Volume 05 _ Issue 11 _ November 2014 SAMENA TRENDS EXCLUSIVELY FOR SAMENA TELECOMMUNICATIONS COUNCIL'S MEMBERS BUILDING DIGITAL ECONOMIES

A SAMENA Telecommunications Council Newsletter

Articles Open Digital Roadmap for Growth and Innovation Page 54 ICT Trends in Jordan Page 24

Digital Innovation for Market Leaders: Disruption minus the disruption Page 49

Start with the data, not the problem Page 56

Talal Said Marhoon Al Mamari Chief Executive Officer Omantel

Building Customer Loyalty through VAS

www.samenacouncil.org SAMENA CONTENTS VOLUME _ 05 _ISSUE _ 11_nov_2014 TRENDS

The SAMENA TRENDS newsletter is REGIONAL & MEMBERS wholly owned and operated by The UPDATES SAMENA Telecommunications Council 09. Regional & Members News FZ, LLC (SAMENA). Information in the newsletter is not intended as professional services advice, and SAMENA Council disclaims any liability for use of specific REGULATORY & POLICY information or results thereof. Articles UPDATES and information contained in this 18. Regulatory News publication are the copyright of SAMENA Telecommunications Council, (unless A Snapshot of Regulatory Activities otherwise noted, described or stated) in SAMENA Region and cannot be reproduced, copied or printed in any form without the express written permission of the publisher. WHOLESALE UPDATES The SAMENA Council does not necessar- 43. Wholesale News ily endorse, support, sanction, encour- age, verify or agree with the content, comments, opinions or statements made in The SAMENA TRENDS by any entity TECHNOLOGY UPDATES or entities. Information, products and 51. Technology News services offered, sold or placed in the newsletter by other than The SAMENA 49. Digital Innovation for Market Leaders: Council belong to the respective entity EDITORIAL Disruption minus the disruption or entities and are not representative of The SAMENA Council. The SAMENA 03. Council hereby expressly disclaims any 54. Open Digital Roadmap for Growth and all warranties, expressed and im- and Innovation plied, including but not limited to any warranties of accuracy, reliability, mer- 56. Start with the data, not the problem chantability or fitness for a particular REGIONAL purpose by any entity or entities offer- ing information, products and services in this newsletter. The user agrees that The PERFORMANCE SATELLITE UPDATES SAMENA Council is not responsible, and 57. Satellite News shall have no liability to such user, with The Networked Readiness Index respect to any information, product or service offered by any entity or entities 2014 Regional Rank of SAMENA in this newsletter. The SAMENA Coun- Countries cil’s only liability in the event of errors shall be the correction or removal of the 07. erroneous information after verification.

Editor-in-Chief Bocar A. BA

Contributing Editors Zakir Syed Awais Amjad Javaid Akhtar Malik

Contributing Member Strategy& Sudatel Group Turk Telekom Vodafone Qatar

Publisher SAMENA Telecommunications Council 04 60. Subscriptions [email protected]

Advertising EXCLUSIVE SAMENA [email protected]

Legal Issues or Concerns INTERVIEW ACTIVITY [email protected]

SAMENA TRENDS Talal Said Marhoon Al Mamari #304, Alfa Building, Knowledge Village Chief Executive Officer PO Box: 502544, Dubai, United Arab Omantel Emirates Tel: +971.4.364.2700 © 2014 - All rights reserved. SAMENA TRENDS is a trademark of SAMENA Telecommunications Council. EDITORIAL

SAMENA TRENDS _ NOV_2014

Building Customer Loyalty through VAS

The ICT industry in the SAMENA region is Mobile and fixed broadband networks as expanding at an exceptional pace, driven well as data centers in which telco’s in the progressively by the accessibility of mass region have great abilities will have a key market smartphones and tablets with low role in the shift to the cloud. The brand costs. Mobile data traffic and network value and end user ownership puts telcos capacity in SAMENA is likely to propagate in a good spot to shift their profits models the fastest in the world in the forthcoming into the digital services terrain. On the years. Therefore, data services will have other hand, there is a constant research by a vital role to play among operators’ media organizations to observe how they revenues. Prominent telcos in the region can get a larger chunk of the revenue pie. are already gearing up to transmute For example, many news companies are their strategies from voice-centric to looking to develop their own SMS delivery data-centric. They recognize the fact systems to sidestep third-parties as well as that, efficiently dealing with operating networks. margins and increase data profitability, they have to focus across the value chain Voice is a traditional, lucrative and from volume-based to value-based data low-risk business. End user trends are offerings. In this perspective, capitalizing foreseeable and market breakdown is on cloud services becomes more vital. simple. For many years, telcos did great This is an untouched area for many by providing few good voice plans and telcos. Practices from advanced markets, a handful of value added services, while though, indicate that in the “data era,” the data business is a whole lot different rivalry comes not just from other telcos, game. Consumers of broadband-enabled but largely from over-the-top content smart phones, tabs and other devices get (OTT) and other renowned Internet-based extensive access to a diverse range of players. To defend their market position online services and mobile apps. In the and prospects in the future, telcos in “data era,” reproducing voice market plans Africa should further enhance their does not work anymore. business strategies and increase familiarity about the cloud business, their end user To offer distinguishing customer market offerings and services based experience via personalized cloud on a profound study of their end users’ offerings and to generate new data requirements, expectancies and usage revenues, telcos have to first of all have patterns. to know their customers well than in the “voice era.”

Yours truly,

Bocar A. BA Chief Executive Officer SAMENA Telecommunications Council

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Mr. Talal Said Al Mamari is the Chief Q. What are some of Executive Officer of Omantel since 29th the most critical factors June 2014. He has 22 years of experience in telecom sector working for Omantel. that define the success of Talal Said Marhoon Prior to his appointment as CEO, he held fixed line operators such Al Mamari several leadership positions including as Omantel, particularly his last stint as Chief Financial Officer of with the onslaught of CEO Omantel. OTT services and with Omantel Talal Al Mamari has had played digital service adoption instrumental role in different initiatives levels rising? and projects carried out by the A. As we all know, Oman Company including the IPO in 2005, the is relatively large country with restructuring of Omantel by bringing the a small population of around 4 mobile and fixed operations together and million, which results in a number later the full legal merger of Oman Mobile of challenges in rolling out with Omantel. He sits on the boards of affordable high-quality services several companies and investment funds available for all. Omantel never including Worldcall Telecom, Infoline, stopped investing in fixed line United Securities Investment Fund and business, as we believe that it is the Al Roya Fund (Al Khair Investment Fund most important infrastructures to compatible with Sharia). provide, not only for fixed voice, but more today importantly for He holds a degree in Business high-speed data services. In Administration from Duquesne University, fact, Omantel had for years one Pittsburgh – Pennsylvania. of the highest capex to revenue ratios and today we can see the result of that investment strategy in a world-class standard fixed, mobile and international network. With regards to our fixed line

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considerable support to many youth network. Omantel is honored that activities, is a role model and a leader TSIC selects Omantel as a partner in social responsibility. to host their first PoP in the region. Partnering with Omantel is a natural The award crowns the efforts made step for TSIC given Oman’s strategic by Omantel over the past few years location as the gateway landing and our support to the initiatives point for multiple international made to achieve sustainable cable systems coming into the development. Sports are one of the region. Having TSIC as a major key focus areas in our sustainability international voice aggregator and strategy. one of the top worldwide providers of Internet backbone hosted with Omantel has a clear-cut and us gives us a position as the true transparent strategy to serve link between the East and the West the community. This has been whereas TSIC partnership with us network, we have invested heavily in evident when we partnered with provides them with access to large enhancing this network and now we Oman Football Association (OFA) untapped markets such as Iran, are able to provide up to 24 Mbps to sponsor the premier league Yemen and Pakistan, countries that using ADSL and 60 Mbps through (Omantel League) throughout the we have extensive connectivity with. VDSL technology. We have also past six years. We also sponsored the It has expanded our visibility and deployed FTTH networks in various Omani Football National Team that positioned Omantel as the go-to parts of the country and all our new won the first Gulf Cup in the history provider for international carriers deployments in new areas are fiber of the Omani sports and partnered and service providers seeking to do based. in sponsoring the 2nd Asian Beach business in the Middle East. Offering Game and many other sports events’. services in the region in partnership We understand that the content with a global top Tier 1 carrier has of is increasingly getting richer and course given us a competitive edge therefore we are very focused on Q. How bright does in the region. providing high-speed with lowest the future appear for latency to our customers, both at international data roaming Q. Omantel was retail and wholesale levels. Instead in the Middle East? of OTT players being a threat, they selected as one of the Top A. International data roaming are more of a partner with Omantel is on the rise, and is increasing Three Wholesale Operators whereas the OTT players, and global exponentially. The trend in the content companies, are utilizing the in the World. What were the Middle East and globally is a robust international connectivity key strategic factors behind cannibalization of the SMS business infrastructure of Omantel, and the by data, and social networking this success? geographical location of Oman, to A. The recent international applications are paving the road for serve Oman as well as Middle-East recognition and success of Omantel such cannibalization. In addition, with region by hosting their content and Wholesale can be summarized in the launch of LTE, locally and during applications with Omantel. This three important factors: roaming, we see further uptake by results in substantial improvements our customers in their data usage. in the Internet quality and speed 1. Proactive, Transparent, With the upcoming Voice over LTE for our customers, domestically and Efficient and a Positive Force in the (VoLTE) we realize that the voice internationally. We believe that our Marketplace – Thanks to the proactive business would also slowly turn into strategy of being proactive with our support to the interconnectivity and data in many countries, thus, the customers and partners is helping development of the region while data business is certainly what the us not only in reviving the fixed delivering double-digit growth in future will be dependent on. infrastructure but it has also created wholesale revenues. This has been one of the most growing areas for achieved by capitalizing on Oman’s Omantel. Q. Please tell us about geographic location, political Point of Presence (PoP) stability and openness to develop Q. Omantel received deal between Omantel and one of the most connected and the Excellence award from efficient wholesale businesses in the TeliaSonera International world. From this strategic location, Emir of Kuwait. What were Carrier. What value has as the gateway to the Middle East, the core areas that Omantel Omantel been able to Omantel Wholesale is driving the focused on and which realize through this development of communications infrastructure across the region enabled the organization in partnership? and beyond in a transparent and achieving this recognition A. Ranked one of the top open manner. One example on the across the border? two global IP backbone providers national market is our strategic by Internet intelligence authority A. Omantel received approach towards MVNOs where Renesys, TeliaSonera International the award as a key partner in we have actively worked with our Carrier (TSIC) owns and operates supporting youth and sports in the partners Renna and Friendi to create an award-winning global fiber Sultanate. Omantel, which provides even further choice and service in

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SAMENA TRENDS _ NOV_2014 the market, and at the same time A. This is the third time in around the world to create a new grown our network market share the last five years, Omantel has high capacity cable system linking and, of course, our revenues. been voted as the best company Hong Kong to France via Southeast for Investor Relations in Oman. The Asia, the Middle East and Europe. 2. Connecting Global Hubs awards were presented to Omantel With no new cable systems linking with the Lowest Latency – Omantel at the ME-IR Society Annual these regions together in nearly 10 has used its position as the bridge Conference. The awards recognize years, the AAE-1 will deliver much between East and West to deliver the the efforts of those regional needed capacity and diversity for lowest latency service from Frankfurt companies and IR professionals who operators around the world. to Singapore. It has invested in the play a critical role in developing best operation and development of both Investor Relations practices across AAE-1 will be a strong complement the Bay of Bengal Gateway (BBG) the Middle East. to our BBG cable that is the first and Europe-Persia Express Gateway The Finalists for the award were cable where the main trunk is (EPEG). Together these cable systems selected using feedback from a directly between Singapore and the offer the lowest latency ever achieved Thomson Reuters Extel Survey, which Middle East, main landing in Oman, between the two global hubs with gathered votes from 336 individuals resulting in RTD latency of less than RTD latency of 160 milliseconds, from 139 organizations, based in 68 milliseconds. which is unchallenged. In addition, the Middle East, United States, the these systems give the Middle East UK and continental Europe. The We are also in the process of and Asia much needed diversity, individuals include sell-side analysts expanding our connectivity to eastern which guarantees the reliability and covering stocks in the region and Africa, in addition to increasing our resiliency of Omantel’s network buy-side analysts who invest in the capacity between our PoPs in Europe services. These cable systems give region. over to North America, and between Omantel’s customers connectivity Asia and North America. This will from Frankfurt to Singapore without Omantel Investor Relations program enable us to have ample capacity passing through Egypt or the is built on ‘Trust’ and ‘Transparency’ for our customers, domestic and Singapore Strait. values of the company. Omantel international, and a reach around management strives to continuously the globe with redundant access 3. First Landing Party in raise disclosure and investor and connectivity to not only the Europe from the GCC – Omantel communication standards to the major Internet and traffic exchange was able to get the trust of the 16 levels required by local, regional hubs of the world, but also the most other parties of the Asia Africa and global investors. This award important global business hubs. Europe-1 (AAE-1) cable to land the recognizes the leadership position cable in Europe which is a crucial of Omantel in the field of Investor Q. How do you view the landing in the business case of all Relations in the Omani market and the investors. Omantel could see it complements recent initiatives current wholesale market, that there was an opportunity to undertaken by the company such as keeping in view the ever bring its open and neutral business obtaining high Corporate Rating by rising international traffic as model to landing station facilities two of the largest credit agencies in well as the growing number in Europe and give operators new the world (S&P and Moody’s). choice and competitive pricing when of roaming agreements? A. Omantel has surpassed connecting to other undersea cables. Q. Are there any new Traditionally, dominant players in the more than 1,300 roaming agreements market are able to charge high prices investments that Omantel with operators in 199 countries for backhaul and interconnection is carrying out with regards and will continue to grow further to undersea cable landing stations to international capacity its offering across all services and agreements from pre-paid to LTE. that operators have no choice but enhancements, to facilitate to pay. For Omantel, this was a case Wholesale market is under pressure of seeing an opportunity to open both domestic and transit and with the upcoming potential up a European market with new traffic? GCC roaming regulation, the competition and ensure the success A. Despite being one of the pressure will further increase. Hence, of the AAE-1 cable. most well connected carriers in the a balance between the wholesale Middle East, we are continuously and retail revenues will have to strike. We believe that with the uptake of Q. How has Omantel investing to expand our international network, and our facilities, making prepaid as well as LTE data roaming, strived to maintain the us even more attractive as preferred and with the reduction of wholesale position of a Best Company partner for the region. More rates, a drastic increase in traffic will for Investor Relations; a connectivity and more partners occur that will compensate for the decrease in rates. position that has been create numerous spin-off effects that accelerate an already virtuous cycle awarded by Annual Middle for Omantel. One very exciting new East Investor Relations for investment is the AAE-1 cable which three years in Oman? is going to be one of the largest cable systems in the world and brings together 17 operators from

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The Networked Readiness Index 2014 Regional Rank of SAMENA Countries

Researchers Note: Network Readiness Index measures the propensity for countries to exploit the opportunities offered by information and communications technology. The NRI seeks to better comprehend the impact of ICT on the competitiveness of nations. It is composite of three components: the environment for ICT offered by a given country or community (market, political and regulatory, infrastructure environment), the readi- ness of the community’s key stakeholders (individuals, businesses, and governments) to use ICT, and finally the usage of ICT amongst these stakeholders. Data for Afghanistan, Iran Iraq, Palestine, Sudan and Syria is not available.

Image Source: SAMENA Telecommunications Council Data Source: World Economic Forum

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The Networked Readiness Index 2014 Global Rank of SAMENA Countries

Researchers Note: Data has been extracted via The Global Information Technology Report 2014 by World Economic Forum and analyzed by SAMENA Council. The Network Readiness Index (NRI) is valued between 1 to 7 with 1 being worst and 7 being best. Within the SAMENA region Qatar, UAE and Bahrain are the highest ranked whereas Yemen, Libya Algeria are the lowest ranked countries with respect to Network Readiness Index.

Image Source: SAMENA Telecommunications Council Data Source: World Economic Forum

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MEMBERS NEWS

Dubai Tram to have du WiFi as the Smart City Official WiFi Provider, through which the company is expanding connection for commuters its existing WiFi coverage in public areas Telecom provider du will offer WiFi to give the Dubai community a seamless connectivity on the newly-launched connectivity experience, with one login Dubai Tram service. As the Smart City and one portal in all public places. Official WiFi proffered in Dubai, du’s provision of broadband on Dubai Tram is yet another step towards realizing the PTCL, CAA sign nationwide Smart City future envisioned by the UAE’s online connectivity leadership, and falls under the company’s WiFi UAE initiative. Also Read: Dubai agreement Tram has commuters excited Osman Pakistan Telecommunication Company MEMBERS Sultan, CEO, du, said: “On the occasion Limited (PTCL), the largest Information of the opening of the Dubai Tram, we Communication Technology (ICT) UPDATES would like to congratulate the leaders of services provider in the country, has the UAE for their visionary achievements, inked an agreement with Pakistan Civil and the RTA for the implementation of Aviation Authority (PCAA) to provide ICT this landmark development. We join services, as managed model nationwide. the UAE’s residents in celebrating this Kamal Ahmed, Chief Digital Services newest addition to the strong Dubai Officer, PTCL and Air Vice Marshal Khawar infrastructure, and are exceptionally Hussain, Deputy Director General, PCAA, proud to be supporting connectivity signed the agreement for establishment as the exclusive provider of WiFi to all of the state-of-the-art communication Dubai Tram commuters.” Commuters can system at Civil Aviation headquarters enjoy complimentary WiFi by following in Karachi. The project will facilitate the simple steps to log in to the service. Air Traffic Controllers in transmitting Full details will be available through and receiving data in real time over the a landing page that is automatically redundant last mile connectivity for opened upon connection. On the special PCAA radar sites and airports in a faster occasion of the inauguration, du will offer and reliable manner. The implementation complimentary high speed broadband of new system will also help in enhancing on the Dubai Tram from November 12- audio communication between Air Traffic 13. WiFi service will be rolled-out across Controllers and Pilots in a manner that all the entire length of the Dubai Tram the communication will take place in real network in phases. Recently, du was time without any distortion. The setup announced by Dubai Smart Government will provide an efficient, scalable, reliable

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SAMENA TRENDS _ NOV_2014 SAMENA TRENDS _ NOV_2014 communication system to meet all the Etisalat reinforces the service to customers in the UAE operational and business requirements depending on handsets availability. of Civil Aviation Authority. Air Vice technology leadership VoLTE will allow customers to use Marshal Khawar Hussain, Deputy DG with network upgrades 4G LTE technology for both data and PCAA said at the occasion, “the new voice services on a single device. In system will not only make Pakistan and expansions support to the UAE government’s Air Space more secure and safe, but it Etisalat announced today technological SMART initiatives, Etisalat will deliver will also help in setting the benchmark upgrades and expansions in its the needed solutions on its vast fiber by having state-of-the-art technology networks, reinforcing its position and cellular 3G and 4G LTE capabilities in place”. Kamal Ahmed, Chief as the leading telecommunications as well as in-depth machine-to- Digital Service Officer, PTCL while service provider in the region. Major machine (M2M) experience. As commenting at the signing ceremony enhancements in 4G LTE network the company undertakes network said, “We are delighted to partner with include enhancing of Etisalat’s indoor development projects, another major Civil Aviation Authority and would coverage to improve customer focus area for Etisalat is delivering like to appreciate CAA for its trust in experience. Etisalat’s 4G network on its promise to reduce carbon PTCL’s sophisticated ICT infrastructure extensively covers 88 percent of the footprint in the UAE. Among several and services. PTCL possesses full country’s populated areas. During recent initiatives undertaken by the capacity to deliver such a strategic and 2014, a large number of base stations company to reduce environmental innovative communication system to were deployed for indoor coverage and impact of traditional energy sources, it Civil Aviation Authority. to enhance customer experience. The collaborated with the UAE’s electricity total number of indoor base stations utility providers to connect grid power Ooredoo launches has reached 6000. This will further for more than 100 mobile network boost indoor coverage capabilities in sites, which were operating on diesel unique Goodwill bundle buildings, malls, and airports. Having generators. Etisalat has also switched for customers with established the region’s most solid, to more efficient cooling systems for future-ready 3G and 4G LTE networks its mobile sites, substantially reducing disabilities to meet the growing needs of the the electrical load requirement and UAE’s highly connected environment, consumption. Furthermore, to ensure Ooredoo has introduced a new highest network efficiencies with specifically designed prepaid Mousbak the company upgraded the country’s fastest mobile Internet at speeds lower power consumption, Etisalat package called ‘Freedom’ in support has undertaken modernization of its of the Ministry of Social Development of 150Mbps, reaching 300 Mbps recently. A phased upgrade to 4G legacy network with advanced high- and the Telecommunications end equipment. Fulfilling its corporate Regulatory Authority (TRA) initiatives LTE (A) is now making way for ultra- speeds for Etisalat’s mobile customers. responsibility towards a green future to improve the quality of life for people of the UAE, Etisalat has teamed up with disabilities in the Sultanate. In line with the economic growth and demand of the UAE’s western with global and local energy efficiency Customers with an Omani Disability leaders to develop jointly renewable Card issued by the Ministry of Social regions, Etisalat’s plans of network expansion in the Western Region, are energy products and solutions that Development can enjoy reduced are also environmentally sustainable. call rates of 19 Baiza per minute for on track. Etisalat also added up on top of more than 300 base stations on Etisalat offers distinguished IPTV national voice and video calls at any services, equipped with the latest time of day, more than 50% less than the boarder and desert areas of the country to enhance its coverage. A techniques of digital broadcasting regular Mousbak tariffs, and 100 MB to enrich the viewing experience for of mobile data every month. “The per the latest UAE TRA Cellular Mobile Networks benchmarking report, Etisalat customers by broadcasting new ‘Freedom’’ packs aim to bring a high-definition through a variety of new sense of independence to people Etisalat maintained its leading position in the market in terms of quality compatible devices including smart facing challenges in their daily life. phones, tablets and PCs. As a first Designed specifically for customers of 4G LTE mobile services. To meet strong surge in data consumption in in the region, Etisalat introduced with physical disabilities and those Plug and Play to its network for the with vision and hearing impairments, the UAE, Etisalat’s fiber-to-the-home network (FTTH) has also enabled an connectivity of Customer Premises our new bundle is to help empower Equipment (CPE). This unique people with disabilities, keeping them ultrafast residential Internet network speed of up to 1Gbps. The company’s approach is a built-in auto-detection/ as connected as anybody else to auto-configuration mechanism to their families and friends and up to extensive FTTH network has helped rank UAE a global leader in terms of ensure faster service provisioning to date with the latest technology” said Etisalat Customers for CPE. In coming Feras Al Shaikh, Ooredoo Director of fiber-optic penetration, which covers more than 85 percent of the country’s months, Etisalat plans to launch its first Sales. The bundle is available across owned state-of-the-art private and all Ooredoo 29 stores countrywide. To populated areas. Having invested tens of billions in the FTTH network, public clouds for customers in the UAE activate the new service, customers are for efficiently processing data through required to bring their Disability Card Etisalat continues to develop its fiber optic infrastructure and ranked Abu a common infrastructure connected to to any Ooredoo store, where they will the Internet. receive priority service and a Customer Dhabi as the world’s first Capital to Champion will be available to assist. be fully fiber-connected. As the first in More information on the full range of the region to have successfully tested Ooredoo products and services can be Voice over LTE (VoLTE) and enhanced found online by visiting the Ooredoo Single Radio Call Continuity (eSRVCC) website at www.ooredoo.om implementation back in May 2013, Etisalat is well on track to launch

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STC Regional Managers Feeds that asked users to donate to bundle. Additionally, existing and new similar nonprofits. While the Google Postpaid customers will get 50 per cent Convene for Quarterly campaign distinguishes itself with the off for life on Data Plans. Customers, Meeting company’s double-matched donation, who are not on a Vodafone Postpaid the Facebook campaign focuses on plan, will get 30 per cent off for life Saudi Telecom Company (STC) regional user donation and providing services on all Data Plans except Data Plan managers from across the Kingdom 50. The promotion offers customers like spreading key information and held their 2014 third quarter meeting a life-time discount promise if they assisting communications for health at STC headquarters in the King Abdul subscribe to a Vodafone Data Plan workers in Ebola-stricken countries in Aziz Communication Complex in up to 31st December 2014. Existing West Africa. Riyadh. Eng. Abdul Aziz bin Abdullah Postpaid customers and those who Alsugair, STC Chairman, attended take it along with a new Postpaid line the meeting, as well as the STC CITC consults on get 50 per cent discount for life in General Director. Chairman frequently the new Data Plans promotion, which include the: Data Plan 50 offering 1 underscores the importance of these interconnection, access GB of data at QR 25/ month instead quarterly meetings and applauds to physical facilities of QR 50; Data Plan 70 offering 2.5 GB regional senior management and of data at QR 35/ month instead of QR regional managers for their efforts guidelines 70; Data Plan 100 offering 7 GB of data to strengthen STC’s presence across Saudi Arabian telecoms regulator the Communications and Information at QR 50/ month instead of QR 100; the Kingdom. At the gathering, he Technology Commission (CITC) has Data Plan 200 offering 15 GB of data commented that a key function of opened a public consultation on at QR 100/ month instead of QR 200; these meetings is to forge a strong draft Interconnection Guidelines and Data Plan 300 offering 25 GB of data at connection between headquarters new Guidelines for Access to Physical QR 150/ month instead of QR 300; and and regional offices to ensure that Facilities. The watchdog highlighted Data Plan 400 offering unlimited data the company’s policies are effectively that the decision was taken in order at QR 200/ month instead of QR 400. implemented on the local level. Eng. to reflect ‘the technological and As a part of this promotion Customers who don’t have a Vodafone Postpaid Alsugair encouraged attendees to market developments in ICT since the line can enjoy 30 per cent monthly actively seek innovative ways to offer current Interconnection Guidelines were issued in 2003’. The CITC said discount for life on these fantastic the highest levels of service to both Data Plans, except Data Plan 50, with fellow employees and customers. that the updated Guidelines for Access to Physical Facilities will establish the following fees: Data Plan 70 at He emphasized the importance of QR 49; Data Plan 100 at QR 70; Data knowledge and experience sharing, rules governing access to physical facilities, including collocation Plan 200 at QR 140; Data Plan 300 at and strengthening communication and sharing of physical facilities; QR 210; and Data Plan 400 at QR 280. and cooperation between regions. provide a framework for access to Customers can use these data plans Regional managers exchanged physical facilities and networks in to power their tablets, smart-phones, opinions, expertise, and experiences, a technologically neutral manner; USB hotspots and other smart devices as well as discussed ways to strengthen foster investment in and deployment with high speed internet including 4G cooperation between regional of next generation networks (NGN); network. Vodafone Qatar said: “This is offices to enhance productivity. and establish a process for dealing a fantastic data offer offering Vodafone customers lifetime discounts. Collaboratively, regional managers with access disputes, among other Our customers’ data demand is have developed innovative strategies things. The draft Interconnection Guidelines, meanwhile, seek to ensure significantly increasing, especially to increase sales and maintain STC’s following the launch of Vodafone 4G, competitiveness in the market. that all service providers are treated fairly and in a non-discriminatory and they’re looking for real value that manner, with respect to the provision allows them to enjoy their favourite Google Launches of interconnection services, to music, videos, games or simply stay in ensure good practice with respect touch with family and friends. Our new Donation Campaign to to interconnection services between discounted Data Plans are the perfect Fight Ebola service providers and to promote the solution to that. Each plan is packed provision of high quality services for with data at greatly affordable rates Google has joined the fight against interconnection through technical and are available to everyone in Qatar.” Ebola and pledged to give US$2 for and economic efficiency. The CITC has every dollar donated through its invited all interested parties to provide Qualcomm LTE Direct site, its CEO announced on Monday. their feedback on the draft documents Larry Page wrote in a blog post that by February 2, 2015. Coming in 2016 Google will also immediately donate Qualcomm’s LTE Direct proximal $10 million to support nonprofits discovery service is expected to “doing remarkable work in very Vodafone announces become commercially available in difficult circumstances,” including unlimited data plan at 2016. Speaking at the Open Mobile Medicins Sans Frontiers (Doctors Summit, Mahesh Makhijani, senior Without Borders), International half price for life director for Qualcomm Research, fit Vodafone Qatar is introducing its Rescue Committee and the U.S. Fund the technology in with Release 12 and new Data Plans with increased data said it is currently undergoing trials for UNICEF. Page also said the family allowances and special promotional foundation would give $15 million in offers which include Unlimited data with Deutsche Telekom and KT. He said a separate donation. Google’s public- and discounts for life. The new Data Qualcomm has LTE Direct partnerships giving campaign follows a similar Plans range from Vodafone Data in place with Yahoo, Control Group, R/ initiative by Facebook, which recently Plan 50 with 1 GB data bundled to GA, the Sacramento Kings and Radius placed banners at the top of News Data Plan 400 with an Unlimited data Networks, in addition to the Facebook

