Volume 07 _ Issue 01 _ Jan 2016 SAMENA TRENDS EXCLUSIVELY FOR SAMENA TELECOMMUNICATIONS COUNCIL'S MEMBERS BUILDING DIGITAL ECONOMIES

A SAMENA Telecommunications Council Newsletter

Articles

Mobile money Page 67

Low earth orbit satellite broadband makes a comeback Page 78

Exclusive Interview Prof. Dr. Ensar GÜL General Manager Türksat A.Ş Page 04

The future of satellite broadband and the need for innovative spectrum management solutions

www.samenacouncil.org SAMENA CONTENTS VOLUME _ 07 _ISSUE _ 01_jan 2016 TRENDS

The SAMENA TRENDS newsletter is wholly owned and operated by The SAMENA Telecommunications Council FZ, LLC REGIONAL & MEMBERS (SAMENA Council). Information in the UPDATES newsletter is not intended as professional 08. Members news services advice, and SAMENA Council disclaims any liability for use of specific 15. Regional news information or results thereof. Articles and information contained in this publication are the copyright of SAMENA REGULATORY & POLICY Telecommunications Council, (unless UPDATES otherwise noted, described or stated) 22. Regulatory news and cannot be reproduced, copied or printed in any form without the express 31. A snapshot of regulatory activities in written permission of the publisher. SAMENA region The SAMENA Council does not necessar- ily endorse, support, sanction, encour- 42. Regulatory activities beyond the age, verify or agree with the content, SAMENA region comments, opinions or statements made in The SAMENA TRENDS by any entity WHOLESALE UPDATES or entities. Information, products and 55. Wholesale news services offered, sold or placed in the newsletter by other than The SAMENA Council belong to the respective entity TECHNOLOGY UPDATES or entities and are not representative 59. Technology news of The SAMENA Council. The SAMENA EDITORIAL 03. Council hereby expressly disclaims any 67. Mobile money and all warranties, expressed and im- plied, including but not limited to any warranties of accuracy, reliability, mer- SATELLITE UPDATES chantability or fitness for a particular 69. Satellite news purpose by any entity or entities offer- ing information, products and services in 78. Low earth orbit satellite broadband this newsletter. The user agrees that The REGIONAL makes a comeback SAMENA Council is not responsible, and shall have no liability to such user, with PERFORMANCE respect to any information, product or service offered by any entity or entities 07. The Future of Satellite in this newsletter. The SAMENA Coun- cil’s only liability in the event of errors Broadband shall be the correction or removal of the erroneous information after verification.

Editor-in-Chief Bocar A. BA

Contributing Editors Izhar Ahmad Javaid Akhtar Malik

Contributing Members Analysys Mason Chinguitel (Subsidiary of Sudatel)

Publisher SAMENA Telecommunications Council

Subscriptions [email protected] 04. 80.

Advertising [email protected] EXCLUSIVE SAMENA

Legal Issues or Concerns [email protected] INTERVIEW ACTIVITY Prof. Dr. Ensar GÜL SAMENA Council moderating smart city General Manager and connectivity - providing dense mobile SAMENA TRENDS access to support smart city applications [email protected] Türksat A.Ş @SCWS MENA conference on the 18 Tel: +971.4.364.2700 January 2016 in Dubai, UAE

© 2016 - All rights reserved. SAMENA TRENDS is a trademark of SAMENA Telecommunications Council. EDITORIAL

SAMENA TRENDS _ JAN 2016

The future of satellite broadband and the need for innovative spectrum management solutions

Much more than the technology itself, the coverage and at affordable price structures, such full potential of broadband requires spectrum that fundamental needs of the society can be resources, allocated in a harmonized way, and addressed effectively. From an implementation policy and regulatory support, ensured in perfect point of view, this signifies that Leo satellites, harmony with the needs of the business of organized in constellations consisting of hundreds communication infrastructure development. In of micro units, are on their way to soon beaming the case of satellite services, this is even more the Internet from space. important, given the inherent nature of the services and the resources required to guarantee a When achieved, such micro-satellite based good bandwidth at a good price, and thus a good constellations will target businesses as well as quality of service for the end-user. impoverished areas, respectably addressing high data throughput needs and fulfilling fundamental Even though certainties with regard to the needs such as healthcare and education, both of demand for high satellite bandwidth have still which are now recognizably crucial to contributing to be established in many sectors that could toward economic growth and reducing poverty. It benefit from satellite broadband, satellite is this role in the development of the society, and operators, in their undeniably important role in bringing about socio-economic change that will in global communications, are doing very well become crucial to placing satellite broadband as a in emphasizing on the importance of non- reliable medium of connectivity. It is this essential terrestrial connectivity as a reliable way to address advantage provided by satellite broadband that specific needs - be it for the businesses or for needs to be communicated, effectively. the underserved populations. For the residential customers, or for potential customers in well- For the Leo satellite broadband market to develop, served urban areas, however, the ideal balance in spectrum resources have to be made available. peak demand and cost-effective service delivery This has a clear implication: a close coordination has still to be achieved. To add, applications for and understanding between regulatory bodies and the residential customer for the day-to-day use the satellite operators have to be established, so still have to emerge. This would truly set forth the that the interests of both terrestrial and satellite demand for satellite connectivity. operators are kept in mind. Naturally, this would require advocacy efforts. Moreover, developing Starting in 2010 when the first Geo satellite this Leo-based broadband market also entails high dedicated to delivering broadband was launched investments, and most of such investments are by Eutelsat, and when ka-band spot beam being directed toward the development of reliable technology was implemented to ensure a 20 Mbps switching and linking technologies, and toward download speeds for areas where the spot beams dealing with the complexities that satellite-to- provided coverage, we have come a long way in satellite communication brings about. developing satellite broadband. Among many innovations introduced in satellite broadband, At SAMENA Council, we see a bright future for the technology for reusing frequencies has been satellite operators and for their broadband service developed and is now in commercial use. offerings. We are also proud to witness what some major regional satellite operators, operating in These past developments indicate that the satellite the MEA, Turkey, and the European regions have services industry, with a special focus on the achieved. delivery of broadband services, has been on the path to advancement fairly in line with broadband Another realm of close communication and advancements that have taken place on the collaborative fronts is being constructed to terrestrial front. It is safe to say also that the future advance broadband connectivity in the world and of satellite broadband services lies in being able to achieve digital progress through integrated to guarantee delay-free service with sufficient efforts.

Yours truly,

Bocar A. BA Chief Executive Officer SAMENA Telecommunications Council

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Dr. Ensar Gül was born in 1960, in the Artvin town of Şavşat. He attended elementary and middle school in Şavşat, later graduating from Ankara’s Science High School. Having received his Bachelor’s degree in electrical engineering from Boğaziçi University in 1982, he went on to receive his Master’s degree from Loughborough Prof. Dr. Ensar GÜL University of Technology’s Electronic Engineering Department, and later obtaining his Doctorate’s degree from Sussex University’s School of Engineering, in England. In General Manager this university he worked on his post doctorate, later returning to Turkey in 1991, to Türksat A.Ş serve his mandatory military service. In October of that year he was appointed as Assistant Professor to Uludağ University’s Engineering Department. In 1993 he became Associate Professor in the field of computer software. Professor Dr. Gül was responsible for Marmara University’s Network Infrastructure between the years 1997-1998. Professor Dr. Gül served as an advisor to TÜBİTAK’s (The Scientific and Technological Research Council of Turkey) Marmara Research Center for Information Technology Research Institute, between 1993 and 1997. After departing from Marmara University in 1998 he worked as an expert software engineer, software designer, senior researcher, chief software architect and also as general manager for many communication systems companies.

In 2009, Dr. Gül was appointed as Professor to Marmara University’s Computer Engineering Department.

Between October 2010- October 2012, Professor Dr. Gül served as a member of ÖSYM’s (Student Selection and Placement Center) Board of Directors, as well as, providing his expertise on the renewal of ÖSYM’s data processing system and the development of measurement and evaluation software.

On September 12th 2011, Professor Dr. Gül became a member of TÜBİTAK’s Science Board. On April 21st 2014 he was appointed as Türksat’s General Manager.

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Q. Please tell us the history of Turksat and your achievements in satellite communications. A. Turksat A.S. was founded in 2004. However, the satellite communications activities in Turkey reaches back to 70’s. The first two satellites, Turksat 1A and Turksat 1B was launched on January, 1994.

Turksat 1C was placed into orbit in 1996. After that in 2001 Turksat 2A, in 2008 Turksat 3A, in 2014 Turksat 4A, and finally in 2015 Turksat 4B were launched into space in order to meet communications needs of the market.

Turksat started a domestic satellite program, named as Turksat 6A. Turksat 6A will be manufactured in area covering Europe, Africa, and a Q. What types of cross- Turkey and will be launched in 2019. large part of Asia, Turksat provides stakeholder collaborative solutions to the customers in a initiatives would enable Q. As a global satellite wide scope Turksat supplies the TV broadcasting services with around the adoption of Industry services player and a 600 TV channels. TV broadcasting friendly policies and ensure satellite manufacturer, how provides 85% of Turksat revenues. a sustainable digital future do you view the notion of Turksat also provides VSAT data for you and your peers in integration of terrestrial and communication through the Turksat satellites. Turksat 4B is the first high the satellite industry? satellite communications throughput satellite at KA band A. Projects like satellite and the specific role of started to service, recently. capacity leasing and joint satellites satellite communications could be collaborative initiatives Turksat provides cable TV promoted by satellite operators in Turkey’s smart-country broadcasting services (digital TV, running limited coverage areas. initiatives? broadband Internet, and telephony) Turksat aims to grow via partnerships A. As part of the project for its domestic subscribers through with existing operators and new carried out with Ministry of its cable infrastructure, in Turkey. countries which are willing to start National Education, Internet access their first satellite projects. is provided through Turksat VSAT Finally, Turksat operates terminals for over 5000 schools in e-Government gateway of Turkish Q. What are some of geographical regions lacking of Government and provides IT services, terrestrial infrastructure. Thus, there project management, software the major business areas is no school without connection development to government that satellite operators of and no student who hasn’t been institutions. the SAMENA region need acquainted with Internet. to consider when it comes Q. What new to expansion strategy and Q. What kinds of broadband service competition? telecom operations are initiatives have you A. SAMENA region countries provided by Turksat in launched within the region? shall be able to come together Turkey and the region, A. Turksat carries broadband and create partnerships. High and core areas of services Internet service via VSAT terminals throughput satellites will serve to its corporate clients in Azerbaijan, communication needs of wide rural that Turksat is presently Afghanistan, Turkmenistan, areas. TV broadcasting allows focusing on? Uzbekistan, Georgia, Crimea, tightening links between close A. Turksat has three area of Tajikistan, and Kazakhstan. cultures of SAMENA region. services: satellite, cable and IT. Satellite internet access provided Offering a great deal of through Ka-Band designed for high communications services (i.e. data speed with its spot beam unit voice, data, internet, TV, and can offer downstream data speeds radio broadcasting etc.) over its up to 50 Mbps. satellites in a wide geographical

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scheduled to be launched into space by the end of 2019.

Q. What are your views on spectrum allocation and how can both satellite and terrestrial operators work together to mitigate spectrum issues through collaboration, with the support of an advocacy body such as SAMENA Council? A. Turkey is an active member of international regulation organizations such as ITU, CEPT, ATU. SAMENA members can work together and create a common strategy for their benefits.

Q. How do you view Q. How has Turksat The satellite will provide a your role in realizing smart historically dealt with communication capacity of of 3 Gbps. Ka-Band will offer low-priced cities with sustainable competition, and what role and high-speed internet access. It infrastructure, and your ICT have national ICT policies will provide up to 10 Mbps downlink developmental role in 2016 played in allowing you to and 50 Mbps uplink speed to VSAT terminals. and beyond? innovate? A. With the progress in IP A. 42° East is “hot spot” based technologies, it is possible to orbital position of Turksat for TV Q. What major see all objects connected to Internet broadcasting. Turksat aims to bring contributions has Turksat in the near future. Remote controlled SAMENA TV’s to this orbital position. made to the satellite houses and cities are designed with industry at large? When certain applications like Internet of Things and/or Smart City. We know Q. You have launched do you plan to launch your Turksat 4B on your own how crucial fiber infrastructures are domestic communications to achieve that. We are planning to orbital location on October satellite? expand the cable and fiber Internet 16th, last year. How is its A. Turksat initiated a network, which is presently active coverage area? What new domestic communication satellite in 23 cities, all over the country as services will be provided project, Turksat 6A. Satellite will be a medium term goal. Satellite is manufactured by local companies, a complimentary communication through Turksat 4B? will be owned and operated by media where cable is not feasible. A. Turksat 4B was successfully Turksat. Turksat 6A, is already launched into space on the 17th of October 2015 at Baikonur Cosmodrome in Kazakhstan. The new satellite offers Ku-, Ka- and C band frequencies. Turksat 4B will offer broadcasting services, such as SNG and data communication. Turksat 4B covers Europe, Middle East, Asia and Turkey.

Turksat 4B, Ka-Band will be used mainly for data transmission. The satellite carries a payload of Ka- Band multi-spot coverages. This coverage includes Turkey, Azerbaijan, Philistine, Israel, Lebanon, Jordan, Iraq, Germany, Austria, Czech Republic, Hungary, Slovakia, Pakistan, Kirgizstan, Afghanistan, and Turkmenistan.

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The Future of Satellite Broadband

Data Source: Based on the findings and analysis of Northern Sky Research (NSR)

Research Note: True satellite broadband growth could be realized with the launch of Low-Earth-Orbit satellites. NSR has predicted consumer broadband subscribers may actually reach beyond 6.5 million beyond 2020 and well into 2023. These are the growth patterns expected of GEO-based satellite broadband. The numbers could be much higher if LEO-based high throughput satellite systems were launched; some of which are already planned for launch. With more robust service delivery provided by LEO satellites, and thus with the presence of more bandwidth and better promise of quality of service available, the demand for satellite broadband will increase.

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MEMBERS NEWS

new ground, Windows 10 also manages to remain familiar. With the return and enhancement of the Start menu, users can quickly reach their most frequently used apps, PC settings and customized Live Tiles. Windows 10 also comes with Microsoft announces a number of exceptional built-in apps, arrival of Windows 10 in including Photos; Maps; Microsoft ‘s new music app, Groove; and Movies Jordan & TV. In addition, the New Windows Heralding the arrival of the most secure Store provides for a more streamlined and flexible version of Windows on January download process, allowing users to MEMBERS 31, 2016, Microsoft Jordan officially find and install the apps they need with announced the arrival of Windows 10 efficiency. The most secure version of UPDATES in the Kingdom. During the daylong Windows ever built always-enabled launch event, hosted at Four Seasons updates and enhanced security features Hotel Amman, customers, retailers, help to keep users protected against distributors, media representatives and viruses, malware, and phishing attacks. social media influencers were invited Throughout the launch event, visitors to learn more about the amazing new were briefed on the key features and features, personalized experience and benefits of the latest Windows offering in cross-device compatibility that Windows a series of presentations, illustrating how 10 has to offer. Windows 10 is designed Windows 10 not only fits seamlessly into to be familiar, innovative, productive and users’ lives, but enhances them through secure. Available through free download intuitive, cross-device usage. Showcasing and installed on new devices, Windows its potential productivity and mobility, 10 presents a number of original speakers explained how Windows 10 features, beginning with Windows Hello, enables users to stay active at home or in which allows users to log in securely the office, with access to their documents using fingerprint or facial recognition by phone, tablet or laptop. They also and to be greeted with a smile. Microsoft highlighted the incredible business Edge, Windows’ new browser, allows benefits of the platform, which delivers people to quickly browse, read, mark up reliable up-to-date solutions that provide and share the Web, while Cortana, the room for expansion and development, as personal digital assistant, makes it easy well as exciting multi-tasking capabilities, to quickly find the right information at such as the Action Center, Task View and the right time. While exploring innovative multiple desktops. Guests were also able

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to witness firsthand the speed and the Turkish telco already held 99.9% of by the prestigious ‘Business Today’ ease of use associated with Windows TTNet shares. magazine. Omantel was selected as the 10 by visiting workstations equipped most favored brand within the majority with the latest Windows 10-enabled of categories in the annual survey, laptops, tablets and phones. reinforcing the company’s leading Introducing powerful and versatile position across different customer hardware to unlock new Windows segments. Published in the January 10 experiences, Microsoft Jordan has 2016 edition of ‘Business Today’, recently launched the Lumia 950 and the ‘Best Brands’ survey canvassed 950 XL in Jordan, providing for an Etisalat Group sets more than 1,000 respondents who optimal, innovative mobile experience. industry record for were drawn from a cross section “Running in 192 countries and on Global Mobile Awards of Oman’s business community almost 200 million devices worldwide, and general public, including high Windows 10 has gained an incredible Etisalat Group, the leading profile Company Chairmen, CEOs amount of momentum across the telecommunications operator in and General Managers. The survey globe. This event provided us in Middle East, Africa and Asia, has set sought their opinion on the best Jordan with an excellent opportunity a new benchmark for the industry telecommunications service provider, to ride this wave, spreading by being shortlisted in eleven with results giving Omantel the clear knowledge on what sets Windows 10 categories in this year’s Global lead as the number one telecom brand apart and encouraging its adoption Mobile Awards (‘The Glomos’). The in the Sultanate, preferred in both locally,” said Microsoft Jordan Country range of nominations reflects the the popular choice and management Manager, Hussein Malhas. “Windows leading role Etisalat is playing in the choice categories. Commenting on 10 provides the perfect companion global telecommunications industry the ‘Best Brand’ ranking for Omantel for the Lumia 950 and 950 XL, which and rewards the Group’s focus on in the Sultanate, Omantel CEO, Talal were designed specifically to offer innovation. Nominations include: Al Mamari noted, “We thank all of our maximum mobility, productivity and Best Mobile Cloud Service or App; customers for the trust they place in flexibility. When combined with the Best Mobile Innovation for Emerging us, voting Omantel as the best and groundbreaking Continuum, we have Markets; and Best Mobile Innovation most preferred telecom brand in created a system that seamlessly allows for Health. While delivering for Oman. More than 3 million customers our users to achieve more, improving customers’ is also recognized in the in Oman choose us for a reason. and simplifying their lives by providing short listing for: Mobile Connect Award The confidence they place in us to them with the customizable tools they for Authentication & Identity; Best Use deliver reliable and relevant services need to thrive.” of Mobile for Best Mobile Payment across the Sultanate is something we Solution. Etisalat Group achieved this take very seriously, and indeed, our impressive record despite a record continued growth is strong evidence number of applicants for this year’s of our customers’ trust in our products awards. “Congratulations to all of the and services.” He added, “We are nominees for the 2016 Glomo Awards,” very proud to once again to receive said Michael O’Hara, Chief Marketing this recognition from the Sultanate’s Officer, GSMA. “With more than 930 top business executives and the Turk Telekom brand entries this year – a new record – general public who participated the competition is greater than ever, in this independent annual brand now encompasses Avea, reflecting the tremendous diversity survey. Oman is one of most digitally and pace of innovation across the connected countries in the region; TTNet operations; marks mobile world.” This year’s nominees however our position as ‘Best Brand’ convergence were announced last week with the reminds us to not sit on our laurels, winners to be announced at Mobile and to boldly innovate and invest for Turk Telekom has announced the World Congress, which takes place on the future growth of Omantel and the merging of its respective mobile and 22-25 February in Barcelona. nation. “The ‘Best Brand’ recognition ISP brands Avea and TTNet under also highlighted the strong preference the unified Turk Telekom brand from the business community to select name, logo and website. The new Omantel as their telecommunications logo is already in use, as is the single provider of choice, signaling high levels converged website grouping all fixed of trust given by Oman’s top corporate line, broadband, mobile and pay-TV in the oil & gas, banking, industrial service divisions, while the group also and insurance sectors. Commenting said it would operate a unified call Omantel voted Best on the survey results, Todd Dick, VP of centre and single-brand retail outlets. Corporate Business noted, “Customer Although dispensing with independent Telecom Brand satisfaction is our number one branding, Avea and TTNet will remain Omantel, the Sultanate’s priority and it is the team spirit and distinct legal entities as wholly owned leading provider of integrated dedication of our staff that makes it subsidiaries of Turk Telekom. In August telecommunication services has possible for us to deliver the very best 2015 Turk Telekom became the sole once again been voted the best telecommunications experience for owner of Avea, following the transfer telecoms service operator in an annual every one of our customers in Oman.” of a 10% stake from Is Bankasi, whilst independent brand survey conducted He added, “At Omantel, we have, and

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SAMENA TRENDS _ JAN 2016 SAMENA TRENDS _ JAN 2016 will continue to invest greatly in the and the profound impact it is able expansion and modernization of our to have on people’s lives across the nationwide network to offer customers region, we feel it is our responsibility to the widest choice of tailored telecom publish information that offers insights solutions, the most extensive network into how innovation and technology reach, and the best customer service in general can drastically improve experience. Access to mobile and Zain reveals new living standards.” Gegenheimer broadband services are a key enabler thought-leadership continued, “As with any region in the for economic diversification in Oman, world, MENA faces specific challenges providing a foundation for businesses report, linking innovation that we can overcome collectively to grow and prosper and providing to overcoming regional through our desire of a more enabling the right environment for SME’s to get environment. From Zain’s perspective, their new businesses up and running, challenges our ties to the region run deep, regardless of where they are located Zain Group, a leading mobile telecom and we look forward to continuing across the country”. In 2015, Omantel innovator in eight markets across the to render support and inspiration was also voted as the ‘Most Trusted Middle East and Africa, announces that results in positive outcome Brand’ in the telecom sector in the the publication of its latest thought- to people’s lives even beyond our Sultanate as per the annual brand leadership report entitled, ‘bringing own customer base.” The challenges survey conducted by OER magazine the Future Closer with Innovation: faced by the region include: high in conjunction with the Arab Research Pursuing Innovation as a Means to unemployment (particularly amongst Bureau and maintained its ranking Overcome Challenges in the MENA youth); insufficient economic growth; as the Most Valuable brand in Oman Region’. The report sets about undiversified economies; ongoing since 2010 according to Brand Finance illustrating the indispensable role of socio-economic exclusion and annual survey in cooperation with gulf innovation in achieving sustainable inequality; high rates of displacement Marketing Review magazine. Omantel development and transitioning due to conflict; an innovation deficit; also garnered a number of other towards a knowledge-based economy, and high vulnerability to climate prestigious regional and international from a regional perspective. The report change, to name only some. Jennifer awards in 2015. Investing in the future was revealed and discussed at the Suleiman commented, “Corporate of the nation, Omantel connects even annual World Economic Forum held social responsibility and sustainability the most remote communities of in Davos, Switzerland January 20-23, initiatives represent an integral part 2016, where Zain of Zain Group’s strategy and are Group CEO, Scott taken very seriously at all levels of the Gegenheimer; organization. Our thought-leadership Emre Gurkan, efforts are an opportunity for us to Group Chief review the factors that can aid socio- Strategy and economic development from a Business technological standpoint, and also Development gives us a chance to draw attention to Officer; and the our own efforts given our position as Group’s Head a leading regional innovator.” Bringing of Corporate the Future Closer with Innovation: Sustainability, Pursuing Innovation as a Means to Jennifer Suleiman, Overcome Regional Challenges in conveyed the the MENA Region showcases Zain’s findings of the innovation by providing case studies report liaising with undertaken by the company including: leading political The Zain Innovation Center (ZINC) and economic in Jordan dedicated for the purpose personalities from of building and empowering a more across the globe. vibrant entrepreneurial ecosystem in Importantly the report emphasized Jordan; The Zain Great Idea challenge the Sultanate to each other and with the role of innovation in enabling the in Kuwait that aims to generate the rest of the world. Omantel is the MENA region to overcome prevalent and incubate fresh new ideas in Sultanate’s first and leading integrated socioeconomic deficits and promote the country; The Taaleb E-Learning telecommunications services provider, overall human development. It Project in Kuwait, an online education enabling the digital society to flourish, addresses the question: “How can portal that links students, parents and allowing new ways of doing business stakeholders in the region come teachers through a digital platform to and delivering a world of information, together to further society’s innovative improve communication between the news and entertainment. Today, capacity as a means to driving parties and make educational process Omantel boldly innovates to deliver the sustainable, inclusive growth while more effective that has seen over highest levels of customer satisfaction, promoting human development?” 650,000 register; The Smart Schools the broadest and most reliable Commenting on the release of the Project in Jordan highlighting the nationwide network while investing for report, Scott Gegenheimer said, “Given long-term benefits of familiarizing Oman’s future development. the high-profile nature of our business, young students with the application of

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modern technology and exposing them mission of empowering every person worldwide. These include network to the tangible benefits that can be and organization on the planet to services, application acceleration, produced through ICT. Zain’s support achieve more, we need to reach those performance management, remote of the MIT Enterprise Forum Pan-Arab that the market is not yet reaching,” access, voice traffic, Microsoft Skype Startup Competition to enable and he added. Smith said corporate for Business and contact centre assist aspiring entrepreneurs from philanthropy needs to be reinvented services. Switzerland-based JTI, which across the region convert their startup for the next decade to ensure help for owns brands including Camel, Benson concepts into viable businesses; The people and organizations the cloud & Hedges and Silk Cut, has been an Light a Candle App in Lebanon aimed is not yet serving. “This will require Orange customer since 1995. The at enabling people to easily donate extensive efforts on a global basis new contract builds on a 2014 deal money towards assisting children with that reflect varied needs around the that saw OBS deploy and manage a cancer that saw over 770,000 people world, oftentimes in ways that bring unified communications solution for donate. The Family Reconnection companies, NGOs and governments JTI. OBS saw revenues rise 0.5 percent Project that was launched in Jordan together in new public-private in the third quarter, mainly thanks to and South Sudan as part of an effort to partnerships,” he said. Microsoft growth in security and cloud services. reconnect displaced people that were launched three concrete initiatives Guilain Rogg, Vice President, IT Global separated from their loved ones due -- through that are designed to Technical Center at JTI, said digital to conflict. The strategic collaboration ensure that cloud services are easily transformation was “key” for the with neXgen Group, a leading regional accessible to nonprofit organizations, company. According to a report by smart city advisory and consulting faculty researchers in universities and research house IDC earlier this month, services provider, for the purpose of people who currently lack affordable CIOs are struggling to introduce deploying smart city solutions across broadband access. First, the software innovative strategies and services as the region Zain’s strategic partnership giant will build on its longstanding they battle with operational issues. with Uber across the region that global software donation programs Anne-Sophie Lotgering, Senior Vice provides Zain customers preferential to create a “comprehensive and President, Europe, Russia and CIS at treatment when using the Uber industry-leading” donations program Orange Business Services, said: “JTI is platform, with Uber drivers benefitting to provide cloud services to nonprofit a longstanding customer, with whom from preferred telecommunication organizations worldwide. Second, the we have more than just a provider services .The partnership was company will “significantly expand” its relationship. “I am very pleased and recognized by the global research Microsoft Azure for Research program, happy about the continuation of our company, Ovum, as the most innovative which grants free Azure storage and trusted partnership, especially since service for November 2015 due to computing resources to help faculty JTI is always at the leading edge with the vast opportunities for mutual accelerate their research. And third, its IT solutions.” gain that it provides. Zain believes Microsoft will pursue new initiatives that by developing the innovative that bring together Microsoft capacity of the region through a multi- Business Development and Microsoft stakeholder approach, the MENA Philanthropies to combine investments can overcome these challenges and in innovative new technologies for last- achieve sustainable growth solutions mile connectivity access with donated access to our cloud services. Microsoft joins SAMENA Council as a member SAMENA Council has announced that Microsoft has joined its membership as a global enabler of Microsoft to donate $1 digital transformation, innovation, Orange Business Services accessibility, and as a cross-market billion worth of cloud stakeholder. As one of the world’s deliver managed services most innovative companies in the services world, Microsoft has now become Microsoft Philanthropies will to 20,000 users in over a highly diversified company, donate $1 billion in Microsoft cloud 300 sites worldwide focusing beyond the operating- services to nonprofits and university system market and into cloud, IOT, researchers over the next three years, Orange Business Services has IP-based communications services, according to its president Brad Smith. extended its existing deal with Japan video gaming, digital services, and is With support from Microsoft Research Tobacco International as the Camel also a personal computing hardware and Microsoft Business Development, owner looks to introduce more maker. As one of the planet’s foremost the move it intended to support digital ways of working. The new five- enablers of digital development for 70,000 nonprofits. “While the cloud year, $120 million (€110m) contract both businesses and citizens of the marketplace is reaching a rapidly extension takes the two companies digital society, in a mobile first, cloud growing number of customers around through until the end of 2021. As first world, Microsoft empowers the world, it is not yet benefiting part of the contract, OBS will deliver people and organizations to achieve everyone,” Smith said in a blog post. a wide range of managed services more through its cloud, productivity “If we’re going to realize Microsoft’s to 20,000 users in over 300 sites technologies, and innovation in

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SAMENA TRENDS _ JAN 2016 SAMENA TRENDS _ JAN 2016 personal computing. Dr. Ashraf international investors have expressed innovative optical technologies, Abdelwahab, Director of Corporate & strong interest in the debut sukuk including the latest technology of 130 Legal Affairs for Gulf & Egypt, stated issuance of Oman Telecommunications x 100 Gbps per fiber pair. Mr. Greg that “Our company has a global Co (Omantel). The book-building Varisco, Chief Operations Officer of commitment of helping enterprises process for the sukuk, via private Aqua Comms, said, “Aqua Comms is and citizens of the world realize their placement, is currently in progress, pleased that PCCW Global has selected full potential. It is this belief and our Oman’s largest telecom operator said AEConnect, our next-generation fiber corporate desire to contribute toward in a press release on Wednesday. The optic cable system, to provide low the world’s digital progress that proposed RO50 million issuance is latency and high capacity connectivity we have decided to join SAMENA the country’s first multi-denominated for its transatlantic backbone network Council’s community of technology sukuk, offered in both Omani rials and between its New York and London companies and telecommunications US dollars. Bankers have been holding Points of Presence. Offering diversity service providers. Microsoft is a leader one-on-one meetings with key between two of its major international in accessibility innovation and we have investors, and said that the issuance is hubs, this highly secure and much to say on ICT integration in this gathering pace amongst both Omani technologically advanced transatlantic region’s business and socio-economic and international investors. “We are system is also future-proofed against transformation, to help bring about excited about the response that the increased capacity requirements, a required shifts in ICT policy framing.” sukuk is generating in the local and demand that only AEConnect, and Mr. Bocar BA, CEO of SAMENA regional markets, and the response as not legacy systems, could satisfy.” Mr. Council said that “SAMENA Council’s expected has been very positive. We Jordick Wong, Senior Vice President, community of stakeholders in the are positive that this will help create Product and Vendor Management, digital space would not be complete a favorable investment climate, and PCCW Global, said, “Aqua Comms’ without Microsoft. Like SAMENA enhance liquidity in the domestic AEConnect provides additional Council, Microsoft believes in open market by attracting fresh foreign capacity, reliability, and security which dialogue and active participation capital,” said Talal bin Said al Mamari, PCCW Global integrates into its global on a wide array of critical issues and CEO of Omantel. “The sukuk will help network thereby delivering new low challenges, understanding which is not investors by providing an instrument latency connectivity between New only important for our industry’s future to diversify their portfolio. It is also York and London. We are confident but also for the ultimate stakeholders important to note that the sukuk is that the AEConnect cable system - the consumers and our future denominated in multiple-currencies, provides the upward scalability and generations. We are truly delighted both in Omani rials and US dollars,” performance necessary to satisfy our by this pledge of industry involvement he added. Moody’s Investors Service business objectives.” AEConnect, one from Microsoft, and strongly feel that has assigned a provisional A3 (stable) of the first subsea cables constructed this association between SAMENA rating to the sukuk. The sukuk will between New York City and London Council and Microsoft would serve have a tenor of five years and mature in nearly 15 years, was specifically to further both organization’s in 2021. The minimum subscription designed to meet the exponential missions.” As a major player in the amount for the issue is RO100,000 surge in bandwidth demand from global digital space, Microsoft will or US$260,000. The profit rate on the carriers, global data centers, cloud- be able to leverage the Council’s sukuk will be set through a uniform based networks, financial services regional and international reach as price auction and will be finalized upon companies and content providers. The well as stakeholder relationship- closing of the subscription period. cable transverses the minimum length building platforms and activities to its of shallow water along the continental strategic advantage for conducting its shelf on both sides of the Atlantic business activities within the SAMENA and avoids major fishing grounds region. Both organization anticipate and shipping anchorage areas that collaborating on various ICT policy are known to expose subsea cables imperatives and in drawing industry- to damage. Additional armoring and wide attention on critical business as deeper burial were also obtained to well as accessibility fronts that are in PCCW Global partners further mitigate potential vulnerability. line with both organization’s visions of In addition to its highly secure the future. with Aqua Comms routing, AEConnect delivers one of PCCW Global, the international the lowest latency crossings of the operating division of HKT, Hong Atlantic, projected at a speed of 53.9 Kong’s premier telecommunications milliseconds. TeleGeography forecasts service provider, today announces growth in data traffic across the Atlantic its cooperation with Aqua Comms between now and 2021 will be 41% Limited, a provider of scalable, subsea CAGR. A major advance upon systems capacity-based network solutions, to built at the turn of the 21st century, it Omantel sukuk attracts deliver transatlantic capacity on Aqua is designed as a coherent optimized Comms’ America Europe Connect system, and will therefore benefit the strong response from (AEConnect) subsea fiber optic cable most from the improvements that system, which will enable PCCW Global coherent technology offers, today and local, regional investors to obtain additional route diversity. into the future. A large number of Omani and With more than 52 Tbps of available capacity, the AEConnect system utilizes

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and assisting with R&D process number of West and Central African and implementation expertise; this markets from facilities in Abidjan (Côte underscores our commitment as a d’Ivoire) and Dakar (Senegal) in future. strategic partner in China.” Qualcomm In a statement, Orange said it would said Guian New Area in Guizhou is an contribute marketing expertise and important base for the development technical capability in Liberia but that Ufone – Meezan Bank of the big data industry and will Cellcom’s founders and employees unveil TVC for world’s include a green datacenter cluster would remain involved in the business. of more than 2.5 million servers for first Islamic Branchless companies including China Telecom, banking service China Unicom and China Mobile. Ufone, renowned for its innovative and out-of-the-box products and advertisements in collaboration with Meezan Bank, Pakistan’s first and largest Islamic bank, have unveiled the Tata Docomo offers TVC for Meezan-Upaisa, World’s first subscribers customized Islamic Branchless Banking service. With the launch of Meezan-UPaisa, the Orange expands in Africa experiences via Syniverse customers in Pakistan for the first time with Cellcom acquisition Syniverse announced it is working with would now be able to send and receive France’s Orange has agreed to buy Tata Docomo, one of India’s leading money, pay utility bills and do mobile telecom service providers, to enable top ups through Islamic banking from Cellcom Liberia from privately held Cellcom Telecommunications Ltd. subscribers to manage their mobile Meezan-Upaisa agents located in expenses. Through this collaboration, more than 100 cities across Pakistan. for an undisclosed sum as part of its expansion strategy in West Africa. The Tata Docomo is accessing a Syniverse takeover will, according to Orange, give solution that uses intelligent policy it ownership of the largest of Liberia’s capabilities to allow subscribers four mobile operators and enlarge its to gain control of their data usage footprint in the Francophone region. through prepaid data passes, volume- Cellcom Liberia has 1.3 million mobile based data caps and high-usage alerts. customers and a market share of about “Customer centricity and innovation 45%, just ahead of LonestarCell MTN. are at the heart of every service Qualcomm announces An Orange spokesperson said that that we offer to our subscribers. Our collaboration with Syniverse is the chipset joint venture in Cellcom is “a very dynamic player with good growth potential” in a market first of its kind in India’s telecom China that is still developing. Although market to empower our customers to manage their experiences and costs,” Chipset maker Qualcomm today many African markets now offer little opportunity for subscriber growth, said Gurinder Singh Sandhu, Head announced its joint venture in China Marketing, Mobility, Tata Teleservices to develop and sell chipset in the mobile penetration in Liberia (which is home to some 4.3 million people) is Ltd. The collaboration with Tata local market. Qualcomm will hold 45 Docomo leverages elements of percent stake, while Guizhou provincial still just 66% -- a much lower rate than in neighboring countries, according Syniverse’s intelligent policy portfolio, government will have the balance 55 which helps operators to drive overall percent stake in Guizhou Huaxintong to Orange. Orange already maintains networks in the neighboring markets profitability for the retail, wholesale Semi-Conductor Technology which and quality aspects of their businesses. will have a registered capital of $280 of Côte d’Ivoire, Guinea-Bissau, Guinea Conakry, Mali and Senegal and says the Collectively, the full portfolio uses real- million. As part of the deal, Qualcomm time data to gain an instantaneous will license its server chip technology acquisition will be executed by its Côte d’Ivoire subsidiary, pending regulatory view of individual subscribers to enable and provide R&D processes to the joint operators to deliver personalized venture to support the commercial approval. The French operator’s other markets in West and Central Africa experiences and competitive pricing viability. The joint venture will focus plans for each subscriber. “In the face on the development and sale of includes Cameroon, the Central African Republic, the Democratic Republic of of ever-increasing competition, mobile advanced server chipset technology operators are focused on increasing in China, the second largest country in the Congo (DRC) and Niger. Orange has previously outlined plans of revenues and retaining subscribers,” the world for server technology sales. said Sanjay Kasturia, Syniverse’s Vice The joint venture is part of the strategy increasing sales across its African and Middle Eastern markets by 20% President and Managing Director of Qualcomm to make an investment of Sales for India. “Through our in China. Earlier, Qualcomm faced between now and 2018 and reckons it can achieve an even higher rate of intelligent policy products, we have more than $1 billion penalty due to developed a comprehensive approach its business practices. Derek Aberle, EBITDA growth through efficiency measures. Those could include the to help operators differentiate their president of Qualcomm, said: “We businesses.” Syniverse’s collaboration are not only providing investment sharing of network resources between different markets: Last year, Orange with Tata Docomo and its parent capital, but we also are licensing our company, Tata Teleservices Ltd., builds server technology to the joint venture said it would monitor networks in a

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SAMENA TRENDS _ JAN 2016 SAMENA TRENDS _ JAN 2016 on the growing need for operators (ADAS), GNSS location technologies, technology providers, digital services across the globe to gain visibility V2X (Vehicle to Vehicle/ Infrastructure/ companies, and other leading players into their networks, increase control Pedestrian) communications within the digital space. Expresso of network performance and, in turn, for improved safety and driver Telecom commercially operates in enhance the subscriber experience. convenience, and wireless charging Senegal, Mauritania, Ghana, and for electric vehicles. The recent Guinea, offering products as well as acquisition of Cambridge Silicon Radio fixed line and mobile services that Limited (CSR) has brought additional meet the needs of the businesses and technology assets to Qualcomm citizens of Africa. Upon becoming a Technologies’ automotive portfolio, member of SAMENA Council, Eng. including leading Bluetooth®, Wi-Fi®, Tarig Hamza Zainelabdin, CEO of audio, and GNSS location technology Sudatel Group stated, “We believe Qualcomm announces solutions. that building strong partnership with key stakeholders and playing an innovations for active role in an ICT community are key to achieving long-term business automotive segment sustainability. We want to develop Qualcomm unveiled latest innovations mutually beneficial relationships with for the automotive segment powered technology providers, other telecom by Qualcomm Snapdragon processors. players who have the experience that The company also announced a PTCL & Linkdotnet to is aligned with our own vision, and we number of industry collaborations want to develop better understanding to expand the reach of the products Deploy WLL in 1900 with government bodies.” to new devices. Snapdragon 820 Commenting on this partnership, Mr. Automotive processors, one of the MHz & 3.5 GHz in AJ&K Tarig Hamza Rahamtalla, Managing recent launches, offer a scalable next- and GB Director of Expresso, said “By joining generation infotainment, graphics and SAMENA Council, we hope to enrich multimedia platform with machine Pakistan Telecommunication our awareness of industry matters and intelligence and a version with Authority (PTA) auctioned spectrum make our brand more visible, to be able integrated LTE-Advanced connectivity. on December 29, 2015 for Wireless to realize our objectives of achieving Automotive samples of the 820A Local Loop (WLL) Services to PTCL competitive edge as well as long-term family are expected to be available in and LinkDotNet for Azad Jammu & financial profitability for our investors.” Q1 2016. The version with integrated Kashmir (AJ&K) and Gilgit-Baltistan Bocar BA, CEO of SAMENA Council X12 LTE modem is designed to (GB) regions and successfully congratulated Expresso Telecom support continuous in-car and cellular generated Rs. 108.48 million in total. Group and said, “Mr. Tarig Rahamtalla’s connectivity, featuring the leading 4G The auction allotted WLL spectrum commitment to building a sustainable LTE Advanced Pro that can support to PTCL for all offered regions which business in all of Expresso Telecom’s up to 600 Mbps download/150Mbps include Mirpur, Muzaffarabad and market operations is precisely what upload speeds, stream HD movies Gilgit Baltistan, while LinkDotNet got telecom operator leaderships require, into the car, serve as a Wi-Fi hotspot spectrum for Mirpur region in 3.5MHz today. SAMENA Council not only supporting 802.11ac 2×2 MIMO, band. It is also imprtant to note that understands business sustainability connect multiple mobile devices inside only PTCL and LinkDotNet had applied issues and the importance of the car, and support 802.11p DSRC for for WLL spectrum auction. All lots incentivizing investment, we also V2X (Vehicle to Vehicle/Infrastructure/ were auctioned at base price, while are well-aware of the need for all Pedestrian) communications. It also 2 lots in 3.5MHz for Mirpur region industry players to come together offers local connectivity via Bluetooth. were auctioned to both PTCL and and take unified positions on key Qualcomm announced collaboration LinkDotNet for Rs. 10 million each; issues that affect our business. Much with Aisin AW to develop the modular its base price was Rs. 7.97 Million. can be achieved together when all infotainment solution utilizing the industry players are united under Snapdragon 820A. The chipmaker a leading regional private-sector also announced partnership with QNX platform that is SAMENA Council. We Software Systems, a subsidiary of are excited to see Mr. Rahamtalla in Blackberry and provider of software our cross-regional telecoms and ICT platforms for in-car electronics; community.” As one of the newest and LG Electronics; Mitsubishi Electric; leading African telecommunications Visteon Technology Office; Neusoft Expresso Telecom Group brands, Expresso Telecom will be able Corporation; and ADAS Vision. joins SAMENA Council to leverage the Council’s regional Qualcomm Technologies has also and international reach as well as expanded its automotive technology as a member stakeholder relationship-building portfolio by offering highly integrated SAMENA Council has announced that platforms and activities, which are solutions in the areas of telematics Expresso Telecom, a part of Sudatel designed to keep dialogue open to and connectivity, as well as high Telecom Group, one of Africa’s leading help encourage business friendly definition graphics and multimedia for telecommunications and information policy framing and investment in rich infotainment systems, machine services brands, has joined its digital infrastructure development, and intelligence and sensor fusion for community of telecom operators, to enable partnership development advanced driver assistance systems among the stakeholders.

