POWER SHIFT 2 Cloud Services New Partnership Deals This Year Marked a Shift in Power in Mobile

Business analysis for telecoms professionals Dec 2010–Jan 2011 leader contents

NETWORK STRATEGIES POWER SHIFT 2 Cloud services New partnership deals This year marked a shift in power in mobile. We look at 2010 show telcos are raising the stakes to provide cloud highlights as well as cloud services and fibre business models services to enterprises.

technology trends his has been the year when September it sold its 3.2% stake in merger and acquisition China Mobile for £4.3 billion and 6 Policy Tactivity sprung back to life with barely a whisper in November management in the telecoms and ICT sectors. offloaded its interests in Japan’s Mobile operators needing M&A activity accelerated as the Softbank for £3.1 billion. to better manage data year drew to a close as we showed in In mobile, at least, the global traffic flow and improve the last issue of Total Telecom Plus. balance of power is shifting towards service quality are looking to policy management. It is in the mobile sector where the BRIC countries and the Middle Ian Kemp Editor the biggest upheaval is playing out. East. That is sure to be reflected in operator ranking Total Telecom Plus Bharti Airtel in April moved up to Total Telecom’s Global 100 ranking of 8 Global 100 the number five spot among global fixed and mobile network operators An extract from Total mobile operators by subscribers going forward. This year’s Global Telecom’s ranking of the when it bought the African assets of 100 marks the fall of Zain and world’s biggest network Kuwait mobile operator Zain for charts the major risers and fallers, operators, plus figures on US$10.7 billion. But Bharti could as we show in our extract on p.8. the latest revenue and itself be surpassed by Russia’s Mobile M&A has been matched capex trends.

Vimpelcom if its deal, announced by LTE activity this year (TT Plus business and finance in October, to buy the telecoms July/August). That is shown in the assets of Weather Investments— weight of coverage in our Timeline 11 Fibre economics Review of the Year on p.19 which Two experts reveal their rounds up many of the critical studies into the cost of In mobile, at least, building next-generation events in telecoms in 2010. access fibre networks the balance of As well as being the year that LTE rollouts began, operators and timeline power is shifting governments have been grappling 16 Reviewing 2010 with business models for next- A look back at some of the including Italy’s Wind and a generation fibre networks. On p.11 key business, network and majority stake in Egypt’s Orascom two fibre experts set out the typical people events this year as Telecom—is approved. United Arab costs for NGA architectures based documented in our Emirates operator Etisalat also on their detailed studies. monthly Timelines continues to move up the ranks, in Of course, new fixed and mobile statistics October agreeing to buy a 46% stake architectures will be crucial to in Zain for $11.7 billion. Wireless support new services. Many of them 27 Prime numbers Intelligence says that will propel will be delivered in the cloud, but A breakdown of IPTV Etisalat into a regional superpower, operators are not necessarily best subscribers worldwide in Q3, network equipment with 150 million connections in the placed despite their network assets growth, new LTE revenue Middle East, Africa and Asia. (story p.2). And our Technology and subscriber forecasts, All the while Europe’s biggest Trends this month shows just how and mobile handset sales mobile operator, Vodafone, is vital policy management will be to offloading non-core assets: in delivering mobile data services. n nEtWORK stRatEGIEs

CLOUD SERVICES JOInInG FORcES new partnership deals show telcos are raising the stakes to provide cloud services to enterprises, but so too are aggregators and Internet powerhouses. By Ingrid lunden

elcos hoping their infrastructure services. unisys will implement cloud capgemini in cloud computing: The will give them an advantage in computing technology in six new colt Telco Opportunity, singles out other areas Tcloud computing face a threat data centres to enable both companies to of operator expertise including on-demand from upstarts building or aggregating deliver cloud-based services to their hosting; SaaS enablement; on-demand their own network assets. Virtual network customers across Europe. computing and storage; security; unified operators and IT and Internet power- And in the same month, in Spain communications; billing; and delivering houses are muscling in and aim to Telefonica announced a “virtual desktop” wholesale capacity for regional cloud compete with operators both on cost and offering for fixed and mobile terminals operators. “Enterprises and governments service levels. using cloud technology from NEc. The spend nearly uS$2.4 trillion worldwide on but those same companies could also two have already been working together IT products and services, many of which give telcos a boost in providing cloud for a year on Telefonica’s software-as-a- can be delivered from the cloud,” says the services to their enterprise customers. service (SaaS) offering Aplicateca, aimed report. “Within the enterprise segment Indeed a spate of partnership announce- at SMEs and large enterprises. Jaime telcos are aggressively targeting SMEs ments in October and November indicates Serrano, cEO of NEc Iberica, says the due to the growing interest in this segment that operators are raising the stakes in Spanish operator is looking to extend the for cloud-delivered software. SME share the enterprise market. product to the rest of its European and in overall cloud services revenue is cloud -based services for enterprises latin American footprint. expected to increase from 25% to 40% will generate revenues of uS$35.6 billion “I think that we are still in the earliest between 2009 and 2015.” globally by 2015, up from $12.1 billion in stage of this market,” says Serrano . “We certainly, telcos should be a perfect fit 2010, forecasts Analysys Mason. but mass are in phase zero/one of deployment. It’s for cloud services : they have both the adoption of cloud computing by enter- very cost effective, easier and cheaper for network and the existing customer rela- prise customers is still a long way off. customers, but phase two/three will be tionships delivering data connectivity to Telcos hope their early entry into enter- much more. cloud will help society do businesses. but telcos that do not own prise cloud services will help them to reap more than just IT; it can help with admin- network are also eyeing the opportunity, the benefits. Indeed, now could be the istration, traffic and many other things.” claiming they can provide greater flexi- time to step up offerings: 2011 will mark a Analysts say there is a growing oppor- bility and lower pricing: virtual network jump in the growth of enterprise cloud tunity for telcos to act as “cloud operator Virtela since June has been service revenues, of 43%, says Analysys brokers”—intermediaries between end offering cloud infrastructure services— Mason, but that growth will fall dramati- users and cloud providers, delivering ranging from application acceleration to cally in subsequent years (see chart p.4). services ranging from SlAs with multi- security solutions—that it claims can Already telcos are turning to global IT ple vendors to compliance and security. provide a cost reduction of up to 80% on providers to help speed cloud service Gartner predicts 20% of all cloud services companies’ premises-based services. launches. IbM in October launched cloud will be handled by brokers by 2015 , with That competition is set to intensify: Service provider, a carrier-grade set of total global cloud services revenue reach- Gartner estimates that by 2015 20% of hardware, software and services based on ing $148.8 billion a year earlier. non-IT Global 500 companies will its Service delivery Manager platform and designed to help operators deliver Cloud offerings from telecoms operators cloud services to business customers. IbM telco saas Iaas Paas claims it can help telcos reduce the time BT ✓ ✓ ✗ Orange Business Services ✓ ✓ ✗ to launch new cloud services—such as Deutsche Telekom/T-Systems ✓ ✓ ✓ virtual desktop management, storage, TeliaSonera ✗ ✓ ✗ hosting or applications-as-a-service— Belgacom ✗ ✓ ✗ Telefonica ✓ ✓ ✗ typically from six months to six weeks. aT&T ✓ ✓ ✓ (planned) Orange and SK Telecom are among oper- Verizon Business ✓ ✓ ✗ ators testing the service, with the former Telstra ✓ ✓ ✓ (planned) SK Telecom ✗ ✓ ✓ using it to trial infrastructure-as-a-serv- nTT ✗ ✓ ✗ ice offerings for enterprise customers. Bharti airtel ✗ ✓ ✗ Also in October, colt announced a Tata communications ✗ ✓ ✗ partnership with unisys to deliver cloud Source: capgemini TME Strategy Lab

2 www.totaltele.com December 2010/January 2011 NETWORK STRATEGIES

themselves be cloud service providers, as risk. Those providers don’t want to sign focusing this around uptime,” says Ron they deliver their core services via the up to the kind of SLA offerings that telcos Haigh, VP for cloud services and archi- cloud and move into the value chain. always have offered for their traditional tecture at Virtela. “It’s important and we The good news for network operators: services,” says Craig Wilson, VP of global still have SLAs for this, but now the bar is cloud-based infrastructure services are telecommunications at IBM. “Is there a higher: It’s not just ‘will it perform better’, growing in importance. Analysys Mason demand for committed, differentiated but ‘will it have a meaningful impact?’” says the majority of cloud services today are SLAs? Yes, definitely.” Virtela says IBM is one of its big partners based around software-as-a-service (SaaS), Reflecting that, a new survey conducted using its platform to provide cloud serv- accounting for 70% of the market; infra- by IDG Research for managed service ices, packaging them with its own SLAs. structure-as-a-service (IaaS)—outsourcing provider Savvis found 60% of respond- But while telcos and VNOs are busy network, servers and storage—accounts for ents considered it “extremely or very partnering with IT companies to launch 30%. But the balance will shift by 2015, with challenging” to get a cloud computing cloud services, some say they will face IaaS growing to a 40% share. New figures service to fit business needs, while 62% stiffest competition from Internet and IT from Gartner forecast worldwide SaaS said security was a key concern. IDG powerhouses already cutting their margins revenues within the enterprise application surveyed 172 CTOs, CIOs and IT manag- fine to pick up business (see box p.5). market will reach $9.2 billion this year. ers in enterprises globally. “The [biggest] threat [comes from] Approaching cloud services with Virtela says it offers a “250 percent” companies like Amazon, Microsoft and network-style guarantees could become a money-back guarantee for companies Google,” says Andrew Greenway, global key point of differentiation and one from which don’t see their applications become cloud computing programme lead at which telcos could profit. “What I consist- 5%–25% faster using its cloud platform. Accenture. “I don’t think the telcos would ently hear is that enterprises of all sizes “The traditional model for application have traditionally seen them as competi- right now [are seeing] a reluctance from services was around a managed service tors, but in cloud the huge scale of cloud service providers to take on the provider offering equipment and investment they are coming in with, and

Incorporated in 1997, with a tax holiday up to FY 2018, Lanka Bell Limited

(LBL) is Sri Lanka’s leading CDMA 2000-1X (fixed line) operator that also offers WiMAX IEEE 802.16 d data services on the 3.5G spectrum, via 509 base stations and 65 branch offices throughout Sri Lanka.

LBL is connected to the 65,000 km long FLAG Global Undersea Fiber INVITATION FOR Optic Network that connects all continents of the World, as well as to the 88,000 km long Reliance Domestic Terrestrial Network covering EXPRESSIONS the length and breadth of India. LBL owns and operates the sole OF INTEREST landing station of FLAG in Sri Lanka. Having established a strong brand name, LBL was awarded the “Peoples Fixed Line Telecommunication Service Brand of the Year” at the Annual Peoples Awards 2010 organized by the Sri Lanka Institute of Marketing KPMG in Sri Lanka and AC Nielsen.

The shareholders of LBL invite telecom operators and/or investors to submit their expressions of interest to acquire 99.99% of the company. Such expressions of interest should be addressed to the Financial Advisors, KPMG Ford, Rhodes, Thornton & Co., on or before 31st December 2010.

All communication should be directed to: Reyaz Mihular Partner – Head of Financial Advisory KPMG Ford, Rhodes, Thornton & Co. 32 A, Sir Mohamed Macan Markar Mawatha Colombo 00300 E-mail: [email protected]

(c) 2010 KPMG Ford, Rhodes, Thornton & Co., a Sri Lankan Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (”KPMG International”), a Swiss entity. All rights reserved.

December 2010/January 2011 www.totaltele.com 3 nEtWORK stRatEGIEs

Enterprise cloud service growth Enterprise cloud revenues, 2015 to get them very cost effective. They will need to virtualise everything and offer n n — Growth Vendor-driven Registered IT partners 2% managed service providers sophisticated services, because that is n Managed service providers US$0.5 billion n communications service providers what can now be bought. That is a big 40 45% challenge for them.”

35 40% 23% When it comes to the enterprise cloud 35% communications market Analysys Mason estimates that by 30 service providers 39% 30% US$8.2 billion 2015 telcos and managed service provid- 25 Registered 25% It partners ers together will take 25% of revenues 20 US$14.0 billion 20% (see pie chart). Registered IT and applica- 15 15% 36% tions partners—such as agents, systems vendor-driven 10 Revenue (U$ billions) 10% US$12.9 billion integrators, dealers and direct market Year-on-year growth rate growth Year-on-year 5 5% resellers—will account for 39% of this 0 0% end-user-generated revenue; while IT 2010 2011 2012 2013 2014 2015 and applications vendors (such as Source: analysys Mason Source: analysys Mason Salesforce.com) will generate 36% of the revenue, either through Web-based sales their cost points, are way below what bottom-up calculations, the telcos were or dedicated account representatives. telcos are used to.” Greenway says he totally out of line [cost-wise],” he says. IT and integration skills, as well as recently went through a cloud bench- “So for telcos to launch these services network assets, are becoming an intrinsic marking exercise with a telco client, successfully, they will need to …get their part of the cloud computing play, partic- comparing it with other telcos and against house in order, and if they want to offer ularly when one company is unlikely to other providers: “Just trying to do some those services themselves they will need be able to provide all the components.