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SAMENA TRENDS _ NOV_2014 SAMENA TRENDS _ NOV_2014 partnership Qualcomm announced BlackBerry Eyes striving to cater to the retail consumer in September. Makhijani wants us to segment but has failed to do so as its think of LTE Direct as a “digital 6th Emerging Markets For software remains uncompetitive with sense” for mobile devices. The device- respect to application-friendly features Growth, BES10 Strong of iOS and Android. BlackBerry to-device technology works a little like BlackBerry delivered positive earnings a beacon on a phone. It puts out two currently has a Zacks Rank #2 (Buy). surprises in three quarters last year, Another well-performing company basic messages, called expressions. with an average beat of 46.89%. The worth considering in this sector is SK Public expressions are app agnostic company reported narrower-than- Telecom Co. Ltd. with a Zacks Rank #1 and any proximal device can decode expected loss in the second quarter (Strong Buy). them. Makhijani said they’re suited of fiscal 2015 wherein the bottom for advertising. Private expressions line surpassed the Zacks Consensus are app specific and only proximal Estimate while the top line was on Qualcomm Launches devices with a “key” can decode them. par with the same. By offering a Gobi 9x45 LTE Modem Makhijani said relevance and filtering convenient, reliable and secure way of occurs at the modem layer and that accessing email in real time, BlackBerry With Download Speeds has been able to successfully communication is accomplished via differentiate its products from the traditional LTE or Wi-Fi—meaning Up to 450Mbps other offerings in the communications Qualcomm has announced its fifth- the technology only works under market. The company enjoys a strong generation LTE solution called the network coverage. Qualcomm places brand value in the wireless PDA Gobi 9x45 modem, alongside the LTE Direct above Bluetooth LE in a market, leveraging the popularity of its second-generation Qualcomm RF360 couple of areas. The company says LTE push email system. Further, BlackBerry envelope tracker, the QFE3100. Direct has 10x the range of BLE, which holds 2,033 patents ranging from The chipmaker says that the new reaches out approximately 50 meters. mobile security to push email in high- Qualcomm Gobi 9x45 modem and The company also touts the scalability end Smartphones. Its extensive patent QFE3100 are currently sampling with of the technology, which allows portfolio is also expected to help in customers and are expected to be for always-on discoverability and further innovation. A major growth commercially available in 2015. The promises not to drain device batteries product for BlackBerry is its BlackBerry company touts that the Gobi 9x45 just because the number of users Enterprise Service 10 (BES10) solution. This is a cross-platform product modem as the “first announced increases. Makhijani also stressed that interoperable with Apple Inc.’s iOS and Category 10 LTE cellular modem.” It LTE Direct is a horizontal platform that Google Inc.’s Android. BES10 provides comes with download speeds of up works across applications. flexibility, scalability, high security and to 450Mbps and upload speeds of up cost-effectiveness to its customers. to 100Mbps across the TDD and FDD Recently, the company also launched spectrum. Huawei to Establish the BES12 platform. BlackBerry is Smartphone R&D Center actively targeting the highly populated markets of China and India. The in Korea company expects its enterprise service Huawei is planning to set up a business to witness strong growth research and development (R&D) in these countries owing to the high center for Smartphones in Korea. On demand for efficient communication November 12, a representative of system security in the corporate Huawei Korea confirmed by saying, sector. The company also initiated the “We are working to establish an R&D shipping of budget friendly full-touch center, and we are finalizing our plan Z3 Smartphones. Z3 is a joint effort soon.” However, the Android device by BlackBerry and Foxconn Intl Hldg (HK:2038) – which will supply cheaper manufacturer did not elaborate on the inventories for the manufacturing of location or size of the building. The the Smartphones. Such a strategic official remarked, “We haven’t decided move will help the Canadian device on the size of the R&D center yet,” maker to improve margins along adding, “We will be able to increase with capitalizing on the booming the size if Korea provides support.” The Smartphone market of Indonesia and Chinese company revealed that it is other emerging nations. Recently, running R&D centers in 16 countries, BlackBerry received a phenomenal including the U.S., the U.K., Germany, 200,000-order for its latest large and India. The Huawei associate screen Smartphone, Passport. said, “When buying Smartphones, However, in the second quarter of Korean consumers carefully examine fiscal 2015, BlackBerry sold 2.4 million smartphones, down 44% year over year the design, hardware specification, and also significantly below Samsung’s software functions of devices,” adding, 78 million and Apple’s 39 million. This “If we open up an R&D center in Korea, indicates that the company’s trouble it will be of benefit to us.” When asked in the high-end smartphone business about its decision about the takeover persists. BlackBerry is rapidly losing of Pantech, the official said, “I cannot its leadership position in the corporate comment on the issue at the moment.” segment which is characterized Huawei is planning to set up a research as high-margin since business and development (R&D) center for executives generally opt for expensive Smartphones in Korea. smartphones. BlackBerry is also

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improvements, and enhance position in all markets.

Data, on both fixed and mobile platforms, is the strategic direction and focus for our future, utilizing the good infrastructure that Sudatel owns”

STG President and CEO, Eng Tarig Hamza Zainelabdin stated: “The results of 2014 1st half reflected an excellent effort being made by all group operations as part of strategic direction Sudatel Group reported to strengthen the financial outlook of the group, on both, top and bottom lines.

strong performance in the first Sudatel West Africa operation recorded its first positive net income since the half of 2014 comparing to the start up of the investment, due to high level of efficiency in Mauritania, change of the marketing strategy in Senegal, previous years stabilization effort in Guinea Conakry. Despite the high inflation rate and local currency devaluation in the main operations of Sudan, reported EBIDTA is Net Income grew by eight times to Total Active Subscribers: 11.2 million USD 48 million, while net income is USD reach USD 28 million Gross profit EBIDTA: USD 75 million 24 million. Sudan operation represents margin reached 71% during the 1st EBIDTA Margin: 32% 66% of group active Subscribers and 56% half 2014, EBIDTA Margin reached Net Income: USD 28 million of group revenues for H1 2014. 32%, Indicating improvements EPS: USD 0.024 across all group operations The group managed to maintain an H1 2014 vs. H1 2013 acceptable operating cost compared SUDATEL Telecom Group (STG) STG generated consolidated revenue to the same period last year, additional announced the company’s results for of USD 233 million for the period efforts and measures are being taken to the period ending at 30 June 2014 January 1, 2014 through June 30, 2014. further control and reduce cost, without (6 months), approved by the Board The consolidated EBIDTA for the same compromising quality, and improving the of Directors. period is USD 75 million. EBIDTA Margin bottom line. is 32% at the end of the period against 27% for the same period 2013 reflecting Eng. Tarig also added, “STG is adopting operational efficiency. Earnings Per Share a transformational strategy moving from for the period is USD 0.024, significant a traditional mobile telecom operator increases from USD 0.003 for the same towards an integrated ICT services and period 2013. solutions enabler across all markets serving Business, Consumers segments Key Notes for H1 2014 and other operators • Signing MoU to fund expansions in Mauritania with USD 50 million, We are strategically focusing on enhancing • STG operation in Guinea Conakry performance through maximizing entered agreements to invest around operation efficiency while keep focusing Euro 20 million in network expansion on delivering better customer experience to improve network coverage; to provide convenient services across • Improvement of Group financial all touch points throughout the whole indicators due to net profit, payments customer life cycle. and restructuring of debts, Through the investments made on STG Chairman of the Board of Directors, Submarine cables and capacities in DR. Abdelrahman Mohamed Dirar SAS-I, SAS-II, EASSY, ACE, Data Centres commented on H1 2014 results: “H1 and Landing stations, STG will continue 2014 results were good achievement to improve on our returns from the for the group moving from net losses in wholesale and corporate business.” previous years to net profits with great momentum, and hope for even better He concluded: “We strongly believe that revenue number in the coming period. the results of the 1st half 2014 are very strong evidence to our shareholders and STG is strategically considering smart investors of the positive group growth investments in Sudan and West Africa and future potentials.” operations to continue business page_12 page_13 page_14 REGIONAL & MEMBERS UPDATES REGIONAL & MEMBERS UPDATES

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REGIONAL NEWS

DSO to Highlight Smart to focus on the topic. “The upcoming knowledge session will highlight the City Initiatives at 17th role of digital technologies that make TechForum cities truly smart and sustainable. The event will also reiterate the importance Dubai Silicon Oasis ( DSO ), the of introducing smart living aspects integrated free zone technology park, is with its quantitative and qualitative set to host its 17th TechForum focusing criteria.” The 17th edition of TechForum on smart city technology and its social is supported by Silicon Oasis Capital and and commercial implications for the Silicon Oasis Founders, a technology GCC region. The event will take place on incubation centre owned by DSOA that 11 November from 6:30pm-9:00pm at encourages local entrepreneurial talent REGIONAL DSOA headquarters bringing together in the promising mobile application technology professionals, experts, space and related technologies. The UPDATES academics and students. In the opening earlier editions of TechForum focused session, Eng. Muammar Al Katheeri, Vice on topics such as wearable technology, President - Engineering Management data processing, mobile payments, cloud and Chairman of the Smart City computing, augmented reality and social Committee at DSOA will highlight the media with speakers from Du, Microsoft, organisation’s contribution to the Dubai SAP, IDC, Oracle, Facebook and Linked- Smart City vision with a special focus on In among others. A wholly-owned the newly launched AED1.1 billion Smart entity of the government of Dubai, DSO City project - the Silicon Park. Dr. Mazen operates as a free zone technology park Zein, Business Development and Strategy for large enterprises, medium and small Director, Schneider Electric, Dr. Philippe companies looking to set up their offices Bouvier, Adjunct Professor, RIT Dubai, and in Dubai. Fatih Simsek, Product Manager, Philips Lighting are some of the eminent speakers that will headline the event. Ahead of Nepal unveils new the event, Eng. Muammar Al Katheeri broadband policy said: “ Dubai Silicon Oasis TechForum The government of Nepal has unveiled provides a platform for local and global its new National Broadband Policy experts to come together in a knowledge 2014, under which it hopes to spur incubation space. With the recent launch the development of high speed of the Silicon Park project in Dubai and internet services in the country. The other smart cities around the world, we document, which has been prepared believe this is an opportune moment

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SAMENA TRENDS _ NOV_2014 SAMENA TRENDS _ NOV_2014 by sector regulator the Nepal Egypt To Bolster ICT The forum will present 10 working Telecommunications Authority papers focused on the types of cyber (NTA), aims to have at least 30% Sector, Puts Out Call For crimes, technology and malicious of households subscribing to a More Investors software used to commit them, the broadband service by 2018, up from GrameenPhone, the Bangladeshi Atef threats these pose, and modern around 5% currently, with networks Hemly, Egypt’s communications and techniques and standards that can be passing at least 45% of premises by information technology minister says followed to avoid and reduce cyber that date. In addition, the NTA wants that progress within other sectors crime. to see the price of entry-level services relies on reform within the country’s brought down to below 3.5% of per- ICT sector, CCTV Africa reported. capita income, or NPR208 (USD2.10) In addition to bolstering Egypt’s Maroc Telecom to a month, from the existing level of education and health sectors, creating 17% of income. According to a report jobs is on the top of the list for the upgrade mobile network country, which is working hard to from the Himalayan, other targets rebuild its political and infrastructural in several locations set by the policy include expanding landscape. “There’s no doubt that broadband internet service to 70% Maroc Telecom is planning to upgrade the technology and communications its mobile network in several locations, of village development committees sector is one of the [most] competitive within three years of implementation including Tangier, Kenitra, El Jadida, when it comes to investment,” Hemly Laayoune and Ouarzazate, during the of the policy, connecting 20% of told CCTV Africa. “As part of building month of November, domestic news public secondary schools with our new Egypt and modern Egypt, ICT a service of at least 1Mbps, and is a cornerstone to do that.” source Le Matin reports. The cellco introducing broadband access to all aims to expand and improve the state-owned hospitals and at least 5.7 million Internet coverage and quality of its 3G networks 15% of health posts by 2018. in these locations and prepare the users in Jordan infrastructure for a potential migration Eighty Jordanian experts from both to 4G Long Term Evolution (LTE) Morocco kicks off 4G public and private sector on Tuesday technology. The network expansion is discussed risks of cyber crimes at a part of Maroc Telecom’s modernization spectrum contest program, which was launched back in The Moroccan telecoms regulator has two-day forum, titled “Cyber Crimes begun the process that will lead to - Challenges and Solutions”, being 2012; the operator has signed four the allocation of 4G mobile licences held in Amman. In the forum’s investment agreements with the by creating a pair of documents that opening speech, Moroccan government for a total of will govern the contest. The country’s Director of the Public National Telecommunications Security Department Regulatory Agency (ANRT) on (PSD) delegate Monday announced that its ‘call Major General Abdul for competition’ documents will be published on 17 November. One Hadi Al Dmour covers the regulatory, technical and said that statistics financial conditions that 4G licensees indicate that the will be required to adhere to, as well number of Internet as coverage and quality of service users in Jordan obligations. The second sets out has reached 5.7 the rules regarding the 4G licensing million, accounting process itself. “The explosion of for 73 percent of mobile data usage on 4G, seen at a the Kingdom’s global level over the coming years, is population. He expected to grow at rates of above explained that 50% and will provide opportunities to the revolution be seized in Morocco and Africa as a whole,” the ANRT said in a statement. in transport, It added that in addition to facilitating telecommunications an increase in mobile data usage, 4G and information technology reflected on humanitarian activities both EUR3.9 billion (USD4.86 billion) to will also pave the way for new services, carry out the work. such as m-commerce, e-government, positively and negatively. Criminals media, education and health also exploit such technologies and offerings. Morocco’s mobile market software to carry out traditional IT Ministry keen to is served by three main operators: crimes with modern electronic market leader Maroc Telecom, which methods. He added that the PSD revamp business was acquired by Etisalat in May; adopted a royal vision in putting environment Meditel, which counts Orange among up scientific and well thought out GSMA delegation led by Mr. Chris Zull its shareholders; and smaller player strategies to combat crime during INWI. Mobile penetration in Morocco spectrum Director Asia Pacific called the 2013-2016 period, based on is around the 130% mark, according on the Minister of State for Information to a report published by Paul Budde community partnership, international Technology and Telecom Ms Anusha in mid-2014. cooperation and legislative axis to Rahman in her office today Federal form an integrated security system. Secretary IT Mr. Azmat Ali Ranjha was

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also present in the meeting. The digitisation is our ultimate goal and 830MHz/870MHz-875MHz band. The Minister apprised the delegates asked for continuous support and help operator may also be required to regarding the role of current from GSMA and industry in making implement mitigation measures (i.e. government reflecting most digital Pakistan a reality. Together filters) in order to minimize GSM-R visible positive change in Pakistan. we can take all the benefits of the interference and be restricted to use She also appreciated the GSMA broadband revolution to the people. 2×3.75MHz for CDMA voice services for coming up with best practice We need more collaborative work in areas with GSM-R coverage. Further, policy and regulatory advice, between industry and Government to which is always welcomed. Minister rollout services that benefit the people ICASA discusses several options for further said that development of and increase utility of the 3G/4G potential spectrum allocations in the ICT sector remained our focused for the masses. GSMA delegation 450MHz-470MHz band, which will be area since beginning because appreciated the determination of the used to boost coverage in underserved it can bring immediate positive government of Pakistan for initiation areas. In order to release spectrum impact in people’s lives through of dynamic measures to strengthen for the ‘SA Connect’ initiative, the improved socio economic the ICT industry. they emphasized the migration process for rural areas could development. Spectrum auction evolution witness in Pakistan within start as early as 2015, with existing through a transparent and open short span of one year. spectrum holders required to vacate process is a testimony. Both GSMA the band in rural areas no later than and the industry have witnessed ICASA publishes mobile the end of 2018. For urban areas, the inclusive and consultative existing licensees will be obliged to approach adopted for concluding migrate out of the band by the end this important initiative. We are spectrum roadmap now ready for the next cycle of Telecoms watchdog the Independent of 2022. ICASA has also opened a growth, which obviously has to now Communications Authority of South public consultation on its draft Radio focus on “Delivering the benefit of broadband to masses through innovative services”. Establishment of 500 telecenters is in the offing and I would ask to the industry to come forward and participate in the bidding processes of these tele centers, Minister added. Minister further added that steps are being taken to resolve industry issues on priority particularly improvement of business environment (Taxation etc.). Minister shared with the delegation that after the inception of 3G/4G, our focus is on local smart phone manufacturing. We are preparing a policy package for incentivizing investment in local mobile manufacturing industry, while discussing new telecom policy; Minister said that we have adopted fully participative and inclusive process. All stakeholders have been consulted and this Process would remain accommodative till the last draft is concluded by end of this year. Final executive round of mutual consultation with telecom industry Africa (ICASA) has published the leaders would be held before Final International Mobile Telephony Frequency Spectrum Assignment Plan issuance of the final policy draft. (IMT) Roadmap, which outlines plans (RFSAP) for IMT. The Draft RFSAP seeks The Minister shared that after new for freeing up additional spectrum to specify the technical conditions spectrum auction we are on the for mobile broadband services on the use of the frequency bands road of technological advancement and is aimed at soliciting views from with focus on the provision of by migrating a number of current licensees out of or within bands. The stakeholders on the Rules for Services e-services to the people i.e., operating in each frequency band. All e-agriculture, e-learning and document seeks to ‘ensure universal interested parties are invited to submit e-health. Currently more than availability of broadband services, 1100 indigenous companies are as well as [promoting] a vibrant and their comments on the topic within 14 registered with PSEB and we are competitive telecommunications days of the document’s publication. inviting these telecom companies industry’. With regards to the 694MHz- Although the regulator is planning to to come forward and concentrate 876MHz frequency band, the regulator adopt the new frequency assignment on applications development and proposes that Neotel, which currently plan by July 2015, the issuance of content development to help in holds 2×5MHz paired spectrum in the licenses before that date has not been building the eco system in our 827MHz-832MHz/872MHz-877MHz ruled out. rapidly thriving telecom market. bands, should be migrated to 825MHz- The Minister said that accelerated

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Ministry of Information that is capable of benefiting all social Major mobile groups segments. That’s why we’re committed and Communications to working hard towards ongoing interested in running Technology partners development in line with our goal Lebanese networks, says to support the national plan. We’re with Microsoft Jordan proud of our partnership with the minister to implement three MoICT and of our collaboration with Lebanese telecoms minister Boutros the Government of Jordan, which is Harb told the Daily Star Newspaper national projects one of the first in the region to sign on Monday that major international multiple deals with Microsoft, proving Microsoft Jordan has partnered mobile operators such as Saudi yet again its genuine interest in with the Ministry of Information Telecom Company (STC), Orange implementing laws and legislations and Communications Technology Group, Zain Group and Etisalat are related to intellectual property rights.” (MoICT) to establish a centralized interested in bidding in an upcoming data exchange platform that will process which he hopes will see two- enable the development and ICT fund invests Dh1.6 year contracts awarded to manage launch of 19 electronic services for billion in projects in the Lebanon’s two state-owned cellular 11 government entities. This step networks, in place of the short-term corresponds with the royal vision UAE rolling contracts currently held by Zain of His Majesty King Abdullah II to ICT Fund, which works under the realm and Egypt’s Orascom Telecom. Harb deliver a national e-government of Telecom Regulatory Authority (TRA) said that ‘great interest’ was confirmed program that fosters socio- has invested more than Dh1.6 billion by various potential bidders within economic growth across Jordan. in the last six years in various projects the framework of the minister’s Microsoft Jordan has begun in information and communications recent visits to Dubai, South Korea implementing three projects technology sector including in and China. In October Harb extended that will enhance data security, education and space technology. Abu the management contracts for Touch efficiency and productivity at all Dhabi based federal body said that (Zain) and Alfa (Orascom) for six governmental organizations and the rate of investment has increased months to give the telecoms ministry departments throughout the exponentially as the sector has been time to finalize terms and conditions Kingdom, in addition to providing growing. “We have seen 171 per and gain state approval for the longer- a unified system that manages cent increase in the investment in term contracting process. During their performance on a national the last two years. Our investment the mooted two-year management level. Microsoft Jordan is currently is primarily driven by ICT strategy period, Harb intends to push for in the process of finalizing the of the UAE government,” said Omar implementing delayed telecoms marketing plan for the National Al Mahmoud, CEO of ICT fund while sector reforms as per Law 431 of 2002, Could platform - launched at speaking to reporters on the sidelines which stipulates the transformation the beginning of the year in of Abu Dhabi Media summit. He said of state-owned incumbent fixed line cooperation with the MoICT - in the fund is being used in setting up operator Ogero into Liban Telecom, order to educate government a number of projects including smart an integrated telco licensed for all entities on the project’s government initiatives, research and mobile/fixed services and earmarked mechanism and many benefits. development and building a national for privatization. Harb explained that During the first phase, government telescope and space technology. “Our the government would look to attract entities were provided with a goal is to build a knowledge based a major international strategic partner consolidated Data Center that is society. UAE has moved beyond oil ‘such as Vodafone or Orange’ to take powered by cloud technologies. and gas sector to service sector. We a 40% stake in Liban Telecom, thereby The Data Center is located in the have a small population and can be significantly boosting competition. National Information Technology easily connected with technology.” Center (NITC) and is linked to The fund established in 2007 has been over 90 government entities via working to strengthen the UAE ICT a private network. In later stages, sector including nurturing incubators, the platform will serve as a virtual supporting research and development Data Center for startups and small projects, educational institutions and medium enterprises (SME). and providing scholarships for the Microsoft Jordan is also working development of the sector. “We are towards integrating the Enterprise converting into a smart based society, Project Management (EPM) smart based initiatives. We have platform into the operations of teachers and students utilising latest over 40 government departments technology in educational systems.” and organizations in order to He said one per cent of the telecom facilitate project monitoring operators revenue is paid towards ICT and supervising procedures. In fund. turn, Microsoft Jordan Country Manager, Hussein Malhas, said, “It takes a lot of dedication, time and effort to create change and set up an e-governance environment

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Regulatory NEWS

Iraq’s cellphone operators neutral, meaning they did not require a separate 3G license, only the spectrum, to pay $307 mln for 3G so the operators were opposed to paying extra fees, especially when their profits are airwaves-regulator in retreat. Zain Iraq’s nine-month profit to Iraq’s mobile phone network operators Sept. 30 fell 14 percent to $224 million, have agreed to pay $307 million each for outpacing a 4 percent drop in revenue to radio spectrum, enabling them to launch $1.24 billion, as it suffered from temporary higher-speed 3G mobile internet services network shutdowns and higher network in the war-torn country in two months, operating costs due to the civil war. Zain’s a senior official at the national regulator subscribers are concentrated in Baghdad told Reuters. Iraq is one of the few and southern Iraq, so the company has Middle East countries still reliant on 2G suffered less in the tumult since Sunni networks, which mostly carry voice calls Muslim militant group Islamic State seized Regulatory and SMS texts and only the most basic much of the north and west of the country online services, while fixed line internet this year. Asiacell grew from its base in the News connections are expensive and unreliable. Kurdish city of Sulaymaniyah. Its fuel and The three mobile network operators Zain security costs have increased, transmitter Iraq, the Ooredoo, and Orange have been tower maintenance is more difficult and waiting for several years to begin 3G the government’s periodical blocking services. In October sources familiar with of social media and some websites has the matter said the government wanted affected its data business, parent Ooredoo the companies to each pay $307 million said in reporting its third-quarter results. for the spectrum, much to their dismay. Asiacell’s nine-month revenue fell 9.5 But the companies have now agreed to percent to 4.8 billion Qatari riyals ($1.32 this fee and made downpayments of $73 billion) and its net profit dropped 38 million a few days ago, Ali al-Khwaildi, percent over the same period to 868 chief of the commissioners’ council at the million riyals. Communications and Media Commission (CMC), told Reuters. The companies will settle the remainder in four installments Government authorizes over the following 18 months, the first of which will be paid at the signing of the NCCR to announce tender 3G contract on Nov. 10, said Khwaildi. for obtaining 3G license There will be a two-month testing period Ukraine’s Cabinet of Ministers has before the commercial launch of 3G, he authorized the National Commission said. “We hope that this service will offer for Communications Regulation (NCCR) job opportunities for a high number of to announce a tender for obtaining people,” said Khwaildi. The operators each licenses for the UMTS (3G) standard paid $1.25 billion for 15-year licenses in 2007. These permits were technology- communications, Minister of the Cabinet

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Ostap Semerak has told reporters. analysis has had a political tarnish, that was quickly rebuked by Telstra. “According to the document we have which diminishes its value in “Paul laments the fact that Telstra has approved today [the conditions of forward planning for this important and will derive substantial financial the tender], the NCCR will have the infrastructure planning,” Samuel said strength flowing from its commercial possibility of announcing a tender, it of the reviews commissioned by the agreements with NBN Co … Forgive will last 60 days. In January we will sum Coalition government. The Vertigan me if I begin to sound like my former up the tender,” he said. Semerak added reports “rely on prognostications as nemesis, [ex-Telstra head of public that the conditions of the tender to the demand of broadband well policy] Phil Burgess, but Telstra for obtaining the license, which the into the future,” he said. “Recent has already had its wings heavily government approved on November history in this area demonstrates clipped with its legislative structural 5, will allow maximum competition one certainty: those prognostications separation.” Telstra competitors have and the most transparent conducting in the area of telecommunications an opportunity to win customers by of the tender. He also noted that technology can at best only be providing better content, Samuel said. the process of frequency conversion classified as guesstimates.” The Scales Optus, Vodafone, iiNet and others would take place without the elements report was the “least valuable,” as “all have got capacity to enter into of corruption. well as “insulting and offensive” to arrangements on content, and they the experts consulted by the previous ought to do it, and not just sit back government, he said. “Scales’ report and wait and see if some government ACCC should give up is factually wrong on the role of the can put a squeeze on the big Telstra telecom regulatory ACCC as attested by both ourselves, and say stop.” powers, says former the current chair of the ACCC and others in the organization.” Also on France’s 700MHz auction head the NBN, Samuel said he didn’t see A former chairperson of the Australian a problem with TPG rolling out fiber- expected in 2015 Competition and Consumer to-the-basement services that could French president Francois Hollande Commission (ACCC) has supported compete with NBN infrastructure. has reportedly announced that spinning off the agency’s telecom NBN Co has said this practice would telecoms regulator the Autorite de regulatory role to a specialist entity. hurt the business model under which Regulation des Communications Electroniques et des Postes (Arcep) At the Charles Todd Oration in it can sell services to higher-cost will initiate the process of auctioning Sydney, Graeme Samuel – chair of the regional areas at the same price as urban areas. The ACCC has ruled that frequencies in the 700MHz band for ACCC from 2003 to 2011 – backed telecoms services in 2015, Advanced it won’t take action against TPG. But recommendations from the Vertigan Television reports. Addressing NBN review and Harper competition afterward, Communications Minister previously expressed concerns of review on the future role of the ACCC in Malcolm Turnbull announced a license Digital Terrestrial Television (DTT) telecom regulation. While Samuel said condition that would force telcos broadcasters that the allocation would the ACCC could retain its role enforcing such as TPG to functionally separate interfere with the plans to migrate competition laws, he recommended their retail and wholesale arms. “I the DTT platform to MPEG-4 AVC by the establishment of an “essential doubt that [TPG] will cause any more 2015 and DVB-T2 by 2023, President services commission” that would aggravation to NBN Co than the flea Hollande said that France needed bring all utility regulators into one on the elephant’s back,” said Samuel. an audiovisual sector that could broadcast broadly, effectively and agency, “working on analytical issues, “But the fact that such rollouts can securely, adding: ‘This is the objective mainly focused around the pricing be economically sustained should lead one to the conclusion that of transferring the 700MHz band and conditions of access to monopoly to the telecom sector. The state will in the interests of facilities-based and quasi-monopoly services.” The ensure that the available resources are commission would bring together competition, they should not be guaranteed for broadcasting’. As such, regulatory functions of the ACCC opposed. Unless … the preservation Arcep is expected to launch a tender and the Australian Communications of the NBN Co’s business case is the for the 700MHz spectrum band in and Media Authority (ACMA), as well primary driver rather than that of November 2015, with projections that as energy regulators, he said. “There competition.” Samuel blamed past the auction could generate up to EUR3 are compelling reasons for this,” said policy decisions for allowing the TPG billion (USD3.8 billion) for the treasury. Samuel. “The pricing and access situation to become a problem at all. analyses of determinations require a He said the reason that TPG can offer Telecom Commission to specific regulatory economic expertise the FTTB service was “the adoption and culture. That culture is directed to by policymakers of distorted pricing meet Nov 7 to discuss solving market distortions through mechanisms and non-transparent spectrum auction the complex process of regulation cross subsidies to resolve the uniform pricing across urban, regional and The Telecom Commission is scheduled as directed by legislative agreement. to meet Nov 7 to discuss the next It is a culture with secondary focus rural Australia. “The hidden cross subsidy inevitably leads to distorted round of spectrum auction and on competition and its application the National Optical Fiber Network to market structures and behavior.” pricing in urban areas, which enables – indeed it encourages – cherry picking project, according to sources. Apart However, Samuel criticized other from the November 7 meeting, aspects of the Vertigan review, … If efficient pricing practices were adopted, cherry picking would be a Telecom Secretary Raksh Garg will and utterly condemned a separate hold his first round-table meeting Coalition government-commissioned sparse if not a fruitless exercise.” Also in the talk Samuel slammed Optus with the industry players Wednesday review by Bill Scales that slammed to discuss industry related issues, Labor’s National Broadband Network. chairman Paul O’Sullivan for calling for a break-up of Telstra, a statement confirmed a source. The Telecom “Unfortunately much of the review Regulatory Authority of India (TRAI)