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REGIONAL NEWS

Top opportunities in early in 2016. Liquid Telecom provides data, voice and IP, supplying fiber optic, African telecoms for 2016 satellite and international carrier services The telecom industry forms vital vertebrae to African mobile network operators, ISPs in the economic backbone of Africa’s and businesses. It also provides payment economic growth, buttressing all aspects solutions to financial institutions and of the business, social and political retailers. The Mauritius-based company environment. Unprecedented growth has offices in Botswana, DRC, Kenya, in the last several years has elevated Lesotho, Nigeria, Rwanda, South Africa, penetration rates and performance. Yet, Uganda and Zambia, Zimbabwe and averaging around 75 percent penetration the UK. Three trends will prevail in 2016: across the continent and lacking 3G digitalization aka broadband, public REGIONAL coverage beyond urban areas, telecom participation, and mobile payment is only encroaching on its full potential. expansion. Digitalization arrives as public UPDATES Much remains untapped. All the statistics and private actors buy in together on the from previous years make it easy to belief that connectivity boosts revenue predict big growth for telecoms in 2016. (and profitability) across sectors from Foreign investors already demonstrate agriculture to oil. Public participation is a penchant to back this sector. Look at ever-so-present until foreign investors Liquid Telecom’s $150-million capital gear back up from a slowdown in raised in early 2015 to extend its fiber investment in 2015. But don’t let public network on the continent, particularly participation discount private interest. in East Africa where it lays fiber-optic And mobile payments will persist as cable to connect Burundi and the a vital component to Africa’s financial Democratic Republic of Congo. It’s system. already credited with an East Africa fiber ring that connects Kenya, Tanzania and Democratic Republic of the Congo Uganda. Or check out Smile Telecoms’ (DRC) $365 million raised in late 2015 with an eye focused on the Democratic Republic DRC is in for a big telecom boom. Liquid Telecom and Smile Telecoms capital raises of Congo. Founded in South Africa (and apportioned dollars to the DRC) and incorporated in Mauritius, Smile suggest that the country will see nearly Telecoms owns and operates mobile $500 million in investment. Analysts wireless 4G LTE broadband networks in predict that the DRC telecom sector will Nigeria, Tanzania and Uganda, and plans grow almost 10 percent during the next to launch its broadband network in DRC five years. Based on that, the sector could

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generate approximately $3 billion in Cote d’Ivoire the UAE experience in combating revenue in 2020, pushing it ahead of Cote d’Ivoire generally falls under cyber blackmailing at a meeting neighboring comparables in Sudan the radar for the telecom sector. attended by the General Authority for and Tanzania — both countries That story has changed since Ivorian Regulating Telecommunication Sector with higher incomes. Mobile data Minister and Cabinet Director of (TRA), represented by its subsidiary, is expected to account for $450- Post and ICT André Augustin Apete the UAE Computer Emergency to-600 million of that revenue. All announced that the country will Response Team (aeCERT), held last those numbers cannot be read in a invest $165 million to deploy an week in Riyadh. The meeting was vacuum. DRC currently has a mobile additional 5,000 kilometers of fiber chaired by Sulaiman Abdelrahman Al penetration rate of 68 percent — optic cables across the country in Samhan, Digital Forensics Supervisor, lower than African average — with early 2016. The additional cable will Communications and Information a 100-percent-plus rate predicted complement the 1,400 kilometers in Technology Commission, CITC, of Saudi by 2020. How is this possible? Liquid the northwestern part of the country Arabia. The UAE was represented by Telecom and Smile Telecoms stories and the 662 kilometers in Bouna Adel Al Muhairi, TRA’s aeCERT Director, tell us how: invest in infrastructure (inaugurated in December 2015). and Ghaith Al Mazaina, TRA’s aeCERT and bid on the long run. If you are That equates to 7,000 kilometers Business Affairs Manager. The UAE not prepared to spend on Africa’s of fiber optic infrastructure in a few delegation highlighted its experiences fourth most populated country, then years. The country’s investment in in combating cyber blackmailing and you will miss out. Capital will have the cable network follows other shed light on the campaign that was to be patient. DRC is an early stage big investments in infrastructure launched by TRA in cooperation with emerging-market country with an since the end of the 2011 political Al Ameen Service by Dubai Police election planned in 2016, but the violence. The vast spending effort with the aim of raising awareness of revenue potential cannot be ignored. has propelled economic growth to cyber security threats. The committee around 9 percent on average. A rise decided to adopt UAE’s experience so all member states benefit from Ethiopia in mobile banking and a digital boost to the economy should buoy that it. Hamad Obaid Al Mansoori, UAE Yes, I know that Ethio Telecom, figure. A bump in foreign investment TRA Director-General, said, “We are Ethiopia’s state-owned telecoms would be a great addition to the mix, delighted to have our experience provider, continues to veto any as one has to wonder how long the adopted by the committee as this opening of the telecom industry government can continue to self- reflects the UAE’s success in combating to foreign operators. But it is just finance this growth. cyber blackmailing and it highlights its wrong to leave this country off the effective contribution to protecting list for telecom in 2016. Africa’s the infrastructure of this vital sector second most populous country has Nigeria at a local and regional level. Cyber more than 60 million subscribers, With nearly 180 million people, security has become an integral part according to Ethio Telecom CEO Nigeria would make the top three if of our societies’ safety, and especially Andualem Admassie. That’s expected yours truly could stop salivating over in light of the rapid developments in to grow to about 80 million by 2020. Ethiopia (which we should all do until the ICT sector. Accordingly, the TRA Foreign investors are eager to play government says it wants to open the is always keen to cooperate with a role with their own internal data sector). The economy is still heavily all concerned parties to develop suggesting 10 percent as an easily dependent on oil, which has caused innovative solutions and mechanisms achievable growth figure, implying trouble as the price plunges below that safeguard the sector optimally.” 100 million subscribers by 2020 as a $30 globally. That being said, Nigeria “We believe that knowledge and reasonable figure. The comparable is looking to telecom, particularly awareness are the shield that protect statistic would be the DRC. But the the IT aspect and subsequent our users from being exploited by difference maker here may be the digitalization of the economy, cyber-criminals. Driven by this belief, Ethiopian government’s unmatched to create new economic growth we collaborated with Al Ameen service commitment to infrastructure opportunities. With broadband to spread awareness about cyber investment on the continent in recent in mind (targeting 30 percent for security threats. We are committed times. Public transportation and 2018 from the current 10 percent), to making the internet safer for UAE power may steal the conversation. But the Nigerian Communications users, therefore, our tireless efforts the country can be appreciated for its Commission is ready to offer more include supporting and enabling all strong fixed-line system (gaining a licenses and is seeking more foreign initiatives that are launched with the new momentum in some countries) investment – two clear messages aim of providing a safe electronic and its previous partnerships with coming out of the 2015 International environment,” he added Adel Al Muhairi foreign operators — China’s Huawei Telecoms Union (IT) Telecom World said, “The meeting entailed discussing and ZTE as well as Sweden’s Ericsson. conference in Budapest, Hungary in various significant topics that served Expect one of those three to play a October. one purpose, which is, enhancing partnership role in a technology information security standards upgrade project, as planned by and practices and providing a safe Ethio Telecom for 2016. Debate also GCC adopts UAE’s environment for internet users across rages on if more towers are needed, the region.” Ghaith Al Mazaina said, with Ethio Telecom holding firm that cyber experience and “The Cyber Blackmailing campaign is there are currently enough towers methods one of the successful campaigns that constructed in the country. were welcomed by Emirati society as The Gulf Cooperation Council’s 11th it contained numerous awareness GCC CERTS Committee has adopted

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SAMENA TRENDS _ JAN 2016 SAMENA TRENDS _ JAN 2016 messages. It has been widely comes less than three weeks after the Saudi’s Mobily swings to publicized by different radio and Ministry of Information Technology TV channels, in addition to social proposed a tax relief package for Q4 profit media channels. We value our the telecoms sector, which struggled Mobily, an affiliate of the United Arab strong ties with our brothers in the last year with declining revenue Emirates’ Etisalat , made a net profit GCC, and that is why we were keen after the government raised taxes. A of 11 million riyals ($2.93 million) in to share with them our experience committee, set up by the IT minister the three months to Dec. 31. This to raise awareness and ensure to study the impact of the higher taxes compares with a loss of 2.11 billion that the region benefits from on operators, found that the higher tax riyals in the same period a year earlier, this experience.” The meeting’s burden slowed revenue growth and according to a bourse statement. An agenda entailed discussing the hampered the government’s effort analyst at Osool & Bakheet Investment GCC CERTS Committee working to hold a 3G/4G spectrum auction. Co forecast Mobily, which competes mechanism and tasks, activating Operators have repeatedly said they with Saudi Telecom Co and Zain Saudi, the GCC Information Security are not interested given their current would make a quarterly profit of 125.1 Strategy, setting the cooperation financial status. Operators’ revenue million riyals. The company said it framework between GCC CERTS in Q3 fell 12 per cent to PKR102 signed an agreement with creditors and the regional and international billion ($98 million) from the previous on Dec. 29 to waive covenant breaches centers, in addition to activating quarter. Operators are also facing low in relation to several debt facilities the emergency response training margins and have long complained worth 12.1 billion riyals. It continues to simulation, benefitting from the to the government about high taxes, discuss agreeing a similar waiver with fiber-optic infrastructure in the low return on investments and weak other creditors, the firm added. e-linking project, and collaborating economic growth. with the United States in the field of cyber security. Telecom operators STC’s 2015 net profit voice against taxation down 14.8% to Pakistan operators procedures in Pakistan condemn new SIM, US$2.48bn Mobilink, Telenor and Warid have said Saudi Telecom Company (STC) has that the Federal Board of Revenue’s handset tax published its financial results for the procedure for imposition of sales Three Pakistan operators have twelve months ended 31 December tax on SIM cards and handsets, is united in urging the government to 2015, reporting a 14.82% decrease in unconstitutional and practically drop its proposal to impose sales net profit to SAR9.335 billion (USD2.48 almost impossible to implement tax on SIM cards and handsets and billion) from SAR10.959 billion reported in the manner laid down by the called the device tax “irrational, in 2014. The company attributed the board. These companies said that illogical, arbitrary and incoherent”. negative result mainly to a SAR2.823 the scheme of taxation of handsets Mobilink, Telenor and Warid said billion rise in cost of services and a as set out by the FBR is irrational, the Federal Board of Revenue’s SAR1.883 billion increase in operating illogical, arbitrary and incoherent. The (FDR) procedure for imposing the expenses in the year, despite the new sales tax regime will lead to an sales tax is unconstitutional and 7.77% year-on-year growth in gross increase in handsets with dummy IMEI almost impossible to implement, profit to SAR30.343 billion. In the numbers in addition to an increase ProPakistani reported. The new period under review, STC reported in overwriting of IMEI numbers with tax would increase the number of revenues of SAR50.837 million, a the object of avoiding the tax, said handsets with fake IMEI numbers as 10.93% increase y-o-y, while EBITDA the companies. Telenor, Mobilink and people take steps to avoid the tax, reached SAR19.370 billion, up 3.80% Warid had made detailed submissions which would lead to tracking issues from SAR18.661 billion. STC Group’s on the practical issues in relation for law enforcement agencies, CEO Khaled Biyari commented: ‘The to the implementation of the tax the companies said. The three 11% increase in consolidated revenue imposed by way of the Ninth Schedule operators, which together have a and the 3.8% increase in EBITDA for read with Section 3B of the Sales Tax 64 per cent share of the country’s the twelve-month period compared Act, 1990. The present submissions mobile connections, submitted a to last year confirm that STC’s aim to cover some of the fundamental detailed response to FDR, which strategy is working well. The decline legal issues in the implementation has proposed introducing a tax in net profit for the twelve months is of the tax under the Ninth Schedule on the import and supply of mainly attributed to STC continued while recapping some of the practical SIM cards. The country already investments in programs that will have problems that make it impossible to taxes the import and supply of positive outcomes in the near future, get the tax regime implemented. The handsets. The operators said that such as the early retirement program Ninth Schedule taxes two items i.e. complying with the new taxes and the disposal of old assets … With SIM cards and handsets. Before the would be expensive and that the regards to international operations, introduction of the Ninth Schedule by new tax regime will not solve the the twelve-month period witnessed way of the Finance Act, 2014, only the problem of the handset tax being revenue growth of 8% in the controlled import and supply of handsets was avoided. ProPakistani quoted a international subsidiaries compared being taxed but there was no special joint representative as saying: “The to last year and this is attributed taxes on the import and supply of SIM only solution for the government mainly to the continued growth in cards. The CMOs’ current technical is to crack down on smuggling the subsidiaries’ customer bases and and human resources are not capable and charge sales tax at the import market shares.’ of implementing the tax regime and and supply stage.” The reaction they will have to incur costs running

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into hundreds of millions of dollars Bahrain Telecommunications and SIM cards. Following are the key in capital expenditure in addition to Company (Batelco) has received a taxes that directly impact consumers huge operational costs on account number of non-binding offers for and providers of mobile industry in of human resources for complying its Jordanian wireless arm, Umniah, Pakistan: with, the tax regime. The new regime from ‘potential interested parties’ the 19.5% GST mobile services. sought to be implemented will not group announced in a bourse filing. 14% withholding tax on mobile solve the Government’s problem at all. Batelco revealed in October last services. It will lead to an increase in handsets year that it was considering options with dummy IMEI numbers in for Umniah and launched a private Custom duty of Rs 250 on mobile addition to an increase in overwriting sale process for the cellco shortly handsets. of IMEI numbers with the object of afterwards. The group and its advisers avoiding the tax. Not only will the will now evaluate the offers, although On Broadband Internet Services, the entire purpose of this new regime no timeframe for the assessment tax rate is 19.5% in Punjab for more stand defeated, but it will also lead to process was given, nor were the than 2 mbps speed. It was removed tracking issues for law enforcement identity of the bidders revealed. by Punjab government after fierce agencies if IMEI numbers are forged. campaign by digital publishers along The only solution for the Government with cellular operators. is to crack down on smuggling and State Bank of Pakistan In Sindh, the tax is 18% if broadband charge sales tax at the import and bill exceeds Rs 1500. supply stage, joint representation points out heavy said. taxation as cause of 10% duty on import of equipment used for voice reception, switching low broadband internet and routing of data etc. Zain KSA completes adoption Corporate tax of 32%. phase one of Project Earlier this month, the World Bank ranked Pakistan as having the fourth The report did not mention 19.5 Reload investment highest offline population in the world percent GST on broadband and 3G/4G Telecom network operator Zain after India, China and Indonesia. The services in KPK. SBP reiterated in its Saudi Arabia (Zain KSA) today said it State Bank of Pakistan (SBP) has now report that data services and mobile completed the phase one of Project pointed out its main reason as heavy internet have been exempted from Reload investment. Project Reload taxation for low internet broadband taxes all over the world because of their is Zain KSA’s SAR 4.5 billion network use through mobile and different benefits to masses and effects on social upgrade and expansion plan. Zain KSA developments significantly enhanced the customer and economic experience – focusing on the quality, growth. The speed and coverage of 4G LTE data report also network. Zain KSA also opened, or mentioned that refreshed, 91 Zain branded points studies show of sale in 2015. Hassan Kabbani, that increased chief executive officer of Zain KSA internet usage said: “Our customers become much contributes more active members of the digital positively society in Saudi Arabia. Customers to country’s are consuming an ever increasing economic growth amount of our data services. Our quoting World strategy to offer mobile video Bank analysis that streaming services in Saudi Arabia indicated that for appears to be resonating well with every 10 percent consumers.” Zain KSA said revenues increase in the grew 9 percent to reach SAR 6,741 technologies. According to State Bank penetration of broadband services, million in 2015 and 7 percent quarter of Pakistan quarterly report, Pakistan there is an increase in economic on quarter to SAR 1,672 million in Q4 presents a huge market of about 130 growth of 1.3 percentage points, 2015. Net losses of Zain KSA for the million people that need broadband which was proved in 120 countries. year narrowed by 23 percent to SAR services. Currently, there are 24.7 SBP believes heavy taxation on mobile 971 million, down from SAR 1,269 million, including 21.65 mobile services in Pakistan does not bode well million during 2014, with Q4 net broadband users. “Despite being for economic growth in the country. losses dropping by 5 percent drop to among top 10 countries of the world This shows large untapped potential in SAR 291 million, down from SAR 306 in terms of number of mobile users, the broadband segment. Other issues million during Q4 2014. share of broadband and mobile users such as quality of services, complex in Pakistan is still low,” SBP stated in its price structure, and high charges report with its independent analysis of devices result in lower mobile Batelco receives non- on mobile phone sector and taxation and broadband usage. From the binding offers for over its mobile broadband services. perspective of mobile operators, high Mobile sector is heavily taxed in cost of entry, costlier devices, poor Umniah Pakistan, impacting devices, usage fixed line infrastructure, and taxation

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SAMENA TRENDS _ JAN 2016 SAMENA TRENDS _ JAN 2016 on imported equipment hinder cent from 2014. Fees from debt capital first place in the full year 2015 Middle the new investment necessary for markets underwriting declined 33 per Eastern ECM ranking with 16.5 per the expansion of such services cent year-on-year to $59.1 million. cent market share. As for Debt Capital to the unserved areas of the HSBC earned the most investment Markets, Middle Eastern debt issuance country, SBP report mentioned. banking fees in the Middle East reached $6.2 billion during the fourth The analysis is not different from during full year 2015, a total of $62.9 quarter of 2015, a significant increase what digital publishers and media million for a 9.9 per cent share of the compared to the value raised during have explained to policymakers total fee pool and up 2.1 wallet share the previous quarter. Despite the repeatedly in the past six points compared to a year ago. HSBC quarterly increase, full year bond month. Now, the same has been also topped the completed M&A fee issuance in the region decreased 19 highlighted by a highly competent rankings, while Nomura was first for per cent from last year to $30.2 billion and independent organization of DCM underwriting. EFG Hermes took during full year 2015, marking the the country. the top spot for ECM underwriting lowest annual total since 2011. The fees in the region with 15.5 per cent United Arab Emirates was the most share. Mitsubishi UFJ Financial Group active nation accounting for 60 percent Mena M&A market took the top spot in the Middle of activity, followed by Bahrain with 9 Eastern syndicated loans fee ranking percent. International Islamic debt reached $56.2 billion with $18.2 million in fees for 6.5 per issuance declined 23 percent year-on- in 2015 cent of the market. As for M&A deals, year to reach $28.9 billion during full Outbound M&A drove activity, up 34 year 2015. Nomura took the top spot Middle Eastern investment banking per cent from 2014 to reach $35.2 in the Middle Eastern bond ranking fees reached $636.4 million during billion, the highest annual total since during 2015 with a 27 per cent share full year 2015, 16 percent less than 2008. Overseas acquisitions from the of the market. the value recorded during full year United Arab Emirates accounted for 46 2014 and the lowest annual period per cent of Middle Eastern outbound for investment banking fees in M&A activity, while acquisitions by the region since 2012, according Pakistan has Huge companies based in Qatar and Saudi to estimates from Thomson Arabia accounted for 36 per cent and Potential to Manufacture Reuters / Freeman Consulting. 10 per cent, respectively. Domestic Nadim Najjar, Managing Director, Smartphones and inter-Middle Eastern M&A Mena, Thomson Reuters, said: The increasing population of Pakistan decreased 16 per cent year-on-year to “The value of announced M&A clearly indicates that the country $11.3 billion. Inbound M&A also saw transactions with any Middle has great potential for smartphone a marked increased, up 29 percent to Eastern involvement reached penetration. Also the 3G/4G services $5.4 billion. Healthcare was the most $56.2 billion during full year 2015, has accessed to the far flung regions active sector, 13 percent more than the value accounting for registered during the same period 24 per cent of in 2014 and marking the best Middle Eastern annual period since 2008.” “Middle involvement Eastern equity and equity-related M&A. The issuance totaled $5.7 billion during largest deal the full year 2015, a 50 percent with Middle decline from full year 2014 and the Eastern slowest annual period for equity involvement capital markets issuance in the during the region in two years. Middle Eastern year was the debt issuance reached $6.2 billion $11.1 billion during the fourth quarter of 2015, acquisition a significant increase compared of South to the value raised during the Africa-based previous quarter,” he added. In Mediclinic respect to investment banking International by Al Noor Hospitals fees, fees from completed M&A like Gilgit-Baltistan (GB) recently. Group PLC. Morgan Stanley topped transactions totaled $213.1 million Smartphone shipment in Pakistan has the full year 2015 announced any during full year 2015, a 4 per cent massively increased by 214% on yearly Middle Eastern involvement M&A increase compared to a year ago basis during the first 3 months of league table with $18.4 billion in and the only investment banking 2015 compared to 2014, according to advisory credit. In respect to Equity product in the region to see a International Data Corporation (IDC) Capital Markets, Eleven initial public year-over-year gain. M&A fees report. offerings raised $2.6 billion and accounted for 33 per cent of the accounted for 45 per cent of full year overall Middle Eastern investment activity in the region. Follow-on and banking fee pool, the highest convertible offerings accounted for 17 Ooredoo signs USD177m annual share since fee records per cent and 38 per cent, respectively. began in 2000. Equity capital financing deals Aabar Investments PJSC raised $2.2 markets underwriting declined 33 Ooredoo Oman has signed three billion from a convertible offering in per cent compared to last year, new financing agreements with March, the largest equity offering in while syndicated lending fees local and international banks worth the region during the year. HSBC took totaled $278.6 million, down 16 per USD177 million. The firm, which is

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majority owned by Qatar-based period, which is planned for 26 of services offered to the consumers. telecoms group Ooredoo, said that January. Omantel has mandated The increase in taxes affected telecom the new funding will be used ‘for Standard Chartered Bank as sole industry. The revenue for the auction of general corporate purposes and will structuring advisor, while HSBC, 3G/4G spectrum was revised to Rs 65 underpin continued investment in National Bank of Oman and Standard billion for 2015-16. To evaluate market the company’s network and ongoing Chartered Bank have been hired as demand for auction of left over 3G and enhancement of services for the joint placement agents for the issue. 4G licenses, PTA hired a consultancy company’s growing business and firm for this purpose. In the same way consumer customers.’ Ooredoo FBR decided to conduct forensic audit has spent more than OMR124 2015 Substantiates of cellular companies to inspect tax million (USD321 million) on the collection and financial statements modernization of its network over to be a Hard Year for submitted by them. According to PTA the last three years, resulting in the Development of , yearly cellular mobile revenue during population coverage increasing to 2013- 14 was Rs 322.7 billion which approximately 99%. Commenting Telecom Sector in is 70% of the total telecom revenues. on the agreement, Ooredoo’s chief Pakistan The telecom contribution to national financial officer Jorgen Latte said: exchequer, profits and investment During 2015 the telecom sector ‘There has been huge interest from also recorded decline during 2014- witnessed many milestones, but still both local and foreign banks in our 15. Mobilink and Warid announced to it substantiated to be a little hard new facility. With our clear vision merge their operations in Pakistan at with respect to legislation, revenues, and strategy, Ooredoo attracts many the end of 2015, and as a result, after taxation and investment. There banks who want to participate and required endorsements a merged is an extensive list of happenings support our strategic ambitions.’ company with almost 45 million from Biometric Verification System customers will arise. The government (BVS) till merger of two operators and policymakers need to re-consider Mobilink and Warid. The summary and re-organize their primacies, so Egypt’s net invested of important events during 2015 that a more welcoming environment that exhibited that it was a bit hard capital rises to 11.4% in can be made that can invite FDI and for Telecom Sector to develop are subsidize to national progress. FY2014/2015 discussed below. Re-verification of Egypt’s net invested capital increased SIMs through BVS was made an to 924.7 billion Egyptian pounds in essential part of National Action fiscal year 2014/2015 from 830.3 Plan (NAP) to limit identity theft and Ooredoo launches billion EGP in FY 2013/2014, with an to assure that no unregistered SIM mobile financial services increase of 11.4 percent, the Central was being used in the country. Due Agency for Public Mobilization and to this reason total number of active in Iraq Statistics (CAPMAS) announced. The SIMs dropped down from 139 million Ooredoo announced the launch of report attributed this hike to the to 111.5 million. This move lowered mobile financial services at its Iraqi increase of investments in sectors of the revenue of CMOs. According to operation, bringing the number of manufacturing, oil, mining, transport, figures till end of November 2015, the markets in which it offers mobile communication, housing, and number for active SIMs has mounted money to four. The Qatar-based construction. Regarding the financial again to 124.4 million, while total telecoms group said its Asiacell unit investments value, the report stated number of broadband subscribers in Iraq started offering mobile money that it rose to 534.2 billion EGP in reached 24.8 million. PTA claimed services from AsiaHawala in December. FY2014/2015 from 462.6 billion EGP noteworthy decline in grey trafficking, AsiaHawala is an Iraq-based diversified in the previous year, recording an besides decrease in voice call rates for financial services company. It was increase of 15.5 percent. Pakistanis abroad, after withdrawal of founded by Iraqi Kurdish telecom International Clearing House (ICH) professional Zring Faruk in 2014 and policy. According to the government is the first mobile money service Omantel’s debut sukuk international incoming traffic raised provider to launch in Iraq. It is licensed to 1.6 billion minutes per month, up by the Central Bank of Iraq. The service opens for subscription from mere 370 million minutes per enables Asiacell customers to carry out Oman Telecommunications month during ICH. The government transactions such as money transfers (Omantel), the Sultanate’s incumbent is still trying to completely eradicate and bill payments. It is available at telecoms operator, has opened for the grey traffic to evade any unlawful 1,600 locations across Iraq, Ooredoo subscription its debut OMR50 million usage of telephony services. The said. As a result of the launch, Ooredoo (US$129.4 million) sukuk issue, writes Telecom Policy 2015 proved to be now offers mobile financial services in the Times of Oman. The Islamic bond, a milestone for future growth and four markets, the other three being its which will have a lifespan of five development of ICT and specifically home market of Qatar, Indonesia, and years, is offered on private placement telecom sector. The vision enunciated Tunisia. “Ooredoo is deploying a full to Omani and international investors, in the policy is accessibility of range of innovative solutions to extend who will be able to subscribe in universal, reasonable and quality the range of mobile financial services both US dollars and Omani rials. telecommunication services provided across our footprint, and we’re very The minimum subscription amount through open, competitive and well proud that Asiacell has launched the is OMR100,000/US$260,000 and managed markets. It is anticipated first mobile money service licensed the profit rate will be set through a that competition framework will make by the Central Bank of Iraq,” said uniform price auction to be finalized telecom market more proficient in Ooredoo’s group CEO Saud Bin Nasser upon closing of the subscription terms of quality of service and choice Al Thani, in a statement.

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Bahrain mobile prices Al Roudhan, Zain Kuwait’s CEO, said: number of organizations looking ‘Earlier this year, we teamed up with to implement various advanced fall by 55% in 2010- Huawei to trial and implement 4.5G and predictive IT security solutions 2015 - study services on our network in Kuwait, and such as multifactor authentication we were pleased with the successful and access management, real-time Mobile prices fell by up to 55 results we accomplished today. With policy enforcement, and analytics- percent and fixed broadband the implantation of further tests in based monitoring. IDC predicts that prices fell by up to 85 percent the near future, we will be better spending on IT security software in between 2010 and 2015 in prepared to launch 4.5G technology Saudi Arabia will grow 12% year on Bahrain, according to the latest commercially within the next three year in 2016 to total $96 million, with retails price benchmark study years as soon as compatible devices the evolving cyberthreat landscape performed by Strategy Analytics are available in the market.’ Through and the proliferation of 3rd Platform for the Telecommunications its strategic partnership with Huawei, technologies fueling concerns around Regulatory Authority (TRA) Zain is also planning to provide data privacy and driving demand for and the Arab Regulators Group voice-over-LTE (VoLTE) and machine- security services. Cloud services are (AREGNET). The price of residential to-machine (M2M) services, going also playing a vital role in Saudi Arabia’s ADSL broadband with speeds up forward. According to TeleGeography’s digital transformation journey, with to 10 Mbps went lower to BHD GlobalComms Database, Zain Kuwait IDC explaining that more than a third 20 in 2015 from BHD 80 in 2010, commercially launched its LTE of Saudi organizations have already and the data allowance increased network in November 2012; the 4G invested in cloud services. According to 150 GB from 50 GB. The study network currently covers 100% of the to IDC’s FutureScape Predictions, the showed that residential customers population. public cloud market in Saudi Arabia in Bahrain are starting to enjoy the will grow 44.5% year on year in 2016 benefits of ultra-fast broadband, or to total $63 million as an increasing broadband with download speeds Saudi ICT spending to number of end-user organizations above 100 Mbps. In general, migrate non-core workloads such as the prices of telecom services in top $35 billion in 2016 productivity and team collaboration, Bahrain continued to compare ICT (information and communications sales and marketing, and human capital well with other GCC and Arab technology) spending in Saudi Arabia management to the cloud. “Skills countries. Bahrain also improved will reach $35.9 billion in 2016 as shortages and the growing complexity during 2015 against developed organizations across the Kingdom of operating and maintaining IT countries that are members of have started to embrace digital infrastructure are both encouraging the Organisation of Economic transformation initiatives in an effort business leaders to consider remotely Co-operation and Development to optimize costs and improve their delivered services such as cloud as (OECD), comparing well particularly business process efficiencies. “The a viable cost-effective alternative,” for fixed broadband and mobile Saudi ICT market is highly competitive, Hamza Naqshbandi, senior research broadband prices, which are lower and only the most progressive service manager for IT services at IDC Middle in Bahrain than the OECD average. providers with strong capabilities East, Africa, and Turkey. “The improved The findings are supported by a around emerging technologies will availability of commercial datacenter separate report published recently, continue to grow,” said Abdulaziz Al- space - led mainly by telecom at the end of November, by the Helayyil, IDC’s regional director for operators - has been encouraging International Telecommunications Saudi Arabia, Kuwait, and Bahrain. “In a the consumption of cloud services; Union (ITU) titled Measuring the bid to optimize their costs and increase however, IT security concerns and Information Society Report . The their levels of operational efficiency, the changing threat landscape have report found that Bahrain made organizations are increasingly considerably hampered what could the most progress in the ITU’s ICT investing in transformative business have been an era of rapid growth Development Index (IDI) value initiatives, using technology to support for cloud services. As the largest IT between 2010 and 2015 among this transition. While 3rd Platform market in the region, and still relatively the 167 economies covered. The technologies such as mobility, cloud, unsaturated when it comes to cloud ITU also found that the fixed Big Data analytics, and social business services, Saudi Arabia represents a broadband services have become are finding increasing traction in Saudi considerable revenue opportunity very affordable in Bahrain, where Arabia, macroeconomic factors such for local, regional, and global service the fixed-broadband basket as low oil prices and regional instability providers, as a growing number of represents less than 2 percent of are expected to slow the strong end users will turn to cloud services to GNI. growth rates that the Kingdom’s ICT optimize their IT operations, both from market has become accustomed to a cost and efficiency perspective.” over the last few years. As such, we Zain Kuwait trials 4.5G have adjusted our ICT market forecast technology for 2016 down from $36.7 billion to $35.9 billion, which represents a more Zain Kuwait has achieved modest-than-usual growth rate of 3.8% download speeds of 1Gbps year on year.” IDC explained that IT in a trial of a 4.5G technology security is becoming a key component over its LTE mobile broadband of digital transformation strategies network, in cooperation with in Saudi Arabia, with a growing equipment vendor Huawei. Eaman

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Regulatory NEWS

Pakistan’s State Bank compared with Bangladesh, Egypt, India and Turkey. Pakistan also had the highest complains high taxes slow corporate tax rate for telecoms operators broadband growth among the five countries. The bank noted that the government’s new telecoms High taxes on Pakistan’s telecoms industry policy does not properly address the has curbed uptake as well as usage of industry’s concerns about high taxes, broadband services and left the country Express Tribune reported. The report lagging behind its peers in the region, reinforces the findings of a committee according to a report by the State Bank of set up by the Ministry of Information Pakistan. Mobile broadband penetration Technology that showed that the high increased from about 10 per cent to 18.5 tax burden slowed revenue growth and per cent last year, according to GSMA hampered the government’s effort to hold Regulatory Intelligence, while the country’s internet a 3G/4G spectrum auction. The committee penetration is only about 12 per cent, the proposed a tax relief package for the Updates report stated. Despite having a fairly high sector, which struggled last year with mobile penetration rate of 65 per cent, declining revenue after the government “the share of broadband mobile users in raised taxes and introduced a number Pakistan is still low”, the bank’s report said, of new levies. Three mobile operators — noting there is a large, untapped potential Mobilink, Telenor and Warid — earlier this in the broadband segment. The quarterly week united in urging the government to report summarized the tax regime the drop a proposal to impose sales tax on SIM industry faces: 19.5 per cent GST and cards and handsets. The Federal Board of 14 per cent withholding tax on mobile Revenue has proposed introducing a tax services; custom duty of PKR250 ($2.35) on the import and supply of SIM cards, on handset imports; 19.5 per cent tax on ProPakistani reported. The country already broadband internet services exceeding taxes the import and supply of handsets. 2Mb/s in Punjab; 18 per cent tax on Despite the heavy burden, operators’ data broadband bills over PKR1,500 in Sindh; revenue expanded more than threefold 10 per cent duty on equipment imports over the last five years and now accounts used for voice reception, switching and for a quarter of total turnover, the Pakistan routing of data; and a corporate tax of Telecommunication Authority said. 32 per cent. The report, which covers the July-September period, pointed out that the country’s tax rate (VAT or GST) for operators was the second highest

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Airtel nears 4G spectrum trading deal with Aircel – report India’s largest operator Bharti Airtel reportedly is close to finalizing a deal to buy 4G spectrum from smaller rival Aircel for about INR38 billion ($357 million) to expand its 4G footprint as mobile newcomer Reliance Jio prepares to launch 4G service nationwide. The agreement to buy Aircel’s 2.3GHz spectrum in eight service areas, where Airtel doesn’t currently own airwaves in that band, would expand its 4G spectrum holdings from 15 to 18 regions, the Telecom, and not the European through to 2014, with the telecoms Economic Times reported. A deal is Commission, Reuters claimed. The regulatory board also accused of failing expected by the end of Q1, sources newswire cited unnamed sources as to act on the alleged wrongdoings. told the newspaper. Competition in saying that the European Commission Conac’s Vice President, Garga Haman the country’s 4G market has intensified will play no part in the approvals Adji, told Bloomberg the regulator with the pending entry of Jio, the only process if a takeover deal is struck expects that Cameroon president Paul operator to own 4G spectrum across by the telcos. One of the sources Biya will order legal investigations India (22 service areas). After multiple added that “there’s no doubt” that over the matter to establish why delays last year, Jio said it will officially any deal would come under French “two ministries of his government launch 4G services by early March jurisdiction. Orange and Bouygues can afford to grant rebates to the and also recently closed spectrum Telecom revealed they were holding operators”. MTN and Orange officials deals with Reliance Communications merger talks earlier this month. Given are reportedly studying the report. (RCom). Number four RCom and that Orange is the biggest player in According to GSMA Intelligence, South Jio finalized a spectrum sharing and the French market, any deal would Africa’s MTN is estimated to have just trading alliance that will see RCom sell doubtless include the sale of assets, under 10.5 million connections in 800MHz spectrum in nine regions to possibly including spectrum and the market as of Q4 2015. Its closest Jio and both share bandwidth in the customers. While it seems unlikely that competitor is Orange with more than same band in 17 service areas. As part the European Commission wouldn’t 8 million connections, while CamTel of the agreement, the two companies interest itself in a deal that reduces lags behind with 27,095 connections. also plan to enable roaming between the number of mobile network Viettel’s Nexttel is the country’s third their networks within service areas. operators in the market to three from largest player with more than 3.6 They already have long-term deals four, it is possible that the telcos million connections. to share tower and fiber assets could iron out all competition issues nationwide. RCom recently paid the themselves, through the terms of the Department of Telecom INR53.84 merger agreement, and thereby avoid billion ($805 million) to ‘liberalize’ its EU Parliament makes interference from Brussels. It remains spectrum in the 800MHz band so it can to be seen whether Reuters’ sources recommendations on trade and share the airwaves with Jio. are correct though. In August Airtel acquired 100 per cent Digital Single Market of Augere Wireless Broadband, which The European Parliament has adopted owned 20MHz of 2.3GHz spectrum a number of recommendations on the in the Madhya Pradesh-Chhattisgarh Cameroon operators hit EU’s Digital Single Market strategy. region. While Jio has delayed its 4G with fraud claims The EP said in a statement that it plans to “co-legislate” with the European launch, Airtel has aggressively pushed Three operators in Cameroon have Commission on the DSM, which was 4G across the country and said back come under fire from anti-corruption first unveiled last year by the new in August it plans to expand its 4G regulators for allegedly defrauding EC. Most of the recommendations service, available in 45 cities and the state of $289 million, according adopted by MEPs in a large majority towns, to 296 urban areas. But less to Bloomberg. Market leader MTN, (551 for, 88 against, 39 abstentions) are than 700,000 of its 238 million mobile France’s Orange and state-owned in line with the proposals already made connections are 4G, according to CamTel are accused of evading taxes, the EC, such as putting an end to geo- GSMA Intelligence. royalties and receiving illegal tax blocking in order to increase access rebates in a report by the National to digital services across EU countries Anti-Corruption Commission (Conac). and ensuring equivalent consumer French authorities According to the report, released by protection for digital services whether commission chairman Dieudonne to examine Orange- purchased on- or offline. Other Massi Gams, the ministries of finance recommendations include improving Bouygues Telecom deal and post and telecommunications cross-border parcel delivery in order France’s competition authority will colluded with the operators by to stimulate international e-commerce be responsible for investigating any providing illegal tax rebates. The issue and removing barriers for small deal between Orange and Bouygues dates back to activities between 2010 businesses to adopt new ICT such as

