Volume 05 _ Issue 10 _ October 2014 SAMENA TRENDS EXCLUSIVELY FOR SAMENA TELECOMMUNICATIONS COUNCIL'S MEMBERS BUILDING DIGITAL ECONOMIES

A SAMENA Telecommunications Council Newsletter

Articles

For a Better Connected World Page 53

The Great Telecom Escape Page 58

Is mobile network infrastructure sharing about to take off in SAMENA? Page 60

Digital Services: Partnering is Key to Success Page 62

Kyle Whitehill Chief Executive Officer Vodafone Qatar

Shaping the Competition and Building Competitive Edge

www.samenacouncil.org e

SAMENA CONTENTS VOLUME _ 05 _ISSUE _ 10_OCT_2014 TRENDS

The SAMENA TRENDS newsletter is REGIONAL & MEMBERS wholly owned and operated by The UPDATES SAMENA Telecommunications Council 10. Regional & Members News FZ, LLC (SAMENA). Information in the newsletter is not intended as professional services advice, and SAMENA Council disclaims any liability for use of specific REGULATORY & POLICY information or results thereof. Articles UPDATES and information contained in this 19. Regulatory News publication are the copyright of SAMENA Telecommunications Council, (unless A Snapshot of Regulatory Activities otherwise noted, described or stated) in SAMENA Region and cannot be reproduced, copied or printed in any form without the express written permission of the publisher. WHOLESALE UPDATES The SAMENA Council does not necessar- 48. Wholesale News ily endorse, support, sanction, encour- age, verify or agree with the content, comments, opinions or statements made in The SAMENA TRENDS by any entity TECHNOLOGY UPDATES or entities. Information, products and 55. Technology News services offered, sold or placed in the newsletter by other than The SAMENA 53. For a Better Connected World Council belong to the respective entity EDITORIAL or entities and are not representative of The SAMENA Council. The SAMENA 03. 58. The Great Telecom Escape Council hereby expressly disclaims any and all warranties, expressed and im- 60. Is mobile network infrastructure plied, including but not limited to any sharing about to take off in SAMENA? warranties of accuracy, reliability, mer- chantability or fitness for a particular REGIONAL 62. Digital Services: Partnering is Key to purpose by any entity or entities offer- Success ing information, products and services in this newsletter. The user agrees that The PERFORMANCE SAMENA Council is not responsible, and shall have no liability to such user, with SATELLITE UPDATES Local Availability of respect to any information, product or 64. Satellite News service offered by any entity or entities Specialized Research in this newsletter. The SAMENA Coun- and Training Services cil’s only liability in the event of errors 09. shall be the correction or removal of the erroneous information after verification.

Editor-in-Chief Bocar A. BA

Contributing Editors Zakir Syed Awais Amjad Javaid Akhtar Malik

Contributing Member Coleago Consulting Ltd Huawei Strategy& SLA Mobile

Publisher SAMENA Telecommunications Council 04 67. Subscriptions [email protected]

Advertising EXCLUSIVE SAMENA [email protected]

Legal Issues or Concerns INTERVIEW ACTIVITY [email protected]

SAMENA TRENDS Kyle Whitehill #304, Alfa Building, Knowledge Village CEO PO Box: 502544, Dubai, United Arab Vodafone Qatar Emirates Tel: +971.4.364.2700 © 2014 - All rights reserved. SAMENA TRENDS is a trademark of SAMENA Telecommunications Council. EDITORIAL

SAMENA TRENDS _ OCT_2014

Shaping the Competition and Building Competitive Edge

The demand for telecom services has in head-to-head value chains. Several improved robustly during the last 8 years, companies are becoming accustomed to predominantly in the extents of mobile their core areas of businesses to increase telephony, international calls, and business medium-term advantages; obtaining data services. This global mandate is very retailers, purchasing media companies, much prompted by the globalization of IT services and content providers, they business operations across all trades, are moving into adjacent markets, with and the linked with it labor, capital and a vision, in the direction of escalating resource mobility. The rising demand for into markets that could, with the innovative technology services comes passage of time, become parts of their along with changes in life style and living core areas of businesses. Consequently, standards of consumers. operators are planning to build an extensive portfolio for business expansion The crucial expansion and growth in potential prospects. This infers a greater the ICT markets is also connected with amount of danger as well as few of the rapid pace of new technology these opportunities may not materialize, implementation, which encompasses but the fruitful ones could possibly the market prospects by launching new push the operators in the long term IT, services, and evolving new competences communications and media value chain. to vital players, as well as lowering their costs. Other aspects distressing the Top management should put their efforts competition and progress in the market to align their corporate strategy and M&A are the world-wide de-regulation and plans. I believe this will be more significant privatization. than ever now, since various operators today are making substantial shifts on Investments in R&D in the market their strategic roadmaps and it is going cause convergence of platforms and to be vital that their M&A objectives are technologies that produce multiple and aligned to empower the fresh overall contiguous markets. The convergence strategic plan. This means that it is also has narrowed the gap between essential for telcos to have noteworthy discrete markets such as computing, debates and discussions by exploiting the communication, and media content. available discussion platforms as SAMENA The core of the telecom industry is in Council, and work closely together during the communication and information the next few years on their corporate transmission, and this is strength for strategy and M&A objectives. the whole global information sector. The structure of the telecom market is progressing adjacent to the line of four elements: hardware, communication networks, network management systems, and service content.

Various telecom companies have already started to transfer aggressively into new extents in pursuit of lucrative growth, and to repel the intimidation of players

Yours truly,

Bocar A. BA Chief Executive Officer SAMENA Telecommunications Council

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Before joining Vodafone Qatar, Kyle Q. You have now been Whitehill was the Chief Executive Officer leading Vodafone Qatar for a for Vodafone Ghana from June 2010 to June 2013. Under his leadership, little over a year and you’ve Kyle Whitehill Vodafone Ghana became the second had a very strong FY 2013- CEO largest telecom operator in Ghana and 2014. What were the major grew the subscriber base from 2 million achievements and what are the Vodafone Qatar to over 5 million. plans for the future? Prior to that, Kyle joined Vodafone UK in 2001 as head of the Enterprise business. A. Financial Performance: In February 2008 he moved to Vodafone - It has been a fantastic India as Chief Operating Officer. During year for us at Vodafone Qatar and his tenure as Chief Operating Officer, we have had major achievements the subscriber base of Vodafone India’s in record. On a financial front, business grew from 47 million to over we continued to deliver solid 100 million. His early career was spent in growth in our fifth full year of Kyle Whitehill was the Chief fast moving consumer goods with L’Oreal operations.. Executive Officer for Vodafone and Jeyes before he entered general - FY 2013-2014 also Ghana from June 2010 to June management with the Soft Drinks division witnessed a Distributable Profit of QR 157 million, and as such, we 2013. of PepsiCo. were able to reward our 41,000 Kyle was educated in Scotland and has shareholders with dividends for Under his leadership, a degree in marketing and economics. the first time. Vodafone Ghana became Kyle is a keen golfer and supporter of - We have recently the second largest telecom Glasgow Rangers football club and is announced our half year financial operator in Ghana and grew married with 3 teenage sons. Kyle and his results with an increase of 16% the subscriber base from 2 family are looking forward to exploring in our customer base compared million to over 5 million. and experiencing all that Qatar has to to September 2013 to reach offer. 1,372,000 mobile customers and a 24% growth over the same period last year with total revenue reaching QR 1,144 Million.

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Major Consumer Propositions: Red experience for all those who solution with a free local dial-in & Falla: were eagerly awaiting its number which can significantly - In addition to advent. We brought 4G to life as reduce the telecoms costs for this financial milestone, we never before with great content local businesses. have made a number of and in-store propositions. We - In summary, we have announcements that helped know data is important for our the infrastructure, business to cement our status as a true Qatari customers, we rolled 4G solutions and an aggressive global leader with very local where they exist and regularly product roadmap coupled with roots. hangout – a new important outstanding client management that will transform the way many businesses in Qatar work.

Competition in Fixed: - As you know, it has recently been announced that Vodafone Qatar has entered into a non-binding Heads of Agreement with Information Communication Technology Holdings Q.S.C. (“ICTH”) with a view to acquiring the entire issued share capital of Qatar National Broadband Network Company. - The combination of Vodafone Qatar and Qnbn will enable us at Vodafone Qatar to deliver the benefits of choice to customers in the fixed line market in Qatar.

Customer Service: - On a commercial - Our obsession with level, we have launched milestone in our strategy customer service has been Vodafone Red Postpaid to acquire more high value recognised with over 35 awards Plan which has completely customers and high data users. this year. We continue to be revolutionized Postpaid At the same time we have been uniquely innovative in using propositions for consumers investing heavily in our 3G technology to engage our thanks to an unmatched network with upgrades to cater customers with customer care portfolio of services such as for all our 3G customers. via their mobile platforms, Valet parking, VIP concierge, - We have also recently and information about the access to VIP airport lounges, been the first to introduce 4G latest phones, apps, mobile an exclusive go-to-customer roaming in KSA, Netherlands, and innovative technology. Red Care Team, and family Romania and Spain. We expanded our Self-service deals together with great channels and with the addition telecom benefits such as hours Enterprise Firsts: of MyVodafone *100# and of free international calling, - We have identified IVR self-service channels, we roaming minutes and mobile big growth opportunities in have effectively doubled our internet. the enterprise segment and are capacity to service customers, - We then launched rapidly growing in this market. now efficiently managing 63% Vodafone Falla Postpaid and The Qatar enterprise market is of all care inquiries through self- Prepaid Plans; Qatar’s first worth 1.8 Billion Qatari Riyals service channels. In addition ever telecom proposition and we have a clear strategy to this, our retail footprint has appealing to the youth with to grow in this market drawing been expanded to ensure we can great mobile deals, exciting on our local knowledge and service customers wherever they activities and direct youth global track record. are. engagement. - This year; we - Both products launched a comprehensive Key Priorities for the Coming range of enterprise grade have proven to be very Year fixed products including successful. - Fixed will definitely be Corporate Voice, Internet at the top of our priorities and and Data Network solutions. Qatar’s Newest 4G Network, delivering world-class services to We brought two firsts to the both our consumer and enterprise Vodafone 4G: business market in Qatar with customers on this front. - Then in June 2014, a locally supported Secure - We will aggressively we announced Vodafone 4G, Device Management solution compete in enterprise to deliver Qatar’s newest 4G network and an Audio Conferencing and it was a completely new the most innovative and tailored

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SAMENA TRENDS _ OCT_2014 solutions to our business Q. What steps have - In addition to Vodafone customers whilst ensuring you taken to ensure greater 4G, we continue to offer great data that their costs are well promotions and plans for everyone managed. uptake of data services? in Qatar; the latest data offers were - Our consumer A. - In Qatar, we already announced together with our launch customers will continue have one of the world’s highest levels of the iPhone 6 and iPhone 6 Plus to see amazing offers and of internet penetration and with 56% in Qatar for both our Postpaid and propositions from Vodafone of the population engaged in social Prepaid customers. That complements bringing what’s best from media compared to a global average our superb data packs for our Vodafone globally to Qatar. of 27%. Social media is increasingly Vodafone Red Postpaid plans.

This will be supported by used as a key source of breaking unmatched customer service news, second only to television. This Q. How has the telecom which is at the heart of what is driven by the fact we have a young, landscape evolved over we do. technologically savvy population, the past 5 years? What combined with some of the most - Additionally, our developments can be relentless pursuit of network advanced technology in the industry as excellence continues, as we a result of the work of the operators and expected in the 4G space in plan further capacity and the progressive action of the Ministry 2015? coverage enhancements of Information & Communications A. - All players have empowering everybody to be Technology’s Digital Inclusion Strategy seen the surge in data usage. Qatar confidently connected. and the government’s commitment and the GCC are no exception. In - Smart Cities will to its National Vision 2030, which is terms of content, we’re seeing the remain a priority and we are driving the country’s transition from increased importance of video – committed to playing a key an oil & liquid natural gas producer to YouTube, for instance is no longer just role in Qatar’s society and a Knowledge-based economy. for entertainment. We already know to bring the world’s most - So, we realise that there’s that users in the MENA region watch advanced technologies to help an explosive demand for data in the more YouTube videos than anywhere realize the 2030 Qatar National Qatari market especially every person else in the world, but it’s important Vision. in this market owns more than one to note that people are increasingly - Last but not least, we smart device so there’s quite a lot of downloading and watching these will continue with our focus mixed usage particularly on data. videos on their mobile phones. on innovation and digitization - We recognized this and in order to support the launched our 4G network in June, growing ICT plans and aims of giving our customers a better, faster Qatar. and more content-rich experience.

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Q. What key trends or - The latest addition is market that’s developing at a much challenges are likely to be Vodafone’s launch of the 4G network quicker rate than any other country in which is providing another milestone the world. witnessed in the telecom space for Vodafone in terms of network - In its 5 years of operations, in near future? speeds and capacity. Vodafone Vodafone Qatar has brought much A. - We see data usage customers are in a great position to needed competition to the local increasing exponentially in the MEA enjoy video on demand powered by market that has resulted in improved region – to the tune of 70% compound OSN which gives customers access to services and a much better experience annual growth by 2018. In addition to the extensive GO library of hundreds for customers. And there has truly that, we see the following indicators of movies and TV series in both English never been a better time to be at as both trends and challenges to and Arabic. And now we have also Vodafone as there is today and we are operators in the future: introduced 4G roaming in a number of extremely confident of the significant - Video streaming: Total key destinations around the world. role we are playing to help enable subscription video streaming to grow - Demand for Data is Qatar’s future digital agenda with a 13x by 2018, accounting for 50+% of increasing and we are making sure world-class networks infrastructure all data use that we have the full range of devices and an unmatched innovation - Mobile VoIP: Mobile VoIP to meet this demand roadmap. Minutes will grow from 343M in 2010 - Vodafone already offers and - We currently enjoy 32% to 30B in 2015 will continue to offer the widest range market share with 41,000 Qatari - New OTT Services: Netflix, of 4G devices in Qatar and the newest shareholders and have a very strong Spotify, Apple TV, Skype, Whatsapp, 4G devices across all device brands plan to grow the company even Viber, Facebook will be added to Vodafone’s portfolio. further especially with our strong - Diversity: 45% of those >50 - We are very confident about focus on Fixed. Already more than yr use mobile internet & children get our network which we are relentlessly 1,300,000 customers in only 5 years their smartphone at age 14 working to enhance with increased of operations are actively using our - Quality: Customers investments. More so, Vodafone networks every day which means increasingly look at quality, coverage Qatar is at the heart of a massive more than 57% of the population is of network and speed of transport global network that no other telecom Vodafone Qatar customers. This, by when selecting an operator operator has access to. This scale lets itself, is a tremendous achievement - Mobile price disruption: us deliver a brilliant service to people for any telecom operator around From traditional and non-traditional either when they call internationally or the world and proves how seriously competitors when they travel to other parts of the committed we are to bring more than - Inflation of network costs: world. just basic telecommunications services Competition on fixed broadband and to our Qatari community. fast growing volume of data require Q. Various mobile phone continued significant infrastructure investments in both fixed and mobile operators have been striving - Innovation: Need to define to lead the regional market. the right portfolio of products & How your company differs services to exploit video, software, from its competitors? security, M2M and other opportunities A. - I believe what’s important here is not what the other Q. What has been the operators are achieving but what customers’ response and we, as a Qatari company which is at the heart of the largest mobile behavior to your 3G/4G telecommunications networks in the services in terms of utilization world, are doing differently. and QoS? - We have been able to change A. - Usage trends of the telecom landscape in Qatar; customers have changed over the last offering choice and innovation, where 10 years and Vodafone is witnessing we are clearly differentiated. this across their networks worldwide. - Qatar has presented us with a Data services, in particular video fantastic opportunity to introduce one services like streaming (YouTube) and of the world’s biggest brands to this video on demand services like OSN market. What we did, fundamentally, becoming more and more important is turn one of the most valuable to customers worldwide. The Middle telecom brands into an entirely East and especially Qatar have shown Qatari company and we are the only a very strong adaption of these types international company in the country of services and Vodafone Qatar has which has been localised to that built their network specifically with extent. This is something that we’re data services in mind. very proud of. We have been able to bring world class services to a frontier

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Local Availability of Specialized Research and Training Services (Global Rank of SAMENA Countries)

Global Rank Data Not Available

Total Countries: 148 Rank 1: Iceland Data Source: World Economic Forum - Global Competitiveness Report 2013 Image Source: SAMENA Telecommunications Council

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Local Availability of Specialized Research and Training Services (Regional Rank of SAMENA Countries)

SAMENA Rank Data Not Available

Research Note: Ranking done by SAMENA Council’s team based on data from The World Economic Forum. Within the SAMENA region, the Qatar appears to be on top in terms of “Capacity for Innovation” which means that in a given country, to what extent do companies have the capacity to innovate. The ranking is based on scores i.e. 1 = not at all; 7 = to a great extent. Within the SAMENA region, the top 3 countries where companies have the best capacity for innovation are from the Middle East. Among the top 5 positions, Sri Lanka is the only one from South Asia which is at number 4 within the region with companies having considerable capacity for innovation. It is interesting to note that there is not country from North Africa in the list to top10.

Total Countries: 25 Rank 1: Qatar Data Source: World Economic Forum - Global Competitiveness Report 2013 Image Source: SAMENA Telecommunications Council

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MEMBERS NEWS

Etisalat teams up with Ooredoo recognized for Microsoft to offer UAE CSR at Al Mar’a Excellence customers ‘Xbox One’ in Awards white exclusively Gaming is set to get better as Etisalat Ooredoo has announced the launch of a announces its exclusive offer on the new Ooredoo was given special recognition Xbox One in white, bundled with special for their Corporate Social Responsibility edition Sunset Overdrive game access (CSR) contributions at the Al Mar’a and Xbox Live subscription for a year. Excellence Awards, held recently at the Intercontinental Hotel, Muscat. The award The telco giant has teamed up with was presented acknowledgement of the MEMBERS Microsoft to bring to its eLife customers company’s flagship social initiative, the the much-awaited device available for Goodwill Journey, which has benefited UPDATES AED79 on flexible 24 monthly instalments. over 10,000 people over the last 10 years. Alternatively, customers can purchase it up front for AED1899. The offer from Receiving the award on behalf of Etisalat includes a white console and Ooredoo, Manal Al Kiyumi, Department controller, a year’s subscription of Xbox Head of CSR at Ooredoo, commented Live and full Sunset Overdrive game “This is a proud moment for us and download. Customers can get their a tribute to our family members’ hands on the new Xbox One bundle commitment and passion towards across Etisalat stores in the country. sustainable social investment. From the Xbox One is a new generation of games beginning, we realized our responsibility and entertainment, where games push to one another and the community as a the boundaries of realism. Boasting the whole and have worked hand in hand with deepest and most varied launch lineup various public and private organizations in Xbox history, the new games and to positively impact society in everything exclusive titles look and feel like nothing we do, whether through our products else, tapping the incredible power of and services, women’s initiatives or social new hardware and the cloud, as well as and educational programmes. As a team, advanced software tools and exclusive we have never been stronger, and we will features that will bring an entirely new continue to exceed our level of excellence world of gaming to life. in the future.”

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The annual award winning Goodwill Data Plan 400 with an Unlimited data There will be 12 topics in total, Journey and other recycling initiatives bundle. Additionally, existing and new covering three different categories. will continue under the Ooredoo postpaid customers will get 50 per cent du.ae/besafe will be updated every brand, bringing inspiration and off for life on Data Plans. Customers, month with details on each new topic, empowerment, and also spreading who are not on a Vodafone Postpaid including tips and an article in both environmental awareness, across plan, will get 30 per cent off for life on Arabic and English. Oman. all Data Plans except Data Plan 50. The promotion offers customers a life-time STC delivers VW’s to Mobily launches eLife discount promise if they subscribe to a Vodafone Data Plan up to 31st Sawa Golf GTI campaign One, the first smart December 2014. winners device that combines Existing Postpaid customers and those Saudi Telecom Company (STC) FTTH fiber network who take it along with a new Postpaid delivered the first installment of line get 50 per cent discount for life in Volkswagen Golf GTI’s to the winners services and digital the new Data Plans promotion, which of the “With Sawa. You Closer to Golf interactive TV IPTV include the: Data Plan 50 offering 1 GTI” campaign. Coinciding with the GB of data at QR 25/ month instead launch of new Sawa Bundle offers Mobily announced the launch of FTTH of QR 50; Data Plan 70 offering 2.5 GB on August 24, the campaign gave (eLife One) device with unprecedented of data at QR 35/ month instead of QR customers the opportunity to win one features, in a unique step aiming to 70; Data Plan 100 offering 7 GB of data of 30 Volkswagen Golf GTI’s. recast the high precision content at QR 50/ month instead of QR 100; services via FTTH. (eLife One) device Data Plan 200 offering 15 GB of data The campaign was met with was specially manufactured for Mobily at QR 100/ month instead of QR 200; enthusiastic participation because the as the first in the Middle East. Data Plan 300 offering 25 GB of data at Sawa bundles are effectively designed QR 150/ month instead of QR 300; and to meet a wide variety customer The new (eLife One) device is Data Plan 400 offering unlimited data needs. Packages range from 10SAR to considered the first of its kind that at QR 200/ month instead of QR 400. 199SAR in durations of 24 hours to 30 combines providing high speed Customers can use these data plans days. Sawa bundles have been further internet services through FTTH to power their tablets, smart-phones, enhanced with an unlimited 30-day network and the digital interactive TV USB hotspots and other smart devices package for BlackBerry Messenger services IPTV. Mobily has cooperated with high speed internet including 4G (BBM10) that includes 1,000 MB of with the most powerful and specialized network. Internet data, 300 network minutes, company in this field to innovate this and 300 network messages for only distinguished device. Mobily offers 99SAR. (eLife One) device with free delivery du emphasises the and installation to the new subscribers importance of online To subscribe to the new Sawa Bundles, in addition to 50% discount on the visit STC Online à My Services, or Internet subscription fees within the safety with new Be Safe through the mySTC app, or visit www. package and for a period of three awareness initiative stc.com.ca à SAWA offers. consecutive months. With increasing number of measures being taken to tackle the menace of The device works with the Android Three winners of Every cyber-attacks, it is a positive indication latest operating system, supported to find that the UAE appears at #45 in Step Counts social media by a remote control provided with the global top 50 ranking of countries RF waves technology that facilitates that have witnessed the highest competitions rewarded control without directing it to the volume of ‘originating DDoS traffic’ device; (eLife One) is supported also by du for adopting in its latest study, “The Continued with Arabic and English keyboard and Rise of DDoS Attacks*,” conducted healthier lifestyle habits mouse that enabling user to write As part of du’s Every Step Counts by Symantec. However, cyber-attacks and browse the internet with ease national wellbeing campaign, three continue to pose an increasing threat across the TV screen. winners have been selected for their to individuals and businesses. participation in the company’s social media health-focused competitions, With the objective of creating more which are designed to encourage Vodafone Qatar awareness about online security, healthier choices. The winners were announced unlimited du has launched a new awareness presented with their smartphone initiative under the umbrella of its Be prizes during a ceremony held at the data plan at the half Safe campaign. The initiative will be company’s headquarters in Dubai price for life launched on du’s website and through Media City. its social media channels, www. Vodafone Qatar is introducing its facebook.com/du, and @dutweets Mohamad Ali Al Ali submitted the winning recipe into a competition new Data Plans with increased data on Twitter and Instagram, targeting allowances and special promotional asking for the fastest and healthiest children, parents, educational meal users could make. His suggestion offers which include Unlimited data institutions and corporations to teach and discounts for life. The new Data was to make healthy chicken nuggets, them various topics related to internet using lean chicken, rolled in oats and Plans range from Vodafone Data safety. then baked. Plan 50 with 1 GB data bundled to

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Hala Badri, Executive Vice President, “The SmartWoman™ app is an will pay just RO 10 per month for the Brand and Communications, du, said: innovative and valuable tool designed 75GB plan and RO 15 per month for “Our winners’ stories and contributions for everything that today’s modern the 150GB plan, before moving back are representative of the choices we woman needs to enhance her career to the regular tariff for subsequent try to inspire the people of the UAE to and learning, as well as many other months. make, through the du Wellness App areas of daily life on a personal and and our Every Step Counts campaign. Feras Al Shaikh, Director of Consumer professional level. Whether women Making healthy changes, even small Sales at Ooredoo said, “We have ones, can have a significant impact on want to improve their parenting skills, seen data consumption increasing your wellbeing, and we hope people break the glass ceiling or simply lead exponentially in the Sultanate over will be inspired by Mohamad, Rusha, a healthier lifestyle, it’s all there “said the past two years and have invested and Mahe.” Amaal Al Lawati, Director at Ooredoo. heavily in upgrading our fixed data network to cater for the increased demand. With this brilliant promotion Mobily announces the du empowers tomorrow’s we are providing customers who use a providing of its services women leaders at Arab lot of data every month with the chance to enjoy our 4G Home Broadband to King Abdullah Women Leadership technology at a great price.”

Economic City Forum 2014 Home Broadband from Ooredoo Mobily announced providing du, the region’s fastest-growing allows customers to get online the its services to King Abdullah telecommunications company, same day using cutting-edge plug- Economic City (KAEC), through the supported the next generation and-play technology. The enhanced communications network project in the of women leaders as official 4G network, which is already in place KAEC. This comes as part of the active Telecommunication Partner of the throughout Muscat and Batinah support and mutual co-operation with Arab Women Leadership Forum 2014. and being rolled out across the Emaar, the major developer for KAEC The event was held in Dubai from country, provides a much faster and Economic Cities Authority. This 4-5 November. In its role as an event online experience than with previous network will contribute to allow the technologies. residents of KAEC a direct access to partner, du hosted a Social Media 101 all wired and wireless networks in the workshop for participants. Kingdom in addition to get through the Etisalat introduces the international communication networks Women in leadership are empowered by all over the world, after Mobily has the information and communications first Digital Index for UAE succeeded in the deployment of technology (ICT) sector. In recognition businesses advanced infrastructure for integrated of this, du’s continuous innovation Etisalat UAE has collaborated with telecoms services in KAEC, in addition sees the company constantly seeking Accenture to introduce the first Digital to rolling out a fibre-optic network. new ways in which to better serve its Index in the UAE. The initiative will customers, including through offerings provide businesses and government This giant step allows all KAEC residents, designed specifically with the needs of both individuals and the business entities in the UAE with an opportunity businesswomen in mind. sector, many advanced services in the to have their digital maturity ranked, world of communications via satellite, and to understand how they can such as television transmission Through the Social Media 101 improve this ranking to increase their through the Internet (IPTV) as well as workshop, du provided basic training competitive advantage and drive VPN services: Ethernet, VPN (L2), IP on social media etiquette, and how to growth. VPN (L3), Direct Internet Access, Broad best benefit from different social media Band at Work, Business Connect and platforms, under the theme of ‘How to The UAE Digital Index will focus IP TRANSIT. run your social media like a boss’. du on four areas – organization and also taught the participants how to get collaboration, IT and infrastructure, Ooredoo empowers the right mix of tools to optimise social the customer experience, and media for their personal use and their channels and partners – to understand women across Oman organisation. how well UAE organizations are doing with new SmartWoman to leverage digital in areas such as A live Twitter wall at the Arab Women recruitment, employee mobility, digital App Leadership Forum shared the most marketing, social media, e-commerce, Ooredoo has launched a new mobile relevant tweets throughout the event and digital supply chain management. application to connect women across in real time. Each organization will be ranked the Sultanate to the world’s leading against international benchmarks as female voices. The SmartWoman™ Ooredoo launches well as their peers in the UAE. app is exclusive to Ooredoo customers with a two month free-trial period value-packed 4G Home “The Digital Index is part of Etisalat’s and enables women to access rich, initiative to be a business enabler for dynamic content by expert writers in Broadband offers Continuing the excitement of the brand companies in the UAE,” said Abdulla Arabic and English, network with other launch, Ooredoo are now offering Hashim, Senior Vice President – Digital subscribers, ask questions and share fantastic value on 2 Home Broadband Services at Etisalat UAE. “Our aim is their own experiences on a wide range (HBB) plans with introductory to drive awareness of how companies of topics. All this directly from their discounts on their two most popular can better use digital solutions to smartphone through an easy-to-use plans. For the first three months of a meet the changing needs of their interface. one year postpaid contract, customers customers, employees and suppliers,

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SAMENA TRENDS _ OCT_2014 SAMENA TRENDS _ OCT_2014 and to underline the message that Ali Radhi, Head of IT at MBC; Ian by Omantel for appointing a sole digital maturity is an ongoing journey Wakeford, Managing Director at DW agent for Omantel products to ensure rather than a single step. We want Consultants; Mohammed Shah, Head availability and easy access by all to encourage digital innovation and of IT & Business Solutions at AMS customers to the company products the Digital Index will help businesses Baeshen Company; and Trevor Moore, throughout the Sultanate. The sole learn how they can start improving Chief Information Officer at Qatar agent will rely on a number of SMEs their operations through doing more University. that will deliver and avail these online.” products at the different outlets in the Huawei was recognized for its Sultanate that will make them available noteworthy commitment to providing for the end-users. Etisalat bags Best organizations in government, Customer Care Award healthcare, education, hospitality, Commenting on the agreement, Etisalat was awarded the renowned and other vertical markets to achieve Waleed Mohammed al Rahbi, Indirect TeknoTel Award for ‘Best Customer operational excellence through more Sales Senior Manager at Omantel Care 2014’ during a ceremony agile service innovation. Consumer Unit said “the indirect sales held recently in Dubai. The honor play an important role in ensuring recognizes Etisalat’s achievements in availability of all our products to all improving overall customer experience Turk Telekom CEO customers throughout the Sultanate”. by instituting advanced training programs, electronic services and Aslan calls for improved ‘The partnership with Sale International technologies dedicated to customer business models satisfaction. will create a wide network of sales Turk Telekom CEO Rami Aslan, who points through which customers can attended the panel ‘An Open Digital purchase the prepaid cards or top up On winning the award, Tony Eid, CEO Agenda for growth and innovation’ of Trace Media said, “Etisalat came at CEO Summit 2014, highlighted that cards which in turn will make Omantel out tops amidst stiff competition to the sector needs novel and sustainable products available anywhere in the win this award for its excellence in models in order to create a fair system. Sultanate, he concluded. customer care. Through the year, the He complained that operators make all operator has successfully put in place the investment while internet players a number of best practices as part of get a disproportionate return. Aslan Batelco invests millions its customer experience strategy that pledged for the creation and fostering also determines the high quality of in network enhancement of a common ecosystem that should Batelco, Bahrain’s leading services extended to its customers.” be stable, predictable and rewarding communications provider and Ericsson, for all participants. Life-changing a world leading telecoms technology Eid added, “Etisalat has a proven track OTT services are only possible thanks provider, have extended their long- record of excellence and technology to operators who provide internet leadership in introducing innovative connectivity, he argued. standing partnership by signing a new services catered to meet customer transformation agreement. needs and tastes.” Highlighting the advances in the life- changing internet eco-system, Aslan The two partners have announced Hassan Hussain, Vice president stated that network operators and the new network enhancement of Customer Experience, Etisalat internet service/content providers programme, which is designed to meet said, “Receiving this award is great need to explore innovative and the growing customer demand for recognition of Etisalat’s efforts and incentive-compatible business increasingly powerful mobile services. success in improving customer models, leading to a more efficient use The major transformation work is experience, bringing it at par with of networks and creating new business international standards.” part of Batelco’s ongoing strategy to opportunities and value creation at enhance its networks and keep them this new spectrum of digital value- on par with the highest international chain. Huawei recognized for standards. The major project will see leadership in Middle the upgrade of Batelco’s 4G Network Omantel appoints Sale to provide faster mobile Broadband East ICT industry connections for its subscribers and Leading the way in building a better International as its superior voice quality, plus a set of connected Middle East, Huawei—a sole distributor for its new services and offers. Additionally, leading global information and the Network will be expanded to communications technology (ICT) products cover new areas across the country. solutions provider—was recently Omantel, the leading Batelco Group & Acting Bahrain CEO honored by industry pioneers with telecommunication provider in Alan Whelan and Head of Ericsson the prestigious title of Middle East the Sultanate of Oman, has signed Gulf Council Countries Victoria Strand “Hardware Vendor of the Year” at the an exclusive agreement with Sale signed the agreement at a recent annual ICT Achievement Awards 2014. International LLC to act as its sole meeting in Dubai. The award recognizes individuals and agent for the distribution of Omantel organizations that have delivered products which include Hayyak starter Mr. Whelan said that Batelco is very ground-breaking business value kits and top-up card. The sole agent pleased to be taking this major through the innovative application of will avail these products to the sub- step with Ericsson which is a long technologies and contribution to the distributor at the various governorates. established trusted partner of Batelco’s. region’s technological development. The judging panel comprised of The award of the contract comes leading industry experts including after the public tendering process