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October 15 recommended around 10 of cordless telephone systems in the imposing a positive obligation on percent hike in the reserve price for country. “The Commission has said the operators in the said sectors to 1,800 MHz band spectrum auction that implementation of the TRAI adopt risk management practices,” compared to the last winning price in recommendations would advance the ministry said. However, the Senate the February 2014 sale. In December the objectives behind Digital India. Committee – which oversees the 2015, seven each licenses of Idea Therefore, the commission decided to ministry’s affairs – did not approve the Cellular and Reliance Communications, accept recommendation of TRAI and ministry’s move and termed it against four licenses of Bharti Airtel and six it should be placed before competent the parliamentary norms. “You cannot licenses of Vodafone are scheduled authority for final decision,” an official reject the bill in an outright manner to complete their 20-year term after source said. The Defense Ministry and if there were some issues with its which they require renewal. “In the had objected to the recommendation clauses, the ministry needed to share 900 MHz band, only the spectrum as the 20MHz frequency spot lies its input to improve the same,” said held by them is available for the in the band which it uses for its a member of the committee, Senator auction. These licensees will have communication services. The Ministry Zahid Khan. “How you can set aside the to win back this spectrum to ensure has raised security concern on freeing proposed bill with one stroke of your business continuity in a license service up spectrum for general public. The pen for the sake of a separate piece of area (LSA); if they don’t, it places the Telecom Commission suggested legislation?” Zahid asked the minister. large investment made in the LSAs in that DoT and Defense can continue In clarification, the minister said the jeopardy,” the TRAI said. It has set a their discussion for an amicable issue of cybercrimes had already been price of Rs.3,004 crore per mega hertz solution but did not favor sending the taken up by Ministry of Information for bandwidth to be auctioned in 18 recommendation back to Trai because Technology and Telecommunications service areas for the more efficient of objection from Defense. under the Prevention of Electronic 900 MHz band and Rs.2,138 crore per Crimes Bill. She said the ministry mega hertz for the 1,800 MHz band. moved a summary for prime minister The auction is expected to take place in Curbing cybercrimes: on February 19, 2014 for placing the February 2015. In the 1,800 MHz band, Ministry rejects cyber draft bill before the federal cabinet 20 circles are going for auction, while for its approval and subsequent in the 900 MHz band, 18 circles will be security council bill placement before the parliament for up for sale. The recommendations said The much awaited proposed National deliberations and promulgation. The spectrum should be put to auction Cyber Security Council (NCSC) Bill committee was further informed that in a block size of 2x200 KHz in both has failed to get the nod of Ministry the policy directives on establishment the 900 and 1,800 MHz bands. The of Information Technology, Pakistan, of cross border terrestrial links was revenue target set by the government which has termed it ‘anti-state’ and suspended till date. “Ministry of IT is at in 2014-15 budget from spectrum ‘against national security’. The NCSC an advanced stage in terms of reviewing auction is to the tune of Rs.45,471 bill was moved by Senator Mushahid telecom sector policies and the matter crore. In 2013-14, the total receipts Hussain Sayed. State Minister for of cross border links/connectivity has from auction were of the order of Information Technology Anusha been duly addressed therein after Rs.40,847.06 crore. In February 2014, Rehman told a Senate panel on getting recommendations of Pakistan in a 10-day auction of 900 MHz and November 10 that after consultation Telecommunication Authority (PTA),” 1,800 MHz, the government mopped with all the stakeholders including the the ministry said. up Rs.61,162 crore. Inter-Services Intelligence (ISI), the ministry has forwarded a summary [a separate piece of legislation] to OFCOM to expand 4G Telecom Commission the prime minister for approval. In in the UK with new agrees to spectrum its written reply to a parliamentary panel, the ministry termed the bill spectrum auction next allocation for cordless impractical. “It may not adequately address the issue of cyber security year The UK’s four main carriers may steadily telephony and falls short of addressing the key Inter-ministerial panel Telecom be building up their 4G coverage, but problems linked with cyber security Commission has approved free regulators don’t want to leave the – personal data protection and allocation of 20 MHz of spectrum future of Britain’s superfast networks to unauthorized interceptions,” it said. for cordless telephone system that chance. UK communications regulator It is also observed that institutional can be used for communication OFCOM today announced that it mechanism proposed in the bill within a premise or a similar small intends to auction more 4G spectrum appeared to be in contradiction with area for non-commercial purpose. late next year (or early 2015), giving the trichotomy of the organs of the Telecom regulator TRAI in 2012 had operators to opportunity to expand state given in the Constitution. “The recommended that a 20MHz of their LTE networks with more high bill does not even provide guidance spectrum in a band should be de- data capacity spectrum. It expects to to the proposed council in light of licensed for low power operations raise between £50 and £70 million which the council may devise policy to of cordless telecommunications from the sale, which will then line the ensure that the fundamental rights of system (CTS) for private and indoor pockets of the government. The two citizens of Pakistan are protected. “The use but not for commercial use. The bands in question are the 2.3 GHz bill also does not require the operators implementation of the move will and 3.4 GHz frequencies. The former of critical information systems in reduce telecom bills of business houses is supported in handsets old and new, government, financial, e-commerce, within their premises and provide including the iPhone 5 and iPhone social networks, etc, sectors to report more flexibility at work with cordless 6, Samsung’s Galaxy phones and major security incidents on their phones as well as boost development HTC’s One devices, while the 3.4 GHz core services. [It] also falls short of

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SAMENA TRENDS _ NOV_2014 band is primarily utilized by wireless other government agencies after the 20, 1958, the UNGA adopted the broadband provider Relish in the UK. 2G crisis shed light on corruption in Universal Child Rights Declaration. To keep things fair, OFCOM says it will the department, DoT officials have The Cyber Security Division at the TRA limit operators’ mobile holdings to levied maximum penalties on telcos is responsible for SafeSurf with focus 37 percent of each spectrum, giving for infringements, lest any leniency be on orientation of parents and children carriers like Three and O2 (and even taken as graft. The Economic Times on the subject of child internet safety. BT) the chance to achieve some parity pegs the amount owed in penalties with their bigger rivals. by the nation’s telcos to be in the region of INR21.17 billion (USD344.3 NBTC to go ahead with DoT to clean muddy million), most of which is currently 4G auctions being disputed in the courts: INR11.33 The telecom regulator is pushing regulatory waters billion worth of fines were dished out ahead with the planned 4G spectrum India’s Department of in the 2011-2012 year, but the amount allocation next year, saying 4G licenses Telecommunications (DoT) has been collected was just INR2.06 billion, could boost the telecom infrastructure instructed by telecom minister Ravi equating to around 18.2% of the to serve the government’s digital- Shankar Prasad to provide clarity on a total. Subsequent years have yielded economy policy as well as increase number of issues persistently harming similarly poor results, with the DoT GDP. The regulator will start revising investor confidence in the sector, realizing 15.0% of the INR7.19 billion all auction details for the 1800 the Economic Times writes, citing a levied in 2012-2013 and 1.6% of the and 900 megahertz spectrum in senior DoT official. Matters including INR79.23 billion charged in 2013- January and draw up a new schedule spectrum sharing and trading, terms 2014. for the auction in July, said Col for mergers and acquisitions and the Settapong Malisuwan, vice-chairman rationalization for penalties are all set Regulator publishes of the National Broadcasting and to be considered by the DoT. Whilst Telecommunications Commission the minister is keen to clear up some draft ruling on TDL (NBTC). Although several impractical of the sector’s muddier regulatory sections of the Frequency Allocation waters, the DoT’s deliberations will not contributions Act (FAA) are being amended by the New Zealand’s Commerce Commission delay the upcoming spectrum auction, government that may affect the NBTC’s has issued its draft decision on scheduled for February 2015, despite authority, the regulator will move the proposed contributions to the calls from the industry to put the sale ahead with the planned 4G auctions country’s NZD50 million (USD39 on hold until more frequencies are in parallel with the amendment of the million) Telecommunications available. According to the DoT official FAA. The NBTC must be responsible Development Levy (TDL) for 2013/14. guidelines on spectrum sharing are for allocating spectrum for optimum The government uses the fund to pay already in the works but the regulator benefit of the industry and the for telecoms infrastructure, including has yet to look into spectrum trading, country in line with the rapid growth the relay service for the deaf and so guidelines on those two areas are in data demand from both telecom hearing-impaired, broadband for unlikely to be released by the end of and broadcasting, said Col Settapong. rural areas, and improvements to 111 2014, as previously stated by Mr. Prasad. Previously, the NBTC set the auctions emergency services. Under the draft Meanwhile, contentious elements of for the 1800 and 900 megahertz in ruling, Spark (formerly Telecom New the existing merger and acquisition August and November, according to Zealand) will be liable to pay 38.17% rules will be reconsidered, including the Information Memorandum (IM) of the total (NZD19.1 million), while the requirement for the buyer to of the 1800 and 900 MHz allocations. Vodafone will contribute 27.82% pay the government a market-linked For the 25 megahertz of bandwidth (NZD13.9 million) and Chorus 22.92% price for the frequencies changing on the 1800 MHz spectrum, the (NZD11.5 million). The remainder will hands. Although not highlighted by NBTC has allowed concessionaires be divided among 17 smaller telcos the official, in the wake of the failure True Move and Digital Phone to take and internet service providers (ISPs). of Bharti Airtel’s takeover of Loop care of their 2G mobile users for The draft decision is now open for Mobile, the DoT is also expected to another year after their concessions submissions until 28 November, with a consider M&A norms alongside the expired last September. The 17.5 final ruling due to be published in late rules for mobile number portability megahertz of bandwidth on the 900 December. (MNP). The takeover was delayed by, MHz spectrum is now being used by amongst other things, opposition from Advanced Info Service (AIS), whose the Telecom Regulatory Authority TRA launches SafeSurf concession will expire in September of India (TRAI), which claimed that The Kingdom of Bahrain’s 2015. The NBTC hired the International the transfer of customers from Loop Telecommunication Regulatory Telecommunication Union to jointly to Airtel violated the rules for MNP. Authority (TRA) will organize the Child study details and design the auction Clarity on M&A rules is one of the Internet Safety Orientation “SafeSurf” process, including the reserve price highest priorities for the sector, as Program termed “The Challenge” and the number of licenses. The IM of many of the nation’s larger operators on November 20. Organized in the 1800 MHz has had public hearings are increasingly looking towards collaboration between the TRA and in April and approval by the telecom consolidation in the crowded market. the International Telecommunications committee in May. It is still pending Elsewhere, telcos have been clamoring Union (ITU) and the General approval by the NBTC board. The junta for the DoT to impose a graded Organization for Youth and Sport in June ordered the suspension of the penalty system that will determine the (GOYS), the event coincides with the planned 4G license auctions for one levels of fines based on the severity of International Child’s Day (November year. If the new IM of the 1800 and 900 an operator’s transgression. Having 20) celebrated by the UNGA for the MHz allocation passes all procedures come under greater scrutiny from first time in 1954. Also, on November including public hearings, approval by

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SAMENA TRENDS _ NOV_2014 the NBTC board and the Royal Gazette its first look at the mobile landscape industry and promote investments”. announcement, the government can since the 4G auction and subsequent The IMT Roadmap follows public no longer put the brakes on the 4G super-fast rollouts across the UK. consultations with relevant auctions. The report looked at relative 3G and stakeholders in recent weeks. “It is 4G performance on smartphones in our view that the growing demand Birmingham, Edinburgh, Glasgow, for mobile broadband in South Africa Regulator charts mobile, London and Manchester, on the major indicates a need for more mobile broadband growth networks: EE, O2, Three and Vodafone. broadband bandwidth capacity in According to the latest market It consisted of some 210,000 speed general,” Icasa said. “It is generally indicators from Bahrain’s tests, undertaken indoors and outside, known that many rural areas do not Telecommunications Regulatory by OFCOM engineers between March have access to mobile bandwidth Authority (TRA), by the end of Q3 and June earlier this year. The results indicating a need for a more universal 2014 there were around 2.41 million showed that the average 4G download mobile broadband coverage, a need mobile subscriptions in the country, speed was 15.1Mbps (slightly higher best served by deploying lower up from 2.21 million at the beginning than some other recent stats we’ve frequencies that propagate a wider of the year and representing a seen, but still around the same market.” The regulator added that the mobile penetration rate in excess ballpark), which was considerably roadmap also involves the migration of 180%. The figure is ten times the faster than the 3G average at 6.1Mbps, of a number of current licensees out approximately 246,000 fixed lines in as you’d expect. Actually, that’s a pretty of (or within) bands identified for Bahrain reported by the TRA at end- solid figure for normal 3G surfing… IMT services. “For bands where costs September, down from 251,000 at the Results varied between networks of and benefits of the migration were start of the year. The watchdog also course, with EE boasting the fastest not straightforward the Authority reported that at the end of September 4G speeds at 18.4Mbps, followed by conducted further feasibility studies 1.44 million of these mobile users O2 with 15.6Mbps. Vodafone (which to determine the appropriateness also subscribed to mobile broadband topped another survey for 4G) was of the migration,” the regulator said. services (pay-per-use, add-on or a little behind O2 on 14.3Mbps, but ICASA also published the Draft Radio bundled), a figure representing nearly still fast enough – only Three lagged Frequency Spectrum Assignment 60% of all mobile subscriptions. The behind on 10.7Mbps. When it came Plan (RFSAP) for IMT. The Draft TRA added that at end-3Q14 there to 3G, the operators were all pretty RFSAP seeks to specify the technical were approximately 1.84 million active tightly grouped, with EE top of the tree conditions of the use of the frequency broadband subscriptions in Bahrain, of at 6.8Mbps, followed by Vodafone bands and is aimed at soliciting views which mobile broadband represented on 6.7Mbps, O2 on 5.6Mbps, and from stakeholders on the “Rules for 91% (including standalone mobile Three was unfortunately last again on Services” operating in each frequency broadband services), with fixed 5.2Mbps. It would seem Three’s speeds band. services accounting for just 9%, aren’t the best if you’re in a major city, although it noted that fixed (wired) though it has fared better in other broadband subscriptions have begun performance metrics for 3G across TRA revokes licenses of to increase in volume for the first the country as a whole. When it came companies time in a number of years, following to the cities themselves, the highest The Telecommunications Regulatory the TRA’s decision to deregulate the average download speed across all Authority (TRA) has revoked Al residential/SME fixed broadband operators was recorded by Edinburgh Zubara International Trading’s market and provide greater flexibility at 16.8Mbps on 4G and 7.8Mbps on telecommunication license. This is at the retail level. 3G, with London being the slowest further to the TRA’s notice published on 13.1Mbps and 4.1Mbps (doubtless on May 1 in the Official Gazette and due to the volume of 4G users in the on its website, whereby it informed OFCOM finds 4G is over capital). all stakeholders of its intention to twice as fast as 3G mobile revoke the Individual License for IMT broadband roadmap International Telecommunications broadband speeds Services (ISL) awarded to Al Zubara OFCOM has published some new published on November 25, 2007 pursuant research into mobile surfing speeds, in The Independent Communications to the Telecommunications Law Authority of South promulgated by Legislative Decree Africa (ICASA) No (48) of 2002, asking for comments announced that a on the proposed revocation. Whereas Final International TRA has not received any comments Mobile Telephony from the stakeholders, the license (IMT) Roadmap has has been revoked from the date of its been issued. The publication in the gazette. The TRA IMT Roadmap for also revoked the licenses awarded to broadband seeks Ali Almusallam Company. This was to “ensure universal further to the TRA notice published on availability of August 21 in the Official Gazette and broadband services, on its website, whereby it informed all as well as a vibrant stakeholders of its intention to revoke and competitive the licenses, asking for comments on telecommunications the proposed revocation. The TRA

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SAMENA TRENDS _ NOV_2014 has not received any comments from the types of content that operators summit that ended on Thursday. the stakeholders and the licenses could prioritize over others. Large Queen Rania of Jordan gave a keynote are revoked from the date of their telecoms companies have said they address on Tuesday and launched a publication in the gazette. want to be allowed to provide quicker powerful attack against extremists for internet access to bandwidth-hungry misusing social media to propagate services like Google’s YouTube and their agenda. U.S. auction of AWS-3 Netflix. The draft text also includes airwaves reaches $10 provisions on roaming charges paid by consumers when using their mobile Canada telecom billion reserve price phones abroad. The Commission and regulator starts review The U.S. airwaves auction of so- the European Parliament had pushed called AWS-3 frequencies on Tuesday for an end to such charges by the of fixed-line services breached its reserve price of $10.1 end of next year. But regulators and Canada’s telecom regulator began the billion, according to the Federal member states are concerned about last of three major policy reviews on Communications Commission, less what effect an end to roaming charges Monday as it seeks to strike a balance than a week after bidding began. would have on domestic rates and between ensuring consumers have Bidding went on to reach a total of wholesale prices telecoms operators broad access to new technologies $14.2 billion, though some bidders pay each other when their customers while avoiding rules that would had applied for various discounts travel abroad. The latest text does not discourage investment. The hearing that require a careful calculation to specify a date for the introduction of by the regulator, the Canadian Radio- conclude that the reserve price is met. “roam like at home,” where someone television and Telecommunications The auction is the largest opportunity using, say, a British mobile phone in Commission (CRTC), on the wholesale for wireless carriers to get access Italy would pay the same as if they telecom services market will consider to new airwaves since 2008 and were still in Britain. But it acknowledges whether big telephone and cable although the bidding is anonymous, the need for a specific date to send companies should be forced to share the largest U.S. wireless carrier Verizon a positive signal for consumers at a so-called “last mile” wiring, which Communications Inc, No. 2 AT&T Inc, time of widespread discontent with brings services directly to the retail No. 4 T-Mobile US Inc and satellite Brussels. Member states will discuss customer’s door, with smaller rivals. Due provider Dish Network Corp were the text on Thursday and Friday, and to improved fiber-optic connections, expected to be the biggest bidders. if agreed it will go to ministers when this wiring allows consumers to enjoy they meet in two weeks. greater volumes of streaming online video and to place video calls over the EU leans towards broader Internet, among other benefits. The net neutrality rules TRA chief says new CRTC said on Monday its focus is on European Union governments are business models needed choice and sustainable competition, considering less stringent rules on and it will have decide whether to give how internet service providers manage in ICT sector small players greater access to these traffic on their networks, according New business models are needed lines to foster that competition. Big to a draft seen by Reuters, a move to make ICT (Information and players such as BCE Inc’s Bell Canada that could be welcomed by Europe’s communications technology) and Rogers Communications Inc are large telecoms operators. These so- sector vibrant and sustainable, expected to argue they should be called net neutrality rules are part of Telecommunications Regulatory allowed to maintain control over high- the European Commission’s proposed Authority (TRA) Director General, speed fiber-to-the-premises lines so overhaul of Europe’s telecoms industry Mohammad Naser Al Ganem, said that they can recoup their investments to help it to compete against rivals the at the Abu Dhabi Media Summit. He in these expensive-to-build networks. United States and Asia. Net neutrality is said the media is transforming. “It Quebecor Inc, Shaw Communications the principle that all content providers is impossible to assume that media Inc and Telus Corp are other companies should have equal access on networks. industry is melting into thin air and that are dominant in the market for It has become a hot topic in the United losing its charm and significance. On these services despite the presence States where President Barack Obama the contrary it has become one of the of many smaller competitors. In has said internet service providers most demanding commodities of our recent months, the CRTC has also held should be banned from striking time.” He added that new business hearings on the future of television and paid “fast lane” deals with content models are needed considering the future of wireless. Following the companies. EU lawmakers voted in the new wave of advancement in TV hearings, it has stopped telecoms April for strict net neutrality rules that broadband networks and the power of charging customers cancellation fees barred telecoms operators like Orange internet, which has fuelled the media for not giving enough notice that they and Telefonica from prioritizing some sector. “Let us not forget to modernize are ending service. On wireless, it is internet traffic over others. But the the regulatory framework that will considering mandated tower-sharing latest draft of the reform proposal support the new business model and roaming rules. shows that member states are leaning and let us think regional and global toward a looser approach which in these new models and unlock the only bars internet service providers potential for our local markets,” Al from applying traffic management Ghanim said. “The challenges ahead measures which “block, slow down, not just to encourage investment alter, degrade or discriminate against but we must contribute towards specific content.” It does not define innovative initiatives.” A large number net neutrality or so-called “specialized of media professionals and investors services,” which would have specified participated in the three-day media

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SAMENA TRENDS _ NOV_2014

ICT Trends in Jordan

Ever since its establishment in 1996, can be used for the provision of 4G the Telecommunications Regulatory services in Jordan. Commission (TRC) of the Hashemite Kingdom of Jordan has maintained an This endeavour resulted in the licensing outstanding track record of actively of two lots of 10+10 MHz spectrum in pursuing the development and the 1800 MHz band to Zain-Jordan in modernisation of the Telecommunications May 2014. Ever since, Zain-Jordan has and Information Technology markets been diligently working at deploying the in the Kingdom. Such pursuit has necessary network elements, and the always been in the form of ensuring 4G services are expected to be available that sufficient regulatory instruments throughout the country in the first are readily available and applied in the quarter of 2015. relevant markets, and that the market players are treated fairly and firmly in their observance of such regulations. Among the most recent endeavours of the TRC in these markets are two notable achievements; the facilitation of the introduction of 4G Mobile services, and the Licensing and Accreditation of Electronic Authentication Entities.

Introduction of 4G Mobile Services. Mohammad Izzat Al Taani After having facilitated the introduction Chairman of the Board of of 3G mobile services by the three Commissioners/ CEO incumbent Jordanian mobile operators The Telecommunications Regulatory (Zain-Jordan, Orange-Mobile and Commission (TRC) - Jordan Umniah) in 2009/2010, the TRC worked hard at ensuring the availability of the requisite radio frequency spectrum that

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SAMENA TRENDS _ NOV_2014

TRC believes that the other two 2014, and the “Instructions” to be mobile operators (Orange-Mobile and issued in early 2015. Umniah) will also be keen to follow suit in the deployment of mobile high speed data services. Telecom Indicators The TRC maintains a regular tracking The introduction of 4G services and follow up of the developments in Jordan is expected to further in the telecommunications sector in enhance the use of mobile broadband Jordan. This is published in the form of communications throughout the quarterly bulletins covering the latest country and to contribute to the social indicators in the fields of fixed and and economic development of Jordan. mobile telecommunications markets. The latest set of indicators for Q1 and Electronic Authentication Q2, 2014 is as follows: In performance of a specific provision in the Electronic Transactions Law of Jordan, the TRC worked together Penetration Q1 2014 Q2 2014 with other concerned parties on Fixed telephony 5.2% 5.1% drafting a by-law that addresses the details and procedures for licensing Mobile Active 143% 146% subscriptions and accreditation of specialized entities that issue and verify electronic signatures in Jordan. The by-law, Internet Users 73% 73% which identifies the TRC as the official Certification Authority (Root CA) for Internet Sub- 21% 21% electronic authentication in Jordan, scriptions was issued by a decree of the Council of Ministers in July 2014.

Currently, the TRC is working on the practical steps for the implementation of the provisions of the said by- law in regulating the selection and licensing/accreditation of qualified entities that will undertake the function of Electronic Authentication in Jordan. For that purpose, the TRC prepared a draft regulatory document (Instructions) and launched a public consultation process through which comments and suggestions would be received and discussed in order to arrive at the best possible draft of the said “Instruction”, which will be subsequently approved and issued by the Board of Commissioners of TRC. The consultation process is expected to be concluded before the end of

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SAMENA TRENDS _ NOV_2014

A SNAPSHOT OF REGULATORY ACTIVITIES IN SAMENA REGION

Algeria the French group’s head of strategy and President: Mr. Toufik development, disclosing in January 2013 Bessai that Algeria – as a large, underdeveloped [Regulatory Authority for market – was strategically interesting, Post & Telecommunication noting that any progress would be slow. (ARPT)] (November 27, 2014) Algerie Focus

The government has reportedly refused The International Telecommunication an offer by French telecoms giant Orange Union (ITU) adopted the proposals Regulatory Group to acquire a stake in mobile operator presented by Algeria on behalf of the Arab Mobilis, which is currently a wholly countries during the 19th plenipotentiary Updates owned subsidiary of state-backed telco conference, held in Busan (South Korea) Algerie Telecom (AT). Secretary General from October 20 to November 7, 2014. of the Ministry of Post and Information It is about, according to Ministry of Post Technology and Communication, said and Information and Communication in a letter to the French group: ‘after Technologies, amendment of Resolutions consulting with [the country’s] leaders, it 130 and 174. The Resolution 130 focuses has been concluded that [the injection on “the strengthening of ITU’s role in of] capital is inappropriate in the current the establishment of trust and security circumstances.’ In October 2013 local relationship when using information and media reports suggested that the communication technologies.” According Conseil des participations de l’Etat (CPE), to the communiqué, this amendment the agency in charge of managing the aims at “establishing a trust framework in Algerian government’s stake in state- terms of exchanging electronic data at the owned business entities, was planning regional and international levels between to sell the shares of ten nationalized the administrations and individuals companies, including AT, to the public. and taking the necessary measures to Further, in April 2014 it was suggested secure infrastructures and fight against that the government was planning to put cybercrime.” “The developing countries 20% of Mobilis’ share capital up for sale are called to set up frameworks of trust on the country’s bourse. Orange Group in the exchange of information on the has long harbored ambitions to enter basis of appropriate criteria, use the best the Algerian market, with Elie Girard, practices adopted by ITU and benefit

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SAMENA TRENDS _ NOV_2014 from the resources and services offered by the public Bangladesh sector and regional and international organizations.” Resolution 174 deals with the ITU’s role concerning Chairman: Sunil Kanti Bose the international political issues related to the dangers [Bangladesh Telecommunication Regulatory of the illicit use of information and communication Commission (BTRC) technologies. This resolution aims at “establishing high- level international cooperation relations under ITU’s The telecom regulator has sought public opinion to chairmanship, allowing to assess the potential risks on introduce the mobile number portability (MNP) system the national and international security by using these for cell phone customers, what it claims the initiative technologies for illicit and non-peaceful purposes.” as customers friendly. Issuing a statement recently the Bangladesh Telecommunication Regulatory Commission (November 12, 2014) aps.dz (BTRC) asked the customers to provide their feedback regarding the issue by December 20, 2014. Currently, Bahrain some 72 countries including the neighboring India and Chairman: Dr. Mohammed Al Amer Pakistan have already adopted the popular system for [Telecommunication Regulatory Authority their customers, whereas Singapore is the pioneer in the (TRA)] field. By middle of the last calendar year, the regulator had urged the country’s telecom operators to introduce The Telecommunications Regulatory Authority the MNP system within next seven months that ended in (TRA) has revoked Al Zubara International Trading’s January, 2014. However, the operators failed to make any telecommunication license. This is further to the TRA’s progress within the deadline to implement the system. notice published on May 1 in the Official Gazette and (November 19, 2014) thefinancialexpress-bd.com on its website, whereby it informed all stakeholders of its intention to revoke the Individual License for International Telecommunications Services (ISL) awarded Egypt to Al Zubara on November 25, 2007 pursuant to the Executive President: Eng. Hesham El Telecommunications Law promulgated by Legislative Alaily Decree No (48) of 2002, asking for comments on the [National Telecommunication Regulatory proposed revocation. Whereas TRA has not received any Authority (NTRA)] comments from the stakeholders, the license has been revoked from the date of its publication in the gazette. Egyptian mobile telecoms firm Mobinil said it might The TRA also revoked the licenses awarded to Ali reject the government’s offer of a landline services Almusallam Company. This was further to the TRA notice license, aimed at boosting competition in the telecoms published on August 21 in the Official Gazette and on market, unless it is allowed to build its own fixed-line its website, whereby it informed all stakeholders of its infrastructure. The government approved in September intention to revoke the licenses, asking for comments on a new unified licensing which would allow the state the proposed revocation. The TRA has not received any fixed-lined monopoly Telecom Egypt (TE) to enter the comments from the stakeholders and the licenses are mobile market while in return allowing the three mobile revoked from the date of their publication in the gazette. network operators to enter the landline market. (November 19, 2014) gulf-daily-news.com (November 25, 2014) reuters.com