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SAMENA TRENDS _ JAN 2016 SAMENA TRENDS _ JAN 2016 big data, cloud computing and the IoT. scheduled in his diary for January 12. benefit from and exploit opportunities MEPs also called for a review of the Among others, letters were sent to in the new digital economy,” said Chan ePrivacy directive in order to ensure the CEOs of BT, Deutsche Telekom, Yeng Kit, chairman of the IDA. “It will it’s consistent with the new EU data Telecom Italia, Orange, Vodafone, pave the way for a more harmonized protection rules. This is something Nokia and Ericsson. The European regulatory framework, and integrated long called for by telecom operators, Commission has announced various approach to industry development,” who have complained they are subject initiatives designed to encourage 5G added MDA chairman Niam Chiang to double regulation under both deployment and is reported to be Meng. Meanwhile the GTO will lead the ePrivacy directive and the more worried about how economic rivals Singapore’s digital transformation general data protection rules. MEPs such as China, Japan and South Korea efforts in the public sector, also want the EC to do more to address have given the technology a priority. encouraging citizens to participate the emerging ‘sharing economy’ of For instance, China’s Ministry of in the co-creation of digital public services such as AirBnB and Uber, in Industry and Information Technology services. It will also help government order to ensure consistent consumer (MIIT) this week announced a agencies take advantage of new protection across EU countries roadmap for testing 5G. However, technology, such as robotics, artificial amid diverging national policies to the development of 5G is not just intelligence, the Internet of Things date. Other topics addressed in the a matter of competition between (IoT) and big data, among others. The resolution include copyright, telecoms, countries and economic blocs, it’s also restructuring is due to begin on April VAT rules, audiovisual media, e-skills, about collaboration. The EC signed an 1. e-government, and employment agreement in September with China rights. The parliament’s resolution will to make “5G a reality by 2020” and has feed into the DSM legislative proposals similar agreements with South Korea ARCEP warns of expected from the EC before the end and Japan. of the year. competition issues in Orange/Bouygues deal Singapore to restructure Sebastien Soriano, head of France’s EC urges mobile industry telco, media watchdogs Regulatory Authority for Electronic Communications and Posts (Autorite to hurry up on 5G Singapore announced it will restructure de Regulation des Communications Gunther Oettinger, the European its telecoms and media regulators in Electroniques et des Postes, ARCEP), commissioner for the digital economy, light of the convergence of the two has warned that reducing the number called CEOs from Europe’s leading sectors. Due to launch in the second of operators in the market could be operators and vendors to a meeting half of 2016 the Info-communications interpreted as ‘regression in relation today about progress on 5G. Oettinger Media Development Authority (IMDA) to the introduction of competition’, wrote to the CEOs of Europe’s ten and the Government Technology Les Echos writes. Earlier this month leading telecoms firms to say “Europe Organization (GTO), will replace the French telecoms provider Orange and must be a leader in this area”, according Info-communications Development domestic conglomerate Bouygues to the Financial Times. The letter adds Authority (IDA) and the Media entered into a confidentiality that the EC chief wants to create Development Authority. The IMDA will agreement, which marked the “closer EU co-ordination to achieve develop and regulate the converging beginning of official negotiations a timely deployment of 5G” and to telecoms and media sectors in the in regards to Orange’s acquisition interests of consumers of the latter’s telecoms and media and enterprises, said assets (excluding the FT1 channel); a statement from the deal is valuing Bouygues Telecom Singapore’s Ministry of at roughly EUR10 billion (USD10.9 Communications and billion). In an interview with the Information (MCI). The domestic newspaper, Mr. Soriano said: government also plans ‘If the [Orange/Bouygues Telecom] to form the Personal transaction goes ahead, it cannot result Data Protection in strengthening Orange’s position, Commission, which especially in markets where it is the will be part of the leader … the incumbent [operator] IMDA, and will take is already very strong.’ Mr. Soriano responsibility for added that if French authorities are maintaining public designated to oversee the transaction confidence in the way (instead of European competition the private sector uses regulators), ARCEP will give its ‘expert personal information. advice’ to the Competition Authority “The infocomm (Autorite de la Concurrence), while landscape has evolved paying ‘special attention to markets develop a “home market” in Europe over the years, and the pace will where competition is still limited, for 5G-based products and services. quicken with growing infocomm and especially for corporate customers Oettinger tweeted on 8 January media convergence. Our government and in rural areas.’ Further, the official about “several important meetings agencies responsible for infocomm highlighted that ARCEP – which has next week about 5G, Industry40 and media must ensure they are a ‘direct veto power’ on frequency and broadband”. The 5G meeting is optimally structured, to help Singapore

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issues – could block the transfer of Free Basics program as an example a joint venture of Deutsche Telekom licenses between operators and even of a zero-rating plan that should be and Orange Group) is not expected compel operators to return frequency prohibited. It said commentators have to result in a substantial lessening of authorizations to the state. falsely claimed that Facebook uses the competition (SLC) in any of the UK’s data obtained from developers using telecoms markets, including in relation the Free Basics program to enhance to the supply of retail mobile, wholesale Net neutrality: Regulator Facebook products and improve mobile, mobile backhaul, wholesale advertising. broadband and retail broadband received only 21 services. As part of its investigation, counter comments to its the CMA inquiry group reportedly South Africa’s telecoms looked at how the tie-up would affect consultation competition in a number of different Telecom regulator TRAI only received committee to debate areas of the telecoms sector, while 21 comments from individuals regulation of OTT also examining how the merger and organizations countering 24 might affect competition for services lakh submissions over its paper on services to consumers which both companies differential pricing of data, a key aspect South Africa’s Portfolio Committee currently provide. Specifically it was of Net neutrality. Telecom operators, on Telecommunications and Postal noted that consideration had been including Airtel, Vodafone, Idea Services is planning to hold hearings given to whether the tie-up might Cellular and Reliance Communications, to determine whether policy alter the merged company’s incentives through industry bodies, Cellular interventions are required to govern to continue to supply services to Operators Association of India (COAI) over-the-top (OTT) VoIP services – other communications providers on and Association of Unified Telecom including Viber, WhatsApp and Skype a wholesale basis. In total, the inquiry Service of India (AUSPI), countered – in the country, TechCentral reports. group considered ten areas of concern inputs opposing the idea of pricing the According to the committee, the (or theories of harm) outlined in an Internet services. “Price differentiation hearing will consider the impact of OTT issues statement published in July will allow TSPs to cater to specific services on competition and whether 2015, and the overall impact of the consumer requirements, including there is a need for such providers to be merger on the UK telecoms sector, facilitation of access to those segments defined as telecoms services providers with the group unanimous in its final that are currently unconnected or or telecoms infrastructure providers; report in finding no SLC in relation poorly connected. Price differentiation the committee will also debate to any of the markets reviewed. is a widely adopted business practice whether such applications should be Commenting on the development, used in many industries,” COAI and subject to licensing and regulatory John Wotton, Inquiry Chair, said: ‘Since AUSPI said in their joint counter obligations. While MTN South our provisional findings, we have comments to TRAI. The Telecom Africa, Vodacom and Telkom have taken extra time to consider responses Regulatory Authority of India invited all previously called for regulations in detail but the evidence does not public comments to firm up its views governing OTT services, Cell C has show that this merger is likely to cause over services that lead to differential warned that such legislation ‘could be significant harm to competition or pricing of data and January 14 was to the detriment of the industry and the interests of consumers … We have the last date for submitting counter consumers at large’. heard wider concerns about the sector, comments on the same. Internet including about Openreach and its Democracy Project (IDP), one of the regulation by Ofcom. Our job has stakeholders, countered the TSPs, BT, EE merger gets been to examine the specific impact saying telecom operators’ comment of this merger on competition and on Internet-based calling services regulatory clearance consumers and, where relevant, we’ve or VoIP to charge different rates for from CMA looked at how these issues might be the Internet and the current debate affected by the merger. There is also an BT’s proposed acquisition of UK mobile should not be mixed up. Another ongoing Ofcom review into the sector network operator EE has been given entity, Internet Service Providers and its future regulation, where such final clearance by the Competition Association of India changed its concerns may have more relevance.’ and Markets Authority (CMA), the stance slightly in counter comments, latter has announced, following a saying a blanket ban on non- provisional decision to approve the discriminatory data differential tariff merger of the two companies back in Court grants RCOM would have an adverse impact on the October 2015. In announcing its final proliferation of Internet service and reprieve in spectrum ruling, the CMA noted that a ‘range may affect tariff innovation. “In light of concerns were raised by other usage case of the above, we believe that data operators and customers in the UK The Kolkata High Court has given differential tariffs should be permitted telecoms industry’, while saying its Reliance Communications (RCOM) subject to this condition that such assessment of the matter had been permission to proceed with the differential tariff regime should meet ‘complex, detailed and rigorous’. liberalization of its 850MHz airwaves the TRAI prescribed principles and Having considered responses to in 16 circles without submitting a TRAI continues to securitize each and its provisional findings, as well as bank guarantee for the one-time every differential tariff plan,” ISPAI evidence gathered during the inquiry, spectrum charge, the Economic Times said. While favoring differential pricing the CMA inquiry group has argued reports. Under the rules governing the for data services, Facebook countered that the merger of BT and EE (currently sharing or trading of airwaves in India, comments that have singled out the operators are first required to pay the

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SAMENA TRENDS _ JAN 2016 SAMENA TRENDS _ JAN 2016 government the market-determined Secretary Joe Mucheru said: “We 4G-suitable 700MHz spectrum. CCT price for any spectrum which they did want the businesses of OTTs to CEO Averad Penn commented: ‘We not purchase via auction, a process actually be based here. There is a are very thankful for this decision and known as ‘liberalizing’ the spectrum. huge debate as to whether we will hope it paves the way for a fair and Earlier this week the Department of be billing or charging Netflix, and I equitable spectrum award process Telecommunications (DoT) set a price think OTT should feel comfortable to that will allow us to expand our of INR69.53 billion (USD1.04 billion) invest in Kenya. “The government is telecommunications services in the for RCOM to liberalize its airwaves, responsible for regulation; policy will BVI’. including a market price of INR53.84 come from government, then it will billion for the frequencies and a be regulated, but this will take some spectrum usage charge of INR15.69 time. Regulators have to wait,” he is Calls for new single billion. RCOM has questioned reported as saying in The Daily Nation. the legality of charging the latter, EU telecoms regulator however, and the matter is pending renewed by European in various courts. In the meantime, Reliance Comm asked to the Kolkata High Court has given Parliament committees RCOM the green light to forge ahead pay price for liberalizing The Committee on Industry, Research with the liberalization process whilst 800 MHz spectrum and Energy and Committee on the question of spectrum usage fee the Internal Market and Consumer The Department of is resolved. The decision will enable Protection made the recommendation Telecommunications (DoT) has RCOM to go ahead with a rumored in a motion it has tabled for a new sought about Rs 5,600 crore from spectrum sale and sharing deal with European Parliament resolution on telecom network operator Reliance Reliance Jio Infocomm (RJIL), expected the subject of the EU’s work towards a Communications for liberalizing to be announced next week. digital single market. Resolutions that 800 MHz spectrum in 16 mobile are voted through by the European circles, PTI reported. DoT issued a Parliament are not binding but they notice on December 22 and asked often express the law making body’s Kenyan Government the Anil Ambani promoted Reliance support for policies and willingness Communications to pay within a intervenes in Netflix to adopt new legislation that the month. Reliance Communications European Commission could put regulation row applied for liberalizing its 800 MHz forward that reflects those plans. In An intervention in the regulatory row spectrum in 20 circles a few months their ‘Towards a Digital Market Act’ in Kenya over the recent introduction back. Reliance Communications is yet report the two committees said the of Netflix’s video streaming service has to receive any notice for the remaining Commission should put forward plans been made by ICT Cabinet Secretary four circles, where market determined for a “single telecom regulator” in an Joe Mucheru. Discussions that will price is not available. The four circles effort to ensure telecoms regulations lead to the drafting of regulations for are — Kerala, Karnataka, Rajasthan are applied uniformly across the over-the-top (OTT) service providers, and Tamil Nadu. The DoT already EU, and also rejected the idea that which will encourage their presence, sought telecom regulator TRAI’s views competition rules need to be watered have begun, reports The Daily Nation. on liberalization of spectrum in circles down to encourage investment in The comments follow a difference where market determined price is not new telecoms infrastructure. The of opinion by the Communications available. Commission is currently reviewing EU Authority of Kenya and the Kenya Films telecoms rules. It held a consultation and Classification Board (KFCB). The exercise in the autumn last year and KFCB says Netflix should apply for a Court backs CCT in has said it intends to use the views local broadcasting license to ensure it it gathers to inform new “regulatory is subject to Kenya’s film classification 700MHz spectrum proposals” that it expects to publish system, while the Communications dispute this year. The report said: “The Authority says that as Netflix is an OTT British Virgin Islands (BVI)-based European Commission should ensure content provider and does not control Caribbean Cellular Telephone (CCT) has that the regulatory framework drives the transmission of its material, it confirmed that the Eastern Caribbean competition and thereby private is impossible to license it locally or Supreme Court has backed its legal investments in networks. It does not regulate its content – unlike a cable case against the Telecoms Regulatory require the weakening of competition TV company. “Netflix is an over-the- Commission (TRC) regarding the rules as there is little evidence of a link top service provider, and subscribers cellco’s exclusion from last year’s between consolidation of companies get its content through streaming. As ‘Spectrum Award 2015’ process. Last and an increase in investments. The such, the Communications Authority October, TRC chief executive Guy revision of the telecommunication will not ask them to apply for a Malone announced that only two of framework should aim at ensuring license,” said Francis Wangusi, CEO the country’s three mobile operators – the rules are fit for the digital age Communications Authority of Kenya. Digicel and LIME – had applied for 4G and drive competition and innovation “Should Netflix partner with local spectrum, prompting locally-owned for over-the-top services and providers or avail its content on the CCT to take legal action. According to telecom operators, to the benefit of digital broadcasting platform where a report by BVI News, the company consumers.” “Incentivizing private its signals can easily be accessed, claimed that its application had been investments in networks also requires then it will be required to adhere unfairly rejected by the TRC, resulting for the European Union to have a to local broadcasting regulations.” in it being prevented from bidding for harmonized framework for spectrum Diffusing the argument, ICT Cabinet allocation, to give legal certainty to

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investors. The European Commission MoIT Proposes Relief has recommended the rationalization should urgently build momentum with of taxes for Telecom sector, but it member states to move forward with Package for Telecom is unclear that what tax ratio it has such proposal. Last but not least, the Sector in Form of Tax proposed to the government in its European Commission should propose report. Access to broadband services a single telecom regulator to ensure a Rationalization in the country was 3 percent before the uniform application of rules,” it said. A relief package for the telecom launch of 3G/4G services, which is now The European Parliament committees sector, proposing major incentives around 15 percent. According to an said that the “role, capacity and in form of tax relaxation is on the international study, a country can reap decisions” of the existing Body of cards, senior government officials the benefits of internet access towards European Regulators of Electronic confirmed to ProPakistani. State economy once the access to services Communications (BEREC) should be Minister for Information Technology, crosses the mark of 20 percent. The strengthened “to achieve consistent Anusha Rehman, had constituted a committee raised the issue that federal application of the regulatory three member committee seeking its government imposed 14% WTH on framework, ensure oversight in the input for evaluation and proposals for internet usage in July 2015 and then development of the single market rationalization of taxes on telecom there were provincial governments and resolve cross-border disputes” in sector. The committee was tasked to charging up to 19.5% sales taxes on the area of telecoms. In a speech in study the impact of taxes on telecom internet and other telecom services. October 2015 EU commissioner for sector, revenues of telecom operators Committee said that internet uptake the digital single market Andrus Ansip and user behavior after government is at early stages and such massive said that telecoms networks that increased taxes on telecom services. taxes are curtailing the growth and can deliver “top-class connections” Consequently, the committee was they must be withdrawn immediately. across the whole of the EU “need also tasked to prepare a proposal The committee further pointed out to be built, quickly – and with the with its recommendations for tax that telecom sector is on federal appropriate infrastructure”. He said rationalization for the sector. The legislative list, however provincial the telecoms regulations review would look to support the funding of those projects by companies. “Tackling the huge investment gap to fund the next-generation networks that Europe needs is a major long-term challenge,” Ansip said. “The public purse cannot be expected to meet this shortfall. This is why the ongoing review of EU telecoms legislation will look closely at how to incentivize and leverage more private investment.” The idea of a single regulator for the EU’s telecoms market has been mooted before. In 2013 the European Commission published plans to reform a raft of telecoms rules which were aimed at establishing a single committee was comprised of Chairman taxes on telecom services (GST) seems EU telecoms market. Those plans Pakistan Telecommunication Authority to be interfering and are unjustifiable. were eventually watered down with (PTA) Syed Ismail Shah, Member The committee has reportedly the eventual reforms being focused Telecom, IT Ministry, Mudassir Hussain recommended their withdrawal. The on curbing roaming charges and and Member Legal, IT Ministry, Ms. three members committee has also setting new net neutrality laws. Prior Ameena Sohail. After intense study reportedly proposed industry status to the Commission’s 2013 proposals and workout, the committee has for the industry. If the sector wins the being published the Commission’s finalized a report and has submitted industry status, its tax obligations in Directorate General for Competition it to the IT Ministry. The committee terms of customs duty, sales tax and (DG Comp) had expressed support for mainly studied the tax ratio during income tax would significantly reduce. a “true pan-EU regulator” of telecoms. 2012-13 and made a comparison of The government approved a new That suggestion did not, however, the industry growth during that time telecommunication policy last month make it into the Commission’s official as compared to growth during 2013 till with the objective to improve the proposals at the time. DG Comp had 2015 when new taxes were imposed. sector’s efficiency and service delivery said that establishing such a regulator According to sources, IT Ministry will but refused to give it the status of “would be the most effective solution submit the report to Finance Ministry industry, which was desperately to remove national divergences” in the for formal approval and to seek relief needed to get relief from heavy taxes. way telecoms rules are applied. for the telecom sector. The committee While MoIT has done a good job in in its report pointed out that increased preparing the proposal, it is yet to be taxes are negatively impacting the seen how Ministry of Finance is going sector. It has further pointed out that to respond to such recommendations heavy taxes have badly affected the and if any relief in form of taxes will be prospects of upcoming 3G/4G auction. granted to telecom sector at all or not. According to sources, the committee

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Let Palestinians control control over its telecommunication military assault in 2014. Palestinian infrastructure in the West Bank investors are further restricted by their ICT resources (excluding Jerusalem) and the Gaza an onerous process to import ICT At least 140 Palestinians and 20 Strip while ensuring that all incoming equipment, including approval from Israelis have been killed in the latest and outgoing communication to and the Israeli Ministry of Communications flare-up of violence that began on from the Palestinian territories goes for each shipment, up to 30-day waits Oct. 1. While the world’s attention is through an Israeli switch. In other and delays for products listed as fixated on the crisis, Israel and the words, Israel has retained complete dual-use items. The U.S. government Palestinian Authority quietly signed control, constraining access to the and major American companies have a long-awaited agreement on Nov. electromagnetic spectrum and made significant investments in recent 19 allowing Palestinian telecom imports of equipment. The lack of 3G years and remain key partners for ICT companies to provide 3G mobile mobile services has cost Palestinian growth in the Palestinian territories. services in the occupied territories. It is operators an estimated $80 to $100 For example, from 2008 to 2012, Cisco unclear whether or how the intensified million annually. Whereas Palestinian invested $15 million to boost the violence will affect this implementation, mobile operators have struggled Palestinian ICT industry, drawing the but it is urgent that Israel lift the with limited 2G technologies for interest of other American companies many technological barriers that years, in January Israel released 4G — including Google, Intel, Hewlett- are still in place. Information and mobile broadband radio frequencies Packard and Microsoft. Without communication technology (ICT) to six Israeli companies. Israel’s full Palestinian control over the ICT is an important tool for the social, restrictions are not limited to the infrastructure, any investment in the Palestinian telecom network and the sector risks becoming a project to manage the occupation, rather than a catalyst for Palestinian economic growth. The ICT sector is a key engine of development. Israeli Prime Minister Benjamin Netanyahu regularly touts the vitality of his country’s high- tech sector in positioning Israel as a major economic power and high- tech corridor. But in the occupied territories, the ICT industry serves as an example of the effect of Israel’s military occupation and asymmetrical relationship with the territories under its occupation. One thing is certain: The Palestinian economy has already paid a high price trying to harness the country’s economic resources. Israel must immediately lift its restrictions on Palestinians’ communications infrastructure and allow them to utilize their resources to their full potential. economic and political development ICT industry. Israel has built 3G towers India close to freeing up of the occupied territories. There in its settlements across the West are an estimated 250 Palestinian ICT Bank and, in some cases, on privately 150 MHz of spectrum operators and approximately 10,000 owned Palestinian land, in violation DoT reportedly expects defense qualified ICT workers. And at least of international law and previous ministry to vacate 1700-MHz, 2-GHz 1,000 Palestinian students graduate agreements, which prohibit Israel bands in next three months. India is in ICT-related vocations each year. from using the Palestinian spectrum close to freeing up an extra 150 MHz In 2012 the ICT sector accounted for its economic benefit. By contrast, of mobile spectrum, bringing to an for 5.6 percent of the Palestinian Palestinian operators are prohibited end a saga that has dragged on for gross domestic product, helping from building ICT towers and switches almost a decade. According to a Press drive some development despite the in most of the West Bank, including Trust of India report this week, the prolonged military occupation. But areas that are supposed to be under Ministry of Defense is expected to Israeli control of and restrictions on the control of the Palestinian Authority. complete phase one of vacating the the sector have limited its potential As for Gaza, its telecom infrastructure frequencies, located in the 1700-MHz for the beleaguered Palestinian is wholly dependent on Israel. The fiber and 2-GHz bands, in the next three economy. Since signing the Oslo optic cable that connects Gaza with months, turning them over to the Accord in 1993, Israel has maintained the world goes through Israel. Gaza’s Department of Telecommunications a tight grip over the ICT sector, to telecom structure has thus become (DoT). Phase one of the process the detriment of the Palestinian a space of control and surveillance, covers spectrum in six-to-seven economy. As part of the deal, Israel as reflected in the calls and text of India’s telecom circles, the PTI gave the Palestinian Authority limited messages that the Israeli military report said. The DoT and the MoD sent to Palestinians in Gaza during its have been discussing freeing up the

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airwaves since 2007. In 2009, the two coverage, and other aspects of mobile to this pilot. These solutions, combined departments signed a memorandum communications, according to ITU. within a unique state-of-the art LSA of understanding (MoU) under which Globe General Legal Counsel Atty. user framework enabled by Qualcomm the defense ministry would vacate 150 Froilan Castelo said that giving active Technologies and applicable to 5G, are MHz of the 300 MHz of 1700-MHz and and operating telecommunications a powerful world first. 2-GHz spectrum belonging to it, while companies access to the 700 MHz The roles of the project participants the DoT agreed to build a dedicated spectrum will allow the industry to are as follows: defense network. That network is still provide broadband and data services • Ericsson: Radio Access solution being rolled out. However, to avoid at faster speeds and in a more cost- including new Carrier Aggregation further delays to freeing up spectrum efficient manner. Castelo said that as technology and Radio Dot for mobile services, the government early as 2005, Globe already wrote System, enabling innovative set out a spectrum harmonization to the National Telecommunications small cell deployments for high plan, under which the defense ministry Commission (NTC) requesting for performance indoor voice and was allocated spectrum bands for an allocation and assignment of data coverage and capacity. exclusive use by the MoD. That frequencies within the 700 Mhz and allowed the defense ministry to push 800 Mhz bands for its broadband • RED Technologies: provided a ahead with making the remaining wireless network, but NTC did not dynamic spectrum management frequencies available to the DoT. Once act favorably on its request. The ITU’s platform based on live radio the process is complete, the spectrum move on the 700 MHz spectrum is environment maps and self- will eventually be sold off to mobile supported by the joined by the GSMA, organizing networking engines. operators. which said that maximizing on the • Qualcomm Technologies unused 700 megahertz (MHz) mobile provided 4G devices powered by frequency spectrum can potentially a Qualcomm®SnapdragonTM Philippines telecoms increase the impact of a country’s processor industry shows concerns gross domestic product (GDP) by The French regulatory authority ARCEP tenfold, Globe said. The group’s Mobile and the Ministry of Defense authorized over the current Economy Asia study also found that the use of the 2.3-2.4 GHz band for the allocation of 700 MHz the full use of the spectrum has the pilot. “This initiative touches the core of potential to create an additional 2.1 the French telecoms industry and has spectrum million jobs for the Asia-Pacific region the potential to considerably enhance by 2020. According to an official statement the consumer mobile experience in released by Globe Telecom, there France as well as generate significant is unfair distribution of 700 MHz economic return. The participants spectrum in the country. San Miguel The first Licensed Shared involved are demonstrating Corporation currently holds 90 percent Access (LSA) pilot in commendable foresight and inventive of the 700 MHz spectrum across the strength,” French Minister for Digital country. Major telcos in the Philippines France Affairs, Axelle Lemaire. “Spectrum are now approaching authorities to The most technically extensive pilot availability is a core condition for distribute the spectrum evenly among worldwide of the recently devised flourishing technology adoption and major players. Both the Philippine spectrum sharing solution Licensed innovation. This LSA pilot is therefore Long Distance Telephone Company Shared Access (LSA) was launched in a vital step towards the realization of (PLDT) and Globe Telecom have Paris today by French Digital Affairs Europe’s Digital Single Market,” said urged National Telecommunication Minister, Axelle Lemaire, at the office Wassim Chourbaji, Vice-President of Commission (NTC) to distribute the of the award-winning French start-up, Government Affairs at Qualcomm spectrum evenly among industry RED Technologies. Under the pilot, Communications. “This collaboration players. PLDT head of Regulatory spectrum allocated to the French will maintain French leadership in Affairs Ray Espinosa recently said that Ministry of Defense in the 2.3-2.4 GHz LSA. RED Technologies is proud to the company would lobby directly band will be shared using Ericsson’s enable this and sees the pilot as an with President Aquino on the issue, radio access network. Pioneering opportunity to keep on innovating and that its external legal team was technology from RED Technologies, in dynamic spectrum management,” preparing to launch legal action Ericsson and Qualcomm Inc. underpin Michael Abitbol, Managing Director against the NTC, San Miguel and any this pilot. The success of the French of RED Technologies. “Sufficient of its partners unless the spectrum LSA pilot should lead to the release availability of licensed spectrum will was shared. The 700 MHz spectrum of high volumes of licensed spectrum be a key asset to allow the deployment has been regarded crucial for the in France within the next 24 months, of 5G services, with the expected growth of mobile broadband. At the further enabling market growth, capacity and QoS requirements. LSA 2015 World Radiocommunication competition and innovation. On a is an agile technology approach to Conference (WRC-15) last November, wider scale, the application of LSA to boost capacity. The combination of ITU formally moved to allocate the the 2.3-2.4 GHz band across Europe licensed and unlicensed bands is a 700 MHz band to the global mobile will release enough spectrum to key 5G technology development area” industry. ITU believes that utilization enable innovative 5G services for said Thomas Noren, Vice President, of the 694-790 MHz frequency for all EU citizens. The combination of Head of Radio Product Management mobile broadband will go a long Ericsson’s latest Carrier Aggregation Ericsson. way in enabling the bridging of the technology with RED Technologies’ digital divide worldwide. It will benefit leading spectrum assessment and handsets, supply chain, roaming, rural management technologies is unique

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UK Telecoms Regulator How Ofcom will determine penalty Additional guidance from EU/UK amounts competition law Adopts New Penalty The new guidelines have confirmed all The new guidelines fail to clarify the Guidelines of the changes proposed by Ofcom in way in which Ofcom will apply the its consultation document. The central above factors when calculating a OFCOM, the UK telecoms regulator objective of the new guidelines is penalty for sector specific regulation has adopted new guidelines setting to impose penalties that reflect the violations. However, Ofcom explicitly out how it proposes to determine penalties that it may impose for violations of sector specific regulation, including the Communications Act. In summary, the new guidelines:

Give OFCOM greater flexibility to (i) impose higher fines for serious violations and for larger companies and (ii) reduce fines for those companies that take concrete compliance steps. Bring OFCOM penalty guidelines more in alignment with how it imposes penalties for EU/UK competition law violations. Apply to both ongoing and future investigations. All companies subject to OFCOM regulation in the UK are potentially exposed to a higher level of financial seriousness of the infringement and notes that those factors are “similar” risk in the event of an investigation by that will act as an effective incentive to to those it takes into account when OFCOM for alleged violations of their comply. In doing so, Ofcom will have setting a penalty under EU/UK regulatory requirements. Companies regard to the following factors: competition law. Ofcom may use should therefore take immediate steps the same approach when calculating to assess and reduce such potential penalties for violations of sector exposure based on the factors The seriousness and duration of the specific regulation and competition contained in the new guidelines, violation law. summarized below. The degree of harm suffered by customers or competitors. Implications for businesses Background Any gain made as a result of the violation. The new guidelines are expected Ofcom has powers to punish to result into higher fines for Whether appropriate steps have been regulated telecommunications noncompliance with Ofcom taken to prevent the violation. providers that violate their relevant regulatory requirements. At the same regulatory requirements, including The extent to which the violation time, technologies are converging, their authorization conditions. When occurred deliberately or recklessly, regulations are fast-changing, and determining the level of penalties, such as whether senior management the lines between regulated and Ofcom must comply with certain knew, or ought to have known, about unregulated activities are increasingly statutory limits and must ensure that the offending conduct. blurred. The combination of these the penalties are appropriate and Whether the violation continued, or two factors – higher penalties and proportionate to the matter in respect steps were taken to end it, once it was uncertainty as to the applicable of which they are imposed. uncovered. regulatory requirements – creates Any steps taken for remedying the increased enforcement risk for all Ofcom also is required to publish the consequences of the violation. regulated companies (particularly in the telecoms sector) caught in guidelines it proposes to follow in Recidivism. setting the amount of penalties. The an Ofcom regulatory investigation. The extent to which the company has previous version of such guidelines Therefore, appropriate concrete cooperated with Ofcom during the was adopted in 2011. Given the compliance steps should be taken to investigation. increasing number of enforcement try to reduce any such risk exposure. cases and complaints over the years, Although Ofcom will consider all of Ofcom became concerned that these circumstances to determine relatively low fines was contributing to the appropriate and proportionate ongoing noncompliance and lack of amount of any penalty, the new deterrence. Therefore, in September guidelines state that Ofcom will adjust 2015, Ofcom launched a consultation the penalty to take into account “the aimed at revising the 2011 guidelines, size and turnover” of the company which resulted in the adoption of the under investigation; that is, Ofcom new guidelines. may impose a larger penalty on a larger company.

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A snapshot of regulatory activities in samena region

and transparency and efficiency Afghanistan will increase in various government Dr. Mohammad Najib Azizi administrations.” Mr. Abdulrazaq [Afghanistan Vahidi minister of Communications and Telecommunication Information Technology (MCIT) speaking Regulatory Authority (ATRA)] at the meeting stated: “By having these agreements singed, 70% of paper work Ministry of Communications and in public administrations will be done Information Technology (MCIT) signed through electronic means within coming a total of 10 agreements in the field Regulatory two years.” He then, added: “No one of E-Governance cooperation with 9 can deny the advantages and impacts ministries and also the Independent Updates of technology in one’s life and day to Administrative Reform and Civil Service day affairs of the governments. At this Commission during a press conference stage, we are only focusing on connecting which was held at the office of the electronic and management information president’s special representative for good system inside government agencies but governance and reform. At the beginning for sure, we will expand this gradually of the Conference Mr. Ahmad Zia Masood to private sector as well.” According to welcomed the government high ranking minister of MCIT, with the introduction of official and spoke about the importance e-government, time management will be e-governance for fighting corruption. executed, opportunities and vulnerabilities He emphasized “It is impossible to fight are controllable, and costs will be corruption without the use of ICT and reduced, the quality and speed of service e-governance. Turning to e-governance delivery to the people will be improved, and use of modern technology is the only transparency and accountability will and last option to combat the corruption,” arise. Mr. Vahidi noted that current the He added. Mr. Masood said that currently MoUs signed elaborate responsibilities we are witnessing that old administration of MCIT and the receiver of the services. cannot meet new requirements He added that based on MoUs, MCIT and, added that “ By introduction of was responsible for providing technical e-government initiatives such as today, consultations, standardizing technical corruption and bureaucratic steps-that systems of departments, providing advice causes disorder and fatigue will decrease,

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on simplifying administrative procedures, training (RIPE NCC), a Regional Internet Registry (RIR) providing and technical capacity building in the administrations, global Internet resources and related services (IPv4, IPv6 planning of information technology services, system and AS Number resources) to its members in Europe, the management from data center and etc. It is noteworthy, Middle East and parts of Central Asia.. A total of 30 private in order to launch e-government program, MCIT has and governmental bodies in the sector participated in hired and introduced 10 information technology experts the workshop. In this context, Eng. Mohammed Abdulla called as the Chief Information Officers(CIOs) in ministries Alnoaimi, TRA’s Director of Technical and Operations said, of Finance, Foreign affairs, Interior Affairs, Information “ The implementation of IPv6 will contribute positively and Culture, Commerce and Industry, Agriculture and in accelerating the progress of our future plans that Livestock, Public Health and Independent Administrative are aimed at expanding and extending our networks Reform and Civil Service Commission) by co-finance of and interconnected services for the public and private Development Program of the United States of America sector in the kingdom of Bahrain. Due to the significant (USAID). (January 12, 2016) mcit.gov.af impact of this version, TRA is keen to communicate and cooperate with private and governmental bodies to adopt IPV6 in all their networks and services”. Eng. Algeria Alnoaimi added “The core objective of the IPV6 training President: Mr. Toufik Bessai is to allow the participants to recognize the importance [Regulatory Authority for Post & of adopting this latest internet protocol in their Telecommunication (ARPT)] networks, build technical capacities to accommodate the applications and services, and ensure the transition The Regulatory Authority for Post and to the latest version within the coming years. Upgrading Telecommunications (ARPT) has revealed the results of to IPV6 is one of the initiatives launched by TRA with the a tender for authorizing operators for the provision of aim of facilitating services provided by the government universal telecoms services in the country. Out of the and empowering the kingdom of Bahrain to lead the four companies that submitted bids for the concessions region within the ICT sector”. “We are enthusiastic about – Algerie Telecom (AT), Algeria Telecom Mobile (Mobilis), empowering the local community, which comes within Ooredoo Algeria (Nedjma), and Optimum Telecom our strategic partnership with the TRA Bahrain. This Algerie (OTA, Djezzy) – the regulator has approved can translate into positive gains in terms of capacity three (AT, Mobilis and OTA), while Ooredoo’s bid was and talent building. The training course provides the deemed too expensive. The authorizations will allow the kingdom technical people with a unique opportunity successful bidders to provide basic telecoms services to become experts in IPv6 and support real knowledge (wireless or fixed) and internet access at affordable exchange for IPv6 deployment in Bahrain and the Middle prices to underserved areas. Under the first stage of the East region,” said Paul Rendek, Director of External Universal Telecommunications Service (UTS) program, Relations at the RIPE NCC. (January 27, 2016) tra.org.bh a total of 97 communities in 28 wilayas (regions) in Southern Algeria (towns with population of between 500 Bahrain’s Batelco has announced the deployment of and 2,000 people) and Northern Algeria (with population the first LTE Air site in the region in collaboration with of between 1,000 and 2,000) will gain access to telecoms Ericsson. Ericsson AIR is a solution that merges two services. (January 26, 2016) telegeography.com functions into an integrated device including all the units required to provide mobile coverage - Antenna- The Regulatory Authority for Post and Integrated-Radio (AIR) solution. Batelco is implementing Telecommunications (ARPT) has launched a tender for the solution in line with its aim to use smaller mobile three 4G mobile broadband licenses. The regulator has base towers which are less noticeable, thereby enhancing invited all interested parties to submit their bids for the environment while also expanding coverage to participation in the auction from January 10 until January more areas. In addition to large cells that dominate 13 by paying a DZD100,000 (US$928) fee. ICT Minister today, the new mobile towers also use fewer units and Imane Houda Feraoun disclosed earlier this week that fewer interconnections compared to traditional towers. the successful bidders will be revealed on May 17. Going Batelco Bahrain CEO, Muna Al Hashemi has praised the forward, the government will grant the licensees a period solution which will enhance the quality of service and of three months to obtain the required equipment, with benefit customers greatly. “For mobile subscribers, the the launch of commercial 4G services expected to take Air base stations, which are compatible with 2G, 3G and place in the last quarter of 2016. Further, the minister 4G networks, can improve coverage in environments that added that under the license terms and conditions, the were difficult to reach with traditional mobile towers.” cellcos ‘must provide a minimum coverage of 10% in (January 26, 2016) cellular-news.com the provinces of their choice in the first four years, and expand to the southern regions of the country within Huawei is growing rapidly in Bahrain and has gained three years’. (January 7, 2016) telegeography.com significant market share in the Island nation, a top official stated. The official added that it aims to strengthen Bahrain its position even more. Globally, the company made Chairman: Dr. Mohammed Al-Amer mammoth sales last year as it shipped over 100 million [Telecommunication Regulatory Authority smartphones worldwide. The impressive performance (TRA)] has placed it third globally in market-share for smartphones. Speaking to DT News, Sandeep Saihgal, The Telecommunications Regulatory Authority in Vice President of Huawei Consumer Business Group Bahrain (TRA) organized an IPV6 training workshop in said that the company is keen on expanding its sales cooperation with RIPE Network Coordination Centre in Bahrain. “We are doing well in Bahrain. We are gaining market share month over month. We have been

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SAMENA TRENDS _ JAN 2016 SAMENA TRENDS _ JAN 2016 refocusing our partnerships in Bahrain and we have been of achievements accomplished as an organization in the refocusing with major retailers in the country. We have year 2015,” commented Zain Bahrain’s General Manager, reassessed our distribution network. Bahrain is slightly Mr. Mohammed Zainalabedin. “This year, we have smaller geographically, so we can make sure we reach focused our efforts to develop services and packages everywhere,” he said. He added, “2015 was a successful that better suit the needs of customers,” he said. year for the Huawei Consumer Business Group here in “Zain Bahrain strives to provide best in class customer the Middle East and we anticipate 2016 to be an even experience to its customers, and we have launched a bigger one with immense growth in the region.” He series of customer experience initiatives throughout the noted that with the launch of its latest flagship devices year to provide added convenience, empowerment and Mate 8 and M2 tablet, the company aims to further ease to our customers in their interactions with us,” he strengthen its market-share. “These-days most of the added. “We have also focused our efforts this year in work is done on the smart phone; messaging, social giving back and supporting the community and we will media sending emails, presentations etc. The Mate 8 continue to partner the process of progress and change caters to these needs. It is for the people who are on in the Kingdom of Bahrain. We see ourselves at Zain the go. That’s why we have battery that is bigger, it goes Bahrain as an important community partner, benefactor for a couple of days,” he said. He said that despite the and a stakeholder in Bahrain’s future prosperity.” he large 6-inch screen, the phone is not bulky, thanks to further added. (January 3, 2016) bahrainbiznews.com careful design. “Dimensions on the phone are not bulky at all. Dimension wise, its not bulkier than any other phones, it is slim. Dimension-wise, it is as any other Bangladesh phone of its kind, at the same time we give a perfect 6 Chairman: Mr. Sahjahan Mahmud inch display,” he said. “The Mate 8 is the ultimate high- [Bangladesh Telecommunication Regulatory end smartphone designed for the professional, striking Commission (BTRC)] the perfect balance between high performance and long battery life. And when designing the M2, we equipped Malaysia’s Axiata Group and India’s Bharti Airtel signed it with an impeccable sound system to take the user’s a definitive agreement to merge their respective experience to the next level. Both of these devices reflect mobile network operating subsidiaries in Bangladesh, Huawei’s continued dedication to bringing the latest Robi Axiata and Airtel Bangladesh. Post-merger, the innovation and style to our consumers,” he added. combined entity operating under the Robi brand (January 24, 2016) bahrainbiznews.com will serve roughly 40 million Bangladeshi customers, overtaking Banglalink as the country’s second largest VIVA is set to offer Unified Communications-as-a- operator behind GrameenPhone. Under the agreement Service (UCaaS), Video-as-a-service (VaaS) and Call of undisclosed value, Axiata will take a 68.3% controlling Center-as-a-Service (CCaaS) based on Avaya technology, stake in the combined entity, while Bharti will hold for enterprise customers. The new service is intended 25%, and the remaining 6.7% will be held by Robi’s to enable businesses to access new communications existing minority shareholder NTT DOCOMO of Japan. capabilities in a flexible model, and to be able to scale The proposed transaction is subject to approvals from up comms capacity on demand. Eng. Ulaiyan Al Wetaid, the relevant authorities and is expected to complete in VIVA CEO said: “Businesses in Bahrain are looking the first half of 2016, reducing Bangladesh’s number towards adopting ICT in their daily operations to boost of cellular competitors to five. A press release claims their productivity, growth and drive transformation. At that the combined Robi and Airtel will ‘deliver the VIVA, we recognize how this is an important enabler of widest mobile network coverage across Bangladesh,’ innovation that embraces new technology to help new whilst the merger will also result in a stronger position products, services and processes. Therefore, through our in the mobile internet segment, as well as creating a collaboration with Avaya, VIVA will be introducing first- wider sales and distribution reach – supported by ‘the of-its-kind unified communication solutions in the MENA largest network of customer service centres across region and Bahrain. With this, our business customers the country’. Supun Weerasinghe, CEO of Robi Axiata, will be able to experience improved and streamlined said: ‘The highly competitive and crowded Bangladesh access to their data through a consolidated process of IT telecommunications sector solicits consolidation and systems and achieve their business outcomes, through we believe this merger will form greater economies high levels of services delivery.” “Avaya solutions, of scale for both groups. Additionally, it will result in hosted by VIVA Bahrain, will give businesses in Bahrain shared investment capacity … to optimise strategies the flexibility and agility they require to benefit from and deliver enhanced value to consumers, benefitting the latest technology trends and prepare for digital the industry at large.’ One benefit flagged up by the transformation. Enterprises will be able to get access to merging parties is an increase in the number of Robi/ Avaya’s innovative technology solutions at prices that Airtel customers who will take advantage of lower-rate suit their needs, while benefiting from the reliability and on-net phone calls. At end-December 2015 third-ranked expertise that industry leaders such as Avaya and VIVA Robi Axiata had 28.317 million active 2G/3G mobile Bahrain bring to the market place. “said Nidal Abou Ltaif, customers, compared to fourth-placed player Airtel Avaya president, Asia Pacific, Middle East, Africa and EU. Bangladesh’s 10.710 million total, giving a combined (January 13, 2016) bahrainbiznews.com user base of 39.027 million, which would put the merged cellco a significant margin ahead of VimpelCom-backed Zain Bahrain, the most innovative telecom operator Banglalink with 32.865 million subscribers at the same in the Kingdom, reflects on the achievements the date, although remaining a long way behind Telenor company has accomplished during the year 2015. “We Group subsidiary GrameenPhone with 56.679 million are extremely thrilled with the developments and proud active SIMs at the end of the year. The signing of the