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“It’s still a recent and fragmented Net gains: Internet powerhouses maintain their lead market with many players,” says Alex Rigaldo, head of the cloud computing Cloud services were effectively kicked off by Internet companies, and they are still the ones programme at Orange Business Services. running with the ball. “In SaaS the leader is Saleforce.com, with Amazon coming up swiftly “When a customer wants to put an app behind,” says Haigh at Virtela. into the cloud they need to find the right Salesforce.com in November beat analyst expectations by posting revenues of US$429 million, a 30% increase compared to the same quarter a year earlier. Marc Benioff, the CEO, player, specific support, billing and so on. says the company is on track to make US$2 billion in revenues in 2012. That’s okay for one or two applications, Amazon, which started its Web Services division four years ago and now offers a range of but when it comes to placing all your IT cloud-based applications and infrastructure services, in November announced it is adding a into the cloud it becomes a nightmare.” new “supercomputing” component, which businesses can use to boost processing power for application development, computations or data-heavy instances. Amazon—which uses As a result, IT services companies are a mix of the public Internet and virtual private networks to provide services—is well known snapping up cloud integration specialists for being one of the most competitive in terms of pricing for its services, and for having one to address the problem. In November, of the widest ranges of offerings. UBS forecasts that Amazon Web Services will have sales of US$500 million in 2010, rising to $750 million in 2011. The company also offers SLAs for Dell announced the acquisition of Boomi, Elastic Compute Cloud (EC2), its primary cloud computing service. which sells a platform to integrate enter- Google also has big ambitions in this market and could partner with telcos that don’t prise data from cloud applications with directly compete on the applications front to deliver services. “There is nothing I can disclose on-premises applications. That followed on Google today, but we are talking to them regularly; they are talking to all of us [telcos] regularly,” says Alex Rigaldo, head of the cloud computing programme at Orange Business IBM’s purchase in May of cloud software Services. “The IT market is very difficult to break into for large companies” that don’t have integration company Cast Iron Systems. the channel partnerships established to target enterprises. NEC, in an interview with Total Telecom in November, claimed operators lack the IT skills necessary to succeed in cloud customers since launching in June announced Business VPN Galerie, a cloud computing. “Most operators don’t 2009, and already has one big customer service that connects enterprises to cloud have a clue about how to combine IT on its books for integration/aggregation service providers’ applications through services with their network and then work: “A luxury brand, with more than the operator’s IP virtual private network, operate it as a [cloud computing] busi- 30,000 employees worldwide…We’re promising end-to-end SLAs. ness,” said Toshiyuki Mineno, senior VP putting together a single application store Operators such as AT&T, Verizon, at NEC. Mineno also expressed doubts to be accessed via laptops and desktops. T-Systems and BT have been offering over cloud service and virtual network We give a single interface where each cloud services for some time (see table operators (VNOs) that don’t own their employee has access to all collaboration p.2). But in addition to Orange, the past own infrastructure but deliver aggre- services either from Orange or third few months have seen a succession of new gated services or services over the public parties such as WebEx, and some oper- or revamped cloud launches from telcos. Internet. “Google, Salesforce.com and ated by the customer itself. We give In the US, for example, Verizon in Amazon are competitors to the operators different service levels depending on the November announced it will be beefing because they’re utilising their networks user’s profile, and we bill on what has up its own unified comms/collaboration but also taking revenue from them,” he actually been used.” products with Microsoft’s SME-focused said. “[But] they cannot provide carrier- In December Orange Business Services cloud offering, Microsoft Online Services. grade services or guaranteed SLAs.” Verizon claims that using these services in Indeed, operators are fighting back and Global IT cloud services growth the cloud could cost users up to 40% less say their network infrastructure gives n Infrastructure-as-a service n Platform-as-a-service than equivalent on-premises services. them a key advantage. “Most enterprises n Software-as-a service ● CAGR But in the longer term, some think

would not trust a public cloud for critical $17.4 $44.2 carriers’ network assets will not be a applications,” says Rigaldo at Orange. billion billion guarantee of success. “I think Amazon “We are positioning ourselves as a trusted has proven that you don’t need to own 21% 3.7 37% intermediary, a single place where people 12.8 29% your own network to be a leader in cloud can buy and use online all cloud services, 10% 1.7 services,” says Haigh at Virtela. 35% and potentially migrate to more profes- 5.8 13% UK VNO Azzurri Communications has sional services.” Like other operators yet to launch a cloud service, but CEO Orange is partnering with third parties 21% Mark Quartermaine says this will be 69% 12.0 for applications and infrastructure, such 25.6 58% coming. “I can see the scenario where a as the alliance it struck in September with CIO is buying a hosted solution. That Cisco, VMware and EMC to provide becomes an opex- or utility-based model cloud services with end-to-end SLAs. 2009 2013 that can be flexed up or down, buying Rigaldo says Orange has picked up 100 Source: Capgemini TME Strategy Lab capacity for peak demand,” he says. n

December 2010/January 2011 www.totaltele.com 5 TECHNOLOGY TRENDS

POLICY MANAGEMENT THE BEST POLICY Mobile operators needing to better manage their data traffic flow in deror to improve congestion and service quality are turning to policy management. By Roy Rubenstein

olicy management is becoming a using techniques such as deep packet a session to dynamically change its key technology for mobile opera- inspection (Total Telecom Plus, May 2010) attributes so that the subscriber can have Ptors as they tackle rapid data traffic and processed. Such packet processing a good user experience for a multitude of growth in their networks: The ability to includes assigning bandwidth, setting applications,” says Riley. adapt a subscriber’s session enables oper- priority based on a packet’s class, or The PCRF interfaces to the policy ators to address traffic congestion and blocking a flow. enforcement which enacts the rules on ensure service quality. But policy manage- Once informed about a new flow, policy traffic. Policy enforcement can be implement is also enabling operators to be management defines the rules to be mented in a variety of platforms including more creative in their service plans and applied to the packets based on the the gateway GPRS support node (GGSN), even to deliver services consistently irre- subscriber’s data. “It could be for a partic- routers, and standalone deep packet spective of the access network. ular application, it could be time-of-day inspection (DPI) platforms. The PCRF Fixed broadband networks have for based, it could even be location-based; also interfaces to the subscriber profile some time used policy enforcement rules there are all sorts of things you can put in repository (SPR) which holds information to control end-users’ services: for to change the way [a flow] is treated,” says on what a subscriber is entitled to. When example, to enable parental control, and Peter Mottishaw, principal analyst at a user signs up to a service, the operator’s to ensure fair-usage by blocking the Analysys Mason. provisioning system informs the SPR of minority of users that hog network capac- Fixed networks use policy management the subscriber’s profile. ity. But it is mobile broadband that is to block some peer-to-peer traffic without It is the more demanding requirements predominantly forcing operators to impairing legitimate peer-to-peer usage. of mobile that are driving policy manage- embrace the technolog y, to manage traffic Such applications have used static poli- ment innovation. While parental control congestion and enable new services. cies provided by system vendors as part of and fair usage are now being applied to Susie Kim Riley, chief marketing officer their switches or routers, says Shira mobile as they have been in fixed at Tekelec, says she recently attended a Levine, directing analyst, next genera- networks, mobile has more variables to conference where Vodafone presented tion OSS and policy at Infonetics consider. These include terminal types, a graphs that showed the benefits it is expe- Research. “[Now] policy is becoming scarcer radio channel resource, and loca- riencing from implementing the vendor’s more dynamic, capable of making real- tion—whether a user has access to WiFi policy infrastructure. “They were rather time decisions, and is moving out of the or is roaming. dramatic,” she says. “As soon as they network infrastructure into a more inde- Yves Bellego, head of network strategy started implementing [policy manage- pendent IT solution,” she says. at Orange, describes policy management ment], the network growth started to A key policy networking block is the as one of a set of features the operator is taper off because they were actively policy charging and rules function (PCRF) exploring across its networks for traffic managing their network peaks.” Vodafone which performs the policy management management and ensuring quality of has managed to reduce peak traffic by based on configured rules. “The PCRF is service (QoS). Orange’s focus is on wire- 16%–24%, claims Riley. about real-time control, the ability during less, but policy management is already in EU legislation has also been a catalyst use for its wireline services to enable for operators to embrace policy manage- Business drivers for policy control parental control of content. For mobile, ment, though use in mobile networks is Orange is using the technology to enact a still in its infancy: Since July EU opera- Reduce network fair-usage policy, downgrading a user’s tors must inform users when they are congestion download throughput once they exceed Increasing revenue approaching a €50 roaming limit. “Policy per user their monthly quota. helps provide transparency into that Orange says its next step is tackling Delivering tiered usage but also manages the gating mech- services QoS management. “The need to ensure Building out anism,” says Jonathan Downey, director IMS compliant traffic management is a short-term need of product marketing, Openet. “When architecture for wireless, while QoS arises because we Regulatory you hit that limit it cuts you off and redi- compliance have very different services going over rects you to give you service options.” the air simultaneously, whether for the 0% 20% 40% 60% 80% Policy management resides in the Percentage of service provider respondents: 25 large telcos same customer or for different ones,” says network’s control plane, and oversees the questioned globally, representing 28% of global revenues Bellego. Such functions require policy data plane where packets are analysed Source: Infonetics Research management in the form of an installed

6 www.totaltele.com December 2010/January 2011 TECHNOLOGY TRENDS

PCRF, and QoS processing in the radio Content challenges: telcos need to better analyse their customers access network, says Bellego. Ericsson says QoS management will Service providers must improve their ability to analyse customers’ requirements as well as become increasingly important as more their billing systems if they are to exploit new content-based business opportunities. That is a key finding of a study commissioned by Oracle Communications that surveyed 50 machines and m2m devices—it forecasts media players and 50 wireless and wireline service providers in EMEA. “In telecoms, 82% of 50 billion globally by 2020—are connected service providers are looking to offer focused offerings to customers but only 12% are able to the mobile network. Soft-drink vending to execute against the analysis of customers’ behaviour in order to understand what to offer machines and high-definition security those people,” says Gordon Rawling, director of EMEA marketing at Oracle. The report found that only 16% can provide detailed insight into a user’s behaviour. In turn, cameras have differing requirements, for 46% can make recommendations based on customers’ current interactions. Yet telcos are example: vending machines are low data keen to provide users with content through partnerships with IT and Internet firms. Already requirements that send bursts to update 82% have such partnerships and all expect to grow their offerings via mobile apps, Internet their status in the early hours; but when a portals, sourced content from media and entertainment companies, content aggregators, social media companies and even creative consumers selling their content. security camera is triggered, it is a high- And as operators grow their content offerings, they will need to improve their ability to capacity, high-priority stream. bill customers. Telcos are in a much better position than media providers, says Rawling, “If the current state is characterised by yet 40% still can’t process micropayments, 28% can’t cater for subscriptions while 12% a larger variety of people with differing are unable to process one-off payments. “Telcos have more maturity to service some of the back-office functions around partnering and around billing,” he says. “But if they can’t demands, the next wave will be an even draw together the insights they have and differentiate them back to the consumer and the larger variety of connections, not just [to] [content] partners, they have nothing to monitise and nothing to bill.” people but [also to] machines,” says Jan Häglund, VP and deputy head of product entice users to higher-fee services. Tekelec everyone wants to jump on the band- area IP and broadband at Ericsson. says one US operator has a turbo-boost wagon,” says David Sharpley, senior vice Orange’s Bellego and his team are option that allows users to try a higher- president, marketing & product manage- exploring differentiated services. “We speed data tier. “Some 40% of users that ment, at Bridgewater Systems. recognise this is technically feasible. have tried it have upgraded,” says Riley. Growing interest in policy control has However, is there any interest in doing it Infonetics’ Levine says Saudi Telecom, seen a significant influx of vendors in the [from a business perspective]?” working with vendor BroadHop, has past three years, with Analysys Mason Policy management vendors are hoping implemented a parental control scheme counting over 30 offering policy manage- their case studies can convince operators. using policy that allows subscribers to ment products. “The danger is if you Bridgewater Systems says one European turn off their children’s phones during don’t think through ahead of time the operator is introducing a ‘happy hour’ prayer times. “Prayer times change overall strategy and how it all fits where users can download all the data during the year… so it requires a complex together, you could end up with a lot of they want between the hours of 8pm and rules decision,” says Levine. incompatible stove-pipe solutions,” says 9pm independent of their plan. Another But operators must overcome chal- Mottishaw. “They could look back in five operator customer is implementing tiered lenges regarding policy management. “If years’ time and discover they have very roaming plans whereby rates are cheapest you do a bad job of this you can really unpleasant legacy [equipment].” if the user is in a neighbouring country. upset your customers,” says Mottishaw. Regulation could also play a significant What’s more, selling a data plan to new Orange says its biggest challenge is not part in decisions to implement the tech- devices such as the Apple iPad tablet, for just confined to policy: “[It is] managing nology. “There are definitely technology a set time and a given quota, becomes the customer and their services over the challenges,” says Larry Socher, global more straightforward using policy. various access networks,” says Bellego. lead network practice at Accenture. “But “Policy enables data plans in more flexi- For example, using WiFi for mobile traffic the bigger deal—take mobile broadband ble ways,” says Downey at Openet. offloading and delivering a customer’s management—when implementing a Operators are also working on service services over whatever network is availa- traffic shaping solution is walking a tight- plans where the monthly download quota ble. “That is not only a question of policy rope with net neutrality.” does not depend on the access network: but also identity management: How to Tekelec claims operators have also held for example, capping it at 10 Gigabytes recognise the customer whether back from introducing new creative per month irrespective of whether it is connected through the mobile network, a features due to uncertainty over net downloaded over fixed, WiFi or mobile. WiFi hotspot, or through the LiveBox at neutrality. One US operator decided not “Our target at the end is something that home,” he says. The step after that is to enable a feature that would reduce by is converged between fixed and mobile, delivering personalised services with fivefold the download time of a video but in the short term what we have is associated functionalities, adds Bellego. over its access network, due to the fear of mobile data traffic increases and some Operators must also assess the differ- the unknown regarding net neutrality specific issues with that,” says Bellego. ent policy management offerings from regulation (see TT Plus October: Unequal Policy also gives operators a way to vendors. “Because it is such a hot space Measures). n