According to the latest market indicators from Bahrain’s Communications and Information Technology Minister Telecommunications Regulatory Authority (TRA), by the said that progress within other sectors relies on end of Q3 2014 there were around 2.41 million mobile reform within the country’s ICT sector. In addition to subscriptions in the country, up from 2.21 million at bolstering Egypt’s education and health sectors, creating the beginning of the year and representing a mobile jobs is on the top of the list for the country, which is penetration rate in excess of 180%. The figure is ten working hard to rebuild its political and infrastructural times the approximately 246,000 fixed lines in Bahrain landscape. “There’s no doubt that the technology and reported by the TRA at end-September, down from communications sector is one of the [most] competitive 251,000 at the start of the year. The watchdog also when it comes to investment,” Minister told. “As part reported that at the end of September 1.44 million of of building our new Egypt and modern Egypt, ICT is a these mobile users also subscribed to mobile broadband cornerstone to do that.” (November 11, 2014) afkinsider.com services (pay-per-use, add-on or bundled), a figure representing nearly 60% of all mobile subscriptions. The TRA added that at end-3Q14 there were approximately Iran 1.84 million active broadband subscriptions in Bahrain, Minister of Communication & Information of which mobile broadband represented 91% (including Technology: standalone mobile broadband services), with fixed Mr. Mahmoud Vaezi services accounting for just 9%, although it noted that [Communication regulatory Commission (CRC)] fixed (wired) broadband subscriptions have begun to increase in volume for the first time in a number of MTN Irancell has launched the country’s first 4G Long years, following the TRA’s decision to deregulate the Term Evolution (LTE) network in the city of Mashhad. residential/SME fixed broadband market and provide The launch comes in the wake of Irancell’s recent greater flexibility at the retail level. introduction of 3G networks in more than 60 cities, (November 17, 2014) telegeography.com following the government’s relaxation of restrictions on internet access for private users. At launch, 4G services are available via dongles, with very few LTE-enabled handsets available in Iran. Irancell’s CEO said in a

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SAMENA TRENDS _ NOV_2014 statement that 4G users can expect real-world download in Baghdad and southern Iraq, so the company has speeds ranging from 10Mbps to 40Mbps upload speeds suffered less in the tumult since Sunni Muslim militant from 1Mbps to 15Mbps, and latency from 50 to 150 group Islamic State seized much of the north and west milliseconds. (November 25, 2014) telegeography.com of the country this year. Asiacell grew from its base in the Kurdish city of Sulaymaniyah. Its fuel and security costs have increased, transmitter tower maintenance is Iraq more difficult and the government’s periodical blocking Chairman: Dr. Saffa Al Din of social media and some websites has affected its data [Communication & Media Commission business, parent Ooredoo said in reporting its third- (CMC)] quarter results. Asiacell’s nine-month revenue fell 9.5

percent to 4.8 billion Qatari riyals (US$1.32 billion) and Zain’s Iraqi subsidiary has been granted a 3G license its net profit dropped 38 percent over the same period by the telecoms regulator. Zain Iraq recently paid the to 868 million riyals. (November 6, 2014) dailymail.co.uk first installment fee amounting to US$76.75 million representing 25% of the overall 3G spectrum fee of

US$307 million. In anticipation of receiving the 3G Jordan spectrum license, Zain Iraq commissioned Ericsson, Chairman of the Board of Commissioners/ Huawei and Nokia Networks to expand and upgrade the CEO: network with Single-RAN technology, thus allowing Zain Mr. Mohammad Al Taani Iraq to quickly roll-out 3G commercial services across the [Telecommunication Regulatory Commission country. Commenting on the award of 3G spectrum, Zain (TRC)] Group CEO said, “Zain views the launch of 3G services in Eighty Jordanian experts from both public and private Iraq as a complete game-changer for the country, which sector discussed risks of cyber crimes at a two-day forum, today measures less than 15% broadband penetration. titled “Cyber Crimes - Challenges and Solutions”, being We have already invested heavily in making the held in Amman. In the forum’s opening speech, Director network 3G ready and our target is to be commercially of the Public Security Department (PSD) delegate operational by January 2015, allowing Iraqi customers to Major General Abdul Hadi Al Dmour said that statistics enjoy and benefit from widespread 3G coverage.” As of indicate that the number of Internet users in Jordan has today, data related revenues (excluding SMS and Value reached 5.7 million, accounting for 73 percent of the Added Services) represent only 4% of Zain Iraq’s total Kingdom’s population. He explained that the revolution revenues reflecting an annual growth rate of 12%. Zain in transport, telecommunications and information Iraq employs over 3,000 staff and is the largest operator technology reflected on humanitarian activities both in the country with over 4,000 mobile network sites positively and negatively. Criminals also exploit such serving 13.3 million customers. technologies and software to carry out traditional crimes (November 16, 2014) cellular-news.com with modern electronic methods. He added that the PSD adopted a royal vision in putting up scientific and Iraq’s mobile phone network operators have agreed to well thought out strategies to combat crime during the pay $307 million each for radio spectrum, enabling them 2013-2016 period, based on community partnership, to launch higher-speed 3G mobile internet services in international cooperation and legislative axis to form the war-torn country in two months, a senior official at an integrated security system. The forum will present 10 the national regulator told Reuters. Iraq is one of the few working papers focused on the types of cyber crimes, Middle East countries still reliant on 2G networks, which technology and malicious software used to commit mostly carry voice calls and SMS texts and only the most them, the threats these pose, and modern techniques basic online services, while fixed line internet connections and standards that can be followed to avoid and reduce are expensive and unreliable. The three mobile network cyber crime. (November 7, 2014) www.zawya.com operators Zain Iraq, the Ooredoo, Asiacell, and Orange have been waiting for several years to begin 3G services. In October sources familiar with the matter said the Lebanon government wanted the companies to each pay US$307 Acting Chairman & CEO: Dr. Imad Hoballah million for the spectrum, much to their dismay. But [Telecommunication Regulatory Authority the companies have now agreed to this fee and made (TRA)] down payments of US$73 million a few days ago. The companies will settle the remainder in four installments Lebanese Telecoms Minister Boutros Harb told that over the following 18 months, the first of which will be major international mobile operators such as Saudi paid at the signing of the 3G contract on November 10. Telecom Company (STC), Orange Group, Zain Group and There will be a two-month testing period before the Etisalat are interested in bidding in an upcoming process commercial launch of 3G. CMC hope that this service which he hopes will see two-year contracts awarded to will offer job opportunities for a high number of people. manage Lebanon’s two state-owned cellular networks, The operators each paid US$1.25 billion for 15-year in place of the short-term rolling contracts currently licenses in 2007. These permits were technology-neutral, held by Zain and Egypt’s Orascom Telecom. Harb said meaning they did not require a separate 3G license, only that ‘great interest’ was confirmed by various potential the spectrum, so the operators were opposed to paying bidders within the framework of the minister’s recent extra fees, especially when their profits are in retreat. visits to Dubai, South Korea and China. In October Harb Zain Iraq’s nine-month profit to September 30 fell 14 extended the management contracts for Touch (Zain) percent to US$224 million, outpacing a 4 percent drop in and Alfa (Orascom) for six months to give the telecoms revenue to US$1.24 billion, as it suffered from temporary ministry time to finalize terms and conditions and gain network shutdowns and higher network operating costs state approval for the longer-term contracting process. due to the civil war. Zain’s subscribers are concentrated During the mooted two-year management period, Harb intends to push for implementing delayed telecoms

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SAMENA TRENDS _ NOV_2014 sector reforms as per Law 431 of 2002, which stipulates launching a tender to select an adviser for the process. the transformation of state-owned incumbent fixed line The watchdog set a deadline of August 23, 2012 for the operator Ogero into Liban Telecom, an integrated telco submission of bids, and the winner’s main responsibility licensed for all mobile/fixed services and earmarked was outlined as assisting ANRT with the setting of for privatization. Harb explained that the government terms and conditions, including deciding on how many would look to attract a major international strategic concessions are to be made available. The regulator partner ‘such as Vodafone or Orange’ to take a 40% initially planned to award 4G licenses at the start of 2013 stake in Liban Telecom, thereby significantly boosting with commercial launches following by the end of that competition. (November 19, 2014) Daily Star year at the latest, although the tender has since been postponed on several occasions. Last week incumbent operator Maroc Telecom, which was authorized to trial Morocco LTE technology in Rabat, achieved maximum download Director General: M. Azdine El speeds of 140Mbps over its test network. MountassirBillah (November 11, 2014) telegeography.com [Agence Nationale de Reglementation des Telecommunications (ANRT)] Nepal Telecommunications Regulatory National Agency Acting Chairman: Mr. AnandaRaj Khanal launched a competitive bidding process on November [Nepal Telecommunication Authority (NTR)] 17, calling for applications for licenses for the establishment and operation of telecommunications Nepal’s Parliamentary Development Committee has networks using 4th generation mobile technologies called on the country’s telecoms regulator, the Nepal (4G). Maroc Telecom, Meditel, and Inwi will be able Telecommunications Authority (NTA), to take over the to compete in this long-awaited auction, the key to management of mobile phone towers in the country in Morocco to begin benefiting from 4G technologies order to facilitate network sharing between operators, as advantages and maintain its position as an African well as to curb public fears over health risks caused by leader in the communications space. In parallel with radiation from mobile masts. The Ministry of Information the auction, all the operators have started their testing and Communication is being urged to push ahead with on 4G-LTE (Long Term Evolution). Maroc Telecom fiber-optic network rollouts in areas not yet reached conducted a successful test in Rabat, Meditel profited by broadband infrastructure, while also ensuring that from the Global Entrepreneurship Summit 2014 held the country’s Rural Telecommunications Development in Marrakesh to provide participants a 4G roaming Fund (RTDF) is managed and utilized efficiently. There service, and Inwi announced that it has conducted tests is currently around NPR10 billion (US$100 million) carried out in the region of Mohammedia using LTE. The available in the RTDF, but there have been complaints goal of these tests for the operators is to validate their that the fund is not being used effectively. technological choices, and demonstrate their readiness (November 13, 2014) eKantipur.com to rapid implementation once their license has been granted by the ANRT. 4G-LTE is a mobile broadband The government of Nepal has unveiled its new National technology capable of delivering a peak download Broadband Policy 2014, under which it hopes to spur rates up to 100 Mbit/s and upload rates up to 50 Mbit/s the development of high speed internet services in depending on the user equipment category, and it offers the country. The document, which has been prepared low data transfer latencies of less than 5ms. This efficient by sector regulator the Nepal Telecommunications technology will provide a better user experience to Authority (NTA), aims to have at least 30% of households customers. 4G LTE mobile networks offer faster Internet subscribing to a broadband service by 2018, up from connections on mobile devices, including streaming around 5% currently, with networks passing at least 45% music, video conferencing, video chat, multiplayer of premises by that date. In addition, the NTA wants to gaming, and network sharing. They also provide see the price of entry-level services brought down to application developers more options on mobile devices below 3.5% of per-capita income, or NPR208 (US$2.10) for gaming, banking, socializing, shopping and watching a month, from the existing level of 17% of income. videos. Economically speaking, the introduction of 4G According to a report from the Himalayan, other targets is expected to revive the telecom industry in Morocco. set by the policy include expanding broadband internet 500 million euros is expected to be invested in the service to 70% of village development committees within deployment process of 4G-LTE, and the increased usage three years of implementation of the policy, connecting of mobile network services should increase operators’ 20% of public secondary schools with a service of at revenues and consolidate competition between them. least 1Mbps, and introducing broadband access to all The increased cost of deploying 4G-LTE network state-owned hospitals and at least 15% of health posts necessary will affect the tariffs for such services, which by 2018. (November 11, 2014) telegeography.com will be undoubtedly higher than the rates for 3G. With an expanding customer base, it is expected that 4G will Nepal’s government has collected a total of NPR4.76 eventually be available in cheaper packages, but their billion (US$47.8 million) in spectrum fees and royalty availability will take time. Most likely it will be around payments for the 2014/15 financial year. NPR3.42 billion 3-5 years before Moroccans can easily make use of this of the total came from the 4% of revenues which 19 firms technology. (November 25, 2014) moroccoworldnews.com must pay as a royalty each year; the two main wireless operators Ncell and Nepal Telecom (NT), paid the lion’s ANRT has announced that the country’s long-anticipated share of the total at NPR1.96 billion and NPR1.40 billion auction for 4G Long Term Evolution (LTE) mobile licenses respectively. The government has also collected NPR1.34 will be launched on November 17, 2014. The ANRT billion in spectrum fees from four firms: Ncell, NT, United began preparing for the 4G licensing process in 2012 by Telecom Ltd (UTL) and Nepal Satellite Telecom (NST). (November 10, 2014) The Himalayan

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The government has not been able to collect Rs 3.27 figures, the total number of fixed broadband subscribers billion royalty that Nepal Telecom had committed to increased by 7.8 per cent reaching 166,257 as compared pay. Neither Nepal Telecommunications Authority nor to 154,290 registered at the end of 2013. Meanwhile, the Ministry of Information and Communications seem Internet dial-up subscribers rate declined by 27.6 per serious to recover the dues, which will directly go to cent at the end of September 2014 to 3,177 compared the government coffers. The outstanding revenue is the to 4,388 registered by the end of 2013. The total fixed royalty which NT had agreed to pay while obtaining the telephone lines also saw an increase of 3.5 per cent by license to operate cellular mobile service in the country the end of September this year with 363,610 lines when 15 years ago. Going by the government provision, NT and compared to 351,411 by the end of last year. However, two private sector companies Ncell and United Telecom the number of fixed post-paid telephone lines declined Ltd are responsible to pay the committed royalty each by 0.5 per cent from 271,400 by the end of 2013 to year during the first 10 years of service operation. Both 270,025 by the end of September 2014. The fixed pre- NT and Ncell were required to pay Rs 3.90 billion each paid telephone lines, however, increased significantly by as royalty. The state-owned company did pay Rs 635 52.9 per cent to 39,480 when compared to 25,829 by million in the first 10 years under a separate provision the end of 2013. Meanwhile, there was no change in the of four per cent of annual income as royalty. But it is number of public phone lines at 6,801. The NCSI report yet to clear the remaining dues for fiscal years 1998-99 ‘Main Telephone Lines by Governorate’ states, Muscat to 2007-08. The state-owned telecom service provider governorate registered the highest increase in number has been claiming that it is not required to pay the of fixed telephone lines by the end of September 2014 committed royalty like other companies that entered totaling 177,880 compared to 168,676 by the end of the market through competition. “From a legal point 2013, an increase of 5.5 per cent. Other governorates of view, we do not have to pay this revenue and NTA also witnessed increases with the total number of has also been informed about this,” said Budhi Acharya, fixed lines going up in Dhofar to 27,571 by the end of managing director of NT. But NTA said NT had to pay September 2014 in comparison to 26,679 by the end of the dues as agreed earlier. Initially, NTA failed to pressure 2013, reflecting an increase of 3.3 per cent. Dakhliyah NT after Ncell moved the Supreme Court against the also recorded an increase in the number of fixed lines by committed royalty provision. However, in 2012 Ncell lost 1.9 per cent to 22,286 when compared to 21,872 by the the case. “NT is reluctant to clear the dues despite many end of 2013. (November 17, 2014) zawya.com instructions from us,” said an official at NTA, seeking anonymity. The official said since MoIC is the line ministry, it had to direct NT to pay the revenue, as the Pakistan secretary of MoIC is also chairman of NT board. Sushil Chairman: Dr. Syed Ismail Shah Ojha, joint secretary at MoIC and a member of NT board, [Pakistan Telecommunication Authority (PTA)] said, “Being the regulator, it is the duty of NTA to collect the committed royalty, if there is any.” Ncell, after losing Chinese-backed mobile provider China Mobile the case, cleared its committed royalty by paying its last Pakistan (CMPak), which trades under the Zong installment of one billion rupees to the government this name, has been issued a show cause notice by the year. Each year many companies don’t clear royalty on Pakistan Telecommunications Authority (PTA). The PTA time and despite a provision in Telecommunications Act has accused Zong of illegally accepting 2.2 million to impose a fine of Rs 50,000 on those who fail to uphold international calls – amounting to around eleven million NTA’s instruction and Rs 5 lakhs for not obeying rules minutes of traffic – through IPs that were originally mentioned in the license, NTA hasn’t been strict with its intended for the provision of GPRS/EDGE services. The watchdog claims to have identified the calls through licensees, said the official.(November 7, 2014) thehimalayantimes.com its Grey Traffic Monitoring System, which was installed under the International Clearing House (ICH) policy at a Oman cost of USD30 million. The cellco faces a potential fine Executive President: Dr. Hamed Al-Rawahi of up to PKR350 million (USD3.44 million) if found guilty. [Telecommunication Regulatory Authority (November 24, 2014) pro pakistani.com (TRA)] Pakistan Telecommunication authority has established Mobile phone subscriptions in the sultanate have a dedicated cell to handle complaints relating to SIM increased by 6.8 per cent to reach 6mn till September 2014, issuance and related matters, a statement just issued against 5.6mn registered at the end of 2013. According by the authority said. It may be recalled that PTA had to a report titled, ‘Number of Telecom Subscriber Service announced that no new SIM will be issued without by Type’ released by the National Centre for Statistics biometric verification after August 1st, 2014. SIM and Information (NCSI), 383,815 subscribers registered replacements are also issued after biometric verification. in the first nine months alone this year. Breaking down This rule is now in place throughout Pakistan and no the subscription types, the number of postpaid mobile cellular SIM can be issued without biometric verification subscribers reached 515,431 by the end of September of the the subscriber. Not to mention, maximum of five 2014 when compared to 495,703 at the end of 2013, SIMs on one CNIC rule is also in place. Meaning that registering an increase of four per cent. During the if a customer has more than 5 SIMs registered on his/ same period, pre-paid mobile phone subscribers also her name then he/she can’t be issued a new SIM. In increased by 7.1 per cent reaching 5.4mn as compared order to get any new SIM the subscriber will have to to 5.1mn by the end of 2013. The report also states that get his/her earlier SIMs blocked to bring the total count the number of Internet subscribers increased to 169,434, of SIMs on a CNIC to below five. Newly established a growth of 6.8 per cent when compared to 158,678 by monitoring Cell is aimed at enhancing the efficacy of the the end of 2013. This figure comprises fixed broadband SIM issuance process. The Cell shall receive complaints and dial-up Internet subscribers. Breaking down the from Law Enforcement Agencies and the general public

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SAMENA TRENDS _ NOV_2014 through various channels. The complaints shall be current Interconnection Guidelines were issued in 2003’. investigated and results shall be shared with relevant The CITC said that the updated Guidelines for Access to quarters for taking remedial measures. General public is Physical Facilities will establish rules governing access encouraged to come forward and inform PTA regarding to physical facilities, including collocation and sharing any complaints and violation observed in issuance of of physical facilities; provide a framework for access SIMs. (November 21, 2014) propakistani.pk to physical facilities and networks in a technologically neutral manner; foster investment in and deployment of next generation networks (NGN); and establish a Qatar process for dealing with access disputes, among other Executive Director: Mr. Graeme Gordon things. The draft Interconnection Guidelines, meanwhile, [Communications Regulatory Authority (CRA)] seek to ensure that all service providers are treated fairly and in a non-discriminatory manner, with respect The Information Technology sector of Qatar is likely to to the provision of interconnection services, to ensure clock a healthy growth of around 14-15 percent in the good practice with respect to interconnection services current year, mainly driven by software sales. The growth between service providers and to promote the provision in spending was around 10-11 percent in the last couple of high quality services for interconnection through of years. “As per IDC (International Data Corporation), technical and economic efficiency. The CITC has invited the growth in IT spending in Qatar is likely to be around all interested parties to provide their feedback on the 14-15 percent in 2014. This kind of growth is healthy draft documents by 2 February 2015. considering the growth in previous years in IT spending (November 12, 2014) telegeography.com was around 10-11 percent,” Habib Mahakian, Regional General Manager, Gulf and Pakistan, EMC Corporation Saudi Arabia and Finland signed a memorandum of told The Peninsula on the sidelines of conference on understanding in the telecommunications sector. Krista information technology held recently in Doha. He Kiuru, Finland’s minister of education, science and added that software and services have contributed communications, signed the agreement with Mohamed most to the sector’s growth. The growth in Qatar’s IT Jamil bin Ahmed Mulla, Minister of Communications and market is in line with growth in the GCC countries. The Information Technology. “It is a wide ranging agreement IT sectors in neighboring countries have grown in the in Information and Communication Technology to range of 12-15 percent in the last few years. Qatar’s IT further enhance bilateral cooperation,” Kiuru said. This market growth is driven by high private consumption includes broadband, digital media and cyber security. and government spending. The prospects of IT sector Nokia has already done a great deal in facilitating are bright according to industry watchers. The computer further cooperation between the two countries, she hardware sale is likely to be around QR4.34bn in 2018 said. Kiuru said her visit was “an effort to seek wide- showing a compound annual growth rate (CAGR) of 9 ranging cooperation of mutual interest.” Her priorities percent, said Business Monitor International in a report. are education and communication because Finland Despite high PC penetration, high incomes will foster is one of the world’s leaders in these sectors. She said multiple device ownership as tablets and other new Finland has agreements on education in the Kingdom, touch form factors make up a larger share of sales. with the Technical and Vocational Training Corporation Software Sales is likely to be QR2.16bn in 2018, showing (TVTC) and a kindergarten program. “We believe in a CAGR of 13.2 percent while IT Services sales likely to quality education. We would like to make sure that be around QR3.8bn in 2018 reflecting a CAGR of 14.4 our sources are reliable and ensure vocational training percent. According to Business Monitor International, faces up to the challenges of the growing Saudi market.” services are expected to perform well in the IT market in Kiuru is accompanied by a huge delegation comprising the medium term due to demand for cloud computing, senior officials and technical experts in education and smart systems and security services from the public and telecommunications. She said that many countries are private sectors. “ICT has been a major beneficiary of seeking to follow the model of the Finnish education government policies to diversify Qatar’s economy away system, which is free for citizens, as it is in Saudi Arabia. from hydrocarbons, notably through ictQATAR’s ICT- The minister visited several institutions of higher learning 2015 strategy and the government’s push to build smart in Riyadh including King Saud University, the TVTC, King cities,” said Business Monitor International in its Qatar Abdullah Project for Public Education Development Information Technology Report. “These government (Tatweer) and Princess Nora bint Abdulrahman University, initiatives have led to ambitious investments in network which “impressed” her. She also met with members of the infrastructure which will encourage broader take-up Shoura Council to discuss further cooperation including of IT services as well as development of innovative IT a student exchange program. Kiuru said that Finland has systems,” it said. (November 5, 2014) zawya.com invited the Saudi telecoms minister to Helsinki to bolster cooperation in the field.(November 6, 2014) zawya.com

Saudi Arabia telecom sector remains a key concern, he said. Despite Governor: Eng. Abdullah A. Al Darrab the expected growth of revenues, key strengths of the [Communication & Information Technology sector come from attractive valuations and high dividend Commission (CITC)] yield, he said. He gave preference to STC based on its strong balance sheet, potential of higher dividends and The Communications and Information Technology attractive P/E of 12.0X for next year (2015), the paper Commission (CITC) has opened a public consultation on said. The report said frequent and high dividend yields draft Interconnection Guidelines and new Guidelines for are the sector’s key strength. The current dividend yield Access to Physical Facilities. The watchdog highlighted for the telecom sector is 4.3 percent compared with that the decision was taken in order to reflect ‘the nearly 2.6 percent for the Saudi stock market (TASI). STC technological and market developments in ICT since the and Mobily are among few companies in the market

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SAMENA TRENDS _ NOV_2014 that pay quarterly dividends, the report said. The analyst Cape Verde, Thailand, Oman, Qatar, Belarus, Bosnia expected that growth in the telecom will continue in the & Herzegovina, and Georgia. Bahrain is ranked 27th, next two years driven by the data sector and, further, followed by UAE at 32nd, Qatar at 34th, Saudi Arabia by the growing penetration rates of the low-cost at 47th and Oman at 52nd. IDI values are on average Smartphone sets. (October 5, 2014) arabnews.com twice as high in the developed world than in developing countries. Dr Hamadoun I. Touré, Secretary-General of ITU, said that over three billion people are now online Turkey and ICT growth remains buoyant in just about every Chairman & CEO: Dr. Tayfun Acarer country worldwide. “The number of internet users in [Information & Communication Technologies developing countries has doubled in five years (2009- Authority (BTK)] 2014), with two thirds of all people online now living in the 4G Long Term Evolution (LTE) services are likely to be developing world. Of the 4.3 billion people not yet using introduced in Turkey in ‘early 2015’, Turkcell CEO Sureyya the internet, 90 per cent live in developing countries. In Ciliv told, noting that the exponential growth of data the world’s 42 Least Connected Countries (LCCs), which traffic in the country has made the evolution from 3G to are home to 2.5 billion people, access to ICT remains 4G a necessity. Ciliv claimed that data use has increased largely out of reach, particularly for those countries’ 100% year-on-year since 3G services were introduced large rural populations. An estimated 450 million people in Turkey in 2009. Further, Ciliv claimed that Turkcell’s worldwide live in places which are still out of reach of competitors had previously been opposed to the idea of mobile cellular service. Encouragingly, the report notes introducing 3G services in the country, despite Turkcell’s substantial improvements in access to international enthusiasm for the technology. Turkcell’s LTE tests date bandwidth in poorer countries, with developing nations’ back to 2011, with the cellco also trialing LTE-Advanced share of total global international bandwidth rising from (LTE-A) technology in August 2013. just 9 per cent in 2004 to over 30 per cent today. But lack (November 13, 2014) Today’s Zaman of sufficient international internet bandwidth in many of the LCCs remains an important barrier to ICT uptake in Turk Telekom has reported revenue of TRY3.512 billion these countries, and often limits the quality of internet (US$1.574 billion) for the three months ended September access. “It is precisely in poor and rural areas where 30, 2014, up 4.4% year-on-year. EBITDA increased 4.4% ICTs can make a particularly significant impact,” said to TRY1.362 billion, while operating profit for the third Brahima Sanou, Director of ITU’s Telecommunication quarter edged up 0.7% on an annualized basis, to TRY869 Development Bureau. By the end of this year, Sanou million. Meanwhile, net profit (before minority interest) said that almost 44 per cent of households globally will jumped 35.2% from TRY229 million to TRY310 million have internet access at home, up from 40 per cent last in the period under review, chiefly due to ‘less severe year and 30 per cent in 2010. In the developed world, 78 foreign exchange conditions’ compared to the year-ago per cent of households now have home internet access, period. CAPEX for the third quarter of 2014 decreased compared to 31 per cent in developing countries, and 20.7% to TRY511 million. In operational terms, Turk just 5 per cent in the 48 UN Least Developed Countries. Telekom’s broadband customer base rose 4.4% to 7.5 (November 25, 2014) zawya.com million by October 1, 2014, of which 715,000 were said to be fiber-to-the-home (FTTH) customers, an annual New business models are needed to make ICT sector increase of 60.4%. Meanwhile, the telco’s mobile unit vibrant and sustainable, Telecommunications Regulatory Avea saw its subscriber base grow 15.0% y-o-y to 16.2 Authority (TRA) Director General Mohammad Naser Al million; of these, 7.6 million were on post-paid plans, up Ganem said. He said the media is transforming. “It is 21.6% y-o-y. Finally, the number of Turk Telekom fixed impossible to assume that media industry is melting voice subscribers fell 8.3% y-o-y to 11.7 million. into thin air and losing its charm and significance. On (November 4, 2014) telegeography.com the contrary it has become one of the most demanding commodities of our time.”He added that new business models are needed considering the new wave of United Arab Emirates advancement in broadband networks and the power Director General: Mr. of internet, which has fuelled the media sector. “Let Mohamed Nasser Al Ghanim us not forget to modernize the regulatory framework [Telecommunication that will support the new business model and let us Regulatory Authority (TRA)] think regional and global in these new models and The UAE has made the biggest change in country unlock the potential for our local markets,” Al Ghanim rankings by jumping 14 places to 32 as per International said. “The challenges ahead not just to encourage Telecommunication Union’s 2014 ICT Development investment but we must contribute towards innovative Index (IDI) released. The measurement ranks 166 initiatives.” A large number of media professionals and countries according to their level of ICT access, use and investors participated in the three-day media summit skills. In terms of regional comparisons, Europe’s average that ended on Thursday. Queen Rania of Jordan gave IDI value of 7.14 remains well ahead of the next best- a keynote address on Tuesday and launched a powerful performing region, the Commonwealth of Independent attack against extremists for misusing social media to States (CIS — 5.33), followed by the Americas (4.86), propagate their agenda. (November 21, 2014) gulfnews.com Asia & the Pacific (4.57), the Arab States (4.55), and Africa at 2.31. The CIS and the Arab States showed the highest improvement in regional IDI averages over the past 12 months. The report identifies a group of ‘most dynamic countries’, which have recorded above-average improvements in their IDI rank over the past 12 months. These include (in order of most improved): UAE, Fiji,

