coverage and connectivity. We the global humanitarian community In the past year alone, global natural have to recognize that number of represented by the UN Office for disasters including in Vanuatu, Nepal crises around the world is increasing the Coordination of Humanitarian and the Philippines demonstrated both as a result of climate change and Affairs (OCHA) and the Emergency the critical role of communications geo-politics. As a result, the unique Telecommunications Cluster (ETC). The in the wake of crises. The satellite ability of satellite solutions to help charter formalizes terms and protocols sector is systematically part of the first save lives is becoming indispensable designed to accelerate the ability of responder team, providing immediate and the Charter will enable the ETC emergency response teams to access communications links that support to trigger pre-positioned satellite satellite-based communications when supply logistics, urgent medical care solutions in any one of their 20 high- local networks are affected, destroyed and coordination of relief efforts. risk countries or beyond.” Signing or overloaded after a disaster. The At the World Humanitarian Summit the Charter on behalf of UN OCHA, principles of the charter also include Global Consultation held in Geneva, Stephen O’Brien, UN Under-Secretary increased coordination to prioritize the world’s leading satellite operators, General for Humanitarian Affairs and access to bandwidth for humanitarian Eutelsat, Hispasat, Inmarsat, Intelsat, the UN’s Emergency Relief Coordinator purposes during disaster operations, SES, Thuraya and Yahsat, under said: “The humanitarian community pre-positioned satellite equipment the umbrella of the EMEA Satellite relies on satellite communications and transmission capacity at times of Operators Association (ESOA) and the as they are the only technology that disaster in 20 high-risk countries in are immune to natural disasters and Europe, the Middle-East, Africa and that can be immediately deployed, Asia, as identified by the ETC and regardless of constraints such as beyond. Operators will also boost geography. This is a significant step training and capacity building for the for the humanitarian community and humanitarian community around the a step change in the way we have world. “The charter seeks to ensure worked with satellite operators in improved access to communications the past.” Chair of the ETC and Chief services in humanitarian emergencies, Information Officer of the World Food and with satellite services we can save Program (WFP), Jakob Kern, noted: lives. Through the Crisis Connectivity “The Charter seeks to ensure improved Charter and the ETC network, we access to communications services in endeavor to ensure that by 2020 humanitarian emergencies, and with all those responding to disasters, satellite services we can save lives. including affected people, can Through the Crisis Connectivity Charter communicate to respond, recover