December 2010/January 2011 www.totaltele.com 7 GlOBal 100

NETWORK OPERATOR RANKINGS RIsE anD FaLL Network operator revenues are rising and increased capex is refl ecting greater fi nancial confi dence. Meanwhile a spate of M&A activity promises to shake up the ranking order

ew figures from analysts show year increase in six quarters : “consistent out altogether, a decline also charted this service provider revenues are on improvement in operator financial year in Total Telecom’s Global 100 ranking Nthe increase, and that spending performance throughout 2010 has finally of network operators. on key network and service technologies flowed through to capex,” says phil Some market changes are yet to be is also rising. Telegeography says the Kendall, director, wireless operator strat- reflected fully in the Global 100, which is aggregated third-quarter revenues of the egies, in a report. Service revenues of based on companies’ last full financial world’s 30 largest telcos were uS$309 wireless operators increased 4.5% year on years. Nevertheless, it remains the most billion, almost 3% more than in the same year, while EbITdA increased 3.2%. comprehensive listing of fixed and mobile quarter in 2009. for the preceding four Another analyst company, Infonetics, network operators, highlighting key quarters that growth “had been languish- shows spending by carriers and enter- market trends. following is an extract, ing at around 1%”, it says. prises on key network equipment is also and to access the full report and ranking but that is not the full picture. rising. Infonetics says wireless lAN tables in pdf format click here. Telegeography says the global telecoms equipment revenue reached $680 million services market has been growing by an worldwide in 3Q10, up 12% from 3Q09. s we went to press with this year’s average annual rate of just over 5% over And it says sales of Ethernet switches are Global 100, all eyes were not on the past five years when measured in local likely to be the highest ever this year, at Athe top of the table—the top five currencies, and forecasts that growth rate $18.5 billion, up 29% from last year. all retained their places, while there was will be halved over the next five years: Quarter over quarter, the worldwide just one new entrant in the top 20—but “The last two quarters have seen some 2G and 3G mobile infrastructure market rather on the middle of the rankings, aggressive M&A activity come to frui- grew 2% in 3Q10, to $8.8 billion says where one company’s position belies the tion …Stripping out the revenue impacts Infonetics, although that is down 20.7% state of flux it finds itself in. of the major deals, the underlying growth from 3Q09 “when the market was inflated Just three years ago Kuwaiti telecoms at the top 30 over the past year has been by massive 3G rollouts in china”. group Zain set out its aim to establish more like 2.2%. Even so, that is a reason- china’s operators have boosted reve- itself as a top 10 global operator by 2011. ably strong bounce back for a mature nues as they expanded 3G services, says Its lofty ambitions helped push it into telecoms market that has been through Wireless Intelligence. Its ranking of 47th place in the revenue rankings in an extremely difficult period.” mobile operators for Q2 also shows how a 2009, from 60th the year before, a posi- Greater financial confidence is reflected shift in power is taking place (see table tion it has retained this year. but as that in increased capital expenditure by oper- below right p.9). The final position in the 2011 deadline approaches, a change in ators. Strategy Analytics says wireless table is calculated as a sum of rankings by strategy threatens to push Zain out of the capex increased by 1.7% in the third connections and revenues. Among the Global 100 altogether. quarter compared to the same period in risers are bharti Airtel, Vimpelcom and At the start of this year there were 2009, and says that is the first year-on- America Movil, while Zain has dropped already signs that Zain was set to break up

Global 100: Top Ten Ranking Winners Global 100: Top Ten Ranking Losers

Revenue Revenue rank company name Revenue in Revenue Revenue rank company name Revenue in Rank 2010 change y-o-y (rank in 2009) euros (m) 09-10 Rank 2010 change y-o-y (rank in 2009) euros (m) 09-10 20 21 Oi (41) 11,948 77 -11 PccW (66) 2,256 65 16 centuryLink (81) 3,470 41 -9 Vimpelcom (32) 6,076 58 10 Telkom South africa (68) 3,863 85 -7 Eircom (78) 1,828 59 10 canTV (69) 3,831 29 -6 Qwest communications (23) 8,588 82 9 Iliad (91) 1,954 34 -6 Hutchison Whampoa (28) 6,997 28 8 SK Telecom (36) 8,674 71 -6 Level 3 (65) 2,624 37 8 Bharti airtel (45) 6,515 80 -6 Bezeq (74) 2,121 54 8 Brasil Telecom (62) 4,358 81 -6 Windstream (75) 2,090 33 7 Rogers (40) 7,060 43 -5 OTE (38) 5,984 52 6 Telkom Indonesia (58) 4,783 57 -5 Megafon (52) 4,185 Source: company data/Diana crossland Source: company data/Diana crossland

8 www.totaltele.com December 2010/January 2011 GlOBal 100

rather than expand its operations. by June the telco had concluded the sale of its African assets to India’s bharti Airtel for uS$10.7 billion. looking at the operator’s service revenue figures for each of its separate country business units , the 15 businesses divested accounted for 41.4% of Zain’s revenues in 2009. Without those operations, Zain would likely have been in the bottom quarter of the table this year. further developments mean Zain is unlikely to feature at all in the 2011 rankings. In early November united Arab Emirates incumbent Etisalat confirmed that it has made an offer to acquire 51% of Zain, subject to certain conditions that include the sale of Zain’s fourth-largest revenue-generating unit, Saudi Arabia. The deal is valued at uS$11.7 billion. The offer remains conditional, but on the day it was announced Etisalat chairman Mohammed Omran was already talking about “unifying our resources and integrating our networks”. communications was up one to 62nd. number 36 in our rankings and could Etisalat, as a result, is likely to continue The biggest advances in the Global 100 slide further next year, because its acqui- to move up the rankings in 2011, from its ranking came in latin America . Oi, which sition of Oi is unlikely to offset the loss of position at number 45 this year. Zain’s provides fixed and mobile services in its stake in rival brazilian operator Vivo; top two revenue-generating businesses brazil, advanced 21 places to take the the portuguese incumbent finalised the (excluding the divested African opera- number 20 position, largely due to the sale of its 50% stake in brasilcel, the tions) in 2009 were Iraq and Kuwait, fact that brasil Telecom was included in holding company for Vivo, to its equal which together contributed $2.56 billion its results for the first time. partner in the venture Telefonica in to turnover . Etisalat rose five places in portugal Telecom fell by one place to September for $9.8 billion. n this year’s ranking from 50th in 2009, having the previous year held the number Mobile operator rankings, connections and revenues, Q2 2010 61 spot, one place lower than Zain. Meanwhile, Zain’s former African Operator-Group connections Rank Revenue Rank change (millions) ($ millions) (year-on-year) operations should also provide new 1 china Mobile 556.3 1 17,715 1 — owner bharti Airtel with a boost in the 2 Vodafone Group 331.4 2 14,561 2 — 2011 ranking. The Indian operator was 3 america Movil Group 211.3 3 6,950 8 +2 4 Telefonica Group 155.0 6 8,851 7 -1 one of the biggest winners in this year’s =5 Deutsche Telekom Group 108.2 8 10,423 6 -2 table, rising eight places to number 37; =5 Verizon Wireless 99.7 11 14,046 3 +1 that is 20 places higher than it reached 7 aT&T 91.0 12 13,186 4 — 8 china Unicom 157.0 5 3,002 17 +1 just two years ago. The addition of Zain’s 9 MTn Group 101.6 10 3,726 13 +2 African operations could have pushed 10 France Telecom Group 78.4 17 6,858 9 -2 bharti Airtel into the top 30. 11 nTT Docomo Group 56.6 24 11,829 5 — =12 Bharti airtel Group 176.9 4 2,148 26 +4 bharti Airtel is the highest ranking as =12 Telecom Italia Group 75.0 18 4,534 12 +1 well as the fastest rising of India’s repre- 14 Sistema Group 102.4 9 2,251 23 — sentatives in the Global 100, but other of which MTS Group 98.8 2,228 15 Weather Investments Group 88.7 15 2,409 19 +2 telcos from the country also fared well, of which Orascom Group 66.7 877 despite intense competition in the mobile 16 Vimpelcom Group 89.4 14 2,289 22 +4 space pushing ARpus down. State-owned 17 Telenor Group 90.8 13 2,250 24 -7 18 Sprint 48.2 28 6,448 10 -4 operator bharat Sanchar Nigam ltd 19 Vivo 56.0 25 2,315 21 +3 (bSNl) rose four places to 44th in this 20 china Telecom 74.5 19 1,671 31 +16 year’s ranking, while Reliance Source: Wireless Intelligence

December 2010/January 2011 www.totaltele.com 9 Entries now open Entry deadline • 18 March 2011

Asia Communication Awards Celebrating the success of Asian telecoms, globally

Raffles Hotel, Singapore • 22 June 2011

www.asiacommsawards.com

Organised by: Founding Partner:

asia • communication • awards BusInEss and fInancE

FIBRE ECONOMICS cOstInG FIBRE nETWORKS Ioannis tomkos and sotiria chatzi have carried out studies into the cost of building next-generation access fi bre networks in Europe using different architectures

he European union in its digital provide 25-50 Mbps download speeds office might be up to 20 kilometres, with Agenda 2020 set as one of its main with 2-10 Mbps upload speeds. the possibility for it to be up to 100 kilo- Ttargets that by that date all Eu • Fibre-to-the-cabinet or Fibre-to-the- metres away. In the case of fTTh, either citizens should have broadband access curb (fTTc), where the street cabinet is an Ethernet switch or an optical network above 30 Megabits per second (Mbps), much closer to the user’s premises (typi- unit (ONu) may be used at the homes to and that 50% or more households should cally within 300 metres). for this provide +100 Mbps symmetric download have access speeds above 100 Mbps. To architecture, a VdSl2 multiplexer can be and upload speeds, with the capability to reach those ambitious objectives all Eu placed at the cabinet to provide 50-100 go to 1 Gigabit per second (Gbps) or even nations will need to develop a compre- Mbps download speeds with upload beyond for some technologies. hensive strategy with respect to Next speeds of 5-15 Mbps. The fTTh architecture could then be Generation Access (NGA) networks. • Fibre-to-the-building (FTTB), where subdivided into at least two other broad Entries now open Advanced optical NGA networks the fibre reaches the basement of a multi- alternative implementations . In the first require huge capital investments due to dwelling unit building, and the final part option, home run fibre, a single fibre Entry deadline • 18 March 2011 the high cost to connect each household, of the connection to individual apart- connects an Ethernet switch port located particularly in less densely populated ments/rooms is based on a copper pair. In at the central office of the network opera- areas. In fact the total investment required this case, either a VdSl2 multiplexer or tor with each individual household in a is estimated to be in the order of 250-300 an Ethernet switch may be placed at the point-to-point configuration. billion euros, and will need to be basement of the building to provide 100 In the second option, known as a star supported by a mix of public and private Mbps download speeds and 10-20 Mbps configuration, a single optical fibre is funding (see also Total Telecom plus July/ upload speeds. The distances of the build- used as a shared medium for many end- August). It is widely acknowledged that ings from the operator’s central office user connections from the central office targeted policy decisions by governmen- can be up to tens of kilometres. up to a street cabinet or a manhole located tal bodies—at Eu level, national level and • Fibre-to-the-home (FTTH), where close to the user. from that point onwards, even down to individual municipalities— the fibre directly reaches the boundary of up to each individual household, a single will be mandatory and that some degree the apartment/housing unit. depending optical fibre connection is made. of state intervention and aid will be on the technology used, the distances of The star configuration can be subdi- required to meet the goals. the homes from the operator’s central vided into two other categories based on Service providers are expected to use a mix of architectures and technologies , The total investment required to meet EU NGA with cost considerations mostly deter- mining the choice of deployment in areas network targets will be 250-300 billion euros with different characteristics—such as Comparative NGA infrastructure costs Asia Communication Awards household densities, types of housing units, available existing infrastructure 4500 fttH-P2P/fttc fttB/fttc fttc/fttH POn and so on. 5.1 1.7 3.1 Celebrating the success of Asian telecoms, globally 4000 NGA architectures are differentiated at ◆ FTTH-P2P ✖ FTTH-GPOn n FTTB ▲ FTTc a primary level by where the optical fibre 3500