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REGIONAL NEWS

Ericsson eyeing Afghan a decade and a half has seen it offer landline, mobile and Internet services to contract ever increasing markets. STC now serves Swedish vendor Ericsson is in the process just less than 170 million customers of negotiating a management contract nationally and internationally - today it is with a second telco in Afghanistan, Gulf the largest telecommunications company News cites Ericsson’s regional chief Tarek by market capitalization, total revenue Saadi as saying. The official did not and number of employees in the Arab name the operator involved but ruled region. out Etisalat, leaving Afghan Telecom (Aftel), Roshan and Afghan Wireless However, such growth and increased Communications Company (AWCC) as visibility also brings problems. Today, like REGIONAL the potential partner, Ericsson having telcos worldwide, STC ‘s revenue model signed a managed services deal with depends on a shift from traditional voice/ UPDATES MTN Afghanistan back in 2012. Despite SMS services to ‘always on’ mobile/mobile the progress of the talks, Saadi noted that data paradigms - capacity issues are one an official announcement was unlikely to concern, but more serious perhaps is the be made until H1 2015. need to assure customers that secure and reliable mobile broadband performance Saudi Arabia’s security will also be ‘always on’. strengthened by DDOS Abu Dhabi-owned telco solution from Arbor Warid to spend US$470 Networks million on network Arbor Networks has announced today upgrades the implementation of a DDoS Solution Pakistan’s Warid Telecom, wholly owned for Saudi Telecom Company (STC) for by privately-held Abu Dhabi Group, will protection against internet based attacks invest US$470 million over five years to that impact data centers, networks and bolster its network, following a failed applications. attempt by its owners to sell the mobile operator this year. Originally a national telco, Saudi Telecom Company (STC) is now active across the Warid Telecom has seen its mobile GCC and beyond, from Kuwait to Bahrain, subscriber base slump from 17.9 million Turkey to India, Malaysia to South Africa. in 2008-9 to 13.1 million in May 2014, Its rapid growth in little more than according to data from Pakistan’s telecom regulator. That is barely half the page_13 page_14 REGIONAL & MEMBERS UPDATES REGIONAL & MEMBERS UPDATES

SAMENA TRENDS _ OCT_2014 SAMENA TRENDS _ OCT_2014 subscribers of No.4. player, Etisalat and we want to further reward them Vimpelcom-controlled unit Pakistan Telecommunications Co by giving them the ability to choose (PTCL), which has 24.6 million, and from our varied offers.” GTH sells off Burundi, Warid’s decline partly coincided with CAR operations to owner ADG’s failed attempt to sell the Renna Mobile also offers Oman’s company. most valuable data bundles with the Econet Wireless best price/data ratio and international ADG scrapped a sale of Warid to Egypt-based Global Telecom Holding PTCL in March, and is now committed calling offers among all the mobile (GTH), a 51.9%-owned subsidiary to the firm, Tariq Gulzar, Warid’s service providers in Oman. The quality of Russian group Vimpelcom, has chief financial officer, told Reuters of the services provided by Renna announced the sale of its 100% stake in a telephone interview. “Our total mobile is credited with a strong and in Telecel Globe Limited – which itself capital expenditure (for) the next five reliable network accessible from owns 100% of each of U-Com Burundi years will be about US$470 million. A almost all parts of the region. (leo) and Telecel-RCA of the Central lot of this is going towards technical African Republic – to African diversified investment in terms of upgrading to telecoms operator Econet Wireless the newer technology, from 2.5 to Qatar sets sights Group, for USD65 million subject to 4G,” said Gulzar. to become digital certain ‘post-closing adjustments’. economy leader Last month, Vimpelcom – which is GrameenPhone aims for US-listed and headquartered in the 50 million internet users By 2016, 95% of Netherlands but remains majority Russian-owned – and GTH jointly in five years households in Qatar announced the sale of their entire GrameenPhone, the Bangladeshi shall have the ability to interest in Canadian cellco Globalive mobile market leader, last week Wireless (Wind Mobile) to its Canadian announced reaching the milestone of access affordable and controlling shareholders and a group 50 million network users, and declared of investment funds for approximately that its number of internet users high-quality broadband CAD135 million (US$121.9 million), alone will match this figure within the service of at least 100 with the proceeds going to Vimpelcom next five years. GrameenPhone CEO in repayment of part of the debt owed Vivek Sood said that the company Mbps for downloads to it. has maintained an annual average investment budget of USD154 million and 50 Mbps for uploads Also, in August this year GTH approved over the past few years to upgrade Qatar aims to become the best- the sale of 51% of Algerian cellco and expand its network, adding connected country in the world and a Djezzy (Orascom Telecom Algerie) to that the level of investment will leader in innovative digital economy, the Algerian National Investment Fund be significantly increased. Internet HE the Minister of Information (Fonds National d’Investissement speeds of its existing 3G data plans and Communications Technology [FNI]) for USD2.64 billion, in are being doubled at no added cost addition to deals associated with the Dr. Hessa al-Jaber told a world as part of a new promotion. transaction. Pending final approval conference. of the transaction, Vimpelcom/GTH will retain a 46% minority stake and Renna Mobile offers Delivering Qatar’s Connect 2020 ICT management control of Djezzy. Policy Statement at the International special international call Telecommunication Union’s 19th packages Plenipotentiary Conference, PP 14, in SA and Egypt lead After the success of Renna Mobile’s Busan, South Korea, Dr. al-Jaber said: smartphone growth in international calling promotions, now “As a nation, we can’t think of a more their newly extended international important goal than inclusiveness Africa calling bundle offers give valued and ensuring that all people reap According to a recent IDC study, the customers more convenient options. the benefits from ICT, regardless of Middle East and Africa (MEA) handset Renna’s current promotion allows their age, gender, income, location market grew to its largest size in ten subscribers to call Pakistan for 20mins or abilities. “For several years now, quarters in Q2 2014, expanding 27% for just RO1 and subscribers calling a host of ICT training programmes year on year to total 64 million units. India or Bangladesh can enjoy 35mins - targeted to women, low-skilled Within Africa, Egypt and South Africa for just RO1 and 15mins for 500bz. workers, people with disabilities, and posted the largest year-on-year the elderly - have been successfully handset shipment growth, at 37% and Renna has another international offer under way.” 32%, respectively. for the rest of the countries with a compatible price starting from 39bz Dr. al-Jaber highlighted the The Middle East and Africa (MEA) per minute. Raed Haddadin, CEO, milestones of Qatar’s ICT sector and handset market grew to its largest size Renna said, “Renna has consistently goals for the next few years. She in ten quarters in Q2 2014, expanding been offering great value to emphasized continuing ICT sector 27% year on year to total 64 million customers on their bundle offers development efforts, enlarging the units. The latest insights from global for international calling. Our market sector’s contribution to the GDP advisory and consulting services research shows that there is a huge and to sustainable development firm International Data Corporation demand by our Asian expats on through digital inclusion, innovation, (IDC) show that the majority of this international calling. We therefore entrepreneurship and the delivery of growth was seen in the smartphone make sure that our customer’s get ICT benefits to everyone. category, with a major shift underway the best international calling rates

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in the composition of the market. Egypt needs billions secure, high-speed virtual private Indeed, smartphone share of network (VPN) services for its enterprise the overall MEA handset market to upgrade telecom customers. The new modernized jumped 13 percentage points year infrastructure network will enable Algeria Telecom to on year to reach 40% in Q2 2014, quickly meet this challenge as well as with that figure reaching as high Egypt is seeking billions of dollars offer added-value triple play services as 75–80% in some of the region’s in investment to upgrade its with IPTV and video on demand for a more developed countries. telecommunications infrastructure as feature rich, end-user experience. In part of efforts to attract multinationals addition, the new converged, scalable Within Africa, Egypt and South and restore growth after three years IP infrastructure based on the multi- Africa posted the largest year-on- of political upheaval, the telecoms application SSR 8000 platform enables year handset shipment growth, minister said. Algeria Telecom to implement new at 37% and 32%, respectively. In business models and provide multiple the Middle East, that honor was Atef Helmy said Egypt needs service offerings and addresses new taken by the UAE and Qatar, with investment of $5-$6 billion to build opportunities with a quicker time to respective growth of 27% and broadband internet across the market. 32%. nation and some $3 billion more to build seven technology parks it The agreement includes Broadband hopes will lure multinationals and Network Gateways (BNG) and Saudi Arabia: Number provide employment. Some of these Provider Edge (PE) applications based of Web users exceeds opportunities will be presented on the Ericsson SSR 8000 family and at an economic summit aimed at professional services such as project 18 million encouraging investment in Egypt that management, solution architecture, The number of Internet users in will be held in February in the resort deployment and migration services. the Kingdom reached 18.3 million town of Sharm al-Sheikh. this year. Subsequently, there is an increased demand for Internet “There is no doubt that the telecoms Mobile distributor SiS and broadband connection and technology sector is one of the to spin off e-payments services (both mobile and home- most competitive sectors when it based). Due to this, subscriptions comes to investment and as part subsidiary in Bangladesh for broadband services across of building our new Egypt. (it) is a Mobile devices distributor SiS mobile networks in the Kingdom cornerstone,” he said in an interview International Holdings plans to spin have continued to increase during as part of the Reuters Middle East off its electronic payment services 2014 to complement this, reaching Investment Summit. Helmy, himself an business in Bangladesh, Information approximately 20.7 million executive with Oracle, said Egypt had Technology Consultants Limited (ITCL). subscriptions so far this year. managed to retain big multinationals, In its regulatory filing on Thursday, SiS including his former employer, despite said its subsidiary will be separately The most common subscriptions the recent turbulence. listed on the Dhaka Stock Exchange include data services, voice and the Chittagong Stock Exchange in communication services and data The Smart Village, a technology Bangladesh. packages, thus reflecting the park of manicured lawns and water dramatic increase in smartphone features outside the sprawling capital, “The proposed spin-off and listing will ownership and usage in recent is home to the gleaming offices of provide ITCL with a separate platform years. Additionally, the number major international firms as well as for raising funds from both equity and of subscribers to mobile the Communications and Information debt capital markets,” SiS said. “ITCL communications services reached Technology Ministry; a testament will also have access to bank financing 51 million by the middle of 2014, to the kind of Egypt Helmy wants to on potentially more advantageous with the percentage of prepaid build. terms than are presently available to subscriptions amounting to 87.1 it.” percent. According to a report Algeria Telecom selects released by the Communications The company expected to retain a and Information Technology Ericsson for broadband 37.60 per cent interest in ITCL after the Commission, approximately 4.7 network transformation listing is completed. It currently owns million fixed landlines will have a 43.60 per cent stake. Lim Kiah Meng, been installed by the end of 2014. Algeria Telecom has chosen Ericsson the vice-chairman at SiS, held 9.80 per for the transformation of their cent of the shares in ITCL through a The demand for broadband broadband aggregation network. related corporation. services has also significantly Under the terms of the agreement, increased in the aftermath of Ericsson will consolidate the existing increased government support for network functions for a simple high-tech projects, which requires and scalable architecture using the good digital infrastructure, Ericsson SSR 8000’s Provider Edge (PE) as well as the widespread and BNG applications. availability of Internet services for social networking, business With the Ericsson SSR 8000, Algeria applications, word processing, Telecom will competitively meet software protection tools and the growing demand for residential entertainment. broadband connectivity and offer page_15 page_16 REGULATORY & POLICY UPDATES

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To this end and in continuation of Telecommunications Regulatory Authority (TRA) endeavors to promote the level of e-services for frequency spectrum users in the Sultanate of Oman, and in keeping abreast of the e-government policy, TRA launched on 7 April 2014, the Advanced Automated Spectrum Management System (AASMS).

The new AASMS specification is a new quality compared with everything known so far. The new system takes care for all kind of possible and even unusual cases. Up to 60 different and very complex business processes is adapted by the system as well as loads of technical analysis stuff which even the International Telecommunication Union ITU in Geneva did only define but had never put in software properly. The new system is WEB enabled and does everything automated.

The new advanced system for spectrum management is an important step for the TRA as the system will contribute significantly to upgrading its operations that are provided by the Spectrum TRA launches the world Management Unit through providing spectrum licensing services electronically via the Internet, which would be most Advanced Automated considered a significant contribution to the achievement of the National Strategy for Oman Digital Society and Spectrum Management e-government and for meeting the growing need to manage the spectrum System resource effectively and adopt optimum methods for using it.

Acquiring such System by the TRA will The increase and sophistication in meet the needs of users of spectrum in the the use of communities of modern Sultanate which include speed in issuing, technologies that use radio frequencies submitting and processing licenses have highlighted the importance of electronically, especially for microwave Eng. Yousuf Abdullah Al Balushi spectrum and the ways to develop its links for operators of telecomm services, Vice President - Spectrum management process as an important issuance of aviation and ships licenses, Management Affairs resource that represents a foundation for enabling getting the radio license developing the telecom infrastructure. Telecommunications Regulatory automatically within a few hours, instead The modern societies depend on the Authority of 14 working days before, which would rapid communications such as mobile, Sultanate of Oman be considered as an achievement at the maritime and air communications, level of the entire region. satellite communications and broadband services, and broadcast services and The new system opens new prospects other services, which require access to for managing the spectrum efficiently information at any time and any place. in the Sultanate as the spectrum users This has resulted in increased pressure will be able to complete most of their on the regulatory bodies responsible for transactions electronically from their own managing the spectrum to ensure speed places and without the need to visit the and efficiency in radio licensing processes TRA’s office, such transactions include and to follow the market approach in issuance, renewal, cancellation and terms of speed of processing, as these amendment of radio licenses; printing new challenges cannot be met without the documentation related to licensing, modern systems that are integrated and technical amendments, pre-calculation automated for spectrum management of fees, billing , billing information and which provides the services electronically.

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payment and electronic follow-up for errors reduction through automated licensing process. and instant mechanism of data validation and automated technical As for the project objectives, this analysis for the coordination of new system facilitates the tasks spectrum across international borders. and organizational and technical procedures in managing the spectrum In addition, the new system helps and will ensure economic and effective the TRA Spectrum Management in use of the spectrum according to carrying out its functions that are the National Plan for the spectrum related to spectrum management, blocks allocation and the national such as assisting in managing the daily and international regulations. It also work flow , the processing operations ensures a high level of security for related to spectrum allocation, database of the Advanced Automated planning and distribution , spectrum Spectrum Management System, speed engineering , coverage forecast, in processing transactions, human electromagnetic analysis, calculating the carrier-to-interference –ratio, complaints management , scheduling inspection procedures, controlling the spectrum, developing an interface between spectrum management and spectrum monitoring systems , as well as the provision of geographic information system to determine the geographical locations of frequencies Compared with the systems as currently in operation around the world, the TRA Oman Spectrum Management System is actually the world most advance automated spectrum management system. According to LS telcom, system vendor, the assortment of possibilities of the new AASMS and how it is realized will for many years built a standard, which not only the region but definitely world-wide spectrum regulators will have to compare their own solutions with.

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Regulatory NEWS

Telmex fined USD3.7m for which was headed by senior business executive Faheem Shehzad. The minister monopolistic practices reportedly said that she appreciated Mexican telecoms regulator the Instituto the company’s keen interest in investing Federal de Telecomunicaciones (IFETEL) in Pakistan, assuring Lycamobile of the has fined America Movil (AM)-owned government’s full support. The delegates Telmex for monopolistic practices in the apprised the minister of the global long-distance call termination market. business potentials and key features of As such, the watchdog imposed a fine of MXN49.32 million (USD3.66 million) their company ahead of what is expected on the incumbent, bringing to an end an to be a formal approach for an MVNO investigation that was initiated by Mexico’s concession. According to TeleGeography’s Comision Federal de Competencia (CFC) GlobalComms Database, back in October in May 2011. IFETEL’s final decision upheld 2009 the Pakistan Telecommunication Regulatory a complaint from rival operator Axtel, Authority (PTA) courted controversy when which had accused Telmex of failing to it increased the price of an MVNO licence News respond to interconnection requests; from USD10,000 to USD5 million. The denying it information regarding the Ministry of Information and Technology location of its central offices; and playing (MoIT) asked the PTA to reconsider its recorded messages to Axtel users warning stance, and representatives of major them of the possibility that their service players Mobilink and Telenor Pakistan could be suspended. The financial penalty represents the maximum fine allowed by criticised the framework, arguing that it law. discouraged new operators from entering the market. However, the PTA refused to back down and the MVNOmarket remains Lycamobile representatives something of a pipedream. Lycamobile, meet with Pakistan which was founded in OCTember 2006, is currently active in 17 markets: Australia, telecom regulator ahead Austria, Belgium, Denmark, France, Germany, Ireland, Italy, Netherlands, of prospective launch Norway, Poland, Portugal, Spain, Sweden, UK-based mobile virtual network operator Switzerland, United Kingdom and the (MVNO) group Lycamobile has set its United States. Lycamobile’s commercial sights on Pakistan as part of its ongoing launch in an 18th market, Romania, is international expansion drive. According anticipated in the near future. Initially to the Express Tribune, Minister of State targeted at expatriate communities in for Information Technology Anusha Europe, in recent years Lycamobile has Rahman hosted a two-man Lycamobile increasingly set its sights on developing delegation from the UK this week,

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SAMENA TRENDS _ OCT_2014 a global brand. At the end of 2013, no Facebook, no YouTube, no Netflix, in increasing access among the people the company claimed a global MVNO no Spotify? OTT players are the ones in remote areas,” she said. base of more than 30 million users. driving digital demand, demand for your services! That is something you MoITT unveils draft EU Commission clears can work with, not against.” The memo, which detailed the launch of the Telecom Policy; includes ISPs in “Net Neutrality” investigation back in July, stated the companies who are being investigated provisions for net anti-trust probe would not be made public at such an neutrality, spectrum Net neutrality has become one of early-stage. Due to being cleared of the biggest and most important the investigation, none of the telcos sharing and OTT topics in the telecoms industry as will be named to prevent damages to Pakistan’s Ministry of Information it could change the shape of the their reputation Technology and Telecommunication internet as we know it. An anti-trust (MoITT) has published a draft probe was launched by the European Telecommunications Policy for wider Commission into whether quality- France’s 700MHz auction stakeholder consideration and dependant OTT players such as Netflix expected in 2015 comments from the general public. The were being “slowed down” in favor of French president Francois Hollande draft is based on recommendations the ISPs own services. The inspections has reportedly announced that from consultants, the Pakistan were launched to investigate whether telecoms regulator the Autorite de Telecommunications Authority (PTA) the ISPs were taking advantage of Regulation des Communications and the Frequency Allocation Board their market position to control and Electroniques et des Postes (Arcep) (FAB), as well as telecom operators cause an unfair playing-field on the will initiate the process of auctioning and organisations. The broad aim internet; destroying the values which frequencies in the 700MHz band for of the policy is to implement the has helped it to grow and become telecoms services in 2015, Advanced government’s ‘vision’ for the sector: so important to the global economy. Television reports. Addressing ‘Universally available, affordable and In an announcement made by the previously expressed concerns of quality telecom services provided Digital Terrestrial Television (DTT) Commission today, it stated: “the through open, competitive, and well broadcasters that the allocation would Commission found no evidence interfere with the plans to migrate managed markets and used by all of behavior aimed at foreclosing the DTT platform to MPEG-4 AVC by to the benefit of the economy and transit services from the market or at 2015 and DVB-T2 by 2023, President society.’ The policy covers a range providing an unfair advantage to the Hollande said that France needed of topics including: competition, telecoms operators’ own proprietary an audiovisual sector that could licensing, interconnection, right of content services”. Proposals to the broadcast broadly, effectively and way, internal networks, infrastructure FCC in the US from ISPs call for the securely, adding: ‘This is the objective and resource sharing, quality of service regulator to allow the creation of of transferring the 700MHz band (QoS), universal service provision, “fast lanes” for big OTT players whose to the telecom sector. The state will research and development (R&D) and users generate a lot of bandwidth. ensure that the available resources are satellite services. Notably, the policy This has caused fierce backlash, with guaranteed for broadcasting’. As such, sets out rules to allow for spectrum Arcep is expected to launch a tender the deadline for comments against trading to take place, although it the proposals having to be pushed- for the 700MHz spectrum band in November 2015, with projections that will only be permitted under certain back several times from the sheer the auction could generate up to EUR3 specific conditions. Similarly, operators amount which had been submitted. billion (USD3.8 billion) for the treasury. will be permitted to share spectrum The Sunlight Foundation analysed resources, although the MoITT notes over 800,000 of these comments that sharing spectrum does not and found that 99% of them are in Zambia: ZICTA calls for absolve the licensee from any rollout support of stronger protection for private sector investment obligations that they might be subject net neutrality. Meanwhile, a petition to. Elsewhere, the PTA and the federal from Google with the rallying call of in ICT government will develop regulatory “A free and open world depends on a The Zambia Information and instruments to enable the provision free and open web” has been signed Communication Technology Authority of voice-over-internet protocol (VoIP) by over three million people. Neelie (ZICTA) is calling on the private sector and over-the-top (OTT) services, Kroes, departing Vice President of the to take the lead in creating demand in where the service provider may European Commission, spoke about ICT, by injecting heavier investments not have any equipment installed OTT players and their relationship into the sector. The move has been within the territory of Pakistan. These with telcos in her farewell speech: “The proposed in order to give consumers measures must take into consideration current situation of European telcos is access to affordable solutions. ZICTA the potential requirement for scarce not the ‘fault’ of those OTT’s. Today, all director general Margaret Mudenda resources (i.e. numbering) and the EU homes have broadband coverage; stated that: “There is need to enhance requirement for lawful interception 76% have a connection; almost half infrastructure development in rural as well as interconnection and access can access it on their mobile,” she said. parts of the country.” According to emergency services. The issue of “They are demanding greater and to Zambia’s Daily Mail, Mudenda Net Neutrality is also covered, and greater bandwidth, faster and faster said a society that has access to attempts to reach a compromise speeds, and are prepared to pay for ICTs is exposed and contributes to between providing operators with it.” She continues: “But how many of the development of the economy. commercial options and preventing them would do that if there were no “To some extent, infrastructure anti-competitive practices. The draft over the top services? If there were development in the ICT sector is vital policy allows internet service providers

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(ISPs) to throttle and shape traffic on rules too closely resembled Title French Regulator Cites the condition that they provide access II common carrier regulations. By to ‘all services without discrimination combining facets of both the Section Operators for Missing through the technical characteristics 706 and Title II regimes, the FCC could 3G Rollout Obligations of the service.’ Further, backhaul, construct bright line rules under the The French telecoms regulator, transit services and gateways broadband provision that would ARCEP has cited three mobile between operator networks may prohibit pay-to-play on the part of networks as having missed rollout not discriminate between the access ISPs, said Michalopoulos. “At the same obligations for their 3G networks in provider’s own services, or services time, the FCC should conclude that the French overseas departments. The that the access provider favours, and the transport component of Internet proceedings concerned three mobile other services. access service can be separated from operators: Guadeloupe Téléphone the information service and therefore Mobile, Martinique Téléphone Mobile is a telecommunications service,” and Guyane Téléphone Mobile, ‘Hybrid’ Regulations for he said. The FCC could choose to authorized in 2008 to establish a forbear from common carrier Title Open Internet Gaining fourth 2G/3G mobile network in II regulation of such service, “so their respective departments. The Traction long as it is not necessary,” said investigation phase made it possible to Talk of hybrid regulatory regimes Michalopoulos. “We believe, that ascertain that, to date, these operators and the likelihood of litigation instead of being mutually exclusive, had not performed any 2G or 3G for the Federal Communications the choices are complementary and network rollouts to provide mobile Commission’s Open Internet mutually reinforcing,” he said. Nuala services. As a result, on October 7, proceeding held sway at an Oct. 7 FCC O’Connor, president for the Center for 2014, the ARCEP body responsible for roundtable discussion at the agency. Democracy and Technology, said the settling disputes, legal proceedings The FCC concluded a series of public FCC could choose to classify business- and investigations (“RDPI”) decided panels on the Open Internet notice to-business broadband Internet to give a formal notice to these three of proposed rulemaking (NPRM) (GN service, such as between ISPs and operators, to provide 2G and 3G Docket No. 14-28) with a focus on edge providers, as a Title II service, mobile services covering the entire the FCC’s legal authority and possible while retaining rules under Section population that was to be covered scope of the regulations. At the heart 706 for ISP-to-consumer transactions. of the issue is whether to reclassify under the terms of their respective broadband Internet services under spectrum licenses, by January 15, Title II of the Communications Act, Vodafone Wins $520 2016, with two interim deadlines set to regulate under Section 706 of the Million Indian Tax for January 15 and April 15, 2015. Telecommunications Act of 1996, Should these three operators fail to or construct some combination of Dispute meet these obligations, they could both. This last approach, in various Vodafone has won a court case in face the loss of their operating license. permutations, has increasingly been India overturning a request for Rs32 put forward as a possible compromise billion (USD520 million) in taxes Spectrum Scarcity Sparks between public policy groups, Internet following an audit of transfer pricing service providers like AT&T Inc. and issues. The issue, which is increasingly Need for Regulatory Comcast Corp., and edge providers common, is a dispute over the cost Support and Research such as Netflix, Inc. Classification of services provided by one part of a The never ending demand for mobile of broadband services as Title II company to another. It is often used data and ubiquitous connectivity telecommunications services would by some firms as a way of transferring in today’s wireless world is driving give the FCC the express and expansive profits from one jurisdiction to a service providers towards network authority to regulate so-called lower taxed location, but the transfer improvements for spectral efficiencies common carrier services—something pricing still needs to be set at market as well as significant investments in that is roundly opposed by broadband rates. India’s income tax department new technology resources to densify providers because such a decision alleged that a Vodafone subsidiary their networks. However, those would impose a strict regulatory based in India owed taxes because advancements alone are not adequate regime. “Both of the possible bases shares issued by the company to its to meet the challenges posed by for the Commission’s jurisdiction here parent were deliberately undervalued future mobile data traffic when each have their own weaknesses,” said in order to lower its tax exposure. The only limited spectrum is available. Pantelis Michalopoulos, a partner in Bombay High Court has now heard Regulatory support and industry Steptoe & Johnson LLP’s Washington the case, and decided that Vodafone research is needed to determine the office and head of its Telecom, Internet was not at fault. “We feel that there is optimal use of spectrum resources. & Media Group. Michalopoulos no taxable income on share premium 4G Americas, a wireless industry trade represented the Open Internet received on the issue of shares,” said association representing the 3GPP Coalition as intervenors in the law suit chief Justice Mohit Shah, and Justice family of technologies, has published filed by Verizon Communications Inc. M.S. Sanklecha. The case is the latest a white paper, on the benefits of against the FCC over its 2010 Open in a long line of tax disputes Vodafone innovation in regulatory policy and Internet rules (Verizon Commc’ns is fighting in the country, including its ability to provide a potentially Inc. v. FCC, 2014 BL 9154, 740 F.3d the USD2 billion tax demands from helpful tool for the shortfall of 623 (D.C. Cir. 2014). The U.S. Court of its 2007 purchase of Hutchison Essar available spectrum resources. “Like Appeals for the District of Columbia India. fish need water to survive, the mobile Circuit ruled Jan. 14 that the FCC’s connected world relies on exclusive no-blocking and non-discrimination

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SAMENA TRENDS _ OCT_2014 licensed spectrum as its fuel for Bahrain Dr. Mohammed Al Amer. The that military-controlled companies growth; however, key stakeholders two-day Forum is organized by the would play an important part in this are aware that limited spectrum ICT Committee, the Federation of Arab new entity, though denied that the is a factor which stunts significant Engineers and the Bahrain Society of army would have a controlling stake; advancements,” stated Chris Pearson, Engineers. A number of concerned with existing telcos and other firms President of 4G Americas. “We see an speakers and ICT experts as well as also involved in the venture, precise excellent opportunity for government representatives of the operators, roles are still to be determined. regulators and the wireless industry suppliers, major local companies and Meanwhile, Egypt is said to be seeking in the region to participate in the ITU gather to interact in a positive investment of up to USD9 billion with positive dialogue regarding the best dialogue and discussion on the latest a view to upgrading the country’s practices for spectrum sharing that global developments that would telecommunications infrastructure as will benefit the connected society in pave the way for more cooperation part of efforts to attract multinational which we live.” The paper discusses opportunities and joint work among businesses and restore growth. key regulatory and technical factors key entities involved in the sector. According to Helmy, between USD5 that should be considered when The Forum which is also attended billion and USD6 billion is required developing successful spectrum by a number of TRA staff, will cover for the rollout of broadband services sharing policies and explores several important topics addressing across Egypt, while a further USD3 spectrum sharing mechanisms using the latest challenges faced by service billion will be used for the construction coordinated, uncoordinated and operators and the latest development of seven technology parks which hybrid approaches. It also details opportunities leveraging the recent could lure multinational companies the challenges of spectrum sharing, advanced technologies, in addition to invest in Egypt and create local job including interference management to the latest ICT regulation patterns. opportunities. With a number of these between disparate systems sharing The Forum will also discuss the investment opportunities expected to same or adjacent spectrum bands. The important role of ICT in different be presented at an economic summit paper highlights the need for further sectors, such as learning, economy, due to be held in Sharm-al-Sheikh in technology research, development, health, tourism, engineering and the February 2015, the minister was cited testing and refinement of models ICT role in developing applications for as saying: ‘There is no doubt that the to ensure that it provides sufficient commerce, government and business telecoms and technology sector is protection to the primary users of the management. one of the most competitive sectors spectrum while providing beneficial when it comes to investment and as new broadband capacity. Spectrum part of building our new Egypt…(it) is shared properly by incumbents and Unified license still a cornerstone.’ mobile operators will help to maximize pending as some issues the use of this limited resource. Spectrum Sharing recommends a still to be resolved DoT invites bids for regulatory regime that provides Egypt’s recently approved unified e-auction licensing regime has yet to come greater certainty and predictability to The government has finally initiated into full effect, Reuters reports, citing prospective licensees in order to help the process of auction of spectrum. The communications minister Atef Helmy. ensure that the spectrum is put to its department of telecommunications It is understood that continued delays highest and most productive use. For (DoT) has invited bids from e-auction have come about in light of the fact sharing to be successful, the sharing companies for this process. A Times of that some issues remain unresolved environment must be well understood, India’s sister concern was responsible with regards to the regulatory plans. commercially feasible and suitable for conducting earlier auction of According to Mr. Helmy, the local for the provision of the envisioned spectrum. DoT has asked for Request telecoms regulator is still finalizing services. “The proper and best use of of Proposal for selection of an agency certain details related to the spectrum is a hot topic in the current to conduct e-auction of spectrum licensing scheme, though the unified era of mobile technology,” commented on simultaneous multiple-round concession itself – which will allow Neeti Tandon, Lead Member of ascending auction (SMRA) pattern in fixed line incumbent Telecom Egypt Technical Staff (LMTS) at AT&T, and the 22 telecom service areas (TSAs). 4G Americas work group leader and (TE) to enter the mobile editor of the paper. “Spectrum sharing sector under its owns is an important option to consider steam – is expected to be for the mobile broadband capacity activated within weeks. challenge; however, regulatory ‘The work is going on and support and substantial additional we are expecting within research and development efforts are the coming few weeks needed to move these technologies to be able to finalize into mainstream use.” everything and announce it,’ the minister was cited as saying. With the TRA sponsors Arab ICT unified licence law having Forum 2014 stipulated the creation of a new company dedicated The Arab ICT Forum 2014 starts under to developing Egypt’s the Patronage of the Chairman of telecom infrastructure – the Telecommunications Regulatory a role so far carried out Authority (TRA) of the Kingdom of by TE – Helmy noted