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SAMENA TRENDS _ OCT 2015 SAMENA TRENDS _ OCT 2015 and redevelop. By mobilizing their Satellite, told Via Satellite that the David Watkins, director of connected members in this way, ESOA and GVF operator has more spacecraft planned home devices at Strategy Analytics, are supporting the ETC in making this and is interested in having High confirmed this point. “China is still the vision a reality,” said Jakob Kern, chair Throughput Satellite (HTS) capabilities leading market having accounted for of the ETC and chief information officer on many of them. “We have plans for 70 percent of global [4K TV] shipments of the World Food Programme (WFP). additional spacecraft beyond Apstar 9 in 2014 and we forecast it will account and the Apstar 5 replacement,” he said. for 56 percent in 2015. We forecast “Details of the future satellite are still to shipments in China of 15.4 million be finalized, but one thing is for sure: units in 2015 up from 8.5 million in Ericsson Signs First we will have also HTS payload in the 2014, Watkins told Via Satellite, adding Managed Rural Coverage future satellites.” Apstar 5, also known that the research firm is not aware of as Telstar 18, is a joint spacecraft with much, if any, 4K content activity in deal with MTN Benin Telesat of Canada. Baozhong said China. “From the streaming side 4K is Ericsson, with customer MTN, has APT Satellite is currently working with a non-starter in China,” he said. “With reached its first Managed Rural Telesat on designing the replacement an average broadband speed of 3.7 Coverage deal to bring mobile satellite. Telesat said earlier this year Mbps (source: Akamai State of the coverage as a service to parts of that it anticipates placing an order for Internet Report) there is no way you central and northern Benin where the replacement satellite by the end can stream 4K in China, and we are there was none previously. Managed of the year, and that the company is not seeing anything from traditional Rural Coverage is a cost-competitive also considering high throughput broadcasters.” Watkins said Japan and solution whereby Ericsson enables capabilities. HTS is on the rise in Asia, South Korea, which have more traction operators to provide mobile coverage as many operators consider leveraging toward Ultra-HD, have the highest for a set period according to service advanced satellites. Australia’s NBN Co penetration of 4K TV sales outside of level agreements and defined key recently launched the first of two HTS China. Strategy Analytics forecasts 4K performance indicators. In this case, satellites last month and China Satcom to account for 11 percent of total TV Ericsson and MTN Benin have signed ordered equipment for its first HTS sales in each country in 2015. Watkins an agreement for five years. Under satellite, ChinaSat 16 in August. More linked most 4K to Over-the-Top (OTT) the terms of this contract, customers operators, such as Intelsat, Eutelsat, services, and that, said outside of will gain access through Ericsson’s O3b and ABS, along with newcomer South Korea and Japan, most places low-power consumption radio base Kacific, are all planning for HTS capacity have insufficient bandwidth to support stations running on solar energy to in the region as well. Research firm such services. This could present an avoid the high costs and emissions NSR forecasts geostationary HTS will opportunity for satellite operators, as associated with diesel generators. bring roughly 300 Gbps of HTS supply a lack of terrestrial telecommunication Satellite will enable transmissions to to Asia by 2020 in one of its latest infrastructure often translates to avoid the high costs and civil works reports. Apstar 9’s C-band payload will greater demand for satellite. Japan’s associated with building a microwave mainly serve South East Asia, while the B-SAT is preparing for 4K and 8K with backhaul network in remote villages. four Ku-band beams target multiple its newest satellite, and Watkins noted According to Ericsson, this makes it verticals, with maritime being a large South Korean satellite broadcaster possible to create a business model to focus. Baozhong said the Ku beams KT Skylife has launched three 24- provide mobile coverage to parts of cover almost the whole South Pacific hour 4K channels. In India, satellite Benin where people have to survive on region and part of the Indian Ocean, broadcasters Tata Sky and Videocon less than two dollars a day. where APT Satellite sees the busiest have also launched 4K services with a routes for ships and aircraft, leading to single channel each, he said. Though “huge growth potential,” for aviation much of APT Satellite’s revenue comes and maritime, he said. China Eastern from the Asia-Pacific, the company’s APT Satellite Interested Airlines demoed In-Flight Connectivity fleet covers 75 percent of the world’s in More High (IFC) with APT Satellite last year, and population. Compared to the first Baozhong said he anticipates it is only half of last year, APT Satellite’s profit Throughput Satellites a matter of time before all airlines increased by 9.6 percent during the BHong Kong-based satellite operator start providing passenger connectivity. first half of 2015, despite increased APT Satellite wants to include higher In September APT Satellite signed competition in its core market. throughput payloads on future a capacity agreement with Sinosat Baozhong said that APT Satellite satellites and sees mobility markets and Shenzhen Marinesat on Apstar considers itself a global operator, growing in importance. The company 9 focusing on the maritime market. though one region of the world currently operates a fleet of five The Asia Pacific is a strong market for remains beyond its coverage. Future satellites, and has a sixth, Apstar 9, video broadcasting as well, with Japan satellites could change that. “Currently slated to launch Oct. 17 from China’s and South Korea among the leaders APT Satellite’ s revenue is mainly from Xichang Satellite Launch Center. Apstar in 4K Ultra-HD. China leads the world the Asia Pacific — including Australia 9 supports C- and Ku-band payloads, in the number of 4K televisions sold, and New Zealand — South Asia, including a high-powered steerable however, Baozhong does not expect Southeast Asia, Middle East, North spot beam for Direct-to-Home (DTH) this to lead to 4K broadcasts anytime America, Africa and Europe. Therefore, television and data transmission over soon. “China will first complete its we are already a truly global satellite Papua New Guinea, the Philippines, transition from SD to HD, which operator. However, geographically Southeast Asia, Mongolia and other will take very long, before it starts we do not have capacity covering the regions. Huang Baozhong, EVP of APT commercial 4K broadcasts,” he said. American continent yet and maybe