connection, that starts at the central 3000 Raffles Hotel, Singapore • 22 June 2011 office of the telecoms operator, termi- nates. As a result, service providers have 2500

four main architectural options : 2000

• Fibre-to-the-node (FTTN), where capex/user ($) the optical fibre is terminated in a street 1500 www.asiacommsawards.com cabinet that may be several hundred 1000 metres or a couple of kilometres away 500 from the customer premises, with the Organised by: Founding Partner: final part of the connection being a 0 copper pair. In this case, a VdSl multi- 0 2000 4000 6000 8000 10000 plexer can be used at the cabinet to Household density (households/km2)

asia • communication • awards December 2010/January 2011 www.totaltele.com 11 BUSINESS AND FINANCE

the type of equipment used to distribute Fibre progress: subscriber numbers and operator rollouts the signals from the shared fibre to the individual end-users. In the first cate- In the July/August issue of Total Telecom Plus we looked at how governments and operators gory, called active star, an Ethernet switch are working out the dynamics of funding new fibre networks and outlined subscriber numbers and forecasts. Since then operators have continued to announce rollout plans (see below). is used for that purpose. In the second Figures from the FTTH Council show there were 3.2 million FTTH/B subscribers in Europe by category, called passive star, a simple the end of June (nearly 4.5 million including Russia), compared with 8.6 million in the US and 43 passive optical splitter is used. million in Asia. Lithuania leads the way in Europe with household penetration at 21%, followed by In both cases a multiple access control Sweden (12.9%), Norway (12.0%), Slovenia (11.2%) and Slovakia (8.7%). In terms of subscribers Russia leads the way with 1.2 million, followed by Sweden (569,000), France (371,312), Italy technique should be used to multiplex (347,000), Lithuania (284,4000), Norway (240,689) and the Netherlands (211,500). up-stream traffic coming from the In December the OECD also gave new subscriber numbers for its members, showing ONUs/homes. Today’s available stand- that some 12% of all fixed broadband subscribers were fibre/LAN customers at the end of ards/products (such as GPON and EPON) June this year. That amounted to 34.6 million of the total 294 million broadband subscribers. Japan and South Korea lead the way among OECD countries, with fibre accounting for use Time Division Multiple Access 55% and 52% of all broadband connections respectively. Next come the Slovak Republic (TDMA). In the 2010-2015 timeframe new (28%), Sweden (25%), Norway (14%) and Denmark (12%). The US had just 5% household standards and products will be available penetration, Germany 1%, and France, Spain and the UK below 1%. based on techniques such as Wavelength Among recent operator and government plans: • Italian operators Telecom Italia, FastWeb, Wind, Vodafone, Tiscali, BT and 3 are proposing Division Multiple Access and Orthogonal to build a nationwide open access fibre network using public and private funds Frequency Division Multiple Access • The German government plans to provide three-quarters of households with broadband at (OFDMA); and dedicated virtual chan- speeds up to 50 Mbps by 2014, working with Deutsche Telekom and corporate companies • Softbank floated a JPY500 billion (E4.5 billion) plan to build a nationwide fibre network in nels based on Wavelength Division partnership with rival operators NTT and KDDI Multiplexing with direct detection, or • The Australian government issued the business plan for the A$35 billion National Broadband Dense Wavelength Division Multiplexing Network, including Telstra’s agreement to sell its nework to the building company (DWDM) with coherent detection. • The UK government increased public investment in high speed broadband from £200 million to £830 million to provide speeds of 24 Mbps by 2015 Another broad categorization of NGA • Telecom New Zealand was selected as a preferred bidder to build three-quarters of the network architectures is based on whether country’s NZ$3 billion (US$2.2 billion) open access fibre network or not any active equipment is used some- • India is planning a national fibre network costing INR600 billion (E10 billion) where in the field at the so-called outside plant, in which case it is necessary to Comparing architecture costs download/upload speeds as FTTH. distinguish between active and passive Point-to-multipoint network architec- The point-to-multipoint FTTH passive optical networks. Active optical networks tures—FTTC, FTTH active star, FTTH optical network (FTTH-PON) solution is (AON) rely on some sort of electrically passive star—reduce the amount of fibre appealing to many network operators, powered equipment to distribute the and central office equipment required and particularly incumbents, due to its signal (in a point-to-multipoint architec- compared with point-to-point—FTTB, capex and opex saving attributes. In addi- ture), such as a switch, router or access FTTH home-run fibre—architectures. tion, compared to FTTH point-to-point multiplexer. Examples of such networks The home-run FTTH point-to-point and FTTB/FTTC architectures based on are those that use an ADSL or VDSL architecture, since each fibre is dedicated active Ethernet and VDSL technologies access multiplexer in the field—in FTTN, to each end-user, results in very high respectively, it offers a greener solution FTTC or FTTB configurations—or outside plant (OSP) costs, due to the need due to the fact that it requires lower those networks that rely on the use of an for more fibres as well as more/larger power consumption. Ethernet switch placed at a street cabinet ducts and larger trenches to host them. We have carried out a techno-economic or a manhole somewhere close to the end The cost benefit from FTTH point-to- study to investigate the projected OSP users (FTTB or FTTH configurations). multipoint architectures stems from the costs for FTTC, FTTB, FTTH home- Passive optical networks (PON) also fact that the feeder fibre is shared among run fibre and FTTH passive star refer mostly to a point-to-multipoint many end-users depending on the split- architectures. OSP costs account for some architecture, in which unpowered optical ting ratio. The cost benefit depends on 70%-80% of the total costs of deploying splitters are used to enable a single optical the amount of sharing implemented at new fixed infrastructure, but associated fibre to serve multiple premises, typically the feeder fibre cable (i.e. which depends deployment costs for the OSP vary signif- 16-128 households. However, a point-to- on the splitting ratio). High splitting icantly depending on the architecture point FTTH configuration, where a ratio PONs can lead to reduced OSP costs choice and the density of households at single fibre connects an Ethernet switch and make this architecture/technology the deployment area. Our analysis reveals port located at the central office of the option comparable, in terms of OSP costs, actual cost values for each architecture network operator with each individual to FTTB and FTTC—although of course and for a wide range of household densi- household, is also a passive network—as these architecture options cannot achieve ties at a deployment area. far as the outside plant is concerned. the same level of performance in terms of For the estimate of the OSP capex per

12 www.totaltele.com December 2010/January 2011 BusInEss and fInancE

user, we have considered the actual deployment methods of a fibre network and the components needed to create the infrastructure . We assumed that the fTTx network forms part of an existing access network, connecting a large number of end-users to a central point, the central Office (cO) or Access Node. The cO contains the required active transmission equipment used to provide the applications and services over optical fibre to the subscriber. The fTTx OSp infrastructure elements considered are : the feeder cabling, the primary fibre concentration points, the distribution cabling, the secondary fibre concentration point and the drop cabling . The handholes or manholes that house the splitters are considered as the primary fibre concentration points and the secondary concentration points are the y-branches that help disjoin the drop cables (see cost table). The prevailing installation method for capacity to 48 low fibre count cables . needed, their total cost and the cost of underground fibre cables involves the These are used between the splitter and their installation . creation of a duct network to enable the y-branches. The drop part is imple- The results of the techno-economic subsequent installation of cables by mented within a pavement trench with model for the various fTTx architec- pulling, blowing or floatation techniques. higher cost, by microducts containing 1, tures, in terms of the OSp costs, are This network comprises a combination of 2, 8 or 12 fibre cables . shown in the chart on p.11. As can be large main ducts that contain smaller for the estimate of capex per user and seen , the OSp costs differ significantly as subducts for individual cable installation as far as the OSp is concerned, we consid- a function of the household density at the and further microducts for the installa- ered the total length of the different considered deployment area—depending tion of a single cable for the drop part of types of trenches, ducts, subducts and on the type of area: rural, urban, dense the network. for our purposes the fibre fibre cables, the total number of hand- urban and so on. installation has been considered to take holes/manholes, splitters and y-branches There is also a significant cost benefit place using the blowing technique. of the fTTh point-to-multipoint pON The cost estimates are based on indi- architecture compared to the fTTh vidual components and civil work costs OSP material/installation costs point-to-point Ethernet one. The fTTh and were provided by construction and description unit $ point-to-point Ethernet architecture is HDPE duct – (24 micro tubes) m 2.25 telecoms operators. The potential deploy- HDPE duct – (7 micro tubes) m 2.2 about five times more costly than the ment area considered is one with a mixture HDPE duct – (2 micro tubes) m 0.75 fTTc case when considering only the of multi-dwelling units and single-dwell- Manhole each 500 OSp costs; while the fTTh point-to- Handhole each 400 ing units and with a varying density of 96 - fi bre cable m 2.8 multipoint pON architecture is about households per km2. The deployment 72 - fi bre cable m 2.1 three times more costly than fTTc. considered is based on a geographic model 12 - fi bre cable m 1.1 legacy fTTh point-to-multipoint pON 8 - fi bre cable m 1.1 already used in previous investigations . Microcable- 1f m 0.3 with low splitting ratio capability is still The feeder part of the network is Y-Branch unit each 35 much more costly than typical fTTb and deployed in big trenches with a capacity Trench I m 25 fTTc deployments. however, signifi- Trench II m 20 of 56 high fibre count cables, inside sub- Microtrench I m 16 cant cost reductions are expected with ducts for easy installation and Microtrench II m 14 future high-splitting ratio pONs. n replacement . The distribution part of the Pavement trench m 35 Ioannis Tomkos is resident professor at the HDPE duct in trench m 0.55 network is parcelled according to the cable in subduct m 0.45 Athens Information Technology Centre, and density of the area into smaller ducts Splicing each 5 Sotiria Chatzi is a research scientist there. varying from 144 low fibre count cables Source: construction companies/telecoms operators Both participate in EU fibre projects/research

December 2010/January 2011 www.totaltele.com 13 Congratulations to all the winner’s

Best Brand • Telstra Best Content Service • Türk Telekom Best Customer Care • TeliaSonera International Carrier Best Global Operator • BT Global Services Best Managed Service • Orange Business Services Best Mobile Device Strategy • Novatel Wireless Best Mobile Operator • Bharti Airtel Best New Service • Verizon Business Best Operator in a Developing Market • Digicel Best Project Management • Orange Business Services Best Regional Operator • Interoute Communications Best Wholesale Carrier • BT Wholesale Team of the Year • Roshan The Alireza Mahmoodshahi Technology Foresight Award • BT Group The Green Award • BT Group The feeling of Users’ Choice • Verizon Business CEO of the Year • Mohammed Omran, Etisalat freedom www.worldcommsawards.com

Sponsors: Organised by:

World Communication Awards For global communications providers 24 November 2010 The London Hilton on Park Lane 2010 Congratulations to all the winner’s

Sponsors: Organised by:

World Communication Awards For global communications providers 24 November 2010 The London Hilton on Park Lane 2010 TIMELINE

A roundup of the major stories in telecoms in the past month, as reported in our daily news service www.totaltele.com