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Interested parties should submit hearing and visual disabilities. It held expert Martín Becerra. Video-on- bids by November 11, 2014. DoT the initiative in collaboration with demand services or mobile voice will hold a pre-bid conference with the Prince Mohammed bin Salman communications would be much more interested parties on October 27, with Charitable Foundation. (October 28, feasible with 4G technology. the companies that are interested in 2014) Arab News 2014 e-auction. For last round of auction, Regulatory consequences DoT paid Rs five crore fixed fee. The call for tenders specifies in All set for 4G spectrum article 23 of the current regulation Government will regulate auction that the successful bidders would There may finally start to be an answer be forced to share infrastructure. video-sharing sites for a long-standing demand from This means companies already in The Ministry of Culture and mobile phone users for better service the telecommunications business Information will soon regulate all with this Friday’s auction of 4G spectrum would not be able to deny access to video and image-sharing websites on that would lead to faster and more 4G technology to new companies. the Internet to ensure they comply efficient wireless communications Other regulations gave newcomers an with the country’s laws, an expert said in the country. Telefónica Móviles additional six months to comply with here Sunday. Hamza Al-Ghubaishi, Argentina (Movistar), Telecom minimum coverage area requirements. organizer of the Digital Visual Forum Personal, AMX Argentina (Claro) and Initially, three surprising new bidders that concluded in Riyadh on Sunday, the national Vila-Manzano-owned signed up to compete with the said the ministry’s General Authority Arlink are the four bidders expected classic big-three telecommunication for Audio and Visual Media has been to compete for the 180 mhz available, companies of Telefónica, Telecom and entrusted with this task. During the which the Communications Secretariat Claro. But Nextel and Cablevisión — first session of the forum, Al-Ghubaishi will grant to the winners said many young people do not for the next 15 years. A know that they have to get permits rapid migration of users to produce content on YouTube and to 4G is expected, with similar sites. “Many such clips contain Motorola already setting ethical and religious violations. There up an assembly plant for has been no government body until 4G-compatible mobile now to supervise or regulate such phones in Tierra del Fuego channels, or issue permits,” he said. province. The company He said an additional task of the announced last week that authority is to raise awareness among production would start in young people on the importance of the first quarter of 2015. quality production. Al-Ghubaishi said Mobile phone services the authorities are still considering in Argentina have long the establishment of cinemas in the suffered from chronic Kingdom. Rami Damanhouri, human underinvestment and the resources development officer at impact of a growing number of users which had also paid the 200,000 pesos MBC Group, said that Shahid, the using increasing amounts of data. The required to buy the tender documents leading video-on-demand service, result for users has included weak — decided to opt out of the October was launched in 2008 to increase telephone signals, choppy connections 31 auction at the last minute. the number of Arabic viewers by 5 and dropped calls. Since November, Speculation about the method of percent. He said most Shahid viewers companies have been able to begin payment surrounded these decisions, are Saudi, and 40 percent watch setting up the support infrastructure with Cablevisión’s owner Grupo Clarín television on the Internet. Abdul they would need for the shift to complaining about the government Rahman Al-Tariri, media consultant 4G. When ready, the technology is “favoring foreign companies” citing at Rotana Group, said his group sees expected to multiply data-transfer the difficulty that national firms have the Internet as a platform to watch speeds by a factor of 10 and make in accessing financing. Both Clarín television. He said Rotana Khalijia set the use of antennas more efficient, and Arlink have argued against the up six channels on YouTube to feature allowing more people to be covered clause that specifies that payment weekly programs. Faisal Al-Saif, a by each antenna without affecting has to be made in dollars or dollar- Saudi television presenter, said there speed. As users move from older denominated bonds instead of pesos. is a lack of tourism programs on the technologies to 4G, radio spectrum Last week, Clarín newspaper claimed Kingdom on these websites. He said should also be freed up in the older that the government had abandoned there has been an increase in viewers and currently very congested 2G and its decision to force payment in dollars on YouTube compared to official 3G services, meaning an improvement after Cablevisión opted out of the television networks. Jawaher Haydar, in quality across the board. auction, but the Planning Ministry who set up a television channel, said: The emergence of 4G on the market denied that was the case. “I established the channel, Hayati could “indirectly modify users’ Sucar (My Life is Sugar) because I habits and the way in which they have diabetes and wanted to raise handle the flow of communications awareness on the issue.” Several and entertainment, through the participants spoke about their improvement of mobile Internet personal experiences using Instagram. connections to access services and The forum catered to those with apps,” said University of Quilmes

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A SNAPSHOT OF REGULATORY ACTIVITIES IN SAMENA REGION

Algeria Mostaganem, El Oued, Bechar, Ain Defla President: Mr. Toufik and can now launch its 3G network in four Bessai additional provinces, namely: Setif, Tizi- [Regulatory Authority for Ouzou, Boumerdes and Djelfa. In October Post & Telecommunication 2013 the ARPT issued 3G concessions (ARPT)] to Mobilis, Nedjma and Djezzy. Djezzy received 2×15MHz paired blocks in the Telecoms operators in Algeria may be 1960MHz-1975MHz and 2150MHz- subject to a new system of financial 2165MHz bands. The operator’s 3G Regulatory penalties in 2015, should a draft Financial network went live in seven provinces in Act be approved by the National July 2014. Under the terms set out by its Updates People’s Congress (NPC). The proposed license, the company must provide 3G amendment notes that financial penalties services in Ain Defla, Algiers, Bechar, Blida, must be in line with the severity of the Boumerdes, Constantine, Djelfa, El Oued, violations committed. The new approach Mostaganem, Oran, Ouargla, Setif, Skikda seeks to introduce more transparency and Tizi-Ouzou by the end of 2014. in terms of the application of penalties (October 6, 2014) telegeography.com against offenders. (October 16, 2014) Agence Ecofin Bahrain Algerian mobile operator Orascom Chairman: Dr. Mohammed Telecom Algeria (OTA), operating in the Al Amer country under the Djezzy brand, has been [Telecommunication certified by telecoms watchdog the ARPT Regulatory Authority (TRA)] to deploy commercial 3G services in four ‘optional’ wilayas (provinces), following an Batelco has signed a new transformation evaluation of its coverage and quality of agreement with Ericsson under which service (QoS) obligations, as outlined in the Swedish vendor will upgrade Decision No.108/ PC/ANRT/2014, dated its 4G network. The infrastructure OCTember 24, 2014. According to a press enhancements, which are already release, the cellco has met its obligations underway, will reportedly provide faster to provide 3G services in Algiers, mobile broadband speeds, improved Constantine, Ouargla, Oran, Blida, Skikda, voice quality, new services and offers,

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SAMENA TRENDS _ OCT_2014 as well as increased coverage. Commenting on the Union (ITU) defined the 90MHz as a mobile band. “And development, Batelco Group CEO Alan Whelan was cited on this ground, BTRC decided to relocate AONB to as saying: ‘The 4G network enhancement is a part of a elsewhere though it violated the ITU’s radio regulations series of rollouts being implemented as a result of our recently while allocating spectrum for Ollo,” a senior ongoing investment in [Bahrain’s] infrastructure.’ Batelco official of BTRC told. In October 2013, BTRC allocated accounted for 43.5% of Bahrain’s mobile market at end- 40 megahertz of spectrum in 2,500 and 2,600 band for June 2014, ahead of Bahrain’s other main players, Zain Bangladesh Internet Exchange Ltd, a foreign ISP, as per Bahrain (32.3%) and Viva (24.2%). the price of 2008 auction and got a WiMAX license. “At (October 14, 2014) telegeography.com that time BTRC did not bother about the ITU regulation, but when the AONB spectrum cancelation issue came, it Zain Bahrain has announced the results of its initial now introduces ITU regulations,” the regulatory official public offering (IPO), in which 48 million shares (15% also said. The telecom regulator also formed a special of the company’s issued shares prior to offering) were committee to prepare auction procedure for 700 band allotted in the period OCTember 2 to OCTember 30, spectrums in a commission meeting as part of a draft 2014. Bahraini retail and Bahraini/GCC country-based roadmap to sell out the most valuable spectrum as of institutional investors subscribed to around 16.7 million now. The telecom experts said the government could shares amounting to 34.8% of the offering while the earn more revenues from this spectrum than any others remaining 31.2 million shares (65.2% of the IPO) were as the 700 band covers more people than other band subscribed to by the underwriter. Based on the IPO spectrums. This band is also cost-effective for the price, the company would be valued at BHD60.8 million operators, they added. The mobile operators will decide (US$161.2 million), although a report by Mubasher how much spectrum they will buy after going through Financial Services said the IPO price was at a discount the BTRC’s final documents.(October 17, 2014) dhakatribune.com to fair value, and instead valued Zain Bahrain at BHD88.2 million, implying a 26% upside to the IPO price. (October 3, 2014) TradeArabia News Egypt Executive President: Eng. Hesham El Alaily [National Telecommunication Regulatory Bangladesh Authority (NTRA)] Chairman: Sunil Kanti Bose [Bangladesh Telecommunication Regulatory Egypt’s recently approved unified licensing regime Commission (BTRC) has yet to come into full effect. It is understood that continued delays have come about in light of the fact The telecom regulator is rearranging some of its valuable that some issues remain unresolved with regards to spectrums in 700-megahertzband earlier allocated to the regulatory plans. According to Telecom Minister other companies and also planning the country’s largest Mr. Helmy, the local telecoms regulator is still finalizing auction by June next. Bangladesh Telecommunication certain details related to the licensing scheme, though Regulatory Commission (BTRC) recently in a commission the unified concession itself – which will allow fixed meeting decided to replace an Internet Service Provider line incumbent Telecom Egypt (TE) to enter the mobile (ISP) – Always On Network Bangladesh Ltd (AONB) – sector under its owns steam – is expected to be activated with another band spectrum from its allocated 6+6 within weeks. ‘The work is going on and we are expecting Megahertz (704-710/734-740). But the commission within the coming few weeks to be able to finalize failed to decide where to relocate AONB. The spectrum everything and announce it,’ the minister was cited as came in 2006 from AONB, an America-based company saying. With the unified license law having stipulated that has so far established 46 Base Stations for serving the creation of a new company dedicated to developing 13 lakh customers, according to BTRC statistics. The Egypt’s telecom infrastructure – a role so far carried out band will facilitate offering a better, less costly and more by TE – Helmy noted that military-controlled companies expanded mobile broadband service by the mobile would play an important part in this new entity, though operators than now. “We want to earn much from the denied that the army would have a controlling stake; auction of spectrum in the 700 megahertz band and with existing telcos and other firms also involved in that’s why it is mandatory to cancel the AONB allocation the venture, precise roles are still to be determined. and we are going to do it,” a senior official of BTRC told Meanwhile, Egypt is said to be seeking investment of up the Dhaka Tribune before. BTRC sources also said the to US$9 billion with a view to upgrading the country’s regulatory commission has a plan to earn more than Tk telecommunications infrastructure as part of efforts to 9,300 crore from 90 MHz of spectrum in the 700 bands attract multinational businesses and restore growth. in 2014-15fiscal year while its total earning target is According to Helmy, between US$5 billion and US$6 Tk13,829 crore from this fiscal. In last fiscal, BTRC earned billion is required for the rollout of broadband services more than Tk 4,257 crore from 3G spectrum auction across Egypt, while a further US$3 billion will be used for which was held in OCTember 2012, the biggest auction the construction of seven technology parks which could ever in the country. Referring to different sources, the lure multinational companies to invest in Egypt and telecom watchdog expects that mobile operators will create local job opportunities. With a number of these attend this auction and tend to this spectrum in a bid investment opportunities expected to be presented at to promote their network efficiency. A senior official of an economic summit due to be held in Sharm-al-Sheikh BTRC said in between 698 and 806 megahertz they have in February 2015, the minister was cited as saying: ‘There 90 megahertz of spectrum in the lot, but they can hardly is no doubt that the telecoms and technology sector is offer 40 megahertz for auction if AONB’s presence is one of the most competitive sectors when it comes to there. The telecom watchdog in its meeting said the investment and as part of building our new Egypt (it) is a Radio Regulation of International Telecommunication cornerstone.’ (October 22, 2014) reuters.com

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Egyptian cellcos Egyptian Company for Mobile Services the market today, despite its success, is too constrained. (MobiNil) and Vodafone Egypt have reportedly The GSMA also wants to see the urgent release of been offered the option of renewing their respective additional spectrum in the 700MHz, 800MHz, 1.8GHz and concessions through to 2031 at a cost of EGP1 billion 2.1GHz bands, and access to transmission infrastructure (US$140.8 million) each. In a statement sent to the at acceptable prices for all market participants. Quite Egyptian stock exchange by MobiNil confirming the a long wish list, really. Egypt’s mobile operators, says offer of a longer term for its license, the cellco is currently the report, are becoming increasingly constrained in studying the draft proposal. Last month the Egyptian terms of network capacity and the profitability of their authorities approved a new unified telecoms license services. The country currently has three operators – regime under which fixed line incumbent Telecom Egypt Mobinil, Vodafone and Etisalat – but will soon be joined is allowed to enter the wireless market under its own by fixed telco Telecom Egypt. However, Telecom Egypt steam, subject to paying a EGP2.5 billion fee. All three of doesn’t have any spectrum, so will have to create an the countries mobile network operators, meanwhile, now MVNO with one of its rivals. Meanwhile, Egypt’s mobile have the option of paying EGP100 million to upgrade broadband penetration (which is in the range of 28 to 31 to a unified concession under which they would be per cent, depending on who’s measuring) lags behind allowed to offer services over TE’s fixed infrastructure. As its regional neighbors in the Gulf; Bahrain, Qatar, Oman, such, it is understood that should MobiNil or Vodafone UAE and Saudi Arabia; although ahead of Tunisia, Sudan Egypt opt to pay to prolong their existing licenses, this and Syria. “These constraints, combined with a lack of extension would cover all areas of operation, including radio spectrum to support the latest mobile broadband mobile, and fixed, should either upgrade to a unified technology, are stifling economic growth,” said Tom concession. (October 16, 2014) Ahram Online Phillips, chief regulatory officer at the GSMA. “Policies that encourage investment in mobile broadband and A new report from the mobile trade association GSMA enable additional spectrum to be allocated for mobile and written by Plum Consulting suggests that Egypt services are critical to transforming Egypt’s economic needs to develop its mobile broadband opportunities future.” (October 2, 2014) telecomtv.com if it is to benefit from associated economic gains. With one of the world’s lowest levels of spectrum assigned to mobile and a limited fiber capacity, the Iran report calls for a change of regulatory policies to aid Minister of Communication & Information mobile operators. By taking action to increase mobile Technology: broadband penetration, the GSMA says the Egyptian Mr. Mahmoud Vaezi [Communication regulatory Commission government could unlock an additional $43 billion in (CRC)] GDP and help create 1.2 million new jobs across the economy by 2030. In response, Mr. Atef Helmy, Minister of Communications and Information Technology, The International Court of Arbitration in the Netherlands invited the mobile industry to convene a joint task has delivered a ruling against Turkcell in its six-year case force to address the current constraints and assess the against the Iranian government over the revocation of a demand and supply requirements to fast-track mobile GSM license in 2004. A consortium led by Turkcell was broadband roll-out. “Following successful discussions, approved as the winning bidder in a tender to take a it is now time for the government and industry to take 51% stake in the newly created national mobile licensee concrete steps to foster innovation and growth through Irancell in February 2004, but the deal with Turkcell mobile,” said Helmy. “This cooperation is a critical part ran into difficulty, with conservative Iranian politicians of our joint effort to enhance the lives of our citizens unhappy with the involvement of a Turkish firm in one of and position Egypt as a leader in the region.” The report the country’s main communications networks. Turkcell calls for the adoption of a stable regulatory environment had been seeking a majority stake in Irancell but the to support private sector investment in both fibre and government pushed through legislation in April 2005 mobile networks, together with the development of a to limit its stake to 49%; the cellco says it then faced a new national broadband plan. However, Egypt already number of other blocking tactics and it was left with little has an official broadband plan in place, which was choice but to walk away from the deal. The Turkish firm adopted in 2011. But the report’s authors say its targets went on to launch its legal case against Iran in January are no longer relevant – the country is a huge way off its 2008. Meanwhile, MTN of South Africa took Turkcell’s 2015 fixed broadband target (75 per cent of households place in the consortium in October 2005 and Irancell having 2Mbit/s access by next year…) but has already has gone on to take second spot in the country’s mobile exceeded its mobile broadband one. Only last week, the market, with 42.7 million subscribers at the end of June ITU’s Broadband Commission released its annual report, 2014. (October 20, 2014) telegeography.com which showed that Egypt ranks a lowly 104th in terms of fixed broadband penetration, with 3.3 per cent take-up (please note, the ITU defines broadband as a ridiculously Iraq low 256kbit/s or more). In terms of household Internet Chairman: Dr. Saffa Al Din access, Egypt has 34.5 per cent penetration. However, [Communication & Media Commission (CMC)] it fares better with mobile broadband, ranking 62nd with 31.1 per cent. The GSMA estimates that there were approximately 100 million mobile connections and 24 The government is asking the nation’s cellcos to pay million mobile broadband connections as of June this US$307 million each for 3G spectrum, despite the year. So if Egypt has met and passed its mobile broadband impact of the region’s ongoing security crisis. The trio of target of 10 per cent penetration (8m people), why not operators – Zain Iraq, Asiacell (partly owned by Qatar’s celebrate the fact? The report argues that the key is in Ooredoo Group), and Korek Telecom (part-owned by “unconstrained access” to mobile broadband, and that

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Orange Group) – have fiercely criticized the proposal, Lebanon pointing out that the spectrum would only be valid for Acting Chairman & CEO: Dr. Imad Hoballah the remaining eight years of their current operating [Telecommunication Regulatory Authority licenses and highlighting the substantial increase (TRA)] in operating costs due to the violent uprising in the country. The government granted the three operators permission to use the 3G frequencies in May this year, Alongside the extension of the private management ostensibly reversing the previous decision to allocate the contracts of state-owned cellcos Touch and Alfa for an undefined period, Lebanese telecoms minister Boutros spectrum via auction. (October 15, 2014) reuters.com Harb yesterday (2 October 2014) presented three

options to the cabinet regarding the future of Lebanon’s Jordan mobile networks, the Daily Star reported. ‘The minister Chairman of the Board of Commissioners/ extended the contract with us for an unlimited period CEO: until he returns with a clear answer from the cabinet on Mr. Mohammad Al Taani his new proposals,’ a spokesperson for Alfa (managed [Telecommunication Regulatory Commission by Egypt’s Orascom Telecom Media & Technology (TRC)] Holding) told the paper on the day of contract expiry Zain Jordan has signed a deal with Chinese vendor (30 OCTember), while Kuwait-based Zain Group’s Huawei for the supply and construction of Kingdom’s contract for managing Touch was also extended on the first 4G network. Zain assessed bids from five potential expiry date. Harb has asked fellow ministers to opt for providers based on their financial offers and technical one of the following options: renew the contracts with standards. The cellco has already begun laying the the existing management firms under new conditions; groundwork for the launch of 4G, Zain CEO told press, launch a new tender open to prospective international noting that it had invested JOD10 million (US$14.05 market entrants; or allow the telecoms ministry to million) in 2014 to upgrade its backhaul network, manage the mobile networks itself (keeping on all the including the implementation of Dense Wavelength existing staff at Touch and Alfa except ‘management’). Division Multiplexing (DWDM) and Multiprotocol Lapel The cellular networks generate over USD1.5 billion in Switching (MPLS) technologies. Zain expects to spend annual combined revenue for the treasury, making it the JOD50 million during the current financial year further third largest source of state income after customs and upgrades to support its Long Term Evolution (LTE) VAT, but Touch and Alfa have been criticised for poor launch. The operator is sticking to its target of making quality mobile connections. (October 3, 2014) telegeography.com the service available before the end of the year, although it will not be launched nationwide until 2015. Morocco (October 6, 2014) telegeography.com Director General: M. Azdine El MountassirBillah [Agence Nationale de Reglementation des Kuwait Telecommunications (ANRT)] Minister of Communication: Eisa Ahmad Alkandari The turnover of the sector of information and [Ministry of Communication (MOC)] communication technology (ICT) in Morocco jumped from € 750 million in 1999 to € 3 billion in 2013, Kuwait Investment Authority (KIA), the country’s revealed the National Agency of telecommunications sovereign wealth fund, has announced that it would sell Regulation (ANRT). The sector has thus become the its stake in Kuwait Investment Co (KIC) in 1H 2015, while biggest tax-payer in the country and grabs much of its share in telecoms operator Zain Group and the Kuwait the foreign direct investments injected in the Kingdom. Finance House would be offered to the public ‘at a later Morocco has over 43 million subscriptions to mobile time’. KIA said that it will continue to support the local telephony with a penetration rate of 130 pc and 8 market by reinvesting capital raised from offloading million Internet customers, who are mainly connected the shares in investment products and funds. Following through 3G (88 %.) The figures were disclosed by ANRT the announcement, the Kuwaiti Stock Exchange (KWSE) during the 12th annual meeting of the Francophone suspended trading of KIC, Zain Group and Kuwait Network of telecommunications regulation (FRATEL) Finance House shares, pending more clarification of held recently in Marrakech. The ICT sector is a major KIA’s plans; trading of the stocks will resume on October lever for the development of an information society 26, 2014. Zain Group had market capitalization of and the emergence of a digital economy in Morocco KWD2.853 billion (USD10.07 billion) at end- OCTember which needs to take up the challenge of meeting the 2014, placing it in the top 20 ranking of the largest increasing demand and boosting the networks capacity Middle Eastern companies. KIA owns a 24.61% stake, and flows, said the ANRT, which insisted on the key role while the largest private shareholder is Kuwaiti-based played by the sector in the country’s overall economic Kharafi Group with a 15.47% stake (up from around 9.5% and social development. The ICT sector in Morocco is in 2008). 9.83% of Zain’s stock is held as treasury shares, very attractive to foreign investors. Last May, Middle- with the remainder floated on the Kuwaiti bourse.(October East Telecom giant, Etisalat, finalized the acquisition of 24, 2014) telegeography.com 53pc of stakes held by the French company Vivendi in Morocco’s leading telecom operator, Maroc Telecom, for $4.4 Billion. By January 1, 2015, French telecom group “Orange” is expected to increase by 9 % its share in the capital of Méditel, the second telecom operator in Morocco, and is said to have started

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SAMENA TRENDS _ OCT_2014 finalizing the takeover. The takeover was provided for Asia and Australasia region, 13 seats were available for in the shareholders’ agreement of 2010, under which 18 candidates in which Pakistan secured its position with Atlas Services Belgium, a subsidiary of Orange group, a total of 101 out of 167 votes. Pakistan first became acquired 40% of Méditel for € 640 million. After the part of the ITU Council in 2002. PTA then managed to transaction, Orange will own 49% of Méditel while the retain membership in 2006 but lost it in 2010 when two other shareholders, Finance Com and La Caisse de Mian Muhammad Javaid was nominated as candidate. Dépôt et de Gestion (CDG) will keep 25.5% of shares State Minister Anusha Rehman Khan represented each. The 130 participants in the Marrakesh meeting Pakistan at this year’s Conference. The ITU Council focused debates on the exponential growth in mobile acts as the governing body of the organization in- traffic that can saturate the available frequencies and on between conferences which take place every four years. means to increase capacity and flows in future mobile The Council plays a major part in telecommunication networks to provide very high speed mobile services policy and strategy development. Being part of the ITU to customers. The meeting stressed the need to enable Council will allow Pakistan to have a voice in the future developing countries have access to affordable technical direction of global information and communication solutions in line with the democratization of information technologies. The countries that will be representing technology which has direct impacts on economic the region alongside Pakistan for the next four years development. (October 10, 2014) northafricapost.com will be China, Korea, Japan, Indonesia, Kuwait, United Arab Emirates, Australia, Bangladesh, Philippines, Saudi Arabia, Thailand, India and Pakistan. Malaysia, Sri Lanka, Oman Lebanon, Iran and Bahrain failed to secure any position. Executive President: Dr. Hamed Al-Rawahi In other news from the Conference, Houlin Zhao was [Telecommunication Regulatory Authority elected as the next ITU Secretary General. Zhao has held (TRA)] the position for the previous two terms and received

a unanimous vote. His term will begin on the 1st of

The Telecom Regulatory Authority (TRA) has stepped January 2015. (October 27, 2014) propakistani.pk in to check mobile phone users from unofficially transferring their phone numbers to others for a sum. Ministry of Information Technology and The telecom watchdog has said that any such transfer Telecommunication (MoITT) has published a draft for money is illegal. “It is forbidden under the law to Telecommunications Policy for wider stakeholder trade in GSM numbers. The TRA has banned it. Under consideration and comments from the general public. certain circumstances, individuals are allowed to transfer The draft is based on recommendations from consultants, the numbers to their close family members,” a TRA the Pakistan Telecommunications Authority (PTA) and spokesperson said. There are several establishments the Frequency Allocation Board (FAB), as well as telecom that trade GSM numbers. A TRA statement said, “It is the operators and organizations. The broad aim of the policy TRA’s intention to educate subscribers that the payment is to implement the government’s ‘vision’ for the sector: of a fee to acquire these numbers does not bring about ‘Universally available, affordable and quality telecom the transfer of ownership to the person allocated the services provided through open, competitive, and well number. TRA reserves the right to withdraw any number managed markets and used by all to the benefit of the allocated to a user if required in public interest.” TRA economy and society.’ The policy covers a range of topics further said trading in telephone numbers is punishable including: competition, licensing, interconnection, right under the Telecommunications Regulatory Authority of way, internal networks, infrastructure and resource Act. Action will also be taken against those who obtain sharing, quality of service (QoS), universal service and misuse phone numbers issued to expats who are no provision, research and development (R&D) and satellite services. Notably, the policy sets out rules to allow for longer resident in Oman. (October 25, 2014) muscatdaily.com spectrum trading to take place, although it will only be permitted under certain specific conditions. Similarly, Pakistan operators will be permitted to share spectrum resources, Chairman: Dr. Syed Ismail Shah although the MoITT notes that sharing spectrum does [Pakistan Telecommunication Authority (PTA)] not absolve the licensee from any rollout obligations that they might be subject to. Elsewhere, the PTA and the federal government will develop regulatory instruments Pakistan has won a seat on the ITU Council in elections to enable the provision of voice-over-internet protocol held in Bushan, South Korea earlier today. The country (VoIP) and over-the-top (OTT) services, where the service had lost its place in elections held in 2010 but managed provider may not have any equipment installed within to get back its seat in this year’s elections by one the territory of Pakistan. These measures must take vote. International Telecommunication Union is a into consideration the potential requirement for scarce specialized agency of the United Nations that deals resources (i.e. numbering) and the requirement for with issues concerning information and communication lawful interception as well as interconnection and access technologies. These issues include but are not limited to emergency services. The issue of Net Neutrality is also to improving communication services and allocation covered, and attempts to reach a compromise between of radio frequencies and satellite orbits. The ITU also providing operators with commercial options and strives to improve the access of ICT to underserved preventing anti-competitive practices. The draft policy communities across the world. The ITU recently held the allows internet service providers (ISPs) to throttle and 19th ITU Plenipotentiary Conference which decided 12 shape traffic on the condition that they provide access to members of the Radio Regulations Board (RRB) and 48 ‘all services without discrimination through the technical members of the ITU Council through an election. In the characteristics of the service.’ Further, backhaul, transit

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SAMENA TRENDS _ OCT_2014 services and gateways between operator networks may Saudi Arabia not discriminate between the access provider’s own services, or services that the access provider favors, and Governor: Eng. Abdullah A. Al Darrab other services. (October 10, 2014) telegeography.com [Communication & Information Technology Commission (CITC)]

Qatar The Ministry of Culture and Information will soon regulate all video and image-sharing websites on the Executive Director: Mr. Graeme Gordon Internet to ensure they comply with the country’s laws, [Communications Regulatory Authority (CRA)] an expert said. Hamza Al-Ghubaishi, organizer of the Digital Visual Forum that concluded in Riyadh, said the ministry’s General Authority for Audio and Visual Telecoms group Ooredoo has posted consolidated Media has been entrusted with this task. During the first revenue in the third quarter and first nine months session of the forum, Al-Ghubaishi said many young of 2014 which dropped year-on-year by 1% and 3% people do not know that they have to get permits to respectively to QAR8.335 billion (US$2.267 billion) and produce content on YouTube and similar sites. “Many QAR24.839 billion. Group EBITDA also shrank, by 7% and such clips contain ethical and religious violations. There 9% in 3Q14 and 9M14 respectively to QAR3.365 billion has been no government body until now to supervise and QAR10.234 billion, although net profit attributable or regulate such channels, or issue permits,” he said. to Ooredoo shareholders increased by 11% to QAR375 He said an additional task of the authority is to raise million in Q3 and rose by 0.5% in January-OCTember to awareness among young people on the importance of QAR2.079 billion. Consolidated customer base across quality production. Al-Ghubaishi said the authorities the group grew by 7% to 95.7 million at 30 OCTember are still considering the establishment of cinemas in 2014, up from 89.6 million a year earlier. Ooredoo’s the Kingdom. Rami Damanhouri, human resources earnings release attributed the negative group revenue development officer at MBC Group, said that Shahid, the trend to the challenging market environments in leading video-on-demand service, was launched in 2008 Indonesia, Kuwait, Iraq and Tunisia, which offset positive to increase the number of Arabic viewers by 5 percent. performances in Qatar, Oman and Algeria; excluding the He said most Shahid viewers are Saudi, and 40 percent impact of Indonesian foreign currency exchange (FX), watch television on the Internet. Abdul Rahman Al-Tariri, group revenue would have increased by 1% in 9M14. media consultant at Rotana Group, said his group sees Ooredoo added that, excluding the impact of Indonesian the Internet as a platform to watch television. He said FX and start-up costs in its newest market Myanmar Rotana Khalijia set up six channels on YouTube to feature (where its 3G network launched in mid-August 2014), weekly programs. Faisal Al-Saif, a Saudi television EBITDA would have decreased by 3% compared to the presenter, said there is a lack of tourism programs on reported 9% reduction in 9M14. Announced alongside the Kingdom on these websites. He said there has been the financial results, Ooredoo’s Omani subsidiary, an increase in viewers on YouTube compared to official formerly branded Nawras, has now officially adopted television networks. The forum catered to those with the Ooredoo brand. Ooredoo also noted in its earnings hearing and visual disabilities. It held the initiative in release that its Indonesian subsidiary Indosat has taken collaboration with the Prince Mohammed bin Salman a ‘prudent’ provision of QAR416 million against the Charitable Foundation. (October 28, 2014) Arab News 2014 pending final outcome of a court case relating to a 2006 contract under which Indosat’s subsidiary IM2 leased The penetration rate of mobile phones among Saudi capacity on its parent’s 3G network for mobile dongle- nationals climbed to 170 percent and outperformed the based services; on 16 OCTember 2014 a fine against IM2 global rate of 93 percent, according to a financial report. was reportedly decided on, but formal notification of the The Kingdom came in the 9th and 3rd positions at the decision is awaited. (October 28, 2014) telegeography.com global and Arab-Gulf levels, respectively, in terms of the mobile penetration rates compared to their respective Mobile and fiber broadband operator Vodafone Qatar populations, the report, compiled and analyzed by Al- has reached a non-binding agreement to buy state- Eqtisadiyah daily, said. (October 10, 2014) zawya.com owned passive broadband infrastructure operator Qatar National Broadband Network (QNBN), and expects to Revenues of the telecom sector in the Kingdom are complete the deal by the end of 2014 pending further poised to grow by 2 percent by year-end and 4.7 percent due diligence and regulatory approval. UK/Qatari- by the end of next year (2015), local media said quoting backed Vodafone Qatar proposed to buy 100% of QNBN, a financial report. “We expect the sector to record a comprising 21 million shares at a par value of QAR10 revenue growth of 2 percent in 2014 and 4.7 percent (US$2.75) per share (equating to a total of QAR210 in 2015 to reach SR82.6 billion,” said equity research million, although the company did not confirm if it analyst at NCB Capital. He said valuations will remain offered to pay par value). QNBN provides wholesale fiber attractive for the Saudi Telecom Co. (STC) and Etihad broadband capacity to Vodafone and its larger mobile Etisalat Co. (Mobily) boosted by strong fundamentals, and fixed rival Ooredoo (which reciprocally contributes dividend outlook and opening of Saudi stock market to shared fiber infrastructure to QNBN). QNBN began a international investors. For future outlook, the analyst nationwide passive fiber network rollout in 2012 under a gave “overweight” for STC and Mobily and “neutral” for plan to finish construction in three years. Vodafone Qatar Zain Saudi Arabia, the paper said. The slowdown in the stated: ‘Completion of the transaction is conditional telecom sector remains a key concern, he said. Despite upon regulatory approvals and consents, completion of the expected growth of revenues, key strengths of the due diligence, agreement on the consideration payable, sector come from attractive valuations and high dividend the arrangement and provision of funding to finance the yield, he said. He gave preference to STC based on its acquisition and entry into of a definitive share purchase strong balance sheet, potential of higher dividends and agreement.’ (October 3, 2014) reuters.com