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it is desirable to have capacity that is reusability in new launch systems. able to serve this region but we do not Speaking at the Hosted Payload and have concrete plan yet,” he said. SmallSat Summit in Washington, D.C. on Oct. 8, executives from Virgin Eusanet, Eutelsat Roll Out Galactic, Firefly Space Systems and the Satellite Wi-Fi Solution Defense Advanced Research Projects Agency (DARPA) all described rapid in Germany production and reusability as a must- German satellite broadband company haves to lower the cost of launch. “I Eusanet and Eutelsat have joined forces think everyone can unanimously agree to deliver a new broadband solution that costs are far too high in launch,” said P.J. King, co-founder of Firefly. that combines satellite Internet with is testing a unique space-based laser “There are many reasons for that, but if Wi-Fi networks. The new solution communications system. The laser is you are going to approach the problem enables broadband without large- hard-mounted to the spacecraft body, of reducing cost, you’ve effectively scale construction work in regions and the orientation of the CubeSat got two ways to do it: one is to mass with limited or no Asymmetric Digital controls the direction of the beam. produce and lower the unit costs on Subscriber Line (ADSL) infrastructure. According to NASA, this makes the an expendable vehicle. The other way Eusanet and Eutelsat first deployed laser system more compact than is to create a reusable vehicle. We the satellite-Wi-Fi solution in the anything previously flown in space. have an eye on both.” The surge in Black Forest community of Oberried/ The CubeSat will evaluate the ability small satellite activity has resulted in a St. Wilhelm at the end of September. to point a small satellite accurately concurrent rise of small satellite launch The network combines Eutelsat’s High as it demonstrates data transfer providers looking to meet growing Throughput Satellite (HTS) KA-SAT with by laser at rates of up to 200 Mbps. demand. Both established players and a high-speed wireless network. This OCSD is the first in a new series more than a dozen of new entrants, combined solution currently delivers of six NASA-managed technology are either designing and/or offering download speeds of up to 30 Mbps demonstration missions set to launch dedicated launch services for satellites and uplink speeds of up to 5 Mbps per during the coming months using ranging from CubeSats to satellites household, with room for upgrades CubeSats. The second OCSD mission, in the hundreds or low thousands of in the future. According to Eusanet, scheduled to launch no earlier than kilograms. the solution can ultimately deliver Feb. 1, will use two CubeSats to download speeds of up to 100 Mbps to demonstrate the ability to maneuver individuals in communities of several small spacecraft in close proximity to hundred homes. The service requires one another using low-cost sensors AsiaSat and Rohde & a 12cm external antenna to access and a propulsion system that uses Schwarz Develop FTA Eusanet broadband. At the heart of the water as a propellant. BridgeSat, a community solution are satellite dishes startup collaborating with NASA, The Ultra-HD Channel for with reception and transmitting units Aerospace Corporation and Draper Asia connected to the Internet by KA-SAT. Labs, is seeking to commercialize laser AsiaSat and Rohde & Schwarz Based in the community are a server, communications technology from the have partnered to advance next- router, satellite modems and modern OCSD mission for a network of optical generation Ultra-HD TV technologies wireless units. Three radio cells with satellites and associated ground by implementing a Free to Air (FTA) a reach of several kilometers supply stations. “Technology demonstration Ultra-HD channel on AsiaSat 4. the households using free and public missions like OCSD are driving Broadcasters and pay-tv platforms frequencies. Additional radio cells exploration,” said Steve Jurczyk, with an AsiaSat 4 C-band antenna in outside the community of St. Wilhelm associate administrator for the Space the Asia-Pacific region will be able to are also under construction to extend Technology Mission Directorate receive the Ultra-HD channel directly. the service. Additionally, the service (STMD) at NASA Headquarters in Operating at 122 degrees, AsiaSat 4 includes Voice-over-IP (VOIP), and the Washington, D.C. “By improving the provides satellite solutions to clients first tests to supply households with communication capability of small for TV distribution, Direct-to-Home TV over the same system are currently spacecraft to support data-intensive (DTH), as well as broadband services under way. science missions, OCSD will advance across the Asia-Pacific region. Its high the potential to become a more viable power C-band footprint spans from option for mission planners.” NASA Confirms New Zealand to Pakistan and part of the Middle East. Rohde & Schwarz is Operational Status of Reusability, Mass providing a comprehensive broadcast Laser Communications solution that includes the R&S Clipster Production Top the List mastering station for editing, handling CubeSat and playing out Ultra-HD data in real NASA and The Aerospace Corporation for SmallSat Launch time. In addition, the R&S AVHE100 have received confirmation the Priorities headend will be used for live encoding using a High Efficiency Video Coding Optical Communications and Sensor Emerging small satellite launch (HEVC) encoder with 10 bit color Demonstration (OCSD) CubeSat, providers are eager to speed up the depth. launched Oct. 8 by an Atlas 5 rocket, production of rockets and introduce is in orbit and operational. The OCSD