Business its final round of funding. The The company has R&D, also launched an LTE network for company aims to provide “fibre manufacturing and services businesses in Espoo in Finland; Vodafone sells in Japan quality” broadband services operations in China. CSL became the first Asian Vodafone said it will sell off its in developing markets in Asia, operator to provider commercial interest in Japan’s Softbank for Africa, Latin America and the Telepresence agreement services, in Hong Kong; and Tele2 £3.1 billion, receiving £1.6 billion Middle East. BT and AT&T said they will work and Telenor started services in in December to pay down group together to provide telepresence four cities in Sweden through net debt and a further £1.5 billion Australian MVNOs services to corporates. their joint network venture in April 2012. Vodafone also said Lycamobile launched an MVNO Net4Mobility. Meanwhile Verizon it will introduce tiered mobile operation in Australia using Roaming talks said it launched commercial data tariffs as well as cross-border Telstra’s network and focusing The governments of Spain and LTE services in 38 markets on 5 data roaming tariffs in Europe. on low-cost international calling. Portugal held preliminary talks December; and NTT DoCoMo Another MVNO, Amaysim, was about removing roaming charges said it will begin operating in No net neutrality in Europe launched by the founders of between the two countries. three cities on 24 December. In The European Commission Simyo using Optus’ network. contrast, UK regulator Ofcom ruled that it would be counter Etisalat 3G licence said it doesn’t expect to award productive currently to introduce US mobile payments venture Etisalat acquired a 3G licence spectrum until the end of 2013. net neutrality laws in the EU. AT&T Mobility, T-Mobile USA for its operations in Nigeria and Verizon Wireless formed by purchasing Alheri Mobile Sprint Nextel upgrades German MTRs slashed a joint venture, Isis, to enable Services. Sprint Nextel said it will spend The German regulator said it will contactless mobile payments and up to US$5 billion to upgrade its cut mobile termination rates by mobile commerce services using NETWORKS network over the next 3–5 years, half, effective from 1 December. NFC technology. with Alcatel-Lucent, Ericsson and LTE launches worldwide Samsung Electronics selected to KPN joins with Telefonica Ericsson buys in China Operators continued LTE carry out the work. The upgraded KPN and Telefonica struck Ericsson acquired certain assets rollouts: TeliaSonera launched network will provide LTE and a deal to provide services to of the Guangdong Nortel services in Finland in the cities WiMAX services. multinational companies in over Telecommunication Equipment of Turku and Helsinki, as well as 20 markets. It follows a similar Company for US$50 million. in four cities in Denmark; Elisa Major deals for Alcatel-Lucent deal between Telefonica and Alcatel-Lucent announced fixed Telenor in September. Median GigE IP transit price, selected cities and mobile networking deals E $100 worth around 1.2 billion with Orascom sells in Tunisia $90 n Hong Kong n Toyko n London n New York China’s three operators China Qatar Telecom and Tunisian $80 Mobile, China Telecom and investment firm Princesse $70 China Unicom. And it said it has Holding agreed to buy Orascom $60 won a four-year deal worth $4 Telecom’s 50% stake in Telecom $50 billion to update the 3G network $40 Tunisia (Tunisiana) for US$1.2 of Verizon Wireless and build $30 billion. Qtel will make the $/Mbps/Month (US$) $20 LTE infrastructure. acquisition through its majority- $10 owned Wataniya Telecom unit, $0 Ericsson contracts which already controls 50% of Ericsson signed a three-year

Tunisiana. Q2 2005 Q4 2005 Q2 2006 Q4 2006 Q2 2007 Q4 2007 Q2 2008 Q4 2008 Q2 2009 Q4 2009 Q2 2010 extension deal to manage Source: TeleGeography TeliaSonera’s networks in 29 Prices for wholesale Internet access (IP transit) continue to decline even as The other three billion international traffic volumes continue to grow more than 60% annually, says countries. The vendor also won a Telegeography. In Hong Kong, the median price for a 1,000 Mbps GigE port has Google-backed satellite operator declined at a compound rate of 15% over the past five years, to $28 per Mbps. contract to deploy a 3G network O3b Networks is set to launch The median GigE port price in New York City has fallen at a compound annual for Indian operator Aircel, rate of 22% over the same period, to under $8 per Mbps. services in 2013 after securing reportedly worth SEK2.2 billion.

16 www.totaltele.com December 2010/January 2011 timeline

Huawei deals Huawei entered talks to manage and supply equipment for the African networks of Bharti Airtel acquired from Zain. And China Mobile selected Huawei to build a national optical transport backbone network.

3G launches in India Reliance Communications became the second private operator to launch 3G services in India, following Tata Teleservices in November. Bharti Airtel said it also plans to launch 3G by the end of the year.

UK extends broadband plans The UK government said it would invest a further £300 million in the country’s broadband infrastructure by 2017, setting aside £50 million to Dutch spectrum auctions NSN changes services head roughly 600 employees, to an expand into rural areas. The Dutch government plans to Nokia Siemens Networks overall headcount of 3,600. hold mobile spectrum auctions appointed Armando Almeida 800-MHz spectrum auctions for 800-, 900- and 1800-MHz as head of its Global Services Huawei hires ex Nortel CTO Sweden and Switzerland said they frequencies by the start of 2012. unit, taking over from Ashish Huawei appointed former Nortel will auction mobile spectrum in Chowdhary who will move CTO John Roese as its new the 800-MHz band early in 2011, BT 1-Gigabit trials to a newly created position senior vice president and general following Germany’s sale of the BT said it will trial 1-Gigabit responsible for operations across manager of North America R&D. so-called digital dividend capacity broadband over its fibre nework India, Asia Pacific, Japan, Greater Earlier in November Sprint earlier this year. early in 2011, as part of its £2.5 China and the Middle East. Nextel excluded Huawei and billion rollout plans. ZTE from its network upgrade TDC awards LTE contract India minister resigns project following government Denmark’s TDC awarded 3G sharing in Russia India’s telecoms minister, concerns over security. Ericsson a contract to build and Russian operators MTS and Andimuthu Raja, resigned after manage an LTE network. Comstar said they will share allegations that his department Verizon CTO leaves 3G network infrastructure in cost the country $38.9 billion by Verizon Communications’ chief Ireland spectrum auctions Moscow. MTS also said it plans to selling off 2G spectrum licences technology officer Shaygan Republic of Ireland regulator invest some RUB3 billion to roll cheaply in 2008. The Department Kheradpir left after 23 years to Comreg said it will auction off out LTE in Moscow in 2011. of Telecommunications has become chief operating officer two bands of radio spectrum threatened to cancel the licences for Barclays’ global retail banking next year, and spectrum used for people of some 85 companies. division. He will be succeeded by analogue TV services in 2012. Anthony Melone who was CTO New iBasis CEO Ericsson chairman to leave at Verizon Wireless. BSNL awards contract Willem Offerhaus is the new Ericsson chairman Michael BSNL shortlisted ZTE and CEO of iBasis, the wholesale Treschow, who has held the BTGS shuffles management Alcatel-Lucent to supply international voice carrier position since 2002, will resign BT Global Services appointed equipment for an additional owned by KPN. Offerhaus moves next year or in 2012. Andy Nicholson to head its 5.5 million lines for its mobile from VP of sales at KPN’s ICT banking and finance team; Neil network in India. Huawei and subsidiary, Getronics. Current Clearwire cuts headcount Rogers will lead government Nokia Siemens Networks also bid iBasis CEO, John van Vianen, Clearwire continued its cost- and health; Kim McMann heads for the contract which is expected moves to managing director of cutting measures announcing it consumer packaged goods; and to be worth INR13 billion. KPN business markets. will cut 15% of its workforce, or Bas Burger global commerce.

December 2010/January 2011 www.totaltele.com 17 The World Vendor Awards Be not afraid of greatness

Write your winning entry Entry deadline: Friday 21st January 2011

Do you have what it takes? Enter the World Vendor Awards and prove you're one of the world's greatest vendors! For sponsorship opportunities or further information contact Gordon White call: +44 (0) 20 7608 7041 or email: [email protected] Celebrating Telecoms' Leading Players

5th May 2011 - Swan at the Globe - London www.worldvendorawards.com

Organised by: Founding Partner: tImElInE: BusInEss

REvIEW OF THE YEaR a roundup of the major stories in telecoms in the past year, featured in Total Telecom The World Vendor Awards Plus since april and reported in our daily news service, www.totaltele.com apRil name in Germany simply to “T” Mobinil agreement TDC-Orange merger scuppered Be not afraid of greatness as part of its aim to integrate its france Telecom and Orascom The Swiss competition Bharti buys Zain Africa assets fixed line and mobile operations reached a settlement to end their commission blocked the planned bharti Airtel acquired the African in its home market. year-long dispute over joint merger of the mobile units of assets of Kuwait’s Zain, excluding venture Mobinil, with the former france Telecom and Tdc. those in Morocco and Sudan, AT&T healthcare charge agreeing to pay a settlement fee for uS$10.7 billion including AT&T took a one-off charge of $300 million. Dell expands mobile partners debt. The deal moved bharti up of $1 billion in the first quarter dell signed a deal with Telefonica to fifth place in terms of mobile to account for the impact of Japan LTE handset pact to develop mobile products connections (see chart below). changes in the uS government’s Japanese mobile phone makers and services. dell entered healthcare overhaul. Sharp, panasonic, fujitsu and the smartphone market last EU approves UK mobile merger NEc teamed up to develop November and had already struck The European commission Nokia embraces Skype an operating system for NTT deals with AT&T, china Mobile approved the mobile joint venture Nokia made Skype available as a docoMo’s lTE phones. The and claro in brazil. of deutsche Telekom and france free download from its Ovi online platform will be compatible with Telecom in the uK. The joint store and for its Symbian-based Symbian and linux. UK scraps broadband tax venture took a market lead with smartphones. A proposal to impose a £6 37% share, ahead of Telefonica Ericsson agrees LG deal per-year tax on all fixed-line O2 with 27% and Vodafone 25%. Vodafone closes navigation Ericsson agreed to buy Nortel’s connections was removed from Vodafone closed its navigation stake in the network equipment the uK’s digital Economy bill. Write your winning entry C&W completes demerger business, Wayfinder, some 18 joint venture lG-Nortel. Ericsson Entry deadline: Friday 21st January 2011 cable & Wireless completed months after acquiring the acquired the majority stake of Netherlands awards licences the demerger of its two business Swedish firm for uS$30 million. 50% plus 1 share for $242 million, Tele2 Mobiel and the joint units c&W communications and creating a new joint venture venture of Ziggo and upc each c&W Worldwide. may called lG-Ericsson. received four licences in the 2.6 Do you have what it takes? Enter the World Vendor Awards Ghz frequency auction in the Belgacom eyes energy supply CenturyTel buys Qwest Telefonica rebrands Netherlands for next-generation and prove you're one of the world's greatest vendors! belgacom entered into talks centuryTel agreed to buy Qwest Telefonica rebranded its mobile mobile services. KpN and with renewable energy supplier communications International operations across Spain and Vodafone Netherlands received lampiris to resell electricity. for uS$10.6 billion in an all-stock latin America using the Movistar two licences and T-Mobile For sponsorship opportunities or further information deal to create a new nationwide name. O2 remains Telefonica’s Netherlands was issued with one. contact Gordon White call: +44 (0) 20 7608 7041 or Telekom rebrands in Germany fixed-line carrier in the uS, brand name for fixed and mobile email: [email protected] deutsche Telekom cut its brand renamed centurylink. services in northern European. june Aggregated operators and operator groups, Q409 Virgin moves into Middle East Rank Group total connections (millions) markets Virgin Mobile signed a deal 1 china Mobile 525,331,266 2 Following Bharti airtel’s acquisition of Celebrating Telecoms' Leading Players 2 Vodafone Group 309,580,257 23 15 of Zain’s African mobile networks with Qatar Telecom to operate 3 Telefonica Group 202,333,430 20 in april, Wireless Intelligence issued a prepaid service in the Gulf 4 america Movil Group 186,544,900 17 this research that showed the Indian state. The uK operator was part 5 airtel Group (pro forma) 169,486,523 18 operator would become one of the 6 china Unicom 147,587,000 1 fi ve largest mobile groups in the world of a consortium that lost out 5th May 2011 - Swan at the Globe - London 7 Deutsche Telekom Group 127,919,986 12 by subscriber connections. Based on to Vodafone in 2007 for Qatar’s 8 Telenor Group 101,367,838 10 fourth-quarter 2009 pro forma data, second mobile licence. www.worldvendorawards.com 9 Sistema Group 99,317,515 6 international (non-Indian) markets will (of which) MTS Group 97,800,700 5 account for around 30% of airtel’s 10 Reliance communications 93,795,614 1 total connections following completion Google raises video/TV bar 11 France Telecom Group 93,437,439 26 of the Zain deal, said the analyst Google and dish Network said 12 MTn Group 92,125,000 19 company. 13 Verizon Wireless 91,249,000 1 source: Wireless Intelligence they will launch Google TV in Organised by: Founding Partner: 14 aT&T Group 85,120,000 3 the autumn, a service to bring 15 Telkomsel 81,644,000 1 Web content to TVs.