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SAMENA TRENDS _ OCT_2014 attractive P/E of 12.0X for next year (2015), the paper cellco Astelit’s revenues increased by 16% in local said. The report said frequent and high dividend yields currency terms to UAH1.145 billion (US$88.4 million) but are the sector’s key strength. The current dividend yield declined by 21% in group reporting (TRY) terms due to for the telecom sector is 4.3 percent compared with 62% currency devaluation in Ukraine. nearly 2.6 percent for the Saudi stock market (TASI). STC (October 27, 2014) telegeography.com and Mobily are among few companies in the market that pay quarterly dividends, the report said. The analyst expected that growth in the telecom will continue in the United Arab Emirates next two years driven by the data sector and, further, Director General: Mr. Mohamed Nasser Al Ghanim by the growing penetration rates of the low-cost [Telecommunication Smartphone sets. (October 5, 2014) arabnews.com Regulatory Authority (TRA)] Du has achieved Voice over LTE (VoLTE) functionality in Tunisia its live network recently, following the deployment of President: Mr. Hassoumi Zitoune Nokia’s VoLTE solution and Professional Services. Nokia [National Telecommunication Commission (I designed, tested and integrated VoLTE into du’s multi- NTT)] vendor LTE network and achieved the implementation in just 80 days, marking this as the world’s fastest Ministry of Higher Education, Scientific Research, implementation. Recent tests in Nokia Networks Smart Information Technology and Communication (Mincom) Labs show that VoLTE clients are network friendlier than has confirmed that it completed all preparations for other clients as overall data volume consumed over a issuing concessions for mobile virtual network operator period of time show significantly lower consumption (MVNO) services in May this year, but has not yet for VoLTE, thanks to its more efficient behavior during received any applications for the licenses. Local news stand-by mode. VoLTE clients also consume less portal THD writes that Mincom has requested that any Smartphone battery compared to other clients and put interested parties that filed applications prior to that less signaling load on networks. For this project, Nokia’s date complete the final pieces of paperwork. Once the VoLTE solution consisting of its Liquid Core based IMS last documents have been submitted, Mincom will issue was supplied while its Professional Services carried out letters of support to the would-be MVNOs ‘to facilitating the network planning and optimization, smooth system the contractual and administrative procedures with integration, and network implementation in the complex the intervening structures, such as other government multi-vendor environment. In addition, Nokia Networks agencies and public network operators.’ Mincom has provided LTE radio access to du’s commercial network. also urged any other prospective providers to submit an (October 6, 2014) cellular-news.com application. (October 20, 2014) telegeography.com

Turkey Chairman & CEO: Dr. Tayfun Acarer [Information & Communication Technologies Authority (BTK)]

Consolidated revenues at Turkish telecoms group Turkcell climbed by 6% year-on-year in the third quarter of 2014 to TRY3.162 billion (US$1.415 billion), up from TRY2.981 billion in 3Q13, driven by higher growth in mobile broadband and fiber broadband revenues. Group EBITDA rose by 3% to TRY1.050 billion in the three months ended OCTember 30, 2014, compared to TRY1.016 billion in the year-ago period, although the EBITDA margin declined to 33.2% from 34.1% y-o-y, resulting largely from increased sales and marketing expenses (due to intense competition in the Turkish mobile market, higher Turkish mobile interconnection and network costs, and increased operational expenses of other subsidiaries). Group quarterly net income rose by 8% to TRY755 million (TRY699 million). Turkcell’s mobile business in Turkey recorded y-o-y revenue growth of 5% to TRY2.477 billion in Q3 2014, while posting a 33.5% (down from 34.5%) EBITDA margin; Turkish quarterly mobile broadband revenues jumped by 38% to TRY530 million (from TRY385 million) while voice revenues also rose, by 0.7% to TRY1.676 billion. Combined revenues of other subsidiaries increased by 11% y-o-y to TRY685 million and EBITDA of subsidiaries rose by 11% to TRY222 million. Turkish broadband operator Turkcell Super online grew its revenues by 38% y-o-y in Q3 on the strength of a growing fiber customer base. Ukrainian

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SAMENA TRENDS _ OCT_2014

REGULATORY ACTIVITIES BEYOND THE SAMENA REGION

Argentina to the sale. If the sale of 51% of Sofora to Fintech is not completed within two and Telecom Italia (TI) has a half years, TI may then elect to either accepted an offer from terminate the agreement with Fintech investment firm Fintech and receive a six-month call option to Group to amend and purchase the 17% minority interest in restate their original existing agreement Sofora previously sold to Fintech pursuant regarding the sale of the Italian company’s to an agreed formulation, or sell its 51% entire interest in Telecom Argentina. Last stake in the holding company to a third November TI agreed to sell its Argentine party purchaser, subject to regulatory Regulatory unit to Mexican billionaire David approval. In this case, Fintech has agreed Martinez’s Fintech for US$960 million, to guarantee that TI will receive an overall Updates but the telco has been forced to extend amount of at least USD630.6 million. the deadline for completion of the sale (October 27, 2014) telegeography.com as it awaits regulatory approval from antitrust authorities in Argentina. Under Regulator SECOM has confirmed that it has the amended agreement, the sale of TI’s completed its pre-qualification analysis 51% controlling interest in Sofora – the of the four applications it received from holding company that controls Telecom companies hoping to participate in this Argentina – is conditional upon receiving month’s auction of 3G and 4G licenses. As regulatory approval from the Secretaria such, mobile operators Claro Argentina, de Comunicaciones (SeCom), which is Telecom Personal and Telefonica expected to take place ‘within the next Moviles (Movistar), alongside media two and a half years’. In the interim, a 17% conglomerate Arlink (Grupo Uno), will minority interest in Sofora will be sold to now go head-to-head for the spectrum Fintech by the end of this month. The total later this month. SECOM is offering aggregate consideration of the transaction national 4G LTE spectrum in the 700MHz remains unchanged at USD960 million, of and 1700MHz/2100MHz (AWS) frequency which US$113.7 million has already been bands, as well as surplus regional 3G received by TI, while US$215.7 million will spectrum in the 850MHz (SRMC) and be paid for the 17% stake in Sofora by the 1900MHz (PCS) ranges. Winning bidders end of October. A further US$550.6 million of the 4G spectrum will be required to will be paid as consideration for the sale provide coverage of all localities with of TI’s 51% controlling interest in Sofora, more than 500 inhabitants (around 98% with the remaining US$80 million to be of the population) within five years, with paid following closing of the transaction, the licenses valid for a period of 15 years. pursuant to additional agreements related The 3G licenses have been divided up

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SAMENA TRENDS _ OCT_2014 into three geographic areas: North, South and Buenos of BRL1.928 billion attached to ‘Lot 3’, while Algar paid Aires metropolitan area. The government is expected BRL29.57 million (0.02%) for spectrum covering 87 to hold the auction on October 31, with spectrum municipalities in the states of Goias, Minas Gerais, Mato permits awarded in mid-November. (October 8, 2014) Grosso do Sul and Sao Paulo (‘Lot 5’). However, ‘Lot 6’, telegeography.com covering the municipalities of Londrina and Tamarana in the state of Parana, where Sercomtel operates, did not attract any bidders. Neither did ‘Lot 4’, which offered AUSPI national coverage with the exception of the areas covered by Lot 5 and Lot 6. The use of the 700MHz spectrum CDMA lobby group the Association band, currently in use by TV broadcasters, is expected of Unified Service Providers of India to allow the country’s mobile operators to extend their (AUSPI) has criticized the regulator’s LTE networks into rural areas; currently 4G in Brazil is recommendation of creating an extended provided using the 2500MHz band, which was auctioned GSM band (e-GSM) by utilizing 800MHz in June 2012. Although the government originally hoped frequencies previously reserved for CDMA that the analogue switch-off would take place in 2016, services. AUSPI – which represents the nation’s CDMA there will now be a staggered transition between 2015 and dual-technology providers – has warned that any bid and 2018; any analogue transmitters continuing to to harmonize the 800MHz range with the e-GSM band operate will serve rural areas. (October 1, 2014) telegeography.com would ‘grossly undermine’ their businesses, in which they have invested billions of rupees to deploy CDMA Bulgaria networks, which are reliant on 800MHz frequencies. The Department of Telecommunications (DoT) has not yet The auction of 700MHz Long Term made decision on the Telecom Regulatory Authority of Evolution (LTE)-suitable spectrum in India’s (TRAI’s) proposals, which threaten to marginalize Brazil concluded watchdog ANATEL CDMA providers in favor of their GSM-based rivals. The has announced, generating a total TRAI has also suggested that the valuation of 800MHz of BRL5.85 billion (US$2.39 billion) – well below the spectrum should take into consideration its potential regulator’s BRL7.71 billion target. The country’s three use for 4G Long Term Evolution (LTE) services, although largest mobile operators by subscribers – Vivo, TIM AUSPI and its members are calling for the government Brasil and Claro – all picked up nationwide spectrum to lower the prospective reserve price for 800MHz blocks, generally paying slightly over the asking price, spectrum. (October 17, 2014) The Economic Times while one regional player – Algar Telecom – boosted its spectrum holdings in its existing service area. Oi, Brazil’s Belgium fourth-largest mobile operator did not participate in the auction. America Movil (AM)-backed Claro paid The European Commission (EC) has BRL1.947 billion for ‘Lot 1’, representing a 1% increase reportedly referred Belgium to the on the reserve price, while TIM Brasil bid the same for European Court of Justice, claiming ‘Lot 2’ (0.99%). Vivo, meanwhile, met the reserve price that the country had ignored a formal of BRL1.928 billion attached to ‘Lot 3’, while Algar paid request to ensure the independence of its telecoms BRL29.57 million (0.02%) for spectrum covering 87 regulator, the Belgian Institute for Postal Services and municipalities in the states of Goias, Minas Gerais, Mato Telecommunications (BIPT). With the EC having called on Grosso do Sul and Sao Paulo (‘Lot 5’). However, ‘Lot 6’, the Belgian government to give up powers to suspend covering the municipalities of Londrina and Tamarana in decisions taken by the BIPT last April, at that date the the state of Parana, where Sercomtel operates, did not European Union (EU) executive had argued that such a attract any bidders. Neither did ‘Lot 4’, which offered situation could affect the watchdog’s ability to ensure fair national coverage with the exception of the areas covered competition. Commenting on the situation, the EC had by Lot 5 and Lot 6. The use of the 700MHz spectrum noted: ‘The Commission considers that these elements band, currently in use by TV broadcasters, is expected limit the independence of the BIPT when implementing to allow the country’s mobile operators to extend their EU telecom rules and that this can have negative LTE networks into rural areas; currently 4G in Brazil is consequences for competition in the sector.’ Having provided using the 2500MHz band, which was auctioned referred the case to the apex court, this could now mean in June 2012. Although the government originally hoped Belgium would be forced to update legislation so that that the analogue switch-off would take place in 2016, the state can no longer interfere in the BIPT’s decisions there will now be a staggered transition between 2015 or require that the regulator submit its multi-annual and 2018; any analogue transmitters continuing to strategy for approval. (October 17, 2014) telegeography.com operate will serve rural areas. (October 1, 2014) telegeography.com Brazil The auction of 700MHz Long Term Bosnia Evolution (LTE)-suitable spectrum in According to the latest data produced Brazil concluded watchdog ANATEL has by Bosnian telecoms watchdog the announced, generating a total of BRL5.85 Communications Regulatory Agency billion (US$2.39 billion) – well below the (CRA) there were 3.385 million mobile regulator’s BRL7.71 billion target. The country’s three subscribers in the country at the end of June 2014, largest mobile operators by subscribers – Vivo, TIM up less than 1% from the 3.356 million recorded three Brasil and Claro – all picked up nationwide spectrum months earlier. BH Telecom accounted for the largest blocks, generally paying slightly over the asking price, share of the total – 44.70%, down from 44.87% at end- while one regional player – Algar Telecom – boosted its March 2014 – while Telekom Srpske and HT Mostar spectrum holdings in its existing service area. Oi, Brazil’s claimed 42.09% (1Q14: 42.32%) and 13.03% (12.55%), fourth-largest mobile operator did not participate in respectively. Mobile virtual network operator (MVNO) the auction. America Movil (AM)-backed Claro paid IZI Mobile had just over 5,400 customers at the end BRL1.947 billion for ‘Lot 1’, representing a 1% increase of the reporting period, giving it 0.16% of the market, on the reserve price, while TIM Brasil bid the same for down against the roughly 8,400 (or 0.25%) it had three ‘Lot 2’ (0.99%). Vivo, meanwhile, met the reserve price months earlier. Rounding out the market, fellow MVNO

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SAMENA TRENDS _ OCT_2014

BlicNet, which launched in December 2013, saw its managing and monitoring the use of radioelectric subscriber base increase to just over 1,000, or 0.03% of spectrum. The agency has constructed four fixed the market, as at end-June 2014. Meanwhile, according stations in Perez Zeledon, San Rafael de Heredia, to the CRA’s data at the end of June 2014 there were Oreamuno Cartago and Liberia Guancaste, to monitor a total of 528,893 fixed line broadband accesses, up spectrum usage, and also uses two mobile units to take 2.2% quarter-on-quarter. Both xDSL- and cable-based measurements anywhere in the country. The four fixed connections were up against the previous quarter at stations and the two mobile units are linked to each 298,006 and 164,887, respectively, while FTTx accesses other, and feedback information to the monitoring stood at 325 at end-June 2014, compared to 313 three centre in SUTEL’s headquarters. Engineer and Sutel months earlier. Fixed-wireless, leased line and ‘other’ board member Gilbert Camacho Mora was quoted in a technologies all see declines, however, falling to 63,954 press release from the regulator as saying: ‘This is the (64,856), 1,310 (1,316) and 411 (440), respectively. first time that the country has had a Radio Spectrum (October 15, 2014) telegeography.com Monitoring System, which will measure the coverage and quality of different telecommunications services in Bulgaria order to verify that licensees…comply with regulations, and [will] quickly and easily identify any illegal use of The telecoms regulator Communications spectrum or interference, which will improve the quality Regulation Commission (CRC) has perceived by users.’ (October 6, 2014) telegeography.com opened a public consultation with regards to the potential use of available spectrum in the 1800MHz band, with Decision No.645, Cote d’Ivoire dated OCTember 23, 2014. According to a CRC press The Ivorian telecoms watchdog L’Autorite release, the decision was prompted by ‘growing interest’ de Regulation des Telecommunications/ in the available resources in the 1710MHz-1785MHz and TIC de Cote d’Ivoire (ARTCI) has 1805MHz-1880MHz frequency bands. The regulator has confirmed that it is set to revoke the invited all interested parties to submit their suggestions mobile license held by mobile market and comments on the topic by December 29, 2014. minnow Aircom (Cafe Mobile). Reuters quotes ARTCI (October 8, 2014) telegeography.com director general Diemeleou Bile as saying: ‘There are seven licenses. We aim to cut the number of mobile The Supreme Administrative Court of Bulgaria has backed operators and keep only those who are performing a decision by the Commission for Consumer Protection very well. Their case has been referred to the regulatory (CCP), which accused wireless operator MobilTel (M-Tel) council for their license to be rescinded.’ Bile also of ‘unfair commercial practices’. According to a CCP, the noted that a number of licenses are up for renewal in cellco wrongly claimed that leased handsets coded to 2015, which could spell trouble for underperforming work only with M-Tel’s SIM cards could be unlocked for operators such as Comium and LAP Green-backed free after the end of the fixed-term contract. However, GreenN, both of which occupy a less than 10% share of the CCP found out that subscribers are required to pay a the market. In May this year communications minister fee in order to obtain the unlock code; ‘this information Bruno Kone publicly urged Comium, GreenN and Cafe is provided solely on the company website, and users Mobile to merge their operations in an effort to stay without access to the internet may take uninformed competitive, and create a stronger fourth player capable decision’, the CCP said. Following the latest amendments of challenging Orange, MTN and Moov. Vietnam’s Viettel to the consumer protection law, users now have the right Group had previously been linked with a takeover for to terminate their contract with a given provider and cash-strapped Comium, although no deal materialized, claim compensation – if the operator has been found in and the company turned its attention to other African breach of the legislation. (October 6, 2014) CCP markets. Cafe Mobile’s future looked bleak in August, when the ARTCI omitted the company from its most recent quarterly statistical overview, which covered the Colombia three month period ended March 31, 2014. The cellco, Ministry of Information Technology and which launched in April 2012 – almost twelve years Communication (MinTIC) has teamed after receiving its original operating concession – had up with the National Spectrum Agency amassed just 17,865 subscribers by December 31, 2013, (ANE) to prepare a draft resolution equivalent to a meager 0.1% market share, and its lack regarding the proposed distribution of spectrum in of progress prompted widespread speculation over the the 900MHz and 1900MHz bands. The planned tender viability of its ongoing operation. will comprise 22MHz of spectrum in the 900MHz band (October 22, 2014) telegeography.com (894MHz-905MHz paired with 939MHz-950MHz) and a 5MHz block in the 1900MHz (1850MHz-1990MHz) band. Cyprus Mobile operators which manage to secure spectrum in Telecoms watchdog, the Office of the tender will be obliged to offer preferred national the Commissioner of Electronic roaming rates and share infrastructure, among other Communications & Postal Regulation conditions. In addition, as part of the license conditions, (OCECPR), has launched a public 1900MHz spectrum winners must extend services to 40 consultation regarding the assessment inaccessible locations, while 900MHz licensees must of bundled telecoms services offered by the country’s offer connectivity in 50 unserved areas. MinTIC invites telcos. The regulator has pointed out that the proposed interested parties to submit their comments on the approach is designed to prevent the possibility of resolution by 31 October. (October 22, 2014) telegeography.com bypassing ex ante regulation or distorting competition by letting telcos offer bundled services without greater scrutiny. The OCECPR has invited all interested parties to Costa Rica submit their comments by October 24, 2014, while the Costa Rican telecoms regulator SUTEL regulator’s final decision on the subject will be published has installed a national system for in November 2014. (October 15, 2014) telegeography.com

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ECTA a review of its recommendations. Potentially this could ECTA (the European Competitive lead to the fixed voice markets being ‘put back’ on the Telecommunications Association) has regulated list, whilst ECTA also urges that the other issues backed the opinion published earlier this it has highlighted are tackled in the review process, week by BEREC (the Body of European including the question over maintaining physical LLU. Regulators of Electronic Communications) which (October 16, 2014) telegeography.com asserted that it is premature to remove the retail fixed telephony access and wholesale fixed call origination El Salvador markets (Markets ‘1’ and ‘2’) from the list of regulated Telecoms regulator SIGET has telecommunications markets as recommended by a announced that it has lowered the European Commission (EC) decision earlier this month. maximum rate that fixed and mobile Contrary to the EC recommendation, BEREC considers operators can charge for calls. On that the two fixed line markets should stay on the November 1, 2014 the price cap for regulated list, given that regulators’ decisions in a mobile calls will fall from US$0.17153 to US$0.14902 significant number of Member States indicate that these per minute (including VAT) for on-net calls and will markets are not competitive and therefore justify the drop from US$0.20576 to US$0.18105 per minute for continuation of regulation. ECTA points to the fact that, off-net calls, while wireless calls to landlines may be out of 28 European regulators, only three to date have charged at no more than US$0.12525 (on-net, down deregulated the retail access fixed telephony market from US$0.14356) and US$0.12445 per minute (off-net, (Finland, Netherlands and Romania, whilst Germany down from US$0.14299). Meanwhile, the maximum cost has deregulated a specific high-end segment of the of landline calls will fall from US$0.04360 to US$0.04253 market); and similarly, only three regulators (Estonia, (on-net) and from US$0.04295 to US$0.04167 (off-net) Finland and Romania) have deregulated the wholesale per minute at the start of next month. Calls from fixed fixed call origination market. Another regulator, the line to cellular networks may be charged at no more Belgian Institute for Post and Telecommunications than US40.14296 (on-net, down from US$0.16736) and (BIPT), has indicated it will act in accordance with the US$0.15654 (off-net, down from US$0.17856) per minute. EC recommendation in the retail and wholesale fixed SIGET has also reduced the maximum monthly fixed line markets, according to an announcement last month telephony subscription charge from US$6.75 to US$6.08 reported by CommsUpdate. Erszebet Fitori, director of per residential line and from US$12.29 to US$10.23 per ECTA, stated the position of the organization (which business line per month (including VAT). Meanwhile, represents more than 100 alternative telcos): ‘Premature on 1 November 2014 mobile interconnection rates will deregulation represents a step back in the liberalization fall slightly from US$0.01468 to US40.01467 per minute process. Regulation is there to ensure that those markets and fixed interconnection fees are scheduled to drop to which are structurally uncompetitive receive the right US$0.04657 from US$0.05938 per month. push towards competition. Forcing the removal of (October 6, 2014) telegeography.com regulation prematurely will drive competitors out of the market, raise prices for users, stifle innovation and take away hard won benefits from European consumers.’ An European Union opposite view to the BEREC/ECTA consensus on fixed The European Commission, in line deregulation is – unsurprisingly perhaps – held by agreement with member states, has incumbent telecoms operators, who have argued the decided that two telecom markets move towards deregulation will help boost investment should no longer be subject to in broadband infrastructure. Backing the incumbents, regulation in Europe, and that two more lobby group the European Telecommunications Network should be redefined to reflect market and technology Operators’ Association (ETNO) was cited last month developments. The rules take effect immediately. The as saying: ‘Competition from alternative platforms liberated markets are the retail market for access to and over-the-top [OTT] service competition are today fixed telephony; and the wholesale market for fixed well established, and this [EC] recommendation is call origination. The Commission will also redefine two the right instrument to adapt regulation to the new broadband markets, in order to limit regulatory burdens market reality.’ Another crucial aspect of the recent EC to what is strictly necessary for competitive broadband recommendation was a modified wholesale framework access and investment. The EC is increasing its focus on recognizing that ‘virtual access products’ – which the distinct needs of business users, to make sure that include virtual unbundled local access (VULA) – can competitive connectivity can unleash growth across the be considered substitutes to physical unbundling economy. There has been a decrease in volume of fixed when they fulfill certain characteristics. ECTA expressed calls as customers have turned to alternative solutions, concern at this development in the wholesale field, as such as voice-over-IP (VoIP) and mobile calls, but also it said ‘physical access is key to ensure that alternative to alternative providers, like over-the-top (OTT) players, operators can effectively compete and innovate at the a trend that has underpinned the decision to liberate retail level, by building pioneering and affordable offers, the fixed telecoms markets. Also those customers who which end users can benefit from.’ ECTA added that it still use fixed telephony are now able to purchase fixed was disappointed that BEREC’s published opinion ‘did access from a number of different platforms, such as not take a more pro-competitive stance and has not traditional telephone network, fiber or cable networks, tackled other issues of great importance such as the and also from alternative operators offering broadband need to ring-fence physical access.’ On additional related and voice services over unbundled local loops, so issues, ECTA stated: ‘The over-emphasis on geographic competition has been increased. The decision also segmentation of the broadband markets should have flowed from a public consultation on the revision of also been tackled [by BEREC] and a bolder position the recommendation that took place between October on the need to segment the market designed to serve 16 back in 2012 and January 8, 2013 (see IP/12/1105). business customers would have also been desirable.’ On The Commission also commissioned an external report, the other hand, BEREC’s published opinion did include published in October 2013. The BEREC Opinion on the a call for EC guidance on how to tackle joint dominance recommendation on relevant markets was adopted in and oligopolistic market structures. ECTA underlines that June 2014. However, some markets remain regulated the EC must now take the BEREC opinion into account in because some telecoms markets competition is unlikely

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SAMENA TRENDS _ OCT_2014 to occur in the foreseeable future. This recommendation projects in Sodankyla and Ranua are a good example from the EC redefines the boundaries of the broadband of such broadband building where a municipality and markets, which consist of wholesale products needed local players took things forward themselves because for the provision of retail broadband services (new nationwide operators were not interested in providing markets 3a, 3b and 4 replacing markets 4, 5 and 6 of the high-speed connections their area.’ In terms of specifics 2007 Recommendation). The new rules recognize that of the projects, Tahtikuitu Oy will build an advanced “virtual access products” can be considered substitutes broadband network covering the entire area of the to physical unbundling when they fulfill certain municipality of Sodankyla, with the estimated length characteristics. (October 14, 2014) ftseglobalmarkets.com of the network being 1,200km, covering some 2,220 premises. Construction is already underway, and the The European Commission Vice President, Neelie Kroes, project is expected to be completed by end-2016. has delivered a farewell speech to the members of the Meanwhile, in the municipality of Ranua a fiber-optic European Telecommunications Network Operators’ network will be built by Ranuan Kuituverkot Oy, with a Association (ETNO); in which she urged telcos to 900km link providing services to around 1,200 premises; embrace over-the-top (OTT) players, and stated her work on this project is forecast for completion by end- dream for the European telecommunications sector 2017. Finland’s ‘Broadband 2015’ initiative is supporting after the current Commission’s tenure ends at the telcos in the roll out of new infrastructure in sparsely- end of October. Kroes began her speech with an populated regions of the country. Where funding is acknowledgement of the turbulent relationship that she available operators are required to cover at least 34% has enjoyed with the telecoms sector. “You will know of the costs, with the remainder funded by the state, this is among our last moments together,” she said. “In municipalities and the European Union’s (EU’s) Rural fact, you’re probably all looking forward to the very Development Fund. According to the FICORA, with the near future, when the Juncker Commission takes office, Finnish government having set aside EUR64 million for when you won’t have to put up with me anymore.” It’s the initiative for the period 2009-15, it has allocated 70% true, the telecoms operators and Kroes haven’t always of that figure so far.(October 17, 2014) telegeography.com seen eye to eye. Kroes has occasionally pointed at an uncooperative telecoms market as a key factor holding back the progression of the Commission’s Digital Single France Market proposal. Meanwhile, action regulating roaming The competition body has given the revenues saw a reduction of roaming data fees by 55% go-ahead to Altice’s €13.5 billion in 2014 compared to 2013, and between 20% and 30% takeover of SFR, subject to a number of reductions in call and messaging fees. Kroes also went on conditions, including the requirement for to urge operators to change their views of OTT players Numericable to open up its cable network to competing in the industry, and highlighted digital content providers operators. Altice agreed to acquire mobile operator SFR as a key motivator for consumer use of broadband from Vivendi in April with a view to merging it with its services. “The current situation of European telcos is cable unit Numericable. Vivendi selected Altice’s offer not the ‘fault’ of those OTT’s. Today, all EU homes have since it promised a smoother regulatory approvals broadband coverage; 76% have a connection; almost process than a rival bid from Bouygues Telecom, half can access it on their mobile,” she said. “They are which would have brought together two of France’s demanding greater and greater bandwidth, faster and four mobile network operators. The tie-up between faster speeds, and are prepared to pay for it. But how a mobile operator and a cableco is less likely to worry many of them would do that if there were no over the competition bodies. However, France’s Authorité de top services? If there were no Facebook, no YouTube, la Concurrence has attached certain conditions to its no Netflix, no Spotify? OTT players are the ones driving approval of the deal, noting that the merger will give digital demand, demand for your services! That is Numericable a “prominent position in the telecoms something you can work with, not against.” Rounding market.” It identified a number of areas in which off her somewhat sentimental speech to ETNO, Kroes competition could be affected, including the consumer reminded the operators’ that the Digital Single Market high-speed broadband market, where Numericable has proposal will be maintained and advanced during the an advantage thanks to its cable network and SFR is tenure of Jean-Claude Juncker, who begins in office as in the process of rolling out fiber. As such, it requires the European Commission’s President on 1st November. Numericable to allow alternative operators to have “This is a project that will continue under the next access to its cable infrastructure. In order to offset a mandate; as Jean-Claude Juncker has made clear,” She reduction in competition in the business services market, said. “A project that can ensure our digital future, where Numericable must offload its Completel DSL network to a strong telecoms sector supports every European. That another player and offer wholesale access to its fiber is was I long for, and that is what all of you should long infrastructure. The cableco must also divest its Outremer for too.” (October 2, 2014) telecoms.com Telecom business, which offers services in Reunion and Mayotte in order to address competition concerns in those territories. And it is required to ensure it does Finland not collaborate with Vivendi, which will take a stake in Numericable as part of the takeover deal, in the pay TV The Finnish Communications Regulatory market. The approval of the Authorité de la Concurrence Authority (FICORA) has announced that paves the way for Altice to close the deal in the coming EUR6 million (US$7.7 million) in state months. (October 28, 2014) totaltele.com aid has been granted for fiber-optic broadband projects in Sodankyla and Telecoms regulator ARCEP has confirmed that it has Ranua. Of the total, EUR3.7 million has been set aside opened ‘pre-trial proceedings’ against the trio of for the Sodankyla project, with EUR2.3 million to be licensees owned by Curacao-based mobile group United spent in Ranua; both projects are also being funded the Telecommunication Services (UTS), namely: Guyane by the respective municipalities where work is taking Telephone Mobile (GTM), Guadeloupe Telephone Mobile place. With the state aid having been granted as part (GTM) and Martinique Telephone Mobile (MTM). All of the Broadband 2015 project, Paivi Peltola-Ojala, head three would-be cellcos were licensed in June 2008, but of Broadband and Media Group atFICORA, noted: ‘The have failed to show any signs of rolling out 2G and 3G

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SAMENA TRENDS _ OCT_2014 networks, as stipulated by their respective concessions. currently in use by broadcasters though. As such, federal ARCEP has extended the initial rollout schedules tied to and state governments must reach agreement on its the licenses – all companies were obliged to cover 90% allocation before the auction can take place. The state of the country by 2013 – and now the trio must offer is aiming for the second quarter of 2015 and intends full coverage by 15 January 2016, with interim deadlines to follow the same auction format as it used in 2010. of January 15, 2015 and April 15, 2015. If the operators Interested parties have until 26 November to submit fail to meet the new targets they are likely to see their comments on the draft document. licenses revoked, potentially paving the way for the (October 24, 2014) totaltele.com redistribution of the mobile concessions. (October 20, 2014) telegeography.com The European Commission (EC) has called on the Federal Network Agency (FNA, also known as Bundesnetzagentur Telecoms regulator ARCEP has published the results of or BNetzA), Germany’s telecoms regulator, to amend a public consultation on a proposed fiber-to-the-home or withdraw its current mobile termination rate (MTR) (FTTH) network access pricing model, stating that most proposals. According to a press release from the EC, with stakeholders approve of the general principles of the the BNetzA having sought to introduce MTRs for mobile suggested model, while expressing some reservations virtual network operator (MVNO) sipgate Wireless, which about certain aspects of its implementation. ARCEP are up to 80% higher than in most other European Union submitted the draft pricing model for accessing optical (EU) Member States, EC Vice President Neelie Kroes was local loops outside ‘very high density areas’ for public cited as saying: ‘I am very concerned by the fact that consultation back in November 2013; by employing a Germany continues to ignore the reasonable demands benchmark methodology, the model aims to serve as a of the European Commission – setting it apart from reference tool during pricing negotiations between the all other Member States. Its approach towards mobile different wholesale market undertakings. The regulator termination rates flies in the face of the internal market, plans to continue working with all stakeholders on and is detrimental to consumers.’ With an investigation expanding the operational scope of the pricing model, in into the matter having gotten underway back in May order to ‘take into account the sections located upstream 2014, the EC claims the German authorities have ‘failed from the concentration point, and downstream from the to provide justified reasons during the investigation … optical branching unit’. A refined method will be subject as to why it should be granted special treatment and be to consultation before the end of 2014, and if necessary, exempt from following the method calculating MTRs set a new updated pricing model will be published, ARCEP out in the EU telecoms rules’. Further, it is understood added. (October 8, 2014) telegeography.com that the Body of European Telecoms Regulators (BEREC) has expressed its full support for the Commission’s President Francois Hollande has reportedly announced position. As such, the FNA is now required to either that telecoms regulator the ARCEP will initiate the amend or withdraw its MTR proposal, and should it fail process of auctioning frequencies in the 700MHz band to comply with the EC’s recommendation legal action for telecoms services in 2015, Advanced Television could be initiated. (October 21, 2014) telegeography.com reports. Addressing previously expressed concerns of Digital Terrestrial Television (DTT) broadcasters that the allocation would interfere with the plans to migrate Ghana the DTT platform to MPEG-4 AVC by 2015 and DVB-T2 Minister of Communication, Dr. Edward by 2023, President Hollande said that France needed Omane Boamah, has hinted at the an audiovisual sector that could broadcast broadly, government’s intention of appointing effectively and securely, adding: ‘This is the objective a company that would take charge of of transferring the 700MHz band to the telecom sector. the country’s interconnect clearing house by the end of The state will ensure that the available resources are this year. The Communication Minister believes that guaranteed for broadcasting’. As such, ARCEP is expected the operation of an interconnect clearing house in the to launch a tender for the 700MHz spectrum band in country will help in the monitoring of calls, both local November 2015, with projections that the auction could and international, on one common platform to avoid generate up to EUR3 billion (USD3.8 billion) for the the incidence of SIM boxing. The Communication Minister also highlighted the availability the Mobile treasury. (October 3, 2014) telegeography.com Network License and urge Ghanaian entrepreneurs to take advantage of the opportunity to acquire these Germany licenses. “Again, cabinet has approved what we call the Germany plans to auction off spectrum Mobile Virtual Network License and this is a system earmarked for mobile broadband that is empowering Ghanaians so that we can also take services in the second quarter of next advantage of the telecommunications industry which year and to that end has issued a draft is largely driven by non- Ghanaian interests. We think document regarding the allocation process. Germany’s that it is important that we allow foreign investment federal network agency the Bundesnetzagentur earlier into our country but there has to be an equitable ratio this week confirmed that it will award frequencies in of Ghanaian interest and by this we are encouraging the 700-MHz, 900-MHz, 1500-MHz and 1800-MHz entrepreneurs to take advantage of the Mobile Virtual bands. “The rapidly growing demand for broadband Network Operation License that cabinet has approved,” connections requires a timely provision of spectrum he said. (October 17, 2014) biztechafrica.com for the expansion of mobile broadband in Germany,” Bundesnetzagentur president Jochen Homann, said in The National Communications Authority (NCA) has a statement. The regulator added that it is especially revealed that the mobile voice subscriber base has keen to promote the development of mobile broadband increased from 29.37 million at the end of July to 29.53 services in rural areas. It also noted that the recently- million as at the end of August 2014. According to completed merger of Telefonica’s O2 Germany with reports, MTN had an increase of 110,042 from July to E-Plus has “changed the structure of the market” and that end the month of August with 13.54 million. Whereas allocating new spectrum in an open and transparent way Airtel’s subscriber base increased by 97,016 to end will enhance competition. The 700-MHz spectrum, which August with a total figure of 3.76 million, according to the regulator refers to as a second digital dividend, is the NCA. Glo had an increase of 35,711 in its subscriber