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Robi-Airtel merger agreement follows the September Iranian Space Organization Mohsen Bahrami said talks 2015 announcement that the pair had entered into were underway with Rome over the returning of the exclusive discussions on combining their businesses in Mesbah satellite. “Because of the sanctions, the Mesbah Bangladesh. (January 29, 2016) telegeography.com satellite has been held under seizure by Italy for three Ericsson has signed a three year contract with years now, and (currently) we are engaged in talks to Bangladesh’s Robi Axiata to upgrade 2G GSM sites in the take it back,” said the top space official. He said the Chittagong and Comilla regions. In addition, Ericsson satellite was designed and developed over 10 years ago will deploy substantial number of 3G WCDMA sites in in cooperation with an Italian company. However, the the same regions. Rajendra Pangrekar, Head of Ericsson satellite, which was at the disposal of Italy for its final Bangladesh, says: “Through our partnership with test, did not get the chance to be launched into space Robi, Ericsson strengthens our technology and service due to the sanctions. He said the satellite was originally leadership in one of the world’s fastest growing markets. supposed to be launched into space by Russians and We will support the delivery of unique experiences then Indians, but “this did not happen because of for people, business and society, thus shaping and the sanctions, and the Mesbah satellite has not been accelerating our vision of a Networked Society in launched (into space) yet”. Iran has, itself, taken long Bangladesh.” Ericsson will roll out network hardware strides in recent years to develop its space industry and and software and provide integration services to deliver to build different types of satellites and explorers. In the upgrade of Robi’s existing 2G/GSM network and February 2015, Iran’s domestically-made National Fajr expansion of the 3G/WCDMA network. This capacity (Dawn) Satellite was launched into orbit and started expansion will help Robi to cater for more customers, transmitting data to its stations on earth. Equipped enhance data speeds and improve app coverage; with GPS navigation system, Fajr, weighing 52 kilos, is enabling consumers to enjoy improved smartphone the fourth Iranian-made satellite which was put into experience such as faster web browsing and downloads. orbit after three others between 2009 and 2012. After According to the latest edition of the South East Iran launched its first locally-built satellite, Omid (Hope), Asia and Oceania regional Ericsson Mobility Report, in 2009, it put two other satellites including, Rasad Bangladesh is in the top 10 countries globally for mobile (Observation), and Navid-e Elm-o Sanat (Harbinger of subscription growth; ranking 5th with a net addition of Science and Industry) into space. 4 million mobile subscriptions. The report shows there (January 31, 2016) en.farsnews.com will be up to 20% smartphone subscription penetration by end of 2015 and this will double by 2018. In addition, data consumption has taken off since the introduction Iraq of 3G/WCDMA in 2013. This network transformation CEO: Dr. Burhan Shawi [Communication & Media Commission (CMC)] will ensure that Robi’s network can continue to evolve -making it ready for next level technology like 4G/LTE and be able to deliver a new service to customers within Zain Group, a leading mobile telecom innovator in eight a short lead time, following the issuing of licenses. markets across the Middle East and Africa, announces (January 28, 2016) cellular-news.com the publication of its latest thought-leadership report entitled, ‘Bringing the Future Closer with Innovation: Bangladesh’s largest cellular operator GrameenPhone Pursuing Innovation as a Means to Overcome (GP) has revealed plans to upgrade all of its existing Challenges in the MENA Region’. The report sets about 10,000 base transceiver stations (BTS) nationwide to illustrating the indispensable role of innovation in support 3G by June this year, TelecomAsia writes. GP achieving sustainable development and transitioning currently claims 5,800 3G UMTS cell sites, and aims to towards a knowledge-based economy, from a regional upgrade another 1,700 BTS to 3G within the first quarter, perspective. The report was revealed and discussed CEO Rajeev Sethi said, adding: ‘Currently, 65% of 57 at the annual World Economic Forum held in Davos, million active GrameenPhone users are covered by 3G Switzerland 20-23 January, 2016, where Zain Group CEO, networks … After June, customers can use the fastest Scott Gegenheimer; Emre Gurkan, Group Chief Strategy available [mobile] data service anywhere in the country.’ and Business Development Officer; and the Group’s Sigve Brekke, CEO of GP’s majority owner Telenor, says Head of Corporate Sustainability, Jennifer Suleiman, the Bangladeshi cellco’s ambition is to make every active conveyed the findings of the report liaising with leading mobile user an internet user as well. political and economic personalities from across the (January 7, 2016) telegeography.com globe. Importantly the report emphasized the role of innovation in enabling the MENA region to overcome Iran prevalent socioeconomic deficits and promote overall human development. It addresses the question: ‘How Chairman: Dr. Ali Asghar Amidian can stakeholders in the region come together to further [Communication Regulatory Authority (CRA)] society’s innovative capacity as a means to driving sustainable, inclusive growth while promoting human development?’ Commenting on the release of the Iran will take back a satellite seized by Italy due to the report, Scott Gegenheimer said, ‘Given the high-profile sanctions regime imposed over its peaceful nuclear nature of our business, and the profound impact it is program, Minister of Communications and Information able to have on people’s lives across the region, we feel Technology Mahmoud Vaezi said. “Italy seized the it is our responsibility to publish information that offers satellite for issues related to the sanctions regime and we insights into how innovation and technology in general are in the process of reclaiming it,” Vaezi told reporters can drastically improve living standards.’ Gegenheimer in Tehran. In relevant remarks last October, Head of the continued, ‘As with any region in the world, MENA faces

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SAMENA TRENDS _ JAN 2016 SAMENA TRENDS _ JAN 2016 specific challenges that we can overcome collectively of digital technologies in 171 countries. It indicated that through our desire of a more enabling environment. 35 percent of Jordanians have Internet access at home, From Zain’s perspective, our ties to the region run deep, while average download speed in the country is 3,862 and we look forward to continuing to render support kilobits per second (kbps). The DAI is the composite of and inspiration that results in positive outcome to three sub-indices: business (based on the percentage of people’s lives even beyond our own customer base.’ businesses with websites, the number of secure servers The challenges faced by the region include: high per million residents, download speed, and 3G coverage unemployment (particularly amongst youth); insufficient in the country), people (based on mobile access at home economic growth; undiversified economies; ongoing and Internet access at home), and government (based socio-economic exclusion and inequality; high rates on core administrative systems, online public services, of displacement due to conflict; an innovation deficit; and digital identification). Jordan scored 0.55 on the and high vulnerability to climate change, to name only DAI on a scale of 0 to 1, with 1 being the maximum. some. Jennifer Suleiman commented, ‘Corporate social It recorded its highest score on the people sub-index, responsibility and sustainability initiatives represent an at 0.68, followed by government at 0.60 and business integral part of Zain Group’s strategy and are taken very at 0.37. The Kingdom scored 0.52 for the availability seriously at all levels of the organization. Our thought- of online public services. Jordan was ranked ahead of leadership efforts are an opportunity for us to review several other Arab countries, such as Lebanon, which the factors that can aid socio-economic development had a DAI score of 0.50, and Iraq, which scored 0.46. from a technological standpoint, and also gives us a While 94 per cent of homes in Lebanon have mobile chance to draw attention to our own efforts given our phones and 57 per cent have Internet access, coverage position as a leading regional innovator.’ Bringing the of 3G services is lower than in Jordan at 61 per cent and Future Closer with Innovation: Pursuing Innovation as a download speed is 2,597kbps. In terms of availability of Means to Overcome Regional Challenges in the MENA online public services, Lebanon scored 0.35. In Iraq, 3G Regionshowcases Zain’s innovation by providing case coverage reached 89 per cent, while download speed studies undertaken by the company including its Zain is higher than in the Kingdom at 4,542kbps. The report Innovation Center in Jordan, which recently celebrated showed that the proportion of the population with its one-year anniversary; the Zain Great Idea challenge Internet access at home in Iraq stands at 43 per cent, to generate and incubate fresh new ideas; the Smart while the ratio with mobile access at home is 99 per cent. Schools Project in Jordan, Zain’s support of the MIT The availability of online public services in Iraq is 0.20. Enterprise Forum Arab Startup Competition; the Taaleb The highest-ranking Arab country in the index was the E-Learning Project; and the Light a Candle App to name UAE, which scored 0.77 overall, with 99 per cent of the a few. Zain believes that by developing the innovative population having mobile access at home and 87 per capacity of the region through a multi-stakeholder cent Internet access. Download speed is 17,226kbps in approach, MENA can overcome these challenges and the UAE, while 73 per cent of businesses have websites achieve sustainable growth solutions. and 3G coverage is 99 per cent, according to the report, (January 23, 2016) 4-traders.com which showed that availability of online public services in the UAE scored 0.88. Other Gulf Cooperation Council Qatar-based Ooredoo Group has announced the countries also performed strongly on the index, with expansion of its mobile financial services to a fourth Bahrain scoring 0.74, followed by Qatar at 0.69, Saudi country, having launched ‘AsiaHawala’ at its Iraqi Arabia at 0.66, Oman at 0.64, and Kuwait at 0.62. unit Asiacell. In a press release, Ooredoo notes that (January 28, 2016) zawya.com AsiaHawala is the country’s first mobile money service, enabling subscribers to transfer money, pay bills and top up airtime at 1,600 locations and is licensed by Kuwait the Central Bank of Iraq. Ooredoo now offers mobile Chairman and CEO: Mr. Salim Alozainah financial facilities in Qatar, Indonesia, Tunisia and Iraq. [Communication and Information Technology Ooredoo Group CEO Sheikh Saud Bin Nasser Al Thani Regulatory Authority (CITRA)] commented: ‘Ooredoo is deploying a full range of Kuwait has expressed support for formation of an innovative solutions to extend the range of mobile international network staffed by voluntary engineers financial services across our footprint, and we’re very and technicians ready to act rapidly in catastrophes. proud that Asiacell has launched the first mobile money Salem Al-Uthaina, Chairman of the Public Authority service licensed by the Central Bank of Iraq.’ for Communications and Information Technology, (January 14, 2016) telegeography.com declared support for two initiatives, launched by the International Telecommunication Union, during the “2nd Jordan Global Forum on Emergency Telecommunications (GET- Chairman of the Board of Commissioners/ 2016)” themed “saving lives,” He was speaking during CEO: Eng. Ghazi Al-Jobor conclusion session. The forum declared, on Wednesday, [Telecommunication Regulatory Commission launching an initiative to set up a network of voluntary (TRC)] engineers and technicians, ready to help in catastrophes Coverage of third generation (3G) mobile services in a speedy manner. It also announced formation of in Jordan stands at 98 percent, while 98 per cent of an international fund for rapid response; tasked with Jordanians have access to mobile phones at home, securing communications in emergencies and chartering according to the World Bank’s Digital Adoption Index aircraft for speedy transfer of equipment to catastrophe (DAI). The index, which was compiled for its recently stricken regions. Al-Uthaina, in his address to the session, released “World Development Report 2016: Digital said the deliberations during the three-day forum were Dividends”, measures the depth and breadth of adoption distinguished with “a spirit of cooperation. (January 29, 2016) arabtimesonline.com

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Zain Kuwait has achieved download speeds of 1Gbps in a trial of a 4.5G technology over its LTE mobile broadband Nepal Chairman: Mr. Digambar Jha network, in cooperation with equipment vendor Huawei. [Nepal Telecommunication Authority (NTR)] Eaman Al Roudhan, Zain Kuwait’s CEO, said: ‘Earlier this year, we teamed up with Huawei to trial and implement 4.5G services on our network in Kuwait, and we were Nepal’s Ncell has warned that it is facing fuel shortages pleased with the successful results we accomplished that could see some of its data centers shut down, today. With the implantation of further tests in the affecting its telecoms networks. The company claims near future, we will be better prepared to launch 4.5G that it is no longer receiving sufficient supplies of diesel technology commercially within the next three years as to power its generators from the Nepal Oil Corporation soon as compatible devices are available in the market.’ (NOC). Supplies built up in the past are now said to be Through its strategic partnership with Huawei, Zain is close to being depleted. Ncell says it needs around 4,500 also planning to provide voice-over-LTE (VoLTE) and liters of diesel per day for each of its four data centers. machine-to-machine (M2M) services, going forward. “We now have fuel for only three days. After that we According to TeleGeography’s GlobalComms Database, will have to shut down our services,” Ncell CEO Erim Zain Kuwait commercially launched its LTE network in Taylanlar told a meeting of Parliamentary Committee November 2012; the 4G network currently covers 100% on Development. The company operates four data- of the population. (January 4, 2016) telegeography.com centers, which support its telecoms network, and had been granted dedicated electricity supplies following last April’s earthquake. However, those dedicated Lebanon connections were removed from two data centers earlier Secretary of the Board: Mr. Amine this year, forcing the company to rely on local generators. Moukheiber The state-owned Nepal Telecom still has its dedicated [Telecommunication Regulatory Authority power supplies. (January 21, 2016) cellular-news.com (TRA)] The Ministry of Telecoms (MoT) has extended the management contracts for Lebanon’s two state-owned Oman cellcos Touch and Alfa for a further month from January Executive President: Dr. Hamed Al-Rawahi 1, 2016, whilst it continues to examine its options [Telecommunication Regulatory Authority following the recent failure of an international tender (TRA)] to award longer-term contracts. Minister Boutros Harb was quoted as saying: ‘If the government fails to take Oman’s total number of fixed telephone lines including action I may consider extending the contracts of the two post- and pre-paid lines, public phones, WLL, and ISDN mobile companies in case they succeeded in providing channels, registered a growth of 15.9 percent to 434,932 high-quality services under my direct supervision in this by the end of 2015 from 375,196 at the end of 2014. coming month.’ The operators are managed by Kuwait’s There was a 7.3 percent rise in the number of mobile Zain and Egypt’s Orascom. (January 7, 2016) The Daily Star subscribers (post- and pre-paid) to 6.65 million from 6.19 million in 2014, ONA reported. Among fixed lines, fixed prepaid (card fixed) telephones witnessed the Morocco highest growth at 69.4 percent taking the total to 56,021 Director General: M. Azdine El while postpaid connections rose by nearly 12.9 percent MountassirBillah to 325,083. WLL connections fell 2.2 percent to 1771 and [Agence Nationale de Reglementation des ISDN channels decreased 0.6 percent to 45256 in 2015. Telecommunications (ANRT)] Oman had a total of 6,801 public payphones last year, All three Moroccan wireless providers have reportedly with no change in numbers compared with figures for restricted the use of VoIP services through free 2014. Postpaid mobile subscriber base increased by 10.7 applications – such as WhatsApp, Viber and Skype – percent to 585,166, even as prepaid mobile connections when using the cellcos’ 3G/4G networks. The free VoIP grew by 7.0 percent to over 6.06 million. The number applications are functional when the voice calls are of internet subscribers surged by 31 percent to 236,004, made through a Wi-Fi connection, though such VoIP primarily due to a 31.7 percent growth in the number of calls are understood to also be restricted in the coming fixed broadband subscribers to 233,233. However, dial- months. An unnamed source was cited as saying: ‘All the up internet subscriptions fell by 10.1 percent to 2,771 operators have decided to block VoIP calls. Subscribers from 2014. (January 25, 2016) world.einnews.com can no longer make VoIP calls over 3G and 4G. Over Wi-Fi, the blockage is in progress, so the service works Oman is among the most dynamic countries worldwide intermittently. It should be completely blocked in the for change in ICT Development Index (IDI) value and next two months.’ Incumbent Maroc Telecom had ranking from 2010 to 2015, a study released recently been accused of blocking access to a number of VoIP by the International Telecommunications Union (ITU) operations in the country on several occasions. Most has said. Measuring the Information Society Report recently, in August 2014 the telco restricted access to 2015’ shows that according to IDI of last year, Oman Viber for a month. (January 7, 2016) Medias 24 has shown great progress: Its ranking jumped from 68 in 2010 to 54 in 2015 (out of 167 countries). The actual IDI value jumped from 4.41 in 2010 to 6.33 in 2015. As a result, Oman is considered among the “most dynamic countries” worldwide, placed 11th, in changing the IDI value and ranking from 2010 to 2015. On the regional level, Oman has the sixth highest IDI value among the

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Arab state countries. Bahrain has made the biggest change in Arab country rankings by jumping 21 places to Qatar President: Mr. Mohammed bin Ali Al Mannai 27, while UAE has jumped 17 places to 32, Saudi Arabia [Communications Regulatory Authority (CRA)] jumped 15 places to 41. Qatar jumped six places to rank 31, while Kuwait was the only one that fell one place to 46 from 45 earlier. The report identifies a group of The Communications Regulatory Authority (CRA) has ‘most dynamic countries’, which have recorded above- disclosed the number of telecom consumer complaints average improvements in their IDI rank over the past five and inquiries received for 2015 through its official years. These include (in order of greatest change in IDI channels - hotline 103, mobile app Arsel, and Twitter ranking): Costa Rica, Bahrain, Lebanon, Ghana, Thailand, channel @CRAqatar. CRA’s Consumer Affairs Department UAE, Saudi Arabia, Suriname, Kyrgyzstan, Belarus and is working closely with both service providers – Ooredoo Oman. IDI is measured by three dimensions – ICT access, and Vodafone-Qatar – to finalize the unresolved ICT use and ICT skills. In regard to ICT access, there is complaints. In 2015, CRA received a total of 1,985 a great progress in Oman, as the sultanate’s ranking inquiries from telecom consumers and 1,135 consumer jumped from 68 in 2010 to 47 in 2015. As a result, complaints. Of the 1,135 complaints, over 90% have been Oman is considered the “second most dynamic country” resolved, and less than 10% are still under investigation. worldwide as it was successful in changing the ‘Access’ “CRA is mandated by Emiri decree to manage a dispute sub-index between 2010 and 2015. Globally, Korea resolution system that is transparent, fair, speedy and is ranked top in 2015 rankings, followed by Denmark, effective. These figures show that CRA is proactively Iceland, UK and Sweden. Brahima Sanou, director of managing disputes, with nearly 100 complaints received ITU’s Telecommunication Development Bureau, which on average each month against both service providers. produces the report every year, said that ITU’s work in Resolving these complaints is a vital part of our role in gathering and publishing statistics allows it to monitor protecting telecom consumers in Qatar,” said Amel Salem the real progress being made in ICT development Al-Hanawi, CRA’s Consumer Affairs Manager, adding, worldwide. “Progress is encouraging in many areas “In the spirit of transparency, we will continue to share but more needs to be done - especially in the world’s these figures with the consumers in Qatar.” Common poorest and remotest regions, where ICTs can arguably complaints received by CRA by consumers include make the biggest difference, and help bring people disconnections, delays in service provisions, refunds, everywhere out of extreme poverty,” he said. The report incorrect billing, slow internet, weak broadband services, is being published annually since 2009, and it features services not activated or mistakenly disconnected, key ICT data and benchmarking tools to measure the high roaming charges, double debiting, replenishment information society, including the IDI. IDI 2015 captures failures and failure to activate SIM cards. Specifically, the level of ICT developments in 167 economies and 30% of the complaints received about Ooredoo’s mobile compares progress made since 2010. It also assesses IDI services are related to billing issues and 20% are related findings at the regional level and highlights countries to network coverage issues. 30% of Vodafone mobile that rank at the top of the index, and those that have services complaints are related to service disconnection improved their position in the overall rankings most issues and 20% are related to billing issues. From the dynamically since 2010. (January 10, 2016) muscatdaily.com data collected, 53% of Ooredoo fixed line complaints are related to delay in installation and activation while 32% of the fixed line complaints are related to fixed Pakistan line disconnection issues. he Telecommunications Law Chairman: Dr. Syed Ismail Shah and the licenses issued to service providers include [Pakistan Telecommunication Authority (PTA)] provisions to protect consumers by placing obligations on the service providers to be honest and be fair in their dealings. Consumers with a complaint can freely BlackBerry said it will continue to operate in Pakistan approach the CRA if they first complain to their service after the government withdrew a shutdown order, provider and this complaint remains unresolved for following a dispute over access to user data. BlackBerry 30 calendar days, or if they are dissatisfied with the COO Marty Beard said in a blog post: “After productive resolution offered. The Consumer Affairs department discussions, the government of Pakistan has rescinded its within CRA is responsible to receive and investigate shutdown order, and BlackBerry has decided to remain telecom consumer complaints by working with both in the Pakistan market.” BlackBerry argued that it is not consumers and service providers in a prompt and in a position to provide the content of its customers’ balanced way to find mutually acceptable solution. BlackBerry Enterprise Service (BES) traffic or access to The Consumer Affairs department also responds to its BES servers. The company said in late November it consumer inquiries about any issues they have regarding would exit Pakistan on December 30, citing concerns the services provided by their telecom service provider. over user privacy. The Pakistan government in July Consumers can contact the CRA if they are first unable to ordered the country’s mobile operators to shut down resolve their disputes with their service provider within BlackBerry’s secure messaging service by the end of 30 days using a variety of communication channels: the November for “security reasons”. A report from Privacy 24/7 hotline number 103, email at consumervoice@cra. International in July said Pakistan’s military intelligence gov.qa, using the CRA’s online complaint form via the agency, the Inter-Services Intelligence, was looking to website, by tweeting directly to the CRA @CRAqatar, expand its ability to intercept communications, Reuters or by visiting the CRA’s headquarters at Al Nasr Tower reported. Back in 2010 its BES encrypted service faced B. The Communications Regulatory Authority (CRA) possible bans in at least five countries, including India is the communications regulator in the state of Qatar and Indonesia. (January 4, 2016) mobileworldlive.com established by virtue of Emiri Decree (42) in 2014. CRA

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regulates the communications & information technology sector, postal services, and access to digital media. Saudi Arabia Governor: Dr. Abdulaziz Salem Al Rwais CRA uses its regulatory powers mandated by the Emiri [Communication & Information Technology decree to protect consumer rights, ensure competition, Commission (CITC)] manage the resolution of disputes, and manage the electromagnetic spectrum. In all its activities, the CRA Etihad Etisalat (Mobily), Saudi Arabia’s second largest seeks to ensure the provision of advanced, innovative mobile operator by subscribers, has announced its and reliable ICT and postal services across the state of financial results for the twelve months ended December Qatar. (January 19, 2016) cra.gov.qa 31, 2015, reporting a net loss of SAR1.093 billion (USD2.93 million), a 30.6% improvement on the net loss Ooredoo Qatar and Nokia Networks have announced of SAR1.576 billion reported in 2014. According to a the launch of LTE Advanced (LTE A) three band carrier press release on the Saudi Stock Exchange’s (Tadawul’s) aggregation technology on the Ooredoo Supernet. website, the improvement was mainly attributed to Nokia technology enables the operator to provide ‘significant improvement in EBITDA which was slightly higher data speeds of up to 375 Mbps to its customers. offset by an increase in Zakat expenses by SAR128 The launch followed software upgrade to aggregate two million and an increase in finance expenses by SAR92 20 MHz carriers in the 1800 MHz and 2600 MHz bands million.’ In the period under review group revenues also with one additional 10 MHz carrier in the 800 MHz increased, by 3% year-on-year to SAR14.424 billion, up band. Bernard Najm, Vice President and Head of Middle from SAR14.004 billion reported in 2014. EBITDA for East and Africa, Nokia Networks, said: “We’re happy to 2015 amounted to SAR2.941 billion, a 30.9% rise on an support Ooredoo Qatar in its mission to provide top- annualized basis, when compared to the SAR2.246 billion quality services to its customers. After we successfully in 2014. The group’s net current liabilities amounted to demonstrated 600 Mbps CAT 11 speeds in October, SAR9.7 billion at end-December 2015 (SAR17.3 billion in we have now helped Ooredoo launch the three-band December 2014), with Mobily claiming that this indicated carrier aggregation technology to deliver higher data its ability to meet its obligations. On 29 December 2015 throughput with superior reliability.” the management of the company reached an agreement (January 1, 2016) cellular-news.com with lenders to waive the breach of covenant under several facilities totalling SAR12.1 billion, which led to The Communications Regulatory Authority (CRA) grants the reclassification of the outstanding amount of these authorizations for import of telecommunications and facilities from current liabilities to non-current liabilities. radio equipment to businesses in State of Qatar. As part of (January 25, 2016) telegeography.com the Digital Government initiative, all applications related to such import authorizations will now be processed Saudi Arabian fixed line and broadband operator Etihad through the Qatar Government Portal – Hukoomi Atheeb Telecom (GO Telecom) has published its financial with effect from January 3, 2016. CRA authorization is results for the nine months ended 31 December 2015, necessary for sale of cellular phones and private mobile announcing a net loss of SAR85.46 million (USD22.78 radio devices. The required approvals and relevant million), up from a net loss of SAR22.52 million reported documents such as licenses and certificates are granted in the corresponding period of 2014. The telco blamed after careful evaluation of the applications received the development on an increase in other income in through Hukoomi portal here. CRA encourages all 1Q14, which was due to the sale of property with a applicants to take the above decision into consideration book value of SAR60.0 million, giving GO Telecom a while submitting future import authorization applications. gain of SAR94.0 million (SAR63.4 million reflected in that To ensure a smooth transition, CRA will also accept quarter, with the remainder deferred). The operator’s submissions manually till end of February 2016. After the revenues increased by 41.7% (or SAR72.5 million) year- two months grace period is over, the applications will on-year from SAR173.6 million to SAR246.1 million. GO be exclusively processed digitally. For clarifications and Telecom highlighted that revenues generated by its more information, applicants may call Communications business sector operations were up 43.3% y-o-y, while Regulatory Authority Hotline 103, visit the Government interconnection revenues increased 111.4%. Contact Center at Al Nasr Tower B, or send an e-mail to (January 25, 2016) telegeography.com [email protected]. Through this decision, CRA intends to enhance the existing application process, Saudi Telecom Company (STC) has published its financial and make it more convenient and practical for people results for the twelve months ended 31 December 2015, of Qatar. Hukoomi is the centralized digital platform for reporting a 14.82% decrease in net profit to SAR9.335 residents to access public e-services offered by different billion (USD2.48 billion) from SAR10.959 billion reported Government entities. The Communications Regulatory in 2014. The company attributed the negative result Authority (CRA) is the communications regulator in mainly to a SAR2.823 billion rise in cost of services the state of Qatar established by virtue of Emiri Decree and a SAR1.883 billion increase in operating expenses (42) in 2014. CRA regulates the communications & in the year, despite the 7.77% year-on-year growth in information technology sector, postal services, and gross profit to SAR30.343 billion. In the period under access to digital media. CRA uses its regulatory powers review, STC reported revenues of SAR50.837 million, a mandated by the Emiri decree to protect consumer 10.93% increase y-o-y, while EBITDA reached SAR19.370 rights, ensure competition, manage the resolution of billion, up 3.80% from SAR18.661 billion. STC Group’s disputes, and manage the electromagnetic spectrum. In CEO Khaled Biyari commented: ‘The 11% increase in all its activities, the CRA seeks to ensure the provision of consolidated revenue and the 3.8% increase in EBITDA advanced, innovative and reliable ICT and postal services for the twelve-month period compared to last year across the state of Qatar. (January 3, 2016) cra.gov.qa confirm that STC’s strategy is working well. The decline in net profit for the twelve months is mainly attributed

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SAMENA TRENDS _ JAN 2016 SAMENA TRENDS _ JAN 2016 to STC continued investments in programs that will have that were introduced in February. The one-off tax on positive outcomes in the near future, such as the early satellite direct-to-home TV operators and the recurring retirement program and the disposal of old assets … tax on prepaid services have been scrapped. The 2016 With regards to international operations, the twelve- budget also proposes to structurally separate operators’ month period witnessed revenue growth of 8% in the fiber, towers and spectrum assets to a special-purpose controlled international subsidiaries compared to last company to be regulated by the Information and year and this is attributed mainly to the continued Communication Technology Authority. The impact of growth in the subsidiaries’ customer bases and market such a structural separation is uncertain as the regulator shares.’ (January 21, 2016) telegeography.com hasn’t disclosed details on the asset separation, Fitch said. The government’s decision to impose a tax of LKR50,000 per tower is not likely to have a major impact Sri Lanka on the credit profile of the two operators. The agency D i r e c t o r G e n e r a l : M r . P. B . A b e y k o o n said that their credit profile will now remain intact. [Telecommunication Regulatory Commission (January 18, 2016) mobileworldlive.com (TRC)]

Sri Lanka’s telecommunications regulator, Telecom Tunisia Regulatory Commission (TRC) will introduce common President: Mr. Hassoumi Zitoune floor rates for call charges effective February 0, 2016 [National Telecommunication Commission to ensure a level field for all operators. The TRC has (INTT)] instructed the telecom operators to introduce a common rate for both on-net and off-net voice calls The Ministry of Communication Technologies and the instead of the different rates being used now. A TRC Digital Economy (Mincom) has set a price of TND155 official said the idea was to introduce a common floor million (US$76.58 million) for 4G licenses, Agence Ecofin rate for the telecom industry to create a level field for all said ICT Minister Noomane Fehri. Technical bids are operators enabling small operators to be competitive. expected to be submitted by Tunisia’s trio of cellcos Under the circular issued by TRC, Short Messages (SMS) in February 2016, with the licenses to be awarded the will be increased from the current cents 10 to 20. For following month. According to the official, commercial within network callers, the local voice call per minute launches of the technology could take place as early as billing basis will remain Rs. 1.50 while per second billing June 2016. (January 4, 2016) Agence Ecofin basis the rate will be increased from Rs. 1.50 to 1.80 per minute. For outside network callers, the local voice call per minute billing basis will decrease by 50 cents from Turkey current Rs. 2.00 to Rs. 1.50 per minute while the per Acting Chairman: Dr. Omer Fatih Sayan second billing basis rate will be reduced from Rs. 2.50 to [Information & Communication Technologies Authority (BTK)] Rs. 1.80. (January 27, 2016) colombopage.com

Fitch Ratings revised the outlook for Sri Lanka’s telecoms Turkey’s former monopoly fixed line operator Turk sector to stable from negative as the government’s new Telekom has announced the merging of its respective budget scrapped recurring taxes that could have diluted mobile and ISP brands Avea and TTNet under the operators’ EBITDA margin by an average of 6-7 per cent. unified Turk Telekom brand name, logo and website. The Dialog Axiata’s and Sri Lanka Telecom’s (SLT) 2016 EBITDA new logo is already in use, as is the single converged margin should dilute by only 1-2 per cent following the website grouping all fixed line, broadband, mobile and new budget, due to changes in their revenue mix and pay-TV service divisions, while the group also said it lower revenue from profitable international gateway would operate a unified call centre and single-brand operations, the ratings agency said. The new budget retail outlets. Although dispensing with independent doubled the government’s share in the international levy branding, Avea and TTNet will remain distinct legal to $0.06 from $0.03 per minute. Fitch said the operators’ entities as wholly owned subsidiaries of Turk Telekom. strategy to pass this increase to consumers could affect In August 2015 Turk Telekom became the sole owner usage, as users will likely move to applications like Skype of Avea, following the transfer of a 10% stake from Is and Facebook. The firm estimates that international Bankasi, whilst the Turkish telco already held 99.9% of termination revenues contribute about 12 per cent of TTNet shares. (January 27, 2016) telegeography.com Dialog’s and SLT’s revenues. Fitch revised the sector’s outlook to negative last March based on proposals to Aggregating 5 carriers in a demo carried out on Friday increase taxes that could lower profitability and raise in its Istanbul headquarters, Turkcell reached mobile operators’ leverage. The original proposals called for a broadband speeds of 1.2Gbps on 4.5G. During the one-off ‘super gains’ tax of 25 per cent on profits, a tax demo, Turkcell used 79.8 MHz of frequency consisting of of LKR250 million ($1.8 million) on each operator and a 29.8 MHz (20 + 9.8) in 1800 MHz band, 30 MHz (20+10) one-off tax of LKR1 billion ($7.5 million) on companies in 2100 MHz band, and 20 MHz in 2600 MHz band - offering satellite direct-to-home (DTH) TV with more a configuration that includes the use of the spectrum than 50,000 subscribers. The proposals would also Turkcell had acquired in 1800, 2100 and 2600 MHz bands have shifted the burden of a recurring telecoms levy in Turkey’s spectrum auction held on August 26th. The (25 per cent on prepaid voice and 10 per cent on data demo was attended by members of the Turkish media revenue) to operators from consumers. Dialog and and was carried out using the equipment developed SLT, the country’s two largest mobile players with 62 by Huawei. “With the 4.5G auction, we had set the bar per cent of total connections, paid LKR1.02 billion and high in terms of offering the fastest mobile broadband LKR2.04 billion, respectively, last year on one-off taxes internet. We had announced that we would not only

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offer the country’s fastest 4.5G upon roll-out on April 1st, granting the license was signed in a ceremony at the but also go beyond that in order to match the current TRA’s Abu Dhabi headquarters in the presence of Hamad fiber experience on mobile.” said Ilker Kuruoz, Turkcell’s Obaid Al Mansouri, Director-General of the TRA, and CTO. “With this speed demo, we are not only pushing Inmarsat’s Executive Vice President, Alison Horrocks. the limits of 4.5G but also taking a major step towards Al Mansouri said the UAE is on the threshold of an era 5G experience in terms of reaching speeds that exceed of unsurpassed innovation at all levels and particularly 1 Gbps.” Turkcell will launch 4.5G in Turkey on April 1st the space field. “The importance of this license stems with speeds of up to 375 Mbps aggregating 3 carriers. from its direct impact on the ICT sector and the rapid It had announced plans to support speeds of more that advancements in the UAE towards implementing smart 1000 Mbps towards the end of 2016 on its network cities. The license affirms our endeavors to elevate using the technology employed in the aforementioned the telecommunications sector’s competiveness and demo. It is expected that smartphones that can support position the UAE as a global ICT leader.” He added 5 Carrier Aggregation will be available around mid-2017 that having Inmarsat operate in UAE will definitely - which means that Turkcell customers, who currently open new frontiers for business, contribute to driving enjoy Turkey’s fastest 3G with 63.3 Mbps on supporting the sector to compete globally, and serve the TRA’s devices, will be able to use their mobile broadband up to strategy that aims at exploiting technology in saving 19 times faster in less than 2 years. lives and serving humanity. “These advancements (January 1, 2016) cellular-news.com also fall within the context of economic diversification and building a knowledge-based economy. The TRA’s strategic plan entails many projects and initiatives that United Arab Emirates will play a major role in enhancing the quality of telecom Director General: Mr. Hamad Obaid Al services provided in the UAE,” Al Mansouri added Mansoori Horrocks described the granting of a public satellite [Telecommunication Regulatory Authority service license as a significant occasion for Inmarsat. (TRA)] “The United Arab Emirates has been a key hub for us Emirates Integrated Telecommunications Company (Du) for many years and we recognize the importance of the is seen as the next candidate for an increase in its foreign UAE and the whole GCC as a growth region for us,” he ownership limit in the Middle East and North Africa said. Inmarsat was founded in 1979 by the International (Mena) telecom space after etisalat increased its limit to Maritime Organization under the auspices of the United 20 per cent in September 2015, according to investment Nations to help save lives at sea and, today, is the only bank Arqaam Capital. Arqaam said in a strategy note authorized provider of the Global Maritime Distress and on Sunday that it expects the increase in liquidity of du Safety System (GMDSS). Inmarsat has since evolved shares as a result of lifting foreign ownership restrictions to provide global mobile broadband communication would be enough for it to qualify for the MSCI Emerging services to users on land, at sea and in the air. Markets Index after 12 months if it were to lift the foreign ownership for institutional investors. “We would expect (January 28, 2016) wam.ae du’s MSCI inclusion to come no sooner than a year after The Gulf Cooperation Council’s 11th GCC CERTS the foreign ownership limit change due to its relatively Committee has adopted the UAE experience in lower liquidity as we estimate its annualised Traded Value combatting cyber blackmailing at a meeting which Ratio (ATVR) in 2015 to have been only about 9 per cent, was attended by the General Authority for Regulating below the required 15 per cent,” said Tibor Bokor, head the Telecommunication Sector, TRA, represented by its of Technology, Media and Telecommunications research subsidiary, the UAE Computer Emergency Response at Arqaam Capital. He, however, said that liquidity Team, aeCERT, held last week in Riyadh. The meeting was would need to increase by 67 per cent to an average chaired by Sulaiman Abdelrahman Al Samhan, Digital daily trading volume (ADTV) of about $1 million (Dh3.67 Forensics Supervisor, Communications and Information million) versus the current $0.6 million. Arqaam expects Technology Commission, CITC, of Saudi Arabia. UAE the ADTV to increase to at least $2-3 million per day was represented by Adel Al Muhairi, TRA’s aeCERT based on the liquidity of similar sized stocks that allow Director, and Ghaith Al Mazaina, TRA’s aeCERT Business foreign ownership. “In addition, MSCI criteria requires Affairs Manager. The UAE delegation highlighted its four consecutive three-month ATVRs greater than 15 experiences in combating cyber blackmailing and shed per cent, implying that Du would need to wait another light on the campaign that was launched by TRA in year to be able to meet this requirement,” Bokor said. cooperation with Al Ameen Service by Dubai Police with “In the future, we would not be surprised if a secondary the aim of raising awareness of cyber security threats. public offering is made and the foreign ownership The committee decided to adopt UAE’s experience limit increases even further, but we would expect this so all member states benefit from it. In this context, to happen at more attractive valuations following MSCI Hamad Obaid Al Mansoori, UAE TRA Director-General, inclusion.” (January 31, 2016) gulfnews.com said, “We are delighted to have our experience adopted by the committee as this reflects the UAE’s success in The UAE’s Telecommunications Regulatory Authority has combating cyber blackmailing and it highlights its granted a public satellite service license to Inmarsat, a effective contribution to protecting the infrastructure pioneer in mobile satellite communications powering of this vital sector at a local and regional level. Cyber global connectivity for more than three decades. The security has become an integral part of our societies’ license grants Inmarsat a permission to offer mobile safety, and especially in light of the rapid developments satellite communication services to public and private in the ICT sector. Accordingly, the TRA is always keen sector users within the UAE, in the government, media, to cooperate with all concerned parties to develop maritime and aviation sectors. Additionally, Inmarsat’s innovative solutions and mechanisms that safeguard services will also be available to support humanitarian the sector optimally.” “We believe that knowledge and emergency relief efforts in the UAE. The agreement

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SAMENA TRENDS _ JAN 2016 SAMENA TRENDS _ JAN 2016 and awareness are the shield that protect our users drop in the company’s profits for the third quarter of from being exploited by cyber-criminals. Driven by last year, together with forex losses in Morocco, Egypt this belief, we collaborated with Al Ameen service to and Pakistan. Mr. Julfar said that Etisalat was changing spread awareness about cyber security threats. We are its operating model in an effort to increase efficiency committed to making the internet safer for UAE users, across its operations. “We do a lot of sharing whether it therefore, our tireless efforts include supporting and is passive infrastructure or [in other areas], we’re doing enabling all initiatives that are launched with the aim more collaboration with telecom operators and internet of providing a safe electronic environment.” he added players … internet players that will help us to reduce Adel Al Muhairi said, “The meeting entailed discussing the drop in margins,” he said. “But also because we’re various significant topics that served one purpose, big we operate in many countries we can capitalize on which is, enhancing information security standards and [economies of] scale to keep our profit margins intact,” practices and providing a safe environment for internet he said. Etisalat’s UAE-based operations continued to users across the region.” Ghaith Al Mazaina said “The grow in the third quarter of 2015, with revenue and Cyber Blackmailing campaign is one of the successful profit increasing year on year by 5.7 and 6.6 per cent campaigns that was welcomed by Emirati society as it respectively. However, the group’s total revenues fell by contained numerous awareness messages. It has been 1 per cent during the period partly on “aggressive price widely publicized by different radio and TV channels, in competition in certain markets”. (January 10, 2016) thenational.ae addition to Social media channels. We value our strong ties with our brothers in the GCC, and that is why we were keen to share with them our experience to raise awareness and ensure that the region benefits from this experience.” The meeting’s agenda entailed discussing the GCC CERTS Committee working mechanism and tasks, activating the GCC Information Security Strategy, setting the cooperation framework between GCC CERTS and the regional and international centers, in addition to activating the emergency response training simulation, benefitting from the fiber-optic infrastructure in the e-linking project, and collaborating with the United States in the field of cyber security. (January 27, 2016) wam.ae

Etisalat has more than 100 roaming partners for its 4G LTE networks across 55 countries. The telecom operator currently facilitates international mobile roaming services on 2G, 3G and 4G networks across 612 partner networks. In addition, etisalat’s roaming data network facilitates customers subscribed to etisalat’s mobile data packs to access internet on the country’s largest roaming data network of a total of 213 operators across 100 countries. The operator also recently launched a new access point for its mobile roaming customers to view and subscribe to the most preferred roaming voice or data plan while travelling. (January 24, 2016) gulfnews.com