December 2010/January 2011 www.totaltele.com 19 tImElInE: BusInEss

Mobile operator ranking by revenues, 4Q09 Rank Group Revenue calculated Rank by (us$) aRPu (us$) connections This table from June showed that 1 china Mobile 18,352,230,420 11.66 1 higher aRPU in Western Europe, the 2 Vodafone Group 16,119,297,760 17.36 2 US and Japan enables operators there 3 Deutsche Telekom Group 14,055,607,800 36.63 6 to dominate revenue rankings. US 4 Verizon Wireless 13,845,000,000 50.58 13 operators Verizon, aT&T and Sprint 5 Telefonica Group 13,485,182,535 22.04 3 nextel would not be ranked in the top 6 aT&T 12,600,000,000 48.84 14 ten when measured by subscriber 7 nTT Docomo Group 9,988,124,000 59.97 25 connections. US aRPU in 2009 was 8 France Telecom Group 8,326,130,850 29.68 11 around US$50, the second highest 9 KDDI 7,391,445,700 78.48 38 after Japan, while china mobile had 10 Sprint nextel 7,192,000,000 49.81 29 almost twice as many subscribers as 11 america Movil Group 6,944,161,535 12.26 4 second-placed Vodafone. GEttInG caRtER 12 Telecom Italia Group 5,172,629,100 23.96 16 source: Wireless Intelligence alcatel-Lucent surprised many 13 SoftBank Mobile 4,813,159,540 74.05 50 when it appointed Stephen 14 Vivendi Group 4,162,326,900 38.61 34 (Lord) carter as its chief mar- 15 MTn Group 3,655,224,300 13.23 12 keting, strategy & communications offi cer. Carter, formerly the communications Minister SAP snaps up Sybase unlimited mobile data packages, sepTemBeR for the UK government, as well German software company SAp instead setting tiered tariffs. as chief executive at regulator Ofcom, took up the newly cre- AG made an all-cash bid for Sybase Telefonica wins Vivo battle ated position in april. as com- in a $5.8 billion deal . EC roaming caps upheld Telefonica ended its battle to munications Minister carter The European court of Justice gain control of brazilian mobile put together the Digital Brit- Eircom pioneers three strikes ruled that roaming caps brought operator Vivo, buying portugal ain plan, which included the E proposal—not universally wel- Irish operator Eircom launched in by the Eu are legal and Telecom’s stake for 7.5 billion. comed, even by all in the UK a three strikes policy to cut justified, dismissing actions Telefonica plans to merge Vivo government—to levy a 50p tax off customers if they share brought by Vodafone, Telefonica with its fixed-line operator Telesp, on all fi xed lines to help fund broadband for underserved copyrighted music illegally , O2, Orange and T-Mobile. giving it 70 million customers areas of the UK. The tax prom- becoming the first country to in brazil, a full 25% of its total ised to raise up to £175 mil- implement a graduated response Handset merger in Japan customer base. lion per year to fund new net- system for illegal file sharing. fujitsu and Toshiba agreed to work infrastructure in rural areas, helping with the pledge merge their mobile operations, Intel buying spree to make 2-Mbps services uni- july/augusT creating Japan’s second largest Intel bought Texas Instruments’ versally available in the UK by handset maker behind Sharp. cable modem business , Internet 2012. But it was scrapped in Reliance buys TV fi rm security company McAfee for May by the new coalition government, which also pushed Reliance communications agreed Versatel sells cable business uS$7.68 billion, and the mobile the 2-Mbps pledge back to to buy India’s largest cable TV German operator Versatel sold its device unit of German chipmaker 2015. carter duly criticised company digicable Network retail cable business Versatel Kabel Infineon for uS$1.4 billion. the decisions and warned of and merged its Internet TV and to paris-based financial investors a funding gap for next-genera- E tion broadband services. cart- broadband operations . chequers capital for 66 million . NSN buys Motorola networks er is now turning his attention Nokia Siemens Networks acquired to mobile broadband: in March Broadband rights in Finland News Corp pursues BSkyB Motorola’s networks business for alcatel-Lucent announced its finland made broadband services News corp made a £7.8 billion uS$1.2 billion . Ultimate Wireless Packet core products designed to help car- of at least 1 Megabit per second a cash offer for the 61% stake it riers move to LTE networks. In basic right for its citizens in its new doesn’t own in bSkyb Group. Vodafone to launch IPTV november it was awarded a universal service obligations. Vodafone said it will launch IpTV four-year US$4 billion contract by Verizon Wireless to expand Motorola splits in two services for subscribers in Spain 3G coverage and build an LTE New mobile TV trials Motorola said it will split into (and did so in November). network, and also signed con- O2, Orange and Vodafone agreed two businesses in the first quarter tracts with china’s three oper- to carry out joint trials of broadcast of 2011 : Motorola Mobility and TeliaSonera sell-off prospect ators worth E1.18 billion. carter’s other posts have included mobile TV technology IMb in the Motorola Solutions. Sweden’s government said it will managing director of cable op- uK , to assess how services can be reduce the state’s 37.3% stake in erator nTL, before it merged deployed using shared network s. Nokia sells wireless assets TeliaSonera after winning another with Telewest to become Virgin Japan’s Renesas Electronics corp. four-year term . In May 2007 the Media, and managing director and chief executive of advert- Unlimited data plans scrapped reached an agreement to buy the government divested an 8% stake ing agency J Walter Thomp- AT&T, O2 uK and 3 uK over wireless modem operations of to institutional investors for son UK. the summer period scrapped Nokia for around E160 million . SEK18 billion (E1.9 billion).

20 www.totaltele.com December 2010/January 2011 timeline: Business

Telekom Austria restructuring proposing to tax telecoms and million) per year between 2010 Telekom Austria said its ongoing TV operators in order to fund and 2012. But the EU queried reorganisation will cost E30-E40 public broadcaster RTVE. the tax and could rule it illegal, million in 2010, half its previous as it did with similar proposals in estimate. The company is Canvas becomes YouView France and Spain. merging its fixed-line and Project Canvas, the UK Internet domestic mobile operations into content and video-on-demand TerreStar files for Chapter 11 one unit, A1 Telekom Austria. joint venture set to launch next Mobile satellite services year, was renamed YouView TV. provider TerreStar Networks october filed for Chapter 11 bankruptcy November protection in the US. palm losES pilot Merger promises mobile giant Hewlett-Packard snapped up Russian mobile operator Etisalat moves for Zain Nitel sale approved smartphone company Palm Vimpelcom struck a US$6.5 United Arab Emirates operator Nigeria approved the US$2.5 in April for US$1.2 billion following months of speculation billion deal to merge with most Etisalat entered into an billion sale of state-run operator about the handset company’s of the telecoms assets of Weather agreement to buy 51% of Kuwait Nitel to a consortium led by future. Just a week earlier, Mi- Investments, creating the fifth mobile operator Zain, paving China Unicom. chael Abbott (pictured), who largest mobile operator in the the way for one of the biggest oversaw Palm’s software and services operations, resigned world by subscribers. corporate transactions of recent TI raises stake in Argentina from the company and took a times in the Middle East. Telecom Italia increased its stake new role as vice president of France Telecom acquisition in the company that controls engineering at micro-blogging France Telecom moved for a 40% Qualcomm axes TV service Telecom Argentina, to 58% from service Twitter. Abbot helped Palm develop the webOS mo- stake in Morocco’s second biggest Qualcomm confirmed it will 50%. It follows a long battle with bile operating platform for its telecoms operator Meditelecom, shut down its FLO TV mobile the regulator over the Italian Pre and Pixi smartphones, and worth around E650 million. broadcast service next spring. operator’s share in Sofora. analysts suggest that remains the company’s most valuable asset. Following the deal an- Ericsson buys Nortel unit 3G launches in India Verizon faces big payout nouncement HP said it would Ericsson bought Nortel’s Multi- Tata Teleservices and Bharti Airtel Verizon Wireless will pay $25m invest heavily in webOS, and Service Switch business for $65m. prepared to launch 3G mobile to the US Treasury and refund said the company could use the platform on its touchscreen services by year end, while a minimum $52.8m to about 15 tablets as well as smartphones Telenor-Telefonica partnership Vodafone Essar said it will launch million customers it wrongfully in future. Palm had already Telenor and Telefonica struck a in the first quarter next year. charged. Regulator the FCC said taken steps to grow its smart- partnership agreement to serve They will follow the 3G launches the payment is the largest ever. phone strategy, striking deals with several operators in Eu- corporate companies in their of state-owned operators BSNL rope in March. New flagship respective markets globally. and MTNL in 2009. Mobile launch in South Africa handsets Pre Plus and Pixi South African fixed-line operator Plus were launched in Eu- Spanish tax under attack Hungary next for telecoms tax Telkom launched mobile rope in June; and in October a new version of webOS was The European Commission gave Hungary’s parliament passed services to become the country’s announced together with Palm the Spanish government two a proposal to tax the telecoms fourth mobile operator, joining Pre 2 handsets running the op- months to amend legislation sector 61 billion forints (E225 Vodacom, MTN and Cell C. erating system. “It continues to be our desire to grow our share of the European mar- Service provider capex worldwide ket which is why we’re going n Capex — Capex: Revenue deeper into our existing territo- Service providers spent US$295 ries by launching on more car- 325 20% billion on telecoms and non-telecoms riers, and going into new mar- capital expenditure projects worldwide kets,” Paul Ghent, Palm’s vice in 2009, 5.9% less than they spent president of European sales, 15% in 2008, said Infonetics in this June- published research. Carriers reduced told Total Telecom. Following investment in network infrastructure by Abbot’s departure Palm sub- sequently took steps to retain 10% 8% in 2009, with the deepest cuts in IP voice infrastructure, optical network other senior executives, start- equipment, video infrastructure and IP ing a retention programme to 5% routers. Service provider revenues in pay bonuses. For Twitter, Ab- verage capex in $US billions verage capex-to-revenue ratio verage capex-to-revenue

A 2009 were US$1.65 trillion, a decrease bott also brings experience A of 4.2% from 2008 said Infonetics. from his time at Microsoft, 0 0% Source: Infonetics Research where he was general manag- 2009 2010 2011 2012 2013 2014 er of .Net Online Services.

December 2010/January 2011 www.totaltele.com 21 timeline: Networks

april across Europe, Asia Pacific and june Central and Latin America with EU Broadband for all IPv6-capable MPLS nodes. BT increases network spend The European Commission said it BT said it will increase its fibre would revise the universal services MTS outsources network network investment by £1 billion, law to guarantee broadband access Russia’s largest mobile operator to £2.5 billion in the period to for all EU citizens, updating the Mobile TeleSystems signed a 2015, to enable it to cover two 2002 provision. five-year contact to outsource its thirds of UK households. The network in 16 regions to Nokia operator also signed a five-year Ericsson wins China deals Nokia shake-up Siemens Networks. contract with Alcatel-Lucent to Nokia in May announced its Ericsson won new deals with expand its high-speed 21CN. second restructuring plan China Mobile and China Unicom NSN wins deal for T-Mobile/3 in seven months in a bid to worth US$1.8 billion: An US$800 Nokia Siemens Networks won a India awards 3G licences take the initiative back from its smartphone rivals. The million deal with China Unicom contract worth about £400 million India’s 3G auction raised Finnish vendor split its mobile for 3G network with HSPA with T-Mobile and 3 to expand US$14.6 billion, with Bharti phone operations into three Evolution technology, and a their 3G networks in the UK Airtel, Vodafone Essar, Reliance, units, and announced that its framework contract worth US$1 under the MBNL joint venture. Aircel and Idea Cellular current mobile phones head Rick Simonson (pictured)— billion with China Mobile for a awarded bandwidth. In a related once tipped as a future Nokia radio access network. Africa subsea cable complete development, India’s regulator CEO—was to leave the com- Construction of the East Africa TRAI said the country’s four pany. The restructuring plan, Submarine Cable System (Eassy) largest operators—Bharti, effective from July 1, saw its may Devices and Services busi- was completed, according to Vodafone, BSNL, MTNL—will ness split into three units: Mo- Orange hands network to BT the West Indian Ocean Cable have to pay a total of INR120 bile Solutions, Mobile Phones Orange UK struck a deal for BT to Company (WIOCC), Eassy’s billion for holding bandwidth in and Markets. Mobile Solutions take over the operation of its fixed largest shareholder. excess of 6.2–8 MHz. will focus on high-end devices including mobile computers network. Orange will now offer based on its MeeGo operat- fixed-line voice and broadband Infosys scores Microsoft deal Germany awards spectrum ing system as well as Symbi- services over BT’s network, a India’s Infosys Technologies won Germany’s spectrum auction an-powered smartphones, move which is expected to almost a three-year outsourcing contract netted €4.38 billion. Telefonica and will be headed by Anssi Vanjoki. The Mobile Phones double its broadband footprint. with Microsoft worth more than O2, Vodafone and Deutsche division will concentrate on $100 million to manage internal Telekom each secured two paired mid-to-low-end Series 40 AT&T network spending IT services, including help-desk 5-MHz chunks of spectrum in the handsets, and will be led by Mary McDowell. And the Mar- AT&T said it will channel US$1 support, across 104 countries. lucrative 800-MHz band, suitable kets unit, headed up by Niklas billion of its roughly $19 billion for LTE services. A total of 41 Savander, will be responsible 2010 capital expenditure to NSN gets O2 deal spectrum blocks were tendered, for Nokia’s go-to-market strat- expand its global network and Nokia Siemens Networks won with airwaves also offered in the egy, which includes sales and marketing activities, and global enhance services for its business a services contract to expand 1.8-GHz, 2-GHz and 2.6-GHz supply chain and sourcing op- customers. The US telco said it Telefonica O2’s mobile network frequency bands.E-Plus was the erations. While Nokia is still the plans to upgrade its networks capacity across Germany. other spectrum winner. world’s biggest handset maker and the leader in high-end devices, it is losing smartphone Spending on networks and software rising again share to Apple and other com- This chart from our September issue petitors in Europe and North 225 10 America. According to Gart- — % Growth showed spending on network and software equipment picking up this ner, Nokia’s share of all hand- n Revenue year and accelerating through 2011. sets globally fell from 36.7% in 5 Worldwide telecoms and datacom 3Q09 to 28.2% in 3Q10. Si- 150 equipment revenues totalled US$153.8 monson, who became head of billion worldwide in 2009, down 5.2% Nokia’s mobile phone division 0 from 2008, but Infonetics expects in October 2009 having pre- spending to grow to $208.3 billion in viously served as chief finan- 75 2014. The company tracked 11 major

cial officer, was made a senior -5 growth % of revenue categories of enterprise and service advisor focused on Nokia Sie- Revenue in $US billions provider equipment, with only IPTV and mens Networks until the end next-generation OSS growing in 2009. Source: Infonetics Research of this year, and will then join 0 NSN’s board. 2009 2010 2011 2012 2013 2014