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SAMENA TRENDS _ OCT_2014 base to end the month under review with 1.4 million. mobile connections is expected to reach 7.4 billion in Expresso had a rise in its subscriber base from July’s 2014 rising to 10 billion by 2020. The GSMA guidelines 122,356 to end August at 123,825. On the other hand, will help IoT device and application developers expand Vodafone recorded a figure of 6.69 million at the end the number of devices connecting to mobile networks, of August, a drop of 60,721 in its subscriber base. Tigo whilst preventing service outages and ensuring optimal also recorded a decrease and ended the month under performance that will ultimately enable the market review with 4.02 million. The report also revealed that to scale across a diverse range of sectors including the number of mobile data subscribers fell by 156,026 automotive, transportation, utilities and health. GSMA from 14.77 million in July to 14.62 million in August. is also undertaking a project to develop a common set MTN’s subscriber base for August increased by 53,325 of acceptance tests for IoT devices and applications to to end the month with a figure of 7.76 million. Tigo ensure best practices are being followed. The project will recorded an increase of 56,248 in its subscriber base establish a single, standard set of connection efficiency for the month under review to end August 2014 with tests for IoT devices and applications, enabling players a figure of 2.09 million. Airtel’s mobile data subscriber across the industry to develop and deploy IoT services base ended the month of August at 2.07 million, up by with confidence.(October 13, 2014) telecomlead.com 36,897 subscribers. Glo recorded a subscriber base of 584,222, indicating an 86,227 increase in subscribers. Vodafone Ghana ended August with a figure of 2.07 Honduras million, down by 387,600. Also recording a decrease was Telecoms watchdog CONATEL has Expresso, which lost 1,123 subscribers, ending August opened a public consultation on a draft resolution for the establishment with a subscriber base of 36,135. (October 8, 2014) itnewsafrica.com of a national Internet Exchange Point (IXP-HN). According to a press release, the document Greece provides for the establishment of a new executive body – The National Telecommunications the Executive Committee of the Internet Exchange Point & Post Commission (EETT) released Internet Honduras (CEIXP-HN) – which will be tasked results from its sale of frequencies in with the operation of the national IXP. CEIXP-HN’s main the 800MHz (digital dividend) and functions will include: establishing the provisions for 2600MHz bands for 4G mobile services. Cosmote, rights and responsibilities of members and observers; Vodafone and Wind Hellas acquired two paired 5MHz arranging the provisions, policies and procedures to carry blocks (2×10MHz) in the 800MHz band each, paying out the implementation of the IXP; securing preliminarily EUR103 million (US$130.5 million), EUR103.1 million approval of the technical specifications regarding the and EUR103.01 million respectively. Half of the 800MHz implementation of the IXP; stipulating policies and spectrum was distributed in a preliminary stage at a standards of operation, post-implementation; and fixed price (EUR51.5 million per 2×5MHz), with the ensuring compliance with the existing legal framework. remainder issued via a competitive second-round The regulator has invited all interested parties to submit auction. Additionally, the three cellcos shared 14 paired their comments from October 6 to October 10, 2014. blocks of 2×5MHz in the 2600MHz band, each paying (October 6, 2014) telegeography.com EUR4.70 million per block (Cosmote acquiring six blocks [2×30MHz], with Vodafone and Wind claiming four Hungary blocks [2×20MHz] apiece). Furthermore, Vodafone and The Hungarian telecom authority Cosmote each acquired two unpaired 10MHz blocks in NMHH has sold 4G spectrum licenses the 2600MHz band (priced at EUR1.3 million per block). to 4 operators in the country, raising The frequency sales raised a total of EUR381.1 million HUF130.6 billion (US$530.25 million). for Greece, virtually equal to the minimum bidding Licenses were issued for airwaves in the 800MHz and value, due to there being no other bidders competing 2.6GHz bands, along with unallocated 900MHz and with the three incumbent cellcos. Cosmote paid a total 1.8GHz spectrum. The winning bidders were Magyar of EUR134.79 million, Vodafone spent EUR124.50 million Telkom (a subsidiary of Deutsche Telekom), newcomer and Wind bid EUR121.83 million for its frequencies Digi Telecommunications, and Vodafone and Telenor’s which will support its plan to enter the 4G LTE segment Hungarian units. Magyar Telkom was the biggest against its two larger rivals, both of whom have well- spender, lashing out HUF58.65 billion on its licenses. established LTE operations. The licenses have a term of It is tailed by Telenor (HUF31.73 billion) and Vodafone 15 years, effective from February 28, 2015. (October 14, 2014) (HUF30.23 billion), while Digi Telecommunications has eett.gr bid a significantly lower HUF10 billion. NMHH has stated that it intends to “quicken the setting up of broadband GSMA networks, to develop the Hungarian digital economy Telecom industry association GSMA and to boost economic competition”. The authority also has issued guidelines for the Internet noted that Digi Telecommunications, a privately-owned of Things (IoT) market that outline Romanian company, was rewarded as a newcomer, how devices and applications should since evidence from other markets indicates that a new communicate via mobile networks. Telecom operators entrant “mobilizes and revitalizes the market, enhances AT&T, China Mobile, China Telecom, China Unicom, price competition and engenders new services”. Digi’s Deutsche Telekom, Etisalat, KT Corp, Orange, NTT network build out will take around 18 months, while DOCOMO, Tata Teleservices, Telefonica, Telenor the existing operators will be able to deploy services Connexion and VimpelCom as well as ecosystem partners using their new spectrum in the next few days. NMHH including Sierra Wireless and Jasper are backing the noted that 800MHz spectrum’s “favorable propagation GSMA guideline. The guidelines include a number of best characteristics” could enable operators to expand practice areas such as data aggregation within devices, broadband coverage to regions where it has previously non-synchronous network access, application scalability fallen short, capitalizing on the market’s potential. and guidance on how to manage signaling traffic from According to NMHH, the 20-year validity of the licenses de-activated or out-of-subscription SIMs, said GSMA. “ensures the dynamic growth of the economy and GSMA Intelligence estimates that the total number of represents a guarantee for the sustainable development

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SAMENA TRENDS _ OCT_2014 of the mobile market while offering predictable terms is maturing slowly. According to the documents, DoT for fostering industry investments”. Market leader is also looking at auctioning spectrum in the 2500MHz Magyar Telkom and number two Telenor have both band that was surrendered by state-run telcos Bharat already launched 4G services, but neither offering has Sanchar Nigam Ltd and Mahanagar Telephone Nigam been widely adopted. Magyar Telkom had around 5.4 Ltd earlier this year in many of the 22 circles across the million subscribers at the end of Q2 2014, with Telenor country. The telecom regulator has already started the in second place with 3.2 million and Vodafone in third process of auctioning spectrum in the 800MHz, 900MHz with 2.6 million. (October 1, 2014) developingtelecoms.com and 1800MHz bands. Most of the 900MHz spectrum on offer is from expiring licenses of the older telcos that were allocated the airwaves in non-metro areas in 1995, India a year after they were allocated the airwaves in the metro India’s next sale of spectrum could areas. The 1800MHz spectrum going on sale is mostly be the biggest—in terms of both the that which was unsold in the previous auction. Around quantum of spectrum and the amount 184MHz of spectrum in the 900MHz band and 104MHz the government could raise from the in the 1800MHz band could be up for the auction; the sale India’s next sale of spectrum, or radio waves that former is likely to be the most sought after band due telcos need to offer their services, could be the biggest- to its greater efficiency and low deployment cost. An in terms of both the quantum of spectrum on offer and analyst said it was a good idea to include more spectrum the amount the government could raise from the sale. in the sale. “Considering that we are a spectrum-starved The department of telecommunications (DoT) wants to country, DoT must release as much spectrum in all add spectrum in the 2,100MHz, 2,300MHz and 2,500MHz bands as possible. Overall, it will help to decongest the frequency bands to the planned February auction of networks and improve customer service and help in the spectrum in the 800MHz, 900MHz and 1,800MHz bands. Digital India program of the government,” said Hemant It will soon send a note to the Telecom Regulatory Joshi, a partner at Deloitte Haskins and Sells Llp. The Authority of India (TRAI) to suggest a reserve price for Digital India program refers to the National Democratic the spectrum. DoT will also ask TRAI whether spectrum Alliance’s new and ambitious digital initiative that spans can be sold with a validity period of less than 20 years, e-governance and hardware manufacturing. according to internal DoT documents seen by Mint. That (October 14, 2014) en-maktoob.news.yahoo.com last may provide some relief to telcos, many of which have spectrum in the same band and same operating The government moved the Supreme Court, challenging area or circle but expiring years apart-thanks, in part to the legality of the 3G intra-circle roaming pacts that the ad hoc way in which radio waves used to be allocated allow carriers to offer services in circles where they don’t in the country. The sale could generate a maximum of possess 3G bandwidth. The development once again Rs.2 trillion for the government, said a telecom analyst casts shadow on the future of Bharti Airtel, Vodafone who asked not to be identified. He cautioned that this India and Idea’s 3G services in circles where they do was a number based on his assessment of the two not have 3G airwaves but are offering it using each successful spectrum auctions of the government and other’s’ network. Tata Teleservices, Aircel and Reliance that the actual number could be very different because Communications have also entered into a similar pact even the quantum of radio waves available for sale isn’t among themselves. In April, the telecom disputes known yet. The government first auctioned spectrum for tribunal, TDSAT, had overturned the DoT’s ban on the communications services in 2010, raising around Rs.1.06 3G intra-circle roaming (3G ICR) pacts, saying Bharti trillion. It sold telecom frequencies in the 2100MHz Airtel, Idea and Vodafone’s roaming arrangements for bands, needed for 3G (third generation) services, for 3G airwaves with each other in circles where one of them almost Rs.70,000 crore and 2,300MHz bands, needed didn’t possess the airwaves was legal. GSM industry for 4G (fourth generation) services, for around Rs.40,000 lobby group COAI has said the move to challenge the crore. Subsequently, DoT held two more auctions in TDSAT verdict will lead to a tumult in the industry. COAI November 2012 and March 2013. Both were considered secretary-general Rajan S Mathews said the move would failures; they resulted in the sale of a fourth of the inject further uncertainty and dampen the telecom available spectrum at the time and garnered a total of sector’s growth story. The issue has been a bone of around Rs.13,000 crore (Rs.9,407.64 crore for 1,800MHz contention between the two sides. The government in the first one and Rs.3,639.48 crore for 800MHz in the first banned the arrangement in 2011 on grounds that it second). The fourth auction, conducted in February this amounted to sharing of spectrum, which is not permitted year, was considered a success with the government even today. The telecom operators, on the other hand, successfully selling almost all the available spectrum in claimed that the telecom department had clearly the 900MHz and 1800MHz bands and collecting around communicated in queries raised on the 3G spectrum Rs.61,162.22 crore. According to the documents seen auction rules that 3G roaming pacts would be permitted. by Mint, currently there is no vacant 3G spectrum. DoT Citing the 2G intra-circle roaming arrangements allowed expects to get 5MHz of 3G spectrum in 17 circles from under the telecom permits, the TDSAT had said that the the defense forces, though a discussion on this is still provision for ICR was already embedded in the telecom ongoing. There is also another 5MHz of 3G spectrum licenses. The two judge bench headed by Justice Aftab available. This was withdrawn from STel Ltd, after the 2 Alam had come down heavily on the government for not February 2012 Supreme Court decision to cancel the allowing operators to enter into roaming pacts despite Chennai based telco’s licenses, along with 119 other clarifying their doubts on the issue earlier. The bench licenses allocated to eight other companies. In the had also quashed the Rs 1,200-crore penalty levied on 2300MHz band, known as broadband wireless access the operators for entering into roaming pacts. COAI (BWA) spectrum, DoT has just around one block of has said that operators were already complaining of 20MHz available for sale in February (this is because spectrum shortage and that is why suggestive guidelines the defense forces’ own demand for this spectrum for spectrum sharing have come up from the sector’s has increased). BWA spectrum is still being deployed regulator. DoT’s move will prove to be a spoilsport for by successful bidders from the 2010 auction As Mint telcos. “We should move forward and ensure that the 3G reported ON 7 October, many of the holders of this ICR provision be optimized to reap maximum benefits spectrum have asked for an extension of five years for for the people who would be provided more coverage, the deployment on this band as the eco-system itself

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SAMENA TRENDS _ OCT_2014 better quality data services and more options across the in between quadrennial Plenipotentiary Conferences. country,” Mathews added. Houlin Zhao of China was successful in his bid to become (October 10, 2014) economictimes.indiatimes.com the next Secretary-General of the Union, after eight years as Deputy-Secretary General and a further eight years in Indonesia the elected post of Director of ITU’s Telecommunication The Telecommunication Regulatory Standardization Bureau. He won with 152 votes, with 152 Body (BRTI) is calling on the government countries present and voting. Malcolm Johnson of the to allow the use of 4G Long Term United Kingdom was announced as ITU’s new Deputy Evolution (LTE) technology in ‘certain Secretary-General in the fourth round of voting, with business districts’ in the country, to 104 votes and 168 countries present and voting. In his enable mobile operators to make a return on their address to assembled delegates in the Plenary session investments more quickly. BRTI member Riant Nugroho on Friday afternoon, Mr. Johnson paid tribute to the said that his association has filed a white paper to the quality of candidates for what proved this conference’s Ministry of Communication and Information Technology most fiercely-contested post: “Having such a qualified (MCIT), arguing that the technology should initially and diverse field of candidates is testament to our be deployed in business districts to help companies commitment to the Union and bodes well for its future. make better use of e-commerce and related business I hope we can rely upon their continuing participation transactions, and allow cellcos to charge higher rates for in ITU and I look forward to working with them over the the service. The official says that one of the challenges next four years.” The elections for the posts of Director of faced by operators when it comes to 4G centres on fears ITU’s Radiocommunication Bureau, Telecommunication over them making an adequate return on investment: Standardization Bureau and Telecommunication ‘Even six years after the inception of the 3G network, Development Bureau began late in the working day most telecommunication operators providing the on the afternoon of 24 October. The three elections service have not had a return on investment yet,’ Riant were run concurrently. Current incumbent François said, noting that most domestic operators have been Rancy was confirmed in a second term as the Director forced to lower their data services tariffs. Backing this of ITU’s Radiocommunication Bureau. He contested assessment, XL Axiata chief executive Hasnul Suhaimi is the position unopposed, and received 166 votes with quoted as saying that his company makes a 10% loss on 166 countries present and voting. In his post-election each gigabyte of data provided to its customers. In a bid address to delegates, Rancy stressed ITU’s central role to drive the development of 4G – and mindful that the in coordinating the equitable global use of spectrum government looks likely to miss its target to launch LTE resources. “During these four years, remarkable results by the year-end – Riant says: ‘What’s in our white paper have been achieved by the ITU radiocommunication is that operators, in collaboration with vendors, may first sector in delivering and managing the frequency deploy LTE Frequency-Division Duplexing [LTE-FDD] in a spectrum worldwide, in adopting standards and best handful of business areas in Jakarta.’ However, Riant’s call practices and in disseminating information and know- has been questioned by some, not least by the chairman how to the entire ITU membership. Much remains to of the Indonesian Telematics Society (Mastel), Setyanto P be done however to ensure that the management of Santosa, who argues that the incumbents need to expand spectrum and orbit resources by the ITU continues to their 3G coverage before moving to 4G. ‘The 3G network feed the development of radiocommunications, and coverage currently stands at only 30%. To prepare for connectivity to all citizens of the world,” he said. Brahima 4G, operators have to migrate the 2G network to the Sanou, the incumbent Director of the Telecommunication 3G network,’ he argues. Adding to the headache, the Development Bureau, also contested his bid for a second country is still wrangling over what frequency spectrum term unopposed, and was re-elected with 166 votes, with to use for LTE. The matter needs urgent discussion from 166 countries present and voting. On announcement of all sides but despite the government having already the election results, Sanou told the conference: “The issued 4G licenses to a number of companies in the Member States have decided for continuity and as the 2.3GHz band, a consensus is growing that frequencies acknowledgment of the work of the BDT staff that I have in the 1800MHz and 1900MHz band would be more had the honor of directing for the past four years. My efficient for 4G.(October 15, 2014) The Jakarta Post re-election is a renewal of a commitment to deliver to members and with members, and I am committing to Italy this because I know that I can count on the very dynamic The government has unveiled plans team in the BDT.” For the local Korean media, the biggest to spend around EUR5 million (US$6.3 news of the conference was the successful candidature million) over the next three years to of Korea’s Chaesub Lee for the post of Director of ITU’s push the deployment of free Wi-Fi Telecommunication Standardization Bureau (TSB). Lee hotspots in thousands of public spaces obtained the necessary overall majority in the first and on public transport to help boost the country’s round, with 87 votes and 169 countries present and broadband internet usage. Sergio Boccadutri, a member voting. Mr. Lee told the conference “As the newly elected of the ruling Democratic Party, put forward the proposal, Director, I will enhance the values of ITU-T activities stating: ‘Free Wi-Fi would have a big cultural impact and and products, as well as efficiency and effectiveness in help the economy recover, starting from industries such collaborating within and outside ITU-T. ITU-T is at one as tourism.’ The proposals have the support of more of its most important moments for the continuous than 100 members of parliament. (October 27, 2014) reuters.com development of future ICT and telecommunications.” The conference also elected the twelve members of the Radio Regulations Board (RRB), the body which deals ITU with global radiocommunications matters which fall Member States of the International under the purview of ITU. Telecommunication Union have completed The winning candidates for each region were: the election process that confirms • Americas: Ricardo Luis Terán, Argentina; Joanne candidates in the organization’s five Wilson, United States. elected posts, as well as the 12 members • Western Europe: Lilian Jeanty, Netherlands; Alfredo of the Radio Regulations Board and the 48 Members of Magenta, Italy. ITU Council, the administrative body that governs ITU • Eastern Europe/Northern Asia: Ievgen Khairov,

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Ukraine; Victor Strelets, Russian Federation. telecommunications’ market. Three-yearly reviews of the • Africa: Mustapha Bessi, Morocco; Stanley K. Kibe, wholesale and retail sectors are meant to be carried out Kenya; Simon Koffi, Côte d’Ivoire. by national regulators in countries across the EU in order • East Asia & Australasia: Nasser bin Hammad, United to ensure competition is fair and regulations in place are Arab Emirates; Doan Quang Hoan, Viet Nam; up-to-date. However, Reuters reports that the EC says Yasuhiko Ito, Japan. that the last analysis in Luxembourg took place in 2007. • Of 60 candidate countries for the 48 seats on ITU The Commission is cited as saying: ‘Given the significant Council, the elected countries were: delays, it is imperative to urge swift completion of the • Americas: Argentina, Brazil, Canada, Costa Rica, analysis to determine whether these obligations are still Cuba, Mexico, Paraguay, USA, Venezuela. justified in view of how competition in the market has • Western Europe: France, Germany, Greece, Italy, developed since.’ Leased lines in Luxembourg are due Lithuania, Spain, Switzerland, Turkey. to be reviewed in November 2014 but dates for analysis • Eastern Europe & Northern Asia: Azerbaijan, of fixed access and market competition are yet to be Bulgaria, Poland, Romania, Russian Federation. established. • Africa: Algeria, Burkina Faso, Egypt, Ghana, Kenya, (October 17, 2014) telegeography.com Mali, Morocco, Nigeria, Rwanda, Senegal, Tanzania, Tunisia, Uganda. • East Asia & Australasia: Australia, Bangladesh, Malawi China, India, Indonesia, Japan, Korea (Republic), The Malawi Communications Kuwait, Pakistan, Philippines, Saudi Arabia, Thailand, Regulatory Authority (MACRA) is United Arab Emirates. planning to establish a universal access • PP-14 is hosted by Korea’s Ministry of Science, ICT fund (UAF) to ensure that rural areas and Future Planning (MSIP), and is taking place at of the country are served by mobile Busan’s BEXCO exhibition and conference centre services. ‘The fund is expected to facilitate the provision of services to those areas where operators are currently from October 20 - November 7. (October 27, 2014) itu.int facing challenges to provide services,’ Clara Mulonya The ITU has kicked off three weeks of wrangling over the regulator’s communications officer said. She added the future of the Internet – the 2014 Plenipotentiary that a specialized committee will be responsible for – with a ministerial statement that’s likely to spark the evaluation of areas that are currently not served by concerns about the direction of the coming summit. The mobile telephony services and to determine how much Busan Declaration, issued at the close of the Busan ICT investment will be required to supply such communities. ministerial meeting, is filled with high-minded language Under the scheme, subsidies will then be offered to about inclusion and the spread of the Internet, but there telecoms operators as an incentive to roll out services to are angles that will worry those who believe the ITU is unserved and rural areas. preparing a takeover of the Internet. The declaration (October 10, 2014) Biztech Africa isn’t ITU policy, but it could be seen as indicating how countries present at the ministerial conference might Mexico hope things will proceed over the next few weeks in Telecom Regulator IFETEL has fined Korea. The declaration, here, says telecommunications America Movil (AM)-owned Telmex and ICT should be “viewed comprehensively, beyond the for monopolistic practices in the long- aspects of infrastructure and technology, to encompass distance call termination market. As economic development, enhancement of the quality of such, the watchdog imposed a fine of MXN49.32 million people’s lives and social integration”. (US$3.66 million) on the incumbent, bringing to an end an investigation that was initiated by Mexico’s Comision On their own, such phrases are sound like harmless Federal de Competencia (CFC) in May 2011. IFETEL’s bromides, but in the context of the coming final decision upheld a complaint from rival operator plenipotentiary, it’s likely to be seen as an attempt Axtel, which had accused Telmex of failing to respond to extend the remit of the body beyond its history of to interconnection requests; denying it information technical standardization, spectrum management, and regarding the location of its central offices; and playing the like. In that context “moving beyond” infrastructure recorded messages to Axtel users warning them of the is exactly what supporters of the ‘net’s existing multi- possibility that their service could be suspended. The stakeholder governance fear. Item 14 of the declaration financial penalty represents the maximum fine allowed will similarly be eyed warily. The 50 countries say that by law. (October 1, 2014) telegeography.com development of telecommunications and ICTs should including minimizing “the negative impact” of things like Telecom Regulator IFETEL have reportedly signed a cybersecurity threats, potential harms to the vulnerable series of framework agreements which will allow the (specifically nominating children), and “negative effects country’s planned open-access 700MHz network to on the environment”. While an ITU call for a focus on launch in 2018. Although there has been a degree of security seems unobjectionable at first viewing, it’s a confusion regarding the timeline for the project up until topic which again plays into concerns that national now, deputy communications minister Jose Ignacio governments might, via the ITU, seek to expand its Peralta has now confirmed that interested parties can remit using security as a justification for a brief to push submit their tenders in December this year, with the the treaty organization “up the stack” towards content. spectrum likely to be freed up by August 2015. Despite (October 20, 2014) theregister.co.uk the lack of a formal tender, the authorities received their first bid to build the state-owned mobile network last Luxembourg month, from an as-yet-unidentified consortium; telecom The European Commission (EC) has equipment providers Alcatel-Lucent and Ericsson helped taken Luxembourg to court with the mystery consortium craft the proposal, which could claims that the country’s regulator, be worth as much as US$10 billion over the course of the the Institut Luxembourgeois de next decade. (October 13, 2014) telegeography.com Regulation, has broken European Union (EU) rules and failed to conduct recent analysis of the

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Netherland deployed to the growth of their networks orchestrating KPN and the Dutch units of Vodafone their eventual collapse. The massive growth recorded and T-Mobile are to be granted in the Nigerian telecommunications space since extensions on their 3G mobile the liberalization of the industry which started with licenses in the 2100MHz band under the return to democratic rule, has eroded as over a a notification issued by the Dutch Ministry of Economic dozen telecommunication operating companies have Affairs on October 7, 2014. The current concession virtually collapsed. Apart from MTN, Globacom, Airtel, expiry date of December 31, 2016 will be extended Etisalat and Visafone which added subscribers to their by four years to December 31, 2020, as disclosed in network in 2013 and 2014, most of the other telecom a document published online by regulatory agency service providers have become inactive. Starcomms Agentschap Telecom. The decision follows a change and Reliance Telecoms (ZoomMobile) among other made to rules in July of this year by the ministry, allowing CDMA operators have ceased to operate their network the extension of licenses, and will give more time for thereby contributing nothing to the overall subscriber future distribution of the spectrum to be decided. There base in the last two years, while Multi-Links has moved is a six-week period for interested parties to submit away from voice telephony to wholesale data services. Latest figures released by the Nigerian Communications comments on the decision. (October 15, 2014) Telecompaper Commission (NCC) on its website shows that smaller telecommunication operators have disappeared as stiff Nicaragua competitive environment, inability to access sufficient The enigmatic Chinese telco Xinwei is funds, technology obsolesce, and poor management finally poised to launch operations in has wiped them out from the telecom field. The fixed/ Nicaragua – in January 2015 – but the fixed wireless telecom operators who did not add a scale of its deployment is vastly reduced single subscriber to their network throughout 2013 from that set out in its January 2013 license conditions. and 2014 include Starcomms Limited, Multilinks, The company will launch mobile telephony and Reliance Telecoms (Zoom), Intercellular Nigeria Limited, broadband connectivity in seven isolated communities VGC Communications which is owned by MTN, MTS in the North Atlantic Region in the new year. Despite 1st Communications, Disc Communications, WiTEL, promising to invest US$700 million in its initial launch, it O’Net (Odua Telecom), Rainbownet Limited, Monarch now transpires that Xinwei’s inaugural rollout has in fact Communications, XS Broadband (also owned b MTN) been funded by the World Bank, which has supplied it Webcom, IPNX and NITEL. (October 21, 2014) leadership.ng with US$800,000. (October 21, 2014) confidencial.com The Nigerian Communication Commission (NCC) has set a revenue target of N34.8 billion (US$224 billion) from Nigeria the auction of 2.6 Gigahertz (GHz) spectrum licenses Bitflux Communications, the winner of a slated for December 2-5, 2014, in Abuja. The commission national spectrum license in the 2.3GHz is offering 14 licenses of 2 X 5 MHz FDD paired spectrum frequency band earlier this year, plans to in the 2.6 GHz band ranging from 2500 – 2570MHz and roll out wholesale wireless broadband 2620 to 2690MHz (totaling 2 X 70 MHz) for auction on a services in three Nigerian cities in January 2015. A technology neutral basis. The NCC set a generic reserve consortium of VDT Communications, BitCom Systems (GR) price, the minimum price at which a license shall and Superflux International, Bitflux emerged as the be sold for one lot of 2 X 5MHz for N2.49 billion ($16 winner of the Nigerian Communications Commission’s million). The executive vice chairman of the NCC, Dr. (NCC’s) 2.3GHz spectrum auction in February with a Eugene Juwah, said for roll-out of services, the regulator bid of US$23.251 million, beating Globacom’s offer intends to follow the International Telecommunication of US$23.050 million. The 30MHz of spectrum will be Union (ITU) recommendation setting aside spectrum used to provide wholesale wireless broadband access in the 2.6GHz band for the provision of Advanced services to internet service providers (ISPs) and other Wireless Broadband Services to support the delivery of retail telecoms service providers, which in turn will broadband wireless services nationally. The NCC had in offer retail high speed internet services to consumers. February this year auctioned 30MHz band in the 2.3GHz Biodun Omoniyi, CEO of VDT Communications, said that spectrum which was won by Bitflux Communications with Bitflux is deploying LTE network infrastructure in major the bid price of $23.25 million above Globacom’s offer of cities and will begin operations next year: ‘Bitflux will be $23.05 million for the same spectrum license. According rolling out in three major states in the first instance and to the Information Memorandum (IM) released on the these include Abuja, Lagos and Port Harcourt in January NCC website, the commission decided to adopt for the 2015. Already, our vendors are deploying equipment for licensing of 2X70 MHz paired spectrum available in us and necessary installation will follow.’ the 2.6 GHz band. The proposed licensing of 2.6 GHz (October 28, 2014) The Guardian spectrum was influenced by the need to open up the space for the delivery of present and future generations The executive vice chairman of the Nigerian of broadband services to subscribers in consonance with Communications Commission (NCC) Dr. Eugene Juwah, the Nigerian National Broadband Plan of 2013. Juwah has blamed the strings of bad loans from Nigerian said the NCC has consulted with the relevant industry banks for the collapse of several Code Division Multiple stakeholders to determine the demand and the best way Access (CDMA) network operators in the country. Juwah, to issue the spectrum. “Based on these and observations who delivered a keynote address at the 2014 Telecom of developments in international licensing trends, Executives and Regulator’s Roundtable organized by the commission has decided to license the available the Association of Telecommunications Companies of 2X70 MHz slot in slots of 5 MHz to be aggregated by Nigeria (ATCON) in Lagos recently, said poor financial applicants through the spectrum auction process. “Each management occasioned by the huge loans sourced lot of 2X5 MHz represents one eligibility point. An from banks led to the implosion among CDMA applicant that pays the IBD for six lots will have a total network operators. He said: “The CDMA operators of six eligibility points. The reserve price for an applicant dying because they borrowed heavily from banks and will be calculated as the GR multiplied by the number of they could not pay back.” Juwah said the operators lots applied for by the applicant. (October 17, 2014) leadership.ng over-borrowed, and most of the loans were effectively