Etisalat’s group chief executive, Ahmad Julfar, does not anticipate any increase in the royalties the telecoms operator pays to the UAE federal government. Amid the decline in hydrocarbon revenue because of falling oil prices over the past 18 months, analysts at EFG Hermes have said that risks to the company’s valuation include any future decision by the government “to alter the current royalty structure upwards, or even charge a different tax on services”.­ More than 60 per cent of the federal budget is funded by hydrocarbons sales. “For the royalties we pay to the government there is already a regime [in place] that is renewed every two years and I think it will remain as it is for the time being,” Mr. Julfar told The National on the sidelines of Ericsson’s Change- Makers Forum in Dubai. “We haven’t heard anything from the government yet, but that is our expectation.” During the past 12 months, Etisalat’s shares have gained more than 62 per cent, since it opened up its ownership to foreign investors and its stock was included in MSCI’s emerging markets benchmark index. EFG remains fairly bullish on the company’s stock outlook this year. The royalty paid to the UAE government was one of the factors Etisalat singled out as causing an 8.6 per cent

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REGULATORY ACTIVITIES BEYOND THE SAMENA REGION

Angola Federal de Tecnologias de la Informacion The telecoms regulator y las Comunicaciones, AFTIC) into a new INACOM has launched an entity have become mired in confusion, awareness campaigns for after Luis Arias, a judge from La Plata, users of telecom services ordered the government to abstain (including mobile, fixed telephony and from reforming AFSCA, arguing: ‘[The internet/data services) to update their government] is prohibited to alter, modify, identification details with their respective eliminate or supress the functions and the operators by February. The obligation was existence of the AFSCA media watchdog established in Joint Executive Decree No. through any action or rule that would Regulatory 20/14 of 20 January that establishes a represent a modification of the standards period from March 2015 to February 2016 of Law No. 26,552’. On his first day in office Updates for the process to be completed. Special in November last year, incoming President teams will visit citizens at workplaces, Mauricio Macri unveiled plans to create schools, ministries, markets and places the National Entity for Communications of entertainment, to assist them in (Ente Nacional de Comunicaciones, updating their ID records. The campaign ENACOM), to assume control of AFSCA is being managed by an Interministerial and AFTIC – both of which have been Committee that consists of the Ministry designated as autonomous organisations of Interior, the Ministry of Commerce under the 2009 Media Law. ENACOM is to and the Ministry of Telecommunications be headed by Miguel De Godoy, a former and Information Technologies, and with media aide to Macri. Despite the political, the participation of operators Angola and indeed legal, opposition to the move, Telecom, Movicel and Unitel. the formation of ENACOM continues to gather momentum, with the Buenos Aires (December 23, 2015) telecompaper.com Herald reporting that Decree 7/2016 has been included in this week’s Official Gazette. The new decree outlines the rules Argentina for the selection of the entity’s board of Ongoing plans in Argentina directors. (January 8, 2016) telegeography.com to merge the Federal Authority of Audiovisual Communication Services (Autoridad Federal de Servicios de Comunicacion Audiovisual, AFSCA) and the Federal ICT Authority (Autoridad

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to 29% in October). TIM Brasil was second with 69.3 Bosnia and Herzegovina million and 25.7 percent share (26.26%). Claro (America The Communications Regulatory Agency Movil group) was third with 67.37 million and 24.99 (CRA) has been tasked with aligning the percent share (25.2%). Oi followed in fourth place with prices charged for mobile services by the 49.2 million lines and 18.25 percent share. Nextel had nation’s wireless operators with those 2.5 million customers and 0.93 percent market share charged by cellcos in other countries in the region. the (0.9%). In terms of access technology, 2G/GSM dropped Committee on Transport and Communications of the from 77.0 million users in October to 76.26 million in Parliamentary Assembly of Bosnia and Herzegovina has November; 3G was also down from 159.4 million in directed the watchdog to ensure relative price parity October to 156.4 million in November; while 4G/LTE within 120 days. The call comes after a decision last grew from 20.45 million in October to 22.58 million in June in which Bosnia’s House of Representatives noted November. (January 13, 2016) telecompaper.com that Bosnian citizens were paying the highest prices for mobile services in the former Yugoslavia region; as such, the government then gave the CRA 90 days to bring National Telecommunications Agency (ANATEL) has Bosnian mobile prices in line with nearby countries, confirmed that it has received bids totaling BRL762.67 though this order was ultimately not implemented. million (US$190.33 million) in its multi-band spectrum (January 14, 2016) telecompaper.com auction, which comprised frequencies in the 1800MHz, 1900MHz and 2500MHz bands. Nextel Brasil made the highest financial commitment of all of the bidders, Botswana pledging BRL455 million for a block of 1800MHz The government of Botswana says there spectrum covering Sao Paulo and Greater Sao Paulo. has been strong interest in the initial public The company intends to use the spectrum to launch 4G offer (IPO) for shares in national fixed line LTE technology there. Telefonica Brasil (Vivo) was next operator Botswana Telecommunications in line, lodging bids totaling BRL185.45 million, with its Corporation Limited (BTCL). One week after the offer acquired spectrum said to include 2500MHz frequencies was opened; over 15,000 copies of the sale prospectus in Sao Paulo and Rio de Janeiro. Claro paid BRL61.86 have been collected from BTCL outlets and branches of million for unspecified spectrum in Sao Paulo, Rio de Barclays bank, while another 10,000 copies have been Janeiro, Espirito Santo and Rio Grande do Sul, while downloaded. The sale has already become the biggest TIM Participacoes (TIM Brasil) won licenses in Parana IPO in Botswana’s history, BizTech Africa reports. The and Pernambuco, paying BRL56.50 million. Elsewhere, offer period runs until March 4, with 44% of the telco’s the likes of TPA Telecomunicacoes bid BRL2.46 million, shares available to the general public and a further 5% Lig Telecomunicacoes (BRL1.05 million), Sercomtel stake reserved for company employees. (BRL241,000) and Clivo Participacoes (BRL120,001), all (January 19, 2016) BizTech Africa securing minor spectrum allowances. Sky Brasil Servicos (Sky Brazil) – the only other company that registered to participate in the auction – was conspicuous by its The government of Botswana has finally launched the absence when the results were announced. Finally, initial public offer (IPO) for shares in national fixed line ANATEL confirmed that it received a total of 5,479 ‘Lot operator Botswana Telecommunications Corporation C’ bids from 324 different companies, totaling BRL89.9 Limited (BTCL), almost a decade after the idea was first million. This spectrum in this lot was divided into roughly tabled. The much-delayed privatization will see the state 9,000 regional parcels and distributed on a municipality- selling off 49% of the telco, with a 44% stake available to by-municipality basis. (December 23, 2015) telegeography.com the general public and 5% reserved for BTCL employees. Those interested in buying shares can register their interest between 11 January and 4 March, with a listing Bulgaria expected to take place in April. Botswana’s Minister of The Commission on Protection of Transport and Communications, Tshenolo Mabeo, said Competition (CPC) has approved the sale the deal was ‘a pinnacle moment in the history of BTCL of domestic telco Vivacom (registered as and our local economy’. He went on to add: ‘We are Bulgarian Telecommunications Company optimistic that investors from all walks of life, including [BTC]) to Spas Roussev, a financial investor backed by the youth, women, small, medium and big entrepreneurs, VTB Capital (the investment-banking arm of Russia’s will view this as an affordable opportunity to purchase VTB), Novinite reports. The regulator ruled that Vivacom shares, trade them later and use their profits to inject will not gain dominant position in the telecoms market into their businesses.’ (December 23, 2015) BizTechAfrica as a result of the deal, as the entities involved are not active in the same markets. Spas Roussev bid EUR330 million (US$351 million) for the telco in an auction held in Brazil mid-November 2015; the sale price values the Bulgarian Brazil ended November 2015 with 269.59 telco at EUR700 million, when factoring in the existing million active mobile telephony lines debt of the company. VTB Capital was able to launch and a penetration rate of 131.5 percent, the sale process as it acted as a facility and security according to figures published by the agent for a EUR150 million bridge financing loan given National Telecommunications Agency (ANATEL). This to InterV Investment, a Luxembourg-based indirect represents a 1.53 percent drop on October and 3.87 holding company of Vivacom. The loan was secured via percent less than in November 2014. This was the sixth a share pledge of 100% of InterV shares, which were all consecutive month of fewer mobile users in Brazil, as transferred to VTB Capital after InterV defaulted on its many operators have tightened their credit policies loan repayments in May 2015. Three potential buyers and disconnected inactive or non-paying users. Of the placed bids for Vivacom in the auction: Greece’s Olympia total subscribers, 196.61 million were prepaid (72.93%) Group (backed by US-based hedge fund Third Point); and 72.98 million postpaid (27.07%). Vivo (Telefonica Marc Schneider (co-founder of European cable group Brasil) maintained the market lead with 79.49 million UPC, backed by US-based private equity fund CVC); customers or 29.49 percent of the total (compared and Roussev, though Schneider’s bid was subsequently

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SAMENA TRENDS _ JAN 2016 SAMENA TRENDS _ JAN 2016 disqualified for ‘non-conformity with the procedure’ despite valuing Vivacom at EUR850 million. Ecuador The President Rafael Correa has initiated by (January 11, 2016) telegeography.com executive decree the ‘General Regulation of the Organic Telecommunications Law’, which confirms and strengthens the Chile functions, powers and responsibilities of the sector’s The Department of Telecommunications policy-making and regulatory bodies which were originally (SUBTEL) has announced that from 6 established under the Organic Telecommunications Law February the country will use a nine in February 2015. Under Executive Decree No. 864, the number dialing system. The change latest document defines the powers of the Ministry of will allow the regulator to implement intermodal Telecommunications & Information Society (MINTEL) as number portability, enabling customers to port their the governing body issuing regulations and overseeing fixed number to a mobile subscription and vice versa. their implementation via the Agency for Regulation & At present, mobile lines use an eight digit numbering Control of Telecommunications (ARCOTEL), alongside system whilst fixed lines use a ten digit system. Under developing and approving plans for universal telecoms the new structure, calls to fixed lines will drop the first ‘0’ services, ‘Information Society’ and all other telecoms of the current number, whilst mobile numbers will add services. For its part, ARCOTEL grants all operating licenses an extra ‘9’ to the start. (January 12, 2016) telegeography.com for the provision of telecoms services and the usage of spectrum. The conditions and deadlines for the award Telecoms watchdog the Department of of frequencies are determined under the ‘Regulations Telecommunications (SUBTEL) is reportedly working for Granting Authorization Certificates’, whilst the on new legislation that will oblige cellular operators to text also issues provisions on underground networks, offer devices compatible with all spectrum bands used competition regulation, rights of telecoms users and the in the country. The move was prompted by a complaint establishment of a regime of sanctions in case of rule from WOM claiming that the practice of cellcos selling infringements. ARCOTEL officially took over regulation devices compatible with only the frequencies that of the telecoms sector on March 4, 2015, assuming they use poses an obstacle to growth, particularly for the combined functions of the former regulatory smaller providers such as WOM, which is the only cellco authority Consejo Nacional de Telecomunicaciones to use the AWS (1700/2100) band. Undersecretary of (CONATEL or National Telecoms Council) and that Telecommunications Pedro Huichalaf noted, however, body’s former sister policy administrator, Secretaria that the planned new rules go further and will also Nacional de Telecomunicaciones (Senatel or National require operators and handset sellers to provide clear Secretariat of Telecoms), as well as duties including information on a device’s compatibility to users. ‘We spectrum monitoring/enforcement, type approval and have already held meetings with companies and are statistical analysis which were previously allocated to working on these changes,’ the official noted, adding Superintendencia de Telecomunicaciones (Supertel or that the legislation will ensure that ‘all companies that Suptel). Earlier, President Correa established Mintel via provide services and offer terminals have diversity in a decree of August 2009 to assume top-level policy- terms of spectrum bands…[and will] enable citizens to making responsibility in the sector, and the ministry have clear information about the equipment they buy.’ took over ownership of incumbent telco Corporacion (January 5, 2016) Diario Financiero Nacional de Telecomunicaciones (CNT) in January 2010. (January 5, 2016) Telesemana Costa Rica The telecom regulator SUTEL has delayed El Salvador its decision on the competitiveness of the The Superintendencia General de nation’s telecoms markets until November Electricidad y Telecom (SIGET), has 2016. If the market is deemed competitive, announced that a total of 85,170 fixed and SUTEL will deregulate tariffs, providing operators with mobile numbers have been successfully greater control over their offerings and allowing them ported to another service provider since the service greater flexibility to introduce new services more easily. was introduced on August 24 last year. In a statement The process has been drawn out by SUTEL’s insistence on on its website, the watchdog claims that the country’s carrying out studies to verify that the market is indeed telecoms market has benefited from new and improved competitive. The regulator carried out an international deals and promotions from service providers in the benchmarking study and a survey of providers and four months since the launch of number portability other industry stakeholders on the level of competition (NP), which gives consumers the opportunity to freely in 2015, and will now conduct a household survey exercise their right to choose their telecoms operator. assessing the substitutability of services. In February- The legislation calling for the introduction of NP came August 2016 SUTEL will prepare reports on the relevant into force in 2010, but SIGET subsequently postponed markets, which will be put to public consultation before a the service’s implementation, stating that telecoms decision is made in November 2016. Previously, SUTEL’s operators were not prepared for the change, while a lack president had announced in May 2015 that the studies of consensus over who would fund the process also led would be completed by the end of December 2015. to further delays. Eventually, legislation stating that the Making matters worse, the studies have been criticized cost of the process would be absorbed by the recipient by the industry as being expensive and unnecessary. operator was approved in October 2014, and in January Emilio Oscar Barahona, president of the Chamber of 2015 SIGET announced that it had awarded the NP Information and Communication Technology (Infocom) administrator contract to Mediafon, in association with was quoted as saying that ‘the market already meets local company imCard, ahead of the service’s official the requirements to be declared [to have] effective launch for fixed and mobile users in August. competitive conditions,’ adding that SUTEL has the (January 20, 2016) telegeography.com power to make such a declaration without conducting further studies. (January 20, 2016) El Financiero

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France Guinea ARCEP wants the country’s operators The government of Guinea is planning to to wind up their network-sharing deals, introduce a new tax on SMS and mobile including the contentious Orange-Free data services on 1 February 2016 as part Mobile agreement. The regulator said of widespread changes to the Finance the deal that enables Free Mobile users to roam onto Act 2016. According to the report, a tax of GNF10 Orange’s 2G and 3G network cannot be justified in the (US$0.0013) will be introduced on text messages, while long term, however much it eased Free Mobile’s market the additional fee for mobile internet access will be 5% entry. ARCEP wants the agreement to end without of the overall cost of the subscription package. The new waiting for the existing contract to expire. For 3G, the levy follows the introduction of a GNF1 per second tax agreement should finish between end-2018 and end- on fixed and mobile telephony calls on July 1, 2015. 2020, it said. For the less important 2G services, the (January 27, 2016) Guineenews agreement should end between the beginning of 2020 and the end of 2022. The country’s other main network- sharing deal is between SFR and Bouygues Telecom, India involving 2G, 3G and 4G over a large part of France. The The Telecom Regulatory Authority of India regulator wants to ensure the deal delivers improved (TRAI) has published its recommendations coverage and quality of service claimed for it. ARCEP on reserve prices for frequencies in the only set an end date for the 4G part, which involves SFR 700MHz, 800MHz, 900MHz, 1800MHz, users using a part of the Bouygues Telecom network. The 2100MHz, 2300MHz and 2500MHz bands for the regulator wants to encourage 4G investment so has set upcoming spectrum auction, calling for the government an end date for this arrangement between end-2016 and to complete the spectrum harmonization process in the end-2018. ARCEP has laid out its position in a document 1800MHz band, and to carry out a similar re-assignment for public consultation. The deadline for any feedback exercise in the 800MHz range before proceeding with is February 23. The document will also be submitted the tender. Responding to requests from cellcos to adjust to the country’s Competition Authority. The regulator the amount of spectrum that operators care permitted stresses that its analysis is based on the market’s current to hold, the TRAI also found that there was ‘no plausible structure for four operators and could be amended reason’ to change the existing policy on spectrum caps, should events require, a reference to Orange’s merger which limits providers to 25% of the total assigned talks with Bouygues Telecom. Orange of course would spectrum and 50% of the assigned spectrum within a be in a position to sell off infrastructure if it goes ahead particular band. In its recommendation, the watchdog with its takeover of Bouygues Telecom. Any regulatory suggested that the Department of Telecommunications settlement will likely involve the disposal of physical (DoT) should complete its harmonization of the networks to a rival to satisfy competition concerns. 1800MHz band – the reshuffling of frequencies assigned Orange could then contribute to the winding down of to operators and reserved for the Ministry of Defense the current network-sharing regime, potentially fitting (MoD) to free up unused fragments of spectrum and with the regulator’s agenda. (January 12, 2016) mobileworldlive.com arrange allocations into contiguous blocks – before commencing the auction to ensure that the maximum amount of spectrum is available for operators. Similarly, Orange confirmed it is in preliminary talks with rival the TRAI recommended that the DoT rearrange Bouygues Telecom about a possible merger in the French spectrum allocations in the 800MHz band to free up market. Speculation over a possible deal between the additional airwaves, stressing that: ‘the sub-optimal two, which would create a joint entity with more than utilization of spectrum not only amounts to denial of 50 per cent mobile market share, has been rife since the opportunity for its better use by others but also the beginning of December, after Bloomberg first broke a revenue loss to the government in terms of upfront news of early discussions between the companies. In a payment, annual license fees (LF) and spectrum usage statement, Orange said the “discussions are not limited by charges (SUC).’ Regarding the 700MHz band, which will any particular calendar and hold no commitment to any be made available for the first time in the coming sale, particular predefined outcome”. “The group is exploring the TRAI recommended using the APT700 band plan, the opportunities available within the French telecoms with frequency division duplex (FDD)-based frequency market,” it added. In its own statement, Bouygues also arrangement. The entirety of the available spectrum confirmed talks, while adding that it had (January 5) (2×35MHz) should be put up for sale, the TRAI added. signed a confidentiality agreement with Orange. “For The regulator determined a reserve price of INR114.85 the moment, no decisions have been taken and there billion (USD1.69 billion) per MHz (paired) of pan-India is no guarantee that there will be an outcome to these spectrum, with per MHz prices per circle ranging from preliminary discussions. According to the progression of INR440 million (North East) to INR15.95 billion (Delhi). these discussions, more information will be disclosed in The TRAI also suggested adding rollout obligations due course,” it continued. Orange was previously linked requiring concession winners to cover all towns and to a bid for Bouygues Telecom in 2014, while market rival villages with populations between 15,000 and 50,000 SFR Numericable also reportedly failed in its attempt to within five years, and all towns and villages of 10,000- acquire the company last summer. If talks between the 15,000 residents within seven years. The reserve prices Orange and Bouygues progress, the deal is likely to face for pan-India spectrum in the 1800MHz and 2100MHz antitrust hurdles, as well as political scrutiny in France, bands was set at INR28.73 billion and INR37.46 billion with the market shrinking from four players to three as a per MHz (paired), respectively, whilst prices for 2300MHz result. French newspaper Journal Du Dimanche reported and 2500MHz were both set at INR8.17 billion per MHz earlier this week that the tie-up could be worth as much (unpaired). (January 28, 2016) telegeography.com as €10 billion, with Bouygues taking a 15 per cent stake in Orange worth €8 billion, while the remaining €2 billion paid is paid in cash. Neither Orange or Bouygues revealed valuation information in their statements.

(January 5, 2016) mobileworldlive.com

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India’s telecoms regulator is expected to sharply increase the amount of spectrum in the next auction Indonesia over last year’s level, raising expectations it will be the Telecommunications Minister Rudiantara largest spectrum sale ever. The next auction, which the has reportedly threatened to rescind the government aims to hold this fiscal year — barely a year operating concessions of ‘most’ of the after last year’s – is now expected to include spectrum country’s ten mobile phone licensees, in the highly efficient 700MHz band for the first time. warning them either to merge or build out their The availability of 770MHz of the 4G band across the networks to provide mobile internet services. With country’s 22 service areas would significant boost the the domestic mobile market dominated by just three amount the government could raise in the auction. carriers – Telekomunikasi Selular (Telkomsel), Indosat The Telecom Regulatory Authority of India (TRAI) is Ooredoo and XL Axiata – Bloomberg quotes the Minister examining how much spectrum should be auctioned and of Communications and Information Technology is considering allocating as much as 2,000MHz across as warning: ‘Each permit has requirements for the seven different bands. A senior official said TRAI could operator to invest and to build, so if they don’t build “suggest rational” pricing to stimulate interest in the anything, I can revoke their permit.’ The minister, who auction. TRAI chairman RS Sharma said it will recommend has a background in the private sector, having worked spectrum pricing to the government by the end of the at two of Indonesia’s biggest telcos before taking a role month. Credit Suisse warned earlier in the month that in government, added that given his background he is the largest three mobile operators will face increased ‘pragmatic’, and ‘will suggest they consolidate to have financial pressure if the country’s planned spectrum the capability to invest and retain their permits’. By the auction goes ahead as scheduled. The brokerage said end of his term in office, Rudiantara believes that the the spectrum sale will damage operators’ returns even Indonesian mobile landscape should have consolidated if it’s only a partial success. Telecom Secretary Rakesh to a maximum four mobile network operators (MNOs), Garg said recently the sale will happen in May or June. illustrating the government’s frustration at its inability to Last year’s auction of about 470MHz of spectrum in four shake up a market in which the ‘big three’ collectively bands raised a record INR1.1 trillion ($17.6 billion). The control around four-fifths of all mobile users, while the top three operators spent INR895 billion ($14.3 billion), seven minnows tussle over the remaining slice of the or 85 per cent of the total, forcing them to raise their pie. The minister points to the fact that a number of already-high debt levels. The country’s mobile operators underperforming MNOs are failing to satisfy the terms have said the 700MHz sale should be put off for two of their license agreements, despite having previously years until the 4G ecosystem has developed more. The been hit with fines. ‘So far we’ve handed them fines government has set a target of raising INR428.6 billion and penalties, but my job isn’t to accumulate funds for ($6.4 billion) from communication services for this the government,’ he is quoted as saying. ‘I only need to financial year, which includes the sale of spectrum as well enforce the permits and I’m prepared to do that, but I’d as license fees. However, the Times said that the chances rather take the business-friendly and practical approach are slim that the auction will be held in the current fiscal and suggest they merge to keep operating.’ In semi- year. The Times quoted Prashant Singhal, global telecoms related news, two of the three dominant MNOs, Indosat leader at Ernst & Young, as saying: “The government Ooredoo and XL Axiata, have announced a tie-up to should first give a clear timeline of auctions for the next offer 4G LTE network sharing – a first for Indonesia – as two to three years, including visibility on availability of part of efforts to expand their reach across the country. spectrum bands, reserve prices and intervals, such that The partnership involves the agreement of both parties the industry can make their spectrum and technology to share an LTE multi operator radio access network, allowing them to access network equipment, but keep bets with more clarity.” (January 22, 2016) mobileworldlive.com separate distinct infrastructure. The partnership comes after two years of discussions, and involves areas such The Department of Telecommunications (DoT) has set as Banyumas, Central Java; Surakarta, Central Java; a price of INR69.53 billion (US$1.04 billion) for Reliance Batam; and Banjarmasin, South Kalimantan, according Communications (RCOM) to liberalize its 850MHz to a statement published by Indosat Ooredoo. ‘This spectrum in 16 circles. The fee is based on the market partnership will expand 4G LTE for both of our customers price for the airwaves – INR53.84 billion – and a spectrum and it will also support the government’s program to usage charge of INR15.69 billion. By liberalizing its build Indonesia’s digital economy,’ said Indosat president spectrum resources, RCOM will be clear to share and and CEO Alexander Rusli. (January 20, 2016) telegeography.com trade its frequencies with other providers. Indeed, the cellco was previously reported to have held talks with newcomer Reliance Jio Infocomm (RJIL) regarding a Italy potential spectrum trading/sharing deal. According to Italy will reportedly press ahead with the sources, RCOM had applied to liberalize spectrum its plan to build high speed internet in 20 circles, but the DoT has yet to make a decision networks in underserved areas of the regarding the final four – Rajasthan, Karnataka, Kerala country, despite failing to secure any and Tamil Nadu – as a market-determined price for the partners for the €4 billion project. The government airwaves is not available. (January 13, 2016) The Economic Times announced last year it wanted to improve access to broadband across Italy, focusing on areas of the country so far shunned by operators, and said it was seeking to India’s Ministry of Defense (MoD) is expected to partner up with private firms to implement the plan. It relinquish half of its 300MHz spectrum holdings in was hoped the project would encourage major players the 1700MHz-2000MHz ranges within the next three like Telecom Italia and Vodafone to expand their fiber months. The move is part of the first phase of the DoT’s offering. Government minister Claudio De Vincenti, an spectrum harmonization program, and covers 150MHz undersecretary to the prime minister’s office, however 2G, 3G and 4G-compatible spectrum in seven operating told Reuters it would now go ahead with the plan areas. (January 7, 2016) The Economic Times through state-owned infrastructure firm Infratel, after being unable to find willing partners. “We will get started with Infratel and gather speed,” he said. “Decisions on

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eventual private-public partnerships with be made at a Telekom Srbija, which now operates under the MTS later date.” Italy lags behind other European countries brand previously used by its mobile arm. The concession covered by next-generation internet networks, according will only become operational once Kosovo is allocated to latest European Union data, with only 36 per cent of the +383 international dialing code, however. The households covered. This is compared to 43 per cent in trade is part of the Pristina-Belgrade Action Plan for France and 81 per cent in Germany. The government’s Telecommunications, signed between Serbia and Kosovo struggles in attracting private firms to buy into the in Brussels last year. The implementation of the pact has plan could be down to the large investment involved, seen some delays, with Kosovar news outlets reporting which is likely to only generate small returns. Both earlier this month that no progress had been made Telecom Italia and Vodafone have in the past year been towards the allocation of a dialing code to the breakaway linked with an acquisition of partially state owned fiber republic. Austria was expected to submit an application provider Metroweb, with advances so far shunned by the to the International Telecommunication Union (ITU) on government, which is keen to keep the company neutral. Kosovo’s behalf, but has missed two deadlines to do so, Vodafone and Vimpelcom’s Italian subsidiary Wind reportedly due to delays in MTS’s registration in Kosovo. signed a letter of intent with Metroweb in June to jointly (January 18, 2016) Kosova Press rollout fiber coverage, putting any possible takeover under major doubt. Prime Minister Matteo Renzi wants to bring broadband to almost all households in the Kosovo’s efforts to secure its own international dialing country by 2020, as part of a wider €13 billion plan to code have been delayed, after Austria failed to submit upgrade Italy’s phone infrastructure. The government an application to the International Telecommunication is planning to rent the upgraded internet networks to Union (ITU) on its behalf, local daily Koha. Austria was operators once the build out is completed, with tariffs due to apply to the ITU for Kosovo to be allocated the monitored by the country’s regulator. +383 code by 15 November 2015 as part of the Pristina- Belgrade Action Plan for Telecommunications, which (January 7, 2016) mobileworldlive.com had envisaged the allocation of the dialing code to Kosovo by January 15, 2016. According to the paper, the The competition watchdog (AGCM), has ordered the delay was caused by the registration of Serbian state- country’s post office to begin selling SIM cards of all owned operator Telekom Srbija in Kosovo, although no mobile service providers rather than just those of its own further details were given. Whilst neither the EU nor the MVNO unit, Poste Mobile. Network operator 3 Italia had Austrian embassy commented on the issue, the Kosovo complained that state-owned Poste Italiane was abusing government said it had received assurances from its monopoly position in the postal sector by using its Brussels that there would be no further delays. 13,000 retail outlets to market its own MVNO service (January 4, 2016) Ditore while denying access to other operators. 3 Italia says it made repeated requests to Poste Italiane to offer 3 Italia SIM cards in its post offices. The AGCM has not imposed any fine on Poste Italiane. Poste Mobile is the country’s Kyrgyzstan largest MVNO, with more than 3.5 million users at the The National Communications Agency end of September 2015. Separately, the AGCM has (NCA) has announced that all non- extended the deadline for its ongoing investigation into registered SIMs will be disconnected from whether incumbent operator Telecom Italia is complying 1 February 2016; the regulator noted that with a request to grant competitors equal access to its 345,000 SIMs remained unregistered as at end-December fixed line infrastructure. The watchdog now expects to 2015. Compulsory SIM registration was introduced complete its investigation by July 31. 2016. under government decree No. 97 ‘On approval of rules for the provision of mobile telecommunication services’, (January 6, 2016) reuters.com which entered into force on March 8, 2014. SIM card holders were expected to register their details within a year – i.e. by March 8, 2015 – or face disconnection. Due to the cellco’s collective failure to meet the deadline, the Kazakhstan timeframe was subsequently extended to August 8, then Cellcos in Kazakhstan launched mobile October 1, 2015. (January 7, 2016) telegeography.com number portability (MNP) on schedule on January 1, 2016, following the completion of testing by the government. Lithuania The new service means cellular users can transfer their Lithuania’s Communications Regulatory subscription between networks while keeping their Authority (RRT) has announced the original number. A report says that number porting preliminary results of its auction of must be carried out free of charge and within five hours spectrum in the 880MHz-915MHz and of the request being received at the original operator. 925MHz-960MHz paired frequency range, and the Kazakhstan was home to 27.9 million mobile subscribers 1710MHz-1785MHz and 1805MHz-1880MHz paired at the end of September 2015. (January 4, 2016) Kazakhstan Today band. The country’s three existing mobile network operators – Tele2, Omnitel and Bite Lithuania – were the winning bidders for the spectrum, offering a combined total of EUR38.1 million (USD41.1 million). Kosovo The trio currently has the right to use the frequencies The government has instructed the for wireless telephony and data services until October Regulatory Authority for Post and 31, 2017, and as such, the new licenses will be valid from Electronic Communications (Autoriteti November 1, 2017 to October 31, 2032. The winning Rregullativ i Komunikimeve Elektronike bidders will be required to ensure territorial coverage dhe Postare, ARKEP) to issue a temporary and limited of at least 98% within three years from the date of license to state-backed Serbian fixed line incumbent authorisation, as well as ensuring high speed (at least

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30Mbps) wireless broadband population coverage of at least 85% of the country from January 1, 2020. For its Mexico part, Omnitel claims it offered the highest price (EUR14.3 The selection of a vendor for Mexico’s million) for ‘radio frequency block bundle No. C1’, giving shared network project will take place on it the right to choose its preferred spectrum first. The January 29, the country’s communications TeliaSonera-owned company said it has requested block ministry said. Interested suppliers include A2 (891.7MHz-903.3MHz and 936.7MHz-948.3MHz) Alcatel-Lucent, Ericsson, Cisco Systems, Huawei, and block B2 (1735MHz-1760MHz and 1830MHz- Nokia, China Telecom, Motorola Solutions and Alestra. 1855MHz). Explaining its selection, Omnitel said: ‘The Requirements to take part in the process include chosen frequency blocks will ensure high 2G, 3G and 4G having assets worth $890 million and a projected network capacity and maximum coverage of Lithuania’s model for the next 10 years. The shared network is a territory, including and state border areas, as the chosen result of the completion of Mexico’s digital switchover frequency blocks have the biggest number of priority in December, which freed up the 700MHz band for a frequency channels harmonized with the neighboring shared 4G network. The Secretariat of Communications countries. Those channels also have the least limitations and Transportation (SCT) is partnering with telecoms compared with the other frequency blocks.’ According watchdog Federal Telecommunications Institute for the to the regulator, information regarding the auction project. Earlier this year, SCT said the cost of the project results will be reviewed by the director of the RRT, as had been reduced from $10 billion to $7 billion over the well as the auction participants, each of which will have next ten years. SCT wants the network to help MVNOs the opportunity to submit a claim within seven working compete with traditional carriers, although the auction’s days concerning any potential violation of the auction financial viability has come under scrutiny. procedure. If no claims are received, then the director of (January 11, 2016) BNamericas the RRT will approve the auction winners after this term expires. (January 31, 2016) telegeography.com Montenegro The Agency for Electronic Communications Lithuania has begun the process of reallocating spectrum and Post (EKIP) has revealed that it has in the 900-MHz and 1800-MHz bands that is currently received expressions of interest from in the hands of its three main mobile operators. Bite, several foreign companies regarding TeliaSonera-owned Omnitel and Tele2 all hold 900-MHz a possible fourth mobile license in the small Balkan and 1800-MHz frequency licenses that are due to expire country. EKIP Director Zoran Sekulic said that certain at the end of October next year. Thus, the country’s interest from foreign investors has been expressed. Communications Regulatory Authority, known locally as Therefore EKIP has designed procedures to reserve the RRT, has officially launched a competition to license a part of the radio frequency resources for potential that spectrum for a further 15 years, from 1 November new operators and to provide them with sufficient 2017 to 31 October 2032. All three mobile operators radio frequency resources for commercial operation.’ have indicated that they will take part in the process and Representatives from the country’s three incumbent have collected the required documents. The RRT said it operators – Telenor, Crnogorski Telekom and M:tel – has split the available spectrum into three lots, each with have reportedly voiced their collective unhappiness a starting price of €10 million. The minimum bid price about the development. EKIP attempted to introduce a increase is €100,000 and participants will be able to bid fourth player back in October 2011, only for the tender up to a threshold of €80 million. Based on the regulator’s to fall flat. The would-be concession comprised a five- local language statement, it is difficult to ascertain year authorization to use 2×5.2MHz in the 900MHz whether bidding for each block will be permitted at range, 2×14MHz at 1800MHz and 2×15MHz in the above €80 million. (January 12, 2016) totaltele.com 2100MHz range. EKIP set a minimum price of EUR1.315 million (US$1.434 million) per concession, and required bidders to have at least three years’ experience providing Madagascar electronic communication services. In the absence of a The government is increasing excise tax new bidder, incumbent operator Telenor scooped the on all telecommunications services to spectrum. (January 12, 2016) Balkan Insight 10% under the 2016 Finance Act, noting the revision is up from 7% for mobile calls, while national and international communications Myanmar including fixed telephony, internet, SMS and data A total of seven international transfer were previously exempt. The state expects to companies are reportedly interested gain tax revenues of MGA3.429 trillion (US$1.054 billion) in participating in Myanmar’s fourth in the next year – MGA1.689 trillion from customs telecoms license auction, though deputy revenue and MGA740.4 billion in domestic revenue. permanent secretary of the Ministry of End-users will be hit by the revised tax implementation, Communications and Information Technology (MCIT), with Orange Madagascar announcing in a statement Chit Wai, has declined to reveal any further details about that as of January 14 it will apply a hike on its service the companies that had submitted Expressions of Interest charges of between 3% and 10%. (EoI) earlier this month, Reuters reports. The successful applicant will be handed a 15-year license and form a (January 7, 2016) L’Express de Madagascar joint venture with a consortium (or special purpose vehicle, SPV) of eleven local companies, including ISP Yatanarpon Teleport (YTP). The joint venture will be 51% owned by the SPV, whilst the foreign partner will hold the remaining 49%. (January 26, 2016) telegeography.com

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Passive infrastructure firm Irrawaddy Green Towers (IGT) led by former Nigerian Bar Association President Wole has secured a US$122 million syndicated loan from a Olanipekun, claims that the NCC did not have the power group of European development finance institutions. The to impose the fine, nor was MTN found guilty ofan funding forms part of the tower company’s US$230 million offence that would warrant it to pay such a fine. MTN investment plan, which will feature the deployment of a argues that the NCC gave the operator an unreasonable network of more than 2,000 towers covering 14 million deadline for disconnecting over 5 million unregistered people. The Netherlands’ FMO arranged the loan, subscribers of seven days and imposed the fine within consisting of a US$13 million nine-year subordinated only 24 hours of MTN’s written submission on the loan and a senior US$109 million eight-year loan. FMO disconnection exercise. The company said the deadline provided the subordinated loan via its Infrastructure was unfair and ran contrary to the requirement to give Development Fund, whilst the senior loan was provided adequate notice to subscribers to update their records. by Deutsche Investitions und Entwicklungsgesellschaft It accused the regulatory agency of overstepping (DEG), France’s Proparco, CDC Group (UK), the Belgian its authority, acting as a legislator, executor, accuser, Investment Company for Developing Countries (BIO) prosecutor, judge and beneficiary of the penalty.

and Austria’s Oesterreichische Entwicklungsbank (OeEB). (December 23, 2015) telecompaper.com (January 11, 2016) The Myanmar Times The Ministry of Communications and Information Technology (MCIT) has pushed back the deadline for Norway Expressions of Interest (EoI) in the country’s fourth The Norwegian Communications mobile license to January 8, 2016 from its previous Authority (Nkom) has opened a deadline of December 18, 2015. No reason for the delay consultation on the auction rules for was given. The successful applicant will be handed a 15- the 900 MHz auction. Nkom will award year license and form a joint venture with a consortium approximately 2 x 20 MHz in the 900 MHz band. The of eleven local companies, including ISP Yatanarpon frequencies are currently assigned to TeliaSonera Norge Teleport (YTP). (January 4, 2016) telegeography.com AS and Telenor ASA. According to plan the auction will be conducted summer 2016. The licenses will be valid from January 1, 2018. Nkom has prepared draft auction The Communications Ministry pushed back the deadline rules for consultation, including rules for participation, for expressions of interest in acquiring its fourth mobile registration and the conduct of the auction. Nkom also license into 2016. Interested parties now have until presents the annexes to the rules, consisting of the January 8 to submit their expression of interest form, registration form, the bank guarantee and the draft the Ministry of Communications and Information license (in Norwegian only). Consultation responses Technology (MCIT) announced. Earlier this month the can be submitted in Norwegian or English to 900mhz- MCIT set a deadline of December 18 for would-be [email protected] with cc to [email protected] no applicants. It gave no reason for its decision to push later than February 26, 2016. The final auction rules will back the timetable. Once it has received the expressions be decided after the consultation and will according of interest, the MCIT will select a preferred applicant and to plan be published mid-April 2016. The deadline for apply to the Posts and Telecommunications Department submitting responses is February 26, 2016. (PTD) for a license, which will be valid for 15 years. The successful applicant will be asked to form a joint venture (January 27, 2016) cellular-news.com with a consortium of 11 local investors and companies – including ISP Yatanarpon Teleport (YTP) – known as Telenor Norway and NetCom will have to take part in the Domestic SPV (special purpose vehicle). Myanmar a spectrum assignment auction, after failing to agree opened up its telecom sector in 2014 and is currently on the placements of frequencies won by the pair home to three mobile operators: Telenor, Ooredeoo, and last month. In December 2015 Telenor and NetCom Myanma Posts and Telecommunications (MPT), which secured LTE-suitable 1800MHz spectrum, with the includes Japan’s KDDI among its partners. According to former paying NOK583.32 million (US$65.7 million) for the MCIT, telecom penetration had grown to 60% by the a 2×10MHz block and the latter NOK292.66 million for end of September 2015 from just 10% in 2013. a 2×5MHz block. Following the sale the Norwegian (December 23, 2015) totaltele.com Communications Authority (Nkom) revealed that the two operators could negotiate the placement of their new spectrum holdings between themselves by January Nigeria 20. However, with Telenor and NetCom having failed to MTN risks facing additional fines if it reach a consensus, the regulator has now confirmed that does not meet the year-end deadline the pair will have to take part in a spectrum assignment to pay the NGN 780 billion imposed auction to determine which actual frequencies the already, Nigerian authorities have warned. cellcos get, with the deadline for bids from the pair Nigeria’s Communications Minister Adebayo Shittu said set as January 28, 2016. In separate but related news, that his country will not be cowed or threatened by MTN’s Telenor has announced the launch of voice-over-LTE announced court challenge of the fine, The Independent (VoLTE) at no additional cost to its subscribers with reports. Shittu said the decision by the company to compatible handsets. Highlighting the fact that it had approach the Lagos High Court put it at risk of another built out a 4G network utilizing three frequency bands fine if it failed to meet the deadline. Shittu said that while – 800MHz, 1800MHz and 2.6GHz – the operator has MTN had the right to seek the court’s interpretation of suggested that the introduction of VoLTE will offer a the Nigerian Communications Commission’s decision, notable improvement in indoor coverage, while it claims nothing would stop the government from imposing call connection times will fall from the current seven to additional fines on the operator at the expiry ofthe ten seconds down to two to three seconds.

deadline. He noted that MTN had already admitted the (January 22, 2016) telegeography.com infraction when it pleaded for leniency and obtained a reduction in the amount of the fine. MTN’s court appeal,

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The Norwegian electronic communication regulator in March last year, saying it had decided instead to bid Nkom said that Telenor Norge and TeliaSonera Norge solely for 2600MHz frequencies; the operator advocated failed to reach an agreement by the January 20 deadline the construction of a single national 800MHz network regarding frequencies in the 1,800 MHz band. It said which could be shared by operators to reduce costs. By Telenor Norway had won 2 x 10 MHz in the recent the time the auction ended in October, however, two of auction and TeliaSonera had won 2 x 5 MHz. The matter the five available 800MHz packets had drawn bids of now progresses to another stage involving sealed bids, over PLN2 billion (US$535 million) each, while the other and the deadline for submission is January 28. three were sold at between PLN1.48 billion and PLN1.57

(January 22, 2016) telecompaper.com billion. The government had been expecting bids of around PLN300-500 million per license. The cellco now says that the high price of the concessions would make cooperation ‘unprofitable and unreasonable’. It is instead Paraguay considering using ODU-IDO (outdoor unit-indoor unit) Paraguayan mobile operator Telecom systems to provide 1800MHz network coverage levels Personal has attracted criticism similar to those available with 800MHz spectrum. It will from industry watchdog National also look to refarm its existing spectrum holdings in the Telecommunications Council (CONATEL) 900MHz and 2100MHz band. (January 4, 2016) telegeography.com over its ‘unlicensed’ 4G launch in the capital city Asuncion late last month. Personal opted not to participate in the regulator’s 1700MHz/2100MHz 4G auction earlier in Russia December, with rival operators Tigo and Claro paying a Russian federal competition regulator FAS combined US$90 million for the concessions on offer. has initiated an investigation into SMS Instead, Personal has opted to use a refarmed 10MHz traffic rates applied to SMS aggregators block of 1900MHz 3G spectrum to implement its 4G by Russian mobile operator MTS, Beeline launch, arguing that ‘operators are free to choose the and Megafon, reports Vedomosti. The modification of band they see fit, provided they have a license for the the rates led to price increases for end-users. Companies commercial exploitation of [that spectrum]’. Going using the text dissemination service submitted appeals forward, Personal expects to extend the 1900MHz 4G to the watchdog on the issue. MTS claims that it network to all main cities by the end of 1Q16. For its introduced new rates in order to reduce SMS spam. part, CONATEL has pledged to investigate the launch, (January 20, 2016) telecompaper.com on the grounds that Personal failed to seek its consent for the activation of such a service. The watchdog has also asserted that it will look into the cellco’s plans to ‘re- Senegal engineer’ its existing 850MHz and 1900MHz spectrum Senegal in January invited new entrants holdings for future 4G use. (January 5, 2016) telegeography.com to apply for its 4G auction, following a coordinated boycott by the country’s three current mobile operators, according Poland to the telco regulator. The Regulatory Authority for Poland’s Office of Electronic Telecommunications and Posts (ARTP) launched the 4G Communications (UKE) has awarded tender process in November. At the time it was only the 800MHz and 2600MHz licenses that open to existing license holders, of which there are three were won at auction last October. The in Senegal: Orange, Tigo, and Expresso. Frequencies in sale of 4G-capable spectrum ended with bids totaling the 800-MHz, 700-MHz, and 1800-MHz bands are up PLN9.23 billion (US$2.5 billion), with Orange emerging for grabs, and the ARTP set a reserve price of 30 billion as the highest bidder after offering a total of PLN3.17 francs (€45.7 million) for a 20-year license. Interested billion for two 5MHz blocks of paired frequencies in the parties had until Monday to submit their applications. 800MHz band and three blocks of 2×5MHz at 2600MHz. In a statement on Monday, the watchdog revealed that The other winners were T-Mobile (PLN2.14 billion for it received a letter in December signed by Orange, Tigo 800MHz and 2600MHz licenses), P4/Play (PLN1.72 and Expresso reporting their “concern on the reserve billion, 800MHz and 2600MHz), NetNet (PLN2.05 price of the license,” but said that it received no formal billion, 800MHz only) and Polkomtel (PLN155.8 million, request to push back the application deadline. “On 2600MHz only). Licensees have two years to cover 1,149 this day, the state acknowledges the collective and municipalities designated as internet ‘white spots’, which coordinated non-participation of the operators,” said are regions with no internet access or access at speeds the ARTP. The regulator said that the spectrum reserve of below 10Mbps. They must also cover 1,053 towns of price was developed from a benchmark of more than 20 up to 30,000 inhabitants within three years and 91 towns countries, taking into account the quantity and quality of between 30,000 and 50,000 inhabitants within four of available frequencies, the population, the income of years. In total, the licenses require coverage of at least Senegal’s telco market, and the coverage obligation 80% of Poland in geographic terms. attached to the 4G licenses. The ARTP said it plans to revive the 4G license process in the coming days. “The (January 26, 2016) telegeography.com future call for applications will be open to new entrants, [and] international telecommunications operators, The Polish mobile operator Polkomtel, which is part of interested in the development of telephony and mobile the Cyfrowy Polsat group and operates under the ‘Plus’ Internet in Senegal,” the ARTP said. (January 20, 2016) totaltele.com brand, has abandoned plans to utilize the 800MHz band for 4G LTE services, saying it will be more cost-effective and efficient to use spectrum in other ranges. A statement The Regulatory Authority for Telecommunications and on the company’s website explained: ‘Polkomtel is Post (ARTP) in Senegal wants 4G to be a reality in the developing a model of network development based on first quarter of 2016, and to that end has set an18 900MHz, 1800MHz, 2100MHz and 2600MHz. Polkomtel January deadline for companies interested in obtaining withdrew from the government’s 800MHz license auction a commercial operating license. Director General of the

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ARTP confirmed the development, noting that under the plans to protect users’ privacy. Sejong Telecom Co, K terms and conditions of the awards operators will have Mobile and Quantum Mobile are now in the running for to deliver 4G coverage to at least 65% of the population the country’s fourth mobile license, while Korea Mobile by 2021, rising to 85% by 2026. The city of Dakar and Internet (KMI) and Internet Space Time chose not to take all regional capitals should be fully covered within five part in the most recent application process, each having years, while all nine major highways of the country must had previous bids rejected. Should the MSIP decide be served within ten years. The ARTP official, however, that none of the three candidates are eligible for the declined to provide any details on minimum reserve concession it has, however, said that it may not license fees for the concessions or the amount the government any of them. As part of the process, representatives from hopes to raise from the process. The telecommunications Sejong Telecom, K Mobile and Quantum Mobile will also sector generated nearly 10% of GDP in 2014, and is one go through hearing procedures, although they will not of our most dynamic service sectors and, indirectly, is a be able to meet judges face-to-face for transparency major sector of the economy of Senegal – and growing reasons. (January 22, 2016) Yonhap News Agency strongly. As such, the state sees the industry as a key driver of wider economic growth.