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REGULATORY ACTIVITIES BEYOND THE SAMENA REGION

Argentina 834MHz paired with 875.25MHz- 879MHz (Lot 2); 1890MHz-1892.5MHz Argentina has begun paired with 1970MHz-1972.5MHz awarding the spectrum (Lot 5); 1862.5MHz-1867.5MHz paired it auctioned last month, with 1942.5MHz-1947.5MHz (Lot 6); naming America Movil’s and 1730MHz-1745MHz paired with Claro as the first recipient of airwaves 2130MHz-2145MHz (Lot 8). On October earmarked for 3G and 4G services. Claro 31 SeCom confirmed that it received won spectrum in the 1800 MHz and 1900 offers totaling US$2.23 billion for the 4G MHz bands designated as 3G spectrum spectrum, equivalent to a 13% premium Regulatory and two blocks of 1700-MHz and 2100- on the floor price of US$1.97 billion. The MHz 4G spectrum, Argentina’s regulator watchdog is not expected to formally Updates SeCom announced. The regulator did not unveil the winners of the concessions until say how much Claro had agreed to pay later this month. Meanwhile, the telco for the frequencies. SeCom announced has announced consolidated revenues of on 31 October that it had concluded the ARS24.183 billion (US$2.842 billion) for auction of 10 lots of spectrum, raising the nine-month period ended September US$2.23 billion in the process. Demand 30, 2014, representing a rise of 22.0% for the three available lots of 4G spectrum against the corresponding period of 2013. drove up the price. Claro was one of four Meanwhile, net income for the period companies to take part in the auction. under review increased to ARS2.684 Rival mobile network operators Movistar, billion, a rise of 13.7% year-on-year. As of owned by Telefonica, and Telecom September 30, 2014, Personal claimed a Argentina’s Personal also submitted total of 19.8 million mobile subscribers, bids, as did broadband provider Arlink. down slightly from 19.9 million one year SeCom has yet to disclose how the other earlier; post-paid clients represented 32% companies fared in the process. of the operator’s user base. (November 27, 2014) totaltele.com (November 6, 2014) telegeography.com In its 9M14 earnings announcement, Telecom Argentina (Personal) has disclosed Bahamas that it successfully bid US$658 million for 3G and 4G-suitable spectrum in the recent The Government of auction staged by the regulator SeCom. Bahamas’ Cellular The telco has confirmed that it bid on the Liberalization Task Force following spectrum blocks: 830.25MHz- has issued a Request for

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Proposals (RFP) inviting interested parties to apply for wireless. Following the TV hearings, it has stopped the nation’s second mobile operator license. The license telecoms charging customers cancellation fees for not will be allocated via a two stage competitive selection giving enough notice that they are ending service. On process, involving a technical and financial assessment, wireless, it is considering mandated tower-sharing and followed by a spectrum auction. An evaluation committee roaming rules. (November 25, 2014) reuters.com comprising members of the Task Force and other industry experts will assess the bids in phase one, whilst Canada approved the sale of majority control of Wind sector regulator the Utilities Regulation and Competition Mobile Canada to an investor group that includes the Authority (URCA) will conduct the spectrum auction in company’s chairman, saying the transaction will bolster phase two. Regardless of scores in the initial phase, only competition in the domestic wireless market. The operators that meet certain minimum criteria will be Canadian government’s approval came with a number eligible to participate in the auction. Scores from the two of conditions, among them a pledge by Wind Mobile’s stages will be combined and the bidder with the highest new ownership to “significantly invest” with the purpose overall score will be granted the new authorization, of acquiring additional spectrum and expanding Wind including an Individual Operating License and an Mobile’s presence across Canada. News that Global Individual Spectrum License. Spectrum in the 700MHz, telecom giant VimpelCom Ltd. planned to sell its stake 850MHz, 1700MHz/2100MHz and 1900MHz bands in Wind Mobile Canada to a Toronto-based investment has been made available for the new entrant, although firm emerged in September. Toronto-based Globalive it was not clear what quantum of spectrum would be Capital, which is controlled by Wind Chairman Anthony awarded. The government is accepting proposals until Lacavera, would partly finance the transaction with February 11, 2015 and the selection process is expected funding from an investor group led by Canadian hedge to be completed by the end of April that year. In related fund West Face Capital Inc., according to people familiar news, fixed line incumbent and cellular monopoly with the transaction. The value of the deal was roughly holder Bahamas Telecommunication Company (BTC) has 300 million Canadian dollars ($264 million) including reduced the average number of calls dropped per day debt, those people said. Now approved, the deal looks from 70,000 to 40,000 as part of efforts to modernize to shore up Wind Mobile’s future in Canada, and offer the cellco in preparation for the liberalization of the a boost to the Canadian government’s plan to boost sector. Tribune 242 cites BTC CEO Leon Williams as competition in the wireless market -- which the governing saying that the operator is planning to invest a total of Conservative Party hopes translates into lower prices and US$65 million on network improvements in the coming increased choice for consumers, just as the party seeks months. Of that total, US$26 million will be spent on a fourth-straight mandate in a national vote expected enhancing its cellular network, Mr. Williams added, no later than October 2015. Industry Minister James commenting: ‘We are on a mission to refocus and put Moore, who is responsible for telecommunications [cell sites] in areas where we still have dropped calls…So policy, said the deal was reviewed under the country’s that should take away the problems that we experienced foreign-investment guidelines as some of the investors with dropped calls.’ By Christmas BTC aims to install 20 were from abroad. “I concluded that this acquisition will new sites throughout the country and upgrade with contribute to a more robust and competitive wireless LTE technology eleven sites each in New Providence, industry in Canada,” he said in a statement. Besides Abaco, Grand Bahama and Eleuthera. Williams went Mr. Lacavera’s Globalive Capital, other members of the on to say that BTC was concentrating on ‘winning the consortium are West Face; Tennenbaum Capital Partners hearts and minds’ of Bahamians. (November 14, 2014) of Santa Monica, Calif.; LG Capital Investors; Serruya telegeography.com Private Equity; and Novus Wireless Communications. Industry Canada has also approved the spectrum license Canada transfer to the consortium, which goes by the name AAL Acquisitions Corp. Wind Mobile last week promoted Canada’s telecom regulator began the Pietro Cordova to the post of chief executive, taking the last of three major policy reviews as helm from Mr. Lacavera, who remains as chairman. Wind it seeks to strike a balance between Mobile, which launched service in late 2009, had 741,000 ensuring consumers have broad access subscribers during the second quarter, up 20% over the to new technologies while avoiding same period in 2013. That was still well below Canada’s rules that would discourage investment. The hearing dominant wireless players, Rogers Communications Inc., by the regulator, the Canadian Radio-television and BCE Inc.’s Bell Canada unit and Telus Corp. Telecommunications Commission (CRTC), on the (November 5, 2014) online.wsj.com wholesale telecom services market will consider whether big telephone and cable companies should be forced to share so-called “last mile” wiring, which brings services China directly to the retail customer’s door, with smaller rivals. Due to improved fiber-optic connections, this wiring China’s Ministry of Industry and allows consumers to enjoy greater volumes of streaming Information Technology (MIIT) has online video and to place video calls over the Internet, launched a public consultation regarding among other benefits. The CRTC said on Monday its proposals to open the fixed broadband focus is on choice and sustainable competition, and it market to competition from private will have decide whether to give small players greater companies during a three-year trial period. Telecom access to these lines to foster that competition. Big Asia writes that under the plans, Chinese firms with a players such as BCE Inc’s Bell Canada and Rogers capitalization of at least CNY20 million (US$3.26 million) Communications Inc are expected to argue they should and more than three years’ experience in the telecoms be allowed to maintain control over high-speed fiber- market could apply to take part in a trial to provide fixed to-the-premises lines so that they can recoup their broadband services, including fiber-to-the-home (FTTH), investments in these expensive-to-build networks. to end-users. Successful applicants will be permitted to Quebecor Inc, Shaw Communications Inc and Telus Corp either roll out their own infrastructure or to lease access are other companies that are dominant in the market to the networks of China Telecom, China Unicom or for these services despite the presence of many smaller China Mobile. The trial is set to take place in 16 cities, competitors. In recent months, the CRTC has also held namely: Taiyuan, Shenyang, Harbin, Shanghai, Nanjing, hearings on the future of television and the future of Hangzhou, Ningbo, Xiamen, Qingdao, Zhengzhou,

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Wuhan, Changsha, Guangzhou, Shenzhen, Chongqing and Chengdu. The proposals mark another step towards Denmark greater levels of liberalization in the Chinese market, Denmark has overtaken South Korea as and follow the decision to open the wireless market to the world’s top country for cellphone mobile virtual network operators (MVNOs), again on a and Internet use, a study released said. trial basis. MIIT allocated a further eight MVNO licenses In third place was Sweden, followed by earlier this month, bringing the total to 33. Iceland and Britain, emphasizing European dominance (November 28, 2014) telegeography.com in the connectivity stakes, according to the International Telecommunication Union, a leading analyst for Ministry of Industry and Information Technology (MIIT) information and communication technologies, or ICTs. has issued a fourth batch of mobile virtual network Hong Kong led Asia, in ninth place in the world rankings, operator (MVNO) licenses, allocating concessions to and the United States came 14th. The Central African eight companies and bringing the total number of MVNO Republic was last, part of a long list of African countries licensees to 333. Video sharing site Youku Tudou was bringing up the tail of the list. The International one of the highest-profile companies to receive a license, Telecommunications Union’s ICT development index whilst other licensees included: clothing manufacturers takes into account Internet and mobile phone access Hongdou Group; TV and radio broadcasting firm and use, and the population’s competence with the Shenzhen Media Group; electronics retailer Qingdao technology. “Over three billion people are now online Gooday Network Technology (Haier); communications and information and communication technology growth and software providers Beijing ChannelSoft Technology remains buoyant in just about every country worldwide,” and 263 Network Communications; smartphone the report said. Developing countries are well behind, manufacturer Beijing Xiaomi Technology; and Zhengzhou but catching up, with Internet usage in 2014 growing 8.7 Xunjie Trade. (November 24, 2014) C114 percent, compared to 3.3 percent in the richer nations. However, of the 4.3 billion people still unconnected, 90 China Mobile is considering refarming spectrum in the percent of them are in developing countries, the study 900MHz and 1800MHz bands to maintain service quality found. That should change, according to the organizers. as its 4G subscriber base expands. The cellco is expecting “ICTs have the potential to make the world a much better to have a 4G customer base of more than 150 million by place –- in particular for those who are the poorest and the end of next year, and 300 million by end-2016, with the most disenfranchised, including women, youth, and Time Division Long Term Evolution (TD-LTE)-enabled those with disabilities,” said the Telecommunications base stations increasing to 700,000 and one million by Union Secretary General, Hamadoun Toure. those dates. China Mobile currently uses the two bands (November 24, 2014) phys.org for 2G services, but sees greater potential for them to be used for 4G or 3G networks. (November 21, 2014) Sina Tech El Salvador China Mobile, the world’s largest cellular provider Telecoms regulator SIGET plans to re- by subscribers, achieved its end-year target for 4G open an auction for mobile spectrum in customers by the end of October, signing up more than the 1900MHz and 1700MHz/2100MHz 50 million users to its Time Division Long Term Evolution frequency bands, after the process was (TD-LTE) service by that date, Reuters writes, citing the suspended late last year. SIGET head State-owned Assets Supervision and Administration Blanca Coto said that the watchdog has not yet issued Commission (SASAC). The cellco added around ten a call for applications from companies interested in million net new 4G subscribers per month in August, taking part in the auction, but revealed that SIGET has September and October and is on track to sign up more started the process of re-examining the rules of the than 70 million 4G users by the end of the year. The tender procedure, which will see a total of 20MHz in the cellco has made the most of its early lead on rivals China 1855MHz-1935MHz range sold off, alongside a further Unicom and China Telecom, both of which have been 20MHz in the 1765MHz-2165MHz band. In October 2013 far more conservative in their deployment of TD-LTE El Salvador’s competition regulator the Superintendencia networks, banking instead on Frequency Division (FD)- de Competencia (SC) suspended the auction, on the LTE technology – full licenses for which have yet to be grounds that the rules would put potential new players allocated – over the home-grown TD standard favored at a disadvantage as they face barriers to market entry, by China Mobile and sector regulator the Ministry of thus inhibiting the development of competition. The SC Industry and Information Technology (MIIT). objected to the fact that the spectrum would be awarded (November 14, 2014) telegeography.com to the highest bidder, regardless of how much spectrum the company already has, or its current market share. The auction was subsequently suspended a second time Costa Rica by the Constitutional Chamber of the Supreme Court of Telecoms regulator SUTEL has created a Justice. (November 5, 2014) La Prensa Grafica new registry for pre-paid mobile users to help protect subscribers against identity European Union theft and extortion. The service launches European Union governments are on December 1, and registration is voluntary. To register, considering less stringent rules on how customers must go to www.registroprepago.sutel.go.cr internet service providers manage traffic and provide their personal details. Once these have been on their networks, a move that could be verified against the database of the Tribunal Supremo de welcomed by Europe’s large telecoms Elecciones (Supreme Electoral Tribunal, or TSE) – which operators. These so-called net neutrality rules are part manages the civil registry – the user is sent a four-digit of the European Commission’s proposed overhaul of code to confirm the registration and complete the Europe’s telecoms industry to help it to compete against procedure. In addition to the additional security, SUTEL rivals the United States and Asia. Net neutrality is the said that subscribers that register their number with the principle that all content providers should have equal new database will be able to access special promotions access on networks. It has become a hot topic in the and will be able to port their number between operators United States where President Barack Obama has said more easily. (November 19, 2014) telegeography.com

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SAMENA TRENDS _ NOV_2014 internet service providers should be banned from However, this applies only under the condition that the striking paid “fast lane” deals with content companies. complementary Layer 2 bitstream access product is EU lawmakers voted in April for strict net neutrality available. Comments on the decision can be submitted rules that barred telecoms operators like Orange and until December 12 in a public consultation, after which Telefonica from prioritizing some internet traffic over the proposal will be sent to the European Commission others. But the latest draft of the reform proposal shows for clearance. (November 13, 2014) telecompaper.com that member states are leaning toward a looser approach which only bars internet service providers from applying traffic management measures which “block, slow down, Ghana alter, degrade or discriminate against specific content.” Telecoms regulator NCA has opened It does not define net neutrality or so-called “specialized a public consultation into the services,” which would have specified the types of content potential award of three new licenses those operators could prioritize over others. Large for mobile virtual network operator telecoms companies have said they want to be allowed (MVNO) services, international wholesale carrier (IWC) to provide quicker internet access to bandwidth-hungry services and unified services. The regulator is seeking services like Google’s YouTube and Netflix. The draft text stakeholders’ views on the eligibility criteria, scope also includes provisions on roaming charges paid by and conditions of the licenses and award processes, consumers when using their mobile phones abroad. The as outlined in the published papers. According to the Commission and the European Parliament had pushed draft documents, the NCA has proposed that the MVNO for an end to such charges by the end of next year. But license is awarded for a maximum term of five years, regulators and member states are concerned about subject to the expiration of the authorization of the what effect an end to roaming charges would have on cellular mobile licensee involved. Eligible applicants, domestic rates and wholesale prices telecoms operators which must be 70% Ghanaian-owned, will be required pay each other when their customers travel abroad. The to pay a non-refundable application fee of GHS150,000 latest text does not specify a date for the introduction of (US$46,985), a license fee of GHS1.2 million and all “roam like at home,” where someone using, say, a British levies applicable to mobile network operators (MNOs), mobile phone in Italy would pay the same as if they were including annual regulatory fee, universal access still in Britain. But it acknowledges the need for a specific contributions, communications service tax (CST) and date to send a positive signal for consumers at a time of value added tax (VAT). For its part, the unified service widespread discontent with Brussels. Member states will license is targeted at existing MNOs wishing to provide discuss the text on Thursday and Friday, and if agreed fixed telephony, broadband and other value added it will go to ministers when they meet in two weeks. services (VAS) to customers. Broadband Wireless Access (BWA) license holders may also be eligible for the (November 19, 2014) reuters.com2014) telegeography.com concession and can apply for the license upon meeting the rollout conditions outlined in their concessions. Germany The successful bidder for a unified service license must The German government has played pay a GHS150,000 application fee, a license levy of down speculation that it plans to GHS600,000 for each year of the remaining term of its reduce its stake in a number of state- cellular mobile license, a regulatory fee equivalent to 1% owned companies, including incumbent of its net revenues, and several additional fees (e.g. CST, telecoms operator Deutsche Telekom (DT), after a leak of VAT). Meanwhile, the IWC license will allow its holder to the proposals was reported by Reuters earlier this week. carry and route incoming and outgoing international The news agency writes that Chancellor Angela Merkel’s telecoms traffic to and from any of the country’s licensed cabinet had been expected to approve yesterday a international gateway facilities. The NCA has disclosed document proposing the privatization of stakes in firms that, following the review of the results of the three such as DT, Deutsche Post and Deutsche Bahn, but the public consultations, a process which is scheduled to cabinet delayed approval after Reuters reported its take place on December 9, 2014, and invitations for contents, and a spokesman for Finance Minister Wolfgang the license auctions will be published on December 16. Schaeuble said changes to the text needed to be made. (November 25, 2014) telegeography.com ‘What I can say overall is that there are no concrete plans for privatization at Deutsche Telekom, Deutsche Bahn or Following MTN Ghana’s decision to terminate its Deutsche Post,’ a government spokeswoman said after Interconnect Agreement with smaller domestic rival the cabinet meeting. The Federal Republic owns a 14.3% Expresso (formerly Kasapa Telecom) from November stake in DT, which operates under the brand Telekom 1, 2014, due to ‘uncontrollable circumstances’, local Deutschland in its domestic market, while a further telecoms watchdog the National Communications 17.4% is held via state-owned development bank KfW Authority (NCA) has taken steps to mediate the dispute Bankengruppe. (November 13, 2014) telegeography.com between the two operators. The watchdog disclosed that it ‘has since the beginning of the year made consistent and Germany’s Federal Network Agency published a intensive efforts to help Expresso address its difficulties draft market analysis on bitstream access for national by managing various crisis situations and to ensure that consultation. Two markets were defined: layer 2 the network is able to meet all its obligations’. Whilst the bitstream access and core networks layer 3 bitstream NCA disclosed that it is still monitoring the issue, and will access. The network agency integrated xDSL and fiber take the appropriate action after a comprehensive review infrastructures in both markets, with layer 3 bitstream of the situation, it has reminded Expresso’s subscribers access also including the cable network infrastructure. that, if they so wish, they can make use of the mobile Deutsche Telekom was found to be dominant in all the number portability (MNP) service and change to another markets. However, for the first time, the regulator also provider. Last week MTN Ghana blocked incoming calls looked at the markets on a regional level. As a result it from Expresso’s networks due to the cellco’s inability to concluded that layer 3 bitstream access regulation is no settle its debts. MTN Ghana’s CEO, Serame Taukobong longer needed in 15 cities with sufficient competition: said that unfortunately, it is a combination of financial Bochum, Bottrop, Bremerhaven, Gelsenkirchen, Herne, and regulatory issues, so we’ve tried as much as possible Karlsruhe, Kiel, Cologne, Leipzig, Leverkusen, Mannheim, to minimize the impact on MTN costumers … We hope Osnabruck, Pforzheim, Recklinghausen and Reutlingen. the issue will be resolved as soon as possible. It can only

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SAMENA TRENDS _ NOV_2014 be resolved if Kasapa shows [a] commitment to honour acquisitions and the rationalization for penalties are all its financial obligations.’ According to the executive, set to be considered by the DoT. Whilst the minister is the main challenge is Expresso’s affiliation with Sudatel, keen to clear up some of the sector’s muddier regulatory which ‘has made it difficult to raise capital locally and waters, the DoT’s deliberations will not delay the internationally and deal with vendors’. upcoming spectrum auction, scheduled for February (November 10, 2014) Spy Ghana 2015, despite calls from the industry to put the sale on hold until more frequencies are available. According to the DoT official guidelines on spectrum sharing are Hong Kong already in the works but the regulator has yet to look Hong Kong’s Communications Authority into spectrum trading, so guidelines on those two has formally announced the registered areas are unlikely to be released by the end of 2014, as bidders in the upcoming auction of previously stated by Mr Prasad. Meanwhile, contentious 2×49.2MHz of mobile spectrum in elements of the existing merger and acquisition rules the 1900MHz-2200MHz (2100MHz) frequency band will be reconsidered, including the requirement for the scheduled for December 2014, namely three of the buyer to pay the government a market-linked price territory’s existing cellcos: China Mobile Hong Kong, for the frequencies changing hands. Although not Hutchison Telephone Company (3) and SmarTone. highlighted by the official, in the wake of the failure of Bidders must declare if they are bidding in collaboration Bharti Airtel’s takeover of Loop Mobile, the DoT is also by submitting a declaration form by 18 November 2014. expected to consider M&A norms alongside the rules Largest mobile operating group by subscribers PCCW for mobile number portability (MNP). The takeover (including CSL) cannot participate in the auction under was delayed by, amongst other things, opposition merger conditions. The unified carrier licenses will be from the Telecom Regulatory Authority of India (TRAI), valid for 15 years from October 22, 2016, i.e. following the which claimed that the transfer of customers from Loop expiry of the existing operators’ 2×118.4MHz allocations to Airtel violated the rules for MNP. Clarity on M&A in the 2100MHz band, previously issued under 3G UMTS rules is one of the highest priorities for the sector, as licenses. (November 17, 2014) telegeography.com many of the nation’s larger operators are increasingly looking towards consolidation in the crowded market. Elsewhere, telcos have been clamoring for the DoT to India impose a graded penalty system that will determine the Sectoral regulator TRAI is likely to levels of fines based on the severity of an operator’s submit its views within 15 days on some transgression. Having come under greater scrutiny from clarifications sought by the DoT over other government agencies after the 2G crisis shed light pricing and valuation of the spectrum on corruption in the department, DoT officials have for the proposed auction in February next year. The levied maximum penalties on telcos for infringements, Department of Telecom (DoT) has sought clarifications lest any leniency be taken as graft. The Economic Times from the Telecom Regulatory Authority of India (TRAI) pegs the amount owed in penalties by the nation’s regarding pricing and valuation of 800 MHz, 900 MHz telcos to be in the region of INR21.17 billion (US$344.3 and 1800 MHz airwaves. “We (TRAI) have received a million), most of which is currently being disputed in the reference from Department of Telecom on Friday and courts: INR11.33 billion worth of fines were dished out will try submitting the reconsidered recommendations in the 2011-2012 year, but the amount collected was just within the 15 day time-frame or even earlier,” an official INR2.06 billion, equating to around 18.2% of the total. source said. The final comments received from TRAI on Subsequent years have yielded similarly poor results, the matter will then be placed before inter-ministerial with the DoT realizing 15.0% of the INR7.19 billion levied panel Telecom Commission for a final call. The next in 2012-2013 and 1.6% of the INR79.23 billion charged round of spectrum auction is proposed to be held in in 2013-2014. (November 13, 2014) The Economic Times February 2015 from which government is estimated to garner at least Rs 9,355 crore. TRAI had last month given The Telecom Commission has rejected recommendations its recommendations on valuation and pricing of 1800 on pricing for spectrum in the 800MHz, 900MHz and MHz and 900 MHz spectrum bands, being used for 2G 1800MHz bands from the Telecom Regulatory Authority services, for the next round of auction. The regulator had of India (TRAI), sending the regulator back to the suggested about 10 per cent higher price for spectrum drawing board to draft fresh proposals, the Business in 1800 MHz over the final bid price that was received Standard writes. The Commission dismissed the TRAI’s in the February auction. The Authority had given its recommendations, which suggested that the government recommendations for 800 MHz (CDMA) spectrum band free up additional airwaves from the ministry of defense in February. It had suggested CDMA spectrum reserve and state-owned telco Bharat Sanchar Nigam Ltd price of Rs 2,685 crore per megahertz for auction, which (BSNL) and only begin the sale when enough spectrum is around 50 per cent higher than the previous pan- was available. The regulator has been given 15 days to India base price. The regulator had also recommended submit new recommendations. A senior official from the selling radiowaves in the 2100 MHz band along with Department of Telecommunications (DoT) and a member the proposed auction in February next year. Part of of the Commission was quoted as saying: ‘Since freeing spectrum in 2100 MHz band is held by Defense and DoT up additional spectrum from the sources that the TRAI is in discussions to get some frequencies vacated for 3G has suggested … will not be possible now, the quantum mobile services in this band. Most of the spectrum which of spectrum to be auctioned will change. Pricing is linked is proposed to be put up for sale is being used by Airtel, to the quantum of spectrum to be auction, [so] we need Vodafone, Idea Cellular and Reliance Communications fresh suggestions from the TRAI.’ The unnamed official across various parts of the country. (November 17, 2014) also confirmed that the government is determined to indiatvnews.com hold the next frequency auction in February, despite the limited spectrum available. Industry stakeholders Department of Telecommunications (DoT) has been have voiced their concerns over the urgency for the sale, instructed by telecom minister Ravi Shankar Prasad to claiming that the shortage of spectrum would needlessly provide clarity on a number of issues persistently harming inflate prices, making incumbent players vulnerable to investor confidence in the sector, the Economic Times aggressive bidding from rivals. writes, citing a senior DoT official. Matters including (November 11, 2014) telegeography.com spectrum sharing and trading, terms for mergers and

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Italy is expected to address differences which have emerged The Italian government has opened a since the formation of USAC. Communications Authority public consultation into its previously of Kenya Director General Francis Wangusi says all announced plans to create a EUR6.2 players will be issued with operating license subject billion (US$7.7 billion) high speed network to contribution to the Fund. This followed a silent row to cover areas of the country currently that has been simmering pitting telecommunication outside the footprint of fixed broadband infrastructure. service providers and the Communications Authority Funding for the project will come from national, regional of Kenya over the formation of the Universal Services and European Community (EC) sources. The government Advisory board in August this year. Players have been hopes to have a minimum 30Mbps connection available demanding representation in the USAC board to to all Italians by 2020 to help it meet European Union oversee the management of the cash they are supposed (EU) digital agenda targets, with well over half of the to contribute. This has seen some players withholding population able to access 100Mbps fiber-based services their levies to the fund until the request is heard. CA by that date. The proposals are open to public comment Director General Francis Wangusi says any player who fails to remit the levy will not have their license renewed until 20 December. (November 26, 2014) telegeography.com next year. Wangusi says the CA board has resolved to be contributing 800 million shillings to fund every year Jamaica to finance the operations of the universal service fund. Telecoms regulator the Office of Utilities According to USAC chair Catherine Ngahu, so far the Regulation (OUR) has launched a public fund has received remittances totaling to 1.45 billion consultation process to set standards shillings falling short of the 2 billion shillings target. ICT for quality of service (QoS) guidelines players in the country are expected to remit 0.5 percent and to develop other consumer of their gross profit to the fund every year. The funds protection rules. Responses to the document are to be raised will go towards rolling out ICT infrastructure submitted by December 8 and the watchdog will submit in remote and commercially non-viable areas in the a final report to parliament on February 23. The OUR has country. (November 14, 2014) kbc.co.ke proposed the operators be obliged to report how many complaints they receive per 100 customers and how many of those complaints were resolved within periods Macau of 15 and 30 working days. Elsewhere, the OUR is urging Two prospective new entrants submitted internet service providers (ISPs) to use applications to applications to compete with Macau’s measure the speed of their broadband connections. four incumbent mobile operators (November 14, 2014) TeleSemana for the four 4G licenses on offer by deadline. China Mobile Hong Kong The government has said it plans to closely monitor and start-up telecoms venture Yu Hang are the two new the proposed US$3 billion acquisition of Columbus bidders alongside Companhia de Telecomunicacoes de International by Cable & Wireless Communications Macau (CTM), China Telecom Macau, Hutchison Macau (CWC), which was announced last week. The two firms (3) and SmarTone Macau. Four concessions with eight- both claim a sizeable chunk of Jamaica’s fixed line year duration will become valid early next year, following and broadband markets, with CWC operating under the tender launched in September by Macau’s Bureau of the LIME banner and Columbus owning cable TV and Telecommunications Regulation (Direccao dos Servicos broadband operator Flow. The Minister of Science, de Regulacao de Telecomunicacoes, DSRT), which is Technology, Energy and Mining said that he is going to opening the bids today; license winners will be expected be very vigilant and watchful about what happens going to launch 4G LTE (FDD and/or TDD) mobile broadband forward, and we are going to be clear and certain that services covering 50% of Macanese territory by the end appropriate measures, appropriate agreements (and) of 2015, rising to 100% in 2016. In a report accompanying appropriate additions will have to be done to enable the bidding announcement, China Telecom Macau – that … We will safeguard competition going forward. the territory’s sole CDMA-based mobile provider told Columbus, which generated revenue of US$505 million in that the prospects for short-term return on start-up 4G the year ended December 31, 2013, has around 700,000 network investment in Macau are ‘not very promising’ residential customers in the Caribbean, Central America as the considerable cost of deploying the 4G network and Andean region. It offers services under the Flow cannot be readily passed on to consumers as price brand name in Trinidad & Tobago, Jamaica, Barbados, competition will remain keen. Vice general manager Grenada and Curacao, and also serves Saint Lucia, Saint of China Telecom Macau, Song Tong, admitted to the Vincent & the Grenadines and Antigua & Barbuda under paper that he did not expect significant revenue growth the brand name Karib Cable. Columbus also provides ‘anytime soon’ as market competition is ‘fierce’, but on corporate data and cloud based services under the brand the other hand noted that his company was ‘eyeing the Columbus Business Solutions. Meanwhile, through its tremendous potential of the [LTE] technology and the wholly owned subsidiary, Columbus Networks, the possibility that it could bring in a large increase in the company provides capacity and IP services, corporate number of users,’ adding that ‘we have to evolve with data solutions and data centre hosting throughout 42 the market’. The China Telecom representative also countries in the greater Caribbean, Central American and highlighted the fact that business risk would be lowered Andean region. The telco presides over a fully protected, via infrastructure sharing agreements with fellow 4G ringed submarine fiber-optic network spanning close to licensees; whilst the expanding fiber transmission 42,300km and a 26,400km terrestrial fiber and coaxial infrastructure of Macau’s fixed network newcomer MTel – an alternative to former monopoly CTM – may also network. (November 13, 2014) The Jamaica Observer help reduce rollout/operating costs. CTM previously stated that it was already technically prepared to launch Kenya 4G LTE services as soon as a license is issued, whilst The Universal Service Advisory Fund anticipating that LTE usage will raise monthly average has formed a committee drawn from revenue per user (ARPU), in contrast to China Telecom’s telecom operators and the Fund to expectations. (November 19, 2014) Macau Business Daily iron out thorny issues. The committee