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reduced the maximum porting time to 24 hours. Entel The Nigerian Communications Commission (NCC) has saw the greatest net benefit, adding a total of 11,724 said that it is set to award the first two of seven regional new subscribers, whilst Bitel added 982 users. Local infrastructure company (InfraCo) licenses in the next heavyweights Claro and Movistar booked net losses of two weeks. NCC executive vice chairman Eugene Juwa 4,438 and 8,268 respectively. (October 27, 2014) telegeography. said that the two permits will cover Lagos State and the North Central Zone, allowing for the deployment of metropolitan fibre-optic infrastructure and associated Poland transmission equipment on an open access, non- The Central Statistical Office (GUS) has discriminatory and price-regulated basis. As outlined reported that the country added 400,000 by the regulator’s ‘Open Access Next Generation new mobile SIM cards in the third quarter Fiber Optics Broadband Network’ paper, which was to end-OCTember 2014, taking the total published late last year, the InfraCos will be responsible number of cellular users to 57.25 million for providing a national broadband network to service and raising mobile penetration to 148.7%. The year- providers. The NCC says that the Open Access Model on-year increase in the number of SIMs stood at 1.271 for fiber-optic network deployment is best suited to million. Poland is home to four main mobile operators, bridge the digital divide, facilitate the development of T-Mobile Poland, Orange Polska, Polkomtel and P4/Play, local content, and deliver fast and reliable broadband while two smaller firms – Aero2 and Centernet – account services to households and businesses. It is expected for fewer than one million subscriptions between them. to help address the challenges of fiber deployment in (October 28, 2014) telegeography.com towns and cities, promote infrastructure sharing and reduce right of way issues. (October 3, 2014) The Daily Independent The Office of Electronic Communications (UKE) has announced its latest plans to auction 19 national frequency licenses which are suitable for 4G Long Term OTT Providers Evolution (LTE) technology in the 800MHz and 2600MHz Over-the-top service providers are together bands. In the 800MHz band the sale will cover five 5MHz spending more than $30 billion per year on physical lots of paired spectrum in the ranges 791MHz-816MHz infrastructure, according to Analysys Mason. Pure- and 832MHz-857MHz, while at 2600MHz 14 lots of play OTTs like Amazon, Google, Facebook and Netflix, 2×5MHz will be offered between 2500MHz-2570MHz as well as multiplatform players like the BBC and New and 2620MHz-2690MHz. Bidding will close on November York Times, are investing heavily in fiber networks, 24 and no entity is allowed to bid for more than two lots data centers, servers and routers to host and deliver in the lower band, and four lots in the higher range. A content and services more efficiently to end users. To minimum price of PLN250 million (US$75.6 million) has that end, between them they spent more than $100 been set for each packet of 800MHz spectrum, while the billion between 2011 and 2013, said Analysys Mason minimum bid for lots in the 2600MHz band is PLN25 in a new report on Tuesday. Hosting accounted for million. The concessions will be valid for 15 years. UKE the lion’s share – approximately $29.6 billion per year originally launched the 800/2600MHz auction in January – due mainly to the proliferation of online video, both this year, but from the start the sale was dogged by professionally-produced and user-generated video. In controversy, including threats from Polkomtel that it addition, OTTs are making widespread use of content would boycott the tender over allegations that the terms delivery networks, whether they are building their own discriminated against the cellco whilst aiding its rivals. or using an external provider. Analysys Mason estimates On February 11, UKE decided to cancel the auction after that 60% of the world’s Internet traffic uses a CDN. a technical glitch prevented operators from accessing “Internet players are already putting big money on the documents relating to the sale. The fault left potential table – and into the ground and under the sea. They bidders with just a few hours to read the regulator’s are getting into increasingly large partnerships with response to requests for clarification on the terms of investors and telecom operators,” said a statement the sale. The watchdog initially decided to postpone the from principal analysts David Abecassis and Andrew bidding until February 14 to give it time to rectify the Kloeden, co-authors of Analysys Mason’s report, which situation, but it subsequently announced that it would was commissioned by Google. “That comes in addition scrap the auction and renew the process. Explaining its to investment in their core business of content and decision to abandon the sale, the regulator said that it had software.” On a regional basis, Europe accounts for £10 a ‘duty to provide participants with a stable, transparent billion of OTTs’ annual infrastructure spending thanks and predictable environment in which there is no room to its role as a global hub for Internet traffic. This is for the slightest legal doubt’. Separately, Poland’s fourth closely followed by North America at $9.3 billion and largest cellular operator P4, which trades as Play, has Asia-Pacific at $7.7 billion. Online content and service announced that its 4G LTE networks now cover 63% providers are now “large contributors to the physical of the population, with infrastructure installed in some fabric of the Internet,” said Analysys Mason. 1,500 communities, including 932 with a population (October 1, 2014) totaltele.com of more than 1,000 people. Meanwhile, number three cellco Polkomtel claims 66.7% LTE population coverage, Peru while the two largest providers, Orange and T-Mobile, According to sector regulator OSIPTEL claim 58% coverage from their shared 4G infrastructure. the launch of Bitel and the rebranding (October 14, 2014) Rzeczpospolita of Nextel del Peru to Entel has led to an 81% increase in the number of Romania users switching provider via mobile The telecoms watchdog the National number portability (MNP). New deals offered by the Authority for Management and duo saw MNP figures increase to 21,396 for the period Regulation in Communications from October 1-23, compared to 11,844 for the whole (ANCOM) has published for public month of OCTember. The watchdog added that in the consultation its draft action plan for five years since its introduction, 310,661 customers have 2015. ANCOM highlighted in a release on its website used MNP, 47,439 of which since July 16 when OSIPTEL that, amongst other projects, it will continue reviewing

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SAMENA TRENDS _ OCT_2014 the relevant internet access markets including leased of Understanding (MoU) was further prolonged on two lines, identifying potential providers with significant occasions, in May and August 2014. market power and establishing appropriate regulatory (October 10, 2014) Global Times measures. ANCOM also plans to allocate additional spectrum resources for broadband communications by holding an auction for spectrum licenses in the 3.4GHz- South Africa 3.8GHz frequency band. The authority will also support The government is reportedly the transition to digital terrestrial television (DTT) via a considering selling its minority stake in tender in the second quarter of 2015 for the remaining telecoms operator Vodacom Group as digital multiplexes while technically authorizing the DTT it seeks funding to bolster struggling electricity supplier Eskom. According multiplexes granted in 2014. (October 24, 2014) telegeography.com to unnamed sources, state officials have approached financial advisers with regards to the potential disposal of its 13.9% stake in the operator, which is valued at around Russia ZAR26 billion (US$2.3 billion). One source disclosed The Office of the Federal Bailiff Service that the share would most likely be sold to institutional (UFSSP) in Moscow has prohibited the investors rather than a private buyer, adding that a deal State Radio Frequency Commission is not imminent. However, Vodacom spokesman Richard (SRFC) from disposing of spectrum Boorman said the company was not aware of any plan by frequencies in the 1980MHz-2000MHz band, which government to sell its stake, while South Africa’s treasury are currently held by Antares Telecom – led by the said in a statement that if the state considers changing businessman Yevgeny Roitman. The decision, which was its ‘involvement in particular sectors’, it would have to signed on Friday 10 October, is the latest development ‘handle information with extreme care, bearing in mind in a long-running dispute over the telco’s plan to use the that some of the entities are listed and any decision frequencies to launch a 4G Long Term Evolution (LTE) involving them is market-sensitive and is governed by network in the country. Previously, the Federal Arbitration strict laws and regulations.’ Vodacom Group is majority Court of the Moscow District found the SRFC guilty of non- owned by the UK’s Vodafone Group (65%), while the compliance with its order to allocate Roitman’s company South African government holds a 13.9% stake; the a license to use the 1980MHz-2000MHz frequencies remaining shares are distributed on the Johannesburg for the construction of its LTE network. In April 2012 Stock Exchange. (October 16, 2014) Bloomberg the Federal Supervision Agency IT, Communications & Media (Roskomnadzor) granted the telco permission to use its long-held frequencies to deploy a network Taiwan based on LTE technology. The frequencies are held by The National Communications the Russian firm and its regional subsidiaries Arktur Commission (NCC) has reportedly and Integral, and were originally granted in early-2008, granted Asia Pacific Telecom (APT) a covering the period April 18, 2008 to April 18, 2013. 4G operating license, allowing it to Previously, in March 2012 the watchdog reacted angrily offer mobile services over the 700MHz to reports that Antares was set to embark on an LTE trial band. Earlier this month the watchdog was said to have in Moscow, refuting suggestions that the company was granted the operator a block of one million mobile in possession of the necessary permissions. However, numbers that can be used for its LTE-based service. APT Roitman’s group is frustrated over the impasse and is submitted its application for the operating concession pursuing legal proceedings against the regulator for on October 8, 2014, with the regulator approving it its inactivity and heel dragging. In May 2013, the SRFC just yesterday, and the cellco now has six months to claimed it had fulfilled a court order by considering begin offering commercial 4G services. Back in July Antares Telecom’s application, but still refused to grant 2014 the NCC was said to have issued a permit to the frequencies. Subsequently, Roitman has submitted APT allowing it to move forward with the construction two requests to the court – losing in both instances – of its proposed 4G network. At the same date it was however, it then won on appeal with the courts ordering confirmed that Ambit Microsystems, a subsidiary of the the SRFC to grant Antares the frequencies. Most recently, Foxconn Technology Group (Hon Hai) had also received in August this year the company filed a petition with the a network construction concession. Earlier that month it Court of Arbitration to impose a fine on the regulator had been confirmed that APT and Ambit would merge for not complying with the court decision; the hearing is via a share swap deal. OCTember 2014 saw the NCC scheduled for 20 October. (October 13, 2014) ComNews confirm it had still yet to make a decision regarding the proposed merger, however. Meanwhile, according to this latest report, in addition to the rollout of its own Sierra Leone infrastructure by vendors Nokia and Alcatel-Lucent, APT Telecoms watchdog, the National will also partner with Taiwan Mobile Company to share Telecommunications Commission network resources. This tie-up, it is claimed, will enable (NATCOM), has announced that APT to offer greater coverage at launch. effective October 13, 2014, the (October 23, 2014) The China Post operational license granted to Comium Sierra Leone will be revoked, following the company’s failure to settle its debts. The regulator said in a Public Notice published Tanzania on October 7, 2014 that it has held ‘several meetings The government is proposing the with representatives of the company in a bid to have introduction of new taxes on the the financial liabilities of the company addressed in the telecoms industry, including further interest of the sector’, but talks ultimately proved ’futile’. levies on airtime, data usage and mobile In January 2014 NATCOM issued Comium with a 21-day handset costs. Minister of Finance and notice of suspension of its license and the utilization of Economic Development, in his 2014 Mid-term Fiscal the resources allocated to it. Following an intervention Policy Review Statement, noted: ‘Government faces a by the Ministry of Information and Communications challenge to raise additional revenue to finance non- (MIC), the debt-ridden operator was given a three-month discretionary expenditures. I therefore propose to levy extension period to pay its creditors; the Memorandum excise duty of 5% on airtime for voice and data, with

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SAMENA TRENDS _ OCT_2014 effect from OCTember 15, 2014.’ He went on to say that Taiwan an earlier reduction of taxation on the purchase of new The Broadband Forum said it is pushing cellular handsets, which was implemented in August ahead with interoperability testing of 2009, had had the desired effect of stimulating growth G.fast technology and aims to begin in the cellular market, and he would therefore be upping certifying the first products during the tax rate on device sales to 25% from mid-OCTember. the second half of 2015. The industry (OCTember 15, 2014) BiztechAfrica body has selected the University of New Hampshire Interoperability Laboratory (UNH-IOL) to conduct the tests. “Operators have told us that interoperability will Trinidad & Tobago be key to the success of G.fast, so we are developing test Country has launched a local internet plans based on their requirements, which UNH-IOL will exchange point (IXP) under the name certify based on those plans,” said Robin Mersh, CEO of TTIX, enabling internet service providers the Broadband Forum, in a statement. G.fast uses higher (ISPs) to connect their users to local frequencies to enable every DSL sub-channel to carry content and services cost-effectively, securely and significantly more data. It is particularly susceptible to efficiently. TTIX has seven ISP members at launch, crosstalk though, limiting its effectiveness to very short namely Telecommunications Services of Trinidad and lengths of copper of around 100 meters or less; therefore Tobago (TSTT), Columbus Communications (Flow), it has to be deployed in tandem with vectoring. The Digicel, Massy Communications, Open Telecom, Broadband Forum expects technologies like G.fast to Greendot and Lisa Communications, all connecting to play an important role in extending the reach of ultrafast a local network switch physically located at the Fujitsu broadband because it can deliver Gigabit speeds data centre in Barataria. Chairman of TTIX, Kurleigh without the cost of deploying fiber all the way to the Prescod – of Columbus Communications – described the premises. Operators also see the potential in G.fast, with launch as ‘a very significant milestone,’ adding that the BT, Telekom Austriaand TeliaSonera in particular pushing IXP will improve local internet performance and ‘act as ahead with trials. “Our goal is to begin initial testing of an incentive to attract content providers, such as Netflix, G.fast products during the first half of 2015 and deliver Akamai and Google, to establish a point of presence the first certifications during the second half of the in Trinidad and Tobago.’ Of over 350 IXPs around the year,” said Lincoln Lavoie, senior engineer of broadband world, Trinidad and Tobago becomes the ninth in the technologies at UNH-IOL. The announcement came as Caribbean, joining British Virgin Islands (BVIX), Curacao global fixed broadband connections reached 700.19 (AMS-IX), Dominica (DANIX), Grenada (GREX), Haiti, million this week, according to research firm Point Topic. St Maarten (OCIX), St Lucia (SLIX) and the Dominican “Our latest data sees another milestone passed with Republic. Jean-Paul Dookie, executive vice president steady growth in most countries,” said Point Topic CEO of government business for Fujitsu described the new Oliver Johnson. “As we start to figure out how to use exchange point as ‘an essential building block towards what we have and perhaps more importantly how to the development of the Trinidad and Tobago knowledge coordinate the services and extract the synergies, we’ll economy.’ (October 10, 2014) Daily Guardian see more and more positive outcomes in the coming years.” (October 21, 2014) totaltele.com Uganda At only 15 percent internet penetration British fixed line incumbent BT is reportedly facing the data service segment of business is technical issues that could see its return to the consumer still Uganda’s fresh frontier for new growth mobile market delayed, The Telegraph reports, citing in the telecom sector. The challenge unnamed sources at the company. It has been claimed according to sector players however is that BT is struggling with technology designed to the cost of data at wholesale which has driven retail data ensure that as much voice call and data traffic as prices up making it unaffordable to many. possible is carried over Wi-Fi networks, rather than via a 4G mobile network. With BT aiming to undercut the (October 23, 2014) ntvuganda.co.ug nation’s incumbent cellcos on price, such technology is critical for BT as it would enable it to keep the cost of Ukraine providing its wireless voice service low by carrying the The Cabinet of Ministers has approved bulk of traffic on its infrastructure rather than via EE’s the terms of the planned competitive mobile network; BT has a deal to rent capacity from tender for 3G (UMTS) 2100MHz mobile EE to help fill in coverage gaps between its 5.4 million licenses, according to one minister, Wi-Fi hotpots. According to the report, however, BT has Ostap Semerak, who disclosed that the had trouble with the ’handover’ between Wi-Fi and the government made the decision ‘two weeks ago’ but mobile networks, with a source noting: ‘The handover is has not officially publicized it as the telecoms regulator absolutely essential for BT to do what it wants to do with NCCIR is yet to file the final decision with the signature of mobile. It’s possible the launch will slip into the second the Prime Minister. Mr. Semerak, whose title is Minister quarter of next year now.’ (October 6, 2014) telegeography.com of the Cabinet of Ministers (appointed in February 2014), also stated that, in line with previous reports, the The chief executive of U.K. telecoms regulator OFCOM cabinet’s position is to ensure that Russian companies will leave his post at the end of the year. The search for – or companies with ‘a large share of Russian capital’ Ed Richards’ replacement is already underway and the – cannot participate in the competition for 3G licences post will be advertised nationally in the near future, in Ukraine. On the face of it, this ruling excludes both OFCOM announced on Thursday. It added that expects Ukraine’s two largest cellcos, wholly Russian-owned MTS to complete the recruitment process early next year. It Ukraine and Kyivstar (wholly owned by majority Russian- did not give a reason for the move, although Richards backed Vimpelcom). (October 3, 2014) ProIT himself indicated that his decision was motivated by the amount of time he has spent in the role. “It is never easy leaving a job that you enjoy greatly but I have always felt that once I had completed eight years as chief executive this would be the right time to move on,” he

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SAMENA TRENDS _ OCT_2014 said in a statement. Richards joined the OFCOM board in convincing broadcasters to participate in the “reverse” March 2003. He became the regulator’s chief operating auction process, noting at a recent speech that the officer just over two years later and took on the top opportunity was a once-in-a-lifetime chance to garner job in October 2006, replacing Stephen Carter. “Under financial compensation for underutilized airwaves. his leadership, OFCOM has helped to deliver superfast “Seldom have I seen such a risk-free opportunity as that broadband, 4G, lower prices, innovation, competition, represented to broadcasters by the incentive auction, and sustainable public service broadcasting in the U.K.,” including the opportunity to continue their existing said OFCOM chairman Patricia Hodgson. business on shared spectrum and take home a check for (October 2, 2014) totaltele.com the spectrum they vacate,” Wheeler said in March at an event at the Brookings Institute in Washington, D.C. The FCC has estimated that wireless operators will be willing to pay up to $38 billion for spectrum allocation. United States The court has agreed to expedite the case, but a ruling The US Federal Communications is not expected until early 2015. Wheeler reiterated his Commission (FCC) has indicated that focus on the proceedings at the recent Competitive it expects the voluntary re-auction of Carriers Association and CTIA trade shows where broadcast spectrum for mobile usage he encouraged mobile operators to participate in to be delayed until early 2016 from the proceedings. CCA and CTIA both came out with a previous mooted timetable of mid-2015, Telecoms. supportive comments on the most recent delay. “The com reports. Gary Epstein, Chair of the FCC’s Incentive FCC’s decision to delay the time frame for the incentive Auction Task Force, pointed to delays likely to be caused auction is not particularly surprising, and one could say by TV broadcasters’ court challenges to the auction a delay was actually expected,” said CCA President and rules, which he estimated would take six months or CEO Steve Berry. “The incentive auction is still on track, so to be completed in court. The National Association even with the slight delay. There is an old saying that, ‘If of Broadcasters, which launched the lawsuit, issued you want it bad, you will get it bad.’ I know our members a statement saying: ‘We reject suggestions that our want it right, and the FCC is just trying to ‘get it right.’ I narrowly focused lawsuit is cause for delay … We look have been impressed with the quality and progress of the forward to a speedy resolution of our legal challenge work of the FCC team so far. This is a reasonable, if not and a successful auction that preserves access to free expected, short delay for a very complicated auction and and local TV for every American.’ FCC confirmed back will allow time for the industry to plan for the acquisition in early 2010 that it would not force broadcasters to and integration of the most valuable low-band spectrum give up spectrum holdings for wireless broadband use, made available to the wireless industry in over a decade. but would instead establish a ‘voluntary marketplace Everyone remains interested in the 600MHz spectrum mechanism’ so that TV stations have a choice in how auction and every carrier needs low band spectrum. CCA they want to use their spectrum, including relinquishing will continue to monitor the progress closely.” “While all, part of, or none of their frequency resources. (October any delay in spectrum auctions is unfortunate, we 28, 2014) telegeography.com appreciate the thoughtful focus the FCC has brought to this complex auction to ensure it is conducted properly The Federal Communications Commission’s ambitious to the benefit of all Americans,” said Scott Bergmann, VP plan to auction off 600 MHz spectrum licenses returned of regulatory affairs at CTIA. “Today’s action underscores by broadcasters has been pushed until at least 2016. the need to resolve the pending litigation over the The FCC was looking to hold the auction proceeding FCC’s rules expeditiously. When the auction is held, in mid-2015. In a blog post, Gary Epstein, chair of the mobile companies will have their checkbooks ready FCC’s Incentive Auction Task Force, cited the complexity to participate in this critical auction that will be key to of the proceedings as well as a recent court challenge our nation’s wireless future.” Sprint, which is set to sit brought about by the National Broadcasters Association, out the upcoming AWS-3 auction presumably in order which claimed the FCC in its 600 MHz incentive auction to focus its efforts on the 600 MHz proceedings, also rulemaking changed the “methodology used to predict supported the move. “Given the circumstances, the local television coverage areas and population served, FCC made a wise choice to revise the start date of the which could result in significant loss of viewership of 600 MHz incentive auction,” said Jeff Silva, manager of broadcast TV stations after the FCC ‘repacks’ TV stations corporate communications at Sprint. “While the auction into a shrunken TV band.” Epstein explained that the schedule has changed, the policy focus has not. To that court earlier this week issued a briefing schedule that end, we look forward to continuing our dialogue with calls for final briefs to not be due until late January 2015, federal regulators to help develop auction rules that with oral arguments not expected until a later date. best promote vibrant, sustainable competition in the That timeframe likely would push a final court decision wireless space.” (October 24, 2014) rcrwireless.com beyond the mid-2015 period. “We are confident we will prevail in court, but given the reality of that schedule, the FCC published a Notice of Inquiry (NOI) to investigate complexity of designing and implementing the auction, the possibility of using frequencies above 24GHz for and the need for all auction participants to have certainty cellular wireless systems — specifically, for next-gen well in advance of the auction, we now anticipate mobile data standards such as 5G. Given how we’ve accepting applications for the auction in the fall of 2015 essentially run out of spectrum in the cellular sweet and starting the auction in early 2016,” Epstein said in a spot, and how Europe and Asia have already started statement. “Despite this brief delay, we remain focused on their own 5G inquiries, it’s high time for the FCC to on the path to successfully implementing the incentive dig into the possibility of super-fast cellular networks auction.” The FCC has aggressively been moving forward in the Super High and Extremely High Frequency on the incentive auction proceedings, including the recent bands that are as capable as standard wireline (DSL rollout of a notice of proposed rulemaking connected to and cable) broadband. All mobile network systems bidding plans, and the release of an information packet currently operate on frequencies in the UHF (Ultra High targeted at television broadcasters. FCC Chairman Tom Frequency) band, which comprises of 300MHz to 3GHz. Wheeler has noted that the greatest challenge for the The UHF band is considered the “sweet spot” of cellular planned 600 MHz incentive auction process will be in today, with a decent mix of frequencies that travel far

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SAMENA TRENDS _ OCT_2014 and wide (low-band spectrum) and frequencies that auctions and make it easier for smaller companies to bid provide substantial capacity for data performance (high- for licenses. The NPRM would revise some of the Part 1 band spectrum). Mobile network operators use a mix of Competitive Bidding Rules (WT Docket No. 14-170) to low-band and high-band spectrum to provide optimal allow small businesses, rural telephone companies, and coverage and capacity to meet the needs of their minority- and women-owned businesses—collectively subscribers. However, the amount of available spectrum known as designated entities (DE’s)—to receive up that can be allocated for cellular wireless systems in the to a 35 percent credit on the purchase of spectrum, UHF band has dwindled away in recent years — which is in order to encourage greater participation in the why we’re now considering new blocks of spectrum that auction. The NPRM would also raise the bidding credit are very much outside the sweet spot. The FCC inquiry eligibility thresholds for larger DE’s, as well as modify centers on the usage of frequencies in the upper portion the former defaulter rule, eliminate duplicative reporting of the SHF (Super High Frequency, 3GHz to 30GHz) requirements, eliminate the attributable material band and the lower portion of the EHF (Extremely relationship rule, and modify certain consortium bidding High Frequency, 30GHz to 300GHz) band for cellular rules. The proposed rules would also seek to eliminate systems. Specifically, the FCC is examining the possibility the facilities-based requirement for DE businesses to of licensing 24GHz to 90GHz for use of cellular mobile provide primarily retail, facilities-based service directly network services. SHF and EHF bands are very high to the public. Elimination of the rule would allow DE’s capacity, but traditionally these high frequencies can to more easily lease their spectrum to other wireless only travel a very short range. EHF (also called millimeter carriers, including the four largest companies, Verizon wave, or mmWave) band frequencies are currently in use Wireless, AT&T Inc., Sprint Corp., T-Mobile US Inc., while for high-bandwidth wireless systems that do not require still maintaining their DE status. (October 10, 2014) bna.com much distance, like WiFi on 60GHz. The reason for this is simple: the higher the frequency, the harder it is for it The U.S. Telecom Association sent a petition to the to pass through obstacles. Conventionally speaking, EHF FCC asking that some old broadband regulations requires unobstructed line-of-sight connections (which be tossed out. The petition argues that some of the is why 60GHz WiFi generally needs it to be useful). broadband regulations, written decades ago, only (October 22, 2014) extremetech.com apply to voice-only telephone systems and have nothing to do with the current high-speed Internet A group of U.S. cities have come together and formed system that uses broadband. The petition covers an association tasked with helping communities attract several aspects of the current regulations that cause investment in high-speed broadband networks. Called problems with innovation and advancing technology. Next Century Cities (NCC), it boasts 32 founding “It identifies specific barriers to investment in advanced members from all corners of the country. They will share telecommunications technology, impediments to more knowledge and information about how to leverage robust broadband competition, and disincentives next-generation networks to attract businesses, create to deployment of new Internet infrastructure that jobs, and improve healthcare and education. “Across the the Commission can eliminate through regulatory country, city leaders are hungry to deploy high-speed forbearance – in precisely the way Congress intended Internet to transform their communities and connect by enacting Section 706 as a tool for accelerating the residents to better jobs, better healthcare, and better availability of advanced telecommunications capability education for their children,” said Deb Socia, executive to all Americans,” the petition states. The USTA cites director of NCC, in a statement. “These mayors are FCC Chairman Tom Wheeler’s recent talk at 1776 about rolling up their sleeves and getting the job done,” she innovation and competition in the field as part of the said. “Next Century Cities will be right alongside them inspiration for the petition. Removing the regulations to help them make their goal of communities across the would actually increase competition according to the country having access to fast, affordable, and reliable letter. As that’s been a theme that Wheeler has harped Internet a reality.” If they are too burdensome, local rules on repeatedly during his tenure, it’s a smart move to and regulations tied to physical infrastructure can play try and appeal to that interest to convince him and a significant role in hindering broadband deployment. the other commissioners. According to the group, the NCC said it has been set up to help communities regulations “don’t apply to cable companies or any of understand what works – and what doesn’t – when it our competitors, and to the extent that they ever served comes to developing an NGN strategy. “Cities will also a purpose that purpose has long since evaporated.” How work together to raise awareness of this important issue many of the regulations the FCC will agree with the USTA to all Americans,” said NCC. Inaugural members include about getting rid of is uncertain at this point, but that Austin, Boston, Kansas City in Kansas as well as Kansas doesn’t mean that there won’t be major updates and City in Missouri, Palo Alto, and Santa Monica. “Boston changes to broadband regulations that will affect how is home to world-renowned academic and medical broadband providers regulate services. At the very least, institutions and important technology companies all of the net neutrality issues that the FCC is supposed to that rely on broadband Internet to educate, heal and soon resolve will have a domino effect that hits all kinds innovate. We see continued improvement in broadband of telecom regulation, including broadband. The USTA speed and affordability as an essential element to driving will just have to hope that their pet regulation changes growth and creating economic opportunity,” said Boston are among them, even if its phrasing is quite positive mayor Marty Walsh, in a statement. “Collaboration with about its chances. “[T]oday, we invite the Commission other municipalities is essential to discovering the full to innovate with us,” the letter states. We offer a set potential of high-speed Internet. Sharing the experiences of reforms that will establish an improved policy and insights of different cities will help spark new ideas environment for innovation, investment, competition, and maximize the impact of this technology nationwide,” and consumer choice.” (October 7, 2014) inthecapital.streetwise.co added Lee Leffingwell, mayor of Austin. (October 21, 2014) totaltele.com The Federal Communications Commission (FCC) has received 80 applications to take part in November’s The Federal Communications Commission issued a notice auction of AWS-3 mobile spectrum. As expected, the of proposed rulemaking (NPRM) that would limit joint bidders include major mobile operators AT&T, Verizon bidding efforts in the commission’s upcoming spectrum and T-Mobile US, but not Sprint, which earlier this

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SAMENA TRENDS _ OCT_2014 month confirmed to the newswires that it would not take part. Satellite TV provider Dish Network is also on the list published by the FCC; it will reportedly take part under the name American AWS-3 Wireless. The U.S. regulator said that of the 80 applications it had received, 33 were considered complete. Those companies will be permitted to take part in the auction, provided they pay the deposit required by October 15. AT&T’s application was on the incomplete list, but that will not necessarily exclude it from the auction. The companies that lodged incomplete applications have until mid-October to re- submit. The FCC’s document noted that the auction will begin on November 13. 1,614 AWS licenses will be up for grabs in the 1695-1710-MHz, 1755-1780-MHz and 2155-2180-MHz bands. The regulator plans to release final list of all qualified bidders in early November. At the same time it will publish details of the bidding schedules for the mock auction, due to take place on 10 November, and for the first day of the actual auction. As announced in July, the FCC expects to make upwards of US$10 billion from the sale of spectrum. It has set a reserve price of $10.65 billion for the frequencies. (October 2, 2014) totaltele.com Uruguay Telecoms regulator URSEC has reported that the country ended June 2014 with 5.358 million mobile subscribers, an increase of 4.5% from 5.128 million twelve months earlier. Pre-paid subscribers accounted for the majority of users (3.579 million, 66.8%), while the number of post-paid customers climbed from 1.649 million at mid-2013 to 1.778 million twelve months later. State-owned Antel remains the market leader with 50% of total mobile subscribers at 30 June 2014, followed by Telefonica of Spain’s Movistar with 35% and Claro (owned by America Movil) with 15%. Mobile broadband customers totaled 1.814 million at the end of June 2014, compared to 1.292 million a year earlier. URSEC reported that Uruguay ended June 2014 with 1.059 million fixed lines in service (up from 1.048 million at the start of the year), with residential lines accounting for the lion’s share (82%) at that date. The number of fixed broadband subscribers reached 795,804 at mid-2014, up 18.0% from the 652,797 reported twelve months earlier, with DSL and FTTx accounting for 98% (779,140) of all fixed broadband accesses. Meanwhile, pay-TV customers increased from 620,926 at 30 June 2013 to 685,591 twelve months later. (October 20, 2014) telegeography.com

Vanuatu Telecoms watchdog TRR has disclosed that the two domestic cellcos – Telecom Vanuatu Limited (TVL) and Digicel Vanuatu – have signed an amendment to their interconnection agreement from April 2014. The updated agreement, which was negotiated without the involvement of the TRR, now includes a new service that provides for the origination, handing over and termination of calls to toll free numbers that are assigned to the two respective operators. The TRR notes that interconnection between the two wireless operators is a requirement under Section 26 of the Telecommunications and Radiocommunications Javaid Akhtar Malik Regulation Act. When the telecoms market in Vanuatu Regulatory Affairs was liberalized in 2008, the two providers signed an SAMENA Telecommunications Council Interim Interconnection Agreement for the period June 25, 2008- June 25, 2010, which was subsequently replaced by a new agreement on June 8, 2012, effective June 26, 2012 for a period of two years. The most recent “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 agreement between the telcos was signed on April 1, being solely reliant on information contained herein. Expert advice should be sought.” 2014. (October 9, 2014) telegeography.com

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SAMENA TRENDS _ OCT_2014

wholesale NEWS

MTN SA reduces roaming what legal basis the company intends to fight the new regulations. Previously, rates for Saudi Arabia in early OCTember Cell C expressed its MTN South Africa launched a roaming disappointment with the regulator’s promotion for the benefit of members proposed termination rates and accused of the Muslim community who will be it of making ‘a dramatic U-turn’ by stating travelling for The Hajj annual pilgrimage that ‘the massive proposed reduction in to Mecca in Saudi Arabia. The roaming asymmetry completely eliminates any promotion commences with immediate pro-competitive remedy.’ effect and runs until 10 October and sees greatly reduced voice, SMS, and data The regulator revealed its final MTRs rates during The Hajj annual pilgrimage for the period October 1, 2014 to to Mecca. The special rates will only be OCTember 30, 2017, which give smaller WHOLESALE valid for MTN customers roaming in players ‘slightly better asymmetry’ than Saudi Arabia on the Mobily network. the one proposed in its draft regulation Updates Local calls will be charged at R2.5 per from early OCTember. From October 1, minute and calls to South Africa and the 2014, the asymmetry MTR rate is set at rest of the world at R5 per minute. SMS ZAR0.31 (USD0.03) per minute, before will be charged at R2 per message while dropping to ZAR0.24 per minute (38%) data will be available at R2 per megabyte. in October 2015. A further reduction, to ZAR0.19, will occur in 2016. Previously, ICASA proposed to cut the asymmetry Cell C likely to challenge MTR rate to ZAR0.30 from October 1, 2014, ZAR0.22 per minute (March 2015), ICASA’s final MTRs in court ZAR0.16 (2016) and ZAR0.10 (2017). Jose Dos Santos, CEO of South African wireless operator Cell C, has revealed that the company is likely to challenge Safaricom suspends telecoms regulator ICASA’s final decision relating to mobile termination rates introduction of reduced (MTRs). TechCentral cites the executive as roaming rates to Rwanda saying: ‘From where we sit … we are not Kenyan wireless operator Safaricom, left with too much choice but to take this the country’s leading cellco in terms of as a legal challenge. It is what it is. We are subscribers, has announced that it will still reviewing [the regulations, but] we suspend the introduction of reduced will probably have a legal challenge on roaming charges to Rwanda, following our hands in the coming days and weeks.’ a Rwandan government directive which Mr. Santos however did not disclose on