(December 23, 2015) Agence Ecofin Togo The telecoms watchdog, the Authority of Posts and Telecommunications Serbia Regulation (ART&P) has extended the Regulatory Agency for Electronic deadline for its SIM registration program Communications & Postal Services until January 10, 2016, from its previous cut-off date of (Regulatorna Agencija za Elektronske December 1, 2015. Subscribers that do not complete the Komunikacije i Postanske, RATEL) has registration process by the new deadline will have their confirmed that local mobile operators Mobile Telephony SIMs blocked. ART&P began implementing the measure of Serbia (MTS), Telenor Serbia and Mobilkom Serbia under Decree No. 2011-120/PR, which establishes (VIP Mobile) have each been awarded 800MHz mandatory identification of all subscribers using mobile spectrum, following last November’s tender process. telecoms services in Togo. Adopted in 2011, Decree No. The ten-year concessions comprise frequencies in the 2011-120/PR is intended to clamp down on handsets 791MHz-821MHz/832MHz-862MHz spectrum range being used for illegal activity. Four years after it came and can be extended by a further five years at a later into force, however, many users still remain unidentified date. In November 2015 the sale process generated a – something the watchdog is looking to change. Mobile total of EUR105.05 million (US$111.81 million). MTS paid operators Togo Cellulaire (Togocel) and Atlantique EUR35.05 million for its 2×10MHz technology neutral Telecom (Moov) have been asked to ensure that all their concession, while Telenor Serbia and VIP Mobile each customers are informed of the deadline. paid EUR35.00 million for similar licenses. (January 15, 2016) (January 8, 2016) Agence Ecofin telegeography.com Ukraine South Africa The National Commission for the State South Africa’s Independent Regulation of Communications and Communications Authority of South Informatization (NCCIR or NKRZI), has Africa (ICASA) is planning to launch an refused to extend 4G LTE-suitable wireless inquiry into the impact of over-the-top spectrum licenses held by MMDS Ukraine, an associated (OTT) VoIP services – including WhatsApp, Viber and company of SCM Group, the conglomerate owned by Skype – on the data services market in the next financial the country’s richest man Rinat Akhmetov, which also year, following hearings held by the Portfolio Committee owns nationwide incumbent telco Ukrtelecom and sister on Telecommunications and Postal Services. ICASA’s operator Vega. 4G-capable frequency licenses expiring chief operating officer Willington Ngwepe said: ‘our plan in May 2016 have not been renewed in the following is that [in] the next financial year, we will be conducting territories: Volyn, Poltava, Kirovohrad, Cherkasy, Rivne, an inquiry into priority markets … We intend to look into Khmelnytsky, Vinnytsia, Luhansk, Sumy, Nikolaev, data services next and as part of that, we will consider Kherson, Ternopil, Kharkiv, Transcarpathian, Zhytomyr, the possible impact of OTTs on the market.’ While MTN Ivano-Frankivsk, Lviv, Chernivtsi, Chernihiv and Kiev. The South Africa and Vodacom have called for regulations report adds that the NCCIR refused to renew similar governing OTT services, Cell C has warned that such frequency concessions held by MMDS Ukraine in Odessa legislation ‘could be to the detriment of the industry and and Dnipropetrovsk at the end of 2015, whilst the reason consumers at large’. (January 28, 2016) TechCentral stated is the failure of MMDS to utilize the spectrum. The Ukrainian telecoms regulatory authorities awarded a nationwide 2.5GHz license (suitable for WiMAX, but now South Korea earmarked for LTE), without tender, in December 2005 South Korea’s Ministry of Science, for US$150,000 to SCM, which transferred the license to ICT, and Future Planning (MSIP) has MMDS Ukraine, a firm 25%-owned by the conglomerate. revealed it aims to determine whether The potential 4G frequencies have largely remained or not to license a new mobile network dormant in many areas of the country ever since. operator next week. Three candidates are currently (January 14, 2016) BizLiga being considered as possible licensees after months of deliberation following an initial government assessment back in November 2015. As part of plans to enhance competition in the South Korean wireless sector, the MSIP is understood to have established a special team of 16 experts that will assess the candidates’ service, financial, and technology capabilities, along with their

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Fi Alliance for working with us to reach this important United Kingdom result.” That said, the Wi-Fi Alliance isn’t saying it is Two appeals over restrictions to charges okay with commercial deployment of LTE-U. The Wi-Fi that British fixed line incumbent BT is Alliance said it “remains concerned about the widespread permitted to make for use of its superfast introduction of LTE-U devices” and hopes that “before broadband network have been referred the [FCC] approves the routine use of LTE-U products, to the Competition and Markets Authority (CMA) by the commission will evaluate the results of testing in the Competition Appeal Tribunal (CAT). Previously, BT real-world scenarios to demonstrate that LTE-U devices and rival TalkTalk both lodged appeals with the CAT can coexist fairly” with others. (January 31, 2016) recode.net following a decision on superfast broadband pricing by local telecoms regulator OFCOM in March 2014. As the largest retail provider of fiber broadband services The Federal Communications Commission (FCC) has over its network, BT is required to allow other operators approved AT&T Mobility’s purchase of two 700MHz to use its infrastructure to sell superfast broadband Lower C-block licenses from Peoples Wireless in Texas. to consumers under a virtual unbundled local access The spectrum attached to the concessions covers 17 (VULA) model. OFCOM’s pricing rule aims to ensure that counties across two Cellular Market Areas (CMAs), and BT maintains a sufficient margin between its wholesale post-transaction, AT&T will increase its below-1GHz and retail superfast broadband charges, in order to spectrum holdings from 30MHz to 55MHz (varying by allow other providers profitably to match its prices. county). In its review of the deal, the FCC observed: Under the UK’s 2003 Communications Act, if decisions ‘We also note that the three other nationwide service by OFCOM are appealed to the CAT and include a price providers each have significant 3G and LTE population control matter, then the issue must be referred to the and land area coverage in both markets. Moreover, CMA for determination. As such, both parties are said to other entities were actively solicited with respect to have ‘sought a reference to the CMA of the price control this business opportunity, so they had the opportunity matters in their respective appeals’. A press release has to acquire this low-band spectrum on the secondary also confirmed that the CAT has permitted both TalkTalk market’. AT&T has been an active participant in the and another of the country’s alternative broadband so-called ‘secondary spectrum market’ in recent years, providers, Sky UK, to be ‘interveners’ in the appeal plugging holes in its network with a series of small- brought by BT, while the incumbent will be an intervener scale transactions. The value of the Peoples Wireless in the appeal brought by TalkTalk. A determination will deal, which was agreed in October 2015, has not been be made by a group of independent panel members disclosed. (January 19, 2016) telegeography.com supported by a case team of CMA staff, and the CMA has six months to send its final determination to the CAT. The Federal Communications Commission said Friday it Following this, the CAT will include the determination in has removed Cuba from its “exclusion list,” allowing U.S. its judgment alongside the other issues it has considered companies to provide telecommunication services to as part of the appeals. (January 7, 2016) telegeography.com the Caribbean country without separate approval from the agency. Cuba was the last remaining country on the United States FCC’s exclusion list. “Removing Cuba from the Exclusion The Federal Communications Commission List benefits the public interest as it will likely alleviate approved further testing of the approach, administrative and cost burdens on both” telecom known as LTE-U (U for unlicensed), which companies and the FCC and fuel more competition has been at the center of a struggle among telecom carriers interested in the market, the between tech heavyweights. For months now, Verizon, agency said. The move has been anticipated following the Qualcomm and others have been pushing LTE-U, Obama administration’s decision in late 2014 to reopen promising that it would allow for more efficient data use diplomatic relations with the island nation. At the time by cellular devices, while also insisting that it can be a of the dramatic announcement, the U.S. government good neighbor with Wi-Fi devices. Opponents, including said telecommunications companies will be among Wi-Fi advocates, Google and various cable companies, the first industries to to set up equipment and other meanwhile, have been leading a charge against the infrastructure projects needed to begin their services. In effort, saying LTE devices could overwhelm the airwaves, September, the departments of Commerce and Treasury shutting out Wi-Fi and other uses. Both sides have put followed through by removing a series of restrictions on forth a variety of scientific arguments to bolster their Americans traveling to and doing business with Cuba. business-related reasons for supporting or opposing The changes, ranging from investment to banking to LTE-U. The FCC is giving Qualcomm permission to joint ventures, enabled American businesses to establish test gear at two Verizon facilities, saying the move will a “physical presence” in Cuba and hire Cubans to work give device makers an opportunity to show they won’t in their offices. The U.S. economic embargo on Cuba interfere with Wi-Fi and other unlicensed spectrum remains in place since only an act of Congress can lift users. The agency has been studying the issue for it. Cuba is a largely untapped market that is hungry some time now, but has been trying to avoid taking for expanded wireless phone and Internet services. In sides. “The Office of Engineering & Technology and the June, 2013, Cuba extended access to its new high-speed Wireless Telecommunications Bureau have encouraged internet to citizens at designated, censored ‘cyber points’ the industry to address and resolve these concerns, “at prices few can afford,” according to advocacy group and considerable progress has been made,” the FCC’s Freedom House. Only about 5% to 26% of Cubans have Julius Knapp said in a blog post. Qualcomm said it was access to the Internet, it said. “Cuba has long ranked pleased with the FCC’s move as well as a letter from the as one of the world’s most repressive environments Wi-Fi Alliance that indicated the group did not oppose for information and communication technologies,” Qualcomm’s application. “We are collaborating with the according to Freedom House’s analysis of the Cuban Wi-Fi Alliance to develop a coexistence test plan, and Internet market. “High prices, exceptionally slow we anticipate using that plan for joint lab and field tests connectivity, and extensive government regulation have to validate that LTE-U will not have any adverse impact resulted in a pronounced lack of access to applications on Wi-Fi. We would like to thank the FCC and the Wi- and services other than email. Most users can access only

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a government-controlled intranet rather than the global and commercial build out methodologies. On December internet, with hourly connection costs amounting to 20 22 Charter provided similar information, as well as new percent of the minimum monthly wage.” In September, details concerning its commitment to deploy a new low- Verizon Wireless said it became the first U.S. wireless cost broadband service. Other documentation submitted company to offer roaming in Cuba through its “Pay-As- relates to IP interconnection, residential pricing and You-Go International Travel” option, which costs $2.99 packaging methodology and cybersecurity. The review per minute for calls and $2.05 per megabyte for data. process, which started in September 2015, will still have The State Department recommended in October that 65 days to run once it resumes on January 20. Charter the FCC remove Cuba from the exclusion list, and the and TWC entered into a definitive merger agreement FCC began collecting public comments. Not surprisingly, in May 2015, which valued the latter at US$78.7 billion. the industry is supportive of the move. AT&T told the Running parallel to the above, Charter and Advance/ FCC “that removal of Cuba from the Exclusion List would Newhouse Partnership – the parent company of smaller help foster competition for bilateral communications rival Bright House Networks – announced that they between the United States and Cuba, and thus increase had amended an agreement signed on March 31, the flow of information to and from the Cuban people,” 2015, whereby Charter would acquire Bright House for according to the FCC’s order for removing Cuba from US$10.4 billion. Each of the deals received shareholder the list. Medical device maker Medtronic said scrapping approval in September 2015. The combination of the reporting requirement will “promote connectivity for Charter, TWC and Bright House will create the second medical devices and services, such as remote monitoring largest broadband provider in the US – behind cable of medical devices and exchange of medical information giant Comcast – serving around 23.9 million customers between the two countries,” according to the FCC order. across 41 states. (January 6, 2016) telegeography.com (January 15, 2016) usatoday.com Tom Wheeler, chairman of the Federal Communications The Federal Communications Commission’s planned 600 Commission (FCC), predicted a “spectrum extravaganza” MHz incentive auction process reached a milestone this from the billion-dollar sale of US airwaves scheduled week as the broadcaster application deadline passed, for the first quarter of 2016. In bullish mood, the FCC with apparently positive results. Television broadcasters chief said the so-called reverse auction will prove to be interested in giving up some of their current spectrum the world’s largest sale of radio frequencies. It is due to holdings in the 600 MHz band had until January 12 to happen in 84 days. However he would not be drawn into file an application with the FCC, with a statement from putting a figure on the proceeds during a fireside chat the National Association of Broadcasters indicating with Gary Shapiro, CEO of the Consumer Technology “robust” participation from television broadcasters. “The Association. Wheeler explained how the auction will FCC’s staff has done a remarkable amount of work to get work, with broadcasters first selling their 600MHz us to this point,” explained NAB EVP of communications spectrum to the FCC then the regulator auctioning the Dennis Wharton, in a statement. “NAB expects robust frequencies to the mobile industry. “Safe to say it will be broadcaster participation in the reverse auction, and we a spectrum extravaganza with lots of selling and lots of hope to see similarly robust participation from wireless buying,” he said. Broadcasters have less than one week bidders in the forward auction. While we’ve expressed to register as spectrum sellers with the FCC. He said our concerns, we hope that the rules and systems the big name broadcasters were interested in the auction FCC has in place will ensure that this voluntary auction but didn’t name anyone, and said undisclosed mobile goes off without a hitch, and we look forward to the operators were game too (although Sprint has already close of a successful auction.” NAB had initially fought ruled itself out). There will be a transfer of spectrum in the FCC on auction rules, including filing a petition with every major US city, he predicted. “This is the last time we the United States Court of Appeals for the District of sell sand on the beach. And this is beachfront property,” Columbia Circuit claiming the FCC auction rulemaking said Wheeler. But this process has not been without its changed the “methodology used to predict local share of headaches, with broadcasters originally taking television coverage areas and population served, which legal action against the FCC over the sale.

could result in significant loss of viewership of broadcast (January 5, 2016) mobileworldlive.com TV stations after the FCC ‘repacks’ TV stations into a shrunken TV band.” That challenge was eventually overturned. The deadline for companies looking to bid Vietnam on the broadcast spectrum is currently set at February The Prime Minister approved a broadband 9, with the reverse-auction proceedings still set to begin development plan that calls for 3G/4G on March 29. A number of large mobile carriers have networks to cover 95 per cent of expressed keen interest in the process, including AT&T residential areas and fixed-line broadband and T-Mobile US. Verizon Wireless has been cagey in reaching at least 40 per cent of households by 2020. The its auction intentions, while Sprint has said it will not new program also calls for at least 60 per cent of internet participate. (January 13, 2016) rcrwireless.com subscribers having access to a minimum download speed of 25Mb/s, Viet Nam News reported. The government is The Federal Communications Commission (FCC) has targeting 100 per cent of public internet access points paused the ‘shot-clock’ on its 180-day review of Charter nationwide offering broadband service by 2020, with Communications’ proposed purchases of rival cablecos half of the access points delivering a minimum download Time Warner Cable (TWC) and Bright House Networks. speed of 50Mb/s. Its target for wireless access is 4Mb/s The watchdog said the 15-day recess is necessary to in urban areas and 2Mb/s in rural areas. The government evaluate a number of supplementary documents filed said the program aims to encourage businesses to last month by the merging companies. On December 17, invest in broadband infrastructure and make issuing to help FCC staff to assess the applicants’ commitment to licenses for telecoms businesses easier. It also plans to build one million residential line extensions and deliver create market mechanisms to encourage competition US$2.5 billion of commercial network investment, TWC and won’t allow discrimination between state-run and provided new information regarding its own residential private companies. The government plans to set targets

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SAMENA TRENDS _ JAN 2016 SAMENA TRENDS _ JAN 2016 for local firms to manufacture or assemble equipment to The Postal and Telecommunications Regulatory reduce costs and lower imports. (January 25, 2016) Viet Nam News Authority of Zimbabwe (POTRAZ) has announced a one cent per minute increase in voice tariffs, taking the cost of calls from US$0.15 per minute to US$0.16. At the start Zambia of 2015 the regulator implemented a drastic reduction The mobile subscribers have been given in voice tariffs, requiring operators to cut the cost of two months by the Zambia Information calls from US$0.23 per minute to US$0.15, and there had and Communication Technology Authority been plans to introduce another cut at the start of this (ZICTA) to update incorrect SIM card year, but operator revenues have been hit hard by the registration data or face permanent disconnection. The move, with mobile market leader Econet Wireless forced sector regulator has issued a statement urging the public to lower its wages and negotiate cheaper deals with to check registration status with their respective mobile its suppliers. Econet did launch an appeal against the service providers, while noting that it had teamed up 2015 tariff cuts but its case was rejected in November. with all three local cellcos – MTN Zambia, Airtel Zambia The latest move by POTRAZ will give operators some and Zamtel Mobile – to ‘clean up’ registered SIM cards breathing space, with the telecoms sector also being held by operators. Approximately one million SIM cards affected by the weak domestic economy which has hit have been temporarily blocked by mobile operators for disposable incomes. Zimbabwe’s mobile market is home not being properly registered, and the ZICTA has said to three players – privately owned Econet plus state- the clean-up is intended to address unclear photos, backed firms NetOne and Telecel – while the fixed line incorrect and incomplete information and other details sector is dominated by state-run TelOne. on the IDs. In its statement on the matter, the ZICTA said: (January 11, 2016) TechZim ‘Please be advised that all SIM cards deemed to have any of the problems highlighted will be permanently de- registered, if not corrected by February 29, 2016.’

(January 8, 2016) ITWeb Africa

Zimbabwe The latest quarterly report from the Post and Telecommunications Regulatory Authority of Zimbabwe (POTRAZ) shows that the country has seen a surge in interest in 4G LTE technology thanks to the continuing network rollouts by mobile operators NetOne and Econet. There were 26,185 LTE users in Zimbabwe at the end of September 2015, up from just 474 three months before. The wider mobile market saw the active subscriber total rise from 11.95 million to 12.39 million over the same three-month period, with market leader Econet claiming 6.68 million users, up from 6.63 million at end-June, NetOne taking second place with 3.80 million (up from 3.38 million), and Telecel witnessing a slight fall, from 1.94 million to 1.91 million. Meanwhile, the number of mobile money customers in the country rose from 6.23 million at June 30, 2015 to 6.67 million three months later, though the total value of deposits fell by 10.5% to US$458 million due to the tough economic situation. (January 20, 2016) telegeography.com

Zimbabwe’s mobile market leader Econet Wireless is suing the country’s telecoms watchdog, the Postal and Telecommunications Regulatory Authority of Zimbabwe (POTRAZ), for US$132.7 million. The cellco says POTRAZ was wrong to order mobile operators to reduce tariffs by 30% from January 1, 2015 and is suing for lost profits; it claims that the move was outside of the powers given to POTRAZ by the Telecommunications Act. In addition, Econet says that while it paid a USD137.5 million fee to renew its operating license in mid-2013, rival operators NetOne, Telecel and TelOne – all of which are either wholly or part owned by the Zimbabwean government – failed to pay for their own license renewals, and this action was ‘discriminatory’ according to Econet. Econet did launch an appeal against the 2015 tariff cuts, but its case was rejected in November. (January 15, 2016) NewsDay Javaid Akhtar Malik Regulatory Affairs SAMENA Telecommunications Council

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

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wholesale NEWS

Mexico to launch wholesale facilitates international mobile roaming services on 2G, 3G and 4G networks telecoms network tender across 612 partner networks. In addition, Mexico will launch a long-delayed tender etisalat’s roaming data network facilitates for one of the largest infrastructure customers subscribed to etisalat’s mobile projects under President Enrique Pena data packs to access internet on the Nieto, a wholesale telecoms network country’s largest roaming data network that will cover most of the country. The of a total of 213 operators across 100 project, which was meant to be up and countries. The operator also recently running by 2014, is part of a sweeping launched a new access point for its telecoms reform aimed at curbing the mobile roaming customers to view and dominance of Carlos Slim’s America subscribe to the most preferred roaming Movil and improving Mexico s low levels voice or data plan while travelling. WHOLESALE of cell phone penetration and network coverage. It offers the winner cheap, high Updates quality spectrum in the 700MHz band to build a mobile network that operators India’s Idea reports slowing and virtual network operators can rent. growth as tariffs fall However, the winner will not be able to India’s third largest operator Idea sublet spectrum and the network will Cellular reported a sharp increase in have to cover a minimum of 85 percent data and voice usage in its Q3 ending 31 of the population, the government said December, but downwards pressure on on Thursday. Mexico s telecoms minister tariffs caused by increased competition told Reuters last year it expected a capital and regulatory changes slowed revenue investment of around $7 billion in the and profit growth. Mobile data usage project. jumped 75.8 per cent to 81 billion megabytes during the quarter and voice minutes expanded 16.7 per cent Etisalat has over 100 to 199.2 billion minutes. But declines in roaming partners for its data and voice rates (down 17.2 per cent and 10.6 per cent respectively) slowed 4G LTE networks the operator’s revenue growth from the Etisalat has more than 100 roaming previous year, the company said. The partners for its 4G LTE networks across 55 operator attributed the decline in tariffs countries. The telecom operator currently to “intense pressure on mobile data rates,

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Vodafone Malta drops Telefonica wins 2016 EU roaming fees Global Wholesale Service Vodafone Malta has removed Provider Excellence European roaming charges, enabling its customers on certain tariffs to make Award at prestigious and receive calls and messages and Pacific Telecom Council use mobile data services across Europe at no additional cost. Its revised ‘RED’ event as wireless broadband demand growth unlimited plans will provide free in- Telefonica Business Solutions, a leading is slower than the increased supply bundle roaming services for Maltese provider of a wide range of integrated from operators launching/expanding travellers to all 27 EU countries plus communication solutions for the B2B their 3G/4G footprints”. In addition, it Albania, Iceland, Liechtenstein, Norway market, has today been awarded with said the regulator last March reduced and Switzerland, while the firm said it the 2016 Global Wholesale Service the termination charge for incoming has also reduced the cost of out-of- Provider Excellence Award in the Large calls by 30 per cent and lowered the cap for national roaming calls and texts on 1 May. While consolidated Q3 revenue increased 12.3 per cent to INR90.1 billion ($1.35 billion), its net profit dipped slightly to INR7.64 billion from INR7.67 billion a year ago. Consolidated EBITDA increased 13.6 per cent to INR31.28 billion, as its EBITDA margin rose 0.4 points to 34.7 per cent. Last year the operator added 29.7 million subscribers, taking its total customer base to 182 million. It had a 19.1 per cent share of the country’s mobile connections, according to TRAI. Its net mobile data customer base, however, remained flat at 41.4 million (41.3 million in fiscal Q2) during the quarter as the company said it bundle calls and data usage for its RED Service Provider division for Data tightened its data subscriber reporting. customers. Some Vodafone customers Value by ATLANTIC-ACM at PTC, Asia- Higher mobile data usage per customer have complained, however, that the Pacific’s premier telecommunications helped improve blended mobile data price of the RED tariffs has also been annual conference event held in ARPU to INR145 ($2.17) in fiscal Q3. increased – by between EUR2 and Honolulu, Hawaii. The awards are Non-voice revenue contributed 28 EUR5 (USD2.27-USD5.67) per month. based on extensive customer surveys per cent of total turnover during the A Vodafone press release stated: ‘With conducted by ATLANTIC-ACM as part quarter, up from 23 per cent a year the number of Maltese travelling of its annual Global Wholesale Report earlier. Idea said the INR23.1 billion abroad increasing year on year – in Card. This year’s awards were based it spent on capex was financed by a August 2015 the National Statistics on over 1,400 carrier ratings from cash profit of INR23.5 billion for the Office recorded an increase of 15.3% more than 370 international wholesale quarter. It rolled out almost 11,000 compared to the previous year, with customers. The Data Value award is base stations in the quarter, including the majority travelling to EU countries given to the provider who received the nearly 7,700 3G/4G sites, taking its – these new plans will respond to a highest combined average score for nationwide total to 170,000 (47,500 growing need on the part of Maltese the quality and price competitiveness 3G/4G). The operator said it has rolled consumers.’ The move has been of their data product suite such as out 4G service in 183 towns in seven prompted by an EU decision which Ethernet DIA, Legacy DIA, IP WAN, service areas and aims to expand will force all of the region’s operators International Private Line and Ethernet the 4G footprint to three remaining to remove mobile roaming charges Transport products. regions, where it has 4G spectrum, by across Europe by June 2017. Vodafone March and cover more than 750 towns is Malta’s largest cellco by subscribers, by June. Its 900MHz spectrum in seven according to TeleGeography’s ARCEP warns scrapping regions, which expired in December, GlobalComms Database, with 46% of was replaced in five service areas with the country’s 567,000 mobile users at roaming fees in overseas the 900MHz ‘liberalized’ spectrum the end of September 2015. departments will it won in the March auction. It will have access to 900MHz spectrum in destabilise markets the other two regions in April. Idea ARCEP this week warned that removing signed an agreement with Videocon roaming fees between France and its Telecommunications last November overseas departments and territories to purchase 1.8GHz spectrum in two will destabilize markets. “Accompanying service areas. measures for operators would be

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SAMENA TRENDS _ JAN 2016 SAMENA TRENDS _ JAN 2016 required to ensure that putting an end voice call rate for on-net and off- set of two PLC adapters (sending and to the roaming fees billed to end users net domestic voice calls, to support receiving) costs RUB1,999, payable is economically viable,” the French competition between large and in instalments. Rostelecom currently telco regulator said in a statement on small network operators. As reported claims to have over 60% of the national Thursday. In October 2015, France’s by the Sri Lankan Daily Mirror, the Russian IPTV subscriber market. government passed a law that will Telecommunications Regulatory put an end to roaming charges for Commission (TRC) has scrapped an mobile calls and text messages for existing dual-rate structure for on-net Impact Telecom consumers travelling between France and off-net voice calls, by raising the and its overseas departments and on-net rate and lowering the off-net Completes Merger territories. The new law is due to come rate. The TRC said the floor rate revision with TNCI Operating into force on May 1. France has five was made in response to submissions overseas departments: French Guiana, made by the [smaller] telcos and would Company Guadeloupe, Martinique, Mayotte and only be applicable for new connections Impact Telecom, a leading provider Réunion. The French Southern and issued from the effective date. For of voice and messaging solutions to Antarctic Lands together constitute its end-user tariffs with per-second basis businesses, carriers, and consumers, sole overseas territory. ARCEP said that billing, the new unified minimum voice today announced the completion of the wholesale roaming market requires call rate will be LKR1.80 (USD0.01) its operational merger with Garrison reform before retail roaming fees can per minute for calls within Sri Lanka Investment Group entity, TNCI be phased out. In addition, ARCEP regardless of making on-net or off-net Operating Company, a national voice, said that fair usage policies should be calls; previously the on-net rate was data and cloud services provider. Bob permitted to coincide with the end of LKR1.50 and the off-net rate LKR2.50. Beaty will continue as President and roaming fees. “If these conditions are For end-user tariffs with per-minute CEO and Laura Thomas, former CEO not met, operators’ business models basis billing, the new common floor of TNCI will become Chairman of the will be undermined, and operators rate is LKR1.50 for calling all domestic Board of Directors of the new company. in France’s overseas markets will be phone numbers (previously LKR1.50 TNCI systems and operations are deprived of the resources they need on-net, LKR2.00 off-net). The SMS/ now being combined with Impact to introduce superfast mobile services MMS minimum charge was already Telecom’s existing infrastructure to and to invest in 4G network rollouts,” a unified on-net/off-net LKR0.10 per form the new Impact Telecom, which the watchdog warned. message, but the TRC is raising this to will be uniquely positioned to serve LKR0.20 from 1 February. Five mobile businesses and carriers of any size with network operators are active in Sri voice, messaging, cloud and unified Orange wins Global Lanka, although the market leader communications needs. Beaty said the Dialog Axiata accounted for more than deal underscores Impact’s commitment Wholesale Service 44% of all users at end-September to quality and customer experience. Provider Excellence 2015. “The combined Impact Telecom and TNCI infrastructure creates a robust Award nationwide network along with Orange International Carriers is Rostelecom introduces enhanced product capabilities backed pleased to have been acknowledged by a dedicated team of experts. Our as a prize-winner in this year’s Global PLC for IPTV; inks customers will notice the difference.” Wholesale Service Provider Excellence RUB4.4bn wholesale Joshua Brandt, Managing Director at Awards. This year’s prize, in the Garrison Investment Group added, category of Large Service Provider for deal with Beeline “Garrison believes in the growth of Voice Value, recognises excellence in Russian nationwide fixed network this telecom platform. The operational the wholesale industry. Atlantic ACM Rostelecom has finalized a new combination of Impact Telecom and – a telecom research consultancy and wholesale contract with mobile TNCI represents a significant milestone marketing company which carries out operator VimpelCom (Beeline Russia) in our progress. Both companies annual evaluations of international worth RUB4.37 billion (USD64 million) are facilitating a smooth integration wholesale service providers – selected which grants the latter access to and we look forward to benefits of Orange International Carriers for Rostelecom’s duct infrastructure, the merger for our customer base.” this prize after analysis of more towers and buildings for installation Wholesale customers will benefit from than 1,400 customer evaluations of of mobile network equipment, reports the expansion and augmentation of wholesale providers. In winning the Telecompaper citing Vedomosti. Impact’s state-of-the-art IP-based award, Orange International Carriers The contract – valid until the end of network connected to a nationwide continues to be proud of its quality 2019 – will replace several existing Feature Group D (FGD), with the both in its services and through its infrastructure leasing agreements addition of 1,215 rate centers in the support for customers. between Beeline and Rostelecom. In Western States footprint. The new other company news, Rostelecom’s Impact Telecom will better serve its North-West division has begun selling customers and offer new services with Sri Lanka enforces Power Line Communications (PLC) enhanced capabilities positioning the adapters for connecting to the telco’s company as a leader in the wholesale common on-net, off-net ‘Interactive TV’ IPTV set-top box service voice and messaging industry. Uniting retail floor call rates directly through the user’s electrical two telecommunications leaders, the socket outlet, in areas including St merger enables Impact Telecom to From 1 February 2016 Sri Lanka will Petersburg, Telecom Daily reports. A better align with the growing cloud- enforce a common minimum retail

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based services industry and to offer line rental will decline by 3.1 percent a variety of innovative and leading- to GBP 86.72 a year. The Metallic Path edge technologies that help improve Facility (MPF) price will be GBP 87.65 a communication methods for businesses year, essentially unchanged compared and their customers while reducing to GBP 87.48 at present. ISDN2 and costs. To support sales growth, Impact ISDN30 prices will not change. Telecom will continue its commitment to partners. Impact will now offer a comprehensive product portfolio, 3 Hong Kong, NTT including its new ImpactConnect unified communications platform with DOCOMO complete specialization in cloud-based voice, international VoLTE SMS, toll free, collaboration and long distance services. Impact’s feature-rich roaming trial Hosted PBX service includes a high- Hutchison Telecommunications quality office phone and mobile app Hong Kong Holdings mobile arm for Apple and Android smartphones 3 Hong Kong has announced the and tablets. The transaction received successful completion of a bilateral approvals of the FCC and applicable international VoLTE roaming trial with state regulatory authorities. Financial NTT DOCOMO of Japan. In a press terms of the transaction were not release, 3 Hong Kong confirmed that disclosed. The Bank Street Group LLC the trial involved S8 Home Routed served as exclusive financial advisor (S8HR) architecture, an LTE data to Impact in connection with this roaming-based technology that can transaction. be deployed without IP Multimedia Subsystem (IMS) interaction between parties. The cellco confirmed that BT Openreach publishes the S8HR platform ‘enables VoLTE roaming service to be made available new wholesale prices in fast-track fashion’ to deliver superior BT Openreach has published new HD voice and video roaming on a prices for local loop unbundling and suitably enabled device. With the trial wholesale line rental (WLR) which completed, the pair now aim to deliver come into effect on 1 April. The price commercial VoLTE roaming in Hong changes were being made to comply Kong and Japan. with year 3 of Ofcom’s fixed access market review charge control. The price of almost all services will come down, with the notable exception of WLR line transfer, which will rise to GBP 8.43 from GBP 6.28. WLR basic

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Technology NEWS

2016 Technology Trends: Service gets smarter “Data” and “connectivity’ have long Which way is the wind been buzzwords in tech and this is set blowing? to become further embedded in the world of customer service. From real- Talk of market disruption is generally time queue monitoring informing smarter characterized in terms of David toppling staff allocation, to increasing connectivity Goliath: agility and flight of foot trump between cards and mobile devices, sheer heft. While the analogy has some alerting you to targeted offers based on appeal it misses the point that these previous purchases, data and connectivity ‘disruptors’ are probably winning because will inform smarter service. This is being they are closer to what consumers driven by consumer demand for speed today really want. Larger organizations, and efficiency when interacting with by contrast, have to contend with Technology organizations. organizational structures that don’t Updates automatically foster responsiveness. Brands in telecoms, utilities, financial Even more channels to contend with services and beyond in 2016 have got to Consumer devices will become more evolve both a keener sense of hearing, connected than ever before. The demand and the ability to respond to the clues on businesses will be to support this with they pick up. What does this look like what Gartner are calling, a new “continuous in practice? Trendwatchers Global have and ambient user experience”. That is to coined the term Revelation Brands to say, providing a consumer experience describe the new dynamic between that is not just available across multiple brands and consumers – the “revelation” channels and devices, but that moves being afforded through open-ended, seamlessly between them. This requires unmanaged dialogue, rather than intelligent use of customer data and, with targeted, highly optimized interactions. almost half of consumers being suspicious Smaller, younger organizations are of how their data is used by companies, better positioned to become revelation the challenge here will be to temper brands, but there are ways that larger these concerns through engagement organizations can play the disrupters at and transparency on how this personal their own game. Here are six of them. information is collected and used. From smartphones to smart watches, from apps to ApplePay, consumers will increasingly