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Mexico OTT Providers Mexican fixed line operator Telmex OTT (over the top) video offers strong growth has been fined MXN 657 million for opportunities in the Middle East, and the collaboration monopolistic practices against rival between telco operators and content distribution operator Axtel. The fine was imposed by networks can boost revenue for both, industry experts the country’s Federal Telecommunications Institute (IFT). said. OTT is the delivery of content like Netflix, icflix, etc, The IFT’s decision cannot be appealed by the operator, over the internet direct to home over telecom operators’ according to the report. In September, the IFT had fined network infrastructure without paying fees. “Telco Telmex MXN 49.3 million for monopolistic practices. In operators are facing challenges because of the growth in its ruling, the regulator established that Telmex acted OTT services due to the big drain in their network,” said with the goal of setting obstacles to the operations of Christophe Firth, senior manager at the management Axtel in the long distance market. (November 10, 2014) Terra consulting firm A.T. Kearney. He said the OTT video market in the Middle East will be worth $1 billion by 2020. “OTT is here to stay. Video compression rates Moldova are improving, broadband rates are dropping, devices Telecoms regulator ANRCETI has are becoming more affordable, so OTT will continue to announced that the tender for the grow,” said Ali Ajouz, managing partner at Sawa Media. allocation of frequencies in the 3600MHz- HBO, Verizon and Dish are expected to announce OTT 3800MHz frequency band, suitable for video services in the US next year. In the region, Firth broadband wireless access (BWA) services, has failed to said that telco players do not have much in terms of attract any bids. In November 2010 Moldova’s Ministry OTT. OSN has OTT service like OSN Go targeted at non for Information and Communication Technologies subscribers and beIN Sports has OTT services in parallel (MTIC) adopted a program to develop broadband with DTH (direct to home) services. “Telcos can strike internet access for 2010/13, including the allocation deals with OTT players and that is the only way to go of frequencies in the 2.5GHz-2.69GHz and 3.4GHz- as they [operators] have invested huge money on their 3.8GHz bands. In December 2012 interested parties network infrastructure,” he said. “IPTV [internet Protocol were invited to submit their applications by February 18, television] has dedicated line but OTT does not, so quality 2013; however, the sale process of 50MHz of spectrum of the transmission is not great. In the US, Comcast has between 3750MHz and 3800MHz generated no interest. signed a deal with Netflix to guarantee quality of service The ANRCETI pledged to re-launch a tender in October- across the network. We can see more of these happen December that year, although the date came and went here [region] as more telco players are expected to with no further announcements. It was September 2014 strike deals with big OTT players to guarantee quality before the watchdog revealed that it would award four of service,” Firth said. Ajouz said that expensive internet BWA licenses, each encompassing 50MHz of spectrum charges and limited broadband speeds are challenges in the 3.4GHz-3.8GHz band; the ANRCETI invited all to consumers, so collaboration with telco operators are interested parties to submit their bids by November a must. Free-to-Ai r channels are still the king in the 19, 2014, with a potential auction due to be held on region despite the growth of Pay-TV market. There are December 10, 2014. (November 24, 2014) telegeography.com 800 free-to-air and 237 pay-TV channels in the region. “People in the region do not like to pay for the online New Zealand content. Getting the revenue from these people are New Zealand’s Commerce Commission quite difficult as they don’t have credit cards and bank has issued its draft decision on accounts,” Firth said. According to Ovum, the number of the proposed contributions to the pay-TV subscribers in the Mena region will increase from country’s NZD50 million (US$39 million) 10.6 million in 2013 to 15.2 million in 2019 and revenues Telecommunications Development Levy (TDL) for will increase to $3.8 billion in 2018 from $2.6 billion in 2013/14. The government uses the fund to pay for 2013. He said that 27 million watch pay-TV services in telecoms infrastructure, including the relay service for the this region but only seven million actually pay for them. deaf and hearing-impaired, broadband for rural areas, “The game is still open and there is potential for all and improvements to 111 emergency services. Under types of companies to be winners,” he said. According to the draft ruling, Spark (formerly Telecom New Zealand) Informa Telecoms and media, UAE has 1.06 million IPTV will be liable to pay 38.17% of the total (NZD19.1 million), subscribers as of second quarter of this year and 494,000 while Vodafone will contribute 27.82% (NZD13.9 million) DTH subscribers. (November 6, 2014) www.zawya.com and Chorus 22.92% (NZD11.5 million). The remainder will be divided among 17 smaller telcos and internet Poland service providers (ISPs). The draft decision is now open The Office of Electronic Communications for submissions until November 28, with a final ruling (UKE) has announced that six companies due to be published in late December. (November 13, 2014) have submitted preliminary bids in telegeography.com its auction of 4G-capable spectrum in the 800MHz and 2600MHz bands. Nigeria Offers were received from the country’s four main Nigerian Communications Commission cellcos – Orange Polska, T-Mobile Poland, P4 and (NCC) has shut down telecom provider Polkomtel – plus Hubb Investments, which is controlled Owntel Communications. The shutdown by broadcast infrastructure firm Emitel, and NetNet, is due to the company allegedly offering which Gazeta Prawna says is owned by Szymon Ruta, telecommunications services to customers, without the son of a senior Polkomtel executive and business obtaining operational license. NCC enforcement team partner of Polkomtel shareholder Zygmunt Solorz-Zak. confiscated some of its equipment as evidence for The bids will be assessed by December 24. 19 packets illegal operation. Owntel is offering telecommunications of 2×5MHz frequencies are being made available in services on vehicle tracking, as well as sales and the 800MHz range (791MHz-816MHz paired with 832- installation of fixed and mobile telecommunication 857MHz) and 2600MHz band (2500MHz-2570MHz terminals, without operational license, which NCC paired with 2620MHz-2690MHz). No entity is allowed to described as an offense amounting to defrauding of the bid for more than two lots in the lower band and four Federal Government. (November 21, 2014) itnewsafrica.com

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SAMENA TRENDS _ NOV_2014 lots in the higher range. A minimum price of PLN250 15,000km of fiber-optic cable, including 8,000km of million (US$75.6 million) has been set for each packet of metro fiber in Johannesburg, Cape Town and Durban and 800MHz spectrum, while the minimum bid for lots in the is authorized to use 2×12MHz in the 1800MHz band and 2600MHz band is PLN25 million. The concessions will be 2×28MHz in the 3.5GHz band. If Vodacom’s takeover of valid for 15 years. (November 26, 2014) telegeography.com Neotel is approved, it will also gain access to 2×5MHz in the 800MHz band, as the SNO is the sole operator authorized to use spectrum in the ‘digital dividend’ Slovenia band for telecoms services. Meanwhile, Vodacom’s CEO Slovenia’s Agency for Communications has revealed that the operator is planning to connect Networks and Services (AKOS) has begun 250,000 homes and businesses to its fiber-to-the-home the process of selling off spare radio (FTTH) and fiber-to-the-business (FTTB) services within frequencies in the 700MHz, 1400MHz, the next three years. The telco is targeting 3,600 fiber 1800MHz, 2100MHz, 2300MHz, 3500MHz and 3700MHz connections by 31 March 2015 and has set aside roughly frequency bands. The watchdog has initiated the search ZAR500 million for fiber deployments in 2015. for a consultant to oversee the auction process, with (November 14, 2014) TechCentral further details of the sale to be released in due course. (November 25, 2014) telegeography.com South Korea South Korea ranked No. 2 in South Africa development of its information and Telecoms watchdog the Independent communications technologies (ICT), a Communications Authority of South U.N. agency said Tuesday, giving up its Africa (ICASA) has published the Final first place to Denmark. The International International Mobile Telephony (IMT) Telecommunications Union (ITU) said Asia’s fourth- Roadmap, which outlines plans for freeing up additional largest economy ranked second among 166 countries spectrum for mobile broadband services by migrating surveyed. It marked the first time for South Korea to a number of current licensees out of or within bands. miss the top spot since 2010. Sweden came in at third, The document seeks to ‘ensure universal availability of followed by Iceland, Britain, Norway, the Netherlands broadband services, as well as [promoting] a vibrant and and Finland. Hong Kong and Luxembourg also made competitive telecommunications industry’. With regards the top 10 list. By sector, South Korea took the top spot to the 694MHz-876MHz frequency band, the regulator in the percentage of households with Internet access proposes that Neotel, which currently holds 2×5MHz and second place in secondary gross enrollment ratio. paired spectrum in the 827MHz-832MHz/872MHz- It took sixth and ninth place for fixed (wired)-broadband 877MHz bands, should be migrated to 825MHz- Internet subscriptions per 100 inhabitants and active 830MHz/870MHz-875MHz band. The operator may mobile-broadband subscriptions per 100 inhabitants, also be required to implement mitigation measures (i.e. respectively. (November 25, 2014) koreaherald.com filters) in order to minimize GSM-R interference and be restricted to use 2×3.75MHz for CDMA voice services in areas with GSM-R coverage. Further, ICASA discusses Spain several options for potential spectrum allocations in the Bitflux Communications, the winner 450MHz-470MHz band, which will be used to boost of a national Telecoms regulator the coverage in underserved areas. In order to release CNMC has revealed that turnover from spectrum for the ‘SA Connect’ initiative, the migration mobile broadband services has for the process for rural areas could start as early as 2015, with first time surpassed revenues generated by fixed line existing spectrum holders required to vacate the band in broadband. In a blog post highlighting data for the rural areas no later than the end of 2018. For urban areas, three month period ended 30 June 2014, the regulator existing licensees will be obliged to migrate out of the noted that in that quarter revenues of around EUR889 band by the end of 2022. ICASA has also opened a public million (US$1.11 billion) had been generated by mobile consultation on its draft Radio Frequency Spectrum broadband services, up around 10% year-on-year. By Assignment Plan (RFSAP) for IMT. The Draft RFSAP seeks comparison, in the same period fixed broadband service to specify the technical conditions on the use of the revenue totaled some EUR882 million, down from more frequency bands and is aimed at soliciting views from than EUR900 million in the previous quarter. stakeholders on the Rules for Services operating in (November 7, 2014) telegeography.com each frequency band. All interested parties are invited to submit their comments on the topic within 14 days of the document’s publication. Although the regulator is Thailand planning to adopt the new frequency assignment plan The telecom regulator is pushing ahead by July 2015, the issuance of licenses before that date with the planned 4G spectrum allocation next year, saying 4G licenses could boost has not been ruled out. (November 14, 2014) telegeography.com the telecom infrastructure to serve the South African operator MTN has reportedly lodged government’s digital-economy policy as well as increase an objection with telecoms regulator ICASA and the GDP. The regulator will start revising all auction details for Competition Commission (CompCom) regarding rival the 1800 and 900 MHz spectrum in January and draw up Vodacom’s proposed acquisition of second national a new schedule for the auction in July, said Col Settapong operator (SNO) Neotel. The alleged bone of contention Malisuwan, vice-chairman of the National Broadcasting is the transfer of Neotel’s spectrum assets to Vodacom; and Telecommunications Commission (NBTC). Although MTN is reportedly seeking to have the frequencies several impractical sections of the Frequency Allocation handed back to ICASA for reassignment. CEO of MTN SA, Act (FAA) are being amended by the government that meanwhile confirmed the development by saying: ‘We may affect the NBTC’s authority, the regulator will move have to do what is right’. In May 2014 Vodacom agreed ahead with the planned 4G auctions in parallel with the to acquire the smaller operator from its majority-owner amendment of the FAA. The NBTC must be responsible Tata Communications of India for ZAR7 billion (US$676 for allocating spectrum for optimum benefit of the million); the deal is currently open for public comments industry and the country in line with the rapid growth in as part of the CompCom approval process. Neotel has data demand from both telecom and broadcasting, said

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Col Settapong. Previously, the NBTC set the auctions for United Kingdom the 1800 and 900 megahertz in August and November, according to the Information Memorandum (IM) of the Mobile operators will soon have 1800 and 900 MHz allocations. For the 25 megahertz of another opportunity to bolster their bandwidth on the 1800 MHz spectrum, the NBTC has network capacity after regulator OFCOM allowed concessionaires True Move and Digital Phone announced plans to allocate the 700- to take care of their 2G mobile users for another year MHz band for mobile broadband. The watchdog said after their concessions expired last September. The 17.5 it aims to make the frequencies available by 2022 at megahertz of bandwidth on the 900 MHz spectrum is the latest, although it said it is tentatively hoping to now being used by Advanced Info Service (AIS), whose free them up by 2020. The announcement was made concession will expire in September 2015. The NBTC less than two weeks after OFCOM shared plans for hired the International Telecommunication Union to auctioning spectrum in the 2.3-GHz and 3.4-GHz jointly study details and design the auction process, bands in late 2015 or early 2016. “This is a crucial next including the reserve price and the number of licenses. step in the development of the U.K.’s communication The IM of the 1800 MHz has had public hearings in April infrastructure. This decision ensures that we are making and approval by the telecom committee in May. It is the raw materials available with which investors and still pending approval by the NBTC board. The junta in companies can build the services which will support the June ordered the suspension of the planned 4G license digital economy of the future,” said outgoing OFCOM auctions for one year. If the new IM of the 1800 and 900 CEO Ed Richards. Indeed, in a report commissioned by MHz allocation passes all procedures including public OFCOM, Analysys Mason predicted that demand for hearings, approval by the NBTC board and the Royal mobile data could increase by a factor of 45 between Gazette announcement, the government can no longer now and 2030. The 700-MHz spectrum is currently used put the brakes on the 4G auctions. for digital terrestrial TV (DTT), and program making (November 17, 2014) thephuketnews.com. and special events (PMSE). OFCOM said next year it will inform the PMSE community which frequencies will be available to it. As for TV signals, the watchdog said the Ukraine vast majority of households will be required to retune The starting price of licenses in Ukraine’s their existing equipment, while approximately 0.5% upcoming 2100MHz 3G auction is will need a new roof-top aerial. “The U.K. will retain a likely to rise, according to a report by competitive terrestrial television platform,” insisted Capital.ua. Sources from the regulator, Richards, who is leaving his post at the end of the year. the Cabinet and the mobile industry indicated that the In a separate statement, OFCOM named Steve Unger government has returned once more to the ‘finalization’ interim CEO until a permanent replacement for Richards of the draft terms of the UMTS license tender. A member is appointed in 2015. (November 19, 2014) totaltele.com of the National Commission for the State Regulation of Communications and Informatization (NCCIR) was OFCOM announced plans to auction a swathe of new quoted as saying: ‘We are asked to change the value frequencies for 4G services. The U.K. regulator has of the lots in relation to the new [US] dollar [exchange invited prospective bidders to comment on its proposal rate].’ According to a Cabinet decree of September 5 (the to sell spectrum in the 2.3-GHz and 3.4-GHz bands. It text of which was published in November), a 2×15MHz aims to carry out the process in late 2015 or early 2016. nationwide UMTS license would cost a minimum OFCOM has proposed a reserve price of £2 million-£2.5 UAH2.443 billion (US$158 million), but the Cabinet million per lot of 2.3-GHz spectrum, and £1 million per has since referred to the fact that this figure should lot of 3.4-GHz spectrum. The total reserve price for the be adjusted ‘according to the approved methods of entire spectrum would be between £50 million and £70 calculation’, as the price was designed to be pegged to million. “Today marks an important step in ensuring that the US dollar, rather than in local currency. As a result, the U.K. has sufficient spectrum to support our wireless the report said the license price may grow by another economy,” said Philip Marnick, OFCOM’s spectrum UAH439 million to UAH2.882 billion. ( group director, in a statement. “It comes in response to November 25, 2014) telegeography.com the fast pace of change and innovation taking place in the communications sector, which is placing increased Ukraine’s Cabinet of Ministers has authorized the demands on how spectrum is used by all industries. One National Commission for Communications Regulation important way of meeting this demand is making new (NCCR) to announce a tender for obtaining licenses for spectrum available and its use as flexible as possible,” the UMTS (3G) standard communications, Minister of the he said. No specific uses for the frequencies has been Cabinet Ostap Semerak has told reporters. “According to prescribed, but OFCOM said they are well suited to the document we have approved today [the conditions mobile broadband “Many existing mobile handsets of the tender], the NCCR will have the possibility of from major manufacturers including the Apple iPhone announcing a tender, it will last 60 days. In January we 5 and 6, HTC Desire and Samsung Galaxy are already will sum up the tender,” he said. Semerak added that compatible with the 2.3-GHz spectrum in other markets,” the conditions of the tender for obtaining the license, OFCOM said, adding that the band is also used for 4G which the government approved on November 5, will services in 10 countries outside Europe, including China, allow maximum competition and the most transparent India and Australia. Meanwhile, the 3.4-GHz band is conducting of the tender. He also noted that the process currently used for mobile broadband in six countries, of frequency conversion would take place without the including the U.K. - where it is used by UK Broadband elements of corruption. (November 6, 2014) en.interfax.com.ua for its ‘Relish’ TD-LTE service – as well as Canada and Spain. In all, 190 MHz of spectrum will be up for grabs, equivalent to approximately three quarters of the 4G spectrum auctioned in 2013. To promote competition, OFCOM has proposed that no single operator can hold more than 37% of all the airwaves currently used for mobile services. (November 7, 2014) totaltele.com

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United States Internet as we know it,” said Obama, in the video. “For most Americans, the Internet has become an essential Bids in the U.S. Federal Communications part of everyday communication and everyday life,” he Commission’s (FCC) AWS-3 auction have said. “That’s why I’m urging the Federal Communications reached $18.57 billion, comfortably Commission to do everything it can to protect net exceeding the $10 billion target set neutrality for everyone.” More specifically, Obama said by the regulator. The running total is also higher an ISP should not be allowed to block legal content, or than the $18 billion predicted by Fitch Ratings earlier intentionally throttle some content or speed up access this month. Bidding got underway last week and by to others based on its preferences. He also said the FCC Friday the process had already raised $2.43 billion. 16 should consider applying net neutrality rules to points auction rounds have been completed so far; round 17 of interconnection between ISPs and transport networks is due to begin later on Wednesday. 1,614 licenses are to prevent Web services being discriminated against. In up for grabs in the 1695-1710-MHz, 1755-1780-MHz addition, Obama also called for an explicit ban on paid and 2155-2180-MHz bands. Of the frequencies being prioritization. “The FCC is an independent agency, and auctioned, J-block spectrum, which consists of 10 MHz ultimately this decision is theirs alone, but the public has of 1700-MHz spectrum paired with 10 MHz of 2100- already commented nearly 4 million times asking the FCC MHz spectrum, is proving particularly popular. Bidding to make sure that consumers, not the cable company, gets for J-block spectrum covering Long Island, New York to decide which sites they use,” he said. FCC chairman Tom reached $1.43 billion at the end of round 16. Bids for Wheeler welcomed the President’s input. “The Internet J-block airwaves in Orange County, California are up must not advantage some to the detriment of others. to $1.01 billion. In all 176 J-block licenses are available. We cannot allow broadband networks to cut special 70 companies qualified to participate in the auction, deals to prioritize Internet traffic and harm consumers, including big names AT&T, Verizon, T-Mobile US and competition and innovation,” he said. Consumer satellite TV provider Dish Network, which is bidding advocacy group Public Knowledge applauded Obama, under the name American AWS-3 Wireless. Conspicuous and said that adopting Title II represents “the simplest by its absence is Sprint, which in September opted not and strongest mechanism to prevent discrimination of to take part. (November 19, 2014) totaltele.com traffic online, and promote investment in broadband”. However, the announcement received short shrift in AT&T raised pressure on the US telecom regulator’s work some quarters. “Reclassification under Title II, which for on new net neutrality rules, saying it would stop investing the first time would apply 1930s-era utility regulation to in new high-speed internet connections in 100 US cities the Internet, would be a radical reversal of course that until the web traffic rules are settled. The statement would in and of itself threaten great harm to an open from AT&T chief executive officer Randall Stephenson is Internet, competition and innovation,” said Verizon, in the first business move by an internet service provider a statement. The telco also warned that such a move in response to US president Barack Obama’s unexpected would likely be successfully challenged in court. Lobby call on the Federal Communications Commission on group Broadband for America (BfA) said adopting Title Monday to regulate such companies more like public II “would lead to unprecedented interference” in the utilities. The industry and Republican lawmakers have Internet. “We urge FCC chairman Wheeler to exercise his been protesting Obama’s proposal, saying stricter independent authority and reject this extreme proposal,” internet traffic regulations would stifle growth and the BfA said. (November 11, 2014) totaltele.com investment. “We can’t go out and invest that kind of money deploying fiber to 100 cities not knowing under what rules those investments will be governed,” Vanuatu Stephenson said at an analyst conference. In April, AT&T The Telecommunications and said it would deploy its high-speed fiber network in Radiocommunications Regulator (TRR) 100 cities, including Chicago, Los Angeles and Miami. has announced that it has decided to Ensuring access to quality internet for all Americans assign frequencies in the 700MHz band has been the FCC’s major focus. Telecommunications for Long Term Evolution (LTE) use via a companies plan to fight Obama’s call for utility-style spectrum auction. The watchdog disclosed that, in order regulations in Congress and the courts. More than three to assess the level of demand for 4G-suitable spectrum dozen congressional Republicans on Wednesday wrote in the aforementioned band, it will call for Expressions to FCC chairman Tom Wheeler that Obama’s proposed of Interest (EoI) prior to the auction, with potential regulatory changes were “beyond the scope of the FCC’s service providers required to state their frequency authority.” AT&T, whose $48.5 billion bid for DirecTV is preferences and requirements in their applications. The under government review, said on Friday that it would TRR also stated that it may opt to skip the auction if the also pay $1.7 billion to acquire Mexican wireless operator level of demand for spectrum could be met without a Iusacell. It trimmed its 2015 capital spending outlook to competitive tender process. Further, the watchdog has highlighted that a 2×5MHz spectrum block could be $18 billion from $21 billion. (November 13, 2014) timesofindia.indiatimes.com set aside for a new market entrant. TRR opened a public consultation on the potential allocation of the 694MHz- President Barack Obama called on the Federal 803MHz frequency band for LTE or LTE Advanced (LTE-A) Communications Commission (FCC) to adopt the wireless broadband services in May 2014. According strongest possible rules to protect net neutrality. to the document, the spectrum currently available for In a video message, Obama said the FCC should distribution in the 700MHz band comprises of 2×45MHz adopt Title II of the Communications Act as the legal frequency division duplex (FDD) blocks. framework for regulating the Internet as opposed to the (November 20, 2014) telegeography.com lighter-touch approach afforded by section 706 of the Telecommunications Act. Implementing Title II would reclassify Internet service providers as common carriers, Javaid Akhtar Malik subjecting them to much stricter rules governing Regulatory Affairs charges and the treatment of traffic on their networks. SAMENA Telecommunications Council “The idea of net neutrality has unleashed the power of the Internet and given innovators the chance to thrive. “Information contained herein has been obtained from sources, which we deem reliable. SAMENA Abandoning these principles would threaten to end the Telecommunications Council is not liable for any misinformed decisions that the reader may reach by being solely reliant on information contained herein. Expert advice should be sought.” page_42 wholesale updates

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wholesale NEWS

Windstream wants ILECs to provide next-gen IP services that will replace lower speed T-1 access lines at price IP-based wholesale equivalent prices. While Windstream is special access services certainly an advocate of IP-based services and the overall transition, executives are fairly concerned that the FCC needs to make Windstream is not opposed to AT&T sure that the transition won’t affect (NYSE: T) or any traditional telco’s competition. “Our concern is if left migration from TDM to IP-based unchecked, the transition as proposed by services, but it is calling for regulators the incumbents would be used as a back to ensure that it and other competitors door to deregulate and as an excuse to can get last-mile circuits for equivalent hinder competition,” Einhorn said. “Our prices. Serving as both an ILEC and CLEC understanding is that the chairman is WHOLESALE in the markets it serves, Windstream has proposing to tentatively conclude that built out an extensive fiber and copper carriers seeking to discontinue a service Updates network, but as it extends its services used as a wholesale input should be to more multi-site customers, it can’t required to provide competitive carriers reach every location it needs to serve with equivalent wholesale access and by building out its own network. The pricing going forward.” By not being service provider says that the FCC should able to provide similarly priced services “ensure ‘last-mile’ facilities, connecting a competitive carrier can offer today via competitors’ extensive fiber networks TDM, a small business owner would have to individual customer locations, do not to pay for a much higher speed service become an anti-competitive bottleneck it may not need to run its business. One or strategic leverage to force dramatic of the fears competitive providers have is price increases on consumers.” “Despite if the FCC does not put pricing controls all of the investments competitive carriers on special access services, it could mean like Windstream make, we also rely to higher prices for small businesses. “We a certain extent on the ILEC’s last mile,” want to migrate our customers to IP, but said Eric Einhorn, senior vice president we can’t do so if the pricing required of government affairs for Windstream, in of a comparable IP offering is multiple an interview with FierceTelecom. “It’s not times greater than the pricing for the possible from an economic perspective TDM input they are seeing today,” said to overbuild that infrastructure that was Jennie Chandra, vice president of public built in a monopoly era.” In particular, policy for Windstream. “That is the case Windstream wants incumbent telcos to for lower bandwidth connections, which

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SAMENA TRENDS _ NOV_2014 are critical input for communications million, or 5.3 percent year-over- Vaizey added that the government is services used by small businesses year, reflecting growth in Ethernet in consultation with mobile operators and smaller sites of non-profit or services. However, wholesale growth and other related organisations to government entities.” Windstream’s was somewhat offset by churn and get their views about the practicalities comments come in the wake of re-pricing for contract renewals, of national roaming. “People have FCC Chairman Tom Wheeler citing primarily in network services. From a suggested alternatives - passive mast sharing, easing the rules on planning “Emerging Wireline Networks and regional perspective, North America and so on - which are all very much Services” as one of the items on its was once again the leader, growing 8 part of the mix, but national roaming Nov. 21 meeting agenda. Wheeler said percent year-over-year to $1.06 billion. is a serious option which we are the commission will consider a Notice While Latin America CNS revenue consulting,” he said. V3 asked Vaizey of Proposed Rulemaking, Declaratory grew 9 percent to $200 million, EMEA how the government intends to Ruling and Order to facilitate the declined 5 percent to $219 million. tw respond to the mobile operators’ transition to next-generation networks telecom, which is now part of Level 3, objections to national roaming. “It is by promoting and preserving the reported that it grew total revenues 8 to say ‘Fine, if you say you don’t want commission’s public safety, consumer percent year-over-year and 1.2 percent national roaming, we set the policy protection and competition goals. “To sequentially to $425 million. Similar to challenge, you come up with the protect competition, this item includes earlier quarters, the service provider solution. If you can’t offer a solution proposals to ensure that small- and reported that it saw gains in enterprise we will impose national roaming’,” medium-sized businesses do not have and data and Internet revenues. he answered. The minister claimed that the need for national roaming is the benefits of competition yanked Enterprise revenues grew 8.4 percent, down to the changing demands and away from them,” wrote Wheeler in while data and Internet revenue grew expectations of the public when it a blog post. “The mere change of a 15 percent year-over-year. From an comes to mobile use. “25 years ago network facility or discontinuance overall financial perspective, Level 3’s you were just amazed to have a phone of a legacy service should not total revenue was $1.62 billion, up that you could walk around with and deprive consumers or businesses of year-over-year from $1.56 billion in get a signal. Now it is ubiquitous and competitive choices. That would only the same period a year ago. “Level 3’s people are dropping their landlines,” lead to higher telecommunications and tw telecom’s results reflect both he said. “People do expect, whether prices that are passed along to companies’ strong focus on execution you think it’s fair or not, to get good consumers.” Besides Windstream, a in the enterprise market,” said Jeff coverage pretty much wherever they number of non-profit organizations Storey, president and CEO of Level 3. are.” With national roaming currently like Boston-based Children’s Trust, “Given the combined company’s broad in the limelight, V3 asked whether the government’s £150m plan to which currently uses a CLEC for service, product portfolio, extensive network bring mobile coverage to areas where have written to the FCC asking them to reach and customer-first mindset, none exists has been pushed to one ensure they keep the playing field level we believe we are well-positioned to side. Explaining how the two plans so they can continue to get services at continue to capture enterprise market address different issues to a certain competitive rates. “As the FCC works share.” Shares of Level 3 were listed at extent, Vaizey’s reply indicated general to develop and administer public $46.58, down 67 cents or 1.42 percent, optimism for the plan. “It’s now a policy in the IP transition, we applaud in Wednesday morning trading on the project that is gaining momentum. It’s efforts now underway to consider New York Stock Exchange. taken a while to get off the ground,” he how vital entities like ours do not lose said. “It’s the first time mobile operators their ability to rely on competitive Government ‘will impose’ have worked with government and alternatives in the telecommunications there was a lot of learning in terms of market,” wrote Suzin Bartley, executive national roaming on analyzing coverage and infrastructure director of Children’s Trust in a letter challenges.” Broadband and mobile mobile firms if required infrastructure is a hot topic for the to the FCC. “It is our hope that the The government has reinforced its technology industry. Major companies Commission will act in the near term stance on mobile national roaming such as BT, ARM and Fujitsu have called to ensure incumbents do not diminish plans, despite an angry response for the next government to make wholesale access needed to make it from operators. Speaking exclusively infrastructure a core part of its agenda. economically feasible for competitors to V3, culture minister Ed Vaizey said to establish last-mile connections.” that the government sees national roaming as a “very serious option” VIVA Bahrain hosts and one it will force on operators if workshop on Level 3’s enterprise they do not come up with a viable revenues offset weaker alternative. The proposal has already international roaming been vigorously opposed by mobile wholesale results operators such as Vodafone, which market for Bridge Level 3, which has just completed its said that national roaming would Alliance group acquisition of tw telecom, reported actually “make coverage and quality As one of the newest alliance members significantly worse from the customers’ that Core Network Services (CNS) of the Bridge Alliance group, VIVA perspective”. But Vaizey explained that revenue rose 5.8 percent to $1.48 Bahrain hosted a workshop on the billion, helping to offset ongoing the government had given operators the scope to find alternatives to its international roaming market, which declines in its wholesale business. attracted participation from delegates Driven by data and Internet services national roaming plan, but if they fail it will be implemented. “So we have from STC KSA, VIVA Kuwait, Bridge growth, enterprise was the key revenue set this challenge to the operators, Alliance, and Syniverse. The Bridge driver in CNS, rising 12 percent year- but we have said if you can’t come up Alliance (originally the Bridge Mobile over-year to $992 million. Likewise, with a solution we’re going to look at Alliance) is a business group that wholesale carrier revenue grew $4 imposing national roaming,” he said. brings together 36 major mobile