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Inmarsat Signs Cobham Eutelsat Relocating Two land made available by the city of Cannes, which signed a long-term Satcom to Design Satellites Now That lease with Thales Alenia Space. Terminal for European Eutelsat 8 West B is Aviation Network Active Thuraya and Expansys Inmarsat has inked a contract with Eutelsat Communications’ new satellite, Link up for Retail and Cobham Satcom, who will design Eutelsat 8 West B, is online and actively and produce an advanced Mobile broadcasting TV channels to more Online SatPhone Sales in Satellite Services (MSS) terminal for than 52 million homes in the Middle its recently announced European East and North Africa (MENA) region. Europe Launched on Aug. 20 Thuraya Telecommunications has by an Ariane 5 rocket, reached an agreement with leading the new high-power online retailer Expansys to offer satellite is collocated SatSleeve+ and SatSleeve Hotspot with a constellation of products in 28 countries across satellites operated by Europe. The full scope of the Expansys Eutelsat and Nilesat distribution agreement also means at the 7/8 degrees that Thuraya SatSleeve models will west neighborhood. be available in high profile third Eutelsat worked with party stores, such as Amazon, Orange its customers to switch and Carrefour. This agreement is more than 210 television the first time Expansys has offered channels to the new satellite handset devices. Thuraya satellite the night of recently launched the SatSleeve+ and Sept. 30 from two SatSleeve Hotspot, which build on the other Eutelsat satellites original SatSleeve concept by offering located at 7/8 degrees more choice, improved quality and West. Both satellites, a new hotspot option. Thuraya is Aviation Network high-speed In- Eutelsat 8 West A and Eutelsat 8 West marketing these products to travellers, Flight Connectivity (IFC) solution. The C, are now being relocated to 12.5 adventurers and outdoor sportspeople, terminal will be a vital component in degrees west and 33 degrees east, along with others desiring connectivity the European Aviation Network, which respectively. The additional capacity outside of terrestrial networks Thuraya will be the first aviation passenger on Eutelsat 8 West B will enable and Expansys will also deliver an connectivity solution in Europe to more than 100 further channels to extensive range of marketing support combine a satellite network, operated be accommodated. The satellite also throughout the year, including by Inmarsat, and LTE-based ground introduces C-band capacity to 7/8 complementary cross-selling network, operated by Deutsche degrees west, connected to footprints opportunities as well as the depth of Telekom, according to Inmarsat. As a covering the African continent and a sustained online demand generation result, Inmarsat claims commercial and reaching west to South America. campaign. business airlines will be able to offer reliable, high-speed Internet access to passengers during flights across Thales Alenia Space’s Inmarsat to Relocate I-4 the continent’s high-traffic flight F2 Satellite, Picks Kratos paths, using Inmarsat’s 30MHz S-band Optical Integration spectrum allocation in all 28 European Center Can Handle Four SpaceNet System for Union member states. The European Aviation Network will allow aircraft to Satellites Simultaneously Support switch automatically from Inmarsat’s Thales Alenia Space has opened its Inmarsat is planning to shift voice satellite connectivity to Deutsche new Selene building in Cannes, which and broadband data services for the Telekom’s terrestrial component using has a footprint of 1,500 square meters, Europe, Mid-East and Africa region an onboard network communicator, including four separate integration from the Inmarsat-4 F2 (I-4 F2) satellite without impact or interference to zones for handling four satellites to Alphasat, and then move I-4 F2 to a service delivery. The new terminal at the same time. The building, for new position in order to create a fourth will exploit Broadband Global Area which construction began in October L-band region. To do so, the company Network (BGAN) technology to enable 2014, is designed for the integration has selected SpectralNet from Kratos a direct connection between aircraft and testing of optical observation Defense and Security Solutions’ and Inmarsat’s S-band satellite, which instruments, and complements Thales subsidiary RT Logic to support its is currently being manufactured by Alenia Space’s other facilities in Cannes L-band TACSAT (L-TAC) mobile Thales Alenia Space. Cobham Satcom dedicated to optical observation satellite communications system. is also responsible for updating the programs, The Selene building is the L-TAC delivers Ultra High Frequency Inmarsat BGAN ground infrastructure last facet of the Odyssee program, (UHF)-like satellite capability for use to accommodate S-band operation as which kicked off in 2008 to expand the with existing UHF tactical radios to part of its agreement with Inmarsat. Cannes production site to surrounding approved government customers.