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SAMENA TRENDS _ OCT_2014 installed new levies on international service are set to have a free upgrade to Saudi Arabia this Holy season do calling and roaming tariffs between to a 200MB plan. More than 250,000 not lose touch with their loved ones. the two countries. Safaricom’s CEO SingTel customers travel to Malaysia “We are always committed to the Bob Collymore disclosed that the new every month, noted Mr Johan Buse, total wellbeing of all our customers as development ‘makes it impossible’ for SingTel’s Vice President of Consumer we strive to make their lives brighter operators in Kenya and Rwanda to go Marketing. SingTel is partnering with through our propositions, products ahead with the planned downward Malaysian network Maxis to offer the and value-added services. The thrust revision of roaming tariffs under the rate. A Network Lock feature prevents of this initiative is to ensure friendly ‘One Network Area’ program. ‘We customers from accidentally roaming roaming tariff rates for our customers will therefore revert to the previous onto a non-preferred network and who travel to Saudi Arabia and can tariffs even as we push on with efforts incurring additional charges. still feel at home, browsing at the to ensure that we have affordable most affordable rate of one kobo per calling rates for the region’. Safaricom kilobyte,” Oyeyemi said. He added, planned to cut the voice call rate to/ Denmark inks roaming “Apart from the data rate, customers from Rwanda to KES10 (USD0.11) per agreement with China can also make calls at an affordable minute, less than half the current rate Denmark and China have signed a rate; send text message at a reduced of KES25 per minute. The CEO also bilateral agreement that will make rate and receive SMS from their loved said that the company has entered it cheaper for Danes to use mobile ones at no cost, while enjoying other into discussions with the Ministry of phones when visiting China and vice- affordable friendly roaming services Information and Communications versa via lower roaming prices.Danish that MTN offers.” Speaking on how and telecoms regulator the and Chinese mobile phone companies to enjoy the reduced roaming rates, Communications Authority (CA), will sign a similar co-operation deal Oyeyemi explained that while in seeking a revision of the position taken that will bind them to negotiate Saudi Arabia subscribers should go by the Rwanda government. lower prices. “Today, it costs a Dane to the ‘setting’ of their phones, scroll 400-1,200 kroner to stream a three- to ‘network selection’, and choose Telecom operators in Kenya, Rwanda minute video on your cell phone using ‘manual’. All available networks will be and Uganda committed to cap the roaming in China,” Henrik Sass Larsen, displayed and Select ‘Mobily’ or ‘Zain’ minimum roaming charges in the three the business and growth minister, network and this allows you to enjoy countries from 1 October 2014; South said in a press release. “That’s far too lower call, SMS and data roaming rates. Sudan was set to join the initiative expensive so I am pleased that we have later this year, with other countries in signed a co-operation agreement with MTN sponsored 20 of its Muslim the region also expected to follow suit. the Chinese government to reduce subscribers in an all-expense paid The five EAC member states – Burundi, roaming prices.”SingTel customers trip to the holy land for this year’s Kenya, Rwanda, Tanzania and Uganda travel to Malaysia every month, noted Hajj. The subscribers were selected – have seen cross-border roaming Mr Johan Buse, SingTel’s Vice President through a computer-based random charges increase dramatically over of Consumer Marketing. SingTel is selection, on the digital value added the last few years, prompting cellcos partnering with Malaysian network services like the daily devotionals, to demand that the roaming fees Maxis to offer the rate. A Network Islamic quotes, sermons, Islamic songs, should be scrapped. In 2012 Rwanda Lock feature prevents customers prayers, Islamic callertunez and other Utilities Regulatory Agency (RURA) from accidentally roaming onto a spiritually uplifting and faith enriching increased the charges for receiving non-preferred network and incurring contents they subscribed to. MTN was a call to RWF144.3 (USD0.2) from additional charges. at the various Hajj Camps across the the previous charge of RWF59, while country and distributed over 20,000 regulators in Uganda, Burundi and travel kits including bags, money waist Tanzania introduced similar taxes. Calls MTNSlashes Data, Call, pouch, bathroom slippers and free to Uganda and Burundi previously cost SMS Roaming Rates to MTN SIMs card. Over the years, MTN RWF60, which was hiked to RWF120 has continued to go beyond borders in and RWF350, respectively. Saudi Arabia providing exciting innovative initiatives MTN, has slashed its data roaming rates geared at enhancing its customers’ to Saudi Arabia at the most affordable whole new digital experience. In the SingTel offers lower data price of one kobo per kilobyte. The process it has always ensured its roaming rates in Malaysia initiative is part of its effort to ensure subscribers constantly enjoy friendly SingTel customers travelling to that Muslim pilgrims continuously innovative products and services, while Malaysia can now pay similar data rates keep in touch with family and friends engaging them at their passion points as what they enjoy in Singapore under during Umrah & Hajj seasons, through with life-enriching experiences. a new add-on service launched. The access to data services. DataRoam Saver Malaysia (Monthly) Denmark inks roaming 1GB service will give customers 1GB of According to MTN, customers can roaming data in Malaysia at just S$10 also make calls for as low as N30 per agreement with China per month. Any excess data usage minute, send text messages for N20 Denmark and China have signed a will be capped at S$0.10 per MB, the per SMS and receive SMS for free bilateral agreement that will make lowest rate here. Previously, customers while roaming in Saudi Arabia. General it cheaper for Danes to use mobile were limited to the daily data roaming Manager, Consumer Marketing, MTN, phones when visiting China and vice- service (S$15 per day) or the DataRoam Kola Oyeyemi, explained that, the key versa via lower roaming prices. Danish Saver Malaysia (Monthly) 100MB strategic focus for the reduced tariff and Chinese mobile phone companies option, which cost S$5 per month. plans is to ensure that its Muslim will sign a similar co-operation deal Existing subscribers to the 100MB subscribers and other people travelling that will bind them to negotiate

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SAMENA TRENDS _ OCT_2014 lower prices. “Today, it costs a Dane services are beneficial to operators like delayed or cancelled flights, 400-1,200 kroner to stream a three- around the world. In the tariff drawn lost or damaged luggage, including minute video on your cell phone using up to a subscriber the company accidental death or medical roaming in China,” Henrik Sass Larsen, whose SIM-card was purchased gets emergencies. Globe customers can the business and growth minister, an average of 26% and the foreign now avail of the 24 hours of data said in a press release. “That’s far too operator, transmitting traffic via its roaming at only P599 when they are in expensive so I am pleased that we have network (inter-operator tariff) gets Albania, Argentina, Australia, Austria, signed a co-operation agreement with 53% more. Expenditures on service Belgium, Brazil, Burkina Faso, Chad, the Chinese government to reduce and “other expenses on roaming” Chile, China, Colombia, Croatia, Czech roaming prices.” make only 17% and 4%, respectively. In Republic, Democratic Republic of the inter-operator tariff the real costs Congo, Denmark, Dominican Republic, make up only 15%. El Salvador, Estonia, Finland, France, Government moves Gabon, Germany, Ghana, Greece, Supreme Court, appeals Guatemala, Honduras, and Hong Globe flat data roaming Kong. against 3G intra-circle rate now in 75 countries roaming agreements Forty more countries have been added Other countries covered by the The government on Thursday moved to Globe’s coverage of P599 ($13.32) unlimited daily data roaming services the Supreme Court, challenging the daily, flat data roaming rate. The Ayala- include Hungary, India, Indonesia, legality of the 3G intra-circle roaming led telecommunications Ireland, Italy, Japan, Kazakhstan, pacts that allow carriers to offer services firm now has 75 countries in circles where they don’t possess – including popular 3G bandwidth. The government on tourist destinations such Thursday moved the Supreme Court, as Brazil, France, Greece, challenging the legality of the 3G intra- Japan, the Netherlands circle roaming pacts that allow carriers – covered by “worry- to offer services in circles where they free mobile surfing don’t possess 3G bandwidth. The experience wherever development once again casts shadow they are around the on the future of Bharti AirtelBSE -2.96 world,” Globe said. %, Vodafone India and Idea’s 3G By turning on data services in circles where they do not roaming, customers have 3G airwaves but are offering will automatically be it using each other’s’ network. Tata connected to a Globe TeleservicesBSE -1.73 %, Aircel and partner carrier at their Reliance CommunicationsBSE -2.67 current destination to % have also entered into a similar start surfing, checking e-mails, and Kenya, Latvia, Liechtenstein, Lithuania, pact among themselves. In April, the updating on their social networking Luxembourg, Macau, Madagascar, telecom disputes tribunal, TDSAT, accounts. Globe ensures that with Malawi, Malaysia, Malta, Mexico, had overturned the DoT’s ban on the daily P599 flat rate, its 2.1 million Netherlands, Niger, Nigeria, Norway, the 3G intra-circle roaming (3G ICR) postpaid customers will have 24 Panama, Paraguay, Peru, Poland, pacts, saying Bharti Airtel, Idea and hours data roaming access, without Portugal, Qatar, Saudi Arabia, Vodafone’s roaming arrangements for registering with other promos. The Seychelles, Sierra Leone, Singapore, 3G airwaves with each other in circles standardized rate also allows “hassle- Slovakia, South Africa, South Korea, where one of them didn’t possess the free experience” without memorizing Spain, Sri Lanka, Sweden, Switzerland, airwaves was legal. registration keywords, monitoring Taiwan, Tanzania, Thailand, United multiple data roaming rates, and Arab Emirates, Uganda, United tracking different time zones to avail Kingdom, Uruguay, US, and Viet Nam. Terms of cancellation of of the “best” offers. The offer also international roaming in aims to shield customers from bill Cheaper cross-border shock, Coco Domingo, Globe Platinum CIS unveiled Business and Roaming vice president, call tariffs in offing Russia is ready to obtain full abolition said. “In this day and age where Uganda’s State Minister for Finance in of roaming between the CIS countries’ Internet connection and social media charge of privatization, Aston Kajara cellular operators. The Federal are part of one’s travel essentials, we wrote a one page letter to John Antimonopoly Service (FAS) informed find it fitting to expand the coverage Nasasira, the cabinet minister for that it is preparing the amendments to of our default data roaming rate of Information and Communication the international roaming agreements, P599 per day and benefit more users Technologies (ICTs) titled; ‘Proposal to so that mobile operators could lower as they travel abroad for business or Remove Excise Duty on International tariffs for international roaming to a pleasure,” Domingo added. Apart Incoming Calls Originating and level of rates within their own countries. from the expanded coverage, Globe’s Terminating within the Northern In the countries of the Customs Union postpaid customers are automatically Corridor Region.’ According to the (4 out of the 11 CIS countries) it is entitled to enjoy free TravelCare letter, which The Independent has going to happen in 2018. FAS considers insurance. With a TravelCare insurance seen, Kajara made reference to the today’s margin of operators serving package, customers can be covered directive to the Summit of the Northern foreign customers is 85%. According to up to P200,000 ($4,449.53) worth of Corridor Integration on July 3, 2014 in FAS calculations, international roaming protection from travel inconveniences Kigali, Rwanda to partner States to

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SAMENA TRENDS _ OCT_2014 implement the One Network Area ONA on October 8 when the Standard communication/commercial, at the (ONA) by OCTember 1, 2014. This Guage Railway project was launched in partially Ugandan government owned entails removing excise duty on Kampala. But while telecom companies Uganda Telecom - UTL - said the ONA inbound international incoming calls in Uganda have no choice but to could lead to an increase in cross to Uganda from Tanzania, Kenya, implement the ONA, it could be border calls, which means an increment Rwanda and Burundi with effect from another month before actual in revenues as well. “This is a good Nov.01, 2014. “The legal modalities for implementation because they need move not only for the consumers but implementing this decision will be ample time to negotiate with their for the Uganda Telecom as well,” she worked out soon in consultation with counterparts in the region so as to fully said. She said that the ONA is a great the ministry of justice and constitutional implement it. “We are looking at the step in implementing universal access affairs,” the letter reads in part. ONA is end of December as our to ICTs in the region and eliminating an arrangement between the EAC implementation deadline,” Anthony trade barriers. “ICT is a catalyst for partner States - Uganda, Tanzania, Katamba, MTN’s general manager for economic development and as such Kenya, Rwanda and Burundi - aimed at corporate services, told The this is a move in the right direction,” making mobile calls from and to within Independent on Oct. 16.Kenya, Rwanda she said. UTL charges Shs 499 to call the region charged at a lower uniform ahead Their Kenyan and Rwandan Kenya per minute, tax inclusive and rate of Kshs 8.7 (UShs 253) per minute. counterparts didn’t have such excuses. Shs 899 for those calling Rwanda per The aim is to make international and Press reports recently said Airtel Kenya minute, tax inclusive. Busingye roaming tariffs cheaper in a bid to had reduced call rates by 60% and however stated that before the deepen social-economic integration in offered free incoming calls for postpaid government scraps the excise tax, the the region. Some subscribers have and prepaid customers roaming in ONA is not feasible in Uganda. She been paying almost Shs 2, 000 to make Rwanda. Safaricom - the largest said all Ugandan operators agreed to a call to another country in the EAC telecom company in East Africa - is launch the ONA on Dec. 1, 2014. On due to the high roaming charges - but currently offering its customers up to the many opportunities likely to accrue with the ONA arrangement, callers 60% discount while roaming in from the ONA implementation on the should expect friendlier charges. The Rwanda. For Airtel Kenya, outgoing side of telecom companies, Busingye ONA comes at a time when partner calls while roaming in Rwanda are said increased movements of persons States are struggling to practically being charged Kshs 10 per minute, across borders is expected to enhance implement the already signed down from Kshs 25 per minute. The usage of telecommunications services protocols including the Common rates apply to customers making calls by foreigners from within the region, Market and the Customs Union. They from Kenya to Rwanda and customers which would result into higher volumes are currently on a ten-year roadmap making calls from Rwanda to Kenya. hence more revenue. Katamba also intended to implement the Monetary Robert Rwakabogo, MTN Rwanda said it was imperative to remove the Union before thinking of the final stage marketing manager, was positive on tax but was optimistic that theoretically - Political Federation. Under the ONA the initiative, saying MTN had the market would be bigger but arrangement, it was planned that implemented it starting with Kenya. expressed a worry that the arrangement charges for making or receiving calls in Calls to Kenya now cost Frw 60 per could favor big players such as other countries in East Africa [including minute compared to Frw 122, whereas Safaricom in Kenya, which is likely to interconnection charges] would be cut receiving calls, formerly charged at Frw out-compete its smaller counterparts. by more than 60%. But it would vary 51, is now free of charge. He said if Katamba said Kenyan players have from one operator to another. Already, implemented well, it would support higher chances of benefiting from the Kenya and Rwanda have been cross-border trade and free movement arrangement as there are only four applauded for being first to implement of people in the EAC region through players operating in a bigger economy the ONA leaving Uganda, Tanzania and the promotion of easy communication [market] compared to some countries Burundi in their wake. South Sudan is means. He said that roaming charges, like Uganda where there are six players also part of the arrangement but for which have always been a hindrance fighting for a relatively smaller market. various legal reasons it did not make it for many within the East African region, But he also added that operators with like Kenya and Rwanda did. It is would now drastically go down, which presence in almost all markets under expected that by end of December, this he said would stimulate growth in the this arrangement stand a chance of year all partner States should have telecommunications sector. However, building ‘one solid network’ at regional responded positively to the ONA some observers have mixed reactions level, hence giving them an upper arrangement. Earlier in 2007, telecom about the initiative. Some are saying hand to grow their revenues and meet operators in the EAC had a similar on one hand, businesses and callers their targets. Available figures indicate initiative called ‘home-and-away’ are relieved, but on the other, telecoms that Bharti Airtel, commonly known as which ran until 2010 in which customers could lose – which might lead to loss Airtel, a multinational were not charged for receiving calls of jobs and perhaps taxes to telecommunications services company while travelling in EAC countries. governments. Yet already, telecoms say based in New Delhi, India, has the However, because of the need to they are struggling with high costs and edge on the telecom market in the collect more taxes by governments, need government action to support region. Operating in four of the five regulators imposed excise duty on them. MTN’s Katamba said the current EAC countries with a total of 22 million incoming and outgoing calls for tax by government on incoming and subscribers, the telecom operator can people travelling in the EAC. This was outgoing international calls has led to safely be described as a regional temporarily abandoned. Isaac a 15% drop in calls. If this is waived, the network. South African giant MTN has Kalembe, the media relations specialist impact should be positive. “That will be operations in two countries (Uganda at Uganda Communications good for us and our customers,” he and Rwanda) with a total of about 14 Commission (UCC), on October 17 said said. However, Regina Corry Busingye, million subscribers, while Safaricom, Uganda was supposed to launch the the manager-brand and though all its 21 million subscribers are

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SAMENA TRENDS _ OCT_2014 in Kenya has the second largest Communications Diameter Signaling subscriber base. With a total of slightly Router to accelerate the launch of under nine million subscribers, Tigo new LTE roaming services. According Telecom operates in two countries – to Oracle, with the implementation of Rwanda and Tanzania. The French the project which took just 6 months, telecom company Orange operates in NTT can now support roaming on two countries – Uganda and Kenya – LTE bands to ensure subscribers with a total of about 2.6 million, but Yu have access to the same advanced Telecom has more customers (2.8 capabilities while traveling abroad.

million) though it operates in Kenya Oracle Communications Diameter only. Leo Telecom is Burundi’s only Signaling Router was implemented as operational telecom company with 1.8 a virtualized solution providing high million customers, while Tanzania is reliability and advanced functionality Zantel’s only market where it has about with a small physical footprint well two million customers. In Uganda and suited to support LTE roaming. The Rwanda, MTN is the market leader, solution also provides centralized while Airtel leads in Tanzania followed routing, traffic management, and by Tigo. Kenya appears to have the load-balancing tasks to enable the highest penetration rate (76%) LTE network to grow incrementally to followed by Rwanda’s 63.5%, Tanzania’s support increasing service and traffic 58.6% and Uganda’s 45.6 %, while demands. Burundi lags behind with slightly over 21%. Indeed, with an average penetration rate of just 52%, experts say the EAC telecom market is still virgin and the prospects for growth are enormous. Whether or not the ONA will spur growth in penetration rates across the region is what remains to be seen.

NTT DOCOMO Deploys Oracle Communications Diameter Signaling Router for LTE Roaming NTT DOCOMO, the leading wireless communications service provider (CSP) in Japan with more than 63 million subscribers has implemented Oracle

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of age; a generation that is driven by a love of technology as a tool for self- empowerment. Web 2.0 technologies along with ubiquitous broadband will be universally available to these populations For a in the not-so-distant future. Technologies such as 4G LTE, cloud computing, and more intelligent business applications Better Connected World will be used by these communities to leverage enormous amounts of data both at the home and in the office. As our physical and digital worlds The forthcoming digital industrial era is continue to converge, information and bringing people, ideas, and businesses communication technologies (ICTs) have closer together and in ways never imagined become the new engine that propels our before. SAMENA Trends magazine world forward, having a profound impact catches up with Mr. Shi Yaohong, Middle on our daily lives. East President of Huawei—the world’s leading information and communications Pillars of Future Industry Value technology company—on how upcoming transformations within the industry will In this time of rapid population and contribute to building a better connected industrial shifts, what priorities will we Middle East. have to focus on when building this better connected world? We believe that the key Today we live in a dynamic era where opening up this new digital industrial era technological progress is revolutionizing in the Middle East will require delivering how we work, learn, entertain, and live. on three value propositions. These are People increasingly expect high-quality ubiquitous broadband, agile innovation, connections anytime and anywhere to and creating more inspired experiences. bring their world closer. An important part of this historical process is creating Ubiquitous Broadband initiatives that build a better connected world. From laptops to smartphones, tablets, and wearable tech, a wide variety of What will a “better connected world” innovative gadgets are cropping up in all look like for consumers and businesses corners of the globe. Devices will become in the region? For one, the human race increasingly diversified in the next 3-5 is quickly becoming an urban race. The years. This in turn is building a culture in world’s population of city-dweller has which people want to go online anytime Host Mr. Shi Yaohong increased to more than 50% in modern anywhere, but also via any device. Against Regional President times. In this city-centric world, we see HUAWEI this backdrop, reliability and security that approximately 35% of our 7.2 billion have become essential requirements. ICT global population is below 20 years networks must also become broader and

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smarter to ensure smooth multimedia The evolution of mobile broadband also seeing enormous benefits as pilot interactions amongst the public. has been particularly significant as e-classroom programs are successfully the foundation for more intelligent rolled out; enabling top professors to Agile Innovation and connected cities of the future. conduct classes remotely using the In many Middle East countries, more latest video conferencing systems. The region’s ICT industry is still than 75% of people now live in cities. The benefits of inspired experiences innovating rapidly. Emerging trends Populations in the Middle East are also are further being delivered to such as the Internet of Things, growing rapidly, with the number of consumers within the Middle East. e-Commerce, and digital media cities with more than 1 million people Regional consumers are recognized are driving a change in traditional increasing substantially over the last as early-adopters of handheld industries. This is seen in nearly decade. Addressing this population’s technology with a clear enthusiasm every sector from healthcare to demand for speedy, bandwidth-heavy for the latest devices. The demand transportation, education, government ICT services, operators have not only for powerful mobile connectivity has and finance. Enterprises in these begun powering advanced 4G LTE moved computing devices from our industries will need to strengthen their mobile broadband systems, but are desktops to our laps, then to our information-analysis capabilities to now extending that connectivity hands, and now technology is even gain an insight into future business through second and third-phase being fashioned to our bodies. Recent opportunities. New ICT solutions in deployment programs. research from International Data the areas of unified communications, Corporation (IDC) tracked record high security, and networking are enabling Individual enterprises have also made shipments in the global smartphone enterprises to introduce products & a monumental shift of their approach industry in Q2 2014, with the wearable services to the marketplace in a much to agile innovation. In sectors such device market anticipated to reach a faster and more efficient way. During as the oil & gas industry, new ICT total of 19.2 million units in 2014— this process, ICT is transforming solutions are enabling local oil more than tripling last year’s sales. from a support system to an actual companies to transmit data related production system.

Inspired Experiences

To learn, work, and live more conveniently, people expect services to be easy-to-use with zero wait time. New research into the areas of video, audio, touch control, and user- centric designs (UCDs) will in future provide individuals with a consistent multimedia experience across screens. In addition, it will be important for the ICT industry to provide high- quality and easy to maintain handheld devices. These devices will ultimately allow people around the world to communicate and share information more freely while enjoying the inspired experiences of technological progress.

From Vision to Reality

The Middle East has by all accounts maintained its global reputation as being home to one of the most dynamic and vibrant ICT markets to oil production in real-time in a Taking all of these factors into account, worldwide. Forward-thinking highly secured network environment, expectations from ICT infrastructure government authorities and telecom boosting oilfield production efficiency. will only rise in the coming years. operators continue to advance strong In a growing Middle East hospitality By pursuing ubiquitous broadband, policies that create greater alignment sector, the virtualization of IT assets agile innovation, and the creation of of ICT standards as well as economies through software-defined data centers more inspired experiences, businesses of scale for cutting-edge solutions. are giving hoteliers greater freedom across the Middle East can prepare for Coupled with the transition of the to align their architecture across many a more sustainable and ever-changing wider region from a resource-based to different properties and to deploy IT future. a service-based economy, now is the upgrades quickly & easily without time in which ubiquitous broadband, investing in physical hardware projects. agile innovation and inspired The region’s education landscape is experiences are set to become a reality.

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Technology NEWS

3Tbps fiber speed achieved we’ll be able to maximize the efficiency of BT’s existing investments, extending through BT/Huawei the life of our core network infrastructure whilst continuing to meet the needs partnership of a 21st Century digital society.” Telecommunications giant BT has TelecomsTech previously reported on achieved a blazing 3Tbps speed through a another partnership between BT and partnership with Chinese network vendor, Huawei on G-Fast technology which Huawei. The two companies believe recent tests have achieved 800Mbps over this speed is the fastest which has been the (relatively) cheap and widespread achieved - outside of controlled lab tests copper infrastructure which most homes - and uses existing fiber and commercial have installed. Consumers are demanding hardware. The record-breaking greater speeds as bandwidth-intensive transmission was conducted using a applications such as Cloud services Technology 359km fiber link between BT’s Adastral and streaming 4K video become more Park research campus in Suffolk and the BT pervasive across the UK. BT has invested Updates Tower in London. To crank the speed up, billions of pounds in its network, with the two firms used an advanced ‘flexgrid’ additional funding being provided by infrastructure which increases the density the government through the Broadband of channels. Under current circumstances, Delivery UK (BDUK) initiative the gap between transmission channels is 50MHz. When this is compressed to 33.5GHz the cables become 50% more Samsung achieves WiFi efficient which results in faster speeds. BT also held the previous speed record, of data travel feats for 60GHZ 1.4Tbps, but this was in partnership with band Alcatel-Lucent and used gaps of 35GHz South African mobile operator Vodacom over a 410km fiber link instead. “Flexgrid Samsung Electronics has announced technology is evolving quickly, and this trial has been invaluable in demonstrating advances in WiFi technology. Samsung the feasibility of this emerging technology said it found a way to make Wi-Fi data in a real, truly testing environment,” says travel faster than it does currently. Neil J McRae, chief network architect Specifically, Samsung said the new at BT. “Combined with BT’s continuing technology enables data transmission investment in its network infrastructure, speeds of up to 4.6Gbps, or 575MB per this outstanding breakthrough suggests second, a fivefold increase from 866Mbps, we’re well-prepared for a future where or 108MB per second, which the company new and exciting services are delivered said was the maximum speed possible by faster, more data-hungry applications. with existing consumer electronics “The trial result also demonstrates how

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devices. Eventually, consumers will commercially adopting 60GHz WiFi provide the capacity to support high- see the results of these efforts within technology,” said Samsung. The amounts of data traffic in suburban various connected devices. BBC News company enhanced the overall signal areas where the infrastructure said the faster WiFi could make it fast quality by developing micro beam- exists and therefore requires little forming control investment. “In a technological technology, landscape that is constantly growing, which changing and developing, it’s good optimizes the to take a step back and evaluate communications existing infrastructures,” Cooke said. module in less He continues: “It is important not to than 1/3,000 ignore the properties and capabilities seconds, in of what is already in place. Rolling case of any out the next big technology does not changes in the mean investing vast amounts in fiber communications just because the market demands environment. seem to say so. There are some very Devices built to exciting technologies that really use the 60GHz stretch copper’s capabilities.” Despite WiFi standard not calling it out directly, one of the are not expected new technologies Cooke is referring immediately to is sure to be G.FAST which we’ve but Samsung discussed here on TelecomsTech in is looking to the past. There is a high-degree of the future. excitement around the innovation; Samsung said with early tests showing a lot of to stream movies from phones to that “the 60GHz is an unlicensed potential... In “real world” tests, BT TVs and other displays. A 1GB movie band spectrum across the world, reported downstream speeds of will take less than three seconds and commercialization is expected around 800Mbps alongside upstream to transfer between devices, said as early as next year.” The company speeds of more than 200Mbps. Samsung. Samsung Electronics refers intends to apply the new technology Bell Labs is working on a spin-off to the development as its “60GHz WiFi to products which include technology called XG.FAST which technology.” The company’s engineers audiovisual, medical devices and achieved an incredible 10Gbps (albeit worked on WiFi that operated in the telecommunications equipment. in a controlled lab test under ideal 60GHz band, whereas current Wi- Samsung said, “The technology will conditions. According to Genesis, one Fi systems use 2.4 and 5GHz bands, also be integral to developments of the key problems with small cells said the BBC. This is news in itself, as relevant to the Samsung Smart is the amount of fiber that is needed Samsung has successfully overcome Home and other initiatives related to support the cells which increases some barriers to the commercialization to the Internet of Things.” Gigaom the cost. Considering each small cell of the 60GHz millimeter-wave band commented on the announcement. deployed needs to make a profit, WiFi technology, said Kim Chang Yong, “Samsung’s technology appears to they are often seen as too expensive Head of DMC R&D Center of Samsung be interoperable with other WiGig to deploy. “Revolutionizing existing Electronics. In the press release, the products. Based on the IEEE’s 802.11ad copper by using a bonding solution company said, “Unlike the existing standard, WiGig is being groomed is one of the least expensive backhaul 2.4GHz and 5GHz WiFi technologies, by the WiFi Alliance as an extremely options available. It provides a great Samsung’s 802.11ad standard 60GHz fast but short range complement to opportunity for fixed incumbents to WiFi technology maintains maximum traditional WiFi.” become mobile players by using the speed by eliminating co-channel existing copper network to provide interference, regardless of the number backhaul bandwidth and power to of devices using the same network.” Genesis advises small cells.” Copper is the solution to “Samsung has invented a No- operators to “turn infrastructure issues, now if operators Interference, 60GHz WiFi,” said the will listen. Windows IT Pro headline. Rod Trent copper into mobile of Windows IT Pro wrote that “the gold” Li-ion Batteries Contain 802.11ad technology also maintains Japanese telecoms giant NTT The maximum speed by eliminating co- rise of fiber cables was thought to Toxic Halogens, but channel interference. If you’ve worked have made copper obsolete when Environmentally Friendly with WiFi for very long, you know it comes to telecommunications that speeds can vary because the infrastructure, despite being more Alternatives Exist signal is constantly negotiating with widespread and costing less. That Physics researchers at Virginia other technologies in the near area industry assumption is now changing Commonwealth University have that are utilizing the same channels.” as impressive new technologies take discovered that most of the electrolytes According to the BBC News report, copper off life support and brings used in lithium ion batteries commonly engineers were able to address some it back harder, faster, stronger. At found in consumer electronic devices technical problems that had restricted the Broadband World Forum in are superhalogens, and that the vast the transfer of data at well below its Amsterdam, Genesis’ President and majority of these electrolytes contain theoretical limit. “Until now, there CTO Stephen Cooke told attendees toxic halogens. At the same time, have been significant challenges in that bonded copper solutions can page_55 page_56 TECHNOLOGY UPDATES TECHNOLOGY UPDATES

SAMENA TRENDS _ OCT_2014 SAMENA TRENDS _ OCT_2014 the researchers also found that the not done any work on Li-ion batteries electrolytes in lithium-ion batteries at the time, but I was curious to see (also known as Li-ion batteries) what the current electrolytes are,” he could be replaced with halogen-free said. “I found that the negative ions electrolytes that are both nontoxic that make up the electrolytes are large and complex in nature and they contain one less electron than what is needed for electronic shell closure.” Jena had already been working for more than five years on superhalogens, a class of molecules that mimic the chemistry of halogens but have electron affinities that are much larger than that of the halogen atoms. “I knew of many and environmentally friendly. “The superhalogen molecules that do not significance [of our findings] is that contain a single halogen atom,” he one can have a safer battery without said. “My immediate thought was compromising its performance,” first to see if the anionic components said lead author Puru Jena, Ph.D., of the current electrolytes are indeed distinguished professor in the superhalogens. And, if so, do the Department of Physics of the College halogen-free superhalogens that we of Humanities and Sciences. “The knew serve the purpose as halogen- implication of our research is that free electrolytes? Our research proved similar strategies can also be used that to be the case.” to design cathode materials in Li-ion batteries.” The article, “Superhalogens as Building Blocks of Halogen-free Electrolytes in Li-ion Batteries,” by Jena, postdoctoral researcher Santanab Giri, Ph.D., and then-graduate student Swayamprabha Behera, Ph.D., will appear in a forthcoming issue of the chemistry journal Angewandte Chemie International Edition, which has posted the study online. Jena said he hopes that the article’s findings will lead to production of safer, less toxic batteries. “We hope that our theoretical prediction will stimulate experimentalists to synthesize halogen-free salts which will then lead manufacturers to use such salts in commercial applications,” he said. The researchers also found that the procedure outlined for Li-ion batteries is equally valid for other metal-ion batteries, such as sodium- ion or magnesium-ion batteries. Jena became interested in the topic several months ago when he saw a flyer on Li- ion batteries that mentioned the need for halogen-free electrolytes. “I had

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draining billions of dollars of value from The the industry. To measure and better understand how commoditization is impacting the Great Telecom Escape mobile industry, we developed a national commoditization score based on two independent variables—the difference Commoditization is sweeping across between the market shares of the the global mobile telecommunications largest and smallest lowest players in a industry with implications for corporate market and the difference in the highest and investment performance. In many and lowest average revenue per user countries, customers view mobile product (ARPU) in the market. We then mapped and service offerings from different the degree of commoditization among operators as interchangeable—no more 122 countries. In 2012 most countries distinctive than other commodities (52 percent) are either commoditized such as beans or gas. And the mobile or on-the-edge of commoditization. industry is making matters worse. The remainder maintain some level of When competitors cannot differentiate differentiation, but we believe many of themselves with products or services, these are likely to move down toward they often just differentiate with price, commoditization in short order.