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require support for new digital can get a sense of which direction the Of particular interest is merging innovations as they continue to come wind is blowing. a relatively new communication thick and fast in 2016. Businesses need platform, software-defined radio, to be able to handle any issues or with underwater acoustic modems. unexpected side effects of these new Living in the ‘90s? So Traditional radios, such as an AM/ devices or apps as efficiently as any FM transmitter, operate in a limited other customer enquiry. To support are Underwater Wireless bandwidth (in this case, AM and FM). this we expect to see the growth Networks The only way to pick up additional of ever smarter virtual assistants, signals, such as sound waves, is to Like Beanie Babies and Steve Urkel, joining the ranks of Siri, Cortana and take the radio apart and rewire it. the systems we use to transmit Facebook’s M. It’s all about smarter Software-defined radio makes this information through water bring to engagement. step unnecessary. Instead, the radio mind the 1990s. The flashback is due is capable via computer of shifting to the speed of today’s underwater between different frequencies of the communication networks, which is Slow death of the password electromagnetic spectrum. It is, in comparable to the sluggish dial- We can already see this in motion but other words, a “smart” radio. Applying up modems from America Online’s the plethora of, and sharp rise in, fraud software-defined radio to acoustic heyday. The shortcoming hampers is resulting in a surge in improving modems could vastly improve search-and-rescue operations, security. But there is a fine balance to be underwater data transmission rates. tsunami detection and other work. struck between strengthening security For example, in experiments last fall But that is changing due in part while at the same time enhancing the in Lake Erie, just south of Buffalo, to University at Buffalo engineers user experience – additional layers of New York, graduate students from who are developing hardware and security seldom lead to the speed and UB proved that software-defined software tools to help underwater efficiency consumers crave. Across acoustic modems could boost data telecommunication catch up to its devices, industries and organizations, transmission rates by 10 times what over-the-air counterpart. Their work, progress is being made in harnessing today’s commercial underwater including ongoing collaborations with the power of voice biometrics and modems are capable of. authentication and 2016 will see this Northeastern University, is described become increasingly mainstream. in a study - Software-Defined Underwater Acoustic Networks: Toward a High-Rate Real-Time Ericsson, Telia Sonera Don’t alienate different generations Reconfigurable Modem - published accelerate 5G race with The rise of digital is often associated in November in IEEE Communications with younger generations and as GenZ Magazine. “The remarkable innovation planned 2018 launch (born late 1990s onwards) comes and growth we’ve witnessed in land- Stockholm-based TeliaSonera and of age in 2016-2020, with a truly based wireless communications Ericsson (NASDAQ: ERIC) are making habitual affinity with digital concepts, has not yet occurred in underwater no secret of their 5G ambitions, peer-to-peer engagement and online sensing networks, but we’re starting announcing that they aim to offer some communities. Brands need to ensure to change that,” says Dimitris Pados, version of 5G services to TeliaSonera that they build key advocates in this PhD, Clifford C. Furnas Professor of customers in Stockholm and Estonia’s space. However, with spending power Electrical Engineering in the School Tallinn as early as 2018. That would put still set to be largely owned by the of Engineering and Applied Sciences them very near if not at the top of the established older generations, a at UB, a co-author of the study. The list of operators aiming for a speedy single minded focus on GenZ could amount of data that can be reliably ascent to 5G. Last week, Verizon (NYSE: potentially alienate a core customer transmitted underwater is much lower VZ) CFO Fran Shammo said during the base that may be older – so a careful compared to land-based wireless company’s quarterly conference call balance needs to be struck. networks. This is because land-based that the carrier is moving aggressively networks rely on radio waves, which to deploy 5G technologies and will work well in the air, but not so much be the first company to roll out The oracle of reviews underwater. As a result, sound waves 5G in the United States. Ericsson is Organizations everywhere are realizing (such as the noises dolphins and among the vendors working with that nobody is better at engaging whales make) are the best alternative and supporting customers than other for underwater communication. customers. Businesses need to ensure The trouble is that sound waves that happy customers contribute their encounter such obstacles as path positive feedback, helping to generate loss, delay and Doppler which limit further business. To achieve this, their ability to transmit. Underwater they need to provide quick and easy communication is also hindered by means to do so. Removing barriers the architecture of these systems, and reducing effort is crucial here. which lack standardization, are often And so ends our glimpse into what we proprietary and not energy-efficient. can expect in 2016 from a customer Pados and a team of researchers at UB service perspective. One thing we are developing hardware and software can be certain of is that digitalization -everything from modems that work Verizon to launch field trials this year. will continue to influence and change underwater to open-architecture TeliaSonera, which has operations in how businesses operate. Though we protocols - to address these issues. more than a dozen countries, plans cannot be sure of the specifics, we

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SAMENA TRENDS _ JAN 2016 SAMENA TRENDS _ JAN 2016 to develop 5G use cases and service IoT could have a communications over mobile cellular scenarios with Ericsson, including networks as the fastest-growing both communication and Internet revolutionary effect in ICT service in terms of traffic and of Things (IoT) services with the developing world, says estimates that over one billion purpose of addressing new business wireless IoT devices were shipped in opportunities. “Our ambition is ITU 2015, up 60 per cent from 2014 to to be at the cutting edge - at all A report from ITU and Cisco said the reach a predicted installed base of times - offering our customers and Internet of Things (IoT) can “improve 2.8 billion. Earlier this week, Sigfox society at large all the possibilities the lives of millions and dramatically launched the Sigfox Foundation, that technology brings,” TeliaSonera accelerate progress towards the UN’s which aims to bring the benefits of the President and CEO Johan Dennelind sustainable development goals” IoT to “nonprofit, humanitarian causes said in a press release. “Stockholm and such as those around healthcare and around the world”. Tallinn are two of the most connected education. Launched at the Pacific cities in the world and now we’ll Telecommunications Council annual take them to the next level. 5G will meeting in Hawaii, the report, titled M1, Huawei demo create completely new innovations, ‘Harnessing the Internet of Things ecosystems and great services to for global development,’ notes 1Gbps download speeds our customers. 5G will also take that there are three “prime drivers connected things (IoT) to a new level. that, if supported, could create an in ‘innovative’ LTE-A test I can’t wait to see how Stockholm and ‘IoT revolution’ in the developing The Singaporean mobile operator M1, Tallinn will embrace 5G.” Potential 5G world”. Firstly, IoT devices are working in partnership with China’s applications could include e-health already common, cheap and easy Huawei Technologies, has successfully with real-time surveillance of patients replaceable in developing markets. demonstrated download speeds in and remote treatment; connected Basic infrastructure to support IoT, excess of 1Gbps and peak uploads cars, including critical communication such as Wi-Fi and internet cafes, is of over 130Mbps in a LTE-Advanced between vehicles (warnings, support already in place, with near-ubiquitous (LTE-A) laboratory test. Huawei to self-driving cars and more), as well notes that LTE Cat 9 devices – the as better network performance in most advanced 4G devices terms of capacity, coverage and power available commercially at consumptionm, the companies say. the moment – support Indeed, at Ericsson’s forum held in download speeds of up Stockholm in 2014, Volvo said it was to 450Mbps and upload planning to unleash 100 autonomous speeds of up to 50Mbps; cars on the streets of Gothenburg, the latest trial was carried Sweden, in 2017. Volvo plans to use out on a prototype Cat 14 sensors as well as the city’s wireless device, Xinhua news agency network infrastructure to provide the reports. The pair reported underlying connectivity, as well as take that the trial involved the advantage of Ericsson’s Connected integration of no fewer Vehicle Cloud system. TeliaSonera’s than four advanced mobile ambitions come as operators in South carrier technologies: tri- Korea and Japan eye early roads to 5G. basic mobile connectivity. According band carrier aggregation (3C), Korean mobile operator KT is aiming to ITU’s latest figures, there is 95 multiple-input multiple-output (4×4 to launch a live service for the 2018 per cent global 2G coverage, and MIMO), higher order modulation 256 Winter Olympic Games being hosted growing levels of 3G coverage. What’s (Quadrature Amplitude Modulation, in Pyeongchang, while Japan’s NTT more, IoT devices are being used or QAM) and dual-band uplink carrier DoCoMo is gearing up to showcase in rugged, remote and inhospitable aggregation (CA). M1 Chief Technical 5G at the 2020 Tokyo Olympics. environments and many can withstand Officer Denis Seek commented: Verizon has not revealed exactly what extreme conditions. Secondly, IoT ‘Through technology innovation, we it intends to offer consumers via R&D costs are absorbed by strong can further stretch the capability of 5G, but Shammo suggested that it’s demand in developed world markets, current 4G technology, prior to the not just about mobility – other use and there is little cost associated with advent of 5G technology, to achieve cases may emerge, and CEO Lowell tweaking them for the developing an incredible peak download speed McAdam has said 5G is much more world. Lastly, IoT devices offer simple of more than 1Gbps,’ while Huawei’s designed for video and more point-to- ‘plug & play’ functionality that doesn’t President of LTE Networks, Wang point solutions, as well as the ability require special skills, while power Jun, noted: ‘The successful trial marks to deliver up to 1 gigabit data speeds. supplies such as solar can maintain the beginning of the 4.5G era in Rival AT&T (NYSE: T), which has sensors and networks where there is Singapore, demonstrating Huawei and taken a decidedly quieter tact to 5G, no consistent electricity supply. The M1’s continual innovation in delivering historically has been more vocal about study recommends that governments the benefits of the latest mobile moving to next-gen technologies like and businesses support tech start- technology advances to Singapore SDN and NFV, as well as establishing ups, ICT incubators and local data consumers, for instance, in enabling a leadership position in the Internet centers, and work to develop policies machine-to-machine connections and of Things (IoT), but executives have and regulatory frameworks that will improving HD video experience.’ said they prefer to talk about 5G in the create “an enabling environment context of standards, which have yet for IoT deployment”. ITU sees M2M to be written.

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ITU-IT meets to plan director of the ITU-IT. “Singapore’s tests and demonstrate typical 5G participation in ITU work is an services. Cao said the first step is to global IoT standards invaluable asset to our development build a unified 5G public test platform Technical experts are meeting in of international standards for Smart to carry out performance tests of key Singapore this week to discuss the Sustainable Cities. I applaud Singapore technologies, technical solutions and development of the global standards for its work to share the blueprints of systems. The Promotion Group will for the Internet of Things (IoT) and its its smart city advances with other ITU conduct 5G technology R&D tests applications, including smart cities. member states.” at facilities in Beijing’s Huairou and The International Telecommunication Shunyi districts. The second step is Union Standardization Sector (ITU-IT) to set unified test requirements and Study Group 20 meeting will gather China outlines 5G R&D the third is to establish a unified 150 participants from 14 ITU member specification group and test group, states and 36 organizations. The first roadmap which will be formed inside the IMT- such meeting was held in Geneva, China’s Ministry of Industry and 2020 Promotion Group and take Switzerland, last year. Currently, there Information Technology (MIIT) held its charge of the formulation of test is no universal set of IoT standards ‘5G technology R&D testing’ launch specifications and field tests. At the to govern the increasing proliferation meeting, with head of the IMT-2020 signing ceremony of China-Europe 5G of interconnected and interoperable (5G) Promotion Group Cao Shumin Collaboration Joint Statement back devices. Most countries are working introducing the overall plan for 5G in September, Ma Kai, China’s vice on developing their own IoT standards testing in China. The country’s 5G premier, noted that China will strive to to meet their requirements. Singapore technology R&D tests will be carried launch 5G networks in 2020, C114.net aims to be a forerunner in the out by the IMT-2020 (5G) Promotion reported. Despite numerous 5G claims development of interoperable IoT Group under the leadership of the by operators and vendors around standards – which can be adopted not MIIT, with support from the National the world, it remains uncertain as to just by industry in Singapore to build Science and Technology Major Project, what will eventually comprise a set of our Smart Nation applications, but are C114.net reported. The main goals 5G standards. An official 5G standard also recognized and used universally. are to support the formulation of 5G is unlikely to be ratified until at least IoT is a critical cornerstone of many of international standards and boost 2017. Singapore’s Smart Nation initiatives 5G R&D and industry development. such as Smart Homes, Smart Urban Cao, who is also president of the Habitat, Autonomous Vehicles, and China Academy of Information and EC urges mobile industry even Digital Healthcare wearables. A Communications Technology (CAICT), Cisco white paper forecast that there said the 5G tests will be divided into to hurry up on 5G will be 50 billion devices connected to two major stages, namely technology Gunther Oettinger, the European the internet by 20201. More recently, R&D tests from 2015 to 2018 and commissioner for the digital economy, industry research firm Gartner product R&D tests from 2018 to 2020. called CEOs from Europe’s leading predicted that IoT will support total The technology tests are organized operators and vendors to a meeting services spending of $235 billion by CAICT and jointly supported by today about progress on 5G. Oettinger worldwide in 2016, up 22% from 20152. operators, equipment vendors and wrote to the CEOs of Europe’s ten IoT is a critical cornerstone of many of scientific research institutions, while leading telecoms firms to say “Europe Singapore’s Smart Nation initiatives the product tests are organized by must be a leader in this area”, according such as Smart Homes, Smart Urban China’s operators, with support from to the Financial Times. The letter adds Habitat, Autonomous Vehicles, and equipment vendors and research that the EC chief wants to create even Digital Healthcare wearables. The institutions. “closer EU co-ordination to achieve ITU-T SG20 meeting is collaboration a timely deployment of 5G” and to between IDA and the ITU, following develop a “home market” in Europe Technology tests the signing of a joint MOU in October for 5G-based products and services. The technology R&D, which is the 2015. As a signatory, Singapore is one Oettinger tweeted on 8 January current focus Cao said, will be of 10 cities that will pilot a set of key broken into three phases. The performance indicators leading to the key technology verification eventual development of a “Global phase (September 2015 to Smart Sustainable Cities Index”. This September 2016) will focus index will allow ITU to benchmark on performance tests of and rank cities’ performance in single-point technology terms of their level of “smartness”. prototypes. The technical “A smart city ‘system of systems’ will solution verification phase be characterized by openness and (June 2016 to September interoperability, built on coordinated 2017) will merge multiple adherence to common standards. technologies and carry Harmonized implementation of out single base station standards will help to prevent the performance tests. The emergence of industry-specific system verification phase technology ‘silos’, thus ensuring that (June 2017 to October 2018) all industries can benefit from the will complete networking information drawn from data-driven technology performance IoT systems,” said Chaesub Lee,

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SAMENA TRENDS _ JAN 2016 SAMENA TRENDS _ JAN 2016 about “several important meetings is used efficiently. And important Qualcomm and Industry next week about 5G, Industry40 consideration is that many public and broadband”. The 5G meeting is applications do not use all of an Leaders Plan to Introduce scheduled in his diary for January 12. allocation, are focused regionally, or end-to-end 11ad multi- Among others, letters were sent to do not have consistent usage levels the CEOs of BT, Deutsche Telekom, – meaning there is an opportunity to band capabilities Telecom Italia, Orange, Vodafone, support other uses. Qualcomm Incorporated today Nokia and Ericsson. The European announced that its subsidiary, Commission has announced various Qualcomm Atheros, Inc., reached initiatives designed to encourage 5G The IoT future is a major milestone by enabling a deployment and is reported to be cognitive: IBM CEO number of new multi-band Wi-Fi worried about how economic rivals products (featuring 802.11ad in the such as China, Japan and South Korea Collecting data through connected 60 GHz band and 2.4/5 GHz 802.11ac have given the technology a priority. devices isn’t enough, and IBM wants with MU-MIMO) across networking, For instance, China’s Ministry of to infuse cognition into the Internet of mobile and computing segments. Industry and Information Technology Things, declared CEO Ginni Rometty, as These products are expected to lead (MIIT) this week announced a she spoke about the partnerships IBM the way for a robust ecosystem and roadmap for testing 5G. However, has made to achieve this. According underscore the importance of the the development of 5G is not just greater capacity and a matter of competition between speed that 802.11ad countries and economic blocs, it’s also brings to the evolution about collaboration. The EC signed an of Wi-Fi. Several agreement in September with China companies plan to to make “5G a reality by 2020” and has release products in similar agreements with South Korea the coming year that and Japan. utilize the end-to-end solutions for 802.11ad products including: French shared spectrum • Smartphones from pilot kicks off Letv A number of vendors are working to Rometty, cognitive IoT needs a • Access points from on a shared spectrum trial, exploring new platform, finding new forms of Elecom, NEC and TP-Link a technology which could “release data (not just more data) such as • Notebooks from Acer and Asus enough spectrum to enable innovative weather and videos and creating the • Adapters from SiBEAM, Inc., a 5G services for all EU citizens”. But no right ecosystem. As part of this, IBM Lattice Semiconductor company, operators have so far been named as has upgraded Watson, a cognitive and Peraso Technologies, Inc. participants. The work uses frequencies technology that processes information owned by the French Ministry of “more like a human than a computer”, “With the rising demand for more Defense in the 2.3GHz-2.4GHz band. and put it into products like a dinosaur wireless capacity and speeds in the If successful, this “should lead to the toy that interacts with children and home and workplace, further evolving release of large amounts of licensed adapts its personality to theirs, and Wi-Fi continues to be a top priority spectrum in France over the next 24 partnered with Airbus to collect half for the industry and for us,” said Rahul months”. Participating in the work a billion bytes of data for every flight. Patel, senior vice president and general are French start-up Red Technologies, This information will then be used to manager, connectivity, Qualcomm which is providing a dynamic spectrum predict wear and tear of plane parts Technologies, Inc. “Qualcomm Atheros management platform; Ericsson, and even create a cognitive pilot. She was the first to commercialize 802.11ac which is providing radio networks highlighted the fact that thanks to wave 2 with MU-MIMO, providing up with carrier aggregation capabilities; Watson’s help, Mediatronics is able to 3x greater performance. We are and Qualcomm, which is supplying to predict a hypoglycemic incident in once again leading the industry by devices. “Spectrum availability is a core diabetes patients up to three hours bringing multi-gigabit, high capacity condition for flourishing technology before it happens. The app that connectivity with our 802.11ad multi- adoption and innovation. This can achieve this will roll out in the band technology.” By utilizing a Licensed Shared Access (LSA) pilot summer. SoftBank’s Kenichi Yoshita portfolio of platforms, including the is therefore a vital step towards the said the company’s robot Pepper Qualcomm Technologies’ Qualcomm® realisation of Europe’s Digital Single now operates in bank branches as Snapdragon™ 820 and Qualcomm Market,” said Wassim Chourbaji, VP part of the customer service staff and Atheros’ Qualcomm® Internet of government affairs at Qualcomm in Nestle’s coffee shops as a coffee Processor (IPQ) 8064 reference designs Communications. Many governments maker salesman. “IBM is reinveinting combined with its QCA9500 802.11ad worldwide are looking at spectrum itself as a cognitive solutions and chipset, Qualcomm is providing easy allocations held by public bodies such cloud platform provider,” Rometty to use solutions for the industry. As a as the military, against a backdrop concluded. result, customers can easily design the of growing demand from the mobile most advanced wireless connectivity industry. While in some cases this is features into a variety of products. leading to parts of allocations being By offering up to 4.6 Gbps PHY and handed back, sharing provides an bringing bandwidth rich 60GHz alternative way to ensure the resource spectrum to Wi-Fi’s fold, 802.11ad is

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one of the tools that can address the through its multi-gigabit speeds small business market at a fraction burgeoning data demand in homes, and significant increase in capacity, of the cost of fiber to the premises. enterprises and carrier networks. can revolutionize enterprise Wi- “Most DSL and cable broadband Some of the 11ad use cases include Fi connectivity,” said Mr. Mamoru technologies are unable to provide a lag-free docking and screen mirroring, Nagatani, vice president, platforms, higher ratio of upload to download 4k streaming to multiple devices, near NEC. “Integrating advanced 802.11ad speeds, making it very challenging instant access to multimedia and fast multi-band Wi-Fi technology into our to deliver next generation consumer upload and downloads. “Letv has access points is a testament to our services,” said David Baum, CEO of already established itself as one of technology leadership as well as our Sckipio Technologies. “Since user- the world’s top innovators and our close relationship with Qualcomm generated content has increasingly decision to include the Qualcomm Atheros.” “802.11ad and 60 GHz become important, having fast upload Snapdragon 820, Snapdragon Sense enable a new class of applications and is critical and this is a big advantage ID and the first to roll out 802.11ad services, while also augmenting the of G.fast.” The solution is the world’s into these new devices demonstrates capacity of existing Wi-Fi networks,” fastest implementation of G.fast and it our commitment to creating and said Koji Kajiura, managing director, helps telcos compete very effectively delivering the best technology Elecom. “In continuing our track against cable operators using DOCSIS available to our customers,” said Jun record of delivering cutting-edge 3.1. Liang, chief operating officer, Letv. wireless networking technologies, “With the rollout of Letv products thanks to Qualcomm Atheros, we globally, users will experience multi- are proud to once again be offering Qualcomm partners gigabit wireless performance for high-performance, next-generation video streaming and sync-and-go 802.11ad multi-band technology to with Audi for new Wi-Fi applications wherever they go.” our customers.” Technologies “Through our continued collaboration Qualcomm unleashed a bunch of with Qualcomm Atheros, TP-LINK news at CES, the big consumer tech is thrilled to introduce the Talon Ultrafast Broadband show in Las Vegas. But the most AD7200, the industry’s first wireless significant bit was related to the 11ad multi-band router launching Gaining Traction at CES future of cellular networks for the in early 2016,” said Andy Chen, vice 2016 Internet of things and two new Wi-Fi president, networking business unit, Sckipio Technologies, the leader technologies that consumers might TP-LINK International. “Now users can in G.fast, today announced it’s benefit from. It also shared new share thousands of photos, full-length demonstrating over 750Mbps of partnerships with Audi, a Chinese HD movies, and entire music libraries ultrafast broadband upload speeds on smartphone maker and a Tencent, between devices in seconds. They can existing twisted pair copper telephone which is making a drone using the chip also game online wirelessly at speeds wires -- over 100 times faster than firm’s technology. In general, the cell faster than wired Gigabit Ethernet most consumers achieve today. This phone product announcements were connections, and stream in 4K HD on breakthrough performance multiple devices at the same time. The will allow telcos worldwide Talon AD7200 brings a whole new level to dramatically improve of wireless connectivity to the home.” consumer experience with “Acer’s continued collaboration with the many new consumer Qualcomm Atheros demonstrates services and devices being our mutual commitment to delivering announced at CES. In industry-leading connectivity October of 2015, Sckipio technology,” said Jerry Kao, president previously demonstrated of notebook business group, Acer, overall download and Inc. “After launching the world’s first upload speeds of over notebooks with 802.11ac MU-MIMO 1.5Gbps by bonding two phone lines meager with Chinese TV manufacturer last year, we are excited to introduce the together -- a highly attractive solution LeTV announcing that its Le Max industry’s first commercial notebook for operators in North America and Pro would be the first smartphone with multi-band 802.11ad networking Taiwan. At upload speeds, it’d take the that would use Qualcomm’s flagship technology with our TravelMate P648 average broadband subscriber over Snapdragon 820 chip. Qualcomm series, which unlocks a whole new five hours to upload a thirty-second QCOM -5.14% might be excited, but spectrum of use cases for professional full-resolution, GoPro 4K video to the lack of a major smartphone maker users.” “Gaming tests the performance YouTube -- the same amount of time it such as Samsung using the silicon limits of laptops, and Asus excels in would take to fly from Los Angeles to means that Qualcomm turned up to bringing the best gaming experience New York City. With the G.fast solution the tech industry’s big party with a to our customers,” said S. Y. Shian, from Sckipio, consumers could upload D-list celebrity on its arm. The other corporate vice president, Asus, “End- the same video in 2.5 minutes -- less news was much better. Qualcomm to-end 802.11ad multi-band solutions time than it would take to brew a cup announced that Audi was using from Qualcomm Atheros allow us to of coffee. The ITU standard-compliant its automotive chip that combines deliver the best connectivity to gamers, G.fast technology utilizes copper radio connectivity, intelligence, and with exceptional speed, lower latency, wires. The Sckipio solution is perfect a variety of machine learning inside and outstanding performance.” “Wi-Fi for Internet Service Providers trying its infotainment and advanced driver has become the lifeline of enterprise to bring fiber-like broadband speeds assistance system platform. ADAS and carrier networks today. 802.11ad, into apartment buildings and the platforms, as they are called, use

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SAMENA TRENDS _ JAN 2016 SAMENA TRENDS _ JAN 2016 cameras, sensors technology, and data of Wi-Fi Alliance. Additional IoT- home networks, making it relatively networks to automate and enhance related activities are underway in Wi- easy to upgrade to a gigabit. Another safety features in the car, including Fi Alliance that are helping to further thing that helped put all 50 states on adaptive cruise control, automated proliferate Wi-Fi in the Smart Home the gigabit map was that tier one or braking, blind spot warnings and and other segments. In particular, tier two telco and cable operators that keeping the driver in the correct Wi-Fi Alliance is developing a new had not previously announced gigabit lane. Qualcomm is also announcing a secure and simple way to connect plans decided to get in on the trend. new chip for the auto industry called and configure devices without a On the cable side, Comcast in 2015 Snapdragon 820 Automotive that is display or input mechanisms, as is the launched an FTTH-based 2 gigabit built on a similar platform as its smart case with many Smart Home devices service dubbed Gigabit Pro in several phone 820 platform. But it adds a today. In addition to an expanding states – albeit in limited parts of each few vehicular modifications such as list of programs to address unique market. Smaller cablecos such as Cable the vehicle to vehicle communication market needs, Wi-Fi Alliance recently One, Suddenlink, Mediacom and Troy network capabilities and some announced a new membership Cable also made gigabit plans. And artificial intelligence needed for category that will enable a wider we’re likely to see a lot more from the the ADAS platform. Combining the variety of devices not historically cable companies in 2016 as they begin platforms helps cut down on R&D thought of as high-tech, including to deploy DOCSIS 3.1, which supports and makes manufacturing a bit vacuums and door knobs, to include gigabit speeds. easier. It also introduced a modular certified Wi-Fi connectivity. system for cars, and Ricky Hudi, executive vice president for electronic Telco Deployment Plans development at Audi AG, explained 50 Gigabit States On the telco side, Windstream, Consolidated and Fairpoint that he anticipated swapping out It’s been almost three years since announced gigabit plans in 2015, the radios and brains that make the former FCC Chairman Julius joining brethren tier one and two car smart every three years. That’s a Genachowski set a goal of having at telcos AT&T, CenturyLink, Frontier number worth noting for financial least one gigabit network in every and TDS — all of whom made gigabit analysts trying to figure out how the state by 2015. The year is now over announcements in 2014 or earlier and connected car might drive the refresh and by Telecompetitor’s tally, we have continued to expand gigabit cycles at chip firms. Qualcomm also didn’t quite make it – but we’re close. service. Of the major tier one and announced a modular automotive We combed through our archives and tier two telcos, only Verizon has not box that can be easily swapped out other online resources and, by our announced gigabit plans. Unlike at the dealer when a consumer finds tally, at least one network operator most of the other major incumbents, their maps loading too slow or their has announced plans to offer gigabit Verizon deployed fiber-to-the-home connected car software bogging down service in every state. Not all of these (FTTH) in many major metro areas on older application processors. networks are actually deployed or within its service territory in years supporting service yet. But generally past. In those FiOS markets Verizon network operators don’t announce could upgrade to gigabit relatively Wi-Fi Alliance specific markets more than a year or easily, but for now the company hasn’t two in advance of when they expect Introduces Low Power, felt the need to offer speeds greater to deliver service. If, for example, than a few hundred megabits per Long Range Wi-Fi a network operator simply said it second. That could change in 2016, would eventually upgrade its entire HaLow though. As the cable companies make footprint beginning in 2016, as Cox their DOCSIS 3.1 plans, they’re likely to With industry momentum mounting Communications did, we didn’t count make FiOS markets one of their initial around a low power Wi Fi solution, the company’s entire footprint, only focus areas, which likely will generate Wi Fi Alliance has announced the states it provided more details on. a competitive response on Verizon’s the Wi Fi HaLow designation for We also didn’t count a deployment part. The upshot: We’re probably products incorporating IEEE 802.11ah unless plans included residential no more than a year or two away technology. Wi-Fi HaLow extends Wi- users. Clearly Genachowski wasn’t from meeting Genachowski’s goal Fi into the 900MHz band, enabling talking about gigabit Ethernet service of having a gigabit network in every a wireless range is nearly twice that to commercial buildings when he set state. Within that time it’s also quite of today’s Wi-Fi, and will not only the gigabit goal. be capable of transmitting signals likely that we’ll see gigabit service in further, but also providing a more all major metro markets – the markets robust connection in challenging Gigabit States that some people in telecom refer to environments where the ability to Even heavily rural states – states such as the “NFL cities.” more easily penetrate walls or other as Wyoming, West Virginia, or Maine barriers is an important consideration. – made the list, thanks to a wide “Wi-Fi HaLow is well suited to meet range of small locally-focused telcos, Ericsson, Telstra and the unique needs of the Smart Home, utilities, municipal network operators, Qualcomm partner Smart City, and industrial markets and others. Even though deployment because of its ability to operate using costs tend to be higher in rural areas, on 4×4 MIMO very low power, penetrate through entities with a local focus often demonstration walls, and operate at significantly manage to find a way to make gigabit longer ranges than Wi-Fi today,” said happen – and in the telco arena, many Ericsson, Telstra and Qualcomm Edgar Figueroa, President and CEO companies already had fiber-to-the- Technologies have jointly carried out

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a live demonstration of 4×4 MIMO auction, a high-profile event that However, smartphones supporting technology, supporting peak downlink attracted global interest after the this deployment are unlikely to be data speeds of up to 380 Mbps, in country’s president earlier claimed available before mid-2017. what they have termed ‘a foundational Turkey could skip LTE technology and step towards download speeds of instead jump to 5G in just two years At present Turkcell claims its customers 1Gbps in the commercial network’. The time (in the end, President Tayyip can receive peak 3G speeds of up to technology milestone was delivered Erdogan managed to save face after 63.3Mb/s “on supporting devices,” by Ericsson Networks Software 16B for regulator BTK promoted the tender meaning users will (in theory) see their LTE and the Qualcomm Snapdragon as a ‘4.5G’ auction). 4.5G has been mobile broadband speed experience X12 LTE modem, which supports 4×4 heavily promoted by Huawei and the increase by a factor of 19 in less than Spatial Multiplexing combined with Chinese vendor last week provided two years. 256 Quadrature Amplitude Modulation the infrastructure for an outdoor (QAM), and was tested over Telstra’s “real-life” pilot from TeliaSonera commercial infrastructure. 4×4 MIMO that claimed to have reached “world with 256 QAM is, the Swedish vendor record” download speeds of up Easier Access to noted in a press release, expected to 1Gb/s in Oslo. It follows other Spectrum for Internet of to be supported on smartphones in Huawei 4.5G trials at China Mobile 2016, with the technology said to and Japan’s SoftBank. And last month Things be an ideal solution to boost indoor Hong Kong’s HKT demoed four-band Australian operators of machine and outdoor app coverage for faster carrier aggregation from the vendor to machine (M2M) wireless access to content and applications. that achieved speeds of up to 1.2Gb/s. communications links used in the Commenting on the development, 4.5G technology has been claimed to Internet of Things (IoT) will find it easier Mike Wright, Telstra Group managing bridge the gap between 4G and 5G, to access spectrum under proposed director (networks), was cited as and standards body 3GPP officially changes to regulatory arrangements. saying: ‘We are constantly looking approved it in October, giving it the Many current generation M2M and to enhance our customers’ user moniker LTE Advanced Pro. Huawei IoT devices access spectrum via the experience and 4×4 MIMO will claims 4.5G will reduce latency from Australian Communications and Media be an important addition to our the current level of about 40ms to Authority’s class licensing regime mobile network speeds and capacity. 10ms and provide theoretical peak (similar to a “spectrum commons”). We initially demonstrated 1Gbps speeds of around 1Gb/s. The proposed changes will remove capability in an end-to-end network a technical barrier to the operation on 5 November 2015. Now, this next of narrowband low powered wireless Five-band carrier aggregation step in device evolution, achieved by networks in the Radiocommunications Ericsson and Qualcomm, shows 4×4 Turkcell’s 1.2Gb/s speed trumps (Low Interference Potential Devices) MIMO with 256 QAM in combination. TeliaSonera’s effort. During the five- Class License 2015 in the 900 MHz, This brings us even closer to offering band carrier aggregation demo at 2.4 GHz band and 5.8 GHz bands. 1Gbps capabilities to our customers.’ the operator’s Istanbul headquarters, They support a variety applications Turkcell used 79.8 MHz of frequency such as data telemetry, machine data consisting of 29.8 MHz (20 + 9.8) in and monitoring, sensor networks, Turkcell cranks up the 1800 MHz band, 30 MHz (20+10) smart metering, security systems and in the 2100 MHz band, and 20 MHz in industrial control-all across a variety 4.5G speed and carrier 2600 MHz band – a configuration that of industries. “The changes should aggregation battle includes use of the spectrum Turkcell encourage innovations in the M2M had acquired in 1800, 2100 and 2600 and IoT spaces,” said ACMA Chairman, Operator Turkcell claims to have MHz bands in Turkey’s auction held Chris Chapman. “The proposals demoed mobile broadband speeds 26 August. “With the 4.5G auction, are a part of our work in looking at of up to 1.2Gb/s, upping the ante we had set the bar high in terms of Australia’s state of readiness for IoT in a 4.5G technology battle that offering the fastest mobile broadband and identifying areas where the ACMA once again features Chinese vendor internet. We had announced that we can further assist IoT developments.” Huawei. Turkey’s largest operator is would not only offer the country’s Other proposed changes to current fastest 4.5G upon roll-out on 1 April, regulatory arrangements include the but also go beyond that in order to addition of the new frequency bands match the current fiber experience on for radiodetermination transmitters mobile,” said Ilker Kuruoz, Turkcell’s used as industrial sensors; in-ground CTO. “With this speed demo, we are ultra-wide bandwidth transmitters not only pushing the limits of 4.5G used in automated parking but also taking a major step towards management systems; building 5G experience in terms of reaching material analysis devices used for speeds that exceed 1Gb/s.” Turkcell detection of objects in walls ceilings expects to support theoretical peak and floors; and to align for European download speeds of up to 375Mb/s arrangement for short range devices at its commercial 4.5G launch in April, in the frequency bands 122.25-123 aggregating three carrier bands. It GHz and 244-246 GHz. preparing the launch of so-called aims to push this up to beyond 1Gb/s 4.5G technology on 1 April 2016. In “towards the end of 2016” using August it paid €1.62 billion for 172.4 the five-band carrier aggregation MHz of spectrum in the country’s technology from the demo.

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Mobile money

The proliferation of mobile money will influence the development of different be imminent in most countries in the types of mobile money service layers. next four years. This will come in many Therefore, mobile operators and financial different forms and under many different institutions have to carefully consider product names. The end result will see their customers’ requirements in order different forms of money (other than cash) to build the right value proposition and become ubiquitous, and an integral part business model. Equally important is of almost every economical ecosystem. the role of telecommunications and FI Mobile Money, e-Money, Mobile Wallets regulators. There is a great need for them to name a few promise many benefits to build the right regulatory frameworks to a wide range of consumers and that are built on a collaborative model businesses. Mobile money will be one that aims to maximize the rates of financial part of an expanding umbrella that is inclusion for the unbanked. Furthermore, termed Mobile Financial Services or MFS. those frameworks must address the risks Other flavours of MFS include mobile of transactional fraud without affecting banking, mobile money transfer, and the customer experience and the cost mobile payments, P2P payments, G2P of the service. All stakeholders (telcos, payments, and even B2B payments. New commercial banks and regulators) must technological innovations, service layers, find common grounds for the service and strategic partnerships are changing to be successful and for all ecosystem the conventional banking sector and members to benefit. allowing an expansion in the number of stakeholders. Ernst & Young (2009) The ubiquity of mobile predicted that contactless and proximity telecommunications services will greatly payments will grow and consumers improve and transform the way people will enjoy a variety of services that are conduct their financial transactions, Mr. Ammar Hamadien managed by single platform. create new businesses, and ultimately Managing Director benefit the overall economy specially in Chinguitel (Subsidiary of Sudatel) I strongly believe that Mobile Financial developing countries. Services are greatly influenced by consumer needs and behaviour. This demand for financial inclusion will

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To better understand the impact of government taxes and be linked to the accelerating adoption rate of all mobile fees on the telecommunications industry, A.T. Kearney services in societies with large unbaked populations. The has conducted a study on the average price per minute below figure illustrates the essential role MNOs should play (APM) and the volume of taxes and fees incurred by mobile in Mobile Financial Services. operators across 30 European countries3. Across these economies, total tax burden usually accounted for around MNOs are currently in the best position to monetize the ¼ of the APM (from as low as 12% in Switzerland to as transactions from mobile money services as one of the high as 40% in Hungary) and for most European countries, Value Added Services (VAS) offerings. This is especially true telecom specific-taxes had a negligible effect on average as operators; especially in Africa increasingly embrace 3G price per minute and 4G technologies, which requires new data services to generate revenues. The study has found evidence that telecommunications development and tax burden are correlated (Figure 2) and The proposed ecosystem for mobile money in Sudan, and ultimately, economic development. In fact, 3G penetration many of the West African countries will be composed of: supports GDP growth across Western and Eastern Europe (1) Mobile Network Operators, (2) Distribution Network, (3) but when taxes increase, 3G penetration growth rate Mobile Money Users, (4) Retailers, (5) Commercial Banks. decrease, along with GDP. The role of each entity is summarized as follows:

Current state: 1. Mobile Network Operators: will host and operate the Mobile money as a technology has evolved over the past mobile money platforms that will enable the creation decade and now includes: of the technical functionalities. They will act as the sole • Person-to-Person funds transfer (P2P): users are owners of the relationships with the end users. They allowed to store virtual funds on a mobile wallet and will also provide technical and commercial support as transfer these funds to another user’s mobile wallet. well as enforce the mandated Anti-Money Laundering • Consumer-to-Business funds transfer (C2B): a user (AML) and Know-your-Customer parameters. can purchase goods and services from registered and 2. Distribution Channels: the various distribution agents qualified network of merchants and service providers, across Bahrain will fund and replenish the system with directly from their mobile wallets. virtual money by collecting cash (real money) from • Business-to-Business funds transfer (B2B): wholesale customers and crediting the amount to the customer’s businesses can sell goods and services to retailers and m-wallet. These distribution channels can be airtime receive their funds directly from the retailers’ mobile distributors, or commercial bank branches. wallet. 3. Mobile Money Users: customers will buy virtual money • Government-to-Consumer funds (G2C): governments from distributors by initiating a funds transfer from a can use mobile wallets as a medium to disburse social bank to their own virtual accounts. Customers should benefits and funds directly to the beneficiary mobile be provided with user-friendly application, preferably wallets a SIM Tool Kit (STK) to enable them to make account • On-network purchases: purchase of mobile network’s enquiries and other financial transactions in a safe and airtime using funds from their mobile wallets. secure manner. The stored value of virtual money will be used to conduct everyday transactions while remaining Proposed Operating Model: fully available for: As of the beginning of 2016, there are 263 live mobile a. Use within the system money services with more than 100 planned deployments b. Conversion into real cash in the near future (Source: GSMA). Most of the successful deployments so far have been lead by Mobile Network 4. Retailers: Operators should approach and enroll retailers Operators in developing economies. This success is can into the network to enable them to accept payments in the form on virtual money. They should be provided with Point-of-Sale terminals that are connected to the platform via a secure Internet connection. 5. Commercial Banks: they should bear the responsibility of the trust accounts that hold the equivalent of virtual money that will be circulating in the mobile money ecosystem. This will insure that customers’ funds are secured and protected. They will also work closely with the network operators to generate reconciliation reports and prevent fraud.

It is highly recommended that financial regulatory authorities start building their frameworks to facilitate the building of robust ecosystems that will allow MNOs and financial institutions actively participate in helping the unbanked (current average is 96% is developing economies such as Sudan) to have access to financial services, utility services providers and many potential members of an expanding ecosystem.