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begun negotiating deals with RSPs, Inmarsat to Relocate I-4 but he expects “all of our major RSP customers to sign up.” He said retail F2 Satellite, Picks Kratos operators will likely start announcing SpaceNet System for price plans from March. When complete, NBN’s A$1.8 billion satellite Support program will consist of two satellites Inmarsat is planning to shift voice with a combined capacity of 135 Gbps, and broadband data services for the and 10 ground stations. The cost per Europe, Mid-East and Africa region premises works out at A$8,000, which from the Inmarsat-4 F2 (I-4 F2) satellite is expensive but less costly than rolling to Alphasat, and then move I-4 F2 to a out terrestrial networks to sparsely- new position in order to create a fourth populated parts of Australia. “The new L-band region. To do so, the company service will offer a great service at a has selected SpectralNet from Kratos competitive price,” Dawson insisted. Defense and Security Solutions’ “Interestingly, rural Australia contains subsidiary RT Logic to support its many people who are amongst the L-band TACSAT (L-TAC) mobile country’s biggest wealth generators satellite communications system. in the farming and mining sectors. L-TAC delivers Ultra High Frequency SpectralNet’s plug-and-play capability Many of them are already paying (UHF)-like satellite capability for use enables Inmarsat to extend L-TAC substantial charges for either mobile with existing UHF tactical radios to services across additional satellites. broadband or existing and lesser- approved government customers. The Inmarsat ground system uses quality satellite broadband,” he noted. SpectralNet’s plug-and-play capability SpectralNet’s dynamic frequency “Even for lower-income people, the enables Inmarsat to extend L-TAC conversion to transition voice and NBN satellite service will offer a great broadband data services from I-4 F2 service for a very competitive price,” to Alphasat. Following transition of all he said. Dawson added that RSPs will voice and data services, I-4 F2 will be offer tiered levels of service, “from flown to an orbital position for L-band light packages aimed at those who coverage over the Middle East and just want to check emails and do light Asia. Inmarsat’s L-TAC bridges existing Web browsing, to higher-end, more Beyond Line of Site (BLOS) tactical UHF data-heavy packages that will cater radios through a combination of the to those who want to stream and do Inmarsat L-band satellite networks and more OTT video.” With its new satellite, SpectralNet. NBN will look to move on from its troubled interim satellite service. Under the previous government, NBN launches first NBN rented A$352 million worth of satellite capacity to provide coverage satellite, aims for 240,000 to around 250,000 people living customers in remote areas. However, despite services across additional satellites. covering a quarter of a million people, The Inmarsat ground system uses With services rolling out in April NBN only had sufficient capacity to SpectralNet’s dynamic frequency 2016, Australia’s national broadband provide service to 48,000. That limit conversion to transition voice and provider is set to put its interim satellite was reached in December and NBN broadband data services from I-4 F2 troubles behind it. NBN launched its stopped taking new orders. Those that to Alphasat. Following transition of all first satellite, which from April 2016 will did get service experienced speeds voice and data services, I-4 F2 will be provide broadband coverage to up to equivalent to dial-up Internet. In July flown to an orbital position for L-band 400,000 Australians living in rural and 2014, NBN partnered with Thaicom coverage over the Middle East and remote areas. Customers can expect to subsidiary IP Star, which agreed to Asia. Inmarsat’s L-TAC bridges existing receive 25 Mbps downlink and 5 Mbps provide wholesale and retail satellite Beyond Line of Site (BLOS) tactical UHF uplink connection speeds. “We expect broadband services to a further 9,000 radios through a combination of the between 220,000 and 240,000 end rural premises. NBN’s new satellite “will Inmarsat L-band satellite networks and users to sign up for the NBN satellite help to close the divide and ensure SpectralNet. service. The take-up rate will depend no-one gets left behind,” said NBN on a number of factors including CEO Bill Morrow, in a statement. “The the prices charged by retail service ability to video-conference friends and providers (RSPs),” explained Matt family, study courses online and visit Dawson, NBN’s satellite director, in an doctors from your lounge room will email to Total Telecom. The satellite, all be possible in areas which have called Sky Muster, will undergo traditionally struggled to access basic technical tests during the coming internet,” he continued. “We’re one months, with a view to launching step closer to changing the digital face commercial, nationwide services in of our nation.” April 2016. Dawson said NBN has not