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SAMENA TRENDS _ NOV_2014 telecommunications companies from people to roam between networks Pay As You Go Data Roaming – Now Asia, Australia, Africa and the Middle could compromise efforts to track you can surf the internet for as little Eastwith a combined customer base criminals, BBC News reported. “[It] as R2/MB while roaming.” Well… “a of over 670 million subscribers. With could have a detrimental impact on law first in South Africa” relates to prepaid an aim to leverage collaboration enforcement, security and intelligence airtime and data, and the R2 charge is in regional enterprise mobility and agency access to communications mainly applicable to African countries. M2M services, the alliance is built on data and lawful intercept,” the letter The debate on roaming charges has seamless service connectivity and said. May suggested further research been ongoing for several years now, a suite of integrated value-added to ensure a change would not impede but how much progress has really services for all alliance members’ on police action “crucial to keeping been made in the area of curtailing subscribers while roaming on each us safe.” Similar worries have arisen these charges? The fact is that the other’s networks. in the U.S., though officials here are roaming charges that are being billed worried about encryption rather than to subscribers’ accounts are still U.K. Eyes National roaming. The U.S. dealt with roaming exorbitant and it is mystifying that in 2012, when the FCC enacted rules overseas telecom networks are able Roaming to Eliminate that let wireless users connect to to justify such over-the-top charges to Mobile Dead Zones another provider’s network when they local cellular providers, who also look The U.K. government has set out travel outside their own network’s as though they may even be deriving to eliminate mobile “not spots” by coverage areas. Verizon sued, arguing a handling fee of some description improving coverage from the country’s that the commission does not have the from this source. Or is it that the local four major carriers. Part of a long-term authority to establish such restrictions, cellular providers are not putting economic plan, the administration aims among other things, but lost that fight enough pressure on all the overseas to eliminate poor mobile coverage by in December 2012. telecoms to reduce their charges? allowing users to hop on to another Most recently, I travelled to the US carrier’s network when stuck in a Policy ‘will aid and Alaska. Being aware of the severity dead zone. Similar to mobile coverage of these charges, I took great care to in the U.S., there are pockets of the transparency on mobile limit the usage of my smartphone U.K. where only one carrier provides costs’ to a bare minimum. I turned off data service. So in some cases, a Vodafone, roaming, only turning it back on South Africa Department of when accessing data which I did very EE, Three, or O2 user might be out of Telecommunications and Postal luck if they stumble into one of these conservatively, for a few minutes at Services is preparing for a new policy a time over a period of three weeks dead zones, or not spots. “It can’t be aimed at encouraging transparency right that in a fifth of the U.K., people and this still elicited a charge by MTN on user costs and the lowering of of almost R4 000 to my account. On cannot use their phones to make a prices, says Telecommunications and call,” Culture Secretary Sajid Javid said querying this scandalous charge, I was Postal Services Minister Siyabonga sent what looks to be their standard in a statement. “The government isn’t Cwele. Dominant players in the mobile prepared to let that situation continue.” and most frequently used e-mail telephone industry are unlikely to template in which they advise: “… that What it is prepared to do is investigate respond favorably to competition options for moving forward. One data bundles, [of which I am allocated on pricing, as evidenced in the 200MB per month], are not applicable proposal is the idea of national recent mobile termination rates saga roaming: Phones would automatically to roaming. That “data usage, while where the larger players pushed to roaming, is billed in volume [how move onto another network’s signal protect their revenues. This was after when theirs is not available, similar to much data is used] and not duration the Independent Communications [how long you are connected for]”. international roaming services. Also Authority of SA (ICASA) cut call up for debate: Shared infrastructure MTN then contradicts this by adding termination rates — fees that mobile that “data is billed per session and not that would put transmitters on each network operators and fixed-line other’s masts; extending mobile [the] total amount of data used for that companies pay to carry each other’s specific period”. And so their diatribe deals that companies like Tesco and calls. Virgin Media have with one carrier goes on: “In South Africa, using data, to all four; and coverage obligations you are billed for total volume use, but that force networks to cover a certain International costs when roaming, the billing per 25KB is: R3.50 including VAT [value-added tax] percentage of the country. Talks of roaming stray into between government officials and in North America and R2.70 including mobile companies have already begun. overpriced territory VAT in Europe.” At first glance, these “Businesses have been clear about It is quite astounding in this era of charges look to be of little materiality. the importance of mobile phones It is quite astounding in this era of However, 25KB is a very small amount and improved coverage will help technological advancement that of data and when applying the above deliver jobs and economic security,” cellular providers are still unable rates, it is evident that the high costs Javid said. Javid’s legislative ideas, to significantly lower their rates for that could be incurred are being however, may be facing opposition international roaming, for calls made camouflaged. Let’s take 100MB which from his own party. According to a and received, as well as for data usage. is half the data bundle that I receive leaked letter published by The Times But cellular providers profess otherwise. every month, as a reasonable example newspaper, Home Secretary Theresa Take a look, for example, at the copy of for minimal overseas usage for a three- May is resisting her fellow Tory’s what looks at first glance to be a dream week period. And here’s the punchline motions. In the letter, hidden behind advertisement from MTN: “A first in – when roaming, on the basis of a 50/50 a paywall, May warns that allowing South Africa from MTN-introducing usage in each of the above continents,

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SAMENA TRENDS _ NOV_2014 the charge would equate to R12 698. encourages roaming for reasons of and so on - which are all very much By comparison, one gigabyte of data low rates. It is evident that warnings of part of the mix, but national roaming currently costs R149 back home in excessive billings need to be generated is a serious option which we are South Africa and on a current special on cellular phones frequently during consulting,” he said. V3 asked Vaizey it comes with one free gigabyte as roaming. In this day and age it is not how the government intends to well. Then there’s the connection fees so easy to forego communication, respond to the mobile operators’ “which are charged by the roaming so what are the current alternatives? objections to national roaming. “It is network irrespective of whether there Well… one could buy a local SIM card to say ‘Fine, if you say you don’t want has been a data transfer to the phone in the country being visited, but this is national roaming, we set the policy or not”. This is all very confusing to an inconvenience as there would then challenge, you come up with the say the least, suggesting to me that be the need to advise everyone back solution. If you can’t offer a solution the basis that is being used to bill home of the new number and one we will impose national roaming’,” roaming charges is in need of a radical does need to receive e-mails. However, he answered. The minister claimed overhaul. By way of some examples of this is the better option than the that the need for national roaming is inconsistency – my statement reflected prepaid choice from MTN, which even down to the changing demands and that for 2.26 minutes of data usage I with the advertised savings still looks expectations of the public when it was billed R359.19; for 4.28 minutes frightfully expensive. Cellular providers comes to mobile use. “25 years ago the charge was R500.41; 9.15 minutes show huge profits and there is an you were just amazed to have a phone attracted a cost of R22.80; 3.16 minutes absolute need, if they haven’t already that you could walk around with and cost R20.52; and for usage totaling done so, to make it a top priority to get a signal. Now it is ubiquitous and 12.11 minutes, which is another of the find a solution to the roaming-charge people are dropping their landlines,” rare occasions that I spent more than a crisis. And should I dare venture to add he said. “People do expect, whether handful of minutes on my smartphone, that they ought to dig deep into their you think it’s fair or not, to get good the charge was R540.32. Then there ever-growing pockets, if necessary, in coverage pretty much wherever they were the ludicrous durations of 2 order to support their customers on are.” With national roaming currently hours 19 minutes, 1 hour 43 minutes the principle of a fair distribution of in the limelight, V3 asked whether and 1 hour 27 minutes during which wealth. Irving Schlosberg is a chartered the government’s £150m plan to time I was purportedly accessing accountant and works as a business bring mobile coverage to areas where data, which certainly was not the management consultant. none exists has been pushed to one case, but these charges turned out to side. Explaining how the two plans be minimal. The overseas telecoms Government ‘will impose’ address different issues to a certain concerned were the Cingular Genesis, extent, Vaizey’s reply indicated general Maritime Communications and Manx national roaming on optimism for the plan. “It’s now a telecom networks in Norway and the mobile firms if required project that is gaining momentum. It’s US, and I was advised that “all charges The UK government has reinforced its taken a while to get off the ground,” he have been verified as correct and stance on mobile national roaming said. “It’s the first time mobile operators charged according to interim network plans, despite an angry response have worked with government and agreements”. It seems that employees from operators. Speaking exclusively there was a lot of learning in terms of of the cellular group are determined to V3, culture minister Ed Vaizey said analysing coverage and infrastructure to toe the party line, so to speak, in that the government sees national challenges.” Broadband and mobile strongly defending these charges. roaming as a “very serious option” infrastructure is a hot topic for the Given the one available channel to and one it will force on operators if technology industry. Major companies voice an objection which has been they do not come up with a viable such as BT, ARM and Fujitsu have called exhausted, where one might ask, does alternative. The proposal has already for the next government to make all this leave users who believe, as I do, been vigorously opposed by mobile infrastructure a core part of its agenda. that they have been wronged? This is operators such as Vodafone, which not the first instance that I have been said that national roaming would UK telcos not too forced to object to roaming charges. actually “make coverage and quality Previously, while overseas, I was forced significantly worse from the customers’ enthused over national to dial the voicemail number repeatedly perspective”. But Vaizey explained that roaming as my messages were in distinct the government had given operators and breaking up, attracting a high Plans to improve patchy mobile the scope to find alternatives to its coverage across Britain through roaming charge. In this instance MTN national roaming plan, but if they fail did agree to pass a partial credit but “national roaming” have been it will be implemented. “So we have criticized by industry and political only “in good faith”, so they informed set this challenge to the operators, me in their e-mail at the time, as their figures but all agree that more can but we have said if you can’t come up be done to improve services. Mobile roaming department had advised them with a solution we’re going to look at not to generate the credit as there was coverage reaches more than 98 per imposing national roaming,” he said. cent of premises but about a fifth of no discrepancy. It is fair to say that Vaizey added that the government is cellular companies do caution against the country is without a signal from in consultation with mobile operators all four operators. Under the terms of the use of smartphones while roaming and other related organisations to given the veracity of these charges, but existing mobile licenses, 90 per cent of get their views about the practicalities UK homes need to be covered by 3G there is not nearly enough publicity of national roaming. “People have being sent to their subscribers in this and an operator is obliged to cover 98 suggested alternatives - passive mast per cent of the UK with 4G. However, respect. Take the above-mentioned sharing, easing the rules on planning MTN advertisement which actually the coverage does not overlap

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SAMENA TRENDS _ NOV_2014 precisely, creating areas where only year earlier, and is expected to do little global roaming, according to the latest one or two networks provide a signal. more than break even over the year. forecasts, with much of the revenue Operators erect masts where there is Ofcom has published its latest piece growth coming from within the EU. a commercial reason to do so — not of research into 4G and 3G mobile Revenue contribution is also on the where there are no or few customers. broadband speeds in the UK market, grow in Asia, particularly central and Planning restrictions also hamper revealing that the average downlink southern Asia, which is expected to mobile coverage, with the industry speed on 4G is 15.1 Mbit/s, more grow at a compound average growth seeking help from the government to than twice as fast as 3G (6.1 Mbit/s) rate of 12 per cent over the next five make it easier to build bigger masts across all the networks. Joint venture years, one of the highest rates globally. capable of carrying signals further. EE had the fastest 4G average speed, As voice revenues begin to stagnate, But Sajid Javid, UK culture secretary, is at 18.4 Mbit/s. Telefónica SA (NYSE: mobile data will experience greater also considering allowing customers of TEF)’s acquisition of pay-TV company and greater growth, as data heavy one network to “roam” on to another Distribuidora de Television (DTS) services like streaming video and — in effect sharing networks to help (which trades under the Canal+ brand data sharing grow in popularity. The customers find a signal. His proposals in Spain) has attracted the attention of increasing penetration of smartphones do not target the places where there Spain’s competition watchdog, reports and SIM-enabled tablets, alongside the is no reception, so-called not spots, Reuters. Telefónica closed the €750 deployment of LTE networks, is driving but instead the 20 per cent of the UK million (US$1.02 billion) acquisition in the growth of mobile data usage, with where there may be a signal from one June. users expecting the same services or two operators but not all. However, everywhere, whether at home or as simple as national roaming sounds, abroad. “To meet these expectations, technical and legal problems have been T-Mobile fires back at operators are extending the reach of raised. Ed Richards, chief executive of AT&T in war of words their LTE networks through agreements Ofcom, the communications regulator, with operators in other markets,” said has said he shared some of the over data roaming Nishi Verma Nangia, senior analyst at operators’ concerns about the impact T-Mobile US questioned AT&T Ovum. “In doing so, [they] are laying a on competition and investment. Mobility’s claim that it buys more solid foundation to allow travelers to However, national roaming was in data roaming than it sells, and maintain the same high-speed access technically and commercially feasible, continued to push for changes to the to the Internet they have while in their he said, even if there were “things we FCC’s rules that would more clearly home markets.” need to work through”. Mobile phone define what constitutes a “commercially groups are, however, united against reasonable” data roaming agreement. the concept of national roaming. In a detailed response to a recent Cost-cutting options AT&T filing on the topic, Andrew Levin, improve for U.S. roaming T-Mobile’s senior VP of government Roaming in the United States with your BT Plans to Close affairs, continued the war of words smartphone can be very expensive between the two carriers over data Wholesale Division without some form of protection to roaming. Levin wrote the FCC “should BT Group plc has appealed to UK keep costs down before crossing be skeptical of AT&T’s claim” that it regulator OFCOM for permission to fold the border, and the options to do is a “net payer” of data roaming fees. its Wholesale division into Openreach , so are growing. Rogers’ Roam Like He noted that in the third quarter of the BT-owned unit that controls access Home went live this month, allowing 2014, T-Mobile sent more than 2,000 to the UK’s telecom infrastructure, customers with Share Everything plans times the volume of data traffic to according to a Daily Telegraph report. to use their existing airtime and data AT&T than it received from AT&T in BT Wholesale reported revenues of buckets stateside at a flat rate of $5 terms of megabytes of usage. “And ₤2.4 billion (US$3.7 billion) in its last a day. After 10 days, customers are more importantly, however, assuming financial year, and if BT’s plan goes no longer charged for the remainder that AT&T’s ‘net payor’ [sic] claim is ahead, Openreach would become its of the month, adhering to the $50 accurate, it should wholeheartedly biggest division in terms of turnover. roaming cap mandated by the new support adoption of the benchmarks Nokia Networks has used its Capital wireless code of conduct that went into T-Mobile has proposed, since it would Markets Day to raise its margin targets, effect a year ago. As convenient as the stand to save the most on roaming aiming for long-term operating margin service is, it’s still limited to a subset costs,” he wrote. fiercewireless.com in the 8-11% range, compared with its of Rogers customers, leaving everyone previously stated target of 5-10%. In else to seek alternatives. Toronto- a statement, Nokia CEO Rajeev Suri based KnowRoaming uses a unique pointed to the advent of the Internet Mobile Data Will Account SIM sticker that can be affixed to your of Things as a reason for optimism for Half of Roaming existing SIM card. When you’re home on the vendor’s part -- “we have a in Canada, the sticker is dormant, but powerful role to play in this world,” he Revenues by 2019 once you connect to a U.S. carrier, it said. French conglomerate Bouygues Mobile data roaming with account kicks in and switches over. Unlimited raised its full-year sales forecast on the for up to 56 per cent of global data is $8 a day. Sending text messages strength of its third quarter, but this roaming revenues by 2019, generating is just $0.11 and making calls is $0.09 had little to do with the performance approximately $50bn (£31.8bn) as data per minute. Those numbers compare of its telecom unit, reports Reuters. use grows, according to global analyst to the standard roaming rates of $0.75 Bouygues Telecom ‘s operating profit firm Ovum. Europe continues to be the and $1.45, respectively. Using the SIM fell to €420 million ($522.1 million) largest contributor to global roaming sticker requires an unlocked phone from €531 million ($660 million) a revenues, accounting for 46 per cent of and BlackBerry handsets currently

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SAMENA TRENDS _ NOV_2014 aren’t supported. Since the SIM Identification (CLI) on its network. He that with the fast pace of technological uses its own local phone number, an said Cabinet has already approved developments in the industry, optional ReachMe feature allows calls the policy for the implementation of especially in the era of convergence, it to your regular number in Canada to the Interconnect Clearing House, and was now possible for the same medium be forwarded over. The only catch that consultations had already been to be employed for the transmission is that carriers usually charge for call held with stakeholders, including the of both voice and data, for which forwarding minutes unless you have telecom service providers. Dr. Omane reason communications regulations them as part of your plan. Vancouver- Boamah made these remarks on require periodic review to cover the based Roam Mobility uses the Wednesday in Accra in a speech read deployment of Next Generation T-Mobile network in the U.S., and its on his behalf by Mr. Issah Yahaya, Network (NGN) infrastructure. service includes calls and texts to both Chief Director of the Ministry, during a American and Canadian numbers. A public forum on Interconnect Clearing 10-day period costs $40 and includes House System in Ghana, organized 4GB of data. The one caveat is that by the National Communications you would need a different SIM card Authority (NCA). He said government and a unique number that goes with had taken policy decisions as it. Getting data only for a hotspot you part of regulatory enhancements, can use with a phone or tablet starts to improve telecommunications at $8 for 300MB over three days and oversight in Ghana, which include the up to $60 for 5GB over 30 days. The establishment of Interconnect Clearing Liberty Hotspot device that would be House License system for regulation used for that is a standalone cost of of telecommunications. The rest are $100. Not as well-known in Canada is the introduction of International Karma, which only offers data, not talk Wholesale Carrier License, the and text. It’s a small hotspot device implementation of Unified Access that costs $150 US and includes 1GB of Service License and Renewal of Mobile data that never expires. Each additional Telecom licenses, and the introduction gigabyte you want to add costs $14. of Mobile Network Operations License. Up to eight devices can connect to it He said the Communications sector at one time, and for each person that in Ghana had witnessed tremendous connects and signs up for an account, improvements since its liberalization you get an extra 100MB, while they get and reforms undertaken in the middle 25MB. The newest model shipping in nineteen-nineties. Dr. Omane Boamah December uses LTE with a fallback to observed that Ghana is recognized by 3G in coverage areas across the 300 the International Telecommunication supported cities in the U.S. that don’t Union (ITU) as one of most dynamic ICT have the faster connection. The device countries in the world. He said this was is small enough to fit in any pocket and in recognition of a supportive enabling is easy to use. While it doesn’t include environment for investment relying talk and text, you can use Skype, Viber, on a forward-looking national ICT for WhatsApp, BBM and iMessage as development policy, pro-business, alternatives to make calls and message telecommunications regulatory contacts. regime, abundance of broadband capacity, Applications technology, and the increasing deployment of Interconnect Clearing Value Added Services. He said modern House to reduce telecommunications and technology development are key instruments in communications the transformation of the country, and problems the expansion of the national economy The Interconnect Clearing House will to achieve a lower middle income provide a common, independent status. The Minister said substantial mechanism, to resolve disputes investments in terrestrial optic fiber and the settlement of interconnect infrastructure, the introduction of LTE accounting traffic for all the existing Four Generation technology, and the and future Operators in Ghana. competition in the submarine optic Dr. Edward Kofi Omane Boamah, fiber cable infrastructure market, have Minister of Communications said, ensured widespread availability of when established in Ghana, the broadband and massive bandwidth Interconnect Clearing House would, for data transmission and adequate for instance, help to resolve disputes capacity for internet connectivity. such as was made to his office by He said the country possesses 12.3 MTN against Expresso for transiting Terabits capacity for international and terminating international traffic, connectivity, nearly a quarter of the using masked or blank Caller Line sub-region’s total capacity. He noted

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cannot let this quest for innovation be unduly influenced by an existing corporate culture which prizes refinement over transformation. The good news is that there are proven ways to balance these two potentially contradictory objectives so that innovation can be prioritized while always keeping the existing business running smoothly.

The Digital Dilemma The advance of technology is predicted to be, by some distance, the most important trend affecting businesses over the next five years. Companies are in the midst of designing and implementing their strategic response to the opportunities and threats brought about by technological disruption. According to the 2013 Global Innovation Study by Strategy&, the world’s thousand largest corporate R&D spenders allocated about $52 billion to procuring, deploying, and supporting digital enablers.

However, market leaders still depend on their established and optimized business models to generate continual value. The danger is that such companies will pay lip service to the need for innovation Digital Innovation for while they continue to allocate the overwhelming proportion of their resources and executive attention to Market Leaders: Disruption what are currently the most profitable markets and customers. minus the disruption After a while, the current business model may be disrupted by innovative players and become less profitable, or even The digital age presents business leaders obsolete. This eventuality may leave the of well-established companies with a company playing a desperate game of stark dilemma. On the one hand, they catch-up with competitors that have have ample opportunities to introduce already gained a significant first-mover innovation and realize huge market impact advantage by embracing important through the use of disruptive technologies. disruptive innovations. On the other hand, they cannot afford to let this search for innovation detract When, for example, the iPhone was first from the constant process of honing and launched in June 2007, Nokia’s credit optimizing the company’s core business rating was rated as AAA by Moody’s. upon which it still relies. Moreover, they However, the company failed to invest

Samer Bohsali Abdulkader Lamaa Osama Eid Partner Principal Associate Strategy& Strategy& Strategy&

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quickly enough in the development of The mode of operation within the Throughout the experimentation smartphones, and its competitiveness Digital Innovation Group should process, the Digital Innovation Group suffered greatly as a result. Five years involve a trial-and-error learning should abandon some of the cherished later, in June 2012, Moody’s had process and constant iteration until marketing principles that have served downgraded Nokia to junk status. the product eventually meets a market the company well in the past. For demand. This sort of experimentation example, marketing orthodoxy states Even if the company does commit is usually associated with start-ups in that companies constantly need to properly to innovation, it can make the the experimental phase before they be asking customers what they want mistake of doing so within the limiting reach the desired product-market if products are to remain relevant and confines of its traditional operating fit. Failure and risk must be tolerated popular. However, this principle does model. to a significant degree if innovative not work well when the team is trying solutions are to be found. to re-imagine the business where First, the marketing team could customers would not know what to focus excessively on existing In early 2014, for example, IBM expect. In this era of disruption, a new customers, leading to incremental announced investment of US$1 billion technology can completely change product improvements, rather than in the formation of a business unit, their expectations. attempting to re-imagine the whole the Watson Group, built around its business. Second, when measuring Watson-branded cognitive computing The Digital Innovation Group should the feasibility of a digital innovation, technology, which will remain separate therefore avoid any bias towards executives might impose the same from the rest of the company’s currently fashionable products from strict timeframe and return on operations. IBM’s CEO, Ginni Rometty, dictating the scope of innovation. investment requirements as they do has stated that the objective is for the The team always need to be thinking for core products, ignoring the fact Watson Group to generate annual afresh. A quote attributed to Henry that a new business idea might need revenue of $10 billion within ten years. Ford makes this point: “If I had asked the nurturing and experimentation The Digital Innovation Group can people what they wanted, they would which render it unprofitable in the only progress properly once it has a have said faster horses.” shorter-term. Third, the company direct line to the senior-level (ideally, could subject the project to its existing, chief executive) sponsor. This would Finally, once the innovation team strict governance policies, thus ensure that the innovation agenda establishes a fit between a product and unnecessarily impeding its progress is adequately promoted among a market—that is, when the business with an inflexible bureaucracy that the organization’s key decision- model is proven and the innovative could involve, among other things, makers. Our Global Innovation Study product becomes commercially lengthy approval processes and strict emphasised the need for “innovation viable—the integration with the rest branding guidelines. champions” within the company. of the organization will need to be considered. The Digital Innovation Group The precise nature of this senior-level Leaders can avoid such potential pitfalls contribution is also key to project Conclusion by creating an autonomous “Digital success. Leaders must provide a robust We live in a digital age, and all Innovation Group.” The company’s strategic framework within which companies—from micro-enterprises own internal, but independent, team innovation can flourish. Without such to huge corporates—need to adapt. will have the mission to reimagine clear direction and ambition, ideas that Market leaders know that they have the business for the digital age, are generated will stand less chance to innovate and respond to disruptive even while the existing business of being executed. Alternatively, an technology, but they also need to continues to deliver healthy returns. unorthodox but promising idea may be preserve their core businesses and The group should be provided with dismissed without due consideration endure stability. The Digital Innovation adequate survival capital and direct because management is unable to Group is the proven vehicle for access to the senior-level sponsor, relate its potential to the overarching organizations to innovate and disrupt with a clear scope to experiment innovation strategy. As a consequence the market without disrupting their with digital products and business of this lack of clarity and support, the business. With the right senior support models outside the limitations of company’s innovation team cannot and survival capital, the Group can the normal corporate structure and see how it can make a difference. re-imagine the business and deliver routines. Some companies opt to future-proof digital innovations that fit complement their internal teams The Digital Innovation Group with the ever-evolving expectations of with external talent to boost their should also be able to leverage the the digital generation. digital capabilities. Facebook, for capabilities and resources of the example, has bought more than 40 organization without being restricted companies, such as Instagram or by its dominant culture, processes Whatsapp, since its foundation in or control mechanisms, which may 2004. It allows the acquired companies negatively impinge on the ultimate continued independence and freedom goal of innovation. It should adopt to innovate before any attempt to agile development methods to test integrate them formally within the new products in a quick and effective corporate structure. way, making use of flexible budgets and schedules.