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SATELLITE NEWS

Successful launch for sophisticated satellite program reflects outstanding collaboration between Eutelsat 9B Eutelsat, ESA, Airbus Defense and Space, Leading satellite provider Eutelsat has ILS and Krunichev. We look forward to confirmed that its EUTELSAT 9B craft putting EUTELSAT 9B to work for the has reached a geosynchronous transfer benefit of our broadcaster clients and to orbit after lift off from the Baikonur the inauguration of the ground-breaking Cosmodrome. Bad weather had delayed European Data Relay System.” the original launch of the craft from an ILS Proton rocket. Separation of Eutelsat’s new satellite occurred after a Batelco’s teleport positions 9-hour 12-minute Proton flight. Partial deployment of the satellite’s solar panels, Bahrain on global map of which represents the first critical post- satellite operations Satellite launch operation, took place two hours Batelco, the region’s prime teleport later. Following further maneuvers and services provider, continues to provide Updates in-orbit tests, the five-tone Ku-band world-class teleport services to satellite EUTELSAT 9B will now occupy the 9° operators, with the company’s fully East neighborhood and is attributed equipped teleport placing Bahrain on with being able to increase Eutelsat the global map of satellite operations. capacity to 50 physical transponders. It As a testament to this, ABS, a global will address broadcast markets through satellite operator, has extended its one pan-European footprint delivering agreement for teleport services with coverage for four regional footprints Batelco. The agreement, signed in 2011, serving Germany, Greece, Italy and the saw the two companies forming a strong Nordics, with the Baltics and Ukraine. alliance, with ABS gaining a full suite of It will assume broadcasting of over 350 telecom services provided by Batelco at TV channels currently served at this its Teleport. Batelco’s teleport boasts a position by EUTELSAT 9A and provide 30,000 square meter operational area with expansion capacity for new services. partners gaining access to the telecom’s Commenting on the launch, Michel MPLS, SDH national, international de Rosen, Eutelsat chairman and CEO, networks and internet uplinks. The said: “Our congratulations to ILS and teleport presents an optimum choice Krunichev for a flawless launch that for satellite and VSAT operators around sees a new Eutelsat satellite propelled the globe as it can run any application on its way to geostationary orbit. This

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on any topology. The diverse and advanced digital payload. The payload world’s major commercial shipping resilient facility also features seamless can digitally redirect a satellite beam routes, mining areas, offshore oilrigs integration with terrestrial networks to areas of greater demand, and brings and fishing domains. These additional and provides full support for satellite improved security as well. Intelsat beams extend the network and and VSAT operators to streamline EpicNG is optimized to provide provide greater availability through their operations efficiently. Batelco satellite connectivity for applications overlapping coverage in key areas of encourages these operators to including the Internet of Things (IoT), these markets. diversify their service offerings, as enterprise, wireless infrastructure, the teleport allows them the ability aeronautical and maritime mobility, to offer more services to end-users. and government. The HTS platform AT&T to Bundle Satellite Through this, Batelco aims to facilitate is backwards compatible and the operators’ growth. Batelco Chief fully interoperable with Intelsat’s with More Services this Global Officer Adel Al-Daylami said, existing satellite fleet and terrestrial Year that “The extension of the partnership infrastructure. The platform’s open AT&T is planning to incorporate video is a testament to the strong relationship architecture allows between Batelco and ABS.” “This is a customers to have result of Batelco’s reliable connectivity control over service and bespoke solutions that fully offerings and hardware support ABS’ operations worldwide,” selection, providing added Mr. Al-Daylami. “We are differentiation of service extremely pleased to extend our offerings. Intelsat has partnership agreement with Batelco customers for Intelsat 29e, as we continue to build our operations including Harris CapRock, in the Middle East and Africa regions,” Panasonic, EMC, Axesat said ABS Chief Technology Officer and leading national Ken Betaharon. “The premises is one telecom operators in of the most impressive in the region Latin America. The second and provides a high level of security EpicNG satellite, Intelsat and optimal operating conditions to 33e, is slated to launch ensure business continuity,” he added. in the third quarter of 2016, also aboard an Arianespace launcher. The First Intelsat Epic High next satellite in the series will serve Europe, Africa, the Middle capabilities from the recent acquisition Throughput Satellite East, and Asia. of DirecTV into more service offerings, Launched into Orbit finding that satellite, when bundled Intelsat 29e, the first of Intelsat’s with other services, is drawing the EpicNG High Throughput Satellite NSSLGlobal Adds New attention of more customers. AT&T (HTS) series, launched Jan. 27 from Beams from Gazprom closed the acquisition of DirecTV French Guiana aboard an Ariane during the summer of 2015, and is on 5 vehicle. With C- and Ku-band and Intelsat track to deliver at least $2.5 billion in NSSLGlobal has upgraded its annual synergies by 2018, according VSAT network by activating two to company Chairman and CEO new satellite beams, one from Randall Stephenson. As AT&T further Gazprom Space Systems, and one grafts DirecTV products into its service from Intelsat, for maritime and offerings, Stephenson said satellite land connectivity. From Gazprom, would shape the company into a more NSSLGlobal added a Ku-band comprehensive telecommunications beam from the Yamal 402 satellite provider. “We can now deliver the at 55 degrees east, which covers best entertainment packages over Sub-Saharan Africa and waters traditional linear TV or streamed over around Madagascar and the Indian the Internet to essentially any mobile Ocean. The second beam, which is device,” Stephenson said Jan. 26, C-band, comes from Intelsat 23 at during AT&T’s fourth quarter 2015 53 degrees west, and is specifically earnings call. “A couple of weeks ago targeted to give increased capacity we launched a nationwide solution that and alternative look angles for combines any of our TV entertainment vessels in the Gulf of Mexico. The packages with unlimited mobile data beam also covers most of the so our customers can now stream coverage over the Americas and North North and South American mainland, their video without incurring overage Atlantic region, the satellite will be coastal waters to the west of Mexico, charges. And this is only our first move. placed into service at 310 degrees and significant coastline around the You’re going to see the offers and the east, where it replaces Intelsat 1R. The South Americas. NSSLGlobal’s VSAT customer experience continue to get Boeing-built Intelsat 29e combines network covers 95 percent of the better and better as we move through wide beams and spot beams with Earth’s surface, including all of the 2016.” Stephenson described DirecTV frequency reuse technology and an

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SAMENA TRENDS _ JAN 2016 SAMENA TRENDS _ JAN 2016 as accelerating AT&T’s TV Everywhere Hamad Obaid Al Mansouri, Director- OneWeb and Airbus capabilities. DirecTV had 214,000 net General of the TRA, and Inmarsat’s additions, compensating for a slight Executive Vice President, Alison Defence and Space form decline of 26,000 in AT&T’s total video Horrocks. Al Mansouri said the OneWeb Satellites Joint subscribers. AT&T added 192,000 UAE is on the threshold of an era of total IP broadband subscribers as well unsurpassed innovation at all levels Venture during the quarter. Stephenson said and particularly the space field. “The OneWeb and Airbus Defence and AT&T intends to launch several new importance of this license stems from Space, in preparation for OneWeb’s video entertainment packages this constellation of 648 small year, including more opportunities to telecommunications bundle different services. This could satellites in Low Earth encourage customers of one service Orbit (LEO), have created to add another from the company. a joint venture named “We are seeing an increase in satellite OneWeb Satellites customers in our wireline footprint to handle spacecraft bundling broadband with their video manufacturing. OneWeb service, Stephenson said, adding Satellites is equally owned that sales of satellite and broadband between both companies, services together increased by 60 and will design and build percent from the end of the third 900 satellites for OneWeb quarter this year. “It’s still early, but to provide global high- we see a lot more opportunity to use speed Internet from space. video to drive sales and lower churn Brian Holz will be CEO of for all of our services,” he added. UBS the joint venture. OneWeb Analyst John Hodulik expects more Satellites will undertake of these synergies to come to fruition its direct impact on the ICT sector and design activities for the entire satellite in AT&T’s next quarter. “Satellite TV the rapid advancements in the UAE fleet and the manufacture of the first gross adds continue to ramp and towards implementing smart cities. 10 flight models will take place in management expects net video subs The license affirms our endeavors France, with mass production of the to grow starting in [the first quarter]. to elevate the telecommunications operational satellites planned for This growth should accelerate as the sector’s competiveness and position North America. Each satellite will have company is able to install bundled the UAE as a global ICT leader.” He a mass of less than 150 kilograms. video and broadband customers added that having Inmarsat operate in Arianespace and Virgin Galactic are with a single truck roll by mid-year,” UAE will definitely open new frontiers the launch providers for the satellites, Hodulik wrote in a Jan. 27 research for business, contribute to driving starting from 2018. The spacecraft note. AT&T brought in $42.1 billion in the sector to compete globally, and will reach their orbital positions using consolidated revenues for the fourth serve the TRA’s strategy that aims electrical propulsion. Additionally, quarter, growing more than 22 percent at exploiting technology in saving OneWeb Satellites will be able to build compared to fourth quarter 2014, lives and serving humanity. “These satellites, platforms and equipment for thanks mainly to DirecTV. The satellite advancements also fall within the other operators. Airbus Defense and acquisition also boosted Earnings context of economic diversification Space will have rights to market these Before Interest, Taxes, Depreciation and building a knowledge-based products. and Amortization (EBIDTA) margins to economy. The TRA’s strategic plan 22.1 percent entails many projects and initiatives that will play a major role in enhancing ABS Wins Multi-year the quality of telecom services TRA grants public provided in the UAE,” Al Mansouri C-band Contract with added. Horrocks described the satellite service licence granting of a public satellite service Bluesky Pacific Group to Inmarsat license as a significant occasion for ABS has signed a multi-transponder Inmarsat. “The UAE has been a key contract with Bluesky Pacific Group for The UAE’s Telecommunications hub for us for many years and we satellite services on ABS 6. The multi- Regulatory Authority has granted recognize the importance of the UAE year capacity deal will offer expanded a public satellite service license to and the whole GCC as a growth region satellite connectivity services across Inmarsat. The license grants Inmarsat for us,” he said. Inmarsat was founded the Samoan islands and the Pacific. permission to offer mobile satellite in 1979 by the International Maritime ABS is providing its On C-band (OCB) communication services to public and Organization under the auspices of the platform to Bluesky for Internet, private sector users within the UAE, in United Nations to help save lives at telephony and video content delivery the government, media, maritime and sea and is the only authorized provider services to Samoa and American aviation sectors. Inmarsat’s services of the Global Maritime Distress and Samoa. Additionally, Bluesky will will also be available to support Safety System (GMDSS). Inmarsat has provide bandwidth to outlying islands humanitarian and emergency relief since evolved to provide global mobile where little or no Internet access is efforts in the UAE. The agreement broadband communication services to currently available. Bluesky is a Pacific granting the license was signed in users on land, at sea and in the air. regional telecommunications operator a ceremony at the TRA’s Abu Dhabi delivering mobile, broadband, Internet headquarters in the presence of Protocol Television (IPTV) and landline

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services in American Samoa, Samoa of the LoRa Alliance, said the has scheduled the launch of the Amos and Cook Islands and mobile services organization is very open to including 6 satellite for May aboard a Falcon 9 in New Zealand. The OCB leverages satellite operators in the mix to help rocket from Cape Canaveral, Fla. Amos the resiliency of C band to rain fade, develop the best possible standard. 6, to be collocated with Amos 2 and which can be more prevalent in the The LoRa Alliance focuses on networks Amos 3 at the 4 degrees west prime Pacific where typhoons and cyclones for rural areas, mainly the last 10 to 30 orbital position, will provide services are common. According to ABS, the kilometer hop, to efficiently aggregate to Western, Central and Eastern company’s OCB service is affordable data and deliver it to its intended Europe, Africa, and the Middle East. and aims to provide 99.9 percent source. Mulligan said satellite could Amos 6 features 39 Ku-band segments uptime service that will not be play a role in this environment by and 24 Ka-band beams. Facebook has affected by rain degradation. “OCB backhauling data after it has been selected Amos 6’s Ka-band beams is an example of our commitment collected from a large area. “At the to be the satellite backbone of its of combining high quality-and cost- end of the day [a] rural network still initiative to bring broadband Internet effective satellite services to a market needs to get connected back to the to Sub Sahara Africa with Eutelsat. The that has not been well served by the cloud or its servers, wherever they new satellite will be larger than Amos incumbents, who have managed to happen to be. I think that the really 2 and Amos 3 combined and will keep prices high in the region that unique portion of the LoRa design is incorporate new technologies such as could least afford it. ABS aims to reset that that connectivity from the edge high throughput Ka-band spot beams both the quality and affordability devices to the access point gateway for improved broadband Internet expectations in the Pacific region,” said device can both aggregate, do some access. The Ka-band spot beams will Tom Choi, CEO of ABS. smart filtering of the data, and then cover Europe and Africa as well as use the satellite network as a backhaul Ku-band technologies for new and between that point and the rest of existing clients. LoRa Alliance Encourages the Internet, the cloud, or whatever it happens to be,” he said. Mulligan said Satellite Companies LoRa Alliance networks are designed Telenor Satellite to to Help Define IoT to enable low power battery operated sensors, and arguably also controllers, Further Expand Portfolio Standards to be spread over wide areas that with New Name The LoRa Alliance, a fast growing are not easy to build with other low Telenor Satellite Broadcasting industry organization in the Internet power radio technologies. For many (TSBc) announced it is changing of Things (IoT) space, is interested in such devices it would be either too its name to Telenor Satellite. The having satellite companies join its costly economically or from a power name change seeks to reflect the ranks to help set standards for this consumption standpoint to employ company’s broadening of its satellite- emerging sector. Founded 10 months most major telecommunications communications portfolio, which ago, the LoRa Alliance started with 11 infrastructure, including satellite. But includes its expansion into the members, and has since grown to more in the absence of fiber, satellite can maritime and energy sectors. Telenor than 200. The non-profit organization fill the backhaul void; and given that Satellite’s investment in new satellites is focused on standardizing Low remote and rural areas are a primary — including its latest satellite Thor 7, Power Wide Area Networks (LPWAN) market opportunity for satellite which launched in 2015 — has provided for IoT applications through the LoRa players, this makes sense as a potential the additional growth capacity needed protocol (LoRaWAN), which aims role for the technology. Mulligan said to expand the company’s overall to become a global, interoperable the LoRa Alliance recently unveiled its business and to extend its services standard. In an interview with Via 1.0 specification, and later discovered capability within the mobility Very Satellite, Geoff Mulligan, chairman it faced an issue with roaming between Small Aperture Terminal (VSAT) various network operators. The early market, according to Telenor. The new specification lacked some key feature name comes into effect immediately functions that operators felt were and will be implemented across the necessary in order to build robust company’s products, services and networks from their point of view. communications throughout 2016. Mulligan described the participation “Telenor Satellite has undoubtedly of such operators as critical in established itself as a key provider of augmenting the 1.0 specification. satellite services throughout Europe The LoRa Alliance is soon to produce and the Middle East, with an increasing its 1.1 specification based on their international focus and a broader feedback. This, said Mulligan, is why customer base,” said Morten Tengs, the organization is very receptive to CEO of Telenor Satellite. “Following the including satellite operators too. launch of Thor 7, the new name is well- timed as it allows us to develop our wide-ranging satellite-communication SpaceX to Launch Amos services and look forward to further 6 Satellite in May extending our position in the market and expanding our regional coverage.” Spacecom, operator of the Amos satellite fleet, announced that SpaceX

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Paradigm Providing when images are accessed on the or are planned for, Sentinel satellites ground. EDRS works by connecting 1A, 1B, 2A and 2B. Evert Dudok, head VSAT for Urgent Africa with EO satellites from Geostationary of Communication, Intelligence and Project Earth Orbit (GEO), where the telecom Security (CIS), at Airbus Defense and satellite can see the EO spacecraft. Space, said the ground segment and U.K.-based Paradigm is in the process Data from the observing satellite is mission operation center underwent of rapidly shipping multiple Very Small transferred to the EDRS payload using successful testing in December 2015. Aperture Terminal (VSAT) systems out lasers, and an RF beam retransmits the EDRS will use three ground stations: for a European Union (EU)-funded information to the ground. “The data one in the United Kingdom, one in project that will serve more than 50 relay satellite, depending on where Germany, and one yet to be built in countries in the African market. The it sits on the geostationary arc, has Italy. He also said Airbus Defence and African program has been setup to visibility of the imaging satellite for Space is seeking out international enable improved management of the a very large part of the orbit — at partners to expand EDRS. The first two environment at continental, regional least half of the time if you have one payloads provide coverage primarily and national levels throughout the relay satellite,” said Witting. “If you over Europe and Africa. With partners, region. The project requires multiple have several of them, we can achieve the aim is to expand the system complete terminals consisting of situations or configurations where you globally to include the Americas and 2.4m and 3.7m antennas, along with have 100 percent of the time visibility, the Asia Pacific. “We are looking for spare components and specialized so you can have access to the data partners to deliver the system. It can RF components to enhance signal immediately, you can get it to the be a dedicated payload, [or] it can reception. The remaining order will be ground in what we call near-real time, also be a hosted payload as we have dispatched over the next few months and because of the high speed of the it on EDRS-A. We are very much open as per the project rollout specification. link, we can get much more data down to that. We want to have that system than we can get down with the classical operational by 2020,” said Dudok. scenario.” EDRS-A, the first node in Europe Prepares for Start the SpaceDataHighway, is scheduled of SpaceDataHighway to launch Jan. 29 (GMT) aboard an Orbit Gains Second International Launch Services (ILS) With the launch of the first European Proton rocket as a hosted payload Ka-band OceanTRx Data Relay System (EDRS) payload on the Eutelsat 9B satellite. The 7 Maritime Satcom only a week away, the European second node, EDRS-C, is planned for Space Agency (ESA), Airbus Defense launch in 2017, with OHB of Germany Systems Order and Space and other partners are integrating the payload into its Orbit Communication Systems has preparing for the implementation satellite platform now. By slashing the received a new $2.1 million order for of a first-regional, then global laser time between observation and access, OceanTRx 7-500 Ka-band systems, communications system. EDRS, also EDRS is expected to enhance services its maritime satellite communications known as the SpaceDataHighway, such as Information, Surveillance solution, from a global Non- is a Public-Private Partnership and Reconnaissance (ISR) disaster Geostationary Satellite Orbit (NGSO) (PPP) between ESA and Airbus response and more. ESA Director of service provider. The systems will Defense and Space, with ESA and Telecommunications and Integrated be installed on cruise ships for the European Commission as the Applications Magali Vaissiere, pointed continuous broadband connectivity. system’s first customer and Airbus to maritime as the market with Orbit’s OceanTRx7-500 2.2m antenna Defense and Space responsible for potentially the greatest demand for systems provide broadband data commercialization. EDRS is capable SpaceDataHighway services. Vaissiere communication and support Ka- of beaming 1.8 Gbps using Laser said a joint study conducted between band High Throughput Satellite (HTS) Communications Terminals (LCTs) ESA, the European Commission and communications. The company has developed largely by Tesat Spacecom Airbus found that of an estimated 400 supplied similar antenna systems to in Germany under funding from DLR, LEO launches between now and 2030, some of the largest global cruise ship the German aerospace center. The 20 percent would include candidates operators for maritime connectivity. new telecommunications system for EDRS services. Based on this study, is designed to speed up access to SpaceDataHighway partners estimate imagery collected by Earth Observation that the commercial value of quasi real (EO) satellites that, situated in Low time data — i.e. accessed within one Earth Orbit (LEO), often have limited hour — is two to three times higher access to their associated ground than near real time, which is accessed in stations. At a Jan. 15 press conference, less than three hours. Commissioning ESA EDRS Project Manager Michael tests with EDRS are planned for May Witting said that an EO satellite in a using the Sentinel 1A and 2A satellites 90-minute orbit typically only has and EDRS-A. Volker Liebig, director visibility with its own ground station of EO programs at ESA, said Sentinel for about 10 minutes, meaning it can 3 will not use EDRS because it carries only transmit data during that brief multiple payloads with an emphasis window, limiting the amount of data on radar, which creates much less collected and introducing latency data, compared to the other Sentinel between the time of observation and imaging satellites. LCT payloads are on,

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KSAT Launches 20 a problem. We are suggesting Ka, Palau Telecoms has completed a but are trying to avoid UHF and VHF capacity upgrade – the second since Ground Station Network due to local interference.” world and it launched the O3b service in January for SmallSats is communicating with more than 70 2015 – allowing it to continue the satellites approximately 22,000 times deployment of mobile internet and Norway-based Kongsberg Satellite every month. Skatteboe says that wireless TV services throughout Services (KSAT) is adapting its ground about one in every 10 operational the island nation via its ‘Fiber in the network to cater to the growing contracts they have is with a SmallSat Sky’ satellite network. The vendor’s small satellite market. The company operator and they are working with statement confirmed: ‘Palau Telecoms has launched 20 ground station sites around 15 to 20 small satellite users. first provided its subscribers high across the globe through its KSAT Lite Currently, the company tries to throughput, low latency connectivity services, which aims to reduce cost support the most common SmallSat over the O3b link in January 2015. But and up utility for SmallSat customers orbits by minor augmentations of an immediate and sustained surge who need everything, including costs, the existing KSAT network, hence in data usage signaled additional to be, well, smaller. “Smaller satellites the stations are polar and optimized capacity would quickly be needed, and are sometimes using different toward the International Space Station the company upgraded in September frequencies, such as UHF or VHF, (ISS) orbits since a lot of small satellites 2015, followed by yet another upgrade instead of traditional S- or X-band. are released from the ISS, according to in December.’ Some of them are flying in lower Skatteboe. These tend to be around orbits so they can use smaller antenna the mid-latitude There are also ground dishes. On the other hand, there are stations that offer access to pole-to- Nilesat eyes African more of them so they sometimes pole support for users that require need more antennas. We call it the more frequent access. opportunities ten-times game: 10-times smaller, Middle East satellite operator NileSat 10-times cheaper, 10-times faster and is expanding its operations from its they are looking for 10-times lower SIS Live Leases New Egyptian base to exploit the migration cost,” KSAT President Rolf Skatteboe to digital broadcasting across Africa. told Via Satellite. Over the last year Capacity on Eutelsat 10A Nilesat will increase its investment or so, the company noticed that the for Middle East Market budget by about US$50 million to small satellite market was expanding cover Tanzania, Uganda, Rwanda, SIS Live has increased the amount of and Skatteboe felt it was important to South Sudan, South Africa, Angola capacity it has from the Eutelsat 10A have a service offering that is tailored and Nigeria, marketing manager satellite, which offers connectivity in C to that market and scaled to the actual Mohamed El-Sawy told The East and Ku band, to increase its resources requirements of SmallSat operators. African Weekly. Nilesat is applying for in the Middle East. SIS Live is targeting “We saw that a number of the new new licenses from the International customers from the major events comers were trying use whatever Telecommunications Union (ITU) to and news sectors with demand for technology was available,” said enable its roll-out of satellite locations occasional use services. The company Skatteboe. “You don’t necessarily take in the new markets, the newspaper recently sold seven of its LoStow the big truck out of the garage when reported. NileSat currently operates vehicle mounted antennas, designed you only need a small electric car.” The three satellites and plans to launch and manufactured in-house, into the company sat down and looked to work two more in 2017 and 2019. The Middle East and North Africa (MENA) out what those specs might be, to Egyptian company offers satellite region. standardize the system and propose hosting services for television and a network with a common interface radio stations, Internet connections that would be more efficient to build. and satellite navigation services Already, lead-time to build a new site deployed for security surveillance or antenna is down to about 12 months activities and weather forecasting. for a large system to three months for a smaller system. “We are trying to standardize everything and simplify UK Space Agency the interfaces. We are using 3.7-meter antennas, and sometimes 4.2 meters,” Discusses New Space said Skatteboe, speaking to the KSAT Policy Lite offering for SmallSats. And while the company has received skepticism In December last year the United surrounding the size of the antennas, Kingdom released its first national KSAT finds this has been sufficient thus space policy, outlining the country’s far to capture downlinked data from Palau Telecoms political approach to space. Already an SmallSats. “Our experience is that this advanced nation in the space domain, gives sufficient G/T margins. In general, completes second O3b the U.K. aims to grow its portion of the there are a lot of margins in space and satellite network capacity global space industry to 10 percent our experience is that you can get by by the year 2030, and reach 40 billion with smaller systems than anticipated. upgrade pounds ($56.6 billion) by the same date. Alice Bunn, director of policy We are encouraging our partners to Global satellite service provider at the UK Space Agency, describes standardize as well. X and S are great O3b Networks has announced that frequencies, but licensing might be the national space policy as a strong

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SAMENA TRENDS _ JAN 2016 SAMENA TRENDS _ JAN 2016 statement that the U.K. is serious for national security or for delivering Belarusian Telecom about being in space. “What we tried essential public services — or, in the to do was produce a document that case of space, for both. We need to Satellite Belintersat 1 is very high level and simple,” Bunn ensure that infrastructure is resilient, Launched Aboard Long told Via Satellite. “We have a number and we need a complete picture of of more detailed strategies, but what how we use the infrastructure and March 3B Rocket we were really missing was that what we would do in terms of backup Belintersat 1, the first satellite of overarching piece.” Bunn said the U.K.’s or alternative sources if for any reason Belarus’ new national operator national space policy aligns different that infrastructure was unavailable. Belintersat, launched January 16 government departments behind the The government will take a number aboard a Long March 3B rocket from same objectives. The document lists of steps to make sure we can rely on China’s Xichang Satellite Launch more than 20 different organizations the infrastructure, and recognition Center’s LC3 pad. The satellite’s orbital — ranging from transport, to defense, of it is now deemed critical,” she location is 51.5 degrees east, where justice and even medicine — that have said. From a national security it covers Europe, Africa and much of ways to benefit from space. To create standpoint, the U.K.’s national space Asia to provide telecommunication the U.K.’s first national space policy policy emphasizes a commitment services such as TV and radio Bunn said the country drew heavily to protecting against non-malicious broadcasting, and broadband Internet from the United States’ space policy, threats such as space debris and space access. Belintersat 1 is based on the and has common threads with Japan’s weather, and malicious threats such DFH-4 satellite platform from China Basic Plan for Space Policy. Japan, she as counter-space technologies. The Great Wall Industry Corporation said, was less of a direct influence and document mentions the U.S. as a close with Thales Alenia Space supplying more a reassurance that the U.K. was international partner in the defense payloads. The satellite carries 20 headed in the right direction. Industry realm. The U.K. national space policy C-band transponders and 18 Ku-band was also influential in creating the also addresses the highly anticipated transponders. Belintersat intends to document. Bunn said that, because spaceport. The document describes use the satellite heavily for commercial space can be advantageous for launch as important and mentions purposes in addition to meeting the improving public services like weather sub-orbital space tourism and micro domestic needs of Belarus. Shortly forecasting, national security, and gravity science services as means ahead of the launch, the operator the economy, ensuring the policy to build up crucial technical and entered a partnership with NigComSat supported a strong industrial base operational know-how, leading up to to manage the satellite for its 15-year was paramount. The U.K. government launch capabilities for small satellites lifespan. intends to incorporate benefits from from the U.K. space where possible. For example, the national space policy describes NASA Awards CRS 2 satellite broadband as the best way to ISRO Orbits Fifth IRNSS bridge the digital divide for the last 5 to Missions to Orbital ATK, Navigation Satellite 10 percent of the country’s population, SNC and SpaceX and companies such as Avanti, and BT The Indian Space Research in partnership with Satellite Solutions Organization (ISRO) launched the NASA revealed Orbital ATK, Sierra Worldwide, recently received contracts fifth of seven satellites in the Indian Nevada Corporation (SNC) and SpaceX to deliver such services. “It’s principle- Regional Navigation Satellite System as the winners of the long-awaited based,” explained Bunn. “The first (IRNSS) today aboard a Polar Satellite Commercial Resupply Services 2 (CRS principle is that we recognize that it Launch Vehicle (PSLV). The satellite 2) contract on January 14. With a is of strategic importance. By that I entered an elliptical orbit very close to maximum potential value of $14 billion mean we don’t do space for reasons its intended orbit, separated from the from now until 2024, the contract of national prestige; we do space PSLV fourth stage and automatically guarantees a minimum of six missions because we recognize that it can be deployed its solar panels. ISRO’s for each supplier to deliver and very often the most cost-effective master control facility at Hassan, remove cargo from the International solution. Whether you are trying Karnataka has control of the satellite, Space Station (ISS). Though principally to find your place in the universe, and will conduct four orbit maneuvers important for civil space, the CRS 2 enable global telecommunications, or to reach geosynchronous orbit at contract has significant implications monitor the planet’s changing climate, 111.75 degrees east longitude with for the satellite industry as well. very often space is the most effective 28.1 degrees inclination in the coming The contract is a major catalyst for and unique environment to do that.” days. ISRO launched the first four the U.S. launch industry, providing Another important development IRNSS satellites between 2013 and consistency for a sector where long- related to the space industry in the 2015. Following IRNSS 1E, the agency lead times can drive up costs without a U.K. is the recent publication of has two more navigation satellites regular mission cadence. Orbital ATK’s the “strategic defense and security launching this year to complete the upgraded Antares rocket and Cygnus review.” Bunn said this document constellation. Ground stations in 18 module, SpaceX’s full-thrust Falcon 9 classifies the space sector as critical locations throughout India support rocket and Dragon capsule, and United national infrastructure for the first IRNSS. The complete navigation Launch Alliance’s (ULA) Atlas 5 rocket time, boosting the recognition of its system is designed to provide position with SNC’s Dream Chaser spacecraft importance. “It’s about identifying our information in the Indian region and are all slated for use in resupplying critical national infrastructure, either 1,500 km around the Indian mainland. the ISS from late 2019 until 2024. Continued resupply launches from the

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U.S. also means more small satellite award. He declined to state the value of data sent from low orbit satellites deployments from the ISS. In recent of individual missions, though in a Jan. as well as airborne platforms. It also years, companies such as NanoRacks 14 press release, Orbital ATK said its carries a Ka-band antenna to transmit and Spaceflight Inc. have leveraged six missions are valued at about $1.2 the data from geostationary orbit to the space station to launch CubeSats billion to $1.5 billion. Shireman said EDRS ground stations. and other small spacecraft for a the cost of specific missions depends range of customers. And the contract on the type of mission ordered. For could also breathe new life into in- example, while each servicer has the Thailand to classify orbit servicing. In a 2015 interview ability to deliver and dispose of cargo, with Via Satellite, SNC Space Systems only SNC and SpaceX can return cargo orbital slots as national Corporate VP Mark Sirangelo, said to Earth, and thanks to Dream Chaser’s assets that using Dream Chaser, “on the way runway landing capability, SNC can The committee drafting Thailand’s new home from dropping cargo off at return cargo the fastest. constitution has revealed plans to use the ISS as an example, [could] fix or it to classify orbital slots and spectrum move something,” such as a damaged assigned for broadcasting as national or derelict satellite. In a Jan. 14 Eutelsat 9B with EDRS assets. By classing orbital slots and press conference, Kirk Shireman, ISS spectrum this way, any companies program manager at NASA’s Johnson Hosted Payload Set for making use of the assets would need to Space Center, said the agency learned Proton Launch act in the best interests of the people valuable lessons from the CRS 1 contract International Launch Services (ILS) of Thailand and national security, the with SpaceX and Orbital ATK. The new is scheduled to launch the Eutelsat Bangkok Post reported. The move is contract includes some significant 9B satellite on Jan. 28 aboard a aimed at prohibiting use of the asset changes such as a requirement to Proton rocket from the Baikonur by operators in a way designed to measure not only mass, but also Cosmodrome. Built by Airbus Defence take advantage of the public, such as volume when filling cargo missions. and Space, the satellite also carries the by charging unreasonably high fees Shireman said previous missions first European Data Relay or blocking public access to accurate System node, EDRS-A, as information. Companies making use of a hosted payload. Eutelsat the slots would need to use it under 9B is a high-capacity Ku- a concession which would include band satellite for the 9 paying a fee to the government. degrees east position that increases Eutelsat’s overall capacity to 50 Qualcomm and TDK physical transponders (47 equivalent 36Mz Form Joint Venture to transponders). The Provide RF Front-End satellite replaces Eutelsat 9A, which distributes Solutions for Mobile more than 350 channels, Devices of which 100 are in Qualcomm and TDK announced an High Definition. utelsat agreement to form a joint venture 9B will target high- to enable delivery of RF Front-End growth broadcast (RFFE) modules and RF filters into markets through one fully integrated systems for mobile pan-European footprint and four would often “volume out,” without devices and fast-growing business regional footprints serving Germany, using all the available mass. Balancing segments, such as Internet of Things Greece, Italy, and the Nordics with both metrics enables NASA to reduce (IoT), drones, robotics, automotive the Baltics and Ukraine. It is the the number of missions needed and applications and more, under the first of three Eutelsat satellites to lower costs. CRS 2 also includes an name RF360 Holdings Singapore. launch in 2016, with Eutelsat 65 insurance requirement for damage to The agreement is subject to receipt West A and Eutelsat 117 West B to government property, which became of regulatory approvals and other follow by year’s end. EDRS-A, part of a sticking point in the aftermath of closing conditions and is expected to Airbus Defence and Space and the Orbital Science’s Orb-3 Antares failure close by early 2017. The joint venture European Space Agency’s (ESA) new that damaged the Wallops Island, Va. will draw upon TDK’s capabilities in SpaceDataHighway, will significantly launch facility. Shireman said NASA micro-acoustic RF filtering, packaging speed up the flow of information weighed the 2014 Antares explosion and module integration technologies between low-orbit satellites and their and the 2015 Falcon 9 explosion and Qualcomm’s expertise in ground stations, improving reaction when considering winners for CRS advanced wireless technologies to time for a wide range of operations 2. Both incumbent providers won serve customers with RF solutions such as disaster monitoring, against competition from Lockheed into fully integrated systems. In emergency operations and coastal and Martin and Boeing. NASA has not yet addition to creating RF360 Holdings, maritime surveillance. The payload ordered any missions from the three Qualcomm and TDK will expand their carries a laser communications winners, but Shireman said the fixed- collaboration around key technology terminal and a Ka-band inter-satellite price, Indefinite Delivery, Indefinite fields, including sensors and wireless link that will retrieve high volumes Quantity (IDIQ) contracts began upon charging.

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Satellite Brings Aircraft because the security of those sites Xypoint Gateway Mobile Location is such a big problem that it just Center (GMLC), Xypoint Serving Surveillance to Africa disappears,” said Kronenburg. “You Mobile Location Center (SMLC), and South African airlines are seeing put the radar in and then a couple Standalone SMLC for their 2G, 3G and growth on the horizon, but the of months later the radar is gone 4G networks. They are using the LBS continent still operates with relatively because it is difficult to maintain all of platforms for value-added services sparse air traffic surveillance. With those sites due to the remote nature such as mobile advertising, workforce the South African Air Navigation of the continent.” Space-based ADS-B, management, and safety and security. Service Provider (ANSP), Air Traffic and requiring little ground infrastructure, With one of the two mobile operators, Navigation Services (ATNS), recently could offer an alternative to the TCS has also deployed its Location signing on with Aireon to enable terrestrial equipment that seems to be Gateway product with Middleware space-based Automatic Dependent walking away and “allow surveillance functions, as well as its Operations Surveillance-Broadcast (ADS-B) coverage to be rapidly extended across Support System (OSS). With the capabilities across the Johannesburg the continent without the necessity second mobile operator, TCS has Flight Information Region (FIR) and of having to fund, develop, operate partnered to deploy a Passive Location the Cape Town FIR, the country and maintain numerous green field Based Services system, and Enhanced could gain access to more complete terrestrial surveillance systems,” said Cell ID (eCID), A-GPS, and Observed air traffic surveillance capabilities Mthiyane. This increased surveillance Time Difference of Arrival (OTDOA) by 2018. “The implementation of is something the continent will need position engines. GSMA Intelligence, space-based ADS-B will supplement in order to increase flight efficiencies the research division of the Groupe the current terrestrial surveillance and streamline operations as the in- Speciale Mobile Association (GSMA), network in South Africa in those areas service fleet of aircraft grows and air predicts in its 2014 report that Middle where there is either no coverage traffic volumes rise. Africa is set to see East and North Africa will become the or where terrestrial systems are delivery of 1,170 aircraft between now fastest growing market in the world for uneconomical to install. Furthermore and 2034 as airlines look to replace mobile data traffic with an anticipated space-based ADS-B will provide a aging and obsolete aircraft alongside 70 percent compound annual growth backup surveillance service in the some anticipated air traffic increases, rate from 2013 to 2018. event of terrestrial surveillance system according to the Boeing CMO. outages,” ATNS CEO Thabani Mthiyane told Via Satellite Magazine. Currently, India Readies to Open terrestrial surveillance systems are Engineers build third limited in Africa as a result of socio- Space Park in Bangalore economic circumstances in the region Dubai satellite The Indian Space Research and the relatively sparse air traffic Dubai is preparing to send a third Organization (ISRO) will be opening that operates across the continent. new satellite into earth’s orbit a 100-acre space park in Bangalore, As of now, Africa operates a small in 2018. Mohammad Bin Rashid according to reports. Private industry commercial fleet, with just 690 aircraft Space Centre (MBRSC) officials told players will be able to use the reported in 2014 according to Boeing’s reporters on Wednesday that the facilities, likely to open later this Current Market Outlook (CMO). UAE’s most technologically advanced month, to manufacture subsystems The scarcity of aircraft can increase image satellite, dubbed KhalifaSat, and components for satellites. In the the financial burden each operator is now under assembly by a team of past few years, ISRO has increased must carry when implementing Emirati engineers. The final design its launch capacity significantly and surveillance, limiting the amount of of the KhalifaSat engineering model it is planning on conducting 10 to radar technology ANSPs in the region along with the software and systems 12 launches per year in the near are able to install. “Operating radar contained in the satellite has been future. This means the demand for in general is an expensive thing to completed. subsystems and vital components has do and South Africa has a pretty well increased significantly as well. The established surveillance coverage in space park will allow the industry to their airspace. But if you don’t have TCS Expands Location- manufacture and supply these systems a lot of flights going through there, Based Services in the and components faster. The space park that’s where the traffic density kicks will also allow the private industry to in, the cost per flight of operating Middle East manufacture satellites from beginning to end, including integration and that infrastructure becomes much TeleCommunication Systems (TCS) testing for launching them from ISRO’s higher and in the end those costs has added two of the largest mobile spaceport at Sriharikota in Andhra are directly linked to the rate that network operators in the Middle East Pradesh. The space agency outsources an ANSP charges the airlines,” Cyriel to its customer portfolio. With more about 80 percent of its requirements Kronenburg, vice president of aviation than 22 million mobile subscribers for rockets and satellites to the private services at Aireon, told Via Satellite combined, the two mobile network industry, according to reports. “The Magazine. Technology and cost aside, operators are using TCS’ Location- Space Park will also contribute to the the continent has also seen issues in Based Services (LBS) solutions to government’s ‘Make in India’ initiative, bulking up terrestrial surveillance as meet the rapidly growing demand as the private industry and (state-run) radar equipment tends to “disappear” for mobile Internet in the region. firms like HAL (Hindustan Aeronautics shortly after it is installed. “There are The combined value of the two Ltd.) have been helping us in making areas of Africa where even if they were contracts is approximately $3 million. rockets and satellites over the years,” to put up surveillance equipment, it Both operators are deploying TCS’ lasts for a very short period of time ISRO Satellite Center Director M. Annadurai told IANS.

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Low earth orbit satellite broadband makes a comeback

It’s 1994, the year the Channel Tunnel concept of delivering broadband via LEO opens, Nelson Mandela is elected satellites and what are the key challenges president and O. J. Simpson is arrested. that these new projects need to address? A company called Teledesic, set up by cellular pioneer Craig McCaw and Bill Firstly, it’s worth pointing out that while Gates, files a plan with the FCC for the the original investors in Iridium and ‘Internet-in-the-sky’, a USD9 billion Globalstar lost their money, these two project to build and launch 840 Ka- constellations did actually get built and band satellites into low Earth orbit (LEO) have been operating effectively for 15 to provide global data connectivity. A years. Both companies have been able demonstration satellite was launched to raise money for second-generation in 1998 but the commercial failure of constellations (Globalstar’s was launched other LEO projects including Iridium last year and Iridium should start and Globalstar meant that Teledesic launching its NEXT satellites in October). was ultimately unfinanceable (as were Consequently, there are now commercial other similar projects such as Celstri). precedents for LEO communication Construction of Teledesic’s satellites was services. officially suspended in October 2002. Secondly, the broadband market is vastly Fast-forward to 2015, and the hot more developed than it was in Teledesic’s topic of conversation at the Satellite day. Back in 1994, less than 0.5% of the 2015 conference and trade show in world’s population was online and most Iqbal Singh Bedi Washington, DC was a series of rival connections were narrowband. By 2002, Principal proposals from OneWeb, SpaceX and the year that Teledesic shut up shop, Analysys Mason LeoSat for new LEO constellations penetration exceeded 10% but even designed to provide global broadband in the USA narrowband connections connectivity (see Figure 1). What has outnumbered broadband by three to changed in the industry to revive the one. Today over 40% of the world’s

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Figure 1: Overview of selected LEO broadband projects [Source: Analysys Mason, 2015]

population is online and almost all users enjoy some form The cost of user terminals therefore remains a major [2 of broadband. challenge to the viability of LEO broadband. Similarly, it remains to be seen whether the satellites can really be built Thirdly, new entrants such as earth-observation companies for a few hundred thousand dollars apiece. Co-ordinating Skybox Imaging and Planet Labs have shown that LEO the spectrum for global constellations of LEO satellites with satellites can be built at low cost: Skybox (bought by Google the operators of existing geostationary satellites in the in 2014 for USD500 million) developed its dishwasher- same band is also a complex undertaking. Lastly, the key to sized satellite and built the prototype in house, although running a profitable telecommunications satellite business manufacture was subsequently outsourced to SSL. Planet is the fill factor: all of these projects will therefore need Labs, whose system uses larger numbers of very small to set up effective global distribution targeting customers satellites (offering lower resolution but more frequent on land, at sea and in the air. Such challenges should not updates) built all of its satellites in house. Launch costs are be underestimated, but then neither should the drive and also coming down, largely as a result of competition from tenacity of the new LEO broadband pioneers. new players such as SpaceX. Analysys Mason works extensively with satellite operators Finally, there have been some advances in the design and service providers and their investors on market of antennas for LEO satellite terminals, which need the forecasting, business planning and transaction support ability to track a satellite as it moves across the sky and projects. For further information please contact Philip Bates. transfer seamlessly to a new one when the first satellite approaches the horizon. Most commentators agree that solid-state antennas will be essential to meet the cost and reliability needs of the new systems. Two companies, Kymeta and Phasor, were exhibiting prototype low-cost solid-state antennas at Satellite 2015, though at present both companies need to deploy separate antenna units for transmit and receive, and manufacturing costs are in the thousands of dollars rather than the low hundreds.

1 Ku-band systems are likely to use spectrum at around 12GHz for downlink and 14GHz for uplink while Ka-band systems are likely to use spectrum at around 20GHz for downlink and 30GHz for uplink 2 Source: Internetlivestats.com and Internetworldstats.com

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SAMENA Council moderating smart city and connectivity - providing dense mobile access to support smart city applications @SCWS MENA conference on the 18 January 2016 in Dubai, UAE

SAMENA Council participated in panel discussions in the Wifi and Small Cell Conference, specifically addressing smart cities and connectivity through the provision of dense mobile access to support smart city applications, and preparing networks for IoT by ensuring constant and reliable mobile connectivity across the network by utilizing small cells and Wi-Fi.

SCWS MENA conference brought together the regional small cell and Wi-Fi communities to share trial and deployment experiences, build new business relationships with qualified industry stakeholders and provided a platform to witness new products and technological developments. Specifically targeted at the mobile carrier and end user community, SCWS MENA offered practical advice to CTOs, engineers and senior managers, helping them select the strategic and technology partners.

Key stakeholders included two of SAMENA Council’s valued members, Etisalat and Microsoft, and the Dubai Silicon Oasis Authority.

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