22 www.totaltele.com December 2010/January 2011 timeline: Networks

France awards 3G spectrum winning licences for a total of in the 2.6-GHz band for mobile French regulator Arcep awarded US$8.23 billion (E6.5 billion). broadband services in December, two blocks of 3G frequencies to with the winners awarded SFR and Orange for a total of Sprint extends WiMAX capacity in mid-2011. E582.1 million. The auction came Sprint Nextel extended WiMAX after Iliad in January was awarded coverage and services to seven Mexico wireless auction France’s fourth 3G mobile licence. new metropolitan markets, but Mexico’s second spectrum said it did not rule out a move to auction ended with the award july/august LTE technology. of a single nationwide licence to media giant Grupo Televisa and US boost for broadband september Nextel Mexico. orange revamp Barack Obama signed a The recently appointed CEO memorandum to make 500 MHz Singapore launches NGN New fibre service in Italy of France Telecom, Stéphane of spectrum available over the Singtel launched services at Fastweb launched a symmetrical Richard (pictured), in July an- next 10 years for broadband speeds up to 200-Mbps on 100-Mbps fibre service in Italy to nounced plans for a wide- wireless services. Obama also Singapore’s national next- around 2 million households. spread restructuring of the company, pledging to recruit announced $795 million in grants generation broadband network. 10,000 employees in France to expand broadband in rural and Retail and wholesale consumer october by 2012 and increase the hard-hit communities, part of the and business services will be company’s global subscriber $7.2 billion Recovery Act. deployed on fibre infrastructure EC moves to open up NGNs base to 300 million by 2015. built by Singtel and OpenNet. The European Commission France Telecom had 183.3 Telstra agreement on NGN proposed a deadline of the end million subscribers at the end Australian incumbent Telstra NSN wins big mobile deals of 2012 for EU member states of the first quarter. The five- year plan, called Conquests struck an agreement to allow Nokia Siemens Networks won to allocate licences for mobile 2015, focuses on four key ar- state-owned broadband company a contract to supply equipment broadband services and to free eas: employee well-being, net- NBN to use its copper and cable for the new 3G network of Tata up 800-MHz digital dividend works, customers and inter- network infrastructure for the Teleservices. In July, Harbinger spectrum. And EU commissioner national development. Part of proposed nationwide fibre-to- Capital Partners awarded a US$7 Neelie Kroes commited to its aim is to restore a sense the-home network. billion (E5.5 billion) eight-year ensuring every citizen can access of recognition and responsi- contract to NSN to build its basic broadband by 2013 and bility among middle management, as well as to define ca- New submarine network wholesale LTE network. speeds of 30 Mbps by 2020. reer paths more clearly “to help Alcatel-Lucent signed a US$500 employees build bridges from E million ( 400 million) contract Tata awards 3G contract Austrian broadband spectrum very strenuous jobs to less with a consortium of 20 operators Tata Teleservices awarded Austria’s four main mobile strenuous jobs”, said Richard. to build a submarine network Huawei Technologies a contract operators won out in the auction The company has been under between South Africa and France. to provide equipment for 3G of 2.6-GHz spectrum which scrutiny following the suicides networks in five telecoms circles. raised E39.5 million. of 32 workers over the past Indian broadband auction two years. France Telecom plans to invest €2 billion in fi- Chile to auction LTE spectrum LTE network sharing India’s broadband wireless bre access in France between auction saw six companies Chile will auction off spectrum Polish mobile network operators now and 2015, providing coverage to 40% of households by International Internet traffic (peak usage) 2012. As a result it is reviewing its strategy of buying or de- Telegeography said international 100% n Intra-Asia n Trans-Pacific n Trans-Atlantic veloping exclusive content, Internet traffic globally grew 62% to and could sell its TV channels. 90% n US Latin America n Intra-European mid-year 2010, down from the 74% Since 2008 it has spent €400 80% growth recorded in 2009. Carriers made available 13.2 Terabits per million a year on content such 70% second of new international capacity to as rights to French football 60% that point, up from 9.4 Tbps in 2009. matches. But it will continue to 50% The analyst company said peak usage invest in its mobile networks in levels on intra-Asian links are 50% 40% Africa, and look to launch LTE higher than on intra-European links. “by 2012 to 2013”. Richard 30% Africa’s international Internet backbone 20% capacity increased more than 14-fold reiterated aggressive plans to

Peak usage of Internet bandwidth drive growth in emerging mar- 10% between 2006 and 2010. Source: Primetrica/Telegeography kets, particularly in Africa and 0% 2006 2007 2008 2009 2010 the Middle East.

December 2010/January 2011 www.totaltele.com 23 timeline: Networks

PTK Centertel (Orange) and P4 says it is the first significant Deutsche Telekom will also (Play) were granted permission to release of unlicensed spectrum in launch its own LTE services using deploy a combined LTE network over 20 years. 800-MHz spectrum by year end. via a joint venture company, which they will then access Bharti awards 3G contracts T-Mobile launches LTE on a wholesale basis. The new Bharti Airtel named Ericsson, T-Mobile Austria launched company will take part in the Nokia Siemens Networks and commercial LTE services in forthcoming 2.6-GHz auction. Huawei as the suppliers for its Innsbruck, just four weeks after forthcoming 3G network. the completion of the country’s Commercial LTE launches spectrum auction in September. Poland became the fourth Fibre network in Chile China in his hands country—after Sweden, Norway Telefonica Chile will spend Singapore 3G spectrum Li Yue (pictured) in August took and Uzbekistan—to launch US$2.5 billion over the next four The Singapore government over as chief executive of the commercial LTE services when years to build a nationwide fibre- will allocate 3G spectrum to world’s largest operator by subscribers, China Mobile, re- CenterNet and Mobyland to-the-home network covering Singapore Telecom, StarHub and placing Wang Jianzhou who switched on networks using the 700,000 homes. M1 after there were no other remained as chairman and ex- 1800 MHz frequency band. Soon bidders for the S$20 million slots. ecutive director. The operator’s after, US operator MetroPCS total subscribers reached 554 november million at the end of June fol- launched services in Las Vegas UK 3G spectrum reversal lowing net additions of 31.76 and Dallas. BT must open fibre networks Ofcom ruled that the refarming million in the first half of the UK regulator Ofcom ruled of spectrum in the 900-MHz and year. China Mobile reported New submarine cable that BT must give competitive 1800-MHz bands for 3G services net profit of CNY57.64 billion ($8.49 billion) for the first six France Telecom and partners plan providers access to its new fibre will not impact competition, months, up from CNY55.33 to deploy a new submarine cable networks, including cable ducts reversing its previous decision. It billion in the same period last in the Indian Ocean to provide and telephone poles. could open the way for O2 and year. Revenues rose 7.9% to CNY229.82 billion from further connectivity between Vodafone to use the spectrum, in CNY212.91 billion, although Africa, Asia and Europe. French network sharing line with European legislation. ARPU slipped to CNY72 from Nokia Siemens Networks will CNY75 a year earlier. China Telekom Austria picks NSN upgrade and expand French Denmark awards 3G spectrum Mobile said it has now completed construction of the third Telekom Austria selected Nokia mobile operator SFR’s HSPA+ 3 Denmark was awarded licences phase of its TD-SCDMA 3G Siemens Networks to develop radio access network, which in the 900-MHz and 1800-MHz network and had deployed LTE-ready mobile broadband will then be available for use by bands for DKK 12 million (about 115,000 base stations across infrastructure and network subscribers of rival operators E1.6 million). 238 cities by the end of June; it is targeting 200,000 base sta- performance systems. Orange and Bouygues Telecom. tions by the end of the year. It Telecom NZ bids for NGN had signed up 10.46 million 3G US white space proposal German network sharing Telecom New Zealand submitted customers by the end of June, The FCC confirmed it will free Mobile operators Deutsche a new plan to become part of the and had 2.7 million users of its mobile payment/wallet service up vacant TV airwaves known Telekom, Vodafone Germany country’s Ultra-Fast Broadband by then, just over a month after as white spaces for mobile and O2 Germany entered talks initiative, proposing operational launch. The company’s mobile broadband services. The regulator to roll out a joint LTE network. and structural separation. reading service, also launched in May, had more than six million paying users by the end of Available colocation space in key cities June, while its music download service had over 3.2 mil- Average space available Data from TeleGeography in our lion users and its mobile video 0% 10% 20% 30% 40% 50% 60% 70% October issue showed that colocation service over six million. “De- Amsterdam service providers are struggling to keep spite rising competition we are up with demand. Despite significant Chicago confident that our net profit will new construction, some 41% of sites Frankfurt surveyed by TeleGeography were at continue to grow as growth in valued-added services such Montreal least 80% full by mid-2010, up from 34% of sites a year earlier. Operators as mobile reading and music New York added 1.5 million square feet of new outpace the decline in voice tariffs,” Li said. In March Chi- Los Angeles colocation space and 124 megawatts of power in the year to mid-2010, but na Mobile bought a 20% stake San Francisco some key cities were showing less in Shanghai Pudong Develop- Washington than 25% available space. ment Bank to continue its di- Source: TeleGeography versification into mobile finan- London cial services. — Average Range | Average

24 www.totaltele.com December 2010/January 2011 timeline: people

Telstra reshuffle chief Matt Crockett announced april Telstra announced a reshuffle his resignation. of its executive team. Among Vodafone job cuts the changes, Stuart Lee was july/august Vodafone announced it will cut promoted to group managing 375 jobs from its UK workforce director and Gordon Ballantyne New head for Tele2 of around 9,000. The mobile joined from HP as group MD for Swedish operator Tele2 said Mats operator said the cuts will come Consumer and Channels. Granryd would become its new across a number of locations, chief executive from the start primarily in back office functions. may of September, replacing Harri Koponen who left in February. nokia refocuses MTN CEO to step down Telecom Italia job cuts It was all change at the top Phuthuma Nhleko will step down Telecom Italia outlined plans for Vimpelcom chiefs ousted at Nokia in September as the Finnish handset maker first an- as president and CEO of South additional job cuts. The company Vimpelcom’s joint chief nounced the departure of CEO Africa’s MTN Group in March said it has cut 2,300 jobs in 2009- executives Boris Nemsic and Olli-Pekka Kallasvuo and then 2011, after nine years in the role. 10 and expects another 4,522 jobs Alexander Torbakhov left the cleared the way for chairman to go by the end of 2012. The company and were replaced by and former chief executive, Jorma Ollila, to leave in 2012. New Vodafone R&D head move is part of its strategy to former chief Alexander Izsoimov. But that was not the end of the Vodafone appointed Intel reduce costs by E2.7 billion in the Vimpelcom in April merged management reorganisation. executive Siavash Alamouti 2010-2012 period. with Ukraine’s Kyivstar where Nokia, which has been losing as its new group research and Izsoimov was latterly CEO. ground in the high-end handset market, a few days lat- development director. Alamouti FT international head to leave er announced the resignation succeeds Mike Walker, who France Telecom said its deputy New Rostelecom CEO of Anssi Vanjoki, the head of recently retired after 25 years chief executive officer in charge Russian state-owned operator its Mobile Solutions unit, cre- with Vodafone and Racal. of international activities, Jean- Rostelecom appointed Alexander ated in May to focus on the smartphone segment. Vanjoki Yves Larrouturou, will leave. Provotorov as chief executive, will see out his six-month no- Nortel gets new CFO moving from his position as tice period. In contrast, Kallas- Nortel’s chief financial officer Omnifone gets new CEO first deputy general director vuo left almost at once, on 20 Pavi Binning left to be replaced UK mobile music startup at national telecoms holding September, and was replaced by Stephen Elop (pictured), by John Doolittle. Binning Omnifone appointed former company Svyazinvest. previously head of Microsoft’s was also the company’s chief BSkyB executive Jeff Hughes as its Business Division. Nokia cited restructuring officer, a post that new chief executive. Zain restructures managers Elop’s background in the software industry, knowledge of will not be filled. Zain restructured its the US market and experience june management team, with, of change management as im- Siemens reduces IT workforce Barrak Al Sabeeh becoming portant assets. Elop joined Mi- Siemens confirmed a plan to Microsoft devices shake-up COO, Haitham Al Khaled chief crosoft in January 2008, and was formerly chief operating restructure its IT operations, SIS, Robbie Bach retired from head technology officer and Ossama officer at Juniper Networks and cut 4,200 jobs worldwide by of Microsoft’s Entertainment and Matta chief financial officer. and also held senior positions the end of 2011. The move will Devices division after 22 years at Adobe Systems and Macro- cost between E400 million and at the company. Andy Lees now Eircom prepares for cuts media. Another key Nokia ex- E ecutive, Ari Jaaksi, who helped 500 million. heads the mobile unit, while CEO Republic of Ireland incumbent develop the MeeGo operating Steve Ballmer fronts the division. Eircom said it is preparing a system, stepped down in early NSN job cuts company restructuring that could October. Nokia’s Symbian op- Nokia Siemens Networks said Yell departures see up to 2,000 redundancies, erating system took a 36.6% share of all smartphones sold it will cut 450 jobs in Finland, Yell Group announced that on top of the 1,500 cuts already worldwide in the third quarter, through voluntary redundancies, both CEO John Condron and made since March 2009. according to Gartner, but that as part of previously announced CFO John Davis are to leave the was down from a 44.6% share restructuring measures. company next year. Telkom SA gets new chief in the second quarter of 2009. Kallasvuo, who became CEO Jeffrey Hedberg was appointed of Nokia in 2006, will contin- New BT Innovate CEO NZ Telecom CFO leaves acting CEO of South Africa’s ue in a non-executive capac- BT appointed Clive Selley as Chief financial officer Russ Telkom SA, in place of Reuben ity to chair the board of Nokia CEO of the Innovate and Design Houlden left New Zealand September who retires in Siemens Networks. He will receive a severance payment of division, which oversees network Telecom after two years in the November. Peter Nelson also E4.6 million as well as the mar- and platform development, role. His departure came a month said he would resign from chief ket value of 100,000 shares. technology strategy and research. after wholesale and international financial officer in October.