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SAMENA Council chaired ITU’s 5th Private Sector Chief Regulatory Officers (CRO) meeting

As the chairing organization of ITU-D’s Private Sector Under the chairmanship of SAMENA Council, GSR- Chief Regulatory Officers (CRO) Meeting, SAMENA 16 agenda issues were also defined. Council led a discussion during the 5th Meeting on focus areas defined during the 4th Meeting, held earlier in June The complete 5th CRO Meeting report will be 2015. The 5th CRO Meeting took place on 11 October made public in the near future by ITU. 2015 from 14:00 to 16:00 at Hungexpo, Budapest, Hungary.

The 5th Meeting reviewed progress made on actions defined during the 4th CRO Meeting, which included: • Achieving the Optimal Regulatory Environment: given the dynamic, fast changing ICT ecosystem, use mechanisms to adopt relevant, flexible, and measurable policies and tools to enhance both supply and demand-side investment strategies. • Promoting Market Access and Infrastructure: foster private sector investment, competition and innovation, which will drive broadband access as a platform for socio-economic development.

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SAMENA Council chaired panel session in ITU Telecom World

Opening up new markets in the converged ICT ecosystem: new users, new services or new segments? Monday, October 12, 2015, 11:00 AM - 12:30 PM, Conf Room 3

The exponential growth of the digital economy is leading to new interconnected ecosystems, new cultures, markets and models. New technologies, trends in society and industry developments offer enormous potential for economic growth and social good. New partnerships and collaborations are beginning to emerge across verticals, industry sectors and geographies. Positions in newly forming value chains are up for grabs and open to contention. This session, chaired by SAMENA Council, examined this world of possibilities, exploring current growth trends and potential approaches to new markets, expanding connectivity to deploying innovative services or opening up new segments and to develop innovation capacity. Where are the opportunities and who are the winners right now? What are the regulatory, cultural and interoperability challenges as we move away from narrow industry silos into arenas of activity with multiple players, such as entertainment or health solutions.

Bocar BA, the chief executive of SAMENA Council, assesses a considerable level of willingness among the policy-makers and the private sector to engage with each other by redefining their relationships and the roles that should be exercised in the new digital age. Moreover, there is a great need to set new objectives, define new key performance indicators, develop a sense of expedience in tackling new, complex challenges, and, most importantly, refine overall timing in decision-making.

ITU Telecom World 2015 The event welcomed over 4,000 participants from 129 countries, and brought together top-level government representatives, leaders of industry – from established players to SMEs (small and medium enterprises) and young start-ups, from emerging and developed markets – along with high-level representatives of international organizations, entrepreneurs, accelerators, incubators and academia. Among these were over 235 ICT leaders from around the world.

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