1 Strategy&, “The Global Innovation 1000: Navigating the Digital Future”, 2013, (http://www.strategyand.pwc.com/media/file/Strategyand_2013-Global-Innovation-1000-Study-Navigating- the-Digital-Future.pdf) 2 Wall Street Journal, “IBM set to expand Watson’s reach”, January 9, 2014 (http://online.wsj.com/news/articles/SB10001424052702303754404579308981809586194) page_49 page_50 TECHNOLOGY UPDATES TECHNOLOGY UPDATES

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Technology NEWS

Fiber to the Home (FTTH) Currently, KSA is making progress, with STC and Mobily having decided to deploy Technology on the rise in FTTH extensively around the country. Qatar, where FTTH/B penetration rate is the MENA region currently at over 55% percent, has also The Fiber to the Home (FTTH) Council made great progress in covering most MENA has announced the launch of a new of the country’s territory, with a very research on the FTTH market in the MENA fast adoption by the leading operator, region at their upcoming 6th annual Ooredoo.In the North African countries, conference, which will be held under the FTTH/B is still in its infancy. Nevertheless, patronage of the Telecommunication there is a strong potential for this Regulatory Authority (TRA) on 24 - 25 technology to develop in countries such November 2014 at the Dubai World Trade as Egypt, Morocco and Algeria in the next Center. The study, coordinated by the 10 years to come. Technology Council’s research Partner - IDATE, is set to reveal the latest findings on the state Updates of FTTH in the region. “With the rise in Tibco and Ericsson development of MENA region’s ICT sector, FTTH is leading the new generation and Form Global OSS/BSS the way to innovation and technology. In Partnership this era of change, our region is in great Tibco Software and Ericsson have need for a future-proof infrastructure formed a global partnership whereby in order to answer the requirements of the new emerging perspectives,” said Tibco middleware will be included in Dr. Suleiman Al Hedaithy, Chairman at the portfolio of OSS BSS software and FTTH Council MENA. “The next biggest consulting and systems integration challenge for developers would be to services offered by Ericsson. The Tibco deliver 1GBPS internet speed to every software will complement Ericsson’s household along with maintaining own OSS/BSS portfolio of services commercial success,” he added. According in the area of charging, billing, order to the preliminary findings from IDATE, management, product catalog, customer the UAE is by far the most mature market relationship management and customer for Fiber to the Home technology in experience management. This is another the MENA region, with a penetration example of an Ericsson consulting and of Subs/HP of more than 65 percent, system integration engagement in penetration rates that are probably the which partnering with OSS/BSS software highest worldwide. The study also found that Saudi Arabia has strong potential to suppliers has been integral to achieving develop FTTH technology, with a current the results desired by the customer. Raj FTTH/B penetration of around 30 percent. Verma, EVP of Worldwide Sales, Tibco,

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says: “Tibco is a leader in infrastructure so small that the space they take up, based mobile connections worldwide and business intelligence software all added together, would be no more to grow from 2.7 billion today to 6.1 and Ericsson is the leader in telecom than a grain of sand. Now that the billion by 2020. In terms of mobile services. Together we can present scientists have the battery working and data traffic, video will continue to a portfolio of software and services have demonstrated the concept, they dominate, Ericsson said. Driven by that meets the changing needs of have also identified improvements improvements in the overall mobile communications service providers.” that could make the next version 10 video experience, it currently accounts Paolo Colella, Vice President and Head times more powerful. The next step for 45%-55% of mobile traffic. By 2020, of Consulting and Systems Integration to commercialization: the inventors Ericsson expects mobile video traffic at Ericsson, says: “We believe have conceived strategies for to have increased tenfold, accounting there is value in developing global manufacturing the battery in large for 55% of mobile data. partnerships to help deliver a more batches. comprehensive set of commercial Ericsson partners with offerings to our customers. Tibco is a Teleste : Brazil’s Arganet trusted name in software solutions for IBM to create tiny this industry and we have the global selects Teleste’s platform scale, skills and consulting and systems Finnish network equipment maker antennas 5G standards are still undefined, integration expertise. Together we Teleste and its partner, Digital but the companies involved in 5G can transform operators’ OSS/BSS Designers TV, have provided a research and standardization are solutions and enable communication solution for content acquisition already creating tools for next- service providers to become more and delivery of live streaming IPTV generation networks. Today Ericsson cost-efficient and agile.” for Brazilian operator Arganet. The said it is collaborating with IBM to solution includes Teleste’s digital design phased-array antennas for 5G headend platform Teleste Luminato. networks. Phased-array antennas can A Billion Holes Can Make Arganet provides internet services increase bandwidth by multiplying the in the north of Sao Paulo state. The a Battery number of sectors per cell site. Ericsson Researchers at the University of company’s core business is to provide said that the goal of its research with Maryland have invented a single fibre-based internet access for the IBM is to develop services that will tiny structure that includes all the business and residential market. The enable a multitude of new services components of a battery that they Teleste Luminato headend platform on the same frequency and offer data say could bring about the ultimate comes with an ISDB-T digital terrestrial speeds that are competitive to existing miniaturization of energy storage receiver. cable and wired internet access components. The structure is called speeds. The companies envision a nanopore: a tiny hole in a ceramic Global mobile phone roughly 100 antennas and radios on a sheet that holds electrolyte to carry the chip no bigger than a credit card. “We electrical charge between nanotube penetration to hit 90% are … working to solve the size barrier electrodes at either end. The existing and look forward to developing device is a test, but the bitsy battery by 2020 Ericsson predicts tenfold increase in antenna technology with IBM that will performs well. First author Chanyuan mobile video traffic over coming five open up possibilities for new uses,” Liu, a graduate student in materials years.90% of the world’s population said Thomas Norén, head of product science & engineering, says that it can above the age of six will have a mobile management for Ericsson’s radio unit, be fully charged in 12 minutes, and it phone by 2020, according to Ericsson’s in a written statement. “We recently can be recharged thousands of time. A latest Mobility Report, published on launched the industry’s most flexible team of UMD chemists and materials Tuesday. India and China are currently small cell, which allows for concurrent scientists collaborated on the project: showing the fastest growth, with third use of multiple technologies. Even with Gary Rubloff , director of the Maryland quarter net additions of 18 million its tablet-sized footprint, the form- NanoCenter and a professor in the and 12 million respectively. “The factor was limited by components Department of Materials Science falling cost of handsets, coupled with inside. This research collaboration will and Engineering and in the Institute improved usability and increasing help us enable mobile network builds for Systems Research; Sang Bok Lee, network coverage, are factors that that provide the right coverage and a professor in the Department of are making mobile technology a capacity even in the densest urban Chemistry and Biochemisty and the global phenomenon that will soon be environment.” “We have accumulated Department of Materials Science and available to the vast majority of the over 10 years of experience in Engineering; and seven of their Ph.D. world’s population,” said Rima Qureshi, developing radio frequency students (two now graduated). Many chief strategy officer at Ericsson, in a integrated circuit and packaging millions of these nanopores can be statement. The Swedish equipment solutions, demonstrating highly crammed into one larger battery maker said smartphones accounted for integrated phased arrays for various the size of a postage stamp. One of 65%-70% of all phones sold in the third applications,” said IBM Research’s the reasons the researchers think quarter, compared to 55% in Q3 2013, Dr. Mehmet Soyuer, manager of this unit is so successful is because and predicted that smartphone sales the group’s communication and each nanopore is shaped just like the will reach 800 million this year. Despite computation subsystems department. others, which allows them to pack the the impressive figures, smartphones “We look forward to collaborating tiny thin batteries together efficiently. “currently account for just 37% of all with Ericsson to help shape the future Coauthor Eleanor Gillette’s modeling mobile phone subscriptions”, Ericsson of mobile communications.” Even shows that the unique design of the said, so there is still plenty of room though Ericsson does not expect nanopore battery is responsible for its for growth. Indeed, the company adoption of 5G standards until 2020, success. The space inside the holes is expects the number of smartphone- the wireless network equipment giant page_51 page_52 TECHNOLOGY UPDATES TECHNOLOGY UPDATES

SAMENA TRENDS _ NOV_2014 SAMENA TRENDS _ NOV_2014 says that some network needs are technologies in their architecture mobile, and TV services. The telecoms already clear. Advanced antennas will for 5G including cloud computing, giant is also in the unique position of help support more mobile devices, as network virtualization, network having an army of broadband routers well as increase the data capacity of functions virtualization and dynamic all over the country to help supplement each device. service chaining. The approach, they their coverage and reduce the suggest could overcome bandwidth amount of cellular blackspots. Imran shortage problems, improve quality Choudhary, senior analyst at Kantar End to end 5G for super, of service so avoiding delays and Worldpanel, says: “Acquiring one of superfast mobile data loss, as well as reducing the vast the largest networks in the country Collaboration between NEC Electronics number of error-prone network nodes would give BT instant access to an Samsung and several academic centers needed for such a system. established customer base, allowing it in China and Iran, is investigating how to tap into and cross-sell its internet, software-defined cellular networking Huawei targets 2018 as TV and landline packages. O2 would might be used to give smart phone be a good fit as nearly a third of its users the next generation of super- year of the 5G customers already source their home superfast broadband, 5G. They The prediction of a 2020 roll-out for broadband from BT.” In the Ofcom-led provide details in the International 5G appears to have been revised after 4G auction last year, BT won a bid for Journal of Communication Networks an agreement between Huawei and spectrum in the 2.6GHz band which is and Distributed Systems. Currently, Russian mobile operator MegaFon ideal for providing capacity and high- the fourth generation of mobile to deploy trial networks in time for speed. O2 meanwhile won a bid for phone connection technology, 4G, the 2018 World Cup. It’s certainly a spectrum in the long-range 800MHz in as far as it has been adopted bold claim, considering no-one in frequency which could lead observers provides broadband-type connectivity the industry has a clue yet what the to the conclusion this deal has been for enabled devices such as smart final standard will look like... Despite on the cards for well over a year... The phones, tablet computers, laptops and this hurdle, Huawei expects pilot news becomes even more interesting other gadgets through two standards: projects to be completed by June when you consider that BT struck a the Mobile WiMAX standard (first 2017 which could be a testament to deal with O2’s biggest rival, EE, to use used in South Korea in 2007), and the company’s research being much its vast 4G network last month. This is the first-release Long Term Evolution further along than anticipated. In the something which isn’t likely to have (LTE) standard (in Oslo, Norway and UK, Huawei recently opened a £5 been agreed upon had EE known this Stockholm, Sweden since 2009). Peak million 5G research center alongside deal was on the cards, and BT could speeds were set in the standards at the University of Surrey to ensure now see itself in a position where it 100 megabits per second (Mbit/s) for the firm is at the forefront of mobile has access to both O2 and EE’s assets mobile users and ten times that for technology. It is expected that by as well as its own. In a statement, static, domestic 5G users, 1 gigabit 2020, 90% of the world’s population BT says it is “assessing the merits of per second. 100 Mbits/s is three times above six years of age will have a an acquisition of a mobile network faster than the earlier 3G system but mobile device. It’s little surprise then, operator in the UK.” The combination of users commonly do not see data as we reported last year, Huawei is the companies’ spectrum - combined transfer at such high rates, downloads investing $600 million into 5G research with BT’s existing assets - could lead are usually at best 10 Mbits/s. As yet which will help such a vast amount to a comprehensive and attractive there is no single standard for 5G of people be connected with faster proposition for customers. BT however although various systems are being speeds and more reliability. Ryan notes that the company has received touted based on rebuilding the Ding, president of Huawei products interest from shareholders in two UK cellular networks to be super-efficient and solutions, said, “With the help of networks to acquire their business. and exploiting different frequencies MegaFon, we are confident of turning with their capacity for greater data science-fiction-like service into 5G rates. The hope is to be able to achieve reality for citizens in Russia and soccer download speeds of perhaps 10 fans around the world, two years Gbits/s. Ming Lei of Samsung Research ahead of the industry’s estimated 5G and Development Institute China, Lei introduction date of 2020.” Japan and Jiang of NEC Laboratories, both in South Korea are expected to launch Beijing are working with colleagues 5G services in 2020. at the University of Electronic Science and Technology of China in Chengdu, Beijing Jiaotong University and the BT wants O2 back for University of Kurdistan. They have quad-play effort assessed the latest developments Nearly a decade ago, BT sold off O2 aimed at 5G systems and have to Telefónica for £17.7 billion. Now proposed their own novel end-to- it looks like the two are set for a re- end (E2E) software-defined cellular union after reports that BT are in talks network (SDCN) architecture which with Telefónica to buy the mobile they say offers flexibility, scalability, operator back after showing interest agility and efficiency. Moreover, it will in re-entering the mobile space as be sustainable for providers as well as part of a quad-play effort. BT, with the profitable. They are currently building help of O2, could be the only provider a demonstration system that will allow able to offer a true quad-play solution them to utilize several promising consisting of home phone, broadband,

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revenues and profits, particularly from services offered “over-the-top” of the Open Digital Roadmap for Internet by edge players, making further investment at current levels of price and cash flow both difficult and unattractive. Growth and Innovation Investment in the core of the network is crucial in sparking the rise of the “data- driven economy”. Internet traffic accounts for an increasing Network owners need to be allowed proportion of total communications to manage traffic on their networks so traffic and now has a major impact on as to protect networks from harm and the increase in total traffic carried by handle congestion effectively. Given the telecom network operators. The vast need for increased massive expansion of majority of traffic on operators’ networks the Internet, regulators should consider is now pure data, but the lion’s share of implementing approaches that lower the operators’ revenue comes from voice. cost of inputs controlled by government Even the big data-subscription fees policies, such as the cost of spectrum and operators are collecting aren’t making rights of way. up for the decline in voice revenues. Telecom companies need to create and Allowing network sharing is another foster a common ecosystem that should means of increasing network capacity. be stable, predictable and rewarding for Such measures will allow operators to all participants. In fact, network neutrality expand their networks faster and at poses large risks for telecom network lower cost. Operators need to price operators, consumer privacy, and even— services flexibly to achieve the levels of potentially—national security in general cash flow that will allow them to make in the form of disclosure, adjudication, the infrastructure investments required and discrimination. to meet surging demand. Regulators could create a favorable environment Telecom network operators should supporting infrastructure investments, be changed. How? such as granting regulatory exemptions Today the industry is quite different: to fiber investments. explosive growth in Internet traffic has Dr. Mustafa AYKUT put operators under intense pressure Giant Internet players are too International Affairs and Policy to increase communications network Coordinator dominant in their markets. This capacity. At the same time, operators Turk Telekom Group are facing downward pressure on their affected the telecoms sector.

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Thanks to the Internet, the network with four or more devices accessing of 21%a year to reach $506 million has become an ideal platform, a new the web increased from 32 to 43 by 2020 as more customers adopt marketplace, to share goods and percent. At the same time, the amount the technology. Video consumption services. In this fiercely competitive of bandwidth consumption per home is the key driver for increase in data and highly fragmented marketplace, is growing and is expected to grow usage with a traffic share of nearly 50 the battle for Internet dominance to four times the current amount percent in fixed broadband (end of promises to be an interesting one. by 2015. The 1.9 billion connected 2013) and it is mostly driven by OTTs. Telecom companies are faced a new devices today, are expected to reach 9 Their services worldwide grow rapidly scenario: network providers are billion by 2018. This is roughly equal by using infrastructure of operators offering services not only to customers to the number of smartphones, smart while operators’ growths are much but to content editors and now even TVs, tablets, wearable computers, lower. Between 2013 and 2015, global players without a network have the and PCs combined. The growth in OTT revenues are expected to grow at resources to access and serve hundred mobile smartphones and tablets a rate of 14%, where Telco operator millions of users. In this scenario, not represents the fastest growing sector revenues are forecasted to experience all men are created equal. Additionally, of connected devices, and offloading a much lower growth rate of 3%. the roles of network and content data traffic to Wi-Fi networks is further Traffic increase on the network results providers intertwine. Today, ‘’anyone’’ driving the growth of networking. in additional CAPEX and OPEX for can sell content or as many have come telecom operators. to expect, give it away for free. Video services are the main driver for bandwidth consumption. Right now, Net Neutrality Rules and New Some giant Internet companies every day, one out of ten mobile users Business Models are keys to a have become too dominant, giving is watching video content on their sustainable ecosystem them the power to control what devices. This accounts for a 38% of Operators will be able to recoup their applications are developed and used all data volume on mobile networks. investment in improved performance by consumers. Telecom companies While video content accounts for and capacity from both traditional are heavily burdened by regulation, nearly 40% of data on mobile networks, Internet access revenues and new taxation, spectrum and roaming rules web data makes up around 34%. differentiated services, thus being able that are stripping the industry of According to Cisco figures, all of the to earn a return on investment that funds required for investment. Today, emerging market regions experienced justifies continued investment. Internet players are taking revenues a doubling of mobile data traffic in away and leaving the operators, 2013. The Middle East and Africa A formal net neutrality policy with grew 107 percent, these key points in place would be a Latin America grew win-win outcome: operators would 105 percent, and be encouraged to invest in their Central and Eastern networks, Internet players would be Europe grew 99 free to innovate and deliver services to percent. There is a a global user base, and governments strong trend towards would benefit from the impact of unlimited capacity upgraded networks on the economy and higher speed and society in general. packages. Telecom companies need to focus on Telecommunications what’s important for all players which providers are is preventing an absolute decline in spending to upgrade the welfare of content providers and their networks, preserving incentives to invest. By investing in high- doing so, they can nurture the Internet capacity fiber ecosystem at both the edge and the broadband and faster core. The Internet ecosystem will only and more efficient flourish once the industry develops fourth-generation and designs new and sustainable wireless networks. business models. They are pursuing new business models regulators, investors, and ultimately to get content providers to share the the consumers to deal with the financial burden of carrying the traffic. consequences. How much stress and strain is Which services use the most put on networks by providing bandwidth on your networks? video? The rapid growth of Internet- Just to give you a recent example, connected devices is changing the way in Germany, Europe’s largest market broadband services are consumed. In for video content, revenue from on- 2013, the percentage of households demand services will grow an average

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However, attitudes toward Big Data in the Middle East are notably different. Rather than adopting a “me too” approach to Big Data – looking only at what’s been done in Europe or the United States - operators in the Middle East are increasingly interested in staying a step ahead, using Big Data insights to innovate and drive product development.

Whether a response to stagnant industry growth or ambitious Smart City and ICT development agendas across the region, one thing is clear: we need to use data differently. Monetizing Big Data has taken on new urgency and, in turn, requires a new approach.

Rather than seek data to solve a problem, we must start with the data. A recent report by strategy&, formerly Booz and Company, advocates for telecom operators to start with the data they have on hand, experiment, and see what correlations are revealed.

Vodafone Qatar is in a unique position to leverage insights from Vodafone’s Big Start with the data, not the Data leadership and networks globally to become a laboratory and live case study problem for this reverse approach to Big Data. Using expertise and algorithms from our networks, we are looking at new ways The appetite and interest in Big Data of enhancing our customer experience globally seems to grow almost as fast to be more personal, more informed, as the data itself. We no longer measure and people-centric. We are additionally data in gigabytes, but in zettabytes. looking to Big Data insights to engage Moreover, the amount of data generated and connect with customers in new ways around the world is expected to double to ensure that the launching of new every two years according to the Big Data products and services take into account Readiness Survey recently commissioned spikes in data consumption and content by Vodafone. In the Gulf Cooperation creation. Council (GCC), some estimates indicate that the Big Data and analytics market is For telecom operators, the opportunities set to grow five-fold – to USD 636 million to monetize Big Data by creating - by 2020. new revenue streams are boundless. However, it requires a fundamental shift In the telecommunications sector and in approach. Instead of asking how we certainly at Vodafone, the operational can use Big Data to market to customers opportunities presented by Big Data, or improve network efficiency, which we across the value chain, have been known have been largely successful at, we must for some time, in part because we are ask how we can use information in a way among the largest single sources of that benefits customers and gives them information. The tendency has been more of what they want, when they want for operators to adopt a top-down it. approach, whereby a business problem is identified and then data is sought to fix it. At Vodafone Qatar, we have had success with this approach, using analytics to improve service and network efficiency and market to customers more effectively. Several years ago, Big Data George Galica was nice to have – now it’s intrinsic to our Head of Managed Services business. Vodafone Qatar

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SATELLITE UPDATES

Satellite to remain rise from 93% to 94.3% over the forecast period – equivalent to 66.4 million dominant as MENA TV households. penetration rises to 94.3% Satellite TV will reach 60.9 million Thuraya satellite services viewers in the Arab world by the end of launch in twelve Airtel 2018, with free-to-air (FTA) households accounting for 87.5% of this figure, Africa countries according to Dataxis. Digital satellite pay- Airtel Africa, subsidiary of Indian TV subscribers will rise 83.1% in Arab- telecoms company Airtel, and mobile speaking Middle East and North Africa satellite services (MSS) operator Thuraya (MENA), from 4.13 million at the end of Telecommunications Company, have 2013 to 7.6 million at the end of 2018, the announced the commercial launch of the Satellite analysts forecast. The number of regional latter’s satellite products and services homes receiving FTA terrestrial analogue throughout twelve African countries. Updates signals will fall by 87.7% from 12.4 Airtel consumers in countries including million to 1.53 million, while FTA digital Congo Republic, Gabon, Ghana, Kenya, terrestrial television (DTT) reception will Zambia and the Democratic Republic rise 155% from 4.3 million homes to 11 of Congo are now able to buy Thuraya million during the same period. Pay- satellite phones and IP+ broadband DTT subscriptions will number 440,000 terminals, with the telco emphasizing by 2018, says Dataxis. Regional IPTV its commitment to delivering ‘innovative subscription is likely to witness growth products that offer 100% coverage.’ of 123.12%, jumping to encompass three Andre Beyers, CEO at Airtel Africa, said: million households at the end of 2018, ‘The partnership brings convergence to from 1.21 million households at the end the forefront of our business by ensuring of 2013. Analogue cable services will fall we are able to provide mobile and fixed 17.30 % from 890,000 to 736,000 across telecommunications services even in the the MENA region. As a whole, Dataxis most remote areas in Africa.’ Meanwhile believes pay-TV penetration is forecast Bilal Hamoui, the MMS operator’s vice to jump from 11.1% to 17.5% – up from president, is cited as saying: ‘Thuraya 6.3 million subscriptions in 2013 to 11.4 recognizes the importance of connecting million at the end of the period, with Africa’s most remote regions, which will total TV penetration reaching 94.3%, enable businesses and communities to or 66.4 million, Total TV penetration of thrive and grow.’ Airtel plans to extend households across the MENA region will the services into its remaining African

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SAMENA TRENDS _ NOV_2014 markets, although a timeframe has not communications, is a much more taken by DubaiSat-2 as it passed over been given. sensitive and complicated task Dubai when conditions were optimal compared to short-range national and under varying circumstances. applications. Coordination of The image will be updated every six Oman plans facility to spectrum utilization around the months to track the development detect interferences in national border-line is another issue of environmental projects, urban which needs special care. A statement planning, infrastructure and other satellite frequencies from SMU said that the visit was part projects. DubaiSat-2 consists of two Oman is planning to develop a of preparations to begin work on the main segments—the DubaiSat-2 one-of-its-kind satellite monitoring Satellite Monitoring Station Project Space Segment, which consists of station in the region with an aim in the sultanate and to examine the a spacecraft bus and an electro- to monitor the frequency spectrum operational equipment and systems optical payload that contains a push- allocated to various users of radio before TRA selects a bidder to broom camera with TDI sensors to communication services and to detect implement the project. The delegation provide space images, while the interference in satellite frequencies. was headed by Eng Yousuf Abdullah DubaiSat-2 Ground Segment includes Tasked with guaranteeing reliable al Balushi, vice president, Spectrum the Main Mission Control Station satellite services and interference-free Management Affairs, SMU. During the (MCS), Subsidiary MCS, Main Image operation, the Telecom Regulatory visit, the delegation observed the key Receiving and Processing Station Authority, represented by Spectrum technical measurements carried out by (IRPS), and Antenna system. Dubai Management Unit (SMU), is in the the station, as well monitoring systems Sat-2 weighs 300kg and is 2 meters preparatory stage to set up a satellite and antennas used, where one was high and 1.5 meters wide. The satellite monitoring station in the sultanate. noted to have a 12m diameter. The is equipped to provide space imagery To gain working knowledge in the delegation also discussed components of the entire world throughout its of station buildings, number of lifetime and can take multiple images staff operating the station, besides of the same area in one day, as well routine maintenance of antenna as receive and process these images and systems. Furthermore, a live from anywhere in the world within demo of monitoring and geo- one day. The satellite is equipped with location systems was presented innovative technology to enhance the to the delegation to identify the maneuvering capability and increase system’s quality and effectiveness. its agility by 300 percent, as compared Eng Balushi thanked the German to Dubai Sat-1. It is equipped with a administration and Kratos Integral propulsion system that allows the System Europe for the arrangement control of its altitude above ground of the visit. He also disclosed the level and modifies it automatically in intent of TRA to sign the contract to the event of any deviation from the implement the Satellite Monitoring orbit through a set of predetermined Station project very soon. and saved commands sent from the control station. The satellite makes field to ensure efficient frequency DubaiSat-2’s Dubai one full orbit around the Earth in 96 management, a team from SMU minutes, with 60 percent of its time recently visited the Leeheim Satellite Imagery Released By facing sunlight. The satellite aims to Monitoring Station in Germany that provide electro-optical images at a provides monitoring services to entire EIAST On Satellite’s First resolution that reaches one meter to Europe. According to the International Anniversary be used in several civilian applications, Telecommunication Union’s (ITU) The Emirates Institution Radio Regulations, the rise in number for Advanced Science of radio communication networks is and Technology (EIAST) congesting the spectrum. Hosting celebrates on Friday, more radio signals in same bands November 21st, 2014, the will raise the probability of harmful one year anniversary of interference if no action is taken. In a the launch of DubaiSat- continuously growing satellite telecom 2 from the Yasny Launch environment, transmissions and Base in Russia, using the networks are increasingly subject to Russian Dnepr rocket interference from a variety of ground- launcher in cooperation based transmitters. This has become with the Russian the major cause of service impairment International Space and degradation. According to Company (Kozmotras). ITU, careless transmission of radio On this occasion, EIAST signals in same frequency bands, released a mosaic image time and geographical locations by of the entire Emirate of independent networks will produce Dubai at a resolution of interference. Spectrum management, one meter. The mosaic in case of long-range communications image is comprised in air and international waters, of 10 satellite photos such as aeronautical and maritime

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SAMENA TRENDS _ NOV_2014 such as providing 3D images, update population of more than 300,000. RCS project development in various fields tested O3b’s service internally prior to including urban planning and urban integrating into its WiMAX network. development, scientific research, The company is the second O3b Trunk civil engineering and environmental customer with commercial service in projects, construction and geological the world, and second in Africa. mapping and research, in addition to providing specialized reports. EIAST was established by the Dubai Dubai Police Start SOS Government in 2006 to encourage Texting Service with scientific innovation and technological progress in Dubai and in the UAE. It Thuraya also aims to develop the scientific skills The United Arab Emirates (UAE) Dubai and knowledge of Emiratis. It is mainly Police has launched a new emergency involved in outer space research and service for the Thuraya XT handset. The development; satellite manufacturing Thuraya SOS service enables users to and systems development; space send a preprogrammed Short Message imaging; and ground station services Service (SMS), or text message, by and support for other satellites. pressing the soft key on the right side of the keypad for two seconds. The Dubai Police will then receive an SMS with the users’ Global Positioning System (GPS) coordinates from Thuraya’s primary gateway office. In remote emergency situations, users can send the automated message to receive help in areas lacking in connectivity. “Our collaboration with Thuraya has enabled us to save the lives of many people who were lost or required emergency care O3B Networks, RCS in remote areas. Although the UAE is Communications Bring a highly connected nation, people still need to be aware that there will always Connectivity to South be areas such as the desert and the sea Sudan that do not have mobile connectivity. When traveling in such areas, having RCS Communications has initiated a Thuraya XT handset can save their commercial service in South Sudan lives if they encounter any emergency,” using O3b Networks’ High Throughput said Maj. Gen. Khamis Mutar Khamis Satellite (HTS) constellation. The Al Muzainah, commander-in-chief of Internet Service Provider (ISP) signed a Dubai Police. long-term capacity agreement in 2013 to extend the reach of its broadband services. RCS clients received access to satellite broadband on Oct. 1, 2014. The ISP is using O3b’s service for new high performance services, such as RCS-WiMAX, in and around South Sudan’s capital city, Juba, which has a

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ADVVAL’s very specialized value-creation tools and techniques for improving upon ADVVAL Becomes Member revenue-generation strategies, we believe, additional marketing value will be created for SAMENA members on a mutual basis. of SAMENA We look forward to seeing ADVVAL contribute actively to SAMENA members’ Telecommunications Council collaborative efforts.” Jose Centeno, GM of ADVVAL, said, “We feel privileged to be a part of SAMENA. ADVVAL would like to take SAMENA members one step beyond the next generation of marketing campaign analysis, planning, and reporting. ADVVAL is keen to increase the ROI of the campaigns launched by SAMENA’s telecommunications operators and other members through its proprietary tools and methodologies. With SAMENA’s support, we hope to contribute tangibly to the revenue interests of our colleagues at Dubai, UAE, October xxx, 2014 - industry association that represents SAMENA Council” SAMENA Telecommunications Council telecommunications service providers has announced that multinational from around the region, and beyond, ADVVAL generates immediate financial firm ADVVAL, a company that offers ADVVAL will benefit from numerous value by helping optimize the return on an advanced campaigns analysis opportunities to participate in industry investment (ROI) of campaigns whether and planning tool has joined its meetings and conferences organized it is retention, cross-sell and upsell. membership, which includes top-tier by the Council, exchange ideas and This is achieved through an advanced, telecom operators and technology collaborate with other fellow members telco-specific, proprietary software that providers from across the South Asia, of the trans-regional consortium. automates the calculation of the financial Middle East, and North Africa region. impact of campaigns and provides tools Mr. Bocar BA, CEO of SAMENA for their in-depth analysis, based on As a member of South Asia - Middle Telecommunications Council, said, ADVVAL’s 20+ years’ experience in the East - North Africa (SAMENA) “We welcome ADVVAL to the telecom industry. region’s sole operator-driven membership of SAMENA Council. With

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