David Tusa Milind Singh Ming-Chyuan Chan Partner Principal Associate Strategy& Strategy& Strategy&

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As part of our research we also is to provide market-par service at the or making the most of it. Each plan developed a commoditization index lowest possible price point without requires business leaders to think to examine commoditization trends triggering a price war. about their markets anew, to be by region. We found that the level of nimble, and to consider how they can commoditization in North America To maintain the lowest cost operating position their companies to succeed and Europe to be similarly high, and model, companies need to make use of over the long haul. Those who do similarly stable. However, other regions self-service technologies, aggressive not respond in some coordinated stood out for their very divergent business process outsourcing, fashion to the commoditization threat commoditization trends. Africa’s network asset securitization and will most likely experience a steady commoditization index saw 18% contracted network maintenance. On decline. compound annual growth from 2009- the regulatory front, the operators 2012, bringing it in line with the level should engage with regulators on of commoditization in the Asia-Pacific issues such as active and passive region. Interestingly, however, the radio access network sharing, rights Middle East saw its commoditization index fall in 2012 after 7% growth from 2009-2011, as operators retreated from pricing convergence and instead stressed innovation based on products.

This tells us is that commoditization is not irresistible. While commoditization has a strong gravitational pull, operators can loosen its grip. With this in mind, we have identified three strategies that telecom companies around the world have used with some success to drive sustained differentiation. We call these commoditization escape plans.

The first plan, “escape and challenge,” involves investing in new technologies and customer engagement tools, such as in 4G LTE and gamification. This investment helps build an agile operating model that can create of way simplification and simplified different products and services for ownership transfer procedures for different customer segments, thus base stations sites. establishing new revenue streams. Operators such as T-Mobile in The third plan, “consolidate to Germany, SingTel in Singapore, and scale up,” involves growing through Vodacom in South Africa have used partnerships or acquisitions to this plan successfully to increase ARPU. gain scale and efficiencies, reduce marketplace fragmentation, and “Escape and challenge” requires that increase ARPU. For example, operators operators cooperate internally across can expand network and availability by multiple stakeholders to keep the combining coverage footprints, and focus on products and services, pursue reduce average marketing costs per advanced customer segmentation, subscriber by harmonizing brands. and nurture alliances with strategic partners. It also requires coordination To make this plan work, operators must with regulators to quickly identify rival manage cultural and organizational operators who flout rules that unfairly integrations adroitly, and pursue tilt the playing field. headcount efficiencies with some finesse. Communicating with The second approach is to “accept regulators is also important to head and adapt”—to face the reality of off any anti-competitive controversy commoditization and make the when making an acquisition or best of a bad situation. Operators agreeing to a partnership. using “accept and adapt” focus on increasing market share instead of Commoditization is a serious threat ARPU, providing the same services as to most mobile operators around the the rest of the market but for far less. world. However, there are ways to cope, The key to making this strategy work either by escaping commoditization

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Global trends and drivers Mobile network infrastructure sharing is not new. It has been around for decades in one form or another, starting with national roaming and bilateral site sharing – usually encouraged or mandated by regulators to help new entrants. Three clear trends are emerging:

• Network sharing joint ventures (JVs) between mobile network operators (MNOs); whereas site sharing started off in many markets as a mutual exchange involving a small percentage of sites, a JV can go much further to maximise the number of shared sites and cost savings, typically 25-40%; furthermore the scope of sharing has been extending from “passive” to “active” and, in some cases, to spectrum sharing (Figure 2). • “TowerCo” deals where an operator sells its towers to a third party and leases them back or forms a joint venture; the majority of these transactions have been in Africa (almost 40% of all towers by end- Is mobile network infrastructure 2014) but similar deals are now taking place on all continents; consequently TowerCos are attracting considerable sharing about to take off in Private Equity investment given their long-term secure cash flows and growth prospects. SAMENA? • In-market consolidation; undoubtedly discussions about Worldwide, network infrastructure sharing are leading some sharing agreements have grown 200% shareholders to be more radical and in the last five years (Figure 1) and yet, consider consolidation; Coleago with the exception of passive sharing in believes that most markets will end some of the South Asian markets, this up within the next five years with global trend has hardly touched the only three mobile operators and SAMENA region. Coleago believes this two (shared) radio access networks situation will change rapidly over the (RANs). next five years. Given that there is a first- mover advantage, or at least a last-mover Software-Defined Networking (SDN) and disadvantage, operators better prepare Network Functions Virtualisation (NFV) their strategies and start work soon. are emerging technology developments Regulators would also be well-advised that might enable and encourage deeper to develop their policies in advance in sharing in future depending on how consultation with the operators and competition authorities.

Chris Buist Director Coleago Consulting Ltd

Figure 1 – Number of Network Sharing Deal Announcements page_60 page_61 TECHNOLOGY UPDATES TECHNOLOGY UPDATES

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standards and OEM products/services • Costs: of the shared network • Mergers in markets where evolve. should be fair and economic. there are four or more mobile Regulators differ considerably operators today, such as Pakistan regarding their position on spectrum and Bangladesh pooling and geographical limits. We • Backbone transmission JVs expect that the attitude to spectrum between non-incumbent pooling will relax over time as the operators, also enabling some demand from operators to release mobile operators to enter the more spectrum increases. FTTx market. However spectrum pooling is unlikely Most regulators currently object to to gain ground for some years except sharing core network elements as in a few isolated cases. this is where much of the competitive differentiation resides. Next steps If the reader accepts that operators will CMS, one of the market-leading law come under the same cost pressures firms in the communications sector, as elsewhere, then there is no time to has recently published its first annual lose because there is clear evidence of Figure 2 – Network Sharing Scope Options study on network sharing in Europe a first-mover advantage, or at least a and, in particular, its views on the last-mover disadvantage. For passive MORAN: Multi-Operator Radio Access Network MOCN: Multi-Operator Core Network regulatory aspects. The report is or active sharing JVs, it is better to GWCN: Gateway Core Network available through its website: www. choose your preferred partner than cmslegal.com. be handed a partner by default or, in What is driving the huge increase the case of a three-player market, left in sharing and tower sales? EBITDA Our forecast for SAMENA with no partner. In the case of tower pressure is the predominant driver, be Many markets in the SAMENA region sales, information from completed it as a result of revenue competition have lagged Europe in terms of deals shows that the first to market (new entrants, MVNOs or OTT players), coverage/technology roll-out and will command a higher price than the regulators reducing termination rates market penetration. However the followers. or international roaming fees (Europe), launch of LTE has been the “burning or the rapid increase in mobile data platform” for numerous network Operators better prepare their traffic. The latter is possibly the most sharing deals and we expect that the strategies and start work soon. significant with data traffic forecast to same will hold true, particularly for Coleago’s approach (Figure 3) is double every two years. the South Asian and North African applicable regardless of the sharing countries. option selected. It is designed to work In many emerging markets, sharing is as well for a tower sale as it does for an also being driven by limited spectrum LTE creates two major cost pressures availability or government ambition to for an operator. Initially it usually improve rural broadband services. requires a major capital investment in licence/spectrum fees, network The regulatory perspective elements and transmission with a Regulatory attitudes and policies commensurate increase in operating regarding sharing differ from market costs. Later, as take-up increases, LTE to market. A few telecommunications users consume two to three times the regulators have published guidelines amount of data compared to 3G users, for network sharing but they are in incurring further capital and operating Figure 3 – Approach to Network Sharing the minority. Most regulators state expenditure but with limited revenue that sharing will be considered on a upside. active RAN share with another MNO. case-by-case basis. Depending on the For further details, visit our website: sharing scope, the competition (anti- As operators in the region start to www.coleago.com. monopoly or anti-trust) authority may experience the same EBITDA and also need to approve a proposed deal. free cash flow squeeze as elsewhere, Typically, it takes between 9 and 15 network infrastructure sharing will months from project initiation to the Typically, regulatory authorities start to take off. The only exceptions end of the transition depending on the apply the following principles when might be duopoly markets such as sharing option, regulatory approval(s), evaluating proposals: Lebanon, Oman and UAE. the need to transfer assets and the • Competition: should not be willingness/ambition of the partners. adversely affected by the network In all likelihood the region will Site rationalisation usually takes a sharing eventually end up with a similar mix of further two to three years to deliver all • Control: operators should retain sharing types as elsewhere. We expect the savings. independent control of software to see: and parameters in the shared • Existing bilateral site sharing Regulators would also be well-advised network metamorphose into passive to develop their policies in advance, in • Information: operators should or active sharing JVs between consultation with the operators and not exchange competition- operators competition authorities, as it speeds related data beyond that needed • Tower sales before, during or after up the process when the inevitable to design, build and operate the the creation of passive/active requests are received and reduces risk shared network sharing JVs for the potential dealmakers. page_60 page_61 TECHNOLOGY UPDATES TECHNOLOGY UPDATES

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Digital Services: Partnering is Key to Success

Today’s mobile operators are faced by As these traditional revenue streams threats from not only their competitor decline, mobile operators must find new Telco but from global and start up sources of revenue in order to remain internet companies. The competitive competitive within the industry. Mobile landscape is becoming increasingly operators have access to an oilfield populated by internet companies who of technology and personal data that have the ability to diminish the operator’s can be exploited with the consumer’s Voice and SMS margins through alternate permission and monetised through service offerings. Mobile consumers the implementation of Digital Services. around the world have swiftly embraced Introducing Digital Services in addition Over-The-Top (OTT) applications, which to their core offerings will give operators have now evolved into a major threat to the competitive advantage that will allow operators causing them to suffer from them to create new innovative revenue both revenue and brand erosion, with streams. the impact spreading throughout the telecom value chain. Forward-looking mobile operators have been reconsidering their business Strategy Analytics has predicted that models for several years. Within that mobile operators could lose over $3 business model they have realised that billion in mobile messaging revenues attempts to quash the threat of OTTs will alone in the next five years . This not be achieved by blocking their apps illustrates the urgency with which or by stimulating usage of traditional operators need to revolutionise their services. For most, the answer lies in service, delivery structure and approach partnership, including the offering of to regulations. However they are facing mash-up / combined services. In a recent a tough challenge, as OTT players are Telecoms.com survey , 93% of operators adaptable and willing to experiment, surveyed said they believed that there is Amelia Power whilst arguably making better use of value for them in partnering with OTTs in Head of Sales and Marketing consumer data to improve services. the digital ecosystem. SLA Mobile

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The majority of traditional businesses procedures and regulations that deliver and deploy a risk free service. are trying to figure out how to use internet companies find difficult to This team will provide 24x7 Managed technology to reach more customers work with. These working methods Service support which means the and to distribute goods and services have the ability to slow down the operator will not have to worry about at lower costs. In this new digital pace of the project causing frustration employment resources to manage ecosystem, the successful mobile between both parties. the service. The operator will also operator will be the ones who are benefit from innovative commercial culturally and technologically agile One way of overcoming this issue is engagement models that will reduce whilst being fast moving, highly to bridge the cultural gap between capex and facilitate revenue share. efficient and customer-centric. These mobile operators and Internet operators will now how to partner in companies by introducing a third Through a managed service approach order to deliver the services that their party digital services provider who mobile operators can safely open their customers want. manages the entire process from data and leverage the API Economy building a robust ecosystem of new digital services that will create new revenues. Operators have the ability to open APIs for billing, profile, location etc which can offer partners the ability to introduce new services such as Payment, Identity Management and Personalisation. For example partners can leverage the payment APIs and provide Direct Operator Billing also known as Carrier Billing which allows users to purchase digital and virtual content via their mobile phone by adding the transaction to their post paid bill or using their pre-paid credit. Another example is the utilisation of Identity APIs, the operator has a trusted relationship with its customers and an Identity solution like Mobile Connect can act as an authentication service to allow customers to sign in to third party websites without having to register and create several log ins. This type of service has the ability to lock in customers, reducing churn and increasing customer satisfaction.

Embracing the digital ecosystem can beginning to end. The mobile be a difficult task as it is essential operator’s risk is reduced through for mobile operators to partner with the utilisation of a third party vendor industry verticals and OTT players who who can not only provide a managed traditionally would have been seen as service solution but can bring existing competitors, eroding the operator’s industry vertical relationships and Voice and SMS revenue streams. business models. The operator will Partnering between mobile operators benefit from the providers proven and Internet companies will have its technology solution and their team challenges due to the presence of of experienced employees who will significant cultural differences. Telco’s be experts in the field of integration have in place rigorous processes, and will systematically and coherently

1 Strategy Analytics ‘A Vertical View of Messaging Apps’, October 2013. 2 Telecoms.com, ‘Intelligence Industry Survey 2014’, page_62 page_63 satellite updates

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SATELLITE UPDATES

NSR releases satellite Africa, Namibia, Mozambique, Tanzania, Madagascar, Swaziland, Lesotho, Malawi, operator financial analysis Angola, Zimbabwe, Rwanda, Burundi and report Zambia. The company intends to bring its entire Simplex offering, including Northern Sky Research (NSR) has released the Spot tracking and monitoring its “Satellite Operator Financial Analysis solutions. Together with BBi, Globalstar (SOFA), 4th Edition,” report in which the plans to focus first on the markets of research group finds an increased focus personal assets, commercial trucking, on operational efficiencies is driving both animal tracking, mining, and oil and gas acquisitions and new High Throughput applications. The new gateway will bring Satellite (HTS) payloads being launched. Globalstar’s Simplex and Spot services up The report gives a detailed analysis of to near-global coverage. Avanti Communications in particular, Satellite focusing on the company’s HTS strategy. NSR suggests Avanti could being the fifth E-Networks first in LatAm Updates largest satellite operator in the world if to use O3b’s ‘fiber in the it achieves revenues of $700 million, which the company has stated is possible sky’ thanks to HTS, despite having a small Guyanese internet service provider (ISP) number of satellites in orbit. E-Networks has signed an agreement with O3b to use the company’s ‘fiber in Globalstar Building new the sky’ satellite broadband network, making it the first Latin American Gateway in Botswana for telecoms operator to be introduced Simplex Services onto the O3b system since it initiated commercial operations earlier in this year. Mobile Satellite Services (MSS) provider The satellite service provider, which is Globalstar is seeking to build up its headquartered in Jersey, Channel Islands, presence in Southern Africa by building uses satellites which orbit closer to earth a new gateway station in Gaborone, than geostationary satellites, theoretically Botswana. Broadband Botswana Internet reducing latency, augmenting data rates (BBi) has partnered on the new facility, and improving voice and video quality. which is already under construction and According to O3b, its satellites can is expected to be complete by the end support up to 1.6Gbps in a single beam. of the year. From Botswana, Globalstar Vishok M. Persaud, managing director will be able to extend its reach to South at E-Networks said: ‘We now have the

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SAMENA TRENDS _ OCT_2014 unique ability to offer international on its way to space. What a thrill,” to contend with, RSCC’s expansion plan services to our corporate customers Argentina’s President Cristina Kirchner has become as much of a catch-up either on fiber or O3b or a combination wrote on her Twitter account. The program as one of extending its reach. of both while maintaining low latency. satellite will occupy the 81 West orbital The government-owned company This gives us the most resilient network slot, 36,000 km away from earth. expects to launch the Express-AM7 in Guyana. Access to the O3b network ARSAT-1 is the first satellite of its type and -AM8 satellites in early 2015, also gives us the ability to open up new constructed and orbited by a Latin on Proton vehicles. Proton’s relatively services countrywide where it would American country. It is the product of slow — compared to previous failures otherwise be difficult to have access to seven years of work of 500 scientists. — return to full service following the fiber. This deployment will be used to The cost of the satellite was about May failure has produced a backlog of further enhance our fiber-optic and 4G $250 million, and it will be operational Russian government and commercial data networks.’ The ISP already offers for the next 15 years. The ARSAT-1 customers, the latter managed 4G mobile WiMAX services with data satellite is developed to provide digital through International Launch Services speeds ranging from 1Mbps-5Mbps, television and cellphone services to of Reston, Virginia. The next ILS and in 2013 launched its fiber-to-the- Argentina, Paraguay and Uruguay. launch, tentatively scheduled for late home (FTTH) network. It will also improve telephone and November, is scheduled to be the Internet connections in remote Astra 2G telecommunications satellite regions. Fernandez said that through owned by fleet operator SES of OpenView HD increases ARSAT-1, Argentina joins an “elite Luxemburg. its reach with Intelsat club”, able to build rockets capable of space flight, whose members include tie-up the United States, Russia, China, South African free-to-air satellite TV Japan, Israel and the European Union platform OpenView HD will soon be countries. ARSAT-1 is the first stage of available on the same satellite dish a program by Argentina’s government used to receive channels from rival to orbit a fleet of satellites able to operators DStv, Vivid and Freevision. transmit and relay signals to all of Latin Platco Digital, the nascent platform’s America. A second satellite is planned owner, is now leasing capacity on to be launched in 2015. the Intelsat IS20 satellite located at 68.5° East through an agreement with South Africa’s national transmission Proton Successfully supplier Sentech. This means that any Launches Russian subscribers to the rival TV services wishing to also view OpenView HD Telecom Satellite channels, need only to buy and install Russia’s heavy-lift Proton rocket on a ZAR849 (US$75.9) set-top box. October 22 successfully launched the OpenView HD, which launched in Express-AM6 telecommunications October 2013 with 15 channels, began satellite in the vehicle’s second its direct-to-home satellite service via successful flight since its grounding SES5. A one-off purchase of a set-top following a May failure. Russia’s box and satellite dish was required, but Roscosmos space agency and the after that the service could be received Express-AM6 owner, Russian Satellite without any subscription charge. It Communications Co. (RSCC) of now offers 18 channels, covering a Moscow, confirmed that the satellite range of genres, and including SABC1, was healthy and in the intended orbit. SABC2, SABC3 and e.tv. Maxwell It was RSCC’s Express-AM4R satellite Nonge, Platco Digital’s managing that was destroyed in the May failure, director, said: “We are delighted to be following the August 2011 loss, due to able to increase viewer access to the another Proton failure, of the Express- OpenView HD platform and extend AM4 satellite. Given RSCC’s recent Globecomm Finishes options for TV viewers across South record of satellite losses, RSCC Chief Africa. The IS20 offering will make Executive Yuri Prokhorov said the VSAT Network in Iraq it easier for the consumer pocket, as Express-AM6 launch was perhaps “the Globecomm, in partnership with those with existing satellite dishes will most-anticipated event of the year in a top Iraqi telecommunications not need to purchase new ones”. the satellite industry.” Express-AM6 provider, has completed a 158-Mb will be operated at 53 degrees east VSAT network that will support oil longitude to serve western Russia, the and gas exploration. A European- Argentina successfully Urals, western Siberia and parts of the based client will use the network to launches its first telecom Middle East, Europe and Africa. It was connect its main exploration site, built by ISS Reshetnev of Russia, with which has more than 5,000 residents, satellite the 72-transponder C-, Ku-, Ka- and along with other locations. The Argentina has successfully launched L-band transponder payload, featuring connectivity solution also includes its first domestically designed 11 antennas, provided by MDA 100-MB terrestrial microwave links. and developed geostationary Corp. of Canada. The satellite’s total The managed service was installed by communications satellite Thursday, throughput capacity, RSCC said, is 2.7 an Iraqi telecommunications supplier, USA Today reported. “ARSAT-1 is gigahertz. Given the failures it has had and includes a Cisco call manager

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SAMENA TRENDS _ OCT_2014 telephone system that terminates calls 1,500 kg to a 700-km circular orbit. - 1a, 1b, and 1v - have been launched. at Globecomm Europe’s Netherlands Arianespace has conducted three Rockets of the Soyuz-2 series replaced teleport. The completed dual-path successful Vega launches to date and Soyuz-U launch vehicles used at network provides redundancy for voice, has nine missions signed. Plesetsk from 1973 to 2012. Over this data and broadband connectivity. The period, a total Iraqi telecommunications supplier of 434 Soyuz-U was contracted to provide all local boosters were technical support to the oil exploration launched to company. put into orbit about 430 spacecraft. Iridium Inks M2M The Soyuz- Agreement with Trimble 2.1a carrier rocket was Iridium has signed an agreement developed by to provide Machine-to-Machine the Progress (M2M) services to Trimble for its Rocket transportation and logistics business. and Space The partnership helps Trimble expand Centre and coverage of assets beyond North is equipped America to include Europe and other with upgraded parts of the world. Iridium’s M2M digital control business has swelled to comprise and radio- more than one-fifth the company’s telemetric commercial service revenue, growing systems at a Compound Annual Growth Rate and unrated (CAGR) of 36 percent since 2008. Two engines of other Trimble companies, PeopleNet the first and and Geotrac, have been long-time second stages. customers of Iridium.

ISRO Launches IRNSS C Navigation Satellite Russian Meridian Intelsat Reports Third The Indian Space Research Satellite Makes For Space Quarter Earnings Organization (ISRO) launched the Intelsat reported its total revenue for A Russian Soyuz-2.1a carrier rocket third satellite in the Indian Regional the three months ended September with a Fregat upper stage and a Navigation Satellite System (IRNSS) 30, 2014 at $608.6 million. The Meridian communications satellite aboard a Polar Satellite Launch Vehicle company’s Earnings Before net has been successfully launched (PLSV). The 1425kg IRNSS C satellite Interest, Taxes and Depreciation and from the Plesetsk space port. “The launch marks the sixth time the PSLV Amortization (EBITDA) was $477.8 airspace defense forces’ operational has flown in the XL configuration, million, or 79 percent of revenue, unit successfully launched the Soyuz- and the 27th successful consecutive and adjusted EBITDA was $485.3 2.1a medium-class carrier rocket with mission. The space agency has taken million, or 80 percent of revenue. a Meridian communications satellite control of the satellite from its master Intelsat saw decreases in revenue from the Plesetsk cosmodrome,” control facility in Hassan, Karnataka, across network services, media and said Colonel Alexei Zolotukhin, a and will soon conduct four orbit government sectors. Compared spokesman for the Russian airspace maneuvers to move the satellite from to the third quarter 2013, network defense forces, adding that the rocket an elliptical orbit to Geostationary services declined 4 percent, media 3 had been blasted off in a regular Earth Orbit (GEO). percent and government 20 percent. regime. He also stated that the Fregat Of the company’s 2,150 station-kept upper stage with a Meridian dual- transponders, the fill rate was 75 use communications satellite had Arianespace Purchases percent as of September 30, 2014, successfully separated from the third compared to 76 percent at the end 10 Vega Launchers from stage of the Soyuz-2.1a carrier rocket. of the second quarter 2014. Intelsat The Fregat upper stage will continue ELV attributed this decrease to less use by its mission to put the satellite onto Arianespace has signed a contract with government and African customers. its designated orbit. The Meridian Italian manufacturer European Launch dual-use satellite is tasked to ensure Vehicle (ELV) for 10 Vega rockets. The communication with sea vessels and order will supply enough of the light- ice patrol aircraft along the Northern lift launcher to fulfill Arianespace’s Sea Route. Flight tests of the Soyuz-2 small- to medium-sized satellite spacecraft were kicked off at Plesetsk in missions for more than three years. The November of 2004. Over the ten years first of the new orders is set to enter since then, as many as 18 Soyuz-2 service in 2015. The four-stage rocket carrier rockets of various modifications has a target payload lift capability of

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Held at The Palace Downtown further added that operators need to stay Dubai on 11 October, 2014, the ahead of the innovation curve by capitalizing CMO Summit brought together on breakthrough trends and technologies and telecom industry’s senior disruptive market forces. marketing executives exclusively from SAMENA Council’s chartered members – including leading telecommunications groups such as Etisalat, STC, Batelco, Zain, Orange, Turk Telecom, Ooredoo and VIVA – to share insights on new innovations and opportunities in an increasingly digital world.

Andrew Hanna, CCO of VIVA Bahrain and Chairman of the CMO Working Group (CMOC) in his welcome address talked about the telecom industry and how it has made profound and lasting contribution to societies and economies. He While focusing on the telecom industry’s endorsed the SAMENA’s annual significant contributions to the economic CMO Summit and said that prosperity, social development and global GDP, it’s the only regional platform Ahmed Mekky, CEO of Gulf Bridge International for senior telecom marketers (GBI) said that it’s an industry that responds to to share ideas, experiences ongoing demand for increased connectivity; and best practices. He further he further added that the industry is now at a added that this platform crossroads with trends such as Big Data altering offers telecom stakeholders traditional business models. In this changing a medium to discuss and environment, the CMO Summit provides debate some of the most vital an important platform for telcos to evolve issues affecting our industry. protocols that will align our efforts and allow Andrew Hanna Chairman CMO Working Group He talked about latest trends us to deliver on our promises. On the formation CCO Viva Bahrain in telecom industry including of the Subsea Working Group, he added Big Data and elaborated that that, Subsea Working Group will introduce how these trends are changing innovations and standardizations and encourage the telecom environment. He environment–friendly practices while new

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Executive Committee members will be responsible for taking the Group’s agenda forward. Highlighting the explosion in data traffic, Mac Taylor, Chief Business Consultant, Huawei said that it is yet to be translated into a corresponding growth in revenues for the telecom industry. He further added that, telco messaging is becoming niche and there will be rapid revenue decline as SMS moves to data. The telecom industry is staring at a US$100 billion revenue gap by 2018 because of competition in messaging and voice services from IP- based providers, to plug this gap, telcos need to capitalize on the growth potential of the digital economy and diversify their service offering across customer data. He highlighted market currently is, and where it will be in voice, messaging, IoT, M2M, the importance of strong and future. Focusing on future value generators telematics and other platforms. effective regulatory systems, will allow telcos to free the money they need He expressed his views on the he said these are crucial to to win the value battle. For this, they must digital economy; he said that providing more transparency redesign their value capture strategies and this is one of the 5 areas for and ensuring data privacy seek out analytical market models based on new revenue growth for the and it’s essentially up to the customer behavior and usage. He further telecom industry, with digital organizations to determine the added that the market value model must services growing five times level of privacy they wish to provide answers to key strategic questions of faster than traditional telecom have in place. Making changes convergence and how to change from voice to an existing business to data offerings. model, especially when things are going Thanking speakers, attendees and sponsors well, is never easy but for their support for the Summit, Bocar BA, the cost of not being Chief Executive Officer, SAMENA Council, in proactive can be very his closing remarks expressed his thoughts high. He talked about and said that the best way to enable business, the need of telecom expedite growth, ensure a high level of data companies analysing protection and privacy is to have a strong and identifying regulatory framework in place, collaboration their unused data is essential to negotiate challenges and to and figure out ways capitalize on the opportunities offered by in which they can emerging trends such as Big Data. He further optimize data usage added, SAMENA is working closely with and data monetization policymakers to help create an environment to broaden their that would allow operators to monetize their revenue streams. digital assets and expand their revenue base. services. While digital economy Lars Riegel, Principal, Arthur opportunities are large, there D. Little Austria who gave is no ‘killer’ market which CSPs presentation on ‘Advanced can focus exclusively on. Analytics-Based Value Nader Henein, Director of Management’ said that most Security for Middle East and telecom operators use value- Africa, BlackBerry focused on the based approaches which do wearable technologies, he said not provide enough insights on that wearable technology will be the overall market value shifts, a key tech trend going forward, Value Management requires wearable tech innovations addressable segments, based are particularly useful in the on actionable parameters and field of healthcare – they can a forward-looking quantitative improve health and save lives. market understanding. He He stressed on the privacy emphasized that in a shrinking issues, he said that it is critical market, it is important that matter facing the industry and telcos allocate their resources to telecom companies must tread where the future is; they must carefully on the issue of selling analyze where the value in the

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New Global Leadership and Growth Dynamics in the ICT Industry

The new leadership of International of ITU Member States and the election Telecommunication Union has been of a significant number of SAMENA formed. ITU, for the next four years, countries in the recent ITU elections, will be led by a new Secretary- which took place in ITU’s Plenipotentiary General, Deputy Secretary-General, Conference, held in Busan, Republic of Director of Radiocommunication Korea, also evidences a global imperative Bureau, Director of Telecommunication to contribute new visions to the digital Standardization Bureau, and Director development process. of Telecommunication Development Bureau. ITU’s Radio Regulation Board Amidst this global leadership and the ITU Council, with the approval transformation, and that too in the fastest of the Member States, have also sector known in human civilization, the undergone membership changes. The expectations of the world economies, act of participation by a large number of ITU’s Member States, have risen, and

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particularly so with regard to access and neutrality, synergies through interoperable characteristics of ICTs to information, guidance, and being collaboration, innovativeness, to realize socio-economic growth able to fulfill digital development efficiency, continuous improvement, -- the ICT leadership imperative goals. This may also be so in light of and transparency. SAMENA Council remains centered on the need to significant contributions rendered also feels that the ITU’s strategic goals, welcome varying views, address new by the outgoing ITU leadership. In which require efforts from all Member digital needs of both developing and the views of SAMENA Council, the States and are centered on achieving developed countries, and to guarantee participation of various countries growth, inclusiveness, sustainability, that collective efforts will be allowed from the South Asia - Middle East and innovation and partnership, to reign in order to ensure mutual - North Africa region (or SAMENA would also meet success if SAMENA benefit. ITU has already been active region) and the election of as many Council is granted greater confidence on many of these important fronts, as ten SAMENA countries to ITU from the regional nations to allow it and much more may still be done to Council, the ITU governing body, is a to pursue strategic goals and market advantageously exploit hand-held regional milestone and evidences the opportunities in the interests of devices, fixed and mobile broadband, regional focus on ICT development regional governments, most of which digital services, and users’ online and the will with which the SAMENA have already accelerated their national social presence and interactions to region anticipates making significant digital development efforts. bring about transformational changes contributions to the global ICT debate in how citizen-centric government and to the evolution of leadership The ICT industry itself and the programs are effectively executed and roles required in the foreseeable industries, or economic sectors, that it how the adoption of digital services digital future of the world. enables directly through technological and applications is accelerated. ITU, innovation and new digital services with direct and active involvement of Turkey, Egypt, Tunisia, Morocco, and applications, are playing an the Member States that have secured Algeria, Kuwait, United Arab Emirates, increasingly important role in nations’ privileged positions within the ITU Bangladesh, Saudi Arabia, and economic growth -- much more so in leadership and management, while Pakistan are the nations that have economies that are already developed accelerating its drive on broadband, secured ten of the forty-eight seats of or are on a fast-track development path. should involve major regional and the ITU Council, giving the SAMENA Many countries have allocated special industry stakeholders, to help tap region a twenty-one percent share funds to accelerate ICT development, into trillion-dollar digital growth in voting power in the ITU governing as is evidenced in Europe, where the opportunities that readily exist in the body. SAMENA Council congratulates regional digital agenda has actively SAMENA region, and beyond. each one of the SAMENA countries on sought high ICT development funding securing such prestigious leadership for the period 2007 through to 2020. opportunities, and expresses its availability and full co-operation to Given the need to accelerate true work with and contribute to the ICT ICT innovation -- especially in view development goals of each country. of high communications technology Such cooperation may help augment coverage around the SAMENA region efforts to ensure ITU’s core values as well as the globe, and granted are understood as being people- many countries in Asia and Africa are centered and service-oriented; striving to harness the power and enabling inclusiveness, universality

SAMENA Telecommunications Council

1 As described in ITU’s FINAL ACTS OF THE PLENIPOTENTIARY CONFERENCE (Busan, 2014), Decisions and resolutions

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