December 2010/January 2011 www.totaltele.com 25 timeline: people

september october november

Hurd not seen any more Hurd surfaces at Oracle Nokia job cuts Hewlett-Packard chairman Former HP chief executive, Nokia’s new CEO Stephen Elop and chief executive Mark Hurd Mark Hurd, was appointed a said the company will cut 1,800 resigned in the wake of a sexual co-president of Oracle. HP then jobs. The changes will come at harassment investigation that appointed Leo Apotheker, the the Symbian smartphones unit, revealed he filed inaccurate former chief executive of SAP, as and also in services. expense reports. Hurd’s severance its new CEO. package was reported to be worth KPN names new CEO SYMBIAN FORTUNES more than US$35 million. Everything Everywhere cuts Eelco Blok will become KPN’s The development of the Sym- Everything Everywhere next CEO and chairman when bian operating system was taken back in-house by Nokia Change at top for Safaricom announced plans to cut 1,200 Ad Scheepbouwer retires next in November, a month after Kenyan operator Safaricom said jobs, amounting to 7.5% of its April. Blok has been on KPN’s Symbian Foundation execu- CEO Michael Joseph would 16,000-strong workforce. management board since 2004 tive director, Lee Williams (pic- retire in November after 10 years and has worked there since 1983. tured), resigned and was replaced by CFO Tim Holbrow. leading the company. He will be Verizon Wireless new CFO David Wood, a co-founder of replaced by Bob Collymore, who Verizon Wireless appointed T-Mobile USA changes Symbian, left the Foundation a has been on the Safaricom board Andrew Davies to replace John Philipp Humm took over as CEO year earlier. Williams was ap- for more than four years. Townsend as chief financial of T-Mobile USA in October, pointed executive director in October 2008, a few months officer. Davies had been CFO of five months ahead of schedule, after handset maker Nokia Sprint loses heads Vodafone’s Indian operations. replacing Robert Dotson. Further announced plans to take full Sprint Nextel’s senior VP of changes see CTO Cole Brodman control of Symbian and turn it into the open source Sym- product development, Kevin KDDI head to be replaced becoming chief marketing officer, bian Foundation. His resig- Packingham, left the company in KDDI will replace its top and chief network officer, Neville nation was the latest blow to August. Dan Schulman, who ran executive, senior vice president Ray, will become CTO. the Foundation as it struggled Sprint’s prepaid business, also left Takashi Tanaka, who will move to to regain the initiative from smartphone rivals Apple and in August to take up a position at the role of president at the start PTC gets new CEO RIM and in the face of strong American Express. of December. Polish mobile operator PTC growth of Google’s Android named Miroslav Rakowski as its operating system. His depar- iPhone engineering departure Verizon CFO retiring new CEO from January, replacing ture came less than a month after Sony Ericsson confirmed Mark Papermaster, Apple’s Verizon chief financial officer Klaus Hartmann. Rakowski is it would not develop handsets senior vice president for iPhone John Killian will retire at the end currently chief sales officer and based on the new version of engineering, left the company of this year after 31 years with director for CRM at T-Mobile the operating system, Sym- shortly after it suffered complaints the company. Killian was also Czech Republic. bian 3, mirroring Samsung’s decision to abandon the plat- over reception issues related to its president of Verizon Business, form. Both handset makers new antenna design. created after Verizon’s acquisition OTE appoints new leader were key financial contributors of the former MCI in 2006. Michael Tsamaz was appointed to the project. Symbian is still Turk Telekom new CEOs CEO and chairman of Greek the leading smartphone operating system, but its market Turk Telekom appointed Hakam Russian resignation operator OTE, moving from his share declined to 36.6% in the Kanafani as Group CEO from his Evgeniy Yurchenko, the CEO position as head of OTE’s mobile third quarter from 44.6% in the position as Oger Telecom’s chief of Svyazinvest, resigned over arm Cosmote. same period of 2009, according to Gartner. Android’s share business development & synergy a strategy disagreement. was 25.5% in Q3. Strategy officer, and promoted K. Gokhan Svyazinvest is in the process of ITU reappoints head Analytics, says Nokia’s smart- Bozkurt to CEO of Turk Telekom merging national fixed operator Hamadoun Touré of Mali phone market share slipped from his position as VP of human Rostelecom with its fixed and has been elected as secretary to a low of 34.4% globally in Q3, even though it shipped a resources at the operator. mobile regional operators. general of the International record 26.5 million units. Ap- Telecommunication Union (ITU) ple and RIM gained ground, Singtel international head LG replaces CEO for a second four-year term. shipping 14.1 million and 12.4 Singapore Telecom appointed LG announced the resignation of million units respectively. The Symbian Foundation will now Hui Weng Cheong as CEO its CEO Nam Young, who will be Telstra job cuts downsize its operations, and International from December, replaced by Koo Bon Joon, the Telstra said it will cut 950 jobs, by April 2011 will be governed succeeding Lim Chuan Poh who is younger brother of LG chairman mostly in executive and middle by a small group of directors. retiring from the company. Koo Bon Moo. management areas.

26 www.totaltele.com December 2010/January 2011 PRImE numBERs cOntacts

EdItORIal IPtv suBs Pass 40 mIllIOn 4th Floor, Welken House, 10-11 charterhouse Square, London Ec1M 6EH Global IPTV subscribers reached 40.5 million at the $55.5 billion +44 (0)20 7608 7030; [email protected] end of September, says TeleGeography, up 8% from Telco TV revenues from all Q2 and 37% in the past year. France accounts for pay-tv services globally in 3Q10, tOtal tElEcOm Plus up 9% from 3Q09. More than Ian Kemp [email protected] 24% of all subscribers, followed by the US and China Editor +44 (0)1626 835 703 (both 16%), South Korea (8%), Japan (4%), and half of those revenues come michelle young [email protected] art Editor Germany and Hong Kong (both 3%). Among from Western Europe operators China Telecom leads the way with 5.3 (ABI Research) tOtal tElEcOm mary lennighan [email protected] million subscribers, followed by Iliad with 4.0 million, Editor +44 (0)20 7608 7069 Verizon 3.3m, France Telecom 2.8m, AT&T 2.7m, network equipment surge nick Wood [email protected] Korea Telecom 1.8m and SFR 2.5m. But IPTV still assistant Editor +44 (0)20 7608 7046 The service provider router and switch tim charters [email protected] accounts for fewer than 6% of all pay-TV subscribers. market—including IP edge routers, IP Web Developer +44 (0)20 7608 7073 core routers, carrier Ethernet switches CONTRIBUTING EDITORS IPTV Growth and Split by country, Q3 2010 and aTM switches—grew 5% from the Roy Rubenstein [email protected] 40 n Others second quarter to reach $3.3 billion Omer, Israel 35 n Hong Kong Ingrid lunden [email protected] worldwide in the third quarter, says London n 30 Germany Infonetics. In another report the analyst Ken Wieland [email protected] n Japan 25 company says the worldwide optical London n South Korea craig stephen [email protected] 20 n china network hardware market increased Hong Kong +852 9048 1124 Jagdish Rattanani [email protected] 15 n US 6.2% to $3.23 billion quarter-on-quar-

Subscribers (m) Mumbai +91 22 287 55087 n France ter, led by healthy WDM equipment 10 sales; optical spending in north advERtIsInG 5 HEaD OFFIcE, LOnDOn, UK america and the EMEa region jumped nick carter [email protected] 0 2004 2005 2006 2007 2008 2009 3Q10 16%. The ROaDM equipment segment Sales Manager +44 (0)20 7608 7065 Gordon White [email protected] Source: TeleGeography surged 25% quarter-over-quarter. Sales Manager +44 (0)20 7608 7041 3G share of global wireless markets UnITED STaTES anD canaDa mobile games booming KcS International Q3 2010 subscribers (m) % of total T +1 717 397 7100 F +1 717 397 7800 Juniper Research forecasts total Karen c smith-Kernc – East [email protected] Region total 3G Others 3G Others end-user revenues from mobile alan Kernc – West & canada [email protected] africa 513 30 483 6% 94% games will surpass uS$11 billion JaPan annually by 2015, up from $6 Asia & Pacifi c 2,488 267 2,221 11% 89% Hiroko Kujime [email protected] Eastern Europe 453 42 412 9% 91% Pacific Business T +81-3-3661-6138 F billion in 2009. The company also +81-3-3661-6139 says revenues from in-game Latin america 549 42 507 8% 92% aDVERTISInG PRODUcTIOn purchases will overtake traditional Middle East 279 35 244 12% 88% Please forward all advertising material directly to: pay-per-download revenues from US & canada 314 97 217 31% 69% [email protected] +44 (0)20 7827 4151 mobile games by 2013. In another Western Europe 521 183 338 35% 65% maRKEtInG report, Juniper forecasts global total 5,116 694 4,422 14% 86% tally Judge [email protected] advertising spend on mobile Marketing Manager +44 (0)20 7608 7076 Source: TeleGeography charles Georgiou [email protected] delivery channels will exceed Marketing Executive +44 (0)20 7608 7071 uS$11 billion by 2015, up from $3.1 billion this year, driven by smart- suBscRIPtIOn/custOmER sERvIcEs $100 billion aleisha Bryant [email protected] phones with location-aware and LTE service revenues worldwide by 2014 customer Services Executive +44 (0) 7608 7042 or subscribe online at: www.subscription.co.uk/totaltelecom augmented reality capabilities. (Juniper Research) ManaGEMEnT Rob chambers [email protected] ltE forecasts rise Publisher +44 (0)20 7608 7077 Mobile handset sales, 3Q10 (thousands) Greg Hitchen [email protected] Infonetics has increased its forecast chief Executive Officer 3Q10 3Q10 market 3Q09 3Q09 market for the worldwide LTE infrastructure company units share (%) units share (%) market, expecting it to grow roughly OtHER PuBlIcatIOns nokia 117,461.0 28.2 113,466.2 36.7 Online: www.totaltele.com ten-fold from 2010 to 2014, to reach television: www.totaltele.tv Samsung 71,671.8 17.2 60,627.7 19.6 US$11.5 billion. The analyst company tOtal tElEcOm EvEnts LG 27,478.7 6.6 31,901.4 10.3 also increased its LTE subscriber World communication awards apple 13,484.4 3.2 7,040.4 2.3 forecast, and now estimates 165 www.worldcommsawards.com World vendor awards Research in Motion 11,908.3 2.9 8,522.7 2.8 million worldwide by 2014. By the end www.worldvendorawards.com Sony Ericsson 10,346.5 2.5 13,409.5 4.3 of 2010, a dozen LTE networks are World telecoms council expected to go live (see Timeline), and www.worldtelecomscouncil.com Motorola 8,961.4 2.1 13,912.8 4.5 there are currently over 100 commit- Total Telecom Plus is published by HTc 6,494.3 1.6 2,659.5 0.9 ments by service providers to deploy ZTE 6,003.6 1.4 4,143.7 1.3 LTE networks, says Infonetics. Juniper Huawei 5,478.1 1.3 3,339.7 1.1 Research in a separate report says Others 137,797.6 33.0 49,871.1 16.1 revenues from consumer users will © 2010. all rights reserved. remain under half of total LTE total 417,085.7 100.0 308,894.7 100.0 Terrapinn Holdings Ltd registered offi ce: Source: Gartner revenues until at least 2015. 4th Floor Welken House, 10-11 charterhouse Square, London Ec1M 6EH

December 2010/January 2011 www.totaltele.com 27