Volume 07 _ Issue 04 _ April 2016 SAMENA TRENDS EXCLUSIVELY FOR SAMENA TELECOMMUNICATIONS COUNCIL'S MEMBERS BUILDING DIGITAL ECONOMIES
A SAMENA Telecommunications Council Newsletter
Articles
Umniah and Huawei International Company Join Forces to Launch... Page 63
Businesses are Swimming Against a Growing Tide of... Page 69
Mr. Tarig Rahamtalla Vice President, Sudatel Chief Executive Officer, Expresso Telecom Group Page 04
International Mobile Roaming: Operators’ Innovative Solutions vs Consumer Usability
www.samenacouncil.org SAMENA CONTENTS VOLUME 07, ISSUE 04, april 2016 TRENDS REGIONAL & MEMBERS
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Editor-in-Chief Bocar A. BA
Contributing Editors Izhar Ahmad Javaid Akhtar Malik
Contributing Members Orange Umniah
Publisher SAMENA Telecommunications Council
Subscriptions [email protected] 04. 83.
Advertising [email protected] EXCLUSIVE TELECOM
Legal Issues or Concerns [email protected] INTERVIEW LEADERS’ Mr. Tarig Rahamtalla Vice President, SAMENA TRENDS Sudatel SUMMIT 2016 [email protected] Chief Executive Officer, 19th May 2016 Tel: +971.4.364.2700 Expresso Telecom Group Jumeirah, Mina Al Salam Dubai, UAE
© 2016 - All rights reserved. SAMENA TRENDS is a trademark of SAMENA Telecommunications Council. EDITORIAL
SAMENA TRENDS _ APRIL 2016
International Mobile Roaming: Operators’ Innovative Solutions vs Consumer Usability
For telecom operators, international roaming innovations are designed for simplicity in demands much careful balancing of roaming rates, setting up, predictability in costs, flexibility that quality of service, security, and transparency of suits user profiles, and ease of understanding. information for the consumer. It requires much to keep this once-highly profitable revenue stream Among other factors, a large part of the still relatively profitable. Both regulatory and enhancements introduced to improve user customer usability trends in international roaming usability may be linked to operators’ initiatives over the past few years have continually pointed such as the Data Roaming Transparency Schemes. to new strategy requirements for the operators, This transparency aspect of roaming is particularly clearly indicating the changes in business rules. important for the customer, with the mobile industry fully acknowledging and addressing the Keeping service usability and transparency high demand for improvements in favor of the end-user. in the eyes of the customer, while keeping the roaming business profitable, is a major challenge. While operators remain in search of new Steps taken by telecom operators in introducing roaming innovations, for example, for customers area-wide roaming innovations, suited to the situated on national borders with cross-border needs of customers within a specific “one- traveling and communication requirements, market” geographical area, and successive price operators also realize the fact that various decreases have visibly impacted profitability. To challenges have to be overcome along the way. the end-user’s advantage, innovative roaming That is, both for national security and revenue packages created by operators all around the assurance purposes, undetected roaming needs world speak of significant developments carried to be mitigated. Similarly, the issue of taxation out in the form of reduced-cost roaming plans, in all its relevant forms within the context of bundled roaming services, new packaged international roaming needs to be addressed. services, and new transparency measures to keep the customer better informed of service costs. With time, as is evidenced by the loss of roaming revenues, the process of commoditization is Innovations introduced by telecom operators also increasing. Thus as operators reconsider and include roaming products with flat daily rates and realign their relationships with OTT players and multi-service packages, intelligently designed rate end-user device makers, there is no denying models adapted to end-users’ network profiles of the fact that operators continually require a and lifestyles, and, for corporate customers, their sustainable investment strategy on new network business profiles and communication needs. To technologies, and must also complement this this effect also, “one-rate” service bundles have strategy with a value-proposition that will help been launched, promising an experience similar to them better commit to developing and exercising that in the home market while roaming in other their role as enablers and not as simple network markets within a specified geographical boundary. operators. Doing so will require an elevated A large percentage of operators, in this regard, as level of dialogue within the industry, in close a basic innovation in roaming, offer voice bags that communication with policy-makers and regulators. allow for certain number of calls to be made for a fixed price or specific destination to be accessed Roaming is an essential part of the need for within a fixed period of time, among other features. creating a better connected world, and for setting a foundation of a digitally developed progressive Furthermore, some operators’ new data economy. In this regard, it deserves the attention roaming packages aimed at the enterprise of all the stakeholders that international roaming, sector have made international mobile data while meeting customer usability needs, also fulills simpler to use and affordable for businesses. investment requirements of telecom operators. Many of such business-centered roaming
Yours truly,
Bocar A. BA Chief Executive Officer SAMENA Telecommunications Council
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SAMENA TRENDS _ APRIL 2016
A track record that spans 20 years, influencing, advising and driving strategic financial direction for diverse, high-profile global conglomerates. Proven expert ability to translate business and legislation requirements into strategic and operational objectives while Mr. Tarig Rahamtalla maximizing revenue. Played a key role in the successful consolidation of Sudatel Group Vice President, into a single global entity. Strong accounting background which honed my executive leadership abilities, as a result I have become fully adept at high-volume budget setting Sudatel and management within global conglomerates including Accenture, Arthur Andersen, Chief Executive Officer, and Marriott International.
Expresso Telecom Group As a Strategic Leader, I am expert in applying acute knowledge to strategic planning and forecasting as I successfully established new Revenue Assurance Department for Sudatel Group. Spearheaded rigorous evaluation of West African subsidiaries on behalf of Sudatel, resulting in significant financial savings made throughout the company’s consolidation process. Developed and implemented a cogent financial system for the Universal Service Administration Company (USAC), and devised highly effective forecasting tools for Accenture. Through tactical leadership, I streamlined business operations to drive growth, increase efficiency and bottom-line profit.
My strong financial management career enhanced through consistent achievement of success in diverse roles at numerous locations within the US and the Middle East. Exceptionally conversant with complex global regulatory, compliance and reporting requirements and practices including IFRS, US GAAP, and SOX.
Bachelor of Business Management from Cairo University (Khartoum Branch), Master in Accounting Controllership from Strayer University in Washington DC, Degree in Forensic Accounting from George Town University in Washington DC, Bachelor in Revenue Assurance from Global Revenue Assurance Professional Association in Chicago, USA, Blue Ocean Strategy from Insead University in Fonatinblue, France, Finance for Senior Executives certification from Harvard Business School in Boston USA.
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SAMENA TRENDS _ APRIL 2016
Q: Please describe your current business focus Q: In your opinion, what are some of the most as one of the region’s recognizable telecom critical factors that now define the success of brands. telecom service providers?
A: Expresso formally established a corporate office in A: State-of-the-art network equipment and hardware 2007, operating in the heart of Dubai. We are regulated by have become ubiquitous, accessible for even the smallest the Dubai International Financial Centre (DIFC), and we are telco providers. The softer ingredients that come on an African Telecommunication and information services top on that core structures are, nevertheless, still very company. We currently hold operations in 3 West-African diverse: customer experience, product design, distribution, countries – Senegal, Mauritania, and Guinea-Conakry, innovative solutions… The operators that get them right serving over 4M customers. Even though we are one will retain the edge against commoditizing pressures group, for strategic reasons, each OpCo operates under taking place on basic communication services. its brand – Expresso Telecom in Senegal, Chinguitel in Mauritania and Intercel in Guinea-Conakry. Q: What are some of the technology and customer-centric initiatives that you as an The company main focus is to keep enhancing our network quality of service. Hence, delivering a better experience to operator have embarked upon? our customers and the whole community. Even though Expresso Telecom operates high-speed networks over we are behind our main competitors regarding coverage, A: 3G. We are bringing broadband services to Africa. Our we keep pushing boundaries by upgrading/enhancing connection software immediately connects you to the existing ones and gradually expanding in strategic fastest data speed available, whether this is GPRS, EDGE, regions/areas. Keeping always in mind our ultimate goal, 3G or WiMAX. The company has been building and which is improving our people’s life – being a 100% African extending networks across all our markets as we know company, we are highly committed to our community. To that demand for internet and data access will increase. summarize, we have been working hard to deliver the best Our vision is to bring people together, and our networks quality – fixing the basics while still leveraging products/ allow rural communities to be connected. Our advantage services which are relevant to our market. is borne from the use of CDMA technology that allows for better geographic coverage. This has allowed us to bring Q: Given the innovative technology and business telecom and internet services to more people than was solutions in the industry and the expanding possible before. broadband economy, what is your perception of where the telecom sector is headed and how Q: What are your views on net neutrality, strategically equipped are operators to create especially on telecom operators’ need to reach new value for themselves? out to as many data consumers as possible, and to generate sustainable revenues? A: Operators have been taken by a storm with the digital revolution that they helped to enable: over-the-top players A: Over-the-top players have managed to reach billions have very quickly occupied a significant space in the lives of customers in the back of infra-structure rolled out of telecom users and have, dangerously, fueled the notion by telecom operators during decades of operation. that telcos might move closer and closer to becoming Finding a mechanism to allow them to participate in the utilities: fundamental in everybody’s lives, but unable to extraordinary CAPEX required to keep that infra-structure create new value in and by themselves. Telcos need to be going, as more and more data is consumed, can be a good selective in choosing where to dare and create their digital idea. The discriminating aspect of non-neutrality, however, solutions, spotting local, regional gaps that give them in which few companies risk buying special lanes for users an advantage that cannot be easily replicated by some to access only their services, is a sensitive issue that still ambitious entrepreneurs in a garage start-up thousands of needs to be further debated and assessed with society, miles away. New value creation will come from painstakingly telcos and internet players at large. seeking sensible adjacent territories, and finding them will demand a lot of cautious experimentation. Q: How has the telecom industry helped create
Nevertheless, broadband has already reshaped the a framework for the achievement of the 17 telecommunication environment by enabling technologies Sustainable Development Goals of the UN, that once seemed so distant from reality. Projects such as and what role do you envision playing in their Smart Cities, E-Government, and Mobile Payment are only fulfillment, both individually and collectively? a few examples that show where the market is heading to and what is already possible to do. We, as operators, should A: I would say that telecommunication is one of the be partnering with our peers to do it collaboratively and few industries that has immensely contributed to the more efficiently, sharing knowledge and capabilities. By world/human development in the last decades. In the doing it, we can all benefit from it and most importantly, region where we operated particularly the fingerprints be able to deliver innovative, quality-driven and sometimes of telecommunication, and it is a contribution to the even life-saving services for the world. development of our people, it is very evident. I can give
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SAMENA TRENDS _ APRIL 2016 an example of already seven sustainable developments goal already telecom playing a considerable role in establishing them, but overall, Telecom services, and the unlimited range of digital services that they enable eliminate friction from simple human transactions and empower a whole new generation of entrepreneurs and economic agents. Suddenly, populations that had been until very recently deprived of basic mechanisms to have access to payment systems, information, education, health services and many other life- changing services at their fingertips. Their productivity gets dramatically increased and, as a whole, they immediately move more quickly and surely to overcome poverty and find a relevant place in the global economy.
It is a responsibility for telecom to lead the way in establishing these goals, and we have seen the real positive impact in how people live and work in the regions we operate. Which, at the end of the day, brings us personal fulfillment and proud of what we have achieved so far and foremost, give us the strength to keep going and excel our limitations.
Q: How have trends in 4G and considerations of 5G helped shape your new business priorities?
A: 5G is still very nascent and needs to be properly deployed and scaled-out before it becomes a viable option for some of our markets. 4G is the immediate frontier to be conquered in practice, but we want to be careful not to let the pursuit of 4G become a hindrance to the solid establishment of a high-quality 3G footprint.
Q: Please share one final view on what truly symbolizes your ambitions and contributions as a telecom operator of the future.
A: We firmly believe our culture and core values are the sources of competitive facilitate their lives. And we can only achieve it by advantage. We will continuously reinforce our culture empowering and involving our collaborators in each and by providing our people with guidance on how they every important decision that we take. We want to be can demonstrate these core values every day. We keep known as a responsible and innovative business, and we improving our processes, organizational structures and are determined to lead by example in the market in which performance management measures to promote the we operate. virtues of our culture. Our core values drive our business performance.
Our ultimate goal is to be leader in digital communication and technology to serve our community and enhance/
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SAMENA TRENDS _ APRIL 2016
ROAMING REVENUES
Source: Data approximated based on analysis by Visiongain, presented in analysis by Deloitte.
Research Note: Telecom operators understand that the concerns relating to the regulation of international mobile roaming have revolved around pricing issues, especially when the EU experience is taken as a reference. However, the complexities relating to international roaming need to be appreciated and, fortunately, are being recognized by regulatory authorities. All regulatory measures must remain attentive to the need to avoid unintended consequences for the mobile users, the governements themselves, and the telecom operators, especially. The sustainability of business should occupy as much space in the minds of the regulators as other factors; and international roaming is a significant part of ensuring such sustainability.
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MEMBERS NEWS
oversee the operation. The new platform will also alleviate logistical overhead for global network operators, creating a new model of neutrality for entrepreneurs, with a data center in Marseille operated by Interxion, a company providing colocation Omantel lauds Marseille data center services across Europe. “[W]e aid in colossal cable project are thrilled with the successful execution Oman Telecommunications Co. SAOG — of this project,” Sohail Qadir, Omantel’s known as Omantel — announced recently wholesale VP, said. “The AAE-1 cable in Muscat the completed submerging of represents a further step in our vision to its 25,000-km cable system in Marseille, become a truly global telecommunications MEMBERS France, successfully connecting Hong player. Throughout history Oman has Kong to Singapore, Africa and Europe, always been a gateway to the region, UPDATES all via Oman. With the project’s “landing,” facilitating trade and commerce from the top telecom provider for the sultanate East to West and West to East. At Omantel, has created a significant shortcut between we aim to continue our nation’s proud Europe and the Far Eastern nations. tradition, this time facilitating the transfer Omantel’s CEO Talal Said Al Mamari of information in this new digital age.” described the city of Marseille as an easy choice due to its advantageous geographical location and position as a major port of trade and physical gateway into Europe. “This achievement would not have been possible without the support of the city of Marseille,” Al Mamari said. “To land a cable of this magnitude requires STC reports Net Income permits and regulatory approvals from of SR 2.4 billion; an increase many areas within the government. Our experience of Marseille is a city that of 22% is professional, business oriented and Saudi Telecom Company (STC) announced one that welcomes foreign investment.” the company’s preliminary financial With its AAE-1 submarine cable project, results for the period ending at 31 March Omantel is the first company to provide 2016 (3 months). In accordance with the such connectivity between the far-flung approved dividend policy for three years continents. The company relied on its starting from the 4th quarter 2015 which French subsidiary, Omantel France, to was announced on 11 November 2015,
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SAMENA TRENDS _ APRIL 2016 and have been ratifi ed during the and 10.4% compared to the immediate Society with innovative services that General Assembly Meeting on April previous quarter. In addition, fi xed will enhance the customer experience,’ 4th 2016, STC will distribute a total of broadband customer base increased commented Jean-Claude Geha, Vice SR 2,000 million in cash dividend for 17.5% compared to the same period President and Head of Managed Q1 2016, representing SR 1 per share. last year, and 2.3% compared to the Services at Ericsson. Omantel’s CEO Commenting on the results, STC Group immediate previous quarter. Enterprise Talal Al Mamari noted that the fi rm’s CEO, Dr. Khaled H. Biyari, stated: “The business unit overall revenues increased collaboration with Ericsson signals fi nancial results achieved for the 1st approximately 17% during the 1st its ‘accelerated approach toward quarter of 2016 refl ect the efforts being quarter compared to the same period network investment, enhancement and made to constantly evolve, improve last year, driven by the increase in upgrades across the Sultanate, both for and develop the company’s strategy Business sector data services revenues retail consumers and corporate clients’. and operations both domestically and and associated services during the internationally. Revenues from services quarter. increased 2.3% during the 1st quarter compared to the comparable period last year. We will continue to invest in our employees, focus more on customer satisfaction and enrich their experience as part of STC strategy, by PCCW Global and Keppel deploying cutting-edge technological T&T collaborate on an resources, and investing in technology Omantel and Ericsson international carrier & innovative solutions that shall sign managed services exchange in Hong Kong enable the Saudi society to elevate deal to new horizons in the new telecom PCCW Global, the international world. This will be in parallel with the Ericsson has announced the signing of operating division of HKT, Hong country’s transformation program a four-year managed services contract Kong’s premier telecommunications which support the expansion in the with Oman Telecommunications service provider, has entered into a new digital economy, and will enable Company (Omantel), the country’s long-term collaboration agreement* speedy processing of all transactions, incumbent fi xed and mobile operator. with Keppel Data Centers Holding Pte which will be more convenient for the Under the deal, the Swedish vendor Ltd, a joint venture between Keppel society and contribute to improving will operate and maintain Omantel’s Telecommunications & Transportation the overall productivity. In light of network as the sole managed services Ltd (Keppel T&T) and Keppel Land the increasing importance of Telecom supplier. The operator has also Limited. The two companies will co- and technology, STC will continue develop and market to adopt initiatives to invest in an international carrier unconventional telecom infrastructure exchange in Hong Kong, through investments in networks and which offers connectivity- associated systems in order to allow related managed services smooth transformation to provide to facilitate interconnects. highly secured cloud computing The collaboration services. All this will happen through leverages PCCW Global’s long term productive partnerships extensive global network with government institutions which connectivity and marks the will create an environment that shall expansion of Keppel T&T’s encourage investments and eventually data center footprint to serve the end user and society in the light Hong Kong. Located in of increasing importance of information a prime business district technology and Telecom.” With regards on Hong Kong Island to international operations, the 1st and a 40-minute drive quarter witnessed revenue growth of selected Ericsson to provide its real- from Hong Kong International Airport, 3.7% in the controlled international time customer value management the international carrier exchange will subsidiaries compared to same period (CVM) service, enabling it to deliver feature 1,000 square meters of high last year. Domestically, the 1st quarter targeted, personalized campaigns quality telecommunications center witnessed revenue growth of 2.9% from with advanced capabilities focused on space upon its expected completion in domestic operations compared to same enriching customer experiences and the fourth quarter of 2016. It will be period last year. As STC continues with driving cognitive marketing, thereby fi tted out to Tier III specifi cations with the introduction of innovative services assisting Omantel in improving 2N power redundancy that ensures and customized offers that encourage revenues, reducing churn and service availability of up to 99.982%. mobile usage for both post-paid and enhancing campaign effectiveness. The international carrier exchange is pre-paid “SAWA” customers. STC’s ‘With the deployment of Ericsson’s situated in the same building as the continues with the deployment of the customer value management services, Hong Kong Point of Presence (PoP) fi ber optic network for both business together with a long-term managed for the new Asia-Africa-Europe-1 and residential. During the 1st quarter, services partnership, Omantel will be (AAE-1) submarine cable. Stretching FTTH Customer base increased 39.5% able to enhance network and services approximately 25,000 km, the AAE-1 is compared to the same period last year, capabilities while grasping the new opportunities created by the Networked
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SAMENA TRENDS _ APRIL 2016 designed to connect Asia, the Middle TT will make its network infrastructure preceded by the Time to Invest in Arab East, East Africa and Europe, and is available to the vendor for real- Youth and Their Innovations Conference, expected to be ready during the fourth time testing, and the companies will organized by MIT Technology Review quarter of 2016. It will employ 100Gbps work together on trialing 5G and IoT Arab Edition. During the conference, MIT technology, with a capacity of more than technologies for tracking, metering, Technology Review Arab Edition’s five 40 terabits to provide customers with smart cities, smart home and latency- innovators under 35 in the Arab world low-latency, direct connectivity around sensitive applications. They will then were announced. The ninth edition of the world. The building is also served use their findings to develop 5G-ready this year’s competition received an by PCCW Global’s extensive backhaul solutions that will allow TT to evolve its outstanding 5,967 individual and team network, which will seamlessly link the network and be ready for the eventual applications from 21 Arab countries, up international carrier exchange to many introduction of commercial 5G services. from 4,275 last year, and representing submarine cable landing stations and The MoU will see the companies a record participation of over 16,500 serve as a gateway to mainland China. focusing on the development of a cloud entrepreneurs up from 12,000 last Mr. Marc Halbfinger, Chief Executive architecture for radio and core network year. The 9 winning teams across three Officer of PCCW Global, said, “We technology that can support Network tracks - Ideas, Startups, and Social are pleased to be playing a role in Slicing in particular. Nokia notes that Entrepreneurship - hail from Kuwait, extending Keppel’s facility footprint with Network Slicing, a 5G network Saudi Arabia, Jordan, Lebanon, Egypt, to Hong Kong, which will reinforce the can be tailored to the diverse needs of Tunisia and Morocco. The US$50,000 city’s reputation as one of Asia’s leading different industries, enabling the large- top prize for the best start up track technology hubs. Indeed, Keppel T&T scale transformation of sectors such as was awarded to Kuwait’s Ghinwa, has been running high quality facilities healthcare, security, automotive, public who are building a mobile application supporting mission-critical operations safety, industrial manufacturing, smart that can be used by users to perform for more than 10 years.” Mr. Thomas cities and more. Ernst Nassl, Head Karaoke where songs are licensed Pang, Chief Executive Officer of Keppel of Region Turkey and Central Asia at from the copyright owners to ensure T&T, said, “We are happy to partner with Nokia, commented: ‘Our work with legality, allowing users to share and PCCW Global for our first investment customers on 5G is crucial in allowing promote their talents across different into the Hong Kong colocation market, us to better understand real network social media platforms. Several high- which benefits from the city’s status as use-cases for this technology and to profile entrepreneurs, investors and a key telecommunications and financial accelerate commercial use.’ government officials from Saudi Arabia, hub, as well as its connectivity to the region and beyond shared insight other hubs in Singapore, Amsterdam, during the conference and judged London, and Sydney. The expansion of the competition. These include HRH Keppel’s data center footprint to Hong Saud K Al-Faisal, Executive Director Kong is another step towards creating a for Investment Policy at SAGIA, HH data center value ecosystem that goes Reema Bint Bandar, founder and CEO beyond colocation to providing value- MIT Enterprise Forum of Alf Khair, Fady Mohammed Jameel, added services and connectivity for our Arab Startup Competi- President of Community Jameel valued clients.” Hong Kong is home to tion supported by Com- International, Scott Gegenheimer, a strategic data center market that acts munity Jameel and Zain CEO of Zain Group, Hassan Kabbani, as a springboard to mainland China for CEO of Zain Saudi Arabia, Fahd Al multinational corporations because of Group Rasheed, Group CEO and Managing its proximity and mature legal system. MIT Enterprise Forum Pan Arab, in Director of Emaar Economic City and According to the independent Structure partnership with founding partner Wassim Khashoggi, vice secretary Research consultancy, the territory’s Community Jameel and the Zain general operations of the Economic data center market was valued at Group, announced the winners Cities Authority. Speakers and judges HK$4.8 billion in 2015 and is expected of the MIT Enterprise Forum Arab from several leading organizations to grow at a compound annual growth Startup Competition from a total of in the finance and technology space rate of 18% to reach HK$10.8 billion by 76 contesting teams from 15 Arab such as Google, Facebook, Oak 2020. countries. The competition’s final award Investment Partners, 500 Startups and ceremony was held at the Bay La Sun Hotel & Marina in the King Abdullah Economic City on April 14, 2016. This year’s event was also supported by Turk Telekom, Nokia ink government partner 5G, IoT MoU the Economic Cities Authority and hosting Turk Telekom (TT) and Finland’s Nokia partner the King have signed a Memorandum of Abdullah Economic Understanding (MoU) to accelerate the City along with development of 5G radio access network global technology technology and the applications that provider Huawei. will drive the Internet of Things (IoT). The competition was According to a press release from Nokia,
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MBC Group also shared insight during is expected to help Telenor expand its compared to the previous year as well the event. The announcement of the 3G footprint to provide data and voice as earnings per share going up 10%. MIT Enterprise Forum Arab Startup services to its growing customer base. The announcement was made during Competition ceremony took place the fi rst Board of Directors meeting during the evening award ceremony chaired by Dr. Abdul Rahman Dirar, and the winners took home a pool Chairman of Board of Directors, which of prize money totaling US$150,000. took place this year with participation Apart from the winner’s prize money, of all members from both inside and each of the Ideas, Startups, and Social outside of Sudan. The board meeting’s Entrepreneurship tracks semi-fi nalists agenda included reviewing the Group’s benefi tted from top tier training, Huawei, Baidu build fi nancial performance and the external mentorship, coaching, media exposure, China’s fi rst T-SDN OTN audit reports for the fi scal year 2015. and great networking opportunities The Board also ratifi ed the fi nancial throughout the competition. Startups Huawei and Baidu announced they results report and the fi nal accounts Track: Winner: Ghinwa from Kuwait; have jointly built China’s fi rst internet audited by the General Auditor Offi ce 2nd place: Zamen from Egypt (A data center OTN that supports in Sudan and by independent auditor mobile application for real-time news transport SDN (T-SDN). Baidu will use fi rm “International Accounts” based feeds, fi ltered to display only the the network to support its open cloud in Saudi Arabia, as well as reports by topics users interested in); 3rd place: services as well as its core search Ernst & Young who are responsible B8ak from Saudi Arabia (A mobile business and services. The network for auditing the Group’s companies application for home maintenance uses Huawei’s T-SDN bandwidth in West Africa. The Board of Directors delivery) Ideas Track: Winner: Tutorama on demand capabilities to provide also adopted the invitation of the from Egypt (A marketplace of pre- transmission pipes that allow Baidu to General Assembly to convene on the vetted, professionally recruited tutors, handle burst traffi c between connected 30th of April 2016 to approve the fi nal which students and parents can data centers. Baidu currently mainly accounts for the Group and distribute use to search for tutors by subject, uses point-to-point interconnections cash dividends to shareholders. curriculum, location/distance and between IDCs, which results in heavy Commenting on these results, Dr. scheduling availability; 2nd place: Deep load on the super IDC core switch, Abdul Rahman Dirar, has praised the OR from Morocco (Data Analytics and compromising traffi c scheduling. With Group’s remarkable fi nancial results, Operations Research to help make the new T-SDN based network, Baidu which showed a fi nancial improvement quick and educated resource allocation will be able to transmit traffi c from in all areas and which confi rms the decisions); 3rd place: Ostor Lab from services at different levels of granularity continuous growth of Sudatel Group’s Morocco (A cloud-based mobile at different optical network layers, activities for the second year in a row. application vulnerability scanner) reducing traffi c load on core switches Eng. Tarig Hamza Zainelabdin, Sudatle’s Social Entrepreneurship Track: Winner: and allowing the company to adjust CEO, has expressed his satisfaction Hydropneumatic Flushing System from transmission pipes and transmission with the results achieved over the past Tunisia (An economic water fl ush that pipe bandwidth in real time. “SDN is year and which have been authorized does not leak and that withstands the product of applying IT technologies by the Council. He also stressed that frequent use);2nd place: Pathfi nder to networks,” Huawei president of fi xed the Group is moving steadily towards from Lebanon (A mobile app and a networks Zha Jun said. “These networks achieving the strategic objectives set belt, both automatically and securely evolve from pure data transmission to by the Group and that was approved connected to serve the visually impaired open, programmable, and service- by the Board of Directors late last harmonically and safely)and 3rd place: oriented systems that can be driven year. Zainelabdin also praised the Low Cost PPC from Jordan (A lower leg by applications. They support dynamic performance of all employees working prosthetic with low production costs). networking, centralized control, and in the Group’s companies and stressing network-wide optimization.” on the pivotal role they play and for their contribution to the development of the telecommunications sector in all the countries in which the Group operates.
PTCL inks fi ber leasing deal with Telenor Pakistan Sudatel Group ano- unces $52 million net Pakistan Telecommunication Company Limited (PTCL) has signed a fi ber profi t for 2015 leasing agreement with Telenor Sudatel, a leading telecom group PTCL records robust Pakistan. Telenor plans to leverage operator in Sudan and West Africa, is this agreement to upgrade its cellular announcing its end of year fi nancial performance in Q1 2016 backhaul to serve the expected data results with a positive increase in its Pakistan Telecommunication Company growth in the aftermath of 3G/4G net profi ts for the fi scal year 2015. The Limited (PTCL) has announced today its regime in the country. With over 35,000 Group witnessed positive growth across fi nancial results for the quarter ended km of fi ber deployed across Pakistan, all fi nancial indicators achieving US$ 52 March 31, 2016 in its Board of Directors PTCL’s partnership with Telenor Pakistan Million in net profi ts, an increase of 4% meeting held at Islamabad. PTCL
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Group earned Rs. 29.3 billion revenue service wherever they travel.” Syniverse’s R.O 135.5 million compared with R.O during the quarter whereas PTCL’s IPX Network Solution and Diameter 129.4 million in the corresponding revenues were Rs. 18.0 billion. Data Signaling Service interconnect the period of 2015. Cost of Sales increased revenues increased compared to the world’s networks to make LTE possible by 8.4%, while Operating Expenses same period last year. The Company’s anywhere and at any time. A crucial recorded a decrease of 3.5% compared profi tability remained stable despite part of LTE involves the deployment of to the corresponding period. The Group competition. Net profi t of the Company an IPX network, the network backbone net profi t is RO 34.8 Mn compared to stood at Rs. 3.1 billion which was 27% that makes LTE and LTE roaming R.O 34.6 million in 2015, an increase higher compared to Rs. 2.5 billion of possible, and Diameter, the industry- of 0.6%. The net profi t is propelled by same period last year. Likewise, PTCL standard signaling protocol for proper strong domestic performance, which Group’s profi tability also increased routing and delivery of messages. witnessed an impressive revenue signifi cantly. PTCL Group continues Syniverse provides operators with a growth of 5% contributed mainly to invest into integrated solutions, comprehensive solution for global by revenues from Fixed and Mobile delivering exceptional quality on the LTE enablement with a carrier-grade broadband services and submarine back of its profi cient Data services. connection to the company’s all-IP capacity sales. The Company is focused on creating network, which currently serves more more value for its customers and is than 2,300 LTE roaming routes with refi ning its increasingly effi cient and connections that reach more than 320 widespread network. PTCL’s sustained operators in 66 countries. “With GSMA efforts in developing a next generation projecting that LTE connections will ICT infrastructure have translated into exceed 2.5 billion and reach over 60 greater benefi ts for both its customers percent of the world by 2020, mobile and shareholders. service providers can’t afford any 1.2m downloads for mistakes in rolling out LTE,” said Mahesh PCCW mobile video app Prasad, Executive Vice President of PCCW’s over-the-top (OTT) mobile Sales for Europe, Middle East, Africa video platform Viu has had more than 1.2 and India, Syniverse. “As one of the million downloads in Hong Kong since pioneers in global LTE enablement, its launch last October. Viu is a free app we’ll use the expertise we’ve developed available for iOS and Android devices, to help ensure that Warid Telecom offering premium quality content which Syniverse IPX network launches LTE roaming service as is streamed or pre-downloaded for quickly and fl awlessly as possible to provides global LTE reach viewing on smartphones and tablets. provide the highest level of LTE service for Warid Telecom Content includes the latest TV dramas to customers.” Syniverse’s agreement and variety shows from Korea, Japan, Warid Telecom is leveraging the with Warid Telecom continues a string mainland China and Taiwan. Besides Syniverse IPX Network Solution and of LTE accomplishments around the Hong Kong, the Viu platform has been Diameter Signaling Services to globe. Syniverse has enabled global LTE rolled out in Singapore, Malaysia and enable its subscribers to access LTE for more than 130 operators. In 2015, India, and will soon be available in service around the globe. Under the Syniverse announced that it will use its Indonesia, PCCW says. agreement, Warid Telecom will also IPX Network to power LTE for operators provide LTE service to visiting inbound including, Ooredoo, Telin and the Saudi roamers throughout Pakistan. LTE Telecom Company. In 2015, Syniverse roaming has emerged as a critical also announced agreements to deliver mobile service in Pakistan and the rest of VoLTE (Voice over LTE) services for LG the world as the number of subscribers Uplus after enabling the world’s fi rst has steadily been increasing. Pakistan transoceanic VoLTE roaming call earlier had over 26.1 million 3G and LTE that year. subscribers as of February, up from SLA Digital expects just 24.7 million in January, according further growth following to the Pakistan Telecommunications fi rst launch of Carrier Authority. Moreover, the number billing capability on of LTE connections worldwide is expected to reach nearly 3 billion by Google Play 2020, according to the GSMA. “LTE SLA Digital is pleased to announce service has quickly moved from a next- Revenue grows by 4.7% that their fi rst integration with Google generation technology to a mobile- to R.O 135.5 million and PlayTM is now live. An existing global service standard, and our customers mobile operator partner of SLA Digital is are coming to expect LTE speed and net profi t reaches R.O using SLA’s proprietary Digital Services capacity anywhere they go,” said Asma 34.8 million Platform to launch Carrier Billing Khan, Director International Business, Oman Telecommunications Company on Google Play. This new capability Warid Telecom. “Syniverse will help S.A.O.G (Omantel. MSM: OTEL), revealed means that Google Play customers, us take an important step forward in the Company’s preliminary unaudited using this operator’s network, can implementing LTE on a global basis fi nancial results for the 1st Quarter purchase digital content from games and in ensuring we meet customers’ ended on 31st March 2016. Group to apps and music without the need expectations for smooth, consistent LTE revenue recorded a growth of 4.7% to of credit or debit card details. Instead
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Carrier Billing offers these customers their global plans and ways to move Security Solutions at the inaugural a secure and convenient mobile forward with their partners during the Cloud MENA Awards 2016, held payment solution allowing them to event. The Batelco participants will at The Conrad, Dubai on April 11, purchase digital content seamlessly also further reinforce the Company’s 2016. The awards recognized the by simply deducting the transaction global footprint and capabilities, while drive and innovation from the MENA from their prepaid phone credit or meeting exhibitors and potential cloud computing industry, with four charging it to their post-paid phone partners and customers. “We are very categories to acknowledge the host bill. SLA Digital expects further live keen on supporting events that aim to of services from across the cloud operator connections to Google Play develop the telecom industry, and as ecosystem. “Our innovative cloud based for Carrier Billing in the coming year, such we are proud to be sponsoring services including Enterprise Mobility especially with the recent success of ITW 2016,” said Batelco Chief Global Management and Secure Web Hosting this live deployment. Nic Stirk, CEO at Business Officer Adel Al-Daylami. “This are UAE-based, enabling enterprises SLA Digital commented, “SLA Digital’s year we are attending the event with to leverage the flexibility of the cloud partnership with global and local app a stronger global portfolio and will securely while keeping all corporate stores and merchants is key to our work on strengthening it even further data within the UAE,” said Abou success as a leading worldwide Digital during the conference.” Batelco is Moustafa, Vice President Enterprise Services enablement provider. At SLA viewed as a leader in providing global Managed Services and datamena. Digital we are excited to announce data solutions as the Company has an “This award is a solid indication of our our involvement in this integration established presence in all major areas innovation in the enterprise space; we with Google Play. We are providing including the Middle East, Europe, the have uniquely incorporated expertise connectivity to a number of other app US, Asia, and Africa. Batelco’s active in cloud, mobility and security to offer stores like Microsoft and Samsung via Point-of-Presence (PoPs), strategic comprehensive value added services Carrier Billing and this announcement partnerships and Joint Ventures to enterprise customers in the UAE” marks another strategic milestone for (JVs) have enabled them to secure a The telecommunications provider the company as we continue to launch multitude of projects connecting multi- has brought together and seamlessly Carrier Billing across Europe, the Middle national organizations in disparate integrated a range of security East and Asia for both mobile operators locations across the globe. technologies required to securely and merchants alike.” host and offer innovative cloud based services to enterprise and government organization in the UAE. Moreover, du has been developing and refining its security operations centre (SOC) for over a decade to deliver end-to- end monitoring from the UAE, with du awarded for Best predefined rules for identifying and Batelco announces prime Enterprise Mobility and mitigating threats in real time. It gives sponsorship of Interna- Best Cloud Security us a complete view of our customers’ tional Telecoms Week operations and enables us to deliver Solutions at Cloud superior levels of security. (ITW) 2016 du was lauded for the Best Enterprise Batelco, with its increasing focus Mobility Solutions and the Best Cloud on the global business market, has announced it will be the Prime Sponsor of International Telecoms Week (ITW) 2016. The event is scheduled to take place in Chicago at the Hyatt Regency and Swissotel hotels, from May 8 to 11. Batelco, having completed an extensive global expansion project earlier in the year, has focused more of its efforts towards developing its global partnerships with world- renowned providers to offer end- users an excellent service experience. Such prestigious events as ITW offer Batelco a platform to meet its partners from around the world, and discuss ways to strengthen their relationships further. ITW is an annual event, now in its 9th year, which attracts more than 6000 senior executives from carriers, service providers, ISPs, VOIP providers and technology partners from all over the world. Batelco is sponsoring ITW 2016, and a number of its executives will represent the Company to discuss
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Group CEO, Scott Gegenheimer, and chiefs, directors, managers, and Group Chief Commercial Officer, general staff interacted closely with Duncan Howard who have been customers during the week through strong advocates for the Group’s different activities arranged in focus on customer experience conjunction with the local customer management, having overseen a experience teams. Across its markets, Zain Group hosts number of key initiatives in the each quarter approximately 150- Customer Engagement area recently. Commenting on the 200 members of Zain Group’s Forum in Kuwait successful conclusion of the Forum, management participate in Customer Zain Group, a leading mobile telecom Scott Gegenheimer said, “In today’s Day (Voice of the Customer) activities innovator in eight markets across competitive telecom landscape, whereby the company conducts customer experience management is customer-related activities that take as important place in each of its markets, where to the management teams participate in sustainable customer-related activities including success of serving in retail, answering calls in a telco as contact centers, social media chats, technical corporate customer visits, on-site innovation and base station visits with engineers, investment. and so on. At the end of each session, At Zain, we management teams meet to discuss take this their observations and a list of actions area of our are created to determine what needs business very to continue to improve. Zain has also seriously and implemented an internal customer are developing survey feedback platform, which it as one continues to be rolled out across of our key markets, providing deep insights on the Middle East and North Africa, differentiators. As a Group of customers’ key interactions. When announces the successful conclusion operations we benefit from differing customers interact with the company of its Customer Engagement Forum experiences in our respective markets, through a visit to a branch or when 2016, a three-day event held in and it is important to be able to calling customer service, they soon Kuwait April 4-6, which drew senior gather regularly and share knowledge thereafter receive a SMS based survey personnel from across the Group and insights in settings such as the that addresses questions related to operations. Customer experience Customer Engagement Forum.” satisfaction with the interaction, effort management remains one of Zain Zain is set to continue to develop required to handle their request, Group’s keys strategic pillars, with its laser-like focus on simplicity and agent knowledge to deal with their the company investing heavily operational efficiency, with customer interaction and more. These real- in the area in order to maintain experience remaining an important time insights have enabled Zain the highest quality of service factor in driving commercial success. country operations to continue to for its customers. The Customer Retaining customers is vital and shape their plans to drive the right Engagement Forum focused on Zain strives to deliver the best results ultimately aimed at reducing areas of customer experience experience in order to achieve customer effort and increasing management and topics of discussion this. Elements within Zain Group’s both customer satisfaction and net included Customer Centricity and customer experience management promoter score. The real-time tool Complaint Management; Channel program include the quality of its has now launched in five markets, Economics; Change and Knowledge network, delivery of value-added with the remaining markets due to go Management; Social Care as well as services, as well as the improvement live this year. Additionally, members a dedicated session and focus on of all customer touchpoints. In an of the Customer Care and Customer Zain’s brand and digital online future example of Zain Group’s heightened Experience community across Zain strategic direction. Key presentations investment in customer experience Group participated in the Global were made to the Zain management management-related activities, CEM accreditation training as part by leading global and regional last year the Group and its country of bi-annual forums undertaken by technology providers specialized in operations introduced a series of the company. The interactive training the customer management arena analytical tools and activities aimed was aimed at continuing to develop showcasing the latest solutions at heightening customer satisfaction capabilities and skills related to available, namely Cybermak, Matrixx, levels, the results of which are customer experience and required Qelp, ResponseTek and Sestek. In proving positive. Zain’s holding of participants to submit an examination addition, innovative end-to-end regular Customer Week exercises assignment in order to be accredited. mobility digital services provider forms part of the company’s ongoing Many of Zain’s community members FOO Solutions, the entity that Zain commitment to delivering the are now certified in Global CEM as a recently acquired a strategic stake best-in-class customer experience, result. in, showcased how mobile apps and was conducted across all Zain can be at the center of customer Group markets simultaneously. services. The Forum was led by Zain Zain personnel, including business
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SAMENA TRENDS _ APRIL 2016
of managed services industry to ensure full competency of the network and improve the operational standards which in its turn leads to upgrade the service standards and this guarantees for (Mobily) to be always at the forefront Mobily signs NEC for of operators in the field of data within Batelco introduces cloud three years network the Kingdom of Saudi Arabia. productivity solution managed services Batelco is enhancing its Cloud agreement Solutions portfolio by introducing a Cloud Productivity Solution for the SME Etihad Etisalat (Mobily) and Bayanat segment. The productivity solution Al Oula (Mobily) signed an agreement has been developed to help small and with NEC the Japanese company, for medium enterprises enhance their provision of network managed services productivity and efficiency by providing for the upcoming three years. The du announces its them with a complete set of cloud- agreement represents an expansion participation as principal based applications to run and automate in the scope of work between the two their operations. These sophisticated parties. Accordingly, NEC will provide sponsor at the 6th applications were previously restricted the network managed services for annual Cloud MENA to large enterprises due to the high (Microwave-PTP) networks as business 2016 cost and skills required to maintain solutions reflected on the control du, the principal sponsor at the 6th them. Batelco’s Cloud Productivity and management of daily operations, annual Cloud MENA, will showcase its Solution for SME’s is an all-in-one corrective actions, Proactive and state-of-the-art secured cloud platform product that is easily accessible from preventive maintenance, and improving during the most comprehensive cloud anywhere at any time, with prices in line the operating system, as well as keeping computing event in the region, held with the budget of an SME business. pace with the latest developments of at Conrad Hotel Dubai from April 11 The solution features a number of the system. Mobily aims to enhance – 12, 2016. “Organizations throughout productivity and efficiency enhancing the competency of its network in the the UAE are fast moving past the early- tools such as: Customer Relationship Kingdom and make the utmost of this adopter stage when it comes to the Management; Accounting & Inventory; agreement to provide the best services cloud, attracted by the operational and Resource Management solutions, to its customers in the business sector. cost benefits it has over traditional IT plus more. Additionally, Batelco has Mobily owns reliable infrastructure that systems. Through our participation at a team of technical experts offering enhances its ability to provide the best Cloud MENA, we are showcasing our consultation services for business services in this sector, and is always combination of the finest talent, best customers, and experts are available seeking to maintain its excellence in the of breed technologies and innovation to customize innovative solutions for provision of high quality services that to deliver secure and scalable cloud each business. As the innovation driver exceed customers’ expectations, meet based services in the UAE,” said Abou in Bahrain, Batelco was the first in the their needs and enrich their experience Moustafa, Vice President - Enterprise Kingdom to launch a series of Cloud- through operational efficiency and Managed Services & datamena. Cloud based services to empower businesses high quality of provided services, in MENA 2016 will showcase the growing to digitize their processes and improve addition to the achieved progress momentum behind the cloud and cloud- their operational efficiencies. Batelco’s in major performance indicators of enabled services including security, cloud solutions serve businesses of all networks and services level agreements mobility and unified communications sizes across all industries by delivering for its networks according to global in the UAE. du’s managed services team a range of solutions such as Web industry criteria. Engineer Maziad Al will be available at the du Lounge to Development, E-Commerce, Business Harbi, Chief Technology Officer at discuss the innovative technologies Mobily, confirmed that the company that ensure its secured cloud based works to hold different partnerships platform for UAE government and with global highly qualified companies enterprise customers, the speed of that enables the company to provide deployment and the way in which it the most advanced services to its helps reduce IT capex obligations. customers, and to establish the du enables companies to expand principles of exchanging experience their infrastructure capacity without with international companies. Engineer undertaking costly construction or Kamal Nasr Aldeen, Vice President, facility leasing, while benefiting from Sales and Business Development in better connectivity, improved security, NEC company Saudi Arabia Branch redundant and continuous power, said that “ under the current huge room for growth, bursting capability Continuity and Productivity Solutions. development in the field of Data and access to a host of cloud-based Batelco Chief Marketing Officer Mike Transfer and the increasing competition solutions that lower the cost of Stanford said, “Our customers look for to provide the best services for managing and delivering IT. cloud solutions that are flexible and customers, which requires developing scalable that will enable them to better
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SAMENA TRENDS _ APRIL 2016 manage their operational costs. We are Leaders’ Summit 2016 to facilitate and Turkcell unique among its international committed to meet their requirements drive cross-stakeholder participation peers. Turkcell doubles 4.5G data quotas, by providing businesses with a full range and open communication by bringing declares customer commitments Prior of cloud solutions.” “We are committed together business decision-makers, to the launch, Turkcell announced its to enabling our customers to accelerate investors, policy and regulatory customer commitments as Turkey’s their digital transformation while authorities, and global institution- mobile users start enjoying a new era reducing their costs and enhancing level leadership, in order to open new of communication. According to the their operations and we believe that avenues of progressive thinking and 10-point declaration, which includes, the Cloud Productivity solutions will future planning for the benefi t of both but is not limited to, 4.5G services: support our efforts,” Mr. Stanford the telecoms and ICT industry and the 1. Turkcell commits to doubling added. ultimate stakeholders – the citizens, the its 4.5G customers’ mobile data consumers. Mr. Bocar A. BA, CEO of the quotas for the same price during SAMENA Telecommunications Council a 3-month period. With the new said, “This year’s Leaders’ Summit 2016 4.5G tariffs, it offers signifi cantly will delve into urgent areas of cross- higher data quotas for a fractional stakeholder discussion, and efforts will increase in rates. be exerted to advance signifi cant post- 2. Customers will not pay penalties gathering co-operative undertakings, when switching between different bearing long-term positive impact Orange to expand in 4.5G tariffs. for the telecom industry of the Europe, Middle East, SAMENA region and beyond. We aim 3. 4.5G customers who travel outside Africa to draw renewed focus on the need Turkey will continue to enjoy their Orange plans to continue to look for to accelerate the development of the existing packages when roaming, opportunities to consolidate and enter Digital Economy and be united toward preventing roaming billing shocks. new markets in Europe, as well as to building a better connected world.” 4. Turkcell’s smart billing practices grow in Africa and the Middle East. Stakeholder participants of the Leaders’ and advisors minimize billing Mr. Stephane Richard told Bloomberg Summit will debate about re-defi ning shocks in general: When there is an that consolidation “would have made priorities in Policy, Regulations and extraordinary spike in the bill, the things easier” but that Orange would Infrastructure Development, and will customer receives a notifi cation not now change its strategy in its address necessities of the evolving and is offered a more benefi cial domestic market. “We have a clear market and relevant legislation & package if applicable. strategy through 2020 and French regulation, as well as defi ne viable 5. When connecting homes and consolidation was never a prerequisite areas of investment and stakeholder offi ces with fi xed internet, Turkcell for it,” Bloomberg quoted Richard partnership to help reduce fi nancial makes sure its customers do not burdens. For the third consecutive year, suffer from a lack of internet the leadership summit is being hosted connection – it supports them Announcement of by Huawei. Participation in Telecom with mobile internet as they wait Telecom Leaders’ Leaders’ Summit 2016 is by invitation for the completion of technical Summit 2016; Ten-year only. Invitations are being extended procedures. to chairmen and chief executives of 6. When customers experience Anniversary Celebration network operators, heads of regulatory a malfunctioning of their to corroborate SAMENA authorities, and heads of ICT policy smartphones, Turkcell provides bodies across the SAMENA region as Telecommunications substitute devices. well select markets of Asia and Europe. Council’s stance on digital 7. Turkcell Financial Services economic development company provides fl exible and better connected payment opportunities for world customers to access the devices of their choosing. SAMENA Telecommunications Council 8. Turkcell maintains an open access has announced that it will hold its attitude in its products and Telecom Leaders’ Summit 2016, an Turkcell offi cially services, including its OTT services, annual top-tier stakeholders’ meeting and serves not only its own mobile being organized since 2010, this year launches 4.5G in Turkey subscribers, but also the customers on May 19th in Dubai, UAE. On this TURKCELL offi cially launched 4.5G in of all other operators. special occasion, which will bring Turkey as LTE-A services on its network together leaders and stakeholders from went live at midnight on March 31. 9. Turkcell serves its disabled and the Public and the Private sectors, and Turkcell customers nationwide began elderly customers at their homes which will also mark SAMENA Council’ to benefi t from 4.5G services as of 12.00 when necessary. tenth year anniversary, SAMENA am. With its 4.5G launch, Turkcell will 10. In extraordinary circumstances, Council has confi rmed the presence offer the fastest LTE speeds that are Turkcell suspends the fi nancial of leading telecom CEOs across the supported on commercial terminals obligations of its customers and EMEA region, and various industry globally. Combining this speed with notifi es them accordingly. fi gures, globally-known to be actively the geographical scope of its coverage Turkcell had announced the readiness pursuing digital development and – spreading over 81 city centers in a of its network for 4.5G services at a press societal transformation. It is the primary country with a territory of 783.6 thousand conference held simultaneously in 5 objective of SAMENA Council’s Telecom km² (302,5 thousand sq. miles)– makes
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SAMENA TRENDS _ APRIL 2016 cities on March 22nd. Download speeds interfaces to real-time subscriber connections. Huawei describes the five of up to 390 Mbps were achieved at data, had served over 310 operators initiatives as Big Video – Everywhere, the speed tests carried out during that in more than 136 countries. The white Big IT – Enabling, Big Operation – Agile, press conference. paper reported that the advantage Big Architecture – Elastic, and Big Pipe of Huawei SDM solution lies in how – Ubiquitous. Huawei also showcased it helps operators improve operation its Safe City Solution that enables cities efficiency, accelerate service innovation to build multidimensional, intelligent and explore the potential value of security systems featuring awareness, subscriber data. These operators can visualization, and collaboration, in turn manage the growing subscriber helping governments improve crisis data, simplify the network, and reduce prevention, reduce emergency response Huawei leads global operation costs. “Collaborating with time and reaction, as well as driving ICT innovation through vendors on research programs and down crime rate. Huawei continues to patents and integrated acquiring patents are just some of the support regional operators through R&D activities that enable us to better cutting edge solutions as they push partnerships integrate ICT technologies into various to rollout advanced wireless services The World Intellectual Property industries,” said Zou Zhilei[SM1] , on 4.5G while paving the way for next- Organization (WIPO) in Geneva President of Carrier Business Group, generation 5G capability in near the announced that Huawei — a leading Huawei. “As a key enabler in the ICT future. Building on that, Huawei’s IoT global ICT solutions provider — topped industry, Huawei is committed to helping and smart cities solutions provide the the list of international patent filers in the telecom industry and other verticals platform for further regional innovation 2015 for the second year in a row. In digitize their infrastructure, operational around large-scale national initiatives. systems and business Huawei’s regional innovation center in models with state- Dubai and joint innovation centers with of-the-art innovative its strategic partners in the Gulf enable technology,” Zou Huawei to deliver this capability as while added. Huawei was supporting local communities through also recognized knowledge transfer and by nurturing by several leading local talents, an initiative that Huawei marketing and brand implements across all regional markets authorities including and is a key component of its global UK consulting firm ‘Seeds for the Future’ CSR program. Brand Finance in its “Global Top 100 Valuable Brands” list, Interbrand’s “Best Global Brands” report for 2014 and 2015, as well as WPP’s BrandZ in its “Global Top 100 STC inaugurates the Most Valuable Brands” landing of the Fifth Ma- total, Huawei applied for 3,898 patents, for 2015. Huawei has been showcasing rine Cable (SeaMeWe5) 456 more than the previous year, its leadership in innovation globally at beating out other leading technology key events around the world including The Saudi Telecommunication Company players. WIPO tracks applications filed CeBIT 2016 this month, where Huawei (STC) inaugurated the landing of the under the Patent Cooperation Treaty demonstrated leading solutions Fifth Marine Cable (Sea Me We 5) (PCT), an agreement that gives a filer while highlighting its capability of here under the auspices of Minister patent protection in 148 countries empowering customers to lead in the of Communication and Information with a single application. International new ICT era. CeBIT 2016 also saw the Technology (MCIT) Dr. Mohammed patent applications filed under the PCT launch of the industry’s first Internet of Al-Suwaiyel. Attending the ceremony grew by 1.7% to 218,000 in 2015, a Things (IoT) lighting solution, Huawei were Governor of Communication and new annual record. “Global intellectual Connected City Lighting Solution, Information Technology Commission property applications, like those for with multi-level intelligent control. Dr. Abdulaziz AlRuwais, President of patents, trademarks and industrial At Mobile World Conference 2016 in the Royal Commission in Yanbu Dr. Alaa designs, provide a good indication of the February, Huawei launched its flagship Nassif, Governor of Yanbu Mousaed incidence and location of innovation,” MateBook 2 in 1 device delivering Al-Salim, CEO of Alcatel Submarine explained WIPO Director General high-end productivity that seamlessly Networks Mr. Frank Maccary, Francis Gurry. Additional to WIPO’s integrates mobility, high efficiency, Chairman of STC Board of Directors ranking, this month’s Subscriber Data work and entertainment. Huawei also Dr. Abdullah Alabdulqader, and STC Management (SDM) market survey shared its 5 ‘Big Initiatives’ that will CEO Dr. Khaled Biyari. The 20,000-km published by Frost & Sullivan placed drive growth for regional telecom long cable represents the most up- Huawei at the top in the SDM market providers, foreseeing a potential $100 to-date technology in marine cable for 2015, with a global share of 30%. By billion video streaming market, a $1 systems. Tethered from Singapore year’s end, the Huawei SDM solution, trillion enterprise cloud market, and to France, 19 international operators which provides a platform with open ten-fold growth in the number of IoT invested in the cable, which makes 20 pit stops in 18 countries. Celebrating
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SAMENA TRENDS _ APRIL 2016 the occasion before dignitaries from location-based services and more. In be in use later this year. The Turkish the telecommunications industry addition, the entry of high-speed LTE state insisted on using the 4.5G badge and Yanbu governorate, Dr. Biyari devices has led to an increased demand when it allocated LTE spectrum last highlighted the role of STC in the for high-end data plan subscriptions. year though, doubtless in part due to marine component of the international SMBs are increasingly looking for the president Tayyip Erdogan’s call a year telecommunications grid. He recalled convenience of having data benefits ago for the country to skip the fourth that STC first introduced Internet built into their Smartphone plan. generation of mobile technology and service to Saudi Arabia in 1998 when the Starting with as low as Dhs100 per move straight from 3G to 5G. Turkcell’s bandwidth was at mere 4 Mbps, while month, and with data allowance up to 4.5G announcement is pitched firmly at today it has reached almost 4 Tbps (i.e. 12GB, Etisalat’s flexible New Business the smartphone market. It has set out million-fold). Dr. Homoud Al-Kussayer, Ultimate plan are replete with calling a 10-point plan covering its service to STC VP for Wholesale explained how minutes, including flexi for national and consumers, including offering larger Saudi Arabia played a pivotal role as a international calling. data bundles for a promotional period, telecommunications hub between the allowing customers to use their existing Far East and Western Europe. He said packages while roaming, and providing Yanbu was selected as a landing site flexible payment plans for devices. for ease of connections to both Riyadh The announcement did not include and Jeddah, as well as the fact that the full pricing details, but Turkcell said it seabed off its shore is very favourable will provide “significantly higher data for submerging the marine cable. MCIT quotas for a fractional increase in rates.” Minister Al-Suwaiyel then gave the Turkcell launches 4G captain of the ship laying the marine services cable permission to proceed with the The telco, which won LTE spectrum landing of the cable from the vessel to in multiple bands in August, said it is shore. Once landing in all international offering high-speed mobile services sites is complete, the marine cable will on its LTE-Advanced infrastructure in go into operation; current expected date 81 city centers across Turkey. Like a is set for December 2016. The cable will number of other telcos, Turkcell has Huawei reports 37% rise boost bandwidth to 24 Tbps in order to in full-year revenue meet the ever-increasing demand for Huawei reported a 37% rise in full- broadband and Internet services along year revenue, driven by the ongoing with their applications. In addition to deployment of 4G networks and strong investing in marine cable systems, this growth at its devices business. Revenue jump in demand for broadband has in the 12 months to 31 December 2015 prompted STC to invest heavily in the came in at 395 billion yuan (€53.63 LTE/4G and LTE/4G advanced networks billion), up from CNY288.2 billion in and fiber optic networks for business 2014. Huawei’s networks business and residential use. accounted for the lion’s share, CNY232.3 billion – up 21% year-on-year – but its branded its LTE-A service as 4.5G, devices business is catching up fast. The but there remains some debate in the division, which produces smartphones, industry as to what actually constitutes wearables and so on, saw full-year the interim step between current 4G revenue surge to CNY129.1 billion, technologies and the as-yet undefined compared to CNY75.1 billion in the Etisalat introduces new 5G standard. In tests carried out last previous year. Smartphone shipments month, Turkcell’s 4.5G network achieved surged to 108 million, up from 75 million. “Business Ultimate” mo- a download speed of 390 Mbps in the Meanwhile, Huawei’s enterprise unit bile plan city of Samsun, and speeds of around generated revenue of CNY27.6 billion, Etisalat has announced the launch the 350 Mbps mark in four other cities. up 44% year-on-year, driven by strong of its New Business Ultimate mobile Upload speeds came in at between growth in the public safety, finance, plan, offering small and medium 40 Mbps and 50 Mbps. Equipment transportation and energy sectors. “In business customers (SMBs) wider data makers have their sights set on higher part, Huawei owes its long-term growth allowances and options to meet their speeds for 4.5G technology though. For to the sheer size of the ICT market, connectivity needs. The new monthly Huawei, 4.5G will allow for speeds of which is the driving force of digital plan also offer the latest Smartphones up to 1 Gbps and latency of less than economies around the world. However, and devices as an add-on at zero 10 milliseconds. The technology will our growth is also a direct result of upfront charge. Digitization and digital be suited particularly to an increasing strategic focus and heavy investment adoption is on the rise. The usage of number of connected devices, rather in our core businesses,” said Huawei’s mobile data in the UAE’s business than being geared towards the rotating CEO Guo Ping, in a statement. world is increasing at a fast pace as smartphone market, the vendor says. Huawei’s 2015 operating profit surged more and more business professionals Meanwhile, rival ZTE has shunned the to CNY45.79 billion from CNY34.21 and entrepreneurs try to get the most term 4.5G, preferring instead to roll out billion in 2014, while net profit rose out of it through sharing of data-heavy what it terms pre-5G offerings. One of 33% year-on-year to CNY36.9 billion. info in real time such as business emails, the first of these to market looks set Cash flow grew to CNY49.32 billion video conferencing, corporate apps, to be massive MIMO, which it says will from CNY41.76 billion. “We wrapped up 2015 in a robust financial position,
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SAMENA TRENDS _ APRIL 2016 with stable cash fl ow from operating Huawei is providing the network – was announced during a recent activities, increased cash availability, equipment for the 100G service. The signing ceremony, which was attended and effective risk control,” said Huawei’s Chinese vendor was one of the fi rst by the CEO of Orange Jordan, Jérôme chief fi nancial offi cer Sabrina Meng. “In six worldwide to launch 100G CE 2.0 Hénique; the Chief Enterprise Offi cer 2016, we will continue to focus on our certifi ed equipment in 2015. “The MEF of Orange Jordan, Sami Smeirat; and pipe strategy, staying customer-centric congratulates PCCW Global and Huawei the Director General of the Jordan in all we do.” on their collaborative, pioneering work Post Company, Khaled Lahha. Per the to drive industry innovation with 100G agreement, Orange Jordan will also CE 2.0 services certifi cation,” MEF provide a set of integrated business president Nan Chen said. “We look solutions to the Jordan Post, including forward to other service providers virtual network, multi-protocol label following suit in order to lay a highly switching services, and data transfer scalable CE 2.0 services foundation service at both the headquarters and that ultimately will support dynamic, the computerized post offi ces of the France Télévisions inks cloud-centric services orchestrated Jordan Post Compan. Speaking on the Eutelsat capacity deal over automated and interconnected occasion, Orange Jordan CEO Jérôme networks.” Chen said the previous Hénique stressed on the importance of After announcing a number of deals upper limit for MEF CE 2.0 services cooperation between Orange Jordan in the MENA region, satellite operator certifi cation was 10G. PCCW Global and its enterprise partners, including Eutelsat has now announced a win much CEO User Marc Halbfi nger added that the Jordan Post Company. Hénique closer to home with France Télévisions. by achieving the certifi cation “we have pointed out that this agreement falls in The French public broadcaster will be demonstrated our ability to meet the line with the company’s new corporate taking capacity on the EUTELSAT 5 West high performance, high reliability, strategy, Essentials 2020, which focuses A satellite allowing it to upgrade all of and scalability standards required by on connecting people to all that is France 3’s regional channels to HD from our customers’ demanding, business- essential to them, including for its April 5. The 24 regional channels will critical applications.” enterprise customers. For his part, the be available for the two million homes Director General of the Jordan Post receiving Fransat, Eutelsat’s free-to- Company, Khaled Lahham, stressed that view TV platform for French homes. The enhancing this partnership with Orange move is part of the complete switch of Jordan reaffi rms the confi dence that France’s DTT channels to MPEG4-HD the private sector has in the Jordan Post in the night of April 4 to 5. Fransat Company. He pointed out that, as part viewers will be the fi rst satellite viewers of the company’s mid- and long-term to experience the benefi ts of enhanced Orange Jordan signs plans, Jordan Post seeks to transform sound and video quality of France 3’s its post offi ces into “Community Service full roster of regional channels. The strategic partnership Centers” that provides traditional postal change in standard is a major challenge with The Jordan Post services as well as a package of updated for France Télévisions, requiring Company and additional services to keep pace uninterrupted broadcasting of a line- of what is happening in the world, in up comprising fi ve national channels Orange Jordan recently signed addition to continuing its cooperation — namely France 2, France 3, France a strategic service cooperation with the private sector. The Chief 4, France 5, France Ô — and the 24 agreement with the Jordan Post, regional channels of France 3. Eutelsat adds that video, audio, data used for audio description and connected TV services will all benefi t from improved quality optimized for TV viewers.
PCCW Global fi rst to achieve MEF 100G CE 2.0 through which the Jordan Post will Enterprise Offi cer of Orange Jordan, cert provide telecommunications services Sami Smeirat, expressed his pride in the PCCW Global has become the fi rst to the masses via its post offi ces extension of the partnership between operator to achieve MEF 100G carrier spread around the Kingdom, in the two entities, through which Orange Ethernet 2.0 certifi cation for E-Line order to serve a broader segment of Jordan offers the Jordan Post Company and E-Access services. PCCW Global citizens. This partnership, which aims a comprehensive bundle of services, passed a series of tests covering a full to continue providing a wide range of including mobile lines, landlines, data set of 100G service attributes, including telecommunications services to the transfer services, a recently expanded performance and bandwidth profi les. public – including telegram services communication network, and cloud The MEF’s offi cial test lab Iometrix and Orange lines at the post offi ces computing service. conducted the compliance testing.
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SAMENA TRENDS _ APRIL 2016
REGIONAL NEWS
Kingdom spends SR150 provide solutions to many of the business through simulation and modeling, data billion on ICT in 2015 analysis in vital areas such as defense and The Kingdom has spent SR120 billion for security, climate and weather, oil and gas, development of telecommunications and and vital information. The SAHPC forum information technology sector during the is a premier regional event at which HPC year 2015, King Abdulaziz City for Science industry leaders, application developers, and Technology (KACST) President Prince scientific and engineering users, Dr. Turki bin Saud bin Mohammed Al-Saud educators, and economic and institutional has said. The prince was inaugurating planners network on the opportunities the Saudi Arabian High Performance and challenges of supercomputing. The Computing Conference (SAHPC) and SAHPC Forum creates national “critical REGIONAL Exhibition at the KACST headquarters mass” that enfolds local HPC communities on Tuesday. The event sponsored by the in Saudi Arabia, facilitating exchanges UPDATES KACST, was held in cooperation with the and fostering new collaborations in Saudi Aramco, number of international business, research, and education. It also universities and specialized companies helps develop a national identity for the that are related to Information and Kingdom as an emerging international Technology. The president pointed out power in supercomputing. that the Kingdom is the largest investor in ICT in the region and it is one of the ten in spending in the relevant sector in the Mobilink accused of PKR globe. The Kingdom has one of the 500 300 mln tax evasion - report fastest computers in the world, including Pakistan’s Federal Board of Revenue (FBR) the high-performance computer (hump), claims Mobilink has deliberately attempted which the KACST has achieved. It was also to evade duty/taxes worth PKR 300 million, ranked the second place among the most reports the Daily Times, citing unnamed energy-efficient computers in November sources with knowledge of the matter. 2012. The prince said the world is going According to the same sources, “Mobilink through a revolution to form a huge has imported ‘Lead Acid VRLA Batteries data base that will rapidly increase in the for Telephone Exchanges’ and tried to coming years. He said the purpose of evade duties/taxes by misdeclaring these the conference is to identify specialists multi-purpose batteries under incorrect government agencies, universities and Pakistan Custom Tariff (PCT) heading”. The research centers and the private sector in the sources claim that, during the scrutiny of Kingdom of the tools available in the field import data of ‘Lead Acid VRLA Batteries of computing, high-performance and can for Telephone Exchanges’ falling under
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SAMENA TRENDS _ APRIL 2016
PCT heading 8507.2010, chargeable to system is able to deliver seamless Custom Duty (CD) at 10%, it has been connectivity between Europe, the Bay of Bengal Gateway observed by the Customs Directorate Middle East, and Asia while offering of Post Clearance Audit (PCA) that operators an alternative access point launched certain mobile communication in Europe. Oman’s leading telecom The Bay of Bengal Gateway (BBG) companies have imported multi- service provider’s carrier-neutral consortium has announced the launch purpose batteries, evidently not for landing facilities and new data centers of the 8,100km cable system linking use in telephone exchanges under in Marseille give carriers competitive Southeast Asia with the Middle East. The this PCT heading, while such batteries access to and from Europe via the AAE- 100Gbps BBG cable connects Malaysia are correctly classifiable under PCT 1 cable system. Network operators with Oman, with landing points in India, heading 8507.2090 chargeable arriving in Europe or seeking to access Sri Lanka and the UAE. Consortium to customs duty at 20 percent. to undersea cable infrastructure are members include India’s Reliance Jio Thus, by misdeclaring these multi- often faced with expensive backhaul Infocomm, Malaysia’s Dialog Axiata, purpose batteries under PCT heading and interconnect costs due to Telekom Malaysia, Vodafone, the UAE’s 8507.2010, Mobilink has made a monopolistic pricing. Operators in Etisalat and Omantel. Hong Kong- deliberate and willful attempt to evade Europe that need to connect their based PCCW Global has meanwhile duty/taxes, the PCA said. The FBR has networks to a landing station usually announced it has signed an agreement submitted a contravention report on have no alternative but to pay, the with operators in MEA to build a subsea the importer, stating that Mobilink is statement said. Sohail Qadir, VP of the cable system connecting Africa with the required to pay PKR 300 million short wholesale unit at Omantel, said, “As the Middle East and South Central Asia. paid duty/taxes within given period. first GCC operator to land a submarine Under the proposed agreement, PCCW Mobilink has been invited to provide cable in Europe, we are thrilled with the will form a consortium with South self-explanatory written clarification successful execution of this project, Africa-based MTN, Saudi Telecom along with supporting documents. especially given the landing of the Company, Telecom Egypt and Telkom AAE-1 cable was concluded ahead of South Africa to build the new Africa-1 schedule.” cable. Africa-1 will have an at least Omantel becomes 1st three fiber pair core that spans more GCC operator to land an Pakistan to auction 850 than 12,000km across Africa’s east undersea cable in Europe coast, with up to an additional 5,000km for branches. The operators plan to Omantel announced the successful MHz spectrum ahead of sign a construction and maintenance landing of the Asia Africa Europe-1 1.8GHz band agreement for the cable by June this (AAE-1) cable system in the French city Pakistan’s Finance Minister approved year, and aim to have the cable ready of Marseille. Spanning approximately a proposal to auction off the 850MHz for service by the third quarter of 25,000km, the AAE-1 submarine cable band before holding an auction for the 2017. Finally, Huawei Marine Networks is one of the first unique cable systems 1.8GHz spectrum that was unsold in the revealed it has achieved a record to connect Hong Kong to Singapore, 4G sale in 2014. Finance Minister Ishaq transmission distance of up to 627km Africa and Europe, all via Oman. The Dar, who chaired a high-level telecoms with a 100G ultra-long unrepreatered cable will provide an alternative and meeting, agreed that an appropriate system during a laboratory test in low latency short route between amount of spectrum needs to be made Beijing. The cable configuration, which Hong Kong, Singapore and Europe available to the telecoms sector, the uses Huawei 100G technology, could while covering close to 50 per cent of Pakistan Observer reported. No date potentially help cut down on the cost of the world’s population, an Omantel or quantity was set for the proposed subsea cable networks by reducing the statement said. Commenting on the auction. The meeting reviewed need to install and maintain repeatered achievement, Omantel CEO Talal the spectrum demand outlook, systems, the company said. Said al Mamari said, “The decision to while also considering the Pakistan join hands with Marseille to become Telecommunication Authority’s (PTA) the landing site for AAE-1 was an market assessment report prepared Demand for Industry easy one as the city is a critical by an international consultant. The Status for Telecom In- telecommunications connectivity consultant hired by the telecoms hub, a key trade port and an entry regulator reported in December that creases way into Europe.” “This achievement the market is not ready for another The Overseas Investors Chamber of would not have been possible without auction. It found mobile operators Commerce and Industry (OICCI) has the support of the city of Marseille. To are struggling with low margins and proposed Federal Board of Revenue land a cable of this magnitude requires aren’t interested in investing in the (FBR) Government of Pakistan to give permits and regulatory approvals from spectrum within the next 12 months. industrial status to the telecom sector many areas within the government. The operators also complained about with abolition of SIM taxes, sales tax Our experience of Marseille is a city high taxes, low return on investments on import of handsets and IMEI tax, that is professional, business oriented and weak economic growth. The reduction in advance tax rate to 5% and one that welcomes foreign finance ministry pushed PTA to hold and FED rate be aligned with other investment,” Mamari added. The AAE- the auctions twice last year, but both services @ 16% in budget (2016-17). 1 landing was made possible through times the sale was pushed back after OICCI has submitted several proposals the creation of Omantel France, an all five operators said they would not to FBR regarding telecom sector, a Omantel subsidiary company tasked participate. copy of which is available here with this with ensuring that the AAE-1 cable correspondent. It states:
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SAMENA TRENDS _ APRIL 2016
Status of Industrial Undertaking Recommendation duties on network equipment have to Telecom Industry: The imposition of multiple taxes on been increased from 5% to 15-20% [Income tax Ordinance, 2001: SIMS and handsets directly restrict and exemption of imported equipment Section 148]: Telecom companies the investment in telecom sector. from sales tax has been removed. The have not been declared industrial Especially after auction of 3G license increase in custom duty has affected undertaking under income tax law. heavy taxation is restricting the the telecom industry negatively in term The tax paid at the time of import investment in infrastructure. Therefore of slow investment. of telecom equipment @ 5.5% is it is recommended that taxes like SIM considered as final tax rendering taxes, sales tax on import of handsets Recommendation it un-adjustable against final and IMEI tax should be abolished. SRO 575 should be reinforced and tax liability. This issue has arisen exemptions of reduced Custom duty because telecom companies have Rationale or Benefit zero sales tax and should be provided. not been declared as industrial The Ministry of Finance has already seen undertaking as per income tax some of the benefits of rebalancing Rationale or benefit law. The telecom companies are mobile specific taxes. The SIM activation Restoring the previous SRO 575 would industrial undertaking under tax was reduced from PKR 2,000 to PKR make investment in essential network telecom policy but not under 1,000 in 2004, then again to PKR 500 in rollout and quality improvements more income tax law. Federal Finance 2005 and to PKR 250 in 2009. Finally it affordable. Minister has verbally agreed was abolished in 2005. During the same with all the mobile operators period, mobile penetration increased As sales tax is charged in VAT mode regarding grant of industry status notably since 2004, together with which is recoverable as input tax in his various meetings during 3G government tax revenues from mobile. adjustment so restoring the SRO 575 auction. Ministry of IT and Ministry By reducing taxes on mobile sector, will not reduce sales tax revenue of of Industries both have granted the MoF cannot only increase digital Govt. in fact it will reduce administrative the status of industry to mobile and financial inclusion and economic complexity for the government and operators still FBR has not granted growth, hut also recover higher tax operators. the status of industrial undertaking revenue through more efficient and to Cellular Mobile operators. broad-based taxation in coming years MEA mobile market is Customer taxes: Recommendation highly data-driven Telecom companies should be Telecom industry is one of the highest “The mobile markets in Middle East declared as industrial as they are taxed industries in Pakistan and is and Africa (MEA) are highly connected, not commercial importers and 4th worldwide. In Pakistan taxes on young, and extremely data-driven,” telecom equipment imported is telecom industry account for over 30% used in the network to provide of the total cost of mobile ownership, telecom services rather than for significantly above the regional further sale. Therefore tax paid average. This additional cost is a barrier under section 148 should be to affordability of mobile services and considered as advance income tax limiting access to the mobile services rather than final tax. for many Pakistani.
Rationale or benefit Following taxes are currently applied Fixed tax on import of telecom on telecom subscribers: equipment increases the cost of 18.5% FED on telecom customers network, an additional barrier 14% advance tax on consumption of to mobile network coverage in telecom services Pakistan. The roll out of 3G network is still very much at the early stages Recommendation and it is the key to development FED rate should be aligned with other said Mikkel Vinter, CEO and founder of of the market that operators are services @ 16% Virgin Mobile Middle East and Africa able to sustain the necessary Advance tax rate should be reduced (VMMEA). He said, VMMEA enjoys a big investment. to 5% share of 2.5 million customers now use its mobile telecom services, bolstering Sales Tax Act, 1990: Ninth Rationale or benefit its position as the fastest growing Schedule By reducing taxes on mobile sector, in the region. He said, “It is fantastic There are multiple taxes on SIMs the Pakistani government cannot only that millions agree we are making and handsets in the form of sales increase digital and financial inclusion mobile better with digitally-driven tax on import of local supply, sales and economic growth, but also recover and customer-centered offerings.” He tax on supply of SIMs and IMEI higher tax revenue through more further mentioned, “Market dynamics tax. In Finance Act, 2014 FBR has efficient and broad-based taxation. in this region are moving so quickly. imposed sales tax @ PKR 250 per In the Gulf region, in particular, there SIM card on supply of SIM cards. Eliminate Custom Duties and Sales is an increasing focus to the customer Also FBR has imposed sales tax on Tax on Network Equipment SRO 575: experience both via traditional and import of local supply and IMEI tax SRO 575 has been rescinded in finance digital channels.” “The swift and on handsets ranging from PKR 300- act 2014-15 consequently customs sustained adoption of VMMEA services 1000 per mobile.
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SAMENA TRENDS _ APRIL 2016 signals that as a Group we are well “They [technicians] have to guarantee before Pakistan Telecommunication positioned for this change.” Within enough broadband with huge capacity Authority (PTA). In this regard, PTA has the next five years VMMEA intends to in order to benefit from the fiber optics notified in newspapers and invited all strengthen its market-leading position service. It all depends on the capacity the telecom consumers, stakeholders, across the region, with an ambition to of the Internet cables. If the cables interested or affected persons and serve more than 10 million subscribers are large then the subscriber will the general public to submit their within 5 years. It may be mentioned enjoy faster Internet in the future,” he written comments regarding the that VMMEA has been active in the explained. Harb said DSL would soon subject merger to the Director General region since 2006, and operates the be available in Baalbek and large areas Commercial Affairs, PTA Headquarters, two consumer brands of Virgin Mobile in the Bekaa, south and the north. F-5/1, Islamabad. Comments can also and FRiENDi Mobile. “We are not joking. We are working. be sent on [email protected]. Anyone who wants to waste our time The comments must reach till April 22, Lebanon launches two let him not do that with the ministry,” 2016 on these mentioned addresses so Harb told critics of his plan to install that PTA can act while keeping in view fiber optics centers SDL all of Lebanon. the concerned parties regarding the Telecom Minister Boutros Harb approval of Mobilink-Warid merger. An inaugurated two fiber optics stations Banglalink inks infra- information document for the general in Rabieh and Serhal hospital and public which covers major aspects of promised to spread this new service structure sharing agree- the proposed merger is available on to Beirut and other regions soon. ment with Summit website. Harb said the new fiber optics stations Bangladesh’s second largest mobile are part of his plan to upgrade the operator by subscribers, Banglalink, internet service to all of Lebanon Omantel posts Q1 rev- has signed an infrastructure by 2020. A fiber optic cable consists sharing agreement with Summit enue growth of 4.7% of a bundle of glass threads, each Oman Telecommunications Company Communications, under which of which is capable of transmitting (Omantel), the Sultanate’s incumbent Summit will lease fibre capacity messages modulated onto light wave. telecoms operator, has announced to Banglalink on certain domestic “What we did today is one of the first its preliminary unaudited financial routes and in exchange Banglalink steps in the 2020 plan which calls for results for the first quarter of 2016, will lease fibre capacity to Summit installing fiber optics in all of Lebanon,” reporting revenue of OMR135.5 on other routes. Banglalink said in a the minister told reporters after the million (USD350.9 million), an increase press release that the arrangement will inauguration ceremony. Ogero and of 4.7% from OMR129.4 million in the strengthen its network by providing Telecom Ministry technicians built year-ago period. Growth was driven by fibre redundancy in certain areas and cabinets that resemble electricity the firm’s domestic operations, which improve network service availability for transformers and placed between the saw a 5% year-on-year rise in turnover, Banglalink subscribers, while Summit distribution centers. The cables were mainly contributed by revenues from will be able to offer more transmission stretched over an area of 8,000 meters, fixed and mobile broadband services bandwidth to other telecom operators 4,000 of which was in Rabieh and the and submarine capacity sales. Group using Banglalink fibre in specific areas. remaining 4,000 to Serhal hospital. EBITDA totaled OMR70.4 million for The technicians and engineers will the first three months of 2016, up by conduct tests to determine the speed PTA Invites Written 8.2% from OMR65.1 million in 1Q15, of the fiber optic cables. The fiber Comments on the while net profit grew 0.6% year-on-year optic cables will increase bandwidth to OMR34.8 million. from the current speed of 1 megabit Proposed Merger of per second to over 25 megabits per Mobilink and Warid Iran’s TCI modernizes second. “Our ambition is that each On December 15, 2015 Pakistan Mobile individual will have minimum speed Communications Limited (Mobilink), networks with Italtel of 2 megabits per second and it could and Warid Telecom (Private) Limited Italian vendor and systems integrator reach up to 85,” Harb said, adding that filed a notification of proposed change Italtel has signed a memorandum the new service would be available in in substantial ownership interest of of understanding (MoU) with Beirut next week. “I have promised Warid, and the request for permission Telecommunication Company of Iran that in 2020, every last house in every of merger between Mobilink and Warid (TCI) to develop and modernize TCI’s last village and every Last Mountain telecom network. The exact services and valley will enjoy Internet through covered under the MoU fiber optics,” Harb said. But it is not have not been disclosed, clear if the fiber optics service will although in its press become available to citizens any time release Italtel highlights soon. Basically, the Telecom Ministry its credentials in the fields plans to provide this service to of Network Functions government institutions, universities Virtualization (NFV), and large firms in the first phase. A managed services and all-IP worker at one of the Internet service communication solutions. providers told The Daily Star it was Italtel CEO Stefano Pileri not clear when DSL subscribers would said: ‘The MoU signed today benefit from the fiber optics service. represents a fundamental
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SAMENA TRENDS _ APRIL 2016 step forward in the cooperation said Kevin Zhang, president, Huawei locations without large scale installation between Italy and Iran and we are Corporate Marketing. “Developed works because it is compact and light proud to be part of this important economies wanting to capitalize on weight. This joint PoC took advantage project. Telecommunications and their frontrunner ICT status should of these features in order to implement ICT represent an accelerator for the invest more in cloud, big data, and a high-capacity mobile backhaul development of many other areas IoT technologies and solutions to network in snowy, mountainous areas and the economy in general.’ experience the full benefits of a digital very quickly. Going forward, NEC will economy.” The 50 countries assessed strengthen its partnership with KT to UAE, Qatar, China by GCI 2016 account for 90% of global contribute to the launch of their 5G trial GDP and 78% of the world’s population, services in 2018.” speed ahead in Huawei added. digitization process Operator’s branchless The UAE, Qatar and China are KT and NEC Successfully leading the developing nations banking arm to launch in overall levels of national and Test 5G Backhaul payment mechanism for economic digitization, according to Solution Utilizing E-band dairy farmers in Pakistan Huawei’s latest Global Connectivity Spectrum Providing financial access to thousands Index (GCI). Around the world, the NEC has announced the completion of Pakistani dairy farmers, Easypaisa has greatest ICT developments have of a Proof of Concept (PoC) trial with collaborated with Nestlé Pakistan to been seen in broadband coverage South Korea’s Korea Telecom (KT) for make disbursement of milk collection and speed with cloud, big data and a 5G wireless backhaul solution that payments swift, easy, and transparent. Internet of Things (IoT) technologies utilizes E Band spectrum (70 80GHz). The partnership will also feature an also making headway. Average The PoC was conducted at Phoenix awareness campaign for farmers where national connectivity levels are Park Ski World in PyeongChang, Easypaisa will train them to take full 5% higher than they were in 2015, South Korea, using KT’s commercial advantage of the Easypaisa mobile judging by investment in five mobile network infrastructure. KT aims account services including savings technology enablers: broadband, to launch 5G trial services in 2018. products and mass market health and data centers, cloud, big data and This PoC is based on a collaboration life insurance. Under this partnership, IoT, said Huawei. The study looked agreement in the field of 5G networks Easypaisa is providing Telenor SIMs and at 40 indicators that cover the signed between KT and NEC in August registering Easypaisa mobile accounts supply, demand, experience, and 2015. KT aims to introduce radio of around 15,000 farmers across Pakistan potential of these technology transmission using E-Band spectrum to transfer funds into their accounts enablers. The top three developed in order to establish mobile backhaul on a weekly basis. For convenience, economies are the United States, networks for 5G services, especially Easypaisa ensures delivery of the Singapore, and Sweden, with the in mountainous areas, where it is payment to the farmer’s Easypaisa UK moving up to 5th place. In difficult to lay optical fibers. E-band mobile account that they can withdraw terms of developing nations, UAE spectrum’s characteristics, such as from the nearest Easypaisa retailer. This was in 19th place, while Qatar was wider communications channels, will be a relief for the dairy farmers since 21st, and China was in 23rd place. higher linearity and lower atmospheric they will not have to carry cash to their Meanwhile, Malaysia jumped four attenuation compared with other homes from the milk centers and be in places to 25th in the past year and spectrum bands, make it ideal for large- a vulnerable position of being robbed Indonesia moved up two places capacity wireless transmission. In this or travelling long distances to collect to 41st. “Malaysia and Indonesia’s PoC, the iPASOLINK EX, NEC’s ultra- their hard earned money. Food & gains are attributable to broadband compact microwave communications Agriculture Organization of the United rollout, which in turn influences system that operates with E-Band Nations lists Pakistan as the fourth- data centre development,” said a spectrum, was used to interconnect largest milk producing nation in the statement from Huawei. In spite KT’s LTE base stations with high-speed world with its dairy industry being a of its ongoing cable digitization and high-capacity wireless links. As major contributor to the GDP. Every and Digital India projects, India iPASOLINK EX supports ultra-multilevel year, Nestlé pays over PKR 22 billion retained its 44th position. The GCI modulation (256QAM) technology, for milk sourcing in Pakistan; around scores continue to show a positive high capacity transmission of up to 150,000 dairy farmers supply close to correlation with GDP, however, the 3.2Gbps, on par with fiber optic cable, half a billion tons of milk a year through extent to which GCI influences gross is possible. In addition, its support of Nestlé’s chain of over 2,500 milk domestic product (GDP) varies with narrow band transmission (channel collection centers. Prior to Easypaisa’s the stage of digital transformation width of 250MHz and 500MHz) enables collaboration with Nestlé, most of the in each country said the Chinese telecom operators to efficiently utilize dairy farmers received their payments ICT giant. “A revolutionary shift is the frequency bands assigned to them. in cash from the supply agent routed via occurring in the way the world works, “We are honored to have contributed the traditional banking channel. On the with economies across the planet to KT’s 5G-related trial,” said Hideyuki collaboration, Muhammad Yahya Khan, going digital fast. Nations that are Muto, Deputy General Manager, Chief Financial Service Officer, Telenor in the early stages of economic Mobile Wireless Solution Division, Pakistan said: “This partnership is a true digitization should develop long- NEC Corporation. “NEC’s iPASOLINK demonstration of Easypaisa’s vision to term technology plans that include EX can operate in harsh environments, empower people by making financial broadband and data centers to reap and is easy to install at various outdoor services available. We are proud and the benefits of enhanced growth,”
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SAMENA TRENDS _ APRIL 2016 humbled to be facilitating the farmers also expanding the utilization of small and drive revenue growth per with convenient financial services cells and Wi-Fi to ensure continuous subscriber, all of which translates into and encouraging them to increase connectivity throughout the city. a strategic competitive advantage. their production. We hope through Sultan AlDeghaither, Chief Technology The keys to success are the speed- this collaboration, we help Pakistan Officer, said: “Jeddah is the second to-market to launch new campaigns become the largest milk producing biggest city in Saudi Arabia - and thanks and promotions, loyalty concepts, as nation in the world.” “Nestlé is excited to our collaboration with Nokia, it will well as analyze existing campaigns in about entering into an agreement also be a smart city. Introducing IoT to real-time and refine or adjust them with Easypaisa for payment to our all walks of life is a top priority for Zain to ensure optimal performance. “It farmers,” said John Davis, the Head KSA , and Nokia’s Smart City solutions is critical that operators retain their of Finance and Controls for Nestlé will provide us with a framework for subscriber base and increase ARPU Pakistan. “This will allow the farmers enriching the lives of the people in to the greatest extent possible, and to be paid through a mobile account Jeddah.” Ali Aljitawi, Head of Zain KSA the RLM Customer Loyalty solution and the farmers can withdraw cash Customer Team at Nokia, said: “The supports operators in doing just that. from any of the Easypaisa outlets at world is becoming more urbanized, This solution engages subscribers in their convenience. Apart from speedy, with exponentially more connected new and increased services and also direct and transparent payment to the devices. For every device connected gives them ’points’ that they can use farmers, it opens the doors of mobile to the Internet today, 10 more will join for even more savings,” said Thomas financial services for them.” Telenor it in the near future. Through IoT and Thekkethala, President and CEO at Pakistan has a customer base of 36 smart city concepts, we can automate Evolving Systems. “This order not only million. Easypaisa, the branchless our lives by connecting mobile devices enables us to continue providing the banking solution, has 20 million to appliances, lights, roadways and kind of expertise we’ve delivered in customers who conduct over 650,000 just about everything - a shift that the past, but it extends those services transactions every day. Easypaisa’s will improve efficiency and enable that our customers are finding to be of first disbursement is scheduled in April economic, social and environmental great value in our RLM customer loyalty 2016 and is expected to channelize sustainability. We believe that the solution.” more than PKR 1 billion to the farmers Jeddah Smart City concept can be a annually. model for smart cities not just in the Misr Insurance renews Kingdom, but across the region and Saudi smart city to the world.” Etisalat Egypt’s $901 million policy emerge in 2018 The leading insurer in MENA region, Zain KSA and Nokia have signed a North African operator Misr Insurance Company has renewed Memorandum of Understanding opts for next-generation an insurance policy for the Egyptian (MoU) to collaborate on a major customer loyalty solu- arm of UAE telecom operator Etisalat. initiative that will transform Jeddah, With a total sum insured up to 8 billion one of the Kingdom of Saudi Arabia’s tions and services Egyptian pounds (US$901 million), the (KSA) largest cities, into a model Evolving Systems, Inc., a leader in policy is tailored for Etisalat Misr’s for smart cities in the country and real-time activation, analytics and assets and properties, Insurance’s worldwide by 2018. Under the marketing for connected mobile division manager, Hossam Hefnawy MoU, Nokia and Zain KSA will apply devices, today announced that a large told Amwal Al Ghad by phone Sunday. advanced networking technologies wireless operator in North Africa has The policy is a one-year renewable in the Internet of Things (IoT) and selected Evolving Systems to provide term, involving an insurance coverage the Cloud to connect and manage expertise for their Real-time Lifecycle for Etisalat Misr’s administrative a wide array of devices, vehicles, Marketing™ (RLM) Customer Loyalty building in Downtown area alongside homes and applications. Use of these solutions. Due to the business other locations, electronic devices, and technologies will improve municipal criticality of the RLM customer loyalty vehicles of all dangers arising out of fire, services, enhance the business solution, this operator opted to extend burglary, and other risks, he added. climate in Jeddah and create a better their contract for a dedicated team quality of life for the city’s nearly three of experts from Evolving Systems to million residents. Zain and Nokia will review and monitor their customer PTA Launches Mobile also employ advanced network and loyalty campaigns, and to assist App Awards Pakistan of customer experience management in planning new campaigns. This tools to ensure smooth and seamless team will ensure that the customer 2016 operation across the objects and loyalty programs are as successful Pakistan Telecommunications Authority locations. To ensure privacy and and responsive as possible, reducing (PTA) together with Internet Society fulfill public safety requirements, the subscriber churn and increasing (ISOC) Bureau, Telenor Pakistan, National companies will place a strong focus revenue. Operators today face a ICT R&D Fund, Ministry of Information on the reliability and security of the highly competitive industry marked Technology, Special Talent Exchange network. Over the course of this two- by continuing change. In this business Program, Pakistan Foundation Fighting year plan, the companies will enhance climate, customer loyalty becomes Blindness, Pakistan Blind Cricket Council the network capacity, accessibility vital to growing revenue and achieving and Pakistan Youth Foundation of Deaf and efficiency of Zain KSA ‘s mobile profitability. Next-generation loyalty and Hard of Hearing has launched the broadband network in Jeddah, solutions and services can reduce 2016 edition of the Pakistan Mobile eventually leading to 5G access, while churn, accelerate customer growth, App Awards. The theme for this year’s
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SAMENA TRENDS _ APRIL 2016 awards is: “Embracing Mobile accessible and inclusive. “ICT is the Once a Bright Spot, Accessibility for Persons with most important ingredient in making Disabilities in Pakistan” aimed to a society accessible in all fields of life. Afghan Telecoms Face focus on development of ready-to- Pakistan is one of the leading countries Unsustainable Losses use mobile applications addressing working in the area of ICT accessibility Men thread their way through this needs of Persons with Disabilities and we hope that this initiative city’s traffic jams, hawking streamers (PWDs) in Pakistan. As per will act as a benchmark for further of phone cards. Others stand behind independent International sources, projects in the country” Mohammad crude wooden tables selling cheap 10 to 15% of Pakistan’s population Atif, Director, Special Talent Exchange Chinese-made mobile phones. Throngs consists of Persons with Disabilities; Program (STEP) said during the launch. of people navigate the sidewalks and depicting approximately 20 to 30 During his closing remarks, ISOC Asia- streets with cellphones pressed to their million people face some form of Pacific Bureau Director, Rajnesh Singh ears. The boom in cellphones here has disability. Speaking at the launch appreciated the support provided made the Afghan telecommunications ceremony, Dr. Syed Ismail Shah, by local organization(s) to ISOC in industry one of the few bright spots Chairman PTA said “I’m hoping Pakistan. On the 2016 mobile awards, in a moribund economy savaged by that there will be support for this he said that “the support and the war, political gridlock and an exodus cause from all across Pakistan as interest from various stakeholders of money and people. Cellphones work on accessibility does not stop make these awards unique in nature pumped $148 million into the economy with mobile applications. There is and probably first of their kind in last year. The industry was also the so much more that can be done the region. Recently, there is a lot of largest private employer, supplying in this field and it all begins with energy being diverted towards. ICT 140,000 jobs, a feat in a country with an understanding of the needs of Accessibility in Pakistan but to ensure 25 percent unemployment. But even Persons with disabilities.” He further the success, we have to make sure that that success is now looking shaky. The said that when he approached this work continues and brings results”. Afghan government has again increased the MoS IT Honourable Anusha The ceremony concluded with a Q&A taxes on the industry to replenish its Rahman Khan for inclusion of session; the participants applauded the coffers; cutting into the industry’s PWDs in the upcoming IT policy, awards launch and gave some useful shrinking profits. And the country’s she immediately agreed and suggestions for achieving ‘mobile telecom companies are competing for instructed the relevant officers to accessibility’ goals. a dwindling pool of customers after the include the PWDs as a stakeholder drawdown in American and coalition group. Giving the details of the STC chief urges Saudi troops and contractors.“The success awards, Muhammad Shabbir that was is no longer there,” said Karim from ICT Accessibility Group infrastructure push Khoja, the chief executive of Roshan, said that ‘”The 2016, Mobile App Khaled Biyari, STC Group CEO, believes one of the largest Afghan telecom Awards will allow us to harness the investment in infrastructure will be companies. “The economics keep power of technology to promote key to achieving the government’s making it more and more difficult.” inclusion and accessibility in order ambitious plan to digitize Saudi The explosion in cellphone use is to help realize the full and equal Arabia. The government is reportedly remarkable in a country where most participation of persons with moving to reduce its heavy reliance people did not own a phone before disabilities in the society”. DG on the oil sector, where prices have the American-led invasion in October Human Rights, Ministry of Law plummeted, and unveiled plans at the 2001. The nation’s telecommunications and Justice, Mr. Hassan Mangi, start of the year to invest into different infrastructure fell into disrepair under also present on the occasion, sectors, with information technology the Taliban from lack of investment. remarked that “all UN conventions earmarked for growth potential. Biyari, With few phones, most people had to talk about Human Rights but there speaking to Mobile World Live, said walk into Tajikistan or Pakistan or use is no national body in Pakistan the government has committed to satellite phones to call their relatives that takes into consideration digitizing the country, with the role in the Afghan diaspora. After the matters revolving around people of STC, and other operators, “vital” in September 11 terrorist attacks and the with disabilities. This initiative is ushering a period of transformation. start of the war, Afghan Wireless, a joint therefore very crucial and extremely “To digitize a nation, you really need venture with the government, opened, timely” Syed Raza Shah, Member IT, to have the right infrastructure, and and Roshan began a year later. Inspired Ministry of Information Technology on top, you typically need enablement by Roshan’s growth, three other players informed about some recent platforms,” he said. “Services like cloud, jumped into the market. Over the last discussions held at the Ministry on IoT and cyber security help us to work decade, the companies have invested the subject of ‘Web Accessibility’. in different verticals like health and over $2 billion in the country, much of He emphasized to include the education.” To that end, Biyari revealed it in infrastructure like cellular towers. matter in the upcoming IT policy of in the interview that the country’s In this country of 32 million people, Pakistan on the instruction of MoS largest mobile operator had invested around 75 percent are now cellular IT, while appreciating the support heavily over the last couple of years service subscribers. And the cost of a provided by the ICT Accessibility in integrating advanced technology call has plunged sharply. Group. He also mentioned that platforms within its existing telecoms efforts are already underway to infrastructure, providing partners with make Ministry’s website more a range of new services.
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SAMENA TRENDS _ APRIL 2016
Once a Bright Spot, service subscribers. And the cost of a smart solutions for managing rail call has plunged sharply. transportation, including full control Afghan Telecoms Face centre functionality and data centre Unsustainable Losses Next-generation ICT ser- services. The agreement is designed to Men thread their way through support Qatar Rail’s vision to provide this city’s traffic jams, hawking vices for transportation customer-centric integrated railway streamers of phone cards. Others in Qatar services that are accessible, efficient, stand behind crude wooden tables Ooredoo and Qatar Railways Company safe and reliable while maximizing selling cheap Chinese-made mobile (Qatar Rail) yesterday signed a social, economic, and environment phones. Throngs of people navigate memorandum of understanding (MoU) benefits. Ooredoo has demonstrated the sidewalks and streets with to establish a collaboration framework its experience and expertise in cellphones pressed to their ears. The to provide next-generation ICT connecting Qatar with world-class boom in cellphones here has made solutions for the design, construction ICT infrastructure on major national the Afghan telecommunications and operation of the Qatar Rail projects, including Lusail City, Hamad industry one of the few bright spots Development Program (QRDP). The International Airport, Katara and Souq in a moribund economy savaged MoU was signed by Ooredoo Qatar CEO Waqif. by war, political gridlock and an Waleed al-Sayed and Qatar Rail CEO exodus of money and people. Dr. Saad al-Muhannadi at a ceremony Cloud Computing on Rise Cellphones pumped $148 million attended by senior executives from into the economy last year. The both companies. Qatar Rail is currently in Pakistan, Says Oracle From the Year 2013, Pakistan’s industry was also the largest private driving the development of one of the information communications and employer, supplying 140,000 jobs, largest rail projects in the world, and technology (ICT) has shown a a feat in a country with 25 percent the technology agreement is one of the remarkable boom. With an emergence unemployment. But even that most far-reaching and comprehensive of enterprise cloud offerings, a pace of success is now looking shaky. The ever agreed by a leading ICT provider change and growth can be observed. Afghan government has again and a rail infrastructure developer. Along with the technology, mobile increased taxes on the industry to The agreement positions Ooredoo as phone usage in the country is showing replenish its coffers; cutting into the primary ICT solutions supplier for a steady growth. According to the the industry’s shrinking profits. And the QRDP. It will support the provision report of year 2013, Pakistanis are the country’s telecom companies of next-generation ICT services and among the highest SMS users in the are competing for a dwindling pool infrastructure across the Qatar Rail world and the average Pakistani sends of customers after the drawdown in network. Upon completion, citizens, up to 178 text messages in a month. As American and coalition troops and residents and visitors to Qatar will all Cloud computing is providing cheaper contractors.“The success that was is benefit from a range of communication and cost effective automation, data no longer there,” said Karim Khoja, services provided both on-board and management, analysis and services to the chief executive of Roshan, one at stations. In addition, the ICT services the businesses globally as well as in of the largest Afghan telecom will provide vital connectivity during the Pakistan. The Oracle Country Sales companies. “The economics keep the development phase of each of the Manager Pakistan and Afghanistan making it more and more difficult.” essential national projects. Al-Sayed Waqas Hashmi predicted the bright The explosion in cellphone use pointed out that Qatar Rail is leading future in Pakistan. He also said that this is remarkable in a country where one of Qatar’s “foremost projects”, is a great time for cloud in Pakistan. most people did not own a phone creating a national railway network He further added that the cloud before the American-led invasion that will support the National Vision provides access to big data and give in October 2001. The nation’s 2030 and deliver incredible benefits corporations a deeper understanding telecommunications infrastructure to the people and future generations. of their customers. It also provides the fell into disrepair under the Taliban “By integrating a full collaboration best ways to run the business along from lack of investment. With framework into the development plan, with benefiting all types and sizes of few phones, most people had to we will ensure that Ooredoo provides companies. “Small companies can walk into Tajikistan or Pakistan or world-class technology and networks launch into the cloud immediately, use satellite phones to call their at every stage of the roll-out and gaining access to enterprise class relatives in the Afghan diaspora. deploy smart technology that enabled solutions, while medium-sized After the September 11 terrorist significant environmental and financial businesses can get an integrated set attacks and the start of the war, benefits,” he said. Dr. al-Muhannadi of software in the cloud, According Afghan Wireless, a joint venture said the agreement would bring the full to Waqas Hashmi, it is important for with the government, opened, benefit of world-class technology and companies to thoroughly investigate and Roshan began a year later. cutting-edge networks to Qatar Rail the fundamental aspects such as data Inspired by Roshan’s growth, three projects and ultimately to the customers security and management capabilities. other players jumped into the who travel on the national rail system. During the interview he explained the market. Over the last decade, the Under the terms of the agreement, present and future working scenario companies have invested over $2 Ooredoo will provide Qatar Rail with with regard of SaaS and PaaS. For SaaS billion in the country, much of it in the latest infrastructure and solutions, he explained that; “Using SaaS is a infrastructure like cellular towers. In including fixed and wireless connectivity great start, but where companies gain this country of 32 million people, services. In addition, the agreement will real competitive differentiation and around 75 percent are now cellular support the development of dedicated
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SAMENA TRENDS _ APRIL 2016 advantage is customizing aspects trends and standards, we are glad every part of the value chain should of the applications to their own to introduce our first cloud-based be going at the same pace as the rest requirements, while Platform-as- business collaboration service in Oman. and pass through to the next level,” a-Service (PaaS) offers businesses he continued. At the VC level, there is with some other key advantages. Technology startup still enough dry powder waiting to be But the critical area about them deployed and more funds are currently is the developing and testing of sector in MENA grows by being raised for additional investments. applications. ten-fold Today, each of the big VC companies is The technology entrepreneur sector looking at an average of 1000 potential Omani Qatari Teleco- in the Gulf Cooperation Council (GCC) investments, and will typically invest in countries has grown by over 10-fold since less than one percent of those. “So each mmunications SAOG: the nascent venture capital industry one of the main VC players can now Ooredoo Offers First emerged four years ago, allowing for make close to ten investments a year in early stage companies. This will start Cloud Based Col- more and better quality investments in promising startups, according o creating the impact we dream of.” New laboration Service in BECO Capital, a venture capital firm angel and accelerator money is coming Oman that provides early stage growth through, driven by governments, capital and hands-on operational especially in the Gulf Cooperation Ooredoo Business customers can Countries, looking to trigger a major now stay continually connected support for technology companies in the MENA region with a focus on the shift towards knowledge economy. As with geographically dispersed a result, they are supporting the tech audiences, using Ooredoo’s GCC. Dany Farha, co-founder and CEO of BECO Capital who is speaking at STEP startup ecosystem at the incubator Conferencing Services; the stage through government and semi- company’s first cloud based virtual Conference today (Monday), said: “We waited four years for the VC ecosystem government initiatives. Recently, the collaboration solution. The new United Arab Emirates has surpassed service provides users in Oman to mature in quality and quantity to enable us to make a higher number Norway, South Korea, Turkey and Japan with an unmatched online meeting to be ranked 19th in the 2016 Global experience through high quality of investments at the seed stage. We saw our deal flow grow exponentially Entrepreneurship Index. It placed the audio and HD video capabilities all country at the top of 15 Middle East and on a safe and secure platform. The year-on-year for the past four years, so we scaled our raising and deployment North African countries. Such economic Conferencing Service offers small to diversification strategies are already large businesses the freedom and in parallel with the growth in startup activity. The same needs to happen paying dividends, with hundreds of flexibility to establish a telepresence quality tech startup coming online in to allow them to benefit from direct at the angel investment stage so the whole value chain is working together Saudi Arabia, the UAE, Jordan, Egypt interactions with partners, clients, and Lebanon in particular. decision makers, and employees, to be appropriately funded, otherwise thus eliminating costly travel. it will reach a bottleneck.” “We are at Offering a broad range of voice, a stage where additional regional pre- PEMRA grants mobile TV web and video conferencing Venture Capital money should enter into the space and a diverse pool of license in Pakistan features, the cost-efficient service Pakistan Electronic Media Regulatory entrepreneurs have to come forward can be used on various platforms Authority approved grant of Mobile with quality innovation and problem- ‘Hosted communications is one of TV (Video & Audio Content Provision) solving ideas for investments. At the the fastest growing technologies, Service License to M/s Convex moment, we see funding in the middle dramatically changing the way Interactive (Pvt.) Ltd. Karachi. The scope of the chain at the micro-VC, VC and companies do business,’ said Said of Mobile TV licensee will be delivery Private Equity levels.” “More needs to Al Shanfari, Director of Business of PEMRA licensed TV channels and be done at the angel, incubator and Marketing at Ooredoo. ‘Staying FM radio content. Mobile TV licenses accelerator level, and entrepreneurs connected is an essential part of are issued on case to case basis for five must lead this revolution. We ought to modern business life, which is years tenure as Value Added Service ensure that there is enough support for why we launched a service that (VAS). Companies registered with innovation in startups. We are feeders delivers a consistent globally- Securities & Exchange Commission of in the ecosystem and entrepreneurs are connected experience to start- Pakistan (SECP) with minimum paid up the drivers,” he pointed out. “Unless the ups and large corporations alike, capital of Rs 3 million and having prior full investment cycle matures in the significantly reducing travel time PTA (CVAS) license are eligible to apply MENA tech startup sector, the business and costs. This value added service for Mobile TV license. The approval cycle for SMEs will suffer. However, can boost productivity across the was given in the 111th meeting of when it does, the entire value chain board with enhanced, real time PEMRA Authority held under the Chair will grow to a size where institutional collaboration aligning local, of Absar Alam at PEMRA Headquarter. investors and Sovereign Wealth Funds regional, stakeholders anytime and The first draft of legal due-diligence (SWFs) can start deploying to the VC anywhere.’ ‘In times of disruptive report on DTH licensing compiled by asset class.” Dany Farha believes that innovation, value is migrating PEMRA’s legal counsel Justice (R) Ijaz all sub-sectors in the value chain rapidly from conventional telecom Chaudhary was presented meeting need to be invested in at the same services to hosted collaboration of PEMRA Authority. The agenda was pace and move together. “They are and cloud based services. In order deferred till next meeting. Authority, inter-connected and the growth of to keep abreast with the global however, resolved that the DTH
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SAMENA TRENDS _ APRIL 2016 licensing should be expedited kingdom, including Saudi Telecom Co. to accelerate national and regional without compromising laws and Zain Saudi Arabia is assessing several digital strategies for MNOs, enterprises transparency. After assuming the options for its towers, including selling and digital marketplace. The digital charge, newly-appointed PEMRA them for cash and leasing them back or business hub will facilitate exposing of Chairman Absar Alam had initiated working with competitors to create one multiple third party API - application the process for legal due diligence tower company, CEO Hassan Kabbani program interface is a set of routines, to avoid anomalies, if any, in the said last week. While Etihad Etisalat, protocols, and tools for building postponed DTH process. PEMRA, also known as Mobily, isn’t “after a deal software applications - to accelerate in its 107th meeting held on for the sake of a deal” the company is digital innovation. While APIs are the December 4, had decided to defer keen to sell the towers as they are “not life blood of the digital ecosystem, the DTH bidding. The Authority our core business,” Farroukh said. “It’s digital identity management, a key also gave conditional approval a complicated thing. You have to go component of the solution, is essential of minimum technical standards/ to each and every of our 10,000 sites, to providing more and more services specifications for Digital Set negotiate the rent with 10,000 landlords securely across multiple devices, added Top boxes which PEMRA has and have the consent for them to move Thiruchelvam. The digital business drafted last week in line with the to the new tower company.” The shares hub will provide API as a Service and international practices to safeguard of Mobily climbed 3.7% in Riyadh is designed to enable enterprises and the legitimate objective such as yesterday, bringing their gain for this Mobile network operators, or MNOs, quality of service, un-interrupted year to 4.5%. That compares with a drop to transform the way they engage operation of the equipment, of 9.3% for Saudi Arabia’s benchmark and partner in the digital ecosystem. safety and competitiveness. stock index. Mobily, 27% owned by Abu The digital business hub will also Final specifications would be Dhabi’s Emirates Telecommunications contribute towards the acceleration announced in a day or two after Group, is recovering from accounting of the on-going transformation of accommodating PTA’s input. The irregularities discovered more than Dubai into the world’s most advanced technical standards / specifications a year ago that cost the company its and connected Digital Marketplace. have been drafted by PEMRA in CEO and billions in market value. The Dilip Rahulan, executive chairman and pursuance to its endeavor to meet company reported its first quarterly chief executive officer, Pacific Controls, cable TV Digitalization deadline of profit in the fourth quarter after four said: “We are delighted to partner September 30, 2016 and to ensure consecutive period of losses. Mobily with WSO2.Telco in this advent to the maximum facilitation and aims to become profitable again this accelerate delivery of digital services protection of subscribers’ rights. year, although all telecommunication in the Middle East region. Offered as companies are facing an unexpected a platform across the Middle East, the Saudi operator as- challenge from a regulatory requirement digital business hub will serve as the to take fingerprints from customers, gateway for innovation, collaboration, sessing offers for tow- Farroukh said. The requirement, entrepreneurial development. Users er business instituted in January, “in a way limits can experience access to various Etihad Etisalat Co is reviewing your growth,” he said. “It’s a learning digital services in a new transformed offers for its tower business as the curve and we’re hoping there will be engagement format which would Saudi Arabian telecommunications extensions, but we’re working 24/7.” enable quicker go-to-market strategy.” company seeks to become The company is still waiting to hear the The launch of the Digital Business Hub profitable, Chief Executive Officer results of a Capital Markets Authority follows successful WSO2.Telco hub Ahmad Farroukh said. “We received investigation into the accounting deployments in Singapore and India certain indicative offers,” Farroukh regularities, Farroukh said. which currently serve a combined total said in an interview in Riyadh on of over one billion mobile subscribers. Thursday. “If the deal is good for Middle East’s first digital The Digital Business Hub in Dubai will our shareholders, for sure I’ll bring be jointly owned by Pacific Controls it on the table.” The second-biggest business hub launched and WSO2.Telco and will be hosted in The digital business hub will provide telecommunication provider in Pacific Controls’ state-of-the-art Jebel API as a Service and is designed to Saudi Arabia is one of several Ali Data centre. The Digital Business enable enterprises and Mobile network seeking to sell towers as network Hub incorporates features similar operators, or MNOs, to transform the quality becomes similar across to the other two Hubs, and further way they engage and partner in the different operators. Digital Bridge provides the ability to connect with the digital ecosystem. WSO2, an open Holdings is among the leading other hubs, making it part of a global source cloud application development bidders for Etihad Etisalat’s tower ecosystem. Notable features of the Hub and middleware company may portfolio, which could fetch as are built-in APIs for Operator network soon be expanding in UAE’s smart much as $2bn, according to people services, monetization, and a powerful city infrastructure among other key with knowledge of the matter. The Identity Gateway which is GSMA Mobile verticals along with Pacific Controls, company owns about 10,000 towers Connect Compliant. said Kumi Thiruchelvam, CEO - WSO2. in the oil-rich kingdom. Saudi news Telco while launching Middle East’s website Maaal reported in February first digital business hub on Tuesday in that “high-level negotiations” were Dubai. “We are proud to have partnered happening to create a company with Pacific Controls to further a to own the towers of all three digital business hub vision, designed telecommunication providers in the
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SAMENA TRENDS _ APRIL 2016
Regulatory NEWS
Govt. claims 64% of call user-related issues including low battery. Indian operators have also pointed to drops are attributable to spectrum scarcity in a crowded market as telecom companies in a factor behind the call drops. But Rohatgi India rejected this argument and claimed that the issue instead relates to inefficient Indian regulator Trai has come out spectrum optimization. Operators have swinging in the legal battle over also faced difficulties setting up towers the decision to require operators to due to a range of issues including fears compensate their users for call drops, over radiation. But Rohatgi argued that accusing telecom operators of behaving Indians are exposed to greater radiation like a cartel. In legal arguments opposing level than citizens in other countries and a group of operators’ request to overturn that difficulty setting up towers cannot be a court ruling upholding the penalties, Regulatory used as an excuse for call drops. Attorney-General Mukul Rohatgi also Updates accused the operators of profiting from call drops, the Economic Times reported. FCC approves Shentel, A group of operators have petitioned India’s Supreme Court to challenge a nTelos merger previous Delhi High Court ruling into the Regional US operator Shenandoah matter. This verdict upheld the regulator’s Telecommunications Company (Shentel) demand that operators compensate users has confirmed that the Federal 1 rupee ($0.015) per call drop experienced. Communications Commission (FCC) has Rohatgi is representing Trai. The operators approved its proposal to acquire fellow have argued that call drops are often mobile operator NTELOS Holdings outside of their control, and that having to (nTelos), as announced on August pay compensation will have a significant 10, 2015. Shentel anticipates that the detrimental financial impact. They have transaction will complete within the next also denied profiting from call drops. But few weeks, subject to the completion in his arguments, Rohatgi said operators of the remaining closing conditions. As were only investing 5% of their revenue previously reported by TeleGeography’s in infrastructure and are only interested CommsUpdate, Shentel’s all-cash in signing up more customers without takeover was valued at USD640 million, investing to fix call drops. Rohatgi claimed of which USD431 million was said to that 64% of call drops are attributable be nTelos’ net debt. Concurrent to the to telecom companies and only 36% to merger agreement, Shentel entered into
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SAMENA TRENDS _ APRIL 2016 a series of agreements with Sprint EU to block Hutchison, regulations to be followed by all the Corp, including the expansion of O2 UK deal within weeks relevant entities. Shentel’s ‘affiliate’ relationship with • Under the amended law, all the mobile giant. All reviews relating - report commercial activities which are to the Sprint-Shentel agreement have Hutchison’s plan to take over against law cannot be launched by also been completed. Christopher Telefonica’s UK mobile phone operators. They are also required E. French, Shentel’s President and business is set to be formally blocked to give at least ten working days CEO, commented: ‘We are pleased to by EU regulators within weeks, notice to PTA before the launch of have received FCC approval for our reports Bloomberg. According to two any promotional scheme. acquisition of NTELOS and the related unnamed sources familiar with the • Telecom operators will have to transactions with Sprint. With the final talks, EU anti-trust officials have failed inform PTA before launching regulatory approvals received, we to be won over by Hutchison’s offers commercial practices. look forward to closing the merger to sell network capacity to MVNOs, and successfully integrating the two believing this will not create sufficient • It’s binding on operators to companies. This transaction more than competition to prevent potential price follow the prescribed manners by doubles Shentel’s wireless customer hikes. Regulators are understood to PTA to devise their commercial base, enhances our presence in the be holding out for 3 UK/O2 UK to campaign. Mid-Atlantic region by adding a offer to sell part of their network to a • PTA may alter, restrict, suspend highly complementary footprint and new operator. The Sunday Telegraph or impose of any commercial further strengthens our long-standing reported that Hutchison is already activity or telecommunication partnership with Sprint. With the close preparing to mount a legal challenge service promotional schemes if of this deal, Shentel will be positioned to any EU move to block the takeover. necessary. In that case operator as one of the top six public wireless will be responsible to provide title providers in the United States’. and key features of such activities India rules out retro- to PTA. Altice fined EUR 15 mln spective tax on spectrum • Operator will be responsible to The Indian government has clarified provide an undertaking that the over Outremer Telecom that telecom service providers will not commercial practice and their sale have to pay service tax on payments telecom promotional schemes The French competition authority for spectrum purchased before April 1, are in compliance with the Act, has fined Altice/Numericable EUR 15 the Economic Times writes. The Central Rules, Regulations and all other million for not complying with several Board of Excise and Customs (CBEC) laws of Pakistan. obligations related to its sale of stated that payments for spectrum • Under the new regulation, an Outremer Telecom in La Reunion and rights, whether upfront in full or in undertaking regarding inclusion Mayotte, a condition for its acquisition instalments, have been exempted of key features of the offered of SFR. When the competition authority from service tax. The clarification telecom promotional schemes granted its approval for Altice/ follows the introduction of a provision in print media which shall be Numericable’s acquisition of SFR on 30 which made all government services, published in at least one national October 2014, it required Numericable including auctions, taxable. In the case and local-language newspaper and Altice to sell Outremer because of spectrum auctions, the new tax each as well as on the licensee’s, the combined market share of SFR’s would have amounted to retrospective website in a clear, transparent and SRR subsidiary and Outremer was 66 taxation, as it would also have been nondiscriminatory manner. percent in Reunion and 90 percent applicable on deferred payments for These amendments are surely going in Mayotte. The commitments airwaves bought before April 1. to safeguard the consumer rights included maintaining the viability, and interests, while the operators are market value and competitiveness of PTA Announces Amend- required to facilitate these consumers Outremer prior to its sale. But during under these regulations. the period in which the commitments ments in Consumer Pro- applied, Outremer’s tariffs rose by tection Regulations 17 to 60 percent, giving customers Pakistan Telecommunications EU Parliament passes the opportunity to end their plans Authority (PTA) announced data protection rules without incurring any cancellation amendments in consumer protection The European Parliament this week fees. The authority writes that regulations. According to the authority passed new rules designed to cancellation rates were three times the amended in “Telecommunication protect consumers’ data and privacy. higher in January 2015 than in January Consumer Protection Regulations, Under the General Data Protection 2014, and constituted a reversal in 2009″ are aimed to protect the Regulation (GDPR), people will get Outremer’s strategy of capturing new consumer interests as mandated access to information about how customers though aggressive pricing. under the Pakistan Telecommunication their data is stored and processed, SFR contests the authority’s analysis, (Re-organization) Act 1996. These and will have the right to be told as arguing that the tariff increases regulations provide a mechanism soon as possible when it has been reflected good management and did with regard to launch of commercial hacked. Businesses will benefit for not change the competitiveness or practices and telecommunication having a single set of EU-wide rules viability of the businesses sold. The promotional schemes by different governing data protection, which will company reserves the right to appeal operators. Following are some of the save them an estimated €2.3 billion the decision.
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SAMENA TRENDS _ APRIL 2016 per year. Non-EU companies will the telecoms regulator pledged to have to comply with these rules if push industry players to lower prices they want to provide services to EU and improve speeds. The country’s consumers. Companies that fall foul three operators in May committed of the GDPR can be fined up to 4% of to reducing data prices by 20-35 per their global annual turnover. The new cent, as well as improving network rules were first proposed in January speeds. Online shopping in rural China 2012, and after years of negotiation has huge potential since 22 per cent were agreed upon in December 2015. of online shoppers live in townships “The new rules will ensure that the and villages, according to a CINIC fundamental right to personal data policies and inform people when report. This number is expanding protection is guaranteed for all,” said their data has been hacked. National rapidly and rural online buyers may a joint statement on Thursday from data protection regulators will also outnumber urban shoppers within the European Commission’s first have more powers of enforcement, ten years, making the build out of a vice president Frans Timmermans, including the ability to issue fines robust broadband infrastructure an Andrus Ansip, vice president for the of up to 4 percent of a company’s imperative, China Daily said. Digital Single Market (DSM), and Vera global annual turnover. The legislation Jourová, commissioner for justice, passed by parliament also includes a Majority of Wireless consumers and gender equality. “The Data Protection Directive governing General Data Protection Regulation the handling and transfer of personal Consumers Support Ab- will help stimulate the Digital Single data by law enforcement authorities, olition of Net Neutrality Market in the EU by fostering trust in including across EU borders. EU states online services by consumers and legal A new CTIA commissioned Harris Poll will have two years to transpose the survey found that Americans would certainty for businesses based on clear new rules into their national laws, with and uniform rules,” they said. “The overwhelmingly welcome new free certain opt-outs in the UK, Ireland and data options that allow consumers GDPR is a major step towards a real Denmark. Digital Single Market,” said telco lobby to access more content and services group ETNO. “It is now important to without counting against their data work on a proper implementation in plan. Specifically, 94% of the Millennial China to invest in rural (18-34 years old) were more likely to view of new digital business models broadband to boost and technologies such as IoT, big data, try to a new online service if it was a 5G and connected cars.” In addition to e-commerce part of free data offering. However, the GDPR, the European Parliament China plans to allocate additional funds such a service would also breach net also this week passed the Data to rural areas to improve the internet neutrality rules that require all data Protection Directive, which is designed infrastructure and extend broadband services to be treated equally. You can’t to allow police forces in EU member connections to promote e-commerce offer free data for only some services, states to share information more easily and boost trade. A government and charge for others. Seventy-seven by applying one set of rules for the program aims to integrate the internet percent of the Millennial said they whole bloc, instead of 28 separate sets with the logistics sector to reduce were more likely to sign-up with a of rules. “Having more harmonized costs, increase profits, stimulate new wireless provider that offered laws in all EU member states will make consumption and boost employment, free data, and a remarkable 98% of it easier for our police forces to work according to a statement by the State the Millennial were more likely to stay together,” the EU Parliament said. Council’s executive meeting, chaired with their current wireless provider by Premier Li Keqiang. The State if it offered free data services. Free Council is China’s Cabinet. China has data services mean more usage of EU Parliament approves 195 million internet users in rural mobile data and devices, with 94% data protection legisla- areas, accounting for 28 per cent of of the Millennial more likely to use tion the country’s total, according to the more data if it doesn’t count against China Internet Network Information their data plan. “It is no surprise that The European Parliament has approved Centre (CINIC). The number of rural Americans embrace free data services new data protection legislation in the citizens last year grew 9.5 per cent that offer wireless consumers more EU, bringing to an end four years of last year, almost double the rate for data, more competitive choices and negotiations on reforming the data urban internet users. E-commerce more flexibility to try new mobile protection directive dating from giants such as the Alibaba, JD and applications and content. Free data 1995. The General Data Protection Suning Electronic are expanding into services empower consumers with Regulation introduces, among other rural areas as markets in first- and the freedom to choose what works things, a “right to be forgotten”, where second-tier cities become saturated, for their mobile life, and that’s an personal data no longer in use or China Daily reported. But China ranks outcome that everyone should relevant must be deleted, as well as 91st out of more than 200 countries support,” said CTIA President and CEO the right to transfer personal data to in broadband download speeds, and Meredith Attwell Baker. The study a new service provider. Organizations internet access in the country’s rural was conducted February 26-29, 2016, will need to obtain a ‘clear and areas is much slower than in cities, online by Harris Poll on behalf of CTIA affirmative consent’ from individuals the newspaper said. A year ago, after among 2,082 adults in the U.S. before processing their personal data, Li criticized the country’s mobile explain in clear language their privacy internet for being expensive and slow,
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Spark welcomes regula- Falque-Pierrotin said that the privacy customers want more agility and regulators are awaiting a forthcoming faster time to market; and equipment tory review ruling by the EU Court of Justice on vendors are unhappy with shrinking Spark (formerly Telecom New Zealand) whether mass surveillance of citizens margins (although, unsurprisingly, he has welcomed a government review by intelligence services could be said this was an issue for companies of the Telecommunications Act 2001 legal. If such surveillance is found beyond Huawei). In addition, online which aims to update legislation unlawful, it would have a big impact service providers “might even see the to provide improved regulation on the national security exceptions telecoms industry as a roadblock to of converged networks from 2020 included in the Privacy Shield. Falque- better serving their customers”. This onwards. In September last year the Pierrotin said that the data protection has led to them looking at disruptive government released a discussion authorities also had concerns about business models and technology that document calling for views on how the independence and effectiveness could potentially “overthrow” the the industry could be better regulated of the Privacy Shield ombudsperson, telecoms industry. On that basis, there in future, and authorities have now who will deal with complaints from are two way to resolve the problems, announced a series of high-level policy Europeans about how their data has he declared. The first is disruption decisions which set the framework for a been used by US law enforcement, from “non-traditional telecom review of the 2001 Act. Spark’s General such as the NSA. The regulators did players”. Xu cited connectivity efforts Manager of Regulation, John Wesley- concede that the Privacy Shield was from companies such as Facebook Smith, commented: ‘We welcome an improvement on the previous Safe and Google, which have often steered the Government’s early engagement Harbor agreement, struck down last clear of existing technology in order with industry, and its commitment to year by the EU court for failure to live to investigate drones, balloons and determining the regulatory settings up to EU data protection standards. satellites. “The second alternative is that will apply from 2020 well in Falque-Pierrotin also noted that the for our own industry to truly reinvent advance of that date. The certainty this Privacy Shield may need revisions ourselves. And industry has to come will provide will be an important factor to bring it in line with the upcoming up with faster and more efficient in ensuring a healthy, competitive new directive and regulation on data ways to solve customers.” Xu said that market for the benefit of consumers.’ protection in the EU. The regulation Huawei’s strategy, including its efforts He added: ‘It’s also important to is expected to be approved this to “cloudify” networks, are designed to ensure all levels of the industry have week by the European Parliament, “inject new momentum” into a journey the appropriate regulatory settings to giving EU members two years then to that leads to the transformation of encourage continued investment in implement the changes. The Article operators. “In that context, open better technology and services.’ The 29 group’s opinion is only advice to source and virtualization are not such government says it will consult further the European Commission, which a big deal,” he said. with the industry later this year on negotiated the agreement with the US. details of the Telecommunications Act The Article 31 Committee, consisting review. of representatives of the EU states, Government allows True must also give its opinion on the into 900MHz re-auction; agreement, and most of the members True poised to poach AIS EU privacy regulators are thought to support the Privacy 2G users skeptical about Privacy Shield. The Article 31 Committee is expected to consider the Privacy Shield Thailand’s government has ordered Shield in the coming weeks, before giving its the National Broadcasting & opinion later in May. The Commission Telecommunications Commission aims to take a final decision in June, (NBTC) to hold a new 900MHz after which the agreement would license auction as soon as possible, come into effect immediately. potentially on May 22, bringing forward the previous mooted date of June 24, the Bangkok Post reports. Huawei boss warns Furthermore, Deputy Prime Minister telecoms sector could Wissanu Kreangam said that the state need overhaul will allow all operators to participate except Jas Mobile (which failed to Eric Xu, rotating CEO of Huawei, pay for the 900MHz spectrum it won said that the telecoms industry – in December’s auction); this means including both service providers that True Corp – the winner of the and equipment vendors – is facing other 900MHz block in December – The EU’s privacy regulators have challenges driven by dissatisfaction will be allowed to bid for the second expressed concerns about the of the status quo. And the executive concession, despite the NBTC recently proposed Privacy Shield agreement was very measured in his selection of voting to ban True from the re- on data transfers to the US, saying the world ‘challenges’. “Maybe I’m not auction. ‘The re-auction will occur as it doesn’t do enough to prevent that sure to use a more dramatic word, soon as possible, which could be on mass, indiscriminate surveillance of but ‘challenge’ is a neutral world which May 22 instead of June 24, and the EU residents, reports Ars Technica. reflects what the industry is facing,” he government may use its powers under Speaking at a press conference in said. According to the chief, consumers Section 44 of the interim constitution Brussels, the Chairman of the so-called are dissatisfied with pricing and in to make it happen,’ said Wissanu. Article 29 Working Group, Isabelle some cases service levels; enterprise The state has rejected proposals by
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Advanced Info Service (AIS), which it. The recommendation was to charge USTelecom to FCC: was outbid in December, to simply a merger fee. On April 7, the division purchase the 900MHz spectrum sent the report of Robi-Airtel merger New Regs Could Choke without auction. Meanwhile, True says to the PMO to get its final nod. A Business Broadband and it is ready to fully launch nationwide telecom source said the merger fee Cost Jobs has newly been introduced, following 2G 900MHz services this Thursday, 14 An FCC decision to take over pricing the neighboring country’s example. April – the date that AIS is currently of business broadband services could He termed it very reasonable. Since scheduled to switch off its own GSM- eliminate up to 43,560 jobs, cut the two companies would benefit 900 service. As reported by The economic output by $3.4 billion over simultaneously, the government Nation, True is eyeing the remaining a five-year period and prevent 67,000 can rather demand a charge as part 900MHz users of AIS who are still buildings from getting access to fiber, of its providing new facility. Earlier, using 2G phones to make voice calls. according to a report by Hal Singer, Bangladesh Telecommunication Suphachai Chearavanont, True’s CEO principal of Economists Inc. and Regulatory Commission (BTRC) held a said yesterday that True’s 2G service adjunct professor with Georgetown public hearing on merger agreement will use the 900MHz and 1800MHz University’s McDonough School of of Robi and Airtel that mostly went bands that True won licenses for in Business. USTelecom commissioned in favor of the merger deal. The December (which it is largely using the study. The study comes as some regulatory body also formed a two- for 4G LTE expansion). AIS has agreed companies are asking the FCC to member expert committee to make a a deal with its other main rival DTAC set prices in the market. Singer market analysis report which was also to continue serving the majority of reportedly found no evidence of lack in favour of the deal. Industry insiders its 2G-only device users via roaming of competition, and says that monthly said the merger is set to strengthen the on DTAC’s 1800MHz network, but a prices for some business broadband industry structure, competitiveness, stubborn portion of 900MHz-only services declined between 7 and 17 and more importantly, bring greater handset user remain. AIS’ 900MHz percent from 2013 to 2015. Singer used benefits to customers in terms of concession expired last September, Charlotte, N.C., as a test bed because network quality and coverage and an but it has continued to utilize the band it reportedly has a population and improved offering of data products under a serious of extensions – the supply of office buildings considered and services. On January 29, Robi and latest expiring on April 14, although it representative of an average U.S. city. Airtel signed a merger agreement in is lobbying for further leeway. He extrapolated the results to assess Kuala Lumpur to venture into a joint the impact of regulatory change business operation in Bangladesh. The nationwide. Projecting over a five- Government asks Robi, joint venture will be named as Robi. year period, the study predicts the According to a recent Robi statement, Airtel to hand in more following: documents for merger the combined entity operating as Robi will serve approximately 40 • If there is no regulation of fiber- Before finalizing its approval for million customers. The joint strength based networks, providers Robi-Airtel merger, the Prime will deliver the widest mobile would be able to light up nearly Minister’s Office (PMO) has asked network coverage across Bangladesh, 122,000 buildings nationwide, the two cellphone companies to strengthening its position in the mobile representing $9.9 billion in capital submit a set of documents relating internet segment as expenditures and 4,900 new fiber well as consolidating its route miles. position as the second • New regulations would cut largest operator in the projected investment in half to an country. The merger estimated $4.4 billion, providing will strengthen long- fiber to only 55,100 buildings with term sustainability of 2,200 new fiber route miles. Bangladesh telecom • New regulations would eliminate landscape and market 43,560 jobs and reduce economic structure, secure faster output by $3.4 billion, while nationwide roll-out of preventing 67,300 buildings from mobile broadband and getting new fiber investment. contribute significantly • Investment by multiple providers to the overall economy is ongoing and robust. Nearly 30 and revenue of competitive broadband providers the country. The service over 267,000 buildings telecommunications with fiber across the country, to their properties and financial landscape in Bangladesh has been laying over 650,000 route miles health respectively. The notice was one of high-growth, but intensively of fiber, or 2.42 route miles per served yesterday by the PMO with competitive with six players. Upon building. an immediate effect, according to a completion, Axiata will hold 68.3% Telecommunication Division official. controlling stake in the combined • From 2010 to 2015, four major Prior to dispatching the merger entity while Bharti will hold 25%. The fiber service providers – Zayo, documents to the Prime Minister’s remaining 6.7% will be held by the Level 3, Lightower and TW Office, the Telecommunication existing shareholder, NTT DOCOMO Telecom – invested about $6 Division added a recommendation to of Japan. billion in infrastructure in over 40,000 buildings, creating about 60,000 miles of metro fiber.
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• The aggregate capital expenditure band, the TRAI recommended using ‘based on reputation’. TeleGeography needed to wire all unlit buildings the APT700 band plan, with frequency notes that Viettel Group is likely in the United States would be division duplex (FDD)-based frequency to be considered the front-runner between $52 to $75 billion, based arrangement. The entirety of the for the licences, given its impact in on costs per building in Charlotte. available spectrum (2×35MHz) should markets such as Mozambique (as be put up for sale, the regulator noted, Movitel), Cameroon (Nexttel), Burundi while it determined a reserve price of (Lumitel) and Tanzania (Halotel). For DoT to reduce spectrum INR114.85 billion (USD1.69 billion) per its part, Monaco Telecom reportedly usage charge to 3% for MHz (paired) of pan-India spectrum, bankrolled the license acquisition by July auction with per MHz prices per circle ranging yet-to-launch Malian operator Alpha from INR440 million (North East) to Telecom Mali back in 2012, and later India’s Department of INR15.95 billion (Delhi). The auction is entered into a strategic partnership Telecommunications (DoT) has currently on track to be the country’s with Middle Eastern holding company lowered the spectrum usage charge largest ever spectrum sale, with the BinTel, which operates as Azur in three (SUC) from 5% to 3% of annual gross potential to fetch INR5.36 trillion. markets, in January 2015. revenues for the country’s upcoming frequency auction, scheduled for July this year. According to the Economic ARTCI mulling offers African regulators to Times, citing a senior telecoms official, from Viettel, Monaco harmonize roaming DoT has approved the decrease in SUC in an effort to attract bids and Telecom for new license The West African Telecommunications ensure higher revenue from the One week after dealing with Regulatory Assembly (WATRA) said it auction. Further, the new levy could “underperforming” mobile operators is working towards harmonizing the help cellcos to reduce debts and Comium and GreenN, the Regulatory roaming activities of the Economic lower voice and data charges for Authority for Telecommunications in Community of West African States Cote d’Ivoire (Autorite de Regulation (ECOWAS). The group said guidelines des Telecommunications de CI, ARTCI) are already being developed for a is said to be reviewing three offers for seamless interconnection and roaming a new concession. Telecoms minister of telephone users in the West African Bruno Nabagne Kone told Reuters that sub-region. Its Executive Secretary, the government is considering offers Alhaji Maman Laminou who spoke. from Monaco Telecom, Vietnam’s Viettel Group and the Libyan Post Telecommunications and Information Romania competition Technology Company (LPTIC) – the body starts investigation parent of stricken GreenN. He noted: at Orange ‘We have three offers which will Romania’s Competition Council undergo an independent assessment, announced it initiated an investigation consumers. The tender will see the then a decision will be taken by concerning a possible abuse of government auctioning off more than the government,’ adding that the a dominant position by Orange 2,000MHz of spectrum across seven watchdog may decide to preserve the Romania. The inquiry concerns a frequencies – including the 700MHz three operator market – comprising possible discrimination practiced band which will be made available for Orange, MTN and Moov – if the offers by Orange Romania in relation the first time. Once approved by the are not attractive enough. According to companies active in the SMS Cabinet, telcos will continue to pay a to TeleGeography’s GlobalComms payments market or the market for weighted average of the new SUC and Database, the ARTCI seeks to mobile phone advertising via short the older fee (3%-8%) for the total reconfigure the mobile sector as a four- messages in Romania. During the combination of frequencies they hold. player market, via the introduction of inquiry, the authority carried out The SUC on broadband wireless access a new operator ‘capable of taking an unannounced inspections at both (BWA) spectrum in the 2300MHz band active part in the development of the the headquarters of Orange Romania remains at 1%. As previously reported Ivorian telecoms market’, alongside as well as the headquarters of some by TeleGeography’s CommsUpdate, in main players Orange, MTN and local SMS payment aggregators. The January 2016 the Telecom Regulatory Moov. As such, in September 2015 authority said there are indications Authority of India (TRAI) published its the watchdog invited Expressions that these companies may hold pieces recommendations on reserve prices for of Interest (EoI) for a new telecoms of evidence the competition authority frequencies in the 700MHz, 800MHz, concession, which it said would requires for an accurate assessment 900MHz, 1800MHz, 2100MHz, ‘revitalize the market’. The ARTCI has of the behavior of Orange Romania in 2300MHz and 2500MHz bands for promised an ‘optimal redistribution the concerned markets. The collected the July spectrum auction, calling of spectrum resources’, while the documents are being analyzed by the for the government to complete the successful bidder will be expected to authority as part of its investigation spectrum harmonization process in deploy networks capable of supporting process. the 1800MHz band, and to carry out mobile and fixed telephony, data a similar re-assignment exercise in the transmission and internet access. 800MHz range before proceeding with The regulator noted that the pre- the tender. Regarding the 700MHz selection of operators will be primarily
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Pakistan takes up for establishing an agreed mechanism Sowho. Etisalat Nigeria recently won to overcome the issues related to the 2016 MobileMoneyExpo Kalahari cross-border frequency spillover effects of mobile signals in Financial Inclusion Product of the spillover issue with ITU the bordering areas of both countries. Year Award for its contribution to the Pakistan has finally taken up the cross growth of the financial sector of the border frequency spillover issue with economy through its mobile money the International Telecommunication Telecom operators key product. Union (ITU). In frequency spillover, to financial inclusion in mobile phone signals of one country Africa could be received in the neighbouring MTNL scoops USD65m The mobile network operators in the country. Owing to spillover signals refund for airwaves; country have been identified as critical from Afghanistan, terrorists reportedly stakeholders in the success of the full BSNL merger due in used Afghan SIMS during their attacks digitization of the financial services three to four years in Pakistan. The local law enforcing sector in Nigeria. Director, Digital agencies cannot locate the location of State-owned telco Mahanagar Business, Etisalat Nigeria, Adia Sowho Sims issued by some other country. In Telephone Nigam Ltd (MTNL) has Etisalat, who made the observation the past, the signal spillover from TATA received INR4.29 billion (USD64.75 while speaking at the 2016 eWorld Mobile and Reliance Communications million) from the government for the Forum organized by Ajomedia of India had also affected services return of its 800MHz spectrum, the identified four enabling factors that of a local mobile operator in cities operator announced in a filing to can facilitate the achievement of the bordering India of Punjab province. the Bombay Stock Exchange (BSE). Central Bank of Nigeria’s goal of the Pakistan’s State Minister for IT MTNL notes that the government full digitization of the financial services Anusha Rehman on Friday asked has approved total compensation sector in Nigeria. Sowho who spoke international body to help resolve of INR4.58 billion for the airwaves, on the subject, Financial Inclusion and the issue. Talking to a delegation of of which INR4.29 billion had been Digital Financial Services said that the International Telecommunication disbursed by the Department of the factors include interoperability of Union (ITU), Rehman highlighted Telecommunications (DoT) by 30 standards for money exchange across the need for a concerted effort March 2016. In a related development, operators, agents and products, lead by ITU at a regional level to MTNL’s chairman and managing agent/ merchant distribution network mitigate the cross border frequency director, Narendra Kumar Yadav, that accept and processes clients’ spillover in neighboring countries, transactions, technology platform said a handout issued by her office. or avenue by which digital financial She said that frequency spillover is services are being provided to the not only causing interference with target customers as well as product the telecommunication networks variety which addresses key pain but is also providing coverage in points and creates value in the areas along the border. She said that community. She called on relevant Pakistan may take the initiative at stakeholders in the digital financial the regional level through the Asia- services ecosystem to evolve ways Pacific Telecommunity (APT) to build that could help them remain relevant, a regional consensus on the matter assuring the commitment of Etisalat to before putting up for discussion at a seeking and creating more innovative global level. The ITU Field Mission is has said that it is his understanding ways to create value for consumers. visiting Pakistan for the stakeholders’ that the telco is to merge with sister She said, “Research results show that consultation to prepare a Spectrum company Bharat Sanchar Nigam only 12 per cent are doing mobile Management Plan for Pakistan. Ltd (BSNL) in the next three to four banking while online banking has Pakistan has been highlighting the years, the Economic Times writes. The just 18 per cent of the population. challenges in war on terror due to use operator is expected to turn profitable This is a long road to our destination, of Afghan Sims in the country. Director in the next financial year, following and it calls for a strategic approach General of the Inter-Services Public three years of narrowing losses after that involves the collaboration of all Relations (ISPR) Lieutenant General the government weighed-in to revive stakeholders.” She noted that there Asim Saleem Bajwa in January had said the ailing provider. Further, the official must be regulatory interventions in that the attackers of the Bacha Khan was quoted as saying: ‘In two years’ place to foster the right conditions for University in Charsadda used Afghan time, we should get around INR10.00 increased collaboration stressing that Sims. Pakistan Telecommunication billion from asset monetization which the banks must see and work towards Authority PTA has been continuously includes INR7.50 billion from optic the greater need for client-centric and approaching Afghanistan to work out fiber and INR500 million from the digital mind set to increase customer a solution of the issue. According to tower business.’ Commenting on the base and deposits while reducing cost PTA, Islamabad has offered Kabul to planned BSNL/MTNL merger, Mr. to acquire and serve. “On our part, sign a Memorandum of Understanding Yadav explained that, for now, ‘there we are committed to efforts that will (MoU) since 2014 but got no is more emphasis on synergy than on drive Smartphone and broadband response. Despite reminders given merger. [The] merger will take place penetration to enhance the experience by the Pakistan Telecommunication but there is time, it is not a straight of customers who are expected to Authority (PTA), Afghanistan gave a option. carry out financial services”, said cold shoulder to the Pakistani offer
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A snapshot of regulatory activities in samena region
choice in the first four years, and expand Algeria to the southern regions of the country President: Mr. Toufik Bessai [Regulatory Authority for Post within three years’. (April 14, 2016) Agence Ecofin & Telecommunication (ARPT)] Algerian telecoms watchdog the Bahrain Regulatory Authority for Post and Chairman: Dr. Mohammed Telecommunications (ARPT) has accepted Al Amer three bids for 4G licenses submitted by the [Telecommunication Regulatory country’s cellcos Algerie Telecom Mobile Regulatory Authority (TRA)] (Mobilis), Optimum Telecom Algerie (OTA, Further to Order No. 2 of 2016 issued Updates Djezzy) and Ooredoo Algeria (Nedjma) by the Telecommunications Regulatory by stating that the applications were Authority (“the Authority”) on the February ‘admissible’. Mahgoun Salah, chairman of 4, 2016 and pursuant to Articles 31, 34, the 4G license award committee, revealed 35 and 37 of the Telecommunications that the provisional date for the award of Law, the telecommunications service the 4G authorizations is now set for May licenses granted to 2Connect W.L.L were 23. In early January the regulator invited revoked effective the February 25, of all interested parties to submit their 2016. Upon receipt of an application bids for participation in the 4G license from 2Connect W.L.L, to enable the auction, with an initial deadline of April 3, successful migration of all their existing 2016 (subsequently pushed back to April customers to other licensed operators, 11). ICT Minister Imane Houda Feraoun the Authority has granted an extension disclosed in January the government to 2Connect W.L.L. to continue providing will grant the licensees a period of three telecommunication services under Article months to obtain the required equipment, 37(b) of the Telecommunications Law with the launch of commercial 4G services until the June 28, 2016. For the avoidance expected to take place in the last quarter of doubt, 2Connect W.L.L is not permitted of 2016. Further, the minister added that to acquire any new customers during the under the license terms and conditions, above mentioned extension period. (April 7, the cellcos ‘must provide a minimum 2016) tra.org.bh coverage of 10% in the provinces of their
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Telecommunications Regulatory Authority (TRA) has SIM cards, Reuters reports, citing a statement by Zain to urged operators in the sector to adopt international the Kuwait Stock Exchange. In January 2011 Zain Iraq, the standards for information security in light of the major local unit of Kuwaiti telecoms fi rm Zain Group, was issued cyber threats faced by the industry. This came during a US$100 million fi ne for allegedly releasing fi ve million a workshop held on Information Security based on ISO SIM cards without regulatory permission. After more 27001 and CAS (T) Standards for the telecommunications than four years of litigation between the two parties, operators. Commenting on the developments, Dr. Zain said in June 2015 that the CMC had dropped its Khalid Al Khalifa, TRA’s Director of Cyber Security said, legal case. However, a committee at the commission has “Following best international practices are essential, as now raised the issue again and wants to meet with Zain our telecommunications infrastructure is the backbone Iraq executives on 13 April, the statement said, adding of development not only in telecoms sector but also that the company would attend the meeting and bring in other critical sectors such as banking and fi nance documents supporting its position. (April 6, 2016) reuters.com as they rely on the availability of the services provided over these critical assets.” ISO 27001 encompasses Telecommunications regulator has revived a complaint best international practices on information security against the local unit of Kuwait’s Zain which could management, risks and controls. CAS (T) is a standard involve the imposition of a $100 million fi ne on the for information in Telecommunications Service Providers company, Zain said in a statement to the Kuwaiti bourse. developed in the United Kingdom. The workshop, For several years, Zain Iraq and the Communications attended by telecommunications operators in Bahrain, and Media Commission battled in the court system over discussed various issues related to Information security, an allegation that the unit sold SIM cards without the including the major sources of cyber threats faced commission’s permission. In mid-2015, Zain said the by telecoms operators. The workshop gave insight regulator had scrapped its legal case. But a committee on how ISO27001 and CAS(T) standards can help at the commission has now raised the issue again and operators address these cyber threats, experiences of wants to meet with Zain Iraq executives on April 13, the implementation of these standards in the UK, and the statement said, adding that the company would planning for implementation of ISO27001 and CAS(T) attend the meeting and bring documents supporting its certifi cation from the operators’ point of view in both position. (April 4, 2016) reuters.com Mobile and fi xed line services. (March 30, 2016) newsofbahrain.com An Iraqi appeals court has upheld a ruling that obliged the local unit of Kuwait’s Zain to pay a $187 million tax Bangladesh bill related to the acquisition of a rival operator from Chairman: Mr. Sahjahan Mahmud Egypt’s Orascom Telecom in 2007. Iraq’s tax authority [Bangladesh Telecommunication Regulatory has claimed from Zain Iraq, the country’s biggest mobile Commission (BTRC)] operator by subscribers, capital gains tax worth $187 million from its $1.2 billion purchase of Iraqna. A bank The Bangladesh Telecommunication Regulatory account freeze on an amount equivalent to the tax bill Commission (BTRC) has released draft guidelines was imposed. Unusually, the government has tried to regarding ‘Telecom Value Added Services, 2016’. The levy capital gains on Zain Iraq as the asset buyer, rather Commission has also launched public consultations than on the seller, Egypt’s Orascom Telecom, which was related to these telecom VAS guidelines. Interested later renamed Global Telecom. “The court of appeal has parties can submit their comments and opinions related issued a decision about the case on March 30 to uphold to the draft guidelines at the BTRC website. the decision of the primary court that had ruled not to (April 24, 2016) telecompaper.com accept [Zain Iraq’s] claim,” a bourse statement from Zain, the majority shareholder in Zain Iraq, said on Thursday. Bangladesh’s second largest mobile operator by “The company has a right to appeal the decision at the subscribers, Banglalink, has signed an infrastructure Cassation Court within 30 days, and the company will sharing agreement with Summit Communications, under offer an appeal in the coming days,” the statement said. which Summit will lease fi ber capacity to Banglalink on (March 31, 2016) gulfnews.com certain domestic routes and in exchange Banglalink will lease fi ber capacity to Summit on other routes. Banglalink said in a press release that the arrangement will strengthen its network by providing fi ber redundancy Jordan Chairman of the Board of Commissioners/ in certain areas and improve network service availability CEO: Eng. Ghazi Al-Jobor for Banglalink subscribers, while Summit will be able to [Telecommunication Regulatory Commission offer more transmission bandwidth to other telecom (TRC)] operators using Banglalink fi ber in specifi c areas. The government of Jordan endorsed a set of incentives (April 15, 2016) telegeography.com to boost growth in the ICT sector, which contributes some 12 per cent to the country’s income. Under the decision, services related to software development, Iraq mobile apps, website portals, outsourcing, digital Chairman & CEO: Dr Safaa Al-Ddin Rabee content and electronic games, information technology [Communication & Media Commission (CMC)] training and e-learning will be exempted from sales tax and customs duties. Goods and services necessary Telecoms watchdog the Communication and Media for ICT services will also be subject to a zero sales tax Commission (CMC) has revived a complaint against rate. Income tax rates on such services will be reduced mobile operator Zain involving the unauthorized sale of to 4 per cent. “These incentives will help trigger growth
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SAMENA TRENDS _ APRIL 2016 in the ICT sector and help turn Jordan into an ICT hub,” Minister of Information and Communications Morocco Director General: M. Azdine El Technology Majd Shweikeh said in a statement. The MountassirBillah move, the minister said, came after thorough studies [Agence Nationale de Reglementation des and discussions with stakeholders and the private sector. Telecommunications (ANRT)] “These incentives will help reduce costs and enable the A lawsuit has been fi led against Moroccan telecoms attraction of investors into the sector, which will help in regulator the National Agency of Telecommunications jobs generation,” the minister added. The ICT sector’s Regulation (ANRT) following its decision to block over- revenues dropped by 14 per cent in 2014 compared to the-top (OTT) VoIP services – such as Skype, Viber and 2013, down to JD546 million, according to fi gures by WhatsApp – in January, with the fi rst hearing in the case the ICT Association of Jordan (int@j). The decline was scheduled for April 21. The unidentifi ed plaintiff lodged attributed to several local and external factors including the case in an administrative court in Oujda. The ANRT lack of incentives in previous years to boost the sector. justifi ed its decision to block the OTT VoIP services by In October 2015, the government announced plans for saying that the foreign entities who manage them ‘did launching a strategy that would function as a roadmap not have the telecommunications licenses necessary to make Jordan a regional ICT hub in 2016. The strategy, to operate in the country’ and thus ‘unjustifi ably steal which is reinitiating the REACH initiative that Jordan potential revenue from domestic companies’. The fi rst launched in 1999 will detail action plans, projects plaintiff’s representative Mourad Zibouh, however, said: and measures required to “genuinely turn the Kingdom ‘The ANRT does not intend to protect the market, but into an ICT hub in the region”. The 2016-2025 REACH only the interest of the largest operator, [Maroc Telecom], initiative will work on fi nding practical solutions to which plays the role of a monopoly … The agency’s challenges facing the sector. The strategy focuses on the decision protects a single actor, while discriminating development of human resources, facilitating access to against others.’ (April 12, 2016) Morocco World News fi nance and enhancing infrastructure to create jobs. (April 10, 2016) The Jordan Times Nepal Chairman: Mr. Digambar Jha Lebanon [ N e p a l T e l e c o m m u n i c a t i o n A u t h o r i t y ( N T A ) ] Secretary of the Board: Mr. Amine Moukheiber [Telecommunication Regulatory Authority (TRA)] Nepal Telecom (NT) has revealed plans to introduce 4G Telecommunication Minister Boutros Harb inaugurated LTE mobile services in its next fi scal year which begins in new switchboards in north Lebanon’s Batroun district July. The fi rm has sought approval for the launch from as part of a fi ber-optic network. While touring the the regulator, the Nepal Telecommunications Authority area, Harb said he aims to place Lebanon at the top in (NTA), but is still awaiting a response. The NT’s Managing terms of Internet bandwidth. “This is the fi rst stage of Director Buddhi Prasad Acharya said: ‘It has been more implementing the 2020 project,” Harb said from Kfar than a year since we requested the NTA to allow us to Abida village. The project will “transfer the Lebanese launch the 4G service. We will kick start the expansion as from the [era of slow Internet] to a more developed one soon as we get the approval.’ NT said in September 2014 that would put Lebanon at the forefront of countries that it was considering using LTE technology to replace operating an advanced Internet and mobile networks.” all its existing networks – GSM, CDMA, W-CDMA, Harb claimed that the average user only needs about 2 WiMAX and fi xed line – for the provision of broadband Mbps, but that the planned project will increase capacity data services. It announced in January this year that – to 84 Mbps. The world’s fastest peak Internet speed is in tandem with its 4G rollout – it plans to expand its 135.7 Mbps in Singapore, according to a report from 3G services nationwide and phase out its 2G networks Akamai, an Internet content delivery company. Harb completely. (April 22, 2016) The Kathmandu Post was accompanied by the head of the state telecoms company Ogero, Abdel Moneim Youssef. Last month, Harb announced that the fi ber-optic network is Oman functioning and has been extended to large institutions. Executive President: Dr. Hamed Al-Rawahi When Harb became minister in 2014, the country’s [Telecommunication Regulatory Authority fi ber-optic backbone connecting major switchboards (TRA)] to each other and large institutions was already largely Oman’s Ministry of Transport and Communications complete. However, work was reportedly stopped at has reportedly approved plans to license a third full the new minister’s initiative. Harb said that the current service telecoms provider, in a bid to bring down tariffs installation of fi ber optics is part of the 2020 strategy and improve service quality for end-users, Gulf News he launched in July of last year. According to that plan, writes. The move is aimed at increasing competition in fi ber-optic networks are to be installed in Lebanon the sector, which is currently home to just two fi xed line progressively over fi ve years, with the goal of connecting and mobile network operators, majority state-owned the entire country by 2020. (March 29, 2016) zawya.com Oman Telecommunications Company (Omantel) and Ooredoo Oman, in which Qatari incumbent Ooredoo holds a 55% stake. No further details have been made public yet, the report adds. In a separate development, the Telecommunications Regulatory Authority (TRA)
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SAMENA TRENDS _ APRIL 2016 has approved the Access and Interconnection (A&I) market. “The interconnection of networks is critical Regulation, which aims to promote competition and to the development of competition as it enables one remove barriers to market entry, as well as to increase operator or service provider to reach subscribers on high speed broadband coverage, particularly in rural another operator’s network. As such, the authority areas. The rules state that A&I shall be provided on an considers that all public telecom licensees should be equal and non-discriminatory basis to all requesting subject to the obligation to interconnect their respective parties and wholesale customers, writes the Muscat networks to ensure end-to-end connectivity,” TRA said. Daily. ‘The interconnection of networks is critical to the This also holds true for access services. “Requiring an development of competition as it enables one operator operator that is in a position of dominance in a relevant or service provider to reach subscribers on another market to offer access to its network can help to reduce operator’s network. As such, the TRA considers that market entry barriers. This is because investing in some all public telecom licensees should be subject to the network facilities may be very costly or very difficult to obligation to interconnect their respective networks to undertake. The duplication of costs also means that it ensure end-to-end connectivity,’ the legislation states. becomes commercially unviable from an economic The providing party shall be free to negotiate reasonable point of view. As a result, not requiring access may commercial terms and conditions with a requesting limit the emergence of competition in retail markets,” party, provided that they are not contrary to the interests stated the authority. In order to check abuse by non- of beneficiaries or to the provisions of the regulation. dominant or dominant players, the regulation imposes The TRA first invited stakeholders, interested parties and strict penalties that range from RO10,000 to RO100,000. the public to comment on its draft A&I Regulation back In addition, a penalty of not less than RO1,000 shall be in April 2014. (April 20, 2016) telegeography.com imposed for each day the violation continues beyond the date on which penalty is imposed. In all cases, the The Telecom Regulatory Authority (TRA) has passed a penalty shall be doubled for recurrence of the violation. comprehensive legislation on ‘Access and Interconnection (April 19, 2016) zawya.com Regulation’ (A&I) which will open up the market for more competition. The regulation establishes a set of binding Ministry of Telecommunication has approved the principles and procedures aimed at regulating all A&I license for a third telecom provider, after the sector services in the sultanate. The law, issued on April 13, is set faced sweeping criticisms over high prices due to lack to increase competition and remove unnecessary market of competition. No details have been made public yet, entry barriers, as well as boost coverage and broadband but the competition boost will likely lower prices for services, focusing in particular on high-speed broadband consumers. “Telecommunication services prices are and extending coverage to rural areas. The regulation high in Oman compared with the other Gulf states, will work on the principles that Interconnection between particularly mobile services,” said Dawood Al Mayasi, the all public telecommunications networks shall ensure vice-president of the Competition and Tariff Department any-to-any communications and connectivity between at the Telecommunication Regulatory Authority (TRA). beneficiaries; A&I services shall be provided on an equal He attributed the high prices to the lack of competing and non-discriminatory basis to all requesting parties telecom providers over the past ten years. “A new and wholesale customers; and provision of high quality, telecom operator will bring the prices down as well innovative and ubiquitous telecommunications services as it increases the quality of the telecom services,” Al at a reasonable cost shall be facilitated. Under the law, Mayasi said. The TRA said it had encountered difficulties all licensees are obligated to provide Interconnection in policing telecom providers, singling out Omantel, Services in accordance with the provisions of the a national company, and Ooredoo an Omani-Qatari regulation. “All Interconnection Agreements must company. Consumers have long complained over the facilitate end-to-end connectivity by ensuring that high prices of telecom providers. Ahmad Al Beloushi, a any public telecommunications licensee is able to private sector employee, told Gulf News that the telecom terminate a call or other public telecommunications providers should at least provide good mobile coverage service on any public telecommunications network,” in all areas of Muscat. Another consumer, Mohammad Al the law states. The law also obligates to provide access Ansari, said that he pays more to get decent broadband to certain physical infrastructure and other facilities. service but still faces intermittent service disruptions. “I “A public telecommunications licensee shall, upon have no problem to pay more but at least I have the reasonable and valid request, be obligated to negotiate right to get decent services,” he said. Oman’s telecom and provide a requesting party with access in respect sector has witnessed a rapid growth of 6.8 per cent of the following facilities over which it has ownership, during the first quarter of 2016 and generated total unless the authority determines, based on a justifiable revenue of 201.6 million riyal, compared to 188.7 million request by the providing party, that the provision of such riyal during the same period in 2015, according to TRA access is not technically or economically feasible,” states figures. (April 18, 2016) world.einnews.com the rule. It further stated that the providing party shall be free to negotiate reasonable commercial terms and With a view of boosting bilateral cooperation, Dr. conditions with a requesting party, provided that these Hamad bin Salem Al Rawahi, executive president of the terms and conditions are not contrary to the interests of Telecommunications Regulatory Authority (TRA), Oman, beneficiaries or otherwise contrary to the provisions of welcomed a Polish delegation headed by Magdalena GAJ, this regulation. The authority during the draft proposal president of the Office of Electronic Communications of the regulation had stated that the development and of the Republic of Poland on Monday. The official implementation of an effective A&I regime is central visit to the TRA Head Office is in continuation of the to promoting competition in the telecommunications ongoing cooperation between the two organizations
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SAMENA TRENDS _ APRIL 2016 for executing an MoU signed in the year 2013 that aims (2009)” is aimed to further safeguard the consumer rights to exchange expertise, strengthen cooperation in areas and interests. After the amendments in the regulation it of telecommunications and posts in the two friendly is expected that, now telecom consumers can approach countries, including boosting cooperation for SME telecom operators for protection from unwanted and projects and sharing of viewpoints in facilitating future fraudulent communication and operators are required investment opportunities in the telecom sectors in both to facilitate these consumers under these regulations. countries. A number of issues will be discussed during (April 14, 2016) propakistani.pk a two-day workshop being held for the same purpose, where experts will exchange achievements and updates Cellular mobile operators (CMOs) have been given one on telecommunications and posts in both organizations. month time by the telecom sector regulator to clarify Issues relating to data indicators and the performance of inconsistencies in their on-net and off-net tariffs, which the postal market will also be addressed during the visit, are leading towards unhealthy rivalry and price wars as well as sharing knowledge on practices adopted in the hence affecting the whole industry. PTA has delivered regulation of quality of service, operation of database a consultation paper emphasizing that though CMOs for porting of fixed and mobile numbers and the models have constructive gross margins, some are sustaining used in the two countries. Furthermore, the two sides losses. PTA has the power to adjust the prices of also reviewed their experiences in the field of consumer telecom services through Pakistan Telecommunication protection, customer complaints and procedures to Re-organization Act. Discernment between on-net and resolve them. As part of her official visit to the Sultanate, off-net tariffs which errands on-net calls forms a cult Magdalena GAJ also visited a number of relevant local behavior whereby relevant users mace into a specific institutions. (April 5, 2016) world.einnews.com network to take benefit of lesser on-net call price. CMOs contest on prices and provide low tariff to appeal users. Low prices are combined with numerous call packages, Pakistan 17 is the minimum number of packages being offered by Chairman: Dr. Syed Ismail Shah Warid Telecom whereas almost 153 packages are being [Pakistan Telecommunication Authority (PTA)] presented by China Mobile Pakistan (Zong). PTA has also been given the recommendation of fixing a price floor which would basically curb the capacity of promotional Pakistan Telecommunications Authority (PTA) has offers being presented by CMOs. Experts are of the view amended the provisions of Telecommunication that setting of price floor will not be useful as price Consumer Protection Regulations (2009) to further differs among operators. Though it might be probable protect consumer interests. Regulations are aimed at for operators to agree on a definite price level among providing a better mechanism with regard to launch of themselves. Hassan Azhar, an expert, witnessed that commercial practices or telecommunication promotional because of the extreme unhealthy competition, telecom schemes by operators. According to new law, operators revenues have dropped in last few years and is also now have to inform PTA at least 10 working ahead of ensuing in subscribers assembling, mounting grey launching any new commercial schemes. The operators trafficking, divesting of fixed line from its due share are now limited to offer incentives like air time etc rather and low revenues for Long Distance International (LDI) than lucky draws for cars, gold or cash etc. Masking of operators. If steps are taken to level the on-net and numbers, which was being used by illegal marketers, off-net tariff or to slender the disparity, it would be and auto opt in schemes have been disallowed constructive for entire industry in shape of less unhealthy according to the new regulation. PTA may alter, restrict, competition within CMOs and abolition of anti- suspend or impose sanction on any commercial activity competitive behavior with fixed line operators. Currently or telecommunication service promotional scheme Pakistan has some of the lowermost mobile call charges if deemed necessary and operator will be responsible in the world and the affordability of services has backed to provide title and key features of such activities to to remarkable subscribers progress. Conversely this has PTA. Each operator will be responsible to provide an also caused lower profits, calling circles, endorsing grey undertaking that the commercial practice and telecom trafficking and anti-competitive behavior of CMOs by promotional schemes are in compliance with the divesting the fixed line operators of their due share. In Act, Rules, Regulations and all other laws of Pakistan. Pakistan, cellular operators are proposing belligerent Operators are allowed to offer incentives in shape of limitless on-net calls and greater number of promotions service related benefit, free or additional services and packages i.e. Zong offering 158, Telenor 92 and Ufone discounts on services or features Operator, as per new 55 packages. Moreover retributions generation of CMOs regulations, will be responsible to provide a complete has wilted in past couple of years due to aggressive details to PTA about the promotion, including type of the advertising campaigns and reduced charges provided incentives allocated to be distributed to the qualifying by CMOs. (April 7, 2016) phoneworld.com.pk consumers, parameters/benchmarks for determining winners and details of mechanism, place and date for Pakistan Telecommunication Authority is all set to give selection of qualifying consumers. Furthermore, under its verdict on Warid-Mobilink merger by end of this the new regulation, an undertaking regarding inclusion month or early next month. According to officials, the of key features of the offered telecom promotional Authority is processing the application of the proposed schemes in print media which shall be published in at least merger. “We are communicating with stakeholders one national and local-language newspaper each as well including telecom players and government departments as on the licensee’s, website in a clear, transparent and as part of merger approval,” a senior official said. He nondiscriminatory manner. PTA has said that amended said apart from seeing regulatory aspects, the authority version of “Telecom Consumers Protection Regulations will also take measures to protect consumers. We are
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SAMENA TRENDS _ APRIL 2016 evaluating from regulator point of view, and of course under Israeli control (Area C), and the requirement by we will also ensure that the consumer interest is Israel that Palestinian operators go through an Israeli- protected during and after the process, he said. Offi cial registered company to access international links. While said as it was the fi rst merger in telecom history, PTA international practices commend competition in the was trying to evaluate from every possible angle. “There sector, the second Palestinian mobile operator Wataniya is no precedence of such mergers and we are doing has not been able to start its operations in Gaza due everything fi rst time. If some objection comes up comes to Israeli restrictions on accessing spectrum and during the public hearing, which will be held soon, or importing material. As a result, Gaza remains a mobile- some stakeholders raise any valid point in written form, monopoly market structure. Despite these constraints, we would bind the merging companies to address that,” the Palestinian authorities have adopted liberal licensing offi cial said, adding that merger is likely to get approval regime for Internet Service Providers (ISPs). There are from the authority, by the end of this month or early more than 20 ISPs that have rights to invest directly in next month. PTA started processing the application after broadband infrastructure and operate them. Few other the approval of Competition Commission of Pakistan. countries in MENA have adopted this approach. “The Last month, CCP approved the merger directing merged liberal approach could signifi cantly improve Internet company to comply with the remedies imposed by the access, if existing bilateral and regulatory constraints are commission. After CCP’s approval, both the companies alleviated,” said Carlo Rossotto, Lead ICT policy specialist also need approval from Security Exchange Commission at the World Bank. “The potential economic returns will of Pakistan, Pakistan Telecommunication Authority and be signifi cant if the regulatory obstacles are addressed.” State Bank of Pakistan. PTA has already told both the The independent regulatory Authority has yet to be companies to clear all outstanding dues. Wateen and established as stipulated by the 2009 law. At present, LinkDotNet had reportedly defaulted on some payments the Ministry of Telecommunications and Information which have to be settled down. According to Mobilink, Technology remains the sole regulator, responsible for all it will fi rst acquire 100 percent of Warid’s shares in pricing, licensing and operational issues. The Palestinian consideration for the Dhabi Group shareholders Authority has taken steps to liberalize the market, but acquiring approximately 15% of the shares of Mobilink. there are signifi cant concerns of market dominance and After getting approvals both the companies are expected high pricing regime. (April 1, 2016) cellular-news.com to start merging their operations by August 2016. (April 5, 2016) nation.com.pk Qatar President: Mr. Mohammed bin Ali Palestine Al Mannai [ C o m m u n i c a t i o n s R e g u l a t o r y A u t h o r i t y ( C R A ) ] The Communications Regulatory Authority (CRA) is fi nalizing a Quality of Service (QoS) Policy to outline the A new World Bank report estimates the Palestinian mobile objectives and approach to the regulation of the quality of sector revenue losses at more than USD1 billion in the last communication services provided to the public in Qatar. three years. The Palestinian Authority’s fi scal losses for Once fi nalized, the Policy will become a key part of CRA’s the same period are as high as US$184 million, counting mandate to set performance standards for quality of non-collected VAT alone, up to 3% of the GDP. The service and to monitor compliance with these standards report highlights what it says shows that the Palestinian by service providers. The Policy includes clearly defi ned telecom sector is suffering from several constraints, parameters, targets, reporting procedures, compliance claiming heavy toll on the economy, the consumer, requirements and enforcements procedures. CRA and the Palestinian Authority. The sector was hindered regulates communications and postal sectors, as well as by years of delay in mobile broadband, presence of access to digital media and advanced, innovative, and unauthorized Israeli operators in the Palestinian market, reliable communication services provided by operators restrictions on importing equipment, and absence of an in these sectors. “The main objective of QoS Policy is independent regulator. “With unemployment rate at 26%, to introduce greater clarity, transparency, predictability, the Palestinian telecom sector has the potential to boost equality and certainty with respect to QoS regulation for the economy and create job opportunities,” said Steen the benefi t of both the customers and the providers,” Lau Jorgensen, World Bank Country Director for West said Amel Salam Al-Hanawi, CRA’s Consumer Affairs Bank and Gaza. “In order for that to happen, Palestinian Department Manager. “The Policy is based on a forward operators should be able to access similar resources as looking approach. For example, it states that the key their neighbors.” In late 2015, an agreement with Israel performance indicators (KPIs) should be resilient to has been reached to release 3G spectrum to the West address both present and future customer needs and at Bank. However, the Palestinian operators remain at a the same time enable competition,” she added. Service competitive disadvantage because Israeli operators Providers will be required to measure their quality have 3G and 4G capabilities and are able to attract of services against the KPIs set in the QoS Regulation higher value customers. Unauthorized Israeli operators and report to CRA. However, CRA shall also conduct its are capturing more than 20% of the West Bank market in independent measurement surveys ensure compliance. volume. Restrictive measures have signifi cantly affected Full details of the Policy will be made available to the the development of the Palestinian telecommunications. general public through the CRA website. The Consumer These include the Israeli restrictions on the import Affairs department within CRA is responsible for of equipment for telecom and ICT companies, the monitoring quality of communications services in Qatar inability to operate in more than 60% of the West Bank in addition to receiving and investigating telecom
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SAMENA TRENDS _ APRIL 2016 consumer complaints. Consumers can contact CRA training is helping over 33,000 Saudis of both genders. using a variety of communication channels: the 24/7 Fahad Al-Otaibi, spokesman of the TVTC, noted that hotline number 103, email at [email protected]. the training for mobile repairing is the most in demand qa , using the CRA’s online complaint form, by tweeting followed by sales and customer service. This sector is directly to @CRAqatar, or by visiting CRA’s headquarters expected to provide job opportunities to 20,000 Saudis. at Al Nasr Tower B, Corniche. (April 18, 2016) cra.gov.qa The training is open to unemployed Saudis above 18 years of age. (April 18, 2016) zawya.com Ooredoo Qatar says that the first stages of its next- generation 5G network will be deployed by 2018, The Ministry of Labor intends to nationalize the telecom leading to 5G services being commercially available by industry in the long run, not just the mobile phone sales, 2020. Mr. Waleed Al Sayed, CEO of Ooredoo Qatar, told maintenance and accessories sector, ensuring that no reporters on the sidelines of Ooredoo Group’s AGM: telecom job is held by an expatriate worker. Ministry ‘We are already working to build the first R&D Centre spokesman Khaled bin Abdulaziz Abalkhail pointed and also a research laboratory with Huawei, which is out that the decision to Saudize the above mentioned going to be open for professionals soon. We are ready sectors came into effect on March 10, giving employers to implement 5G in Qatar as soon as it is standardized and expatriate workers six months to correct their status. and available commercially. The building is ready, and it After the end of three months, the entire mobile phone will take another one year to be operational as we are in industry has to recruit 50 percent Saudi employees the process of putting in place the needful equipment by June 6. And starting Sept. 3, all employees have to and support services. So the challenge is how fast the be Saudi, he said. The spokesman said that all parties [standardization] can be brought forward to launch 5G.’ involved have agreed on the total nationalization of the Once 5G networks are rolled out in Qatar, peak mobile telecom sector and its professions including jobs in cell internet speeds are expected to jump to between phone shops, accounting, marketing and clerical work. 1Gbps and 10Gbps. In November 215 that Ooredoo Mega shops with multiple departments are required Group and Sweden’s Ericsson signed a Memorandum to have a separate section for mobile phone sales, of Understanding (MoU) for 5G development ‘with the maintenance and accessories where Saudi workers are ambition of developing use cases, requirements and exclusively allowed to work, he said. He emphasized deployment scenarios for 5G technologies’. that inspection rounds, in collaboration with other law (March 30, 2016) The Peninsula enforcement agencies, are being conducted to make sure that establishments abide by the decision that targets telecommunications, in particular. The decision Saudi Arabia aims at creating job opportunities for Saudi nationals Governor, Deputy Chairman of the BoD: willing to join the telecom industry. It also seeks to limit Dr. Abdulaziz Bin Salem Al Ruwais security, social and economic threats and curb cover-up [Communication & Information Technology business. According to the MoL, enforcement will cover C o m m i s s i o n ( C I TC ) ] all regions and establishments across the Kingdom. The Ministry of Social Affairs will provide financial (April 10, 2016) zawya.com support for the Saudization of the Kingdom’s telecommunications sector, according to the Minister of Social Affairs. Minister Majed Al-Qasabi said the Sri Lanka ministry would work as a team with other ministries Director General: Mr. Sunil S. Sirisena and government agencies to promote the employment [Telecommunication Regulatory Commission of Saudi citizens in the sector. The Saudi Credit and (TRC)] Savings Bank announced recently that it would finance projects by young male and female Saudi entrepreneurs Sri Lanka Telecom (SLT), the leading ICT solutions in the telecommunications sector up to the value of provider in the country, announced that it has completed SR200,000. Al-Qasabi said driving Saudi employment the main aims of its ‘i-Sri Lanka’ broadband project with in the sector was part of a comprehensive strategy to Chinese technology partners ZTE and Huawei, in an employ Saudi youth and increase their participation in official closing ceremony for the project held at Waters’ occupations and businesses that are in high demand. Edge on Monday, March 28. In 2005, SLT embarked on The Minister said the decision to restrict work in the a massive project to upgrade its legacy network to a sale and maintenance of mobile telephones and their Next Generation Network (NGN). This was expedited accessories to Saudi men and women would be an when in the year 2011; the company launched its i-Sri important step toward Saudization of other sectors. The Lanka Program under the main vision “Broadening Ministry of Labor announced in March that it will ban Horizons.” Through this project, the company sought foreign workers from selling and maintaining mobile to bridge the digital divide in the country and ensure phones and accessories for them. Stores selling mobile that all citizens in all parts of Sri Lanka has access to communications devices will have to ensure that at least consistent, uninterrupted high speed internet that 50 percent of staff doing such work are Saudi citizens is on par with international standards. Through this in three months’ time, the ministry said. Six months program, the company sought to provide broadband from March, the required ratio will rise to 100 percent. connectivity at the speed of up to 20 Mbps speed to It is anticipated that 60% of mobile phone, its accessory 90% of its customers to ensure that customers are able and maintenance shops are cover-up businesses in to experience broadband connectivity as never before. which a Saudi provides a floor for expatriates to invest. In December 2015, SLT completed all phases of the i-Sri In this context the Technical and Vocational Training Lanka program by adding over 4,500 new access nodes Corporation noted that its mobile sales and repairing across the island which comprised an investment that
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SAMENA TRENDS _ APRIL 2016 exceeded Rs. 13 billion. Through the i-Sri Lanka program, broadband connectivity is now available in almost all Turkey Acting Chairman: Dr. Omer Fatih Sayan the cities of the country. Further, with the marking of [Information & Communication Technologies this important milestone, SLT will be able to provide 1.3 Authority (BTK)] million more broadband connections at data rates of up to 20 Mbps and will support Sri Lanka’s first Fiber-to- Russia’s Alfa Telecom has indicated that it is willing to the-Home (FTTH) network which is set to deliver data sell its stake in Turkcell for USD2.7 billion in a move speeds of 100 Mbps. With this, SLT will be able to serve which could finally resolve a long running legal dispute. 70,000 households through FTTH by the end of this year In a statement to the stock exchange, Alfa Telecom said 2016. With the completion of this project, Sri Lanka has that it would consider selling its 13.22 percent indirect become one of the most connected countries in South stake in Turkcell to Turkey’s Çukurova and Ziraat Bank. Asia. This network transformation is the precursor for Alfa Telecom has long been in a dispute with Çukurova unleashing many new and unique products and services and was ordered by a court two years ago to sell a across the areas of voice, data and video to SLT’s separate 13.8 percent stake to Çukurova for USD1.6 customers, inspired by the company’s vision to connect billion. That was financed by a loan from Ziraat Bank, all Sri Lankans seamlessly with world class information, which has not been repaid. Alfa’s announcement is seen communication and entertainment services across the as possibly putting pressure on Çukurova to finally settle country. Mr. John Lee, CEO of ZTE Corporation and Mr. the dispute, but comes ahead of anther ruling from the Wang Shunli, CEO of Huawei Technologies who are UK-based arbitration court, which might go against Alfa SLT’s partners for the i-Sri Lanka program, together with Telecom.(April 7, 2016) cellular-news.com representatives from both the companies were present at the occasion. SLT Chairman, Mr. P.G. Kumarasinghe Sirisena, SLT Group CEO, Mr. Dileepa Wijesundera, the United Arab Emirates Board of Directors of SLT as well as other SLT officers was Director General: Hamad Obaid Al also present at the event. (April 3, 2016) colombopage.com Mansoori [Telecommunication Regulatory Authority (TRA)] Tunisia The UAE’s two mobile networks have both blocked the President: Prof. Hichem Besbes latest version of the Snapchat app for violating local [National Telecommunication Commission VoIP regulations. In a recent upgrade, Snapchat added (INTT)] a feature that allows users to have voice and video conversations with other users. However, in doing so, it Upon receiving their 4G spectrum licenses on March has run foul of the UAE’s ban on VoIP based services that 30, 2016, Tunisia’s three mobile network operators are not explicitly authorized by the two mobile networks, Tunisie Telecom (TT), Ooredoo Tunisia and Orange Du and Etisalat. In a statement, Du said, “Companies Tunisia, have all begun marketing their 4G LTE services wishing to provide [VoIP] services should coordinate to consumers. All three cellcos’ websites claim potential with the UAE’s licensed service providers in this regard.” peak 4G LTE download/upload mobile data speeds of (April 11, 2016) cellular-news.com 150Mbps/50Mbps (CAT4 standard), whilst all three websites also advertise pre-paid and post-paid 4G The UAE’s telecoms regulator has ordered the country’s packages for handset users alongside 4G USB modem two mobile network operators to cut the cost of packages, with each also displaying instructions for roaming overseas within the Gulf Cooperation Council customers to swap incompatible older SIM cards for (GCC) countries. The GCC is made up of Saudi Arabia, 4G LTE SIMs free of charge. TT’s website is highlighting Kuwait, the United Arab Emirates, Qatar, Bahrain, that 4G data services are available at the same rates as and Oman. In average, the roaming prices for UAE 3G, whilst TT’s marketing also boasts of its fiber network customers who travel to GCC countries should fall connectivity for boosting the performance of its new 4G by an average of 42% starting from April 1, 2016. radio network. TT’s website states that 4G LTE coverage Commenting on this move, Hamad Obaid Al Mansoori, is currently available in areas of Greater Tunis (Tunis/ the UAE TRA’s Director General stated: “The TRA was Ariana/Ben Arous/Mannouba), Bizerte, Sousse and actively represented in the Roaming Working Group Sfax. Orange Tunisia’s website coverage map shows a meetings to study the regulation of roaming prices in widespread 4G LTE coverage footprint of at least 20 cities the GCC countries. The implementation of the price across the country including Tunis, Ben Arous, Bizerte, caps by all mobile operators in the GCC will represent a Beja, Jendouba, El Kef, Siliana, Kairouan, Sousee, Mahdia, great achievement for GCC countries to be among the Kasserine, Sidi Bouzid, Sfax, Gafsa, Tozeur, Gabes, Djerba, pioneers in implementing such regulations.” In 2010, the Mednine and Tataouine. Ooredoo Tunisia’s website says GCC approved recommendations for setting a maximum that it is ‘committed to ensuring a broad 4G coverage cap on wholesale and retail mobile roaming tariffs within in Tunisia’ with its new 800MHz/1800MHz LTE network, GCC member states. The Regulation took full effect on and its online marketing also touts value added services February 1, 2012. On June 9, 2015, the GCC approved including 4G Mobile TV. (April 4, 2016) telegeography.com recommendations setting price caps for calls made to other GCC, calls made within the visited GCC country, calls received while roaming within the GCC, SMS sent while roaming in the GCC and mobile data usage while roaming in the GCC. (April 5, 2016) cellular-news.com
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SAMENA TRENDS _ APRIL 2016
REGULATORY ACTIVITIES BEYOND THE SAMENA REGION
Australia that involve Telstra in the construction Australia’s competition and maintenance of the NBN, including authority is concerned the HFC delivery agreement announced about the extent of earlier today,” the ACCC said. According to Telstra’s role in the rollout ACCC chairman Rod Sims, the watchdog of the country’s national broadband has raised a number of concerns with network and is looking into a series of Telstra and NBN, including the fact that proposals from the incumbent telco and Telstra could gain an advantage by having NBN designed to mitigate any threat to access to better information about the Regulatory competition. The Australian Competition network than other retail operators, and Consumer Commission (ACCC) said it or if it were permitted to use the NBN Updates is keen to ensure that Telstra does not gain infrastructure before its rivals. The ACCC an advantage over rival retail operators has held talks with both companies and as a result of its technical input into the received certain commitments from them NBN. The ACCC’s announcement came addressing its concerns. “We are looking shortly after Telstra revealed its latest deal at the parties’ proposals carefully to with NBN; it has signed a contract worth consider to what extent these proposals A$1.6 billion to upgrade the hybrid fiber address our concerns,” Sims said. “It coaxial (HFC) infrastructure it agreed to is important that Telstra doesn’t get a transfer to NBN over a year ago. The deal head-start selling retail services over the covers planning, design, construction NBN just because its technical expertise and construction management services is being used in the construction and and the works are expected to run until maintenance of the NBN,” he added. 2020, Telstra said. It includes geographic (April 12, 2016) totaltele.com areas within the Telstra HFC network footprint in Sydney, Melbourne, Brisbane, Brazil Gold Coast, Perth and Adelaide, the The Ministry of telco added. “While recognizing that Communications in Brazil using Telstra’s technical expertise will has published guidelines contribute to a quicker rollout of the to be followed by the NBN, the ACCC remains concerned that National Telecommunications Agency competition issues arise from agreements
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(ANATEL) when reviewing the current regulatory model Ferkessedougou in the central north. Phase two of the for telecoms services. The Ministry recommends that project got underway in July 2013, focusing on a 650km ‘public authorities should promote access to broadband link connecting Grand-Bassam and Abidjan in the services at affordable costs and levels’. Objectives south-east with the north-eastern town of Bouna. The should include the expansion of transport networks second phase was carried out by Chinese state owned and fiber-to-the-home (FTTH) infrastructure in urban gear maker China International Telecommunication areas, in keeping with the Ministries National Broadband Construction Corporation (CITCC). (April 22, 2016) Abidjan.net Program (PNBL) which was published in November 2014. In addition, the Ministry says mobile broadband Following months of speculation, the Regulatory technology should be used to improve internet coverage Authority for Telecommunications in Cote d’Ivoire in smaller towns and for public sector applications such (Autorite de Regulation des Telecommunications de as education and health. Ministers also want ANATEL CI, ARTCI) has revoked the GSM licenses held by local to review the conditions for Fixed Switched Telephone firms Comium Cote d’Ivoire, GreenN Cote d’Ivoire and Services (STFC) concessions to introduce more flexibility the now-defunct Niamoutie Telecom, which briefly for licensees to provide converged services and thereby traded as Cafe Mobile. The decision was imposed on encourage greater investment by operators. March 29, and the watchdog has given the operational (April 13, 2016) Telesemana players 30 days to deactivate their respective networks. Local media reports have also noted that Warid Telecom Cameroon – which was awarded a license in July 2006 but never Cameroon’s cellcos have signed a actually launched – has also had its concession stripped, contract with Chinese equipment supplier although its imminent expiration renders the issue a moot Huawei to implement mobile number point. The watchdog seeks to reconfigure the mobile portability (MNP) services in the country. sector as a four-player market, via the introduction of the agreement was signed on April 19 in the country’s a new operator ‘capable of taking an active part in the capital, Yaounde, and will see Huawei launch the service development of the Ivorian telecoms market’, alongside within seven months, by November 2016. Total funds of main players Orange, MTN and Moov. As such, in XAF1.5 billion (US$2.6 million) will reportedly be invested September 2015 the watchdog invited Expressions of in launching MNP by the local mobile subsidiaries Interest (EoI) for a new telecoms concession, which it said of MTN, Orange and Viettel. In July 2015 Cameroon’s would ‘revitalize the market’. The ARTCI has promised an telecoms regulator, the Agence de Regulation des ‘optimal redistribution of spectrum resources’, while the Telecommunications (ART), awarded a contract to successful bidder will be expected to deploy networks Huawei for the supply, installation and operation of a capable of supporting mobile and fixed telephony, data centralized database to manage the introduction of transmission and internet access. The regulator noted that the pre-selection of operators will be primarily MNP. (April 22, 2016) Business In ‘based on reputation’. (April 4, 2016) telegeography.com Costa Rica The Administrative Court has rejected Cyprus a lawsuit filed by Tigo Star against Privatization of Cypriot state-owned sector regulator the Superintendency of national telecoms company Cyta has Telecommunications (SUTEL) regarding its been put on hold until January 2017, decision in April 2015 to block the merger between Tigo after opposition parties joined forces in and Telecable. The court has ordered Tigo to pay costs. blocking the new government bill designed to privatize Tigo agreed to purchase rival cable TV and broadband the telco. AKEL MP Giorgos Loukaides told parliament provider Telecable in December 2014. SUTEL refused to that the legislation proposed not only the sale of the approve the acquisition, however, on the grounds that most profitable government organization, but also the the merger would reduce competition in the pay-TV added burden of laid-off Cyta employees – who were currently being paid without cost to the government market in some areas of the country. (April 12, 2016) TeleSemana – on the public sector. The bill failed to secure the necessary majority in the 56-seat house, with 32 votes Cote d’Ivoire in favor, 21 against and one absence. A debt bailout deal The government has started work on the between Cyprus and international creditors requires third phase of its national broadband the privatization of Cypriot institutions including Cyta. network (NBN), according to Abidjan.net, Under the terms of the bailout, Cyprus has to raise which cites a statement from the National EUR1.4 billion (USD1.6 billion) by selling off state-owned Agency for Universal Service in Telecommunications companies in sectors including telecoms, energy and (L’Agence Nationale du Service Universel des ports. In December 2015 the government approved Telecommunications/TIC, ANSUT). The deployment legislation to privatize Cyta; the bill aimed to preserve will be carried out by French firm Bouygues, working salaries, job security, advancement prospects and the alongside SagemCom and Polyconseil, and is expected collective workers’ agreement, while new legislation also to conclude in 2017. On completion the NBN will span defines powers of the state to intervene in the company around 7,000km, it says. The project started in earnest in for national security reasons. (April 15, 2016) cyprus.com 2012 when Chinese vendor Huawei rolled out a 1,400km cable linking the south-western port city of San Pedro to
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opinion is only advice to the European Commission, Czech Republic which negotiated the agreement with the US. The Article In a press release on its website, the 31 Committee, consisting of representatives of the EU Czech Telecommunication Office states, must also give its opinion on the agreement, and (Cesky telekomunikacni urad, CTU) has most of the members are thought to support the Privacy confirmed the receipt of applications Shield. The Article 31 Committee is expected to take a of interest from the country’s three existing mobile decision on the Privacy Shield in May. The Commission operators for its upcoming auction of 4G-suitable aims to take a final decision in June, after which the 1800MHz and 2600MHz spectrum. At the close of agreement would come into effect immediately. EU the March 22 deadline, bidding documents had been Justice Commissioner Vera Jourova said in a statement received from O2 Czech Republic, Vodafone Czech that the Commission would incorporate the feedback Republic and T-Mobile Czech Republic, it said. Based from privacy regulators before taking a decision. She on its initial examination, the CTU stated that ‘all the said the Commission also plans a practical “users guide” applications received fulfill the formal requirements on how citizens can obtain redress in cases of possible set out in Section 8.2.1 of the announcement of tender privacy violations and that she counts on the privacy and contain the required attachments’. The regulator regulators to help enforce the new agreement. will now formally evaluate each application ahead of the likely start date for the auction proper on 27 April (April 13, 2016) telecompaper.com 2016. In total, the CTU is auctioning off seven blocks of frequency. The initial reserve price for the frequencies is France CZK734 million (US$30.33 million) per allocated block. French telecoms regulator the (April 1, 2016) telegeography.com Authority of Regulation for Electronic Communications and Posts (ARCEP) has European Union awarded a temporary license to domestic The EU’s privacy regulators have expressed fixed wireless operator Infosat Telecom for time division concerns about the proposed Privacy duplex LTE (TD-LTE) trials in the 2600MHz frequency Shield agreement on data transfers to the band. The company will be authorized to conduct tests US, saying it doesn’t do enough to prevent using 20MHz of spectrum in the 2570MHz-2620MHz mass, indiscriminate surveillance of EU residents. The band in the commune of Canteleu – located in the Seine- so-called Article 29 Working Group issued its opinion Maritime department in the Haute-Normandie region in on the proposal and whether it lives up to EU data northwestern France – for six months from April 1. Last protection standards. The regulators did concede that month ARCEP offered interested parties the opportunity the Privacy Shield offered “significant improvements” on to stage tests using the 2570MHz-2620MHz (2.6GHz) the previous Safe Harbor agreement, which was struck and 3.5GHz bands, ahead of the spectrum’s planned down last year by the EU Court of Justice for failure to distribution – which will occur within the next two years. adhere to EU data protection law. However, the Privacy (April 19, 2016) telegeography.com Shield suffers from an “overall lack of clarity”, the group said. Key concepts such as limiting access to personal Regulatory Authority for Electronic Communications data, data retention, automated processing and onward and Posts (ARCEP) has published additional details on transfers beyond the US are not sufficiently defined or the call for applications for the allocation of available incoherent with definitions in EU law. The main issue 3G/4G spectrum in the French overseas territories is whether the Privacy Shield does enough to prevent (DOM) of Guadeloupe, Guyana, Reunion, Martinique, mass surveillance; something the regulators have long Mayotte, Saint-Martin and Saint-Barthelemy. ARCEP held must be subject to strict limits in a democratic will auction spectrum in the 800MHz and 2600MHz society, in order to uphold fundamental rights in the bands (yet unallocated overseas), along with additional EU. A forthcoming ruling by the EU Court of Justice is frequencies in the 900MHz, 1800MHz and 2100MHz expected to provide more clarity on the legal limits of bands. All interested parties are invited to submit mass surveillance under EU law, the regulators noted, their applications by May 10, 2016. The regulator and this may impact the validity of the Privacy Shield. will award up to four licenses ‘per zone’, each with Furthermore, the new redress mechanism for EU citizens specific deployment obligations; ARCEP said that the proposed in the Privacy Shield may be too complex authorizations in Guyana will come with obligations to and ineffective. The national data protection authorities improve mobile coverage of the two national highways could be a better point of contact than the proposed (NR1 and NR2). The watchdog clarified that the call for Privacy Shield ombudsperson. The latter is expected to applications is aimed at granting new authorizations in deal with complaints from Europeans about how their the 800MHz and 2600MHz bands, and operators wishing data has been used by US law enforcement. However, to apply for lifting the technology restrictions in the the EU regulators are concerned the ombudsperson 900MHz, 1800MHz and 2600MHz bands need to apply lacks sufficient independence and powers to meet its separately. ARCEP added that frequencies previously aims. The group also noted that the Privacy Shield may awarded to Guadeloupe Telephone Mobile, Martinique need revisions to bring its in line with the upcoming new Telephone Mobile and Guyane Telephone Mobile (in directive and regulation on data protection in the EU. the 900MHz, 1800MHz and 2,100MHz bands) will be The regulation is expected to be approved this week by reallocated to new operators in the forthcoming auction. the European Parliament, giving EU members two years In regards to Guadeloupe and Martinique, the regulator then to implement the changes. The Article 29 group’s disclosed that the available spectrum was as follows:
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2×30MHz (800MHz), 2×40MHz (1800MHz), 2×39.3MHz broadband provider Xilan, and hardware firm Spitted- (2100MHZ) and 2×70MHz (2600MHz). Back in July 2013 Desktop Systems – have been granted permission to ARCEP unveiled a ‘broad public consultation’ covering trial the 2.6GHz band so far this month. Both firms have mobile frequency assignments in the 700MHz, 800MHz, been given five months to test the spectrum. 900MHz, 1800MHz, 2100MHz and 2600MHz spectrum (April 4, 2016) telegeography.com bands, with a view to facilitating the introduction of LTE. The process was successfully concluded in February French telecoms operators Orange Group and Bouygues 2014, and a formal tender was expected to be introduced Telecom have announced that they have ended in 1H14, only for the regulator to miss its self-imposed negotiations regarding Orange’s potential takeover of its target. (April 18, 2016) telegeography.com smaller rival. ‘After in-depth discussions, [Orange’s] Board of Directors has concluded that an agreement regarding The government has increased its direct voting rights a possible consolidation with Bouygues Telecom has not in telecoms company Orange Group to 21.14% under been reached’, a press release said. Orange added that it the Florange Act, which awarded double voting rights will pursue the deployment of its five-year strategic plan, to long-term shareholders from 2016. The government’s dubbed ‘Essentials 2020’ (introduced in 2015), which 13.44% direct equity stake in the operator remained the focuses on investment in very high-speed broadband same. Public investment group Bpifrance Participations networks while providing an ‘unmatched’ customer (formerly Fonds Strategique d’Investissement) had experience. For its part, Bouygues pledged to continue 9.60% of the equity (11.60% previously) and 8.35% of its standalone strategy, which it said already resulted in the voting rights, thus giving the government combined a return to growth in sales and EBITDA in 2015. Orange total holding of 23.04% of capital and 29.49% of voting and Bouygues entered into a confidentiality agreement rights. Group employees, meanwhile, held 5.08% of the in January 2016, marking the beginning of official capital. The remainder (69.87%) was in free float on negotiations in a deal that would reduce the number of the Euronext Paris market and on the New York Stock mobile network operators in France from four to three. Exchange, with no other shareholder owning a 5%-plus The potential transaction valued Bouygues at roughly stake. (April 11, 2016) Les Echos EUR10 billion (US$11.3 billion). (April 4, 2016) telegeography.com
France has successfully completed its migration process Georgia to all-HD (MPEG-4) digital terrestrial signal (DTT) Telecoms regulator GNCC has selected transmission on 5 April, the Local reports. The move will Mediafon Datapro as the new progressively vacate 2×30MHz of 700MHz spectrum – administrator for the country’s number the so-called ‘second digital dividend’ – for ultra-high portability central database. The winner speed broadband services between April 2016 and beat two other participants in the tender, Mediapro June 2019. The National Agency of Frequencies (ANFR) Georgia (the existing provider) and Portireba.ge. The revealed that as of April 1, 2016 Bouygues Telecom has contest stipulated that bidders must have provided already installed its first three 700MHz antennas in Paris, administrative services for a number portability central while Free Mobile built three base transceiver stations database in at least two countries and must provide (BTS) in Tarbes. From April 6, 2016, cellcos will be their services for an annual fee of less than EUR500,000 authorized to provide services in the 700MHz band in a (US$565,000). Mediafon Datapro succeeded with a bid total of 2,374 communes. All four of the country’s mobile of EUR275,000, beating an offer of EUR450,000 from network operators (Orange, Bouygues, Numericable- Mediapro Georgia. The mobile number portability SFR and Free Mobile) secured 700MHz spectrum in the (MNP) became available for Georgian users on February auction held by the Regulatory Authority for Electronic 15, 2011, while fixed line customers were able to port Communications and Posts (Autorite de Regulation des their numbers from December 1, 2011.
Communications Electroniques et des Postes, Arcep) in (April 22, 2016) telegeography.com late October 2015. The regulator revealed that the price of the six 5MHz blocks on offer reached EUR466 million (US$528.8 million) apiece, with Orange France and Free Germany Mobile securing two blocks each in the aforementioned Vodafone blasted Germany’s decision band, while Bouygues Telecom and Numericable-SFR to permit Deutsche Telekom to deploy walked away with one each. (April 6, 2016) telegeography.com vectoring, warning that it puts the country on the wrong side of progress. “In Vodafone’s view, the German regulator is wrong to The telecoms regulator the Authority of Regulation support short-term incremental upgrades to Germany’s for Electronic Communications and Posts (ARCEP) has outdated copper telephone networks rather than offered interested parties the opportunity to stage tests support investment in the future-proof fibre networks using the 2570MHz-2620MHz (2.6GHz) and 3400MHz- that Germany needs,” the U.K.-based telco said, in 3600MHz (3.5GHz) bands, ahead of the spectrum’s a public policy statement. Local telco regulator, the planned distribution – which will occur within the next Bundesnetzagentur, on Thursday issued a final decision two years. ARCEP says the frequencies are suitable for allowing the German incumbent to upgrade its copper- wireless in the local loop (WiLL, 3.5GHz) and time division based VDSL network using vectoring, paving the way for LTE (TD-LTE, 2.6GHz) usage, but can also be used to fixed broadband at speeds of up to 100 Mbps. Deutsche support the burgeoning Internet of Things (IoT) sector. Telekom is required to offer a virtual unbundled local The watchdog notes that two companies – corporate
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SAMENA TRENDS _ APRIL 2016 access (VULA) product to rival operators in areas where million. Confusing the matter, however, are confl icting alternative wholesale networks are not available. The reports from government offi cials close to the NICIL that matter will now pass to the European Commission, Datang has claimed that the full price was US$25 million, which has one month to raise any concerns before the rather than the US$30 million fi gure. Further muddying Bundesnetzagentur’s ruling comes into force. Vodafone the waters, earlier this year the Chairman of NICIL’s board warned that pushing ahead with vectoring will leave of directors told press that Datang had refused to pay German consumers and businesses “at a technological the outstanding amount unless it is given more seats on standstill,” putting them at a disadvantage to those in GTT’s board of directors. Its 20% stake only entitles it to EU member states that have rolled out gigabit-ready a single seat on GTT’s board, but Datang has reportedly networks. Vodafone urged the Commission to look asserted that it must inherit all the privileges that the closely at the Bundesnetzagentur’s vectoring decision. government enjoyed whilst it was in possession of the “The proposal will put Germany on the wrong side of shares. (April 22, 2016) telegeography.com progress,” the company warned. (April 8, 2016) totaltele.com Hong Kong Following a three-month in-depth investigation, the The Offi ce of the Communications European Commission (EC) has recommended that Authority (OFCA) has announced that the German telecoms regulator, the Federal Network it will not be opening an investigation Agency (FNA), amend or withdraw its proposal for fi xed into the proposed acquisition of New termination rates (FTRs), claiming that the planned fees World Telecom by triple-play fi ber provider Hong Kong would be over 200% higher than FTRs in the vast majority Broadband Network (HKBN). The deal, fi rst announced in of other member states which follow the recommended February, will see HKBN paying around HKD650 million methodology. According to the EC, the FNA proposes (US$84 million) to buy New World Telecom, which offers to set FTRs for 19 alternative operators based on the a range of fi xed line and broadband services in both methodology previously applied to fi xed line incumbent the business and consumer segments. In a statement Deutsche Telekom (DT), which is contrary to EU OFCA said that it ‘was of the view that the Acquisition regulatory framework. The EC states that these costs are was unlikely to have the effect of substantially lessening ultimately included in call prices paid by consumers and competition in the relevant telecommunications service businesses, and has requested the German watchdog to markets in Hong Kong, and, accordingly, decided not to withdraw its proposal or to amend it so that the FTRs for commence an investigation into the Acquisition’. HKBN the 19 operators are in line with EU telecom rules. If the previously announced that the buyout will be fi nanced FNA does not decide to amend its draft proposal, it has by a fi ve-year loan facility of up to HKD700 million, to provide a valid justifi cation.(April 5, 2016) telegeography.com underwritten by JPMorgan Chase Bank. (April 4, 2016) telegeography.com Guyana The Guyanese government has Hungary announced that the fi nal outstanding Hungary this week published detailed USD5 million payment due to the state as rules about its upcoming auction of part of the sale of its 20% stake in fi xed spectrum in the 3.4 GHz and 3.8 GHz line monopoly holder Guyana Telephone and Telegraph bands, giving prospective bidders until Company (GTT) has already been paid, although it is 2 May to submit their applications. Hungary’s telco still investigating the circumstances of the transaction, watchdog, the National Media and Infocommunications Kaeiteur News writes. In 2012 the government agreed Authority (NMIA), is auctioning 16 2x5-MHz lots of to sell its shares in GTT to Chinese fi rm Datang Telecom FDD spectrum in the 3.4 GHz band and 40 5-MHz lots Technology and Industry Group for USD30 million, with of TDD spectrum in the 3.8-GHz band. Each lot of FDD US$25 million paid up front and the remaining USD5 spectrum carries a reserve price of 108 million forints million to be paid out over the subsequent two years. Until (€347,263), while each lot of TDD spectrum has a HUF54 recently it was understood that Datang had not yet paid million reserve. “The sale of frequency bands becoming the USD5 million and earlier this year Minister of State available upon the expiry of their respective licenses as Joseph Harmon travelled to China, with a representative well as those not used at present, is expected to step of the National Industrial and Commercial Investment up competition in the Hungarian market, accelerate the Limited (NICIL) – the government agency responsible for expansion of penetration…and promote the provision managing the state’s shares and securities – to carry out of high-capacity, innovative, high-quality electronic negotiations regarding the outstanding payment. Mr. communications services,” the NMIA said in a statement. Harmon’s report has been presented to the cabinet and The regulator did not say when it aims to start the the NICIL, which will consider the fi ndings before making auction, but said the frequencies will be available to the report public. In the meantime, however, Minister use in July, and that licenses will be valid until 2034. of Natural Resources, Raphael Trotman, was quoted as Hungary is home to four mobile operators: Deutsche saying in a post-cabinet press briefi ng: ‘What I can say is Telekom-owned Magyar Telekom, Telenor, Vodafone that Harmon has been able to retrieve some documents and newcomer Digi, which won spectrum in September which tell a different story … that being that the money 2014. According to the most recent NMIA fi gures, was paid and we are trying to track down to who, published in June 2014, show Magyar Telekom leading how, where and when.’ For its part, Datang has never the market with a 46.8% share, followed by Telenor and previously indicated that it had already paid the USD5 Vodafone on 30.5% and 22.7% respectively. The fi gures
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SAMENA TRENDS _ APRIL 2016 were published before Digi won its frequencies. a payment for spectrum rights, whether upfront in full (April 13, 2016) totaltele.com or in installments, has been exempted from service tax. The clarification follows the introduction of a provision which made all government services, including auctions, India taxable. In the case of spectrum auctions, the new tax India’s Department of Telecommunications would have amounted to retrospective taxation, as it (DoT) is negotiating with the defense would also have been applicable on deferred payments ministry to free up 15 MHz of frequencies for airwaves bought before April 1. earmarked for 3G services in time for this (April 15, 2016) the Economic Times summer’s spectrum auction. The spectrum – in the 2.1 GHz band – could be put up for auction in July, if the Ministry of Defense is able to make it available in time, Telenor is considering exiting the Indian telecoms the Economic Times quoted an unnamed source as market due to its lack of scale, particularly in the 3G saying on Friday. The process will involve the exchange and 4G sectors, it emerged this week. The Norwegian of the same amount of spectrum in the 1900 MHz band operator is looking for a deal that values its Indian for the defense ministry’s airwaves, the paper said. The business at US$1.6 billion-$1.8 billion (€1.4 billion-€1.6 spectrum swap engendered much debate ahead of billion), the Economic Times reported on Monday, citing last year’s frequency auction in India. The state pushed two sources close to the situation. However, the paper ahead with plans to sell off 5 MHz of 2.1-GHz spectrum suggested that it might be able to raise $1 billion at best, in March 2015, despite opposition from major telcos, its spectrum being its most saleable asset. While Telenor who were calling for the government to wait until it had holds some potentially valuable airwaves, its overall its hands on all the potential 3G frequencies. Those 5 lack of spectrum might trigger a decision to leave the MHz raised 101.15 billion rupees (€1.35 billion, at current market, one of the sources said; noting that the telco has exchange rates). For 2.1-GHz spectrum included in the thus far failed to failed to broker any spectrum trading upcoming auction, the Telecom Regulatory Authority of deals and has lost out to larger rivals when spectrum India (TRAI) has suggested a reserve price of INR37.47 has been available for sale. Indeed, the operator – then billion per MHz, nationwide. The auction as a whole – known locally as Uninor – walked away from last year’s which covers multiple spectrum bands – could raise as auction of frequencies in the 800-MHz, 900-MHz, 1800- much as INR5.36 trillion for government coffers, the MHz and 2.1-GHz bands with nothing. Meanwhile, big Economic Times noted. (April 22, 2016) totaltele.com spender Idea Cellular spent more than 300 billion rupees (€4.4 billion) to secure airwaves in three of the four bands and mobile market leader Bharti Airtel racked up More 1.8GHz airwaves are expected to be made available a bill of INR291 billion. Telenor claimed a mobile market for India’s spectrum auction scheduled for July after the share of just 5.05% at the end of January, according band is harmonized across the country. The first phase to the Telecom Regulatory Authority of India (TRAI). It of the 1.8GHz spectrum harmonization, which will be offers services in six circles, its customer base totalling completed next month and will free up about 202MHz 51.4 million. By contrast, Bharti Airtel had 245.8 million across 22 service areas, comes after the country’s mobile subscribers at the same date, giving it a market cabinet approved allocating spectrum to an exclusive share of just over 24.15%. Bharti has operations in all 22 Defense Band and freeing additional spectrum in the circles and late last week secured additional spectrum band for commercial use in telecoms and broadcasting, from rival Aircel to enable it to offer LTE services in all the Economic Times reported. The telecoms regulator is circles. It will pay 35 billion rupees (€462 million) for 20 expected to sharply increase the amount of spectrum in MHz of 2.3-GHz frequencies in eight telecoms circles. the next auction, which will likely include spectrum in the Bharti, like its competitors, is preparing for the launch highly efficient 700MHz band for the first time and six of Reliance Jio Infocomm, which is rolling out pan- other bands. The availability of the 700MHz band across Indian 4G services. Telenor’s presence in the mobile the country’s 22 service areas would significant boost data market is restricted by its lack of spectrum, but it is the amount the government could raise in the auction, rolling out LTE using a very narrow frequency range – 1.4 which some estimate could reach a staggering INR5.37 MHz of its 1800-MHz spectrum allocation – in Varanasi, trillion ($80.5 billion). The Telecom Regulatory Authority Uttar Pradesh. According to local press reports, it aims of India (TRAI) in January set a base price for the 4G band to replicate that model across its circles later this year. at a huge INR115 billion ($1.7 billion) per megahertz. But It will be difficult for Telenor to compete against deep- India’s top four operators – Bharti Airtel, Vodafone India, pocketed rivals in future auctions, the Economic Times Idea Cellular and Reliance Communications — have quoted one of its sources as saying. “They have run out indicated they may avoid the 700MHz auction, given of options in India,” s/he said. There has been no official their stretched balance sheets and need to beef up their comment from Telenor. (April 11, 2016) totaltele.com 4G networks with newcomer Reliance Jio soon to launch 4G nationwide. Last year’s auction of about 470MHz of spectrum in four bands generated a record INR1.1 India is close to approving the entry of virtual operators trillion for the government. (April 18, 2016) mobileworldlive.com into its mobile sector, it emerged this week. The Telecom Commission, which operates under the Department of Telecommunications (DoT), has approved a The Indian government has clarified that telecom recommendation issued by the Telecom Regulatory service providers will not have to pay service tax on Authority of India (TRAI) to license mobile virtual network payments for spectrum purchased before April 1. The operators (MVNOs), the Hindustan Times reported. The Central Board of Excise and Customs (CBEC) stated that newspaper quoted an official source at the Commission
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SAMENA TRENDS _ APRIL 2016 as saying that the state will create a new license for virtual operators. The new rules still require the approval Kazakhstan More than 72,000 users switched of India’s telecom minister, but are expected to be networks in the first three months after implemented “within a few weeks,” the source said. As the launch of mobile number portability it stands, some non-telco companies in India already (MNP) in Kazakhstan at the start of this have a foot in the telecoms market. As the Economic year. According to a report which cites figures from Times explained on Thursday, retailer Future Group has the Ministry for Investment and Development (MID), a partnership with Tata Teleservices that enables it to the biggest winner was third-placed operator Tele2, offer customers free airtime with their shopping. The which lost 9,459 users but added 24,926 for a net gain firm has about 5 million users of that scheme and sees of 15,467 subscribers. Next was smallest operator Altel a big opportunity to extend it by obtaining an MVNO which lost 8,123 users and added 19,996, leading to a license; it expects to sign up 20 million customers, CEO net gain of 11,873 customers. The two larger providers, Kishore Biyani told the paper. And there are a number K’cell and KaR-Tel (Beeline), both saw net subscriber of other big retail groups in the country that could also losses, with the latter down by a net 641 users and K’cell benefit from the new MVNO licenses. Under the new losing 36,859 customers and gaining 10,160 for a net rules, virtual licensees will be able to offer any telecoms loss of 26,699. Kazakhstan was home to an estimated service permitted under the recently-introduced unified 27.9 million mobile subscribers at the end of 2015. license regime that is facilitated by its host operator, the (April 15, 2016) Profit.kz Hindustan Times said. They will also be able to work with multiple host operators. The report claims that MVNOs are expected to help struggling network operators Figures from Kazakhstan’s Statistics Agency show that reduce their marketing and sales costs, as well as sharing revenue growth for the country’s telecoms markets some operational expenses. This could be particularly is slowing markedly, and has even gone into decline helpful to state-owned players BSNL and MTNL, which in early 2016. Communications services brought in are keen to reduce costs, but they would need to obtain revenue of KZT684 billion (US$2.021 billion) in 2015, up unified licenses, it said. (March 31, 2016) totaltele.com on the 2014 figure of KZT673 billion registered in 2014 and KZT643 billion the year before. Figures for January 2016 show revenues of KZT34.2 billion, down from Italy KZT38.9 billion twelve months earlier, with voice services Italian Prime Minister Matteo Renzi bringing in KZT17.4 billion and data KZT16.8 billion. has reiterated his government’s goal of Statistics for February show that for the first time sales “broadband everywhere” at an event in of data services outweighed those for voice, standing at Rome attended by the chief executives KZT16.7 billion and KZT16.3 billion respectively. (April 15, of operators Wind, Vodafone Italia and utility giant 2016) telegeography.com Enel. Renzi said the first tenders to build a high-speed broadband network in digital divide areas that have been unable to attract private investment (known as clusters Kenya C and D) will be launched on April 29. The PM said the According to the Communications government’s strategy is to go beyond the objectives Authority of Kenya, the East African of the digital agenda for Europe and bring high-speed nation ended 2015 with a total of 37.716 broadband at speeds of 30 Mbps to the entire territory by million mobile subscribers, an increase 2020 as well as 50 Mbps broadband to half of the Italian of 12.1% from 33.633 million twelve months earlier. population. “For the first time we have a strategic path,” Safaricom accounted for the majority of total wireless said Renzi, adding that all pending rollouts would be customers (24.409 million, giving it a market share unblocked and an initial EUR 2.2 billion had already been of 64.7%), followed by Airtel Kenya with 7.237 million allocated to digital divide areas. The event also saw Enel and Telkom Kenya (Orange) with 4.663 million wireless reveal further details of its EUR 2.5 billion plan to help users at end-December 2015. The market’s only MVNO, bring ultrafast broadband to around 7.5 million homes Finserve Africa (Equitel), had signed up a total of in large 224 Italian cities (clusters A and B) via its newly- 1.407 million customers by the end of 2015, up by an created Enel Open Fiber venture. Enel CEO Francesco impressive 29.6% quarter-on-quarter. Finserve Africa, a Starace said work would begin in the cities of Perugia, subsidiary of regional bank Equity Group, was awarded Catania, Cagliari, Bari and Venice, to be followed in the one of three MVNO licenses by the regulator in April autumn by Florence, Genoa, Naples, Palermo and Padua. 2014 and launched services the following October. Thanks to a commercial agreement with Vodafone and Mobile data subscriptions rose from 16.339 million at Wind, fiber-optic services could be available as early as the end of 2014 to 23.795 million twelve months later, May in Perugia. The Enel CEO also reiterated that Enel with growth attributed to the increased affordability of Open Fiber will operate as a wholesale-only player and internet bundles offered by service providers, arising build infrastructure for other licensed operators. “We are from increasing competition. Safaricom accounted for non-exclusive and not in competition with others,” said 63.0% of total mobile data subscriptions, followed by Starace, adding that negotiations with Telecom Italia Airtel with 18.0%, Orange with 14.0% and newcomer remain ongoing and “it would be fantastic if Telecom Finserve Africa (Equitel) with 5.0%. As of 31 December wants to take part.” He added that financial partners for 2015 the Communications Authority of Kenya reported Enel Open Fiber would be selected “after the summer”. 111,354 fiber-optic broadband subscribers (up from According to recent press reports, Telecom Italia is 81,243 twelve months previously), 19,507 fixed-wireless considering cutting up to 15,000 jobs due to competition data customers (17,537), 3,732 xDSL connections (down from Enel. (April 7, 2016) telecompaper.com
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SAMENA TRENDS _ APRIL 2016 from 14,512 at end-2014) and 489 satellite broadband of operation and extend access to 95 per cent of the users (712). Kenya ended the period under review with a population within three years. The consortium of 11 total of 85,496 fi xed telephony lines in service, a decrease local fi rms plans to invest a total $1.5 billion to roll out a of 52.5% from 179,990 at the end of 2014. 3G-only network in 900MHz and 2.1GHz bands. Viettel (April 8, 2016) telegeography.com said it aims to launch 4G services on the 1.8GHz band in the future, subject to additional licensing. Viettel was one of seven foreign bidders to express an interest in a Latvia tender, which opened at the end of last year. The county’s Plans to merge mobile provider Latvijas telecoms sector was opened up to foreign competition Mobilais Telefons (LMT) and fi xed line in late 2013, when Telenor and Ooredoo won mobile operator Lattelecom – both of which are licenses. They run mobile networks alongside state- partly owned by the Latvian state and owned incumbent MPT, which operates as a joint Sweden’s Telia Company (previously TeliaSonera) – have venture with Japan’s KDDI and Sumitomo. Myanmar’s been rejected by the Latvian government. The Swedish mobile connections increased 150 per cent over the past group submitted the proposals in November last year, year to 37.5 million, according to GSMA Intelligence. stating that a merger would improve effi ciency and the “We enter Myanmar when the country is forecast quality of service offered to customers. No reason was to witness accelerated economic growth, enhanced given for the rejection, although the anti-trust regulator also through increased foreign direct investment,” had previously voiced concerns that combining the said Le Dang Dung (pictured below), deputy general two companies would infl uence service quality and director of Viettel Group. “Advancing the country’s prices. Going forward, Minister of the Economy Arvils telecoms infrastructure will help us drive a surge in Aseradens was cited as saying that the privatization mobile and Smartphone subscription penetration, to agency will be contracting an independent consultant to achieve the government’s target of reaching 90 per review the telecoms market and suggest future courses cent of the population by 2020. We believe that the of action. (April 21, 2016) lsm.lv role of telecommunications is fundamental in driving Myanmar’s next phase of economic growth.” He said Malaysia with the combined strengths of Viettel’s experience Malaysia-based Axiata Group has entered across markets, and the long-standing experience of the Nepal telecoms market with the its domestic partners, the consortium will cater to the acquisition of the nation’s largest mobile demand for affordable and high-quality data services in operator Ncell. Axiata has paid $1.36 the country. “Viettel has played a key role in transforming billion for an effective 80% stake in Ncell from previous Vietnam’s telecommunications landscape over the past owners TeliaSonera UTA Holdings and Reynolds Holdings’ several decades. As we apply that experience through SEA Telecom Investments. Local partner Sunivera Capital our operations in Vietnam and nine global markets, our Ventures will retain a 20% direct stake in Ncell, as vision continues to be to extend connectivity to entire required under Nepalese law. Axiata group CEO Dato’ populations, providing unrestricted access across rural Sri Jamaludin Ibrahim commented that Ncell represents and urban geographies,” Dung said. Viettel is run by the a perfect expansion opportunity for the group. “One key military and claims to serve nearly 80 million subscribers ambition we have is to effectively offer high-speed data in ten countries in Asia, Africa and the Americas. connectivity, and exciting products and services to meet (April 18, 2016) mobileworldlive.com the demands of a young and maturing Nepali market,” he said. “There are tremendous opportunities for us to Netherland grow with the nation for the longer term. As a Group The Dutch fi xed telephony market grew respected for its commitment to corporate responsibility by 1.2 percent during 2015 to end the and governance, we will play an integral role with the year with 6.3 million lines. The market Nepali government and civil society, and contribute continues to expand thanks to growth towards the socioeconomic development of the country in digital lines, which rose by 4.6 percent during 2015, and her people.” Axiata is already exploring synergies helping to offset a fi fth fewer PSTN/ISDN lines. While including opportunities to serve Nepal’s overseas foreign the number of lines is still growing, revenues from the workers segment, which number around 1 million in services are falling, due to decreasing prices and less Malaysia alone. The operator plans to launch special usage of fi xed lines. Fixed telephony revenues dropped products for Ncell customers offering discounted prices by 3 percent in 2015 to EUR 1.22 billion, including EUR for Ncell customers roaming within the Ncell footprint. 300 million in the fourth quarter of 2015. It is expected Axiata Group said its combined footprint in South and that these trends to continue in the coming years and Southeast Asia now covers a total population of over 2 forecasts a compound annual growth rate of 0.5 percent billion. (April 11, 2016) telecomasia.net in connections and -2.1 percent in revenues over the period 2016-2020. The consumers subscribing to VoIP Myanmar with DSL and fi ber broadband will compensate for the Vietnam’s operator Viettel, which last decrease in traditional telephony as well as the slow month was named the foreign partner for decline in cable phone lines. Especially KPN still has a local consortium awarded Myanmar’s signifi cant room to sell to its DSL broadband customers, fourth mobile license, aims to build as around 30 percent don’t have VoIP yet. As KPN’s price out nationwide network coverage within the fi rst year level for DSL/fi ber VoIP is effectively zero compared
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SAMENA TRENDS _ APRIL 2016 to EUR 12-21 per month for traditional telephony, the help telecoms providers to deliver effective and efficient revenues from fixed telephony will continue to decline. services to rural areas who are struggling with lack of Digital telephone lines in the Netherlands reached 5.55 power and access. Speaking on theme of the conference, million on 31 December 2015, driven by 4.2 percent “Renewable Energy in the National Energy Mix”, he said: annual growth in VoIP users on DSL networks and a “Renewal and alternative energy sources have been in 29.4 percent increase in VoIP subscribers on fiber. There the forefront of proffering solutions to the challenges are now almost 2.1 million VoIP subscribers on DSL and and crisis of global energy demands. It is one easy way almost 800,000 over fiber. Over the same period, cable of achieving cheap energy source and penetration. And networks lost 0.8 percent of VoIP subscribers, for a total this is not only about cost but also about its availability of almost 2.7 million lines. (April 8, 2016) telecompaper.com and sustainability. “No country can develop, especially the small scale industry without good sustainable and affordable energy source. Bringing solution to this New Zealand industry will go a long way into alleviating the problems New Zealand’s competition watchdog of unemployment and high cost of living.” Danbatta announced the start of a consultation who was conferred with the fellowship of the society into the non-pricing terms of Chorus’ (FRAES) for his commitment to supporting the adoption wholesale offer for access to its copper of renewal energy, added that private partnership network. The Commerce Commission published a would help the government to prioritize renewal consultation document designed to help it ascertain energy projects to drive the growth and development whether Chorus’ regulated unbundled bitstream access of the country. “Poor funding, manpower, technology (UBA) offer meets the needs of the end users. Specifically, base, energy, industrialization and lack of political will it is addressing the standard terms definition (STD) of the have all affected the implementation of renewal energy offer, which covers the technical features of the service projects,” NCC’s Vice-chairman/CEO had said. Earlier, Chorus provides, as well as the price. The Commission Engr. Umar B Bindir, the president of the 6th annual tackled the pricing issue last year, publishing its final conference and Secretary to the State Government, decision on the wholesale prices Chorus is allowed to Adamawa State, urged the members of the society to charge for UBA and unbundled copper local loop (UCLL) monitor global trends on renewal energy in order to gain in December. The UBA STD was set in 2007, before the insights on not only the technologies used but also the separation of Chorus from incumbent operator Spark, policies made. Bindir, who was also represented by Prof. then known as Telecom Corp. As a result, the non-price Raymond Akwule, said monitoring global trends will terms now need to be reviewed to ensure they remain fit help the society to contribute enormously to addressing for purpose in today’s market. “While the regulated UBA the energy problems of the nation. He encouraged service has evolved over time, we recognize that there the members of the society to look at global agencies remains some uncertainty over what Chorus is required which support societies like RAESON so that they can to provide,” said New Zealand’s telecom commissioner continue to promote research and innovation in order Stephen Gale, in a statement. “By clarifying the technical to solve pressing problems, particularly power problems features our aim is to ensure the regulated service bedeviling the country. (April 23, 2016) thisdaylive.com remains suitable for typical broadband customers, and allows Chorus to develop commercial variants for specific user groups,” he explained. Responses to the MTN is close to reaching agreement with Nigerian consultation are due by the end of the working day on authorities over the hefty fine it incurred last year, as May 5. The Commerce Commission aims to publish its evidenced by the fact that its interim CEO is preparing draft decision in August, open up the process for further to step down, according to press reports. Phuthuma comment the following month, and issue a final decision Nhleko, who took on the executive chairman role on a in November. (April 7, 2016) totaltele.com temporary basis after the resignation of then-CEO Sifiso Dabengwa in November, is making plans to leave his post next month, Bloomberg claimed, citing a source familiar Nigeria with the situation. That is a sign he is confident the fine The Executive Vice Chairman/Chief debacle will be resolved soon, the source said, since Executive Officer of the Nigerian Nhleko has pledged to retain his operational role until Communications Commission (NCC), he has come to an agreement with Nigeria’s attorney Prof. Umar Danbatta stated that renewal general. When he took on the task, Nhleko said he would energy offers the telecommunications industry a viable hold the executive chairman role for six months, a period path to delivering quality services. Addressing the 6th that is due to come to an end in early May. The Nigerian annual conference of the Renewable & Alternative Communications Commission (NCC) slapped MTN with Energy Society of Nigeria (RAESON) held at the National a US$5.2 billion fine in October for failing to disconnect Centre for Energy Research and Development, University unregistered SIM cards in accordance with its timetable. of Nigeria, Nsukka, Prof. Danbatta decried the inability After reported attempts to resolve the situation, group of the telecommunications industry to offer quality CEO Dabengwa tendered his resignation. The NCC later services at all times, saying that erratic power supply reduced the fine to $3.9 billion. There have been various has not only contributed to poor service delivery but rumors of a resolution over the past few months, but has also increased operational cost. Danbatta, who was MTN has repeatedly urged shareholders to exercise represented by NCC’s Director Technical Standards, Engr. caution when reacting to media reports on the subject. Fidelis Onah, said that RAESON is a critical stakeholder The telco issued a new, similar statement, this time in telecommunications since its contributions would explicitly denying that it has reached agreement with the
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SAMENA TRENDS _ APRIL 2016 regulator. “The company has noted, with concern, the analogue-to-digital TV switchover in April 2012, allowing speculation and false information in the media,” it said. cellcos to utilize their newly-won 800MHz frequencies, “MTN particularly cautions against reports purporting whilst in September that year ANACOM specified 480 that the company has agreed a resolution with the municipalities lacking mobile broadband connectivity, NCC on the fine,” the company added. “It is false as before subsequently assigning coverage obligations for no resolution has yet been reached. MTN continues to these municipalities to the three licensees (160 areas engage the authorities in Nigeria on this matter.” MTN each) the following year. However, certain restrictions reiterated that it is still engaging with various authorities on the 800MHz frequencies’ usage in border regions on the matter. (April 13, 2016) totaltele.com continued to apply, meaning that the full coverage obligation for the underserved list of municipalities was not enforced until last month’s notification (as per the Poland regulation of October 2011 referenced by ANACOM in its Two months after it announced the results website announcement). Details contained in an annex of its LTE auction, the Polish telecoms to the regulation indicate that restrictions on usage in regulator is still working on the allocation border areas in 2012-2015 were designed to prevent of spectrum due to the withdrawal of interference to broadcasting stations in Spain and license winner Netnet, but according to local press Morocco under the framework of previous International reports it is hopeful of resolving the situation in the Telecommunication Union (ITU) agreements, imposing next month or soon afterwards. Magdalena Gaj, head conditions including maximum permissible base station of Poland’s Office of Electronic Communications, known field strength at the border. Furthermore, ANACOM locally as UKE, told the Polish Press Agency that she is confirmed that a 50% discount on annual 800MHz keen to bring the process to a close as soon as possible spectrum fees – which had been granted for all three and make the frequencies won by Netnet commercially licensees – has now been retracted, due to the lifting of available. The regulator wants to make it happen by the all restrictions on the licensed frequencies’ usage. end of April or mid-May at the latest, Gaj said. Netnet (April 12, 2016) telegeography.com won one 5 MHz block of 800-MHz spectrum in last year’s auction, agreeing to pay 2.05 billion zloty (€484 million), but has since reneged on the deal. According Senegal to the Polish Press Agency report, under the auction The Ministry of Posts and guidelines, the aforementioned spectrum should be sold Telecommunications (MINPOSTEL) to the second-highest bidder in that block, which in this of Senegal has revealed it is looking case was T-Mobile. However, T-Mobile would prefer to to overhaul the country’s legislative swap frequencies with another winner, P4, which picked framework to reflect the new demands of ICT and up spectrum neighbouring T-Mo’s existing holdings. telecommunications in the 21st century. Malick Ndiaye, P4 is reportedly disinclined to trade, claiming that such chief of staff at MINPOSTEL, confirmed the plans on April a move would incur legal risks. Gaj said the regulator 19 during a workshop to discuss the development of the has a possible solution to the problem, but declined to SME sector in Senegal, a meeting set up by OPTIC, a comment further at this stage. (April 1, 2016) totaltele.com group representing professionals in this field. The official says that wok on updating the legal framework of the telecommunications sector is expected to start before Portugal the second half of this year, with the Senegalese News In a decision of April 7, 2016, Portuguese Agency (APS) quoting Ndiaye as saying it will ‘upgrade telecoms regulator ANACOM rejected the telecommunications and ICT sector to allow it to face full-service telco Nos’s appeal against the socio-economic, technological and legal changes the watchdog’s previous decision of 10 faced, [in the process] conducting an audit to take March 2016, which effectively brought into force the account of new issues that [may] arise’. In the period full gamut of 4G LTE service coverage obligations for 2005-2014, the Senegalese telecoms sector recorded all holders of 800MHz mobile licenses auctioned in an average growth of 10% in turnover year-on-year, and December 2011. The regulator said in a statement on today contributes 7% of the GDP of Senegal. its website that it saw no reason to suspend its decision, (April 21, 2016) telegeography.com and that to do so would be against the public interest. In the March decision, ANCOM officially notified the 800MHz concession holders – MEO, Vodafone and Nos South Korea – that a period of restrictions on commercial mobile South Korea’s three mobile network operations in the ‘digital dividend’ 4G frequency range operators – SK Telecom, KT Corp and had ended, thereby bringing into force the full network LG Uplus – have reportedly filed their coverage stipulations under the licensing conditions. applications to participate in the country’s Consequently, within six months from the date of upcoming spectrum auction. The Ministry of Science, ICT notification the operators must cover 50% of a specified and Future Planning (MSIP) confirmed the development, list of underserved municipalities (finalized under a noting in a statement: ‘The ministry will soon start decision of 22 August 2013), and within one year they a reviewing process of the applicants and begin the must cover 100% of the areas in question. Minimum bidding process later this month.’ A total of five blocks reference mobile data speeds must also be met in the in the 700MHz, 1800MHz, 2100MHz and 2.6GHz bands specified coverage areas (under terms finalized by are set to be offered up via an auction which is expected a decision of 3 March 2016). Portugal completed its to raise at least KRW2.6 trillion (US$2.3 billion) in total. (April 20, 2016) The Korea Herald
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SAMENA TRENDS _ APRIL 2016
SK Telecom, KT and LG Uplus will stand trial for violating should be available for other uses (including mobile Korea’s stringent mobile subsidy law. This is according broadband) from April 1, 2017. (April 19, 2016) telegeography.com to a Yonhap report late last week, which said that the Seoul Central District Prosecutor has also indicted several current and former board members who were Thailand in charge of sales at the three telcos when the offences Thailand’s military-led government has were committed. In late 2014, SK Telecom, KT and LG invoked Section 44 of the country’s Uplus were found to have offered illegal discounts on interim constitution to impose a schedule the then new iPhone 6. Under Korea’s Mobile Device and terms for re-auctioning the 900MHz Distribution Improvement (MDDI) Act – which came into technology-neutral spectrum license which Jas Mobile force in October 2014 – operators are not allowed to recently won but failed to pay for. The date for the new exceed the upper limit set by the Korea Communications auction is now set for May 27, 2016, under the order Commission (KCC). When the iPhone 6 launched, the which was published in the Royal Gazette and took upper limit was 300,000 won (€230). However, according effect on Tuesday. Jas is barred from the new auction to Yonhap, prosecutors suspect that SK Telecom, KT and but True Corp – the winner of the other 900MHz block in LG Uplus offered subsidies of KRW460,000, KRW560,000, December’s auction – can join, since the order requires and KRW413,000 respectively on the device. Each telco the contest to be open to all except for violators of was fined at the time, but it now appears they will stand the National Broadcasting & Telecommunications trial – the first time this has happened since the MDDI Commission (NBTC) rules. The starting price is set at Act came into force. The law permits fines of up to 3% of THB75.65 billion (US$2.16 billion), i.e. the winning bid annual sales. Individual retailers that break the rules can placed by Jas in December, while each bidder in the new auction must put up a guarantee of THB3.78 billion. also be fined. (April 12, 2016) totaltele.com Furthermore, the order stated that Advanced Info Service (AIS), which currently uses the unpaid-for 900MHz A decision by South Korea’s Fair Trade Commission’s spectrum block to serve 2G users, will be permitted to (FTC’s) on the proposed merger between SK Broadband, continue doing so until June 30, 2016 or until the NBTC a unit of the nation’s largest cellco by subscribers SK grants the license to the winner, whichever comes first Telecom (SKT), and cableco CJ HelloVision has been (in the event of AIS not winning the license). AIS had postponed. With the local press outlet noting that previously been scheduled to lose usage of the band on the FTC is now planning to reach a final decision on April 14. (April 13, 2016) The Bangkok Post the matter at a plenary meeting scheduled to be held towards the end of April, it adds that a final ruling on the mooted tie-up from the government is likely by late- Thailand may bring forward the re-auction of forfeited May at the earliest, after reviews by both the Ministry 4G spectrum to May, and has rejected mobile operator of Science, ICT & Future Planning (MSIP) and the Korea AIS’s offer to acquire the frequencies. According to a Communications Commission (KCC). Although the FTC report by the Bangkok Post on Friday, Deputy Prime was technically required to reach a decision on the deal Minister Wissanu Krea-ngam wants to begin the within 120 days (i.e. by April 1, 2016) as per the Fair Trade process as soon as possible, which could be in mid- Act, the report notes that the watchdog has made use May. The controversial section 44 of Thailand’s interim of a term allowing for supplementary data acquisition to constitution – which grants the government power to impose laws “for the benefit of reform in any field” – delay its ruling. (April 5, 2016) BusinessKorea could be invoked in order to speed things along, he said. The report also claimed that the regulator, the National Sweden Broadcasting and Telecommunications Commission Telecoms regulator PTS, has issued (NBTC), has rejected an offer from AIS to acquire the an invitation to market participants spectrum for 75.65 billion baht (€1.93 billion), equal to to comment on the auction rules and Jas Mobile’s winning bid in December’s 4G auction. The conditions for the upcoming sale of reason given was that the watchdog wants to give all mobile broadband licenses in the 700MHz band telcos the chance to purchase the frequencies. Thailand scheduled for late-2016. The watchdog has identified is scrambling to allocate the second of two 900-MHz 4G gaps in national coverage for voice and/or data licenses that were auctioned in December. The license (10Mbps) and has published map data to illustrate this; in question was won by Jas Mobile, but it forfeited the one 700MHz (2×10MHz) license will carry coverage spectrum after missing the March 21 payment deadline. obligations to serve these specific areas. Bidders for The NBTC initially planned to re-auction the airwaves this license must pledge investment of at least SEK200 on 24 June; however, it seems the government does not million (US$24.6 million), whilst maximum necessary want to wait that long. Unsurprisingly, Jas Mobile will investment is estimated at SEK300 million; in the event not be allowed to take part. (April 8, 2016) totaltele.com of a winning bid/pledge exceeding SEK300 million the excess amount will be taken as auction proceeds for the The five-member board of Thailand’s telecoms regulator state treasury. Minimum bids for the other four 700MHz has voted 3:2 against allowing True Corp to participate (2×5MHz each) spectrum blocks are set at SEK100 in the re-auction of 900MHz spectrum, scheduled for million, whilst a 2×20MHz spectrum cap is proposed to June 24 this year. True won one of two tech-neutral ensure there will be at least two licensees in the band. 900MHz licenses auctioned last December, whilst start- Market participants have until May 27 to respond. The up Jas Mobile won the other concession but failed to 700MHz band is currently used for terrestrial television, come up with the financing to pay for it. Previously, but the Swedish government has decided that the band
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SAMENA TRENDS _ APRIL 2016 the NBTC’s Secretary General Takorn Tantasit had said licensing competition in certain areas of the country. that True could be included in the re-auction for Jas’ Various licenses in this band are currently held by MMDS forfeited license. Despite the starting price being set Ukraine, an associate company of Rinat Akhmetov’ at the sky-high value of Jas’ winning bid of THB75.65 SCM Group, the parent of nationwide incumbent telco million (US$2.14 billion), the country’s largest cellco Ukrtelecom, and a recent Kiev court decision overruled AIS has expressed its interest. TelecomAsia writes that the watchdog in its attempts to block MMDS Ukraine AIS has also sent a letter to the NBTC claiming that it from renewing its concessions. (April 12, 2016) BizLiga could pay the THB75.65 billion asking price ‘in a couple of months’ once it gains shareholder permission, while asking the regulator for permission to continue using United Kingdom out-of-concession 900MHz for 2G in the meantime. AIS’ OFCOM is seeking input on whether existing 900MHz service is scheduled to be switched off spectrum in the 3.8 GHz-4.2 GHz band could be shared in order to free up more on April 14. (April 6, 2016) TelecomAsia capacity that could be potentially used for wireless broadband. The frequencies are currently used The National Broadcasting and Telecommunications for fixed satellite services and point-to-point connectivity Commission announced it will hold a new auction round for things like backhaul. Fixed-wireless operator UK for the 900 MHz spectrum license on June 24. NBTC’s Broadband also uses an 84 MHz chunk of 3.9-GHz-4.0- telecom committee has decided that the reserve price GHz spectrum for its Relish Internet service. “We believe for the 900MHz auction will start from Jas Mobile this band poses a good opportunity and potential Broadband’s winning price of THB 75.7 billion, which will for more intensive usage by innovative applications/ than rise by increments of 152 million. NBTC Secretary services, while taking into account incumbent services,” General Takorn Tantasith insisted that the reserve price said OFCOM, in its consultation document. The U.K. for the new auction of the 900MHz spectrum started regulator’s initial thoughts centre on allocating licenses at JAS’s winning bid. Interested bidders are required on a geographic basis, and providing opportunistic to submit a guarantee equivalent to 5 percent of JAS’s spectrum access (OSA) provided it doesn’t cause undue winning price of THB 75.65 billion, that is THB 3.78 billion. interference. “Where there is potential benefit to new Bidders will also have to pay the NBTC an additional THB sharing we will need to consider the associated changes 11.35 billion if they fail to make the license payment. The carefully, taking account of the benefits that incumbent regulator can confiscate the guarantee of THB 3.78 billion services deliver to citizens and consumers,” OFCOM plus the compensation in case the license winner fails to said. The consultation will close on 9 June. Meanwhile, make the payment. “In the worst-case scenario, if the re- OFCOM has also published a framework that sets out auction sees another bid winner defaulting, we will get how it will consider the potential for sharing frequencies at least 15.13 billion baht, or 20% of JAS’s winning price”, when allocating spectrum in future. The framework Takorn Tantasith said. The telecom committee will submit considers what the spectrum is currently used for and the final draft for the 900 MHz re-auction to the NBTC’s what it could be used for going forward. It also looks board on 5 April for approval, he added. All interested at any barriers that may limit the extent of current or bidders are allowed to participate in the new auction, future sharing opportunities, and any regulatory or with the exception of JAS. If the new auction round fails technical tools that could be used to facilitate new or to attract any bidders, the NBTC plans to suspend the more intense sharing of frequencies. “The framework will auction for one year. Interested bidders will be able to continue to evolve over time, as a result of market and purchase the bidding documents between May 13 and technology developments,” OFCOM said. “Its application June 12, and submit them on June 13, together with the requires judgment to identify which barriers, tools and guarantee of THB 3.78 billion. (April 4, 2016) Bangkok Post enablers may be relevant and which spectrum options may be suitable, in line with the characteristics of use in Ukraine a particular case.” (April 16, 2016) totaltele.com Ukraine’s National Commission for the State Regulation of Communications & Telecoms regulator OFCOM has published a framework Informatization (NCCIR) has reserved which it will apply to future spectrum authorization spectrum in the 2.3GHz-2.4GHz and decisions in order to assess spectrum sharing 2.5GHz-2.7GHz bands for upcoming competitive opportunities. The watchdog claims that the new auctions for 4G LTE mobile broadband licenses, it framework, which follows a consultation launched back confirmed on its website. The NCCIR intends to hold a in July 2015, ‘reflects the need to consider carefully the tender for a nationwide license in the 2.3GHz-2.4GHz circumstances of each potential opportunity, covering its range; frequencies in this band are currently held by costs and benefits’. The framework consists of three key a company named S-Line, but the NCCIR has refused elements to help identify potential sharing opportunities to renew S-Line’s licence which expires on April 20, in particular bands, those being: characteristics of use 2016. Ukraine’s cellular market leader Kyivstar would for both incumbent and prospective users that inform theoretically have gained access to the 2.3GHz-2.4GHz an initial view of the potential for sharing and what spectrum, as it indirectly inherited the resource through tools may be relevant; barriers that may limit the extent the merger of Golden Telecom (now part of Kyivstar) and of current or future sharing, despite the liberalization S-Line (itself backed by Russian businessman Yevgeny of licenses and existing market tools such as trading Roitman, according to BizLiga). In the 2.5GH-2.7GHz or leasing; and regulatory tools and market and band, the NCCIR has decided to pursue a regional technology enablers that match the characteristics of
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SAMENA TRENDS _ APRIL 2016 use and barriers to facilitate new and/or more intense seeking views from consumers and industry to inform our sharing. OFCOM has also invited stakeholder comments analysis of the options for designing and implementing on the first new opportunity for spectrum sharing in the the broadband USO. Responses to this call for inputs will 3.8GHz-4.2GHz band, and a consultation on this matter inform recommendations we put to government,” the is due to run until 9 June 2016. According to OFCOM, its U.K. regulator said, in its consultation document. The preliminary analysis indicates that the band in question consultation addresses numerous factors, such as what ‘is suitable for more intensive sharing, while taking into constitutes an acceptable level of broadband service, how account incumbent services’. (April 15, 2016) telegeography.com much it should cost, and whether it should be subsidized for low-income households. OFCOM also wants to find out the likely level of demand for USO broadband, how The Competition and Markets Authority (CMA) issued much the scheme is likely to cost in terms of funding a stern warning about 3UK’s proposed merger with O2 new networks and operating services, and whether to to the European Commission, claiming that the tie-up create a single Universal Service Provider (USP) or create could cause long-term damage to the mobile market. several, potentially divided along geographical lines. In a letter addressed to EC competition commissioner In addition, the consultation is also keen to establish Margrethe Vestager, CMA chief executive Alex Chisholm the extent to which the USO could distort broadband said that the remedies offered by 3UK parent CK competition. OFCOM said it is keen to ensure that the Hutchison “fall well short” of countering the potential loss USO builds on existing commercial and community of competition resulting from the deal. “The proposed networks, rather than displaces them. The government remedies are materially deficient as they will not lead floated the idea of a new broadband USO in November to the creation of a fourth mobile network operator 2015. It proposed giving every consumer the right to (MNO) capable of competing effectively and in the long- request a broadband service with a speed of at least 10 term with the remaining three MNOs such that it would Mbps, putting broadband access on a similar footing to stem the loss of competition caused by the merger,” he utilities such as electricity and water. Under the plan, the said. CK Hutchison has pledged to freeze prices for five minimum speed will increase over time to keep up with years, and invest £5 billion in its U.K. mobile operations growing demand and advances in technology. OFCOM’s over the same period if its acquisition of O2 is waved consultation will be open for comment until June 23. The through. It has also offered to sell mobile network regulator is due to make its recommendations on the capacity to facilitate the entry of new competitors. A USO by the end of 2016. (April 7, 2016) totaltele.com report last week claimed that Hutch has already agreed a £2 billion to sell 20% of the capacity of the merged mobile network to Sky. The same report claimed that it United States has struck a similar deal with Virgin Media for a further CenturyLink, Frontier Communications 10%. This is not enough for the CMA though. Chisholm and FairPoint Communications are wants to see Hutchison divest either the 3UK or O2 seeking funding from the Federal mobile network in its entirety, or hive off physical assets Communications Commission to support and spectrum sufficient to create “a commercially viable” voice services in certain remote and high-cost areas of fourth player. “Absent such structural remedies, the only the nation that they described as “uneconomic to serve.” option available to the Commission is prohibition,” he While commending the FCC for adopting rules to fund said, on the grounds that the merger is likely to lead the second phase of the Connect America Fund (CAF) – a to higher prices. Monday’s news prompted Swedish multibillion-dollar subsidy program to bridge the digital telco consultant Bengt Nordstrom to issue a stern divide – the telecommunications carriers requested warning of his own. “If regulators and competition aid to support Americans who are not covered by the authorities only focus on consumer prices, we will be broadband subsidies, still dependent on voice services, the last industrialized region in the world to reach 5G,” and live in rural areas that are very expensive to serve. he said. Nordstrom said that consolidation will foster In an April 5 letter to the FCC, the top executives of long-term investment in infrastructure, and healthy CenturyLink, Frontier and FairPoint expressed their competition at both a network and service level. He understanding that the FCC was considering whether to also said that preventing the 3UK/O2 deal will put BT, include areas of the country that are not covered by the which recently completed its acquisition of EE, at an broadband subsidies in a competitive bidding process, insurmountable advantage. “Alex Chisholm believes that which marks the next step of CAF II funding. But for now, the entire mobile network of O2 or 3 should be sold to the FCC has stopped providing support used to maintain an appropriate buyer. But who would be the buyer?” the carriers’ voice networks in those areas, the letter The business case for a new entrant in a mature market noted. “This loss of voice support in effect amounts to an is very weak,” Nordstrom continued. “If the EU and unfunded mandate to provide voice service to extremely national regulators are to base a competition policy on remote, high-cost areas that are uneconomic to serve,” a minimum of four players per market, what they are in wrote CenturyLink CEO Glen Post, Frontier CEO Daniel reality wishing for is ignorant investors or born-to-lose McCarthy and FairPoint CEO Paul Sunu. “At the same operators,” he said. The European Commission has set a time, these are the areas where the Universal Service provisional deadline of 19 May to issue a decision on the Fund has the maximum impact; these are areas where 3UK/O2 merger. (April 11, 2016) totaltele.com voice services are essential for seeking help during natural disasters such as fires, floods, and tornados.” An OFCOM launched a consultation on the Universal Service FCC spokesman did not immediately respond Friday to Obligation (USO), which will give consumers the right a request for comment on the letter. “According to the to request a minimum of 10 Mbps broadband. “We are FCC’s own model, the estimated costs of continuing to serve these areas are extensive--more than $1 billion,”
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Frontier spokeswoman Brigid Smith said in an emailed “To help close this digital divide, the order adopted by statement to Channel Partners. “CenturyLink and the Commission today refocuses Lifeline support on Frontier have requested only $176 million in interim broadband, which will enable low-income Americans funding to ensure that these customers can maintain to share in the 21st century opportunities that access service while the FCC continues to consider a long- to the Internet provides.” Minimum standards of 10 term solution for serving these areas. These are the very Mbps downlink and 1 Mbps uplink speeds and a 150 highest cost areas, and although the FCC recognizes GB monthly usage allowance will apply to fixed services. that carriers need support to provide service in these Usage allowances for 3G-based mobile data services will areas, it is not currently providing support to do so.” The start at 500 MB per month from December 2016, rising FCC last year authorized 10 telecom carriers – including to 1 GB by the end of 2017, and 2 GB by the end of 2018. CenturyLink, Frontier and FairPoint – to receive nearly To ensure the Lifeline program is not abused, the FCC $9 billion in CAF II funding over six years. Combined will establish a National Eligibility Verifier, a neutral third with the carriers’ own investments, the funding will party responsible for preventing ineligible consumers expand broadband to nearly 7.3 million rural customers from receiving subsidies. It is also designed to reduce in 45 states and one U.S. territory, the FCC noted last the administrative burden on telcos. “We applaud the September in a news release. CenturyLink, alone, has FCC’s modernization of the Lifeline program that will accepted roughly $500 million a year for six years in help to bring the transformative benefits of the Internet funding. The Monroe, Louisiana-based company said to millions of low-income Americans,” said Walter it would expand broadband to 1.2 million rural homes McCormick Junior, CEO of broadband lobby group and businesses in 33 states. Frontier, which is receiving USTelecom, in a statement. “By establishing a national $330 million in CAF II support annually through 2020, is system for verifying consumer eligibility for the program, extending broadband to more than 750,000 homes and the FCC can work toward reducing instances of waste, businesses, Smith said. (April 8, 2016) channelpartnersonline.com fraud, and abuse,” he continued. “We look forward to working with the Commission to implement the changes in the program.” (April 1, 2016) totaltele.com The broadband labels—which are modeled after nutrition labels—will include prices, hidden fees, overage fees, data allowances, broadband speed and The U.S. Federal Communications Commission on other performance metrics. “Customers deserve to know Thursday advanced a proposal to ensure the privacy the price they will actually pay for a service and to be of broadband Internet users by barring providers from fully aware of other components such as data limits and collecting user data without consent. The proposed performance factors before they sign up for service,” regulation from FCC Chairman Tom Wheeler won initial said Tom Wheeler, FCC Chairman, in a press release. approval with a 3-2 vote to require broadband providers According to the FCC’s press release, the government to obtain consumer consent, disclose data collection, agency receives more than 2,000 complaints on a yearly protect personal information and report breaches -- basis about “surprise fees associated with consumers’ but would not bar any data collection practices. “It’s internet service bills.” These labels are intended to the consumers’ information and the consumer should provide greater transparency and cut back on consumer have the right to determine how it’s used,” Wheeler confusion. But ISPs aren’t mandated to issue the labels. said. Broadband providers currently collect consumer Right now, they are merely recommended by the data without consent and some use that data for FCC’s Consumer Advisory Committee, which included targeted advertising, which has drawn criticism from representatives from Verizon, T-Mobile, CenturyLink and privacy advocates. Wheeler’s proposal does not prohibit the National Cable & Telecommunications Association. Internet providers from using or sharing customer There is nothing new on the labels. In fact they contain data for any purpose. The FCC would not extend the information Internet Service Providers are required to broadband provider privacy rules to sites such as Twitter, disclose to consumers under the FCC’s Open Internet Google or Facebook, drawing the ire of providers. transparency rules, which were passed last year. The Republican Commissioner Ajit Pai said Thursday there rules still need further approval from the Office of is no good reason to single out broadband providers Management and Budget but would require companies for regulations, while not regulating websites. The plan to make more specific disclosures about their services “favors one set of corporate interests over another,” he and fees. Really, the labels are just meant to streamline said. The FCC has authority to set privacy rules after it the dissemination of this information. (April 4, 2016) forbes.com reclassified broadband providers last year as part of new net neutrality regulations. A federal appeals court has not ruled on a challenge to that decision. A final vote The U.S. Federal Communications Commission (FCC) on new regulations will follow a public comment period this week voted in favor of a proposal to provide a during which the FCC is asking for possible “additional or broadband subsidy to help low-income households alternative paths to achieve pro-consumer, pro-privacy access the Internet. The decision extends the FCC’s goals.” Under the rules providers would need to tell Lifeline program – which contributes US$9.25 towards consumers what information is being collected, how it is the monthly cost of fixed voice services to eligible being used and when it will be shared. They would also consumers – to include standalone fixed or mobile be required protect data under a data security standard. broadband, as well as bundles of fixed or mobile voice Consumers would need to be notified of breaches of and data services. “Consumers need Internet access for their data no later than 10 days after it was discovered. full and meaningful participation in society. Yet 43% of Ratings agency Moody’s Investors Services said earlier [the] nation’s poorest households say they can’t afford the proposal to impose privacy restrictions on broadband modern broadband service,” the FCC said on Thursday. providers such as Verizon Communications Inc, AT&T
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Inc, Comcast Corp is “credit negative.” Advocacy group approval of its DirecTV acquisition – while Verizon is Free Press praised the FCC for moving ahead and said predicted to bid around $10 billion. Overall estimates the commission must consider other issues in setting for the auction have ranged from $25 billion to in excess rules including “pay-for-privacy, deep-packet inspection, of $80 billion in total proceeds, with most in the $35 up selling services, competition and data security.” The billion to $45 billion range. The FCC’s AWS-3 auction, National Cable and Telecommunications Association which finished up early last year, took in a record haul in urged the FCC to adopt a “technology neutral approach excess of $41 billion. (March 29, 2016) rcrwireless.com by treating companies with access to similar user information the same.” (March 31, 2016) reuters.com Zimbabwe The government’s National Social Security The Federal Communications Commission’s highly Authority (NSSA) has reportedly reached anticipated 600 MHz incentive auction kicked off this an agreement with Empowerment week in what is expected to be a complicated process Corporation (E Corp) to acquire its 40% running well into the second half of the year. The process stake in the country’s third mobile operator, Telecel. began with television broadcasters making their initial Local newspaper The Herald reports an acquisition price bid commitments by end of day on March 29, which the of US$20 million for a deal which will fully nationalize FCC will then use to begin the reverse auction aspect of the struggling cellco. E Corp is a consortium of local the proceedings. The reverse auction will determine the investors whose owners include James Makamba’s price at which broadcasters will voluntarily relinquish their Kestrel Corporation, Leo Mugabe’s Integrated spectrum usage rights in the 600 MHz band. Television Engineering Group (IEG) and Jane Mutasa’s Indigenous broadcasters interested in giving up some of their current Business Women Organization. The state investment spectrum holdings in the 600 MHz band had until Jan. fund NSSA has already helped the government take a 12 to file an application with the FCC, with a statement 60% interest in Telecel, providing USD30 million of the from the National Association of Broadcasters indicating US$40 million needed to buy out VimpelCom in a deal “robust” participation from television broadcasters. “The announced in November and completed last month. FCC’s staff has done a remarkable amount of work to get That transaction was carried out via ISP Zarnet, which us to this point,” explained NAB EVP of communications is a unit of state-owned fixed line telco TelOne. Telecel Dennis Wharton, in a statement. “NAB expects robust has seen its customer base decline to below two million, broadcaster participation in the reverse auction, and we while rival operators Econet and NetOne continue to hope to see similarly robust participation from wireless post subscriber gains. (April 11, 2016) telegeography.com bidders in the forward auction. While we’ve expressed our concerns, we hope that the rules and systems the FCC has in place will ensure that this voluntary auction The Postal and Telecommunications Regulatory goes off without a hitch, and we look forward to the Authority of Zimbabwe (POTRAZ) says that the country’s close of a successful auction.” The reverse auction three mobile operators are all behind with payments to process is expected to take anywhere from three the Universal Service Fund (USF). As per media report weeks to two months, at which point the FCC will take POTRAZ Acting Director Baxton Sirewu said that cellular a break in the proceedings to repackage the spectrum market leader Econet has been the biggest contributor offered up by the broadcasters into chunks that can so far, handing over US$53 million of the US$67 million be used by commercial cellular providers. Analysts total payments since the fund was set up in 2009. State- predict the FCC could have between 80 megahertz and backed rivals Telecel and NetOne have paid US$10 110 megahertz of spectrum available for the auction’s million and USD4 million respectively. The regulator has more conventional forward auction process. “The not disclosed how much each operator still owes to the lynchpin joining the reverse and the forward auctions fund. At the start of this year the government raised the is the ‘repacking’ process,” the FCC noted. “Repacking required level of contributions, from 0.5% of a telco’s involves reorganizing and assigning channels to the gross annual turnover to 1.5%. Authorities expect the remaining broadcast television stations in order to hike to raise USF payments to a combined USD13 million create contiguous blocks of cleared spectrum suitable in 2016. (April 5, 2016) The Herald for flexible use. The vast majority of stations that remain on the air after the auction will be assigned channels in the TV band; in a few markets where the post-auction TV band is not large enough to accommodate every station, stations may be assigned a channel in the wireless band.” The FCC had previously said it will set aside 30 megahertz of the repackaged spectrum for carriers that do not already control a significant amount of sub-1 GHz spectrum holdings, which is predominately made up of AT&T and Verizon Communications. T-Mobile US Javaid Akhtar Malik is expected to be the most aggressive bidder for the set Regulatory Affairs aside spectrum, with some predicting the carrier could SAMENA Telecommunications Council spend up to $10 billion on licenses. While not eligible for the set aside licenses, analysts predict AT&T could bid “Information contained herein has been obtained from sources, which we deem reliable. SAMENA between $10 billion and $15 billion for licenses – having Telecommunications Council is not liable for any misinformed decisions that the reader may reach by committed to at least $9 billion in bids as part of gaining being solely reliant on information contained herein. Expert advice should be sought.”
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wholesale NEWS
ACCC publishes final FAD also sets an uplift factor for services to Tasmania, which seeks to account for access determination for the increased costs and risk in providing DTCS services which use an undersea cable component. Commenting on the final A final decision on the prices for the ruling, ACCC chairman Rod Sims was cited declared Domestic Transmission Capacity as saying: ‘We have seen a downward Service (DTCS) has been published by the trend in commercial transmission prices Australian Competition and Consumer in recent years and this trend is reflected Commission (ACCC). In its final access in lower DTCS pricing, particularly on determination (FAD) the regulator has high capacity, regional routes … Because set DTCS pricing significantly lower than transmission is an essential input for many in its previous ruling from 2012: average services, we consider that lower prices prices for short distance, low capacity WHOLESALE will promote competition in downstream services (2Mbps) will be cut by 13% in markets and put more downward metro areas and 22% in regional areas; Updates pressure upon wholesale transmission and average prices for long distance, prices, particularly in regional areas. We high capacity services (100Mbps) are to expect that these lower prices will be be reduced by 76% in metro areas and passed on to end users in the form of 78% in regional areas. However, the ACCC lower prices and new, innovative services.’ has noted that the extent of the reduction The prices for the DTCS will apply from 21 in pricing for a specific part of the market April 2016 to 31 December 2019. will ‘depend upon the geographic route type, capacity, and distance of a particular service’. The transmission prices are Uganda to scrap interna- based upon a domestic benchmark of prices in competitive areas. Following tional call tax the publication of the draft decision in The government of Uganda is proposing September 2015, further consultation scrapping the USD0.09 per minute tax and analysis of the data prompted the which is currently levied on incoming ACCC to make some adjustments to the international calls. According to local model, particularly for the pricing of low newspaper The Daily Monitor, Ugandan capacity, short distance services which telcos have complained that many calls are used to provide voice services in the are illegally routed through neighboring corporate and government sectors. The countries such as Kenya and South Sudan
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SAMENA TRENDS _ APRIL 2016 which are part of the One Network use roaming through Axiata Group contracts signed with partners abroad, Area scheme and are consequently network in those countries, they will be reports El Impulso. The decision taken billed as local calls, losing money for able to make and receive calls at Rs 15 by the operator is due to the increased the legitimate operators. The Excise per minute, send SMS at Rs 15 and use costs as a result of the entry into force Duty (Amendment) Bill 2016 states: data at Rs 15 per MB. Incoming SMS of floating currency rates applied to ‘The complete removal of the duty was remains free of charge. Discounted the telecommunications sector, which rates are valid requires the updating of prices of on outgoing international services. calls to Nepal and respective roaming countries Ooredoo Oman offers in the Axiata unified roaming tariff for Group network. At present, it costs GCC between Rs 49 to Ooredoo Oman has unified its Rs 549 per minute tariffs for customers traveling to to call Nepal from Gulf Cooperation Council countries Bangladesh, Rs 349 with the introduction of its ‘GCC from Cambodia, Rs One region, One tariff’ scheme. This 599 from Malaysia follows Oman’s Telecommunications and Rs 49 to Rs Regulatory Authority’s (TRA) 149 from Sri Lanka, requirement for a common regional depending on the roaming price structure. Fom 01 April, operator. Similarly, all Ooredoo Shahry and Mousbak necessary due to unregulated operators customers sending text message customers get the same standard rate routing incoming international calls via to Nepal from these countries are for local roaming calls, data and SMS, One Network Area countries and other required to pay Rs 20 to Rs 60 per whichever GCC country they travel routing mechanisms, which had led to SMS. Ncell Axiata roam offer is coming to and whichever operator they use. a significant reduction in the volumes into effect from Nepali New Year 2073 Ooredoo has not only simplified its of inbound traffic and interconnect BS, that is, April 13, and will be valid roaming structure but also reduced fees for the resident telecom operators. until the next notice. Customers will the cost of local calls, calls back to This had a corresponding negative enjoy this rate once they activate the Oman, data and SMS messages within impact on the tax revenues generated roaming service. Prepaid customers the GCC. Ooredoo customers will now by the resident operators.’ While traffic can activate roaming service by typing be able to make local calls during on international calls fell to 3.3 million ‘A’ and sending SMS to 900228, while their travels for OMR 0.100 a minute minutes in December 2015, from nine postpaid customers can visit the and SMS will be charged at OMR 0.31. million twelve months earlier, the nearest Ncell Centre for the activation. Travelers to the GCC will also be able traffic originating from Kenya and to access data at the greatly reduced South Sudan more than doubled over rate of OMR 0.500 per MB. Receiving the same period. African regulators to calls from home will cost OMR 0.135 harmonize roaming per minute. Ooredoo customers do not need to opt in to ‘One Region, The West African Telecommunications New flat-rate roaming One Tariff’ as charges will be applied Regulatory Assembly (WATRA) said it automatically. Travelers who prefer offer launched in Nepal is working towards harmonizing the to opt for a bundle can choose the On the occasion of Ncell becoming roaming activities of the Economic Musafir UAE and Musafir GCC plans, a part of the Axiata Group, Ncell has Community of West African States which provide data allowances. unveiled Ncell Axiata roam offer, under (ECOWAS). The group said guidelines which all Ncell customers travelling are already being developed for a to Malaysia, Sri Lanka, Bangladesh seamless interconnection and roaming Aircel, BSNL sign nation- and Cambodia will enjoy attractive of telephone users in the West African discounts on roaming rates while sub-region. Its Executive Secretary, wide GSM roaming pact staying connected through Axiata Alhaji Maman Laminou who spoke. Indian mobile operator Aircel Group network. Under the offer, Ncell has revealed that it has signed a prepaid and postpaid customers will nationwide 2G Intra-Circle Roaming be able to communicate with their Digitel suspends int’l (ICR) agreement with state-owned dear ones back home at a flat rate of services due to currency Bharat Sanchar Nigam Limited (BSNL). Rs 15, including taxes, when latched The Economic Times quotes an Aircel with Celcom Axiata network (Malaysia), crisis representative as saying: ‘This is Dialog Axiata network (Sri Lanka), Robi Venezuelan operator Digitel has [the] first agreement between a state Axiata network (Bangladesh) and indefinitely suspended its international owned operator and a private telecom Smart Axiata network (Cambodia), as long distance and roaming services player. With this strategic tie up, both per a statement issued today. What this for fixed and mobile telephony due organizations will be able to enhance means is that when Ncell customers to the impossibility of canceling the customer experience besides utilizing
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76 per cent on outgoing SMS and up to 90 per cent on data usage for prepaid and post-paid customers. Roaming customers will only be charged Dh0.95 per minute for all local calls made within the visited GCC country, Dh0.29 for all sent SMSs while roaming, while data roaming will only cost customers Dh4.77 per MB for both prepaid and postpaid customers. The stakeholders’ plan to reduce call rates for a period of three years and the data rates for five years. The new unified rates aim to simplify customers’ lives and ensure a seamless experience during their travel by staying connected with their family, friends and business associates through their original numbers without the need to purchase a new SIM from each destination within the GCC. “As each other’s assets and network took full effect on February 1, 2012. a telecommunications provider, it is strength.’ Local press sources have On June 9, 2015, the GCC approved our responsibility to create social and claimed that BSNL is poised to sign recommendations setting price caps financial ecosystems that truly benefit additional ICR agreements with rival for calls made to other GCC, calls made our valued customers, and add life to operators Vodafone and Reliance Jio within the visited GCC country, calls their day to day communication needs. in the coming months. According received while roaming within the GCC, This announcement is a step that to TeleGeography’s GlobalComms SMS sent while roaming in the GCC will enrich the bond between all GCC Database, BSNL’s 2G footprint covers and mobile data usage while roaming countries by boosting tourism and 20 of India’s 22 circles (all except Delhi in the GCC. business in parallel,” Fahad Al Hassawi, and Mumbai). The network currently chief commercial officer at du, said in comprises 114,000 cell towers, a figure a statement. The roaming rates within which is set to rise to 135,000 following Telcos announce new the GCC are slightly higher when the next phase of the telco’s rollout compared to other countries but the program. roaming rates within the main issue is the data services. “Rates GCC for data services are extremely high when compared to other countries,” Gulf Operators Cut Telecom operators du and etisalat Sukhdev Singh, vice-president at will reduce its roaming rates in the market research and analysis services Roaming Rates Gulf Cooperation Council (GCC) provider AMRB, told Gulf News. “It is The UAE’s telecoms regulator has states from April 1 in line with the a positive move and will smoothen ordered the country’s two mobile announcement made by the GGC’s the businesses but I don’t think it is network operators to cut the cost Secretariat-General. The reduction will going to drastically change business of roaming overseas within the Gulf be applicable for local calls within the dynamics,” he said. The move is Cooperation Council (GCC) countries. roaming country, incoming calls while expected to save $1.13 billion (Dh4.15 The GCC is made up of Saudi Arabia, roaming and text messages. Sources billion) for mobile users inside the GCC Kuwait, the United Arab Emirates, close to etisalat said that the discount countries in the first phase. Qatar, Bahrain, and Oman. In average, on standard rates is two per cent on the roaming prices for UAE customers outgoing voice calls to the UAE or any who travel to GCC countries should other GCC country, five per cent on fall by an average of 42% starting outgoing calls to the local destination, from April 1, 2016. Commenting on this move, H.E. Hamad Obaid Al Mansoori, the UAE TRA’s Director General stated: “The TRA was actively represented in the Roaming Working Group meetings to study the regulation of roaming prices in the GCC countries. The implementation of the price caps by all mobile operators in the GCC will represent a great achievement for GCC countries to be among the pioneers in implementing such regulations.” In 2010, the GCC approved recommendations for setting a maximum cap on wholesale and retail mobile roaming tariffs within GCC member states. The Regulation
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Umniah and Huawei International Company Join Forces to Launch a New Application for Games on Android Mobiles
Umniah, the fastest growing mobile the application free of charge, and start service provider in Jordan, announced exploring and enjoying the hundreds in April the signing of a partnership of games on offer. Furthermore, and cooperation agreement with downloading the application Huawei, a leading global information automatically qualifi es the user to join and communications technology Umniah’s VIP Club, which offers a free trial (ICT) solutions provider. Through this period on paid games and the chance to agreement, the companies will jointly win gifts and free downloads in addition launch the country’s fi rst electronic to various other perks and benefi ts. games portal. Created exclusively for Android smartphones, the portal The launch of this application further will be a free application that will strengthens Umniah’s existing offer Umniah customers access to partnership with Huawei International, hundreds of electronic games and other and coincides with the unveiling of its exciting offerings. This partnership 4G network, which provides super high effectively makes Umniah the fi rst speed mobile Internet perfectly suited telecommunications network operator in to needs of the entertainment and Jordan to offer an international repertoire electronic games industries. of games to serve the local market. At the launch, VAS and Mobile Financial In accordance with the agreement, Services Manager at Umniah, Mohamad Huawei designed and developed the Beides said, “Umniah’s partnership with application, which is now available to Huawei refl ects our commitment to offer Umniah Team all Umniah customers at game.umniah. the latest and most up-to-date services com. All subscribers can now upload for the local market, making it the ideal
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fit for all subscribers, including the entertainment and With that in mind, Huawei is walking on the road to help electronic gaming sectors, which make up a substantial Umniah in transition from CSP (Communication Service segment of the youth category.” He added that the Provider) to DSP (Digital Service Provider). Umniah Mobile company’s new 4G network, which boasts enormous Gaming as innovative solution is a step forward in the capabilities, is perfectly placed to offer the highest quality journey of Digital Transformation, he added. of Internet-based services. Last month, Umniah launched its 4G services through two The partnership with Huawei International, which teamed networks for the first time in Jordan, under the name evo up with Umniah to build its modern telecommunications 4G, which provide high speed Internet and other additional network throughout Jordan, presents a unique opportunity services. This latest step by Umniah is an acknowledgement for both companies and enables them to extend the best of the fact that technology has become an integral services to the Jordanian market. contributor to economic development and job creation for youth, and that the electronic gaming industry racked up The launch of this application, Beides went on to add, revenues in 2015 of over $100 billion, $30 billion of which stands witness to Umniah’s commitment to offer high speed were from the upload of mobile games. Internet to its Android subscribers, who make up the highest ratio of smartphones used in all telecommunication markets around the globe, including Jordan.
From his side, Director of Sales at Huawei, Chris Zhangbinbin said: “Today, in the era of digital economy, the traditional business operation mode of operators experienced huge impact from the Internet business, consumer’s behavior and experience is undergoing tremendous changes.”
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Technology NEWS
Turk Telekom, Nokia ink understand real network use-cases for this technology and to accelerate commercial 5G, IoT MoU use.’ Turk Telekom (TT) and Finland’s Nokia have signed a Memorandum of Understanding (MoU) to accelerate the development Wi-Fi Capacity Doubled at of 5G radio access network technology Less Than Half the Size and the applications that will drive the Internet of Things (IoT). According to a Last year, Columbia Engineering press release from Nokia, TT will make researchers were the first to invent a its network infrastructure available to technology full duplex radio integrated the vendor for real-time testing, and the circuits (ICs) that can be implemented in companies will work together on trialing nanoscale CMOS to enable simultaneous Technology 5G and IoT technologies for tracking, transmission and reception at the metering, smart cities, smart home and same frequency in a wireless radio. Updates latency-sensitive applications. They That system required two antennas, will then use their findings to develop one for the transmitter and one for 5G-ready solutions that will allow TT to the receiver. And now the team, led by evolve its network and be ready for the Electrical Engineering Associate Professor eventual introduction of commercial 5G Harish Krishnaswamy, has developed services. The MoU will see the companies a breakthrough technology that needs focusing on the development of cloud only one antenna, thus enabling an even architecture for radio and core network smaller overall system. This is the first technology that can support Network time researchers have integrated a non Slicing in particular. Nokia notes that reciprocal circulator and a full duplex with Network Slicing, a 5G network radio on a nanoscale silicon chip. “This can be tailored to the diverse needs of technology could revolutionize the field of different industries, enabling the large- telecommunications,” says Krishnaswamy, scale transformation of sectors such as director of the Columbia High-Speed and healthcare, security, automotive, public Mm-wave IC (CoSMIC) Lab. “Our circulator safety, industrial manufacturing, smart is the first to be put on a silicon chip, and cities and more. Ernst Nassl, Head of we get literally orders of magnitude better Region Turkey and Central Asia at Nokia, performance than prior work. Full-duplex commented: ‘Our work with customers communications, where the transmitter on 5G is crucial in allowing us to better and the receiver operate at the same
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SAMENA TRENDS _ APRIL 2016 time and at the same frequency, has integrated the circulator with the journal. Information security is become a critical research area and full-duplex receiver that featured becoming more and more of a critical now we’ve shown that WiFi capacity additional echo cancellation. Non- issue not only for large companies, can be doubled on a nanoscale reciprocal circuits and components banks and defense enterprises, silicon chip with a single antenna. have applications in many different but even for small businesses and This has enormous implications scenarios, from radio-frequency full- individual users. However, the data for devices like smartphones and duplex communications and radar encryption algorithms we currently tablets.” Krishnaswamy’s group has to building isolators that prevent use for protecting our data are been working on silicon radio chips high-power transmitters from being imperfect - in the long-term, their for full duplex communications for damaged by back-reflections from the logic can be cracked. Regardless several years and became particularly antenna. The ability to break reciprocity of how complex and intricate the interested in the role of the circulator, also opens up new possibilities in algorithm is, getting round it is just the a component that enables full- radio-frequency signal processing matter of time. Contrary to algorithm- duplex communications where the that are yet to be discovered. based encryption, systems that transmitter and the receiver share Full-duplex communications is of protect information by making use the same antenna. In order to do particular interest to researchers of the fundamental laws of quantum this, the circulator has to “break” because of its potential to double physics, can make data transmission Lorentz Reciprocity, a fundamental network capacity, compared to half- completely immune to hacker physical characteristic of most duplex communications that current attacks in the future. Information in a electronic structures that requires cell phones and WiFi radios use. The quantum channel is carried by single electromagnetic waves travel in the Krishnaswamy group is already working photons that change irreversibly once same manner in forward and reverse on further improving the performance an eavesdropper attempts to intercept directions. “Reciprocal circuits and of their circulator, and exploring them. Therefore, the legitimate users systems are quite restrictive because “beyond-circulator” applications of will instantly know about any kind of you can’t control the signal freely,” non-reciprocity. “What really excites intervention. Researchers from the says PhD student Negar Reiskarimian, me about this research is that we Quantum Information Centre of the who developed the circulator were able to make a contribution International Institute of Photonics and is lead author of the Nature at a theoretically fundamental level, and Optical Information Technology at Communications paper. “We wanted which led to the publication in Nature ITMO University along with colleagues to create a simple and efficient way, Communications, and also able to from Heriot-Watt University in using conventional materials, to demonstrate a practical RF circulator Edinburgh have devised a new way break Lorentz Reciprocity and build integrated with a full-duplex receiver to effectively generate and distribute a low-cost nanoscale circulator that that exhibited a factor of nearly a quantum bits. This is the first system would fit on a chip. This could open billion in echo cancellation, making it in Russia, which can compete with up the door to all kinds of exciting the first practical full-duplex receiver the best existing analogues and new applications.” The traditional way chip and which led to the publication makes it possible to share quantum of breaking Lorentz Reciprocity and in the 2016 IEEE ISSCC,” Krishnaswamy signals via optical fiber across 250 building radio-frequency circulators adds. “It is rare for a single piece of kilometers in distance. “To transmit has been to use magnetic materials research, or even a research group, quantum signals, we use the so-called such as ferrites, which lose reciprocity to bridge fundamental theoretical side frequencies,” says Artur Gleim, when an external magnetic field contributions with implementations head of the Quantum Information is applied. But these materials are of practical relevance. It is extremely Centre at ITMO University, “This not compatible with silicon chip rewarding to supervise graduate unique approach gives us a number technology, and ferrite circulators are students who were able to do that!” of advantages, such as considerable bulky and expensive. Krishnaswamy simplification of the device and his team were able to design a architecture and large pass-through highly miniaturized circulator that uses Russian Scientists Devel- capacity of the quantum channel. switches to rotate the signal across a op Long-range Secure In terms of bit rate and operating set of capacitors to emulate the non- distance our system is comparable reciprocal “twist” of the signal that is Quantum Communica- to absolute champions in the field seen in ferrite materials. Aside from the tion System of quantum communications.” The circulator, they also built a prototype very possibility of stable transmission of their full-duplex system--a silicon A group of scientists from ITMO of quantum signals through fiber IC that included both their circulator University in Saint Petersburg, Russia optical channels is instrumental to and an echo-cancelling receiver--and has developed a novel approach subsequent integration of quantum demonstrated its capability at the to the construction of quantum key distribution systems that will 2016 IEEE International Solid- State communication systems for secure be used to secure the useful data. Circuits Conference this past February. data exchange. The experimental According to Robert Collins, research “Being able to put the circulator on the device based on the results of the associate at the Institute of Photonics same chip as the rest of the radio has research is capable of transmitting and Quantum Sciences at Heriot-Watt the potential to significantly reduce single photon quantum signals across University and one of the authors of the size of the system, enhance its distances of 250 kilometers or more, the study, the work may become a performance, and introduce new which is on par with other cutting big pivot point for the whole field functionalities critical to full duplex,” edge analogues. The research paper of quantum communication and says PhD student Jin Zhou, who was published in the Optics Express cryptography: “Down the track, this
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SAMENA TRENDS _ APRIL 2016 new approach can enable smooth low-bandwidth, low-cost connectivity. applications such as smart metering coexistence of numerous data streams Meanwhile, going forward, 4G has and smart cities. The executive with different wavelengths in one the capacity to underpin bandwidth- argued that rival proprietary (non- single optical cable. On top of it, these hungry IoT services and is evolving cellular) IoT technologies such as LoRa quantum streams can be fed into the to also provide narrowband IoT and Sigfox are likely to encounter already existing fiber optic lines along connectivity. The 3GPP began work on challenges around quality of service with conventional communications.” the feasibility of using LTE to support and coverage, although they do have In order to encode quantum bits in IoT services in Release 12. It ramped benefits now in terms of being first the system, laser radiation is directed up its activities to specifically include to market. These technologies have into a special device called the electro- low-bandwidth, low-power LTE been “very, very aggressive” in the optical phase modulator. Inside the connectivity in Release 13, which was last year, but NB-IoT has advantages modulator the central carrier wave completed in March. in terms of standardization, quality emitted by the laser is split into several of service, security, battery life and independent waves. After the signal coverage. In terms of security, “the is transmitted through the cable, the So, where does that leave 3G? mobile network is considered as the same splitting occurs on the receiver “3G falls between two stools,” said safest, and cellular-IoT inherits the end. Depending on the relative phase Matt Hatton, CEO of IoT analyst firm characteristics of security from this,” shift of the waves generated by the Machina Research, during the same he said. And while the ecosystem still sender and the receiver, the waves will panel session. “It is a temporary needs some work, “this is temporary” either enhance or cancel each other. solution to a problem.” Indeed, – once the 3GPP standardization This pattern generated by overlapping compared to 4G, 3G lacks the capacity progress advances, growth will not wave phases is then converted into the needed to quickly transfer large be a big issue, he asserted. Indeed, combination of binary digits, 1 and 0, volumes of data, while 2G networks growth of the NB-IoT ecosystem has which serves to compile a quantum are fully depreciated, potentially been a major theme here, with Patrick key. Importantly, the scientists have making them a lower-cost option Zhang, president of the marketing achieved high stability of the relative for narrowband IoT compared to and solutions department at Huawei, phase shifts of the signal in the 3G. Having said that, Japan’s mobile stating that “we believe we can only system. “All waves undergo random operators have already shut their succeed with our partners, together. We changes while passing through the 2G networks down completely, and cannot succeed alone”. While Huawei fiber,” explains Oleg Bannik, one of the the likes of AT&T in the U.S., and has been one of the main drivers of authors of the study and researcher Telstra and Optus in Australia have NB-IoT, it has also seen support from at Quantum Information Centre, “But announced 2G sunset plans. However, chipset vendors including Qualcomm, these changes are always identical a different picture is emerging in Intel and HiSilicon; module makers and get smoothed over during the Europe. Telenor revealed in 2015 that such as U-blox, Telit, Sierra and additional run through the receiver’s it plans to shut down its 3G network Gemalto; and network rivals Ericsson modulator. In the end, the receiver in Norway in 2020, followed by its 2G and Nokia. Zhu highlighted the role of observes the same combination as network in 2025. Its logic is that the the NB-IoT Forum in acting as a bridge the sender.” Now the researchers are 2G network will still be useful for basic to industry for operators. In a keynote on the mission to create a full-fledged M2M and voice services - particularly presentation yesterday, Eric Xu, quantum cryptographic system, roaming – all the while it is expanding rotating CEO of Huawei, outlined its which will generate and distribute the coverage and capability of its 4G aim with NB-IoT. “We hope the telco quantum keys and transmit useful network. Hatton said on Tuesday network will be able to carry more IoT data simultaneously. that he has had similar conversations connections,” he said. with several European operators. For Telefonica’s Williams, operators will 3G’s days are numbered still rely on 3G for IoT connectivity in KT, NEC confirm suc- places where LTE networks have not once IoT takes off been widely deployed, but will be cessful 5G backhaul so- 2G networks expected to outlast 3G gradually squeezed out “as 4G evolves lution test utilizing E- in Europe thanks to demand for voice into a standard that includes support roaming, low-bandwidth services. for M2M.” band spectrum 3G could be consigned to history Japanese vendor NEC Corporation has in Europe over the next decade, as announced the successful completion operators come to rely increasingly on NB-IoT to become reality of a Proof of Concept (PoC) trial with evolved 4G, and even 2G networks, for South Korea’s KT Corporation for a 5G voice, data, and Internet of Things (IoT) in 2016 – Huawei wireless backhaul solution that utilizes services. “There is still a place for 3G… Huawei claimed that NB-IoT is “not a E-Band spectrum (70GHz-80GHz). [but] its role will diminish over time,” story: it’s coming, it’s going to be reality In a press release confirming the said Guy Summers, head of machine- this year”, as it looks to drive growth development it was revealed that the to-machine (M2M) connectivity at of the low power IoT technology in PoC was conducted at Phoenix Park Ski Telefonica Digital, during a panel the face of rival offerings which have World in PyeongChang, South Korea, session at Smart IoT London. He already been deployed. Zhu Cheng using KT’s commercial mobile network said that approximately 70% of the (pictured), director of the cellular IoT infrastructure. KT aims to launch 5G Spanish incumbent’s cellular M2M product line at Huawei, suggested trial services in 2018, planning to connections are still carried by its 2G that by 2020 there will be three billion introduce radio transmission using network, due to the huge demand for cellular IoT connections, driven by E-Band spectrum in order to establish
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SAMENA TRENDS _ APRIL 2016 mobile backhaul networks for 5G and preferences, including monitoring spectrum investments while bringing services, especially in mountainous heart rate, glucose level and other high-quality experiences to mobile areas where it is difficult to lay optical personal health data. broadband users everywhere.” fibre. In this latest technology trial, the iPASOLINK EX, NEC’s ultra-compact microwave communications system Huawei to Open Innova- OTT continues European that operates with E-Band spectrum, tion Centre in Thailand growth was used to interconnect KT’s LTE base stations with high-speed and high- Huawei has selected Thailand to host OTT video content has continued its capacity wireless links. According to its first technology and innovation rise throughout Europe, according the vendor, as iPASOLINK EX supports centre in Southeast Asia. The to new international data from Parks ultra-multilevel modulation (256QAM) company’s senior vice-president Chen Associates. ‘OTT Video Market Tracker’ technology, high capacity transmission Lifang said that Bangkok will also is an annual service designed to of up to 3.2Gbps is possible, while its serve as the global launchpad for its provide industry monitoring and support of narrow band transmission latest branding campaign. “Thailand insights into new trends and services, (channel width of 250MHz and has recognized the important tracking content and subscriber 500MHz) enables telecom operators strategic role for Huawei and is a counts across the US and Europe. to efficiently utilize frequency bands. stabilizing force in the region, thanks The research found that 55 per cent to its strategic location and the tech- of broadband households in the UK savvy Thai consumer,” Ms Chen told and 51 per cent in France now view Toyota to develop con- reporters. “Thailand, Bangkok in TV programming and films online. particular, is a sophisticated market However, Europe remains some nected car technologies with a high level of innovation,” distance behind adoption rates in with Microsoft she added. The customer service the US, which total 70 per cent. innovation centre will be based next The number of paid subscriptions Toyota has launched Toyota Connected, to Huawei’s existing Thailand office in Europe is also significantly lower aimed at developing the company’s in Bangkok. Huawei’s operations in than that in North America, with 30 capabilities in data management Southeast Asia encompass Thailand, per cent of broadband households and data services. The new company Cambodia, Laos, Myanmar, Taiwan, in the UK and 17 per cent in France will serve as a data science hub Hong Kong, Macau, Bangladesh, Sri holding subscriptions to OTT content, for Toyota’s global operations and Lanka and India. in comparison with 64 per cent in the support a broad range of consumer, US. “OTT is definitely gaining traction business and government facing across Europe. We are seeing new OTT initiatives. The move comes as Toyota video services spring up, but not as expands its existing partnership with Ericsson and Telefonica many as in North America,” said Brett Microsoft to develop new connected Demonstrate Live Deliv- Sappington, director of research, Parks services. Based in Plano, Texas, Toyota ery of LTE-U Associates. “In many parts of Europe, Connected will launch with two pay-TV penetration is lower than the mandates: delivering seamless and Ericsson and Telef nica have US, and European consumers have contextual services, and using cutting- demonstrated live, over the air been reluctant to pay for video in the edge data analytics to support product delivery of LTE U through Telef nica’s past due to so many ‘free’ options such development for customers, dealers, network. The demonstration used the as the BBC iPlayer. “But, as more pay distributors, and partners. At the new Ericsson RBS 6402 - an indoor pico cell options enter the market, with content facility, Microsoft engineers will work solution offering three standards (LTE, unavailable anywhere else, they are with Toyota Connected, leveraging WCDMA and Wi-Fi), 10 frequency slowly changing the culture of video a broad range of data analytics and bands and up to 300 Mbps LTE viewing in Europe.” Spotify recently mobile programs. Toyota Connected carrier aggregation. Ericsson is also added video to its OTT music service, will adopt Microsoft’s Azure cloud announcing the implementation of a whilst PlayStation Vue also became computing platform, employing a range of enhancements to the Ericsson available nationwide across the US hybrid solution globally. The new Networks Software LTE-U offering. This this month. “Consumers are trying company will be led by Toyota Motor will allow operators across the globe to and subscribing to more services,” Corporation senior managing officer leverage unlicensed 5 GHz spectrum Sappington added. “We saw a big Shigeki Tomoyama, with Toyota Motor for improved peak rates and capacity increase in the number of households North America chief information even before Rel-13 LAA becomes subscribing to multiple OTT video officer Zack Hicks serving as CEO. available, in places where national services in the US market at the end Reuters reported that Microsoft will regulations allow the use pre-Rel-13 of 2015.” “Each service is bringing have a 5 percent stake in Toyota LAA standards. Eric Parsons, Head new experiences for consumers, and Connected. Among the services to be of Mobile Broadband, 4G/5G Radio many are providing new content that developed or expanded under Toyota Access, Ericsson, says: “”With global is unavailable elsewhere.” Connected are insurance coverage data traffic growing exponentially, and rates based on owners’ actual spectrum has become one of the driving patterns, connected vehicle world’s most valuable resources. By networks that can share information enabling the use of unlicensed 5 GHz on traffic and weather conditions, spectrum to boost peak data rates such as icy roads, and information and capacity, LTE-U helps operators services tailored to a driver’s habits extract maximum value from their
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SAMENA TRENDS _ APRIL 2016
Businesses are Swimming Against a Growing Tide of Security Threats
Businesses are struggling to shore up from 100 different financial institutions security defences against hackers who across the US, Russia, China, Germany are becoming more skilled, persistent and Ukraine, targeting both businesses and agile. and individual citizens. The FBI’s Internet Crime Complaint Center (IC3) said that Astonishingly only 45 percent of between April 2014 and June 2015, organizations worldwide are confident in victims reported losing $18 million to their ability to defend their systems and CryptoWall, a ransom Trojan. data against sophisticated cyberattacks, according to Cisco’s 2016 Annual Security There is a growing concern amongst report. senior management about the potential damage data breaches and cyberattacks Cybercriminals are fast creating resilient can do to a business in terms of brand back-end infrastructures to launch reputation, lawsuits and costly downtime, their ever-increasing attacks. Malicious but still many are finding it difficult to put browser extensions are one major adequate security strategies in place. source of data leakage for businesses, with Cisco estimating that 85 percent of “High-profile data breaches are a wake- organizations are affected by them. up call to enterprises everywhere. However, they pose the question: Why Online criminals are refining complex did IT fail to stop the data breach? The webs for getting money out of answer is that it’s an enterprise-wide unsuspecting victims as well as stealing issue, not just a technology problem,” data and intellectual property (IP). explained Larry Ponemon, chair and Security firm Kaspersky Labs estimates founder of the Ponemon Institute. Orange Business Services – Middle that over the past two years cybercriminals East, North Africa & Turkey have managed to steal around $1 billion
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The curse of aging systems Aging legacy systems are a major cause for concern, because IoT will reshape security they can leave businesses vulnerable to attacks. Cisco The pressure on enterprise security is only going to grow. analysed 115,000 devices on the internet and discovered As we enter the era of the Internet of Things (IoT) it is that 92 percent were running software with known imperative that enterprises and their partners have a secure vulnerabilities. Furthermore, 31 percent of the devices were network infrastructure, ensuring the integrity of the data and logged as “end of sale” and 8% “end of life”. communications that are moving around their networks.
The power of connected devices within the IoT ecosystem will redefine the scope of security strategies way beyond present responsibilities, according to Gartner. “The requirements for securing the IoT will be complex, forcing Chief Information Security Officers (CISO) to use a blend of approaches from mobile and cloud architectures, combined with industrial control, automation and physical security,” explained Earl Perkins, research vice president at Gartner.
“Fortunately, many of the security requirements for the IoT will look familiar to the CISO. The technologies and services that have been used for decades to secure different eras of computing are still applicable in most cases,” he added
With the rise of IoT, now is the time for enterprises to take a really hard look at their security strategies. They Many organizations and financial institutions are plagued must ensure they are doing everything possible to avoid by a mix and match of older systems, often attained through security breaches, which may require investment in new IT mergers and acquisitions. Chinks in patchwork networks infrastructures or security solutions. make easy entry points for cybercriminals, whether they are seeking to profit from stolen data or are so-called It is worth remembering the mantra that trust in IT is hard ‘hacktivists’ looking to make a social or political point. fought, but can be very quickly lost – which is why security needs to be at the top of every enterprise agenda. Businesses are desperately trying to address security issues but are finding the challenges overwhelming – with aging infrastructures and outmoded organizational frameworks standing in the way of developing robust cybersecurity strategies.
At a time when security measures should be paramount, Cisco’s report found that SMEs have actually lowered their guard. The report found that 48 percent of SMEs said they used web security, compared to 59 percent in 2014. Such weaknesses can leave SMEs particularly vulnerable to attacks as cybercriminals will find it easier to breach these networks.
Home Depot in the US was hacked into via flaws in its password security and an unnamed third party vendor’s system. Cybercriminals got in via this back door and installed malware on sales terminals.
page_70 satellite updates
SAMENA TRENDS _ APRIL 2016
SATELLITE NEWS
Eutelsat to Power BGAN M2M certification. Explorer 540 is the first M2M communication Upcoming Russian terminal designed to operate on both Broadband Service with Inmarsat BGAN and LTE/3G/2G cellular Gilat Technology networks. The Explorer 540 delivers real- Eutelsat has selected a SkyEdge 2-c time M2M communication for diverse hub with X-Architecture and SkyEdge applications including IP Supervisory 2-c small user terminals from Gilat to Control And Data Acquisition (SCADA) deliver broadband services in Western for data backhaul, asset tracking, real- Russia. Russian Satellite Communications time surveillance and remote telemetry. Company (RSCC) will host the hub at its Securing continuity of M2M IP data Dubna satellite center near Moscow. The transfer, which often originates in hard Gilat equipment will power a new range to reach, remote locations, dual-mode of broadband services in Western Russia. operation also delivers significant failover Satellite Eutelsat plans to launch new commercial capabilities with automatic switching to services in the region in July using the the secondary service should the terminal Updates new Express AMU1/Eutelsat 36C satellite. detect that its primary communication The satellite’s high throughput payload service is unavailable. The Explorer 540 comprises 18 Ka-band beams delivering LTE Modem is optional and integrates continuous coverage of Western Russia, into the back of the Explorer 540 BGAN from the Arctic coastline to the Caspian M2M terminal. Cobham Satcom plans to Sea. introduce the LTE modem later this year.
Cobham Satcom’s Explorer SpeedCast, MCN Sign 540 BGAN M2M Terminal MOU to Create Global Gains Inmarsat Type Maritime VSAT Service Approval SpeedCast International and Beijing Marine Communications and Navigation Cobham Satcom has started shipping (MCN), a subsidiary of the China its new Explorer 540 Broadband Transport Telecommunications & Global Area Network (BGAN) terminal Information Centre (CTTIC), have signed for Machine-to-Machine (M2M) a Memorandum of Understanding communications, following Inmarsat (MOU) through which they will form Class 2 Type Approval and Inmarsat a strategic partnership for worldwide
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SAMENA TRENDS _ APRIL 2016 maritime coverage. The companies IBM and Ellation debated what it takes IBM’s Cloud Video Services Unit and plan to integrate MCN’s VSAT to make a new OTT service successful. CEO of Clearleap. IBM is supporting network in the Asia Pacific with Internet-enabled distribution methods customers such as HBO, Lionsgate SpeedCast’s global VSAT networks have opened the doors for content and Comic-Con on video streaming to provide global connectivity. This providers to reach audiences without services. Jarratt said consumers expect partnership is expected to provide necessitating the use of satellite or to access OTT content everywhere, seamless connectivity for both MCN cable, effectively lowering this barrier including newer devices such as and SpeedCast customers wherever to entry. The introduction and success Sony’s PS4 and Microsoft’s Xbox they are, as well as to provide a wide of OTT platforms like Netflix, Hulu, One, and that they expect to access portfolio of applications enhancing Amazon, YouTube and an ever-growing it anywhere geographically. Panelists productivity, crew welfare and number of others, has spurred on were circumspect of whether or not safety. SpeedCast will assist MCN even greater interest in new business established broadcasters could make in expanding its infrastructure to models. Panelists cautioned, however, the jump to OTT. That does not mean, provide service coverage in the South that getting into the OTT business however, that new content owners China Sea, which will be integrated to requires careful planning. “We see a are not looking to satellite and cable SpeedCast’s global network. MCN will lot of services, at least at this moment, as effective means of distribution. also be able to leverage SpeedCast’s that are launching and then are Marmel said content owners are network of field engineers located in ‘floating out in the ocean,’ and don’t pursuing alls kinds of ways to monetize key ports around the world. “MCN know what they need to do to acquire, valuable assets, including diverse has a strong leadership position in engage and retain customers,” said means of sending content. Perhaps the Chinese market and together we Arlen Marmel, VP of marketing and unexpectedly, the explosion in OTT will be able to provide high quality distribution at Ellation. I think it is popularity has not correlated directly to broadband services to their customers really an end-to-end experience. If you a decline in viewers watching content globally. This partnership may also look at the traditional value chain, you on televisions as opposed to other expand into other mobility markets need all the capabilities of product, devices. Ferrone cited a Hulu study where both companies will be able to technology, marketing, distribution that found PC viewers are shifting leverage each other’s strengths,” said and of course content programming. I over to using televisions for streaming, Pierre-Jean Beylier, CEO of SpeedCast. think there are a lot of key pieces that making TV-connected streaming go into it.” Ellation counts AT&T and the devices more popular. As media Chernin Group as investors, and owns companies determine if and how to OTT Players Debate what the popular Anime streaming service go OTT, David Simon, VP of inventory it takes to be Successful Crunchyroll. Marmel listed having the acquisition at AOL, encouraged them right technology, means of discovery, to experiment and trial new methods Leaders in the Over-the-Top (OTT) personalization and recommendation aggressively. He said AOL has done video market agreed at the NAB Show in engines as some of the top requisites this by pushing out original content Las Vegas, Nev., that though nonlinear for having a successful OTT service with third party OTT services, trying media has exploded in popularity, today. “What we’re seeing is the new concepts with mobile content making a profitable business model need to have a strong platform that and bringing in licensed content from is still a hefty challenge. Speaking at is as competitive as you can be with other companies. The goal, he said, the conference’s “To Stream or Not Netflix, which is very hard to do if you is to understand why failures happen Stream: What Content Owners Should are building things in house,” added and to learn from them very quickly. Consider When Going OTT” on April Braxton Jarratt, general manager of 18, representatives from AOL, Roku, Manx Telecom and Globalstar partner to develop integrated cellular and mobile satellite service Manx Telecom has announced an alliance with Globalstar Europe to develop EMN, a new multiple technology system that it hopes will be ‘the world’s first communications service to switch between multiple cellular networks and a direct-to-user (DtU) mobile satellite network.’ A press release confirming the development noted that, using Globalstar’s Low- Earth Orbit satellite constellation, EMN is intended to be a ‘bring your own device’ solution that will enable users to communicate as normal with their existing devices, but with ubiquitous nationwide coverage via
page_72 satellite updates
SAMENA TRENDS _ APRIL 2016 satellite operations. With the service growth of the industry throughout PIM on antennas can disrupt networks utilizing Manx Telecom’s Smart SIM the Middle East. du’s media platform by creating signal interference. Low– technology, it has been claimed that enables seamless content distribution PIM antennas minimize this effect. when a user’s signal level begins to over satellite through its Samacom Walton Hot Air De-Ice systems heat weaken due to the limited reach of a Teleport, and Over The Top (OTT) the entire antenna reflector uniformly, carrier’s coverage or disappears due through the datamena ICT hub. which minimizes reflector distortion to a natural or man-made disaster, For the first time, Broadcasters can that can cause signal problems, even connectivity will be automatically manage all of their distribution from more so at Ku-, and Ka-band. “The handed over to another mobile one platform in the region, which very nature of this type of system network within range. If a terrestrial simplifies the operation and increases not only requires special RF and network is not available, network their control over their content. The structural design but also extremely connectivity would then be transferred platform has established itself as a hub sensitive installation and operational onto Globalstar’s system. One of for content distribution in the region constraints,” said Bill Anton, president the first services to be developed as it empowers various members and CEO ASI. “By thermally bathing by the new alliance, and supported of the Media ecosystem - including the backup structure and panels in a by specialist technical consultancy broadcasters, telecom and cloud homogeneous manner, the Walton firm Intelcomm, is FRAN, which the service providers, as well as content De-icing will help support Low PIM firms involved claim will enable all owners and vendors - to meet, connect operation for many years.” first responders to continue making and exchange services amongst and receiving calls in the event that one another. “At du we are actively cellular networks become unavailable. diversifying our business by pursuing GPS OCX Passes First Pointing to the fact that previous new revenue streams for the benefit of Qualification Test attempts to achieve this have included entire communities. We are providing Raytheon, prime contractor for the U.S. using satellites as ‘backhaul’ to deliver a simple solution for our customers Air Force‘s Global Positioning System signals to terrestrial masts, they to reach their end-customers. By Next Generation Operational Control highlighted the fact that as EMN’s DtU focusing on the customer rather than System (GPS OCX) announced April approach connects users directly via on the technology, we are evolving our 12 that the ground segment system satellite, this means it is not dependent own business model and ultimately passed the first formal qualification test on the reach and integrity of terrestrial innovating the experience for our milestone on March 4. Working with infrastructure. Manx Telecom and customers. This win is testament to the the Air Force, Raytheon completed the Globalstar are reportedly targeting fact that we are getting it right, and Configuration Item Qualification Test a trial service of FRAN this summer we will continue to pursue the path (CIQT) milestone for the Launch and ‘involving parties from the emergency to excellence in the future,” said Abou Checkout System (LCS), which provides services community’. Commenting on Moustafa - Vice President Enterprise launch and early orbit checkout the matter, Jay Monroe, chairman and Managed Services & datamena. The capabilities for the modernized GPS 3 CEO of Globalstar, was cited as saying: Digital Studio Awards bring industry satellites and implements 77 percent ‘The EMN solution, incorporating professionals together and showcase of the cybersecurity capabilities for our reliable satellite network, will industry excellence for the TV, film the overall OCX program. Raytheon help ensure that first responders can and broadcast production sectors in and the Air Force conducted the continuously communicate and help the Middle East. This year’s edition testing in a representative operational them perform their significant roles attracted over 300 senior figures from environment with a government- more effectively.’ Gary Lamb, CEO of the region’s studios, broadcasters, provided GPS 3 satellite simulator. Manx Telecom, added: ‘Together with pre-production and post-production GPS OCX is one of the Air Force’s our partners, we intend to show that facilities. du was previously awarded most troubled programs and has satellite communications, combined the Satellite Services Provider of the been the subject of public criticism with Manx Telecom’s flexible Strongest Year for 2013 and 2014. by Department of Defense (DOD) Signal SIM technology, can provide leadership. According to the much-needed balance and backup Alpha Satcom Selects Pentagon’s Selected Acquisition to the emergency communications Report, OCX costs rose $586 million, architecture and dramatically increase Walton De-Ice for or 16 percent in 2015, mainly due to overall reliability.’ Earth Station Weather cost overruns. “The completion of this Protection test milestone validates the maturity of the OCX launch and checkout system,” du wins best Satellite Alpha Satcom Inc. (ASI), a provider of said Bill Sullivan, GPS OCX program satellite ESA solutions, has selected Services Innovation of director for Raytheon. “As a result Walton De-Ice, a designer and the Year Award of strong collaboration with the Air manufacturer of satellite Earth Station Force, we were able to demonstrate du has been awarded the best Satellite Antenna (ESA) weather protection the system’s performance and increase Services Innovation of the Year award solutions, for an installation at a confidence in the program’s path at the 12th annual Digital Studio major satellite broadcast facility. ASI is ahead.” The next major milestone is Awards held recently at Conrad Dubai. designing, fabricating and supplying GPS OCX’s Factory Qualification Test Last year, the UAE telecommunications a 9-meter, Ku-band, low Passive (FQT), which will be at the integrated company integrated its Broadcast Intermodulation (PIM) antenna with system level and is scheduled to occur and Telecom assets to create a world- especially challenging RF and structural this summer. class media platform and support the design requirements for a customer.
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Satellite Internet comprehensive testing program to hardware. The service limits the demonstrate that the devices meet number of mission configurations and Connects Three UK NASA EEE-INST-002 Level 1 reliability uses pre-qualified radios to eliminate Villages for Government and performance standards, derived most costs associated with pre- Pilot Program from the MIL-STD requirements for mission configuration. SSC Infinity also comes with a Web-based customer London-based Internet Service Class S and Class K qualifications. interface for pass scheduling, and Provider (ISP) Satellite Internet KCB Solutions conducted five test SSC technical operations staff are has connected the third and final procedures on Wolfspeed’s 25W GaN- available 24/7 to augment mission village selected to take part in a U.K. on-SiC HEMTCGH40025F and their operations during critical maneuvers. government-funded Market Test Pilot 25W 2-Stage X-band GaN Monolithic SSC Infinity includes streamlined (MTP). The company established Microwave Integrated Circuits (MMIC) service level agreements that come high-speed satellite connectivity CMPA801B025F devices, which with standard terms and conditions at Broomfield in North Somerset, Wolfspeed manufactures using its and numerous pricing plans based on following deployments in Luxborough 0.4µm G28V3 fabrication process. Both priority, antenna size, availability and and Simonsbath, also in Somerset, last devices demonstrated no significant RF bandwidth usage. Adjustable service year. Working closely with Connecting performance change after undergoing and priority levels minimize the cost Devon & Somerset (CDS), Broomfield all the test procedures, including of services, according to the company. Parish Council and the wider exposure to a cumulative dose of community, Satellite Internet provided radiation exceeding 1Mrad, according to the company. “This successful 24 properties with broadband Zetta Jet Equips with connectivity speeds of up to 25Mbps testing demonstrates that Wolfspeed’s within seven weeks. Previously, these GaN foundry process is capable of Rockwell Collins for Ka properties had broadband speeds producing devices that meet these and Ku IFC below 2Mbps. The MTP project is demanding reliability standards. Our customers now have the ability to Private aviation company Zetta Jet part of a wider government program will enable In-Flight Connectivity involving six other deployments across specify our GaN RF devices in the most critical aerospace, military, and (IFC) through ViaSat Yonder over Ku- the U.K. in order to assess which band and Inmarsat Jet ConneX (JX) technologies and commercial models satellite electronics systems,” said Jim Milligan, RF and microwave director, over Ka-band with Rockwell Collins’ are best suited to deliver superfast ARINCDirect. Zetta Jet claims to be the broadband to the hardest-to-reach Wolfspeed. “Our proven GaN-on-SiC technology enables design engineers first business jet provider in Asia to offer areas. Satellite Internet’s project uses a high-speed connectivity across its fleet Satellite Distribution Node (SDN) and to make smaller, lighter, more efficient, and more reliable solid-state power of aircraft. The new contract expands a Wi-Fi head-end installed at a central Zetta Jet’s relationship with Rockwell location. The broadband connection is amplifiers than are possible with conventional Traveling Wave Tube Collins, which is currently using a then supplied to end-users via a Fixed number of ARINCDirect’s integrated Access Wireless (FAW) network, while Amplifiers (TWTAs) or those designed with Gallium Arsenide (GaAs) devices.” services. The system will enable flight properties unreachable by wireless planning, flight operations scheduling have an individual Direct-to-Home and cabin connectivity for Zetta Jet. (DTH) dish installed. Households Swedish Space Corpora- that signed up to the trial received substantially increased broadband tion Launches SmallSat Central American Asso- speeds, leading, so far, to more than Ground Segment Solu- ciation for Aeronautics 60 percent of residents retaining the tion service on a normal commercial basis and Space Crowdsourc- Swedish Space Corporation (SSC) has following the end of the trial period, unveiled SSC Infinity, the company’s ing First Satellite Project according to Satellite Internet. The new ground operations service The Central American Association program is based on SES Techcom’s designed for small satellites and for Aeronautics and Space (ACAE) is Astra Connect For Communities constellations. SSC Infinity consists of crowdsourcing $75,000 to complete model. a range of highly automated services what it hopes will be the first privately that use full-motion antennas in the funded satellite built in Central Wolfspeed GaN RF 5-meter or smaller class. The antennas America. The spacecraft, a 1U CubeSat are optimized for communication with called Irazu, is the flagship project of Devices Achieve NASA small satellites and constellations, the Costa Rica-based organization, and Standards for Satellite and can be augmented with larger is designed to bolster environmental and Space Systems antennas when needed. SSC Infinity monitoring in the region. ACAE is intentionally funding the Irazu Wolfspeed, a Cree company, has uses a network of global ground satellite, which has a total program completed testing of its Gallium Nitride stations to enable frequent satellite cost of $500,000, through private on Silicon Carbide (GaN-on-SiC) Radio contacts for Telemetry, Tracking and means. Carlos Alvarado, president Frequency (RF) power transistors to Command (TT&C) and data download of ACAE, told Via Satellite that the demonstrate compliance with NASA with low-latency data recovery. organization chose to crowdsource reliability standards for satellite and To support CubeSats, SSC Infinity in order to include the public and space systems. With partner KCB makes use of normal configurations cultivate interest in the satellite Solutions, Wolfspeed conducted a and standardized ground system industry across Central America. “We
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SAMENA TRENDS _ APRIL 2016 think this is a very powerful message CubeSat, and will share it online design life with the ability to perform for the community,” he said. “This is through a special website for the numerous dockings and undockings not a project that is funded by the public, students and researchers. ACAE during its life span. “There is a vital government; this is a project that is is also collaborating with Costa Rica’s need to service fully functional but funded by the people. We decided to Ministry of Science, Technology and aging satellites in both commercial establish a goal of $75,000 funded by Telecommunications, and Ministry of and government markets. Backed by the people. So far, [as of] yesterday, the Environment and Energy to make the our continued investment, today’s campaign reached $48,000. We have best use of the scientific data corralled announcement signals that we are six days left for finishing the campaign from Irazu. Measuring forest health just getting started in expanding our and we are sure we will finish the could, Alvarado said, help Costa Rica Commercial Servicing Vehicle (CSV) goal.” Founded in 2009, ACAE works reach its national goal of becoming the fleet to provide a diverse array of in- with public and private entities to first carbon-neutral country by 2021. space services in the future,” said David promote aerospace developments “The objective of this measurement Thompson, Orbital ATK’s president and in Central America. So far the is that if you have the forest biomass CEO. Orbital ATK’s vision is to establish organization has conducted projects over a period of time, you can correlate a fleet of servicing vehicles that can such as launching stratospheric this information to CO2 quantities. address the diverse servicing needs of balloons and worked with companies This is very important because geosynchronous satellites as well as like Ad Astra Rocket Company, the scientists and decision makers need perform other services such as repair owner of which is of Costa Rican and to know how much CO2 is now being and assembly. Complementing the American descent with a background sequestrated by the forest plantations inaugural contract, Intelsat will also as a NASA astronaut. The goal of the that are funded by the government,” have the option to service multiple Irazu project is to demonstrate how he explained. satellites using the same MEV. space technology can benefit people’s lives in the region. Marco Gomez, Irazu project director at ACAE, told Intelsat Announces Five- Boeing Finishes Final Via Satellite that the CubeSat will act Year In-Orbit Servicing TDRS Satellite for NASA as a communications platform for Agreement with Orbital Boeing has completed, and delivered a network of ground-based sensors ATK to storage, the last in a series of used to measure forest biomass. He communications satellites for NASA’s Intelsat and Orbital ATK have said ACAE formed the Irazu mission Tracking and Data Relay Satellite announced a new satellite life to support the Costa Rica Institute of (TDRS) constellation. TDRS M is extension service agreement where Technology’s (TEC’s) climate change the sixth Boeing-built satellite for Orbital ATK will extend the life of an research. Much of the school’s studies the NASA network providing high- Intelsat satellite by five years using the consist of placing sensors in remote bandwidth communications to company’s Mission Extension Vehicle ecosystems of the country to collect spacecraft in Low Earth Orbit (LEO). (MEV). Orbital ATK will manufacture, data on tree growth, soil moisture, Programs using the system include test and launch the first Mission precipitation and other measurements. those supporting human space flight, Extension Vehicle, MEV 1, based on the “The researchers leave the sensors in the International Space Station (ISS), GEOStar platform, and will conduct in- the forest and check on them every the Hubble Space Telescope, the Earth orbit testing to validate the spacecraft. three months to collect the data. Observing System and several launch Launch is currently slated for 2018, with Sometimes the sensors are damaged vehicles. TDRS M is part of the second mission extension service for Intelsat or stolen, resulting in loss of data and block of Boeing-built TDRS spacecraft. beginning in 2019. “Given the size equipment. The Irazu project wants to The company delivered the first three of our satellite fleet, any technology solve this problem by using a satellite (TDRS H, I and J) from 2000 to 2002. that enhances our in-orbit flexibility to transmit the data daily to TEC. The The first two satellites of the second allows us to be more responsive to important thing to understand about block (TDRS K and L) launched in 2013 our customers, such as extending this project is that it is a technology and 2014. Boeing completed this last the life of a healthy satellite so that it demonstration, meaning that we want satellite, TDRS M, ahead of the contract can be deployed for a late-breaking to show that the system works and schedule and within budget at the end opportunity at another orbital location then apply it on a bigger scale. In the of 2015. NASA has given Boeing its or maintaining service continuity future, we would like to have sensors formal consent to store the satellite at before the arrival of new technology. not only all around Costa Rica, but the company’s satellite development We have actively supported in-orbit around Central America,” he said. For center in El Segundo, Calif., until it servicing from its inception, and are Irazu communications, ACAE has a is ready for deployment. TDRS M is proud to pioneer with Orbital ATK on remote station located in Los Chiles expected to launch on a United Launch this game-changing innovation,” said de Alajuela, in northern Costa Rica, Alliance (ULA) Atlas 5 rocket in 2017. Stephen Spengler, CEO of Intelsat. and a ground station is located in the “Boeing’s advanced TDRS satellites Controlled by Orbital ATK’s satellite TEC campus in Cartago. Gomez said provide NASA with greater bandwidth operations team, the MEV 1 uses a the Radio Club of Costa Rica (RCCR), at an affordable cost, helping them reliable, low-risk docking system that a non-profit, is assuming responsibility provide additional capacity for this attaches to existing features on a for the technical aspects of the ground critical communications relay network,” customer’s satellite. MEV 1 provides stations such as design, construction said Dan Hart, vice president at Boeing life-extending services by taking over and testing. Alvarado said TEC staff Government Satellite Systems. “We are the propulsion and attitude control will process data collected from the continuing to invest in technologies functions. The vehicle has a 15-year
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SAMENA TRENDS _ APRIL 2016 that could enable communications for Pooling, Maritime Solutions, and satellite technologies. “We are at the future NASA near-Earth, Moon, Mars Auto-Acquire Antennas to support ad- cusp of this exploration. We need to and deep space missions.” hoc remote broadband. get our house in order in terms of identifying this capability,” she said, tellingly. The theme of the panel was Ooredoo and Arabsat UK Government Ready very much getting more capability for Sign Major Agreement to Embrace Satellites Far less. Geoff Roberts, CEO at Democrata on Satellite Communica- More said that thanks to advances in CubeSat and micro-sat technology, tions Small satellites could open up new the barriers to entering the satellite Ooredoo and Arab Satellite business models for governments market “are more or less disappearing.” Communication Organization and other interested parties. This was However, he believes the industry (Arabsat) have signed a major one of the key findings of the “Data needs to do a better job of educating strategic partnership agreement that from Satellite Constellations” panel the government and others about will see the two leading companies at the Satellite Innovation Congress satellite’s latest capabilities. “Data is work together to develop new satellite held in London April 7 and 8. One the new oil,” he said. “It will fund the services for customers. Under the of the main speakers on the panel economy in the future. There is an terms of the agreement, Ooredoo and was Farhana Amin, Earth observation enormous amount of education to be Arabsat will review the current satellite program lead at the U.K.’s Department done [by the satellite industry]. It seems projects they have in progress, with a for Environment, Food and Rural a bit Star Trek, but it is not. Data from view to collaborating on technology Affairs (DEFRA). She admitted the satellites has many uses. Everyone can and design, and will aim to work U.K. government is still getting to benefit from it. The education piece is together on future projects to deliver grips with what satellite technologies the thing that most needs to happen.” cutting-edge satellite services. In can offer an organization like DEFRA. The Space Innovation Congress also particular, they will look to collaborate “There are multiple requirements in played host to a number of new on new VSAT (Very Small Aperture the U.K. government which could be companies that are looking to make Terminal) services, as demand rises helped and solved using satellite or an impact in the space sector. One for the innovative technology in Qatar remote sensing data. It is fantastic such company is Leaf Space, which and across the region. VSAT services, that more people will enter in the wants to simplify access to space for which provide Internet services space sector. From the public sector, microsatellite operators. It is working via a small satellite dish, are being we have a real dilemma. We are not on a next generation ground station increasingly deployed for a wide range experts. We need to work with data network dedicated to nano, micro of applications, including point-of- and service providers to find out and small satellites. Giovanni Pandolfi, sales transactions, data processing, what is out there, what is coming, and CTO at Leaf Space, said if the company and high speed Internet access for figure out ways of delivering better was successful in its aims it would sites and offices in remote locations. applications to help us with regulatory “reflect well on the industry” as well Waleed Al-Sayed, Chief Executive and monitoring requirements. The as lower the price of access to space Officer, Ooredoo Qatar, said: “Ooredoo satellite industry needs to educate the a lot more going forward. With the continues to grow our global network public sector also,” she said. Amin is U.K. government and others far more of world-class partners in every area, hopeful that the satellite industry and ready to embrace satellite capabilities, as we look to increase the range and the U.K. government can develop a the potential rewards are clearly there. diversity of ICT services that we offer. “mutually beneficial” relationship. She As one of the world’s top satellite said the U.K.’s Chief Scientific Advisor operators, Arabsat has developed a is keen on exploring new business Thuraya Inks Maritime reputation for delivering cutting-edge models involving government and Support Agreement with services, so we see strong potential satellite. “We want to come up with Seven Seas Electronic to work with them to deliver robust new ideas where we can come up with solutions for our customers.” Khalid new services and applications,” she Thuraya Telecommunications Balkheyour, President and CEO, added. “We can help shape policy and Company has announced an Arabsat, said: “We are very pleased guidelines for these services.” While agreement with Singapore-based to be working with Ooredoo to admitting that not all information Seven Seas Electronic to offer technical collaborate on the development of can be made publicly available, Amin support to Thuraya’s service partners new and improved satellite services. believes the U.K. government can in the Asia Pacific. The new service As companies look for reliable global help companies make the most from agreement aims to speed up response connectivity and connection, we see new constellations. Within the U.K. times for service partners needing vital significant opportunities for Ooredoo government, Amin said they have the maintenance work. At agreed rates, and Arabsat to be their provider of need for a lot of data. She highlighted Thuraya’s service partners can have choice.” Ooredoo offers one of the the need for real-time data when around-the-clock access to Seven most advanced portfolio of satellite there are floods as one very practical Seas’ fully-trained engineers, helping services of any operator in the region, example. The U.K. government has set- avoid extensive downtime in the event as it continues to build its position up a working group to see how best it of equipment problems onboard as a leading integrated ICT provider. can use satellite going forward. Amin vessels. “Our maintenance partner In particular, the company has seen admits the U.K. government needs to will store spare equipment for vessels strong demand for advanced services figure out the questions that it needs in locations that are difficult for our in recent months such as Bandwidth to ask in order to get the most out of partners to reach. In the long-run, this
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SAMENA TRENDS _ APRIL 2016 new agreement will save companies satellite and VSAT operators around the “nontraditional” operations that time and money as support will come the globe as it can run any application have grown in popularity. Citing the from within the region,” said Randy on any topology. Batelco’s diverse 1967 Outer Space Treaty, which more Roberts, chief innovation officer at and resilient facility also features than 100 countries have since ratified, Thuraya. The agreement comes after seamless integration with terrestrial Nield said signers of the treaty have the launch of Atlas IP, a Thuraya networks and provides full support agreed to authorize and supervise the maritime terminal that enables for satellite and VSAT operators to activities of non-governmental entities Internet access, enhanced connectivity, streamline their operations efficiently. from their countries in outer space. and high-speed onboard efficiency. Batelco encourages these operators In the U.S., different agencies handle According to Thuraya, the company’s to diversify their service offerings, as different aspects of this responsibility. maritime business is experiencing the teleport allows them the ability The FAA handles launch and reentry, the substantial growth, particularly in Asia. to offer more services to end-users. Federal Communications Commission The new maintenance service contract Through this, Batelco aims to facilitate (FCC) covers radiocommunications, comes into effect following an increase the operators’ growth. Batelco Chief and NOAA addresses remote sensing. in regional customers signing up with Global Officer Adel Al-Daylami said NASA and the Department of Defense the satellite operator. that Batelco is proud to be an official (DOD) are not regulatory agencies, Industry Patron with the WTA. “This and Nield said neither do they want prestigious membership is testament to be, but some oversight of the Batelco reinforces Bah- to Batelco’s reliable connectivity and commercial industry has fallen on rain’s ideal location bespoke solutions provided to the their shoulders, particularly the DOD. for global satellite op- satellite and VSAT operators,” added Through the Air Force’s Joint Space Mr. Al-Daylami. Operations Center (JSpOC), much erations by joining the of industry receives updates about World Teleport Associa- collision risks between satellites and tion (WTA) SmallSat Boom Outpac- space debris. This, however, falls outside of JSpOC’s primary mission to Batelco, the region’s prime teleport ing Regulators in the US serve U.S. military needs. Nield said services provider, continues to U.S. regulators are grappling with the FAA is open to handling regulatory provide world-class teleport services how to ascribe the most appropriate requirements for satellite operators, to satellite and VSAT operators, policies for small satellites as their particularly of SmallSats, to both with the company’s fully equipped proliferation becomes more significant. fill the void that no other agencies teleport placing Bahrain on the Agency representatives and private are in, and to address aspects of global map of satellite operations. sector executives, the latter of which managing the space environment that Through its achievements, Batelco have already orbited or plan to orbit fall outside the domain of agencies has been welcomed by The World hundreds of SmallSats, discussed ways that are handling them today. “The Teleport Association (WTA) as to craft the best regulatory regime FAA has expressed our willingness to an Industry Patron Member. The to preserve and protect the space take on responsibility for overseeing support of Industry Patrons such environment at the Washington Space commercial activities in space that are as Batelco makes possible WTA’s Business Roundtable in Washington, not already regulated by the FCC or research, publishing and cooperative D.C April 7. Government officials NOAA, should the White House and development programmes. Batelco admitted off the bat that they are Congress decide that that would be also recognizes that the satellite currently playing catch-up with the appropriate,” he said. “The goal would industry is a key catalyst for the commercial sector. U.S. startups, be to enable those new nontraditional Bahraini economy, as it services a universities and other players have operations in space without creating number of verticals including maritime, introduced swarms of SmallSats in Low a huge new regulatory burden that oil and gas, enterprise and broadcast. Earth Orbit (LEO) well ahead of a fully would make U.S. companies less ”It is an honor to welcome Batelco rounded out regulatory framework for competitive, or in the worse case, to the World Teleport Association all of their operations. “From the State would actually drive them off shore as an Industry Patron Member,” said Department perspective, we work on in search of a more business-friendly Membership Director Randall Barney. a daily basis to push forward possible regulatory environment.” Nield said “Patron Members are instrumental norms of responsible behavior in there is much greater awareness of in their support of WTA’s various space so we can work to catch up to the “contested” and “congested” space research reports, which are beneficial the present space environment,” said environment today, but reminded that to the entire WTA membership and Mallory Stewart, deputy assistant debates on some of these issues go the industry as a whole.” Batelco, the secretary for emerging security back for several years now with limited Middle East’s prime teleport services challenges and defense policy, tangible progress. In light of this, provider, provides world-class teleport Bureau of Arms Control, Verification representatives of new commercial services to satellite operators. Batelco’s & Compliance at the U.S. Department operators said they have borne the teleport boasts a 30,000 square metres of State. George Nield, associate mantle of handling many of their affairs of operational area with partners administrator of commercial space in space as their own responsibility. gaining access to the telecom’s MPLS, transportation at the Federal Aviation SDH national, international networks Administration (FAA), said the United and Internet uplinks. The teleport States’ current regulatory framework presents an optimum choice for was not designed to handle some of
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Inmarsat Forms Joint band compatibility to the core antenna installation from ACJC. Delta Air Lines architecture, with target certification will be the first customer for such Venture with MCN to for Ka-band capability in early 2017. installation and expects delivery of Bring Cockpit, Passenger The design of the Airconnect Global its first 2Ku-equipped A350 in 2017. Connectivity to China Ka antenna is compatible with GEE’s Additionally, Delta will be the first U.S. current installation architecture and airline to launch domestic 2Ku service Inmarsat has signed a Heads of Terms Supplemental Type Certificates (STCs), as its first narrow-body aircraft takes (HoT) agreement with Beijing Marine and meets the requirements for future flight later this month. Communication and Navigation linefit installations, according to the Company (MCN), which will lead company. to the creation of a joint venture to Measat Broadcasting provide aircraft cabin and cockpit TERN International in connectivity solutions in China’s fast- Northrop Grumman growing commercial aviation market. Ultra-HD Across Asia The companies expect to sign the final Competing for Future Pacific agreement later this year. Inmarsat GPS 3 Satellite Contract Measat Satellite Systems has reached would provide its Global Xpress (GX) A Northrop Grumman engineer an agreement with Television Aviation and SwiftBroadband-Safety working on an Advanced EHF payload. Entertainment Reality Network (SB-S) services through the joint Photo: Northrop Grumman International (TERN International) to venture. GX Aviation, the satellite [Via Satellite 04-06-2016] Northrop distribute the Insight UHD channel. operator’s broadband In-Flight Grumman has submitted a proposal The operator will use the global beam Connectivity (IFC) solution, will launch to the United States Air Force for the on Measat 3a to deliver the channel to this year enabling both passenger Wi- next-generation Global Positioning pay-TV operators across Asia Pacific Fi and operational connectivity for System (GPS) 3 program. The Air Force and Australia. The Measat 3a global aircraft that equip. Air China is set to is looking to update the GPS system, beam also covers the Middle East and trial GX Aviation this year. SB-S is a which has been delivering precise Eastern Africa. This is the second Ultra- flight deck communication platform global position, navigation and timing HD channel distributed via the 91.5 that combines L-band satellite services worldwide for more than degrees east video neighborhood. connectivity with advanced avionics, two decades. Northrop Grumman’s Insight UHD features original Ultra-HD enabling airlines to meet the ICAO proposal is based on a navigational content co-created with production mandate for sub-15-minute tracking payload prototype built and tested houses, ranging from entertainment of all aircraft, Civil Aviation Authority of in 2015 and a heritage space vehicle, to extreme sports, and from game China (CAAC)’s four-minute mandate, proven to operate in Medium Earth shows to cinematography. Thema is Automatic Dependent Surveillance- Orbit (MEO). In addition to current GPS marketing the channel in Asia. Broadcast (ADS-B) and Electronic 3 capabilities, the company’s payload Flight Bag (EFB) updates. “China is demonstrated enhanced transmission one of the world’s fastest-growing power for the military code, a critical KSAT Signs Ground commercial aviation markets and when capability for operating in regions of the proposed joint venture with MCN Station Agreement with the world where jamming is prevalent. is finalized, the new company would EUMETSAT The Air Force plans to award up to provide the country with access to three $5 million study contracts in the Kongsberg Satellite Services (KSAT) the most advanced cockpit and cabin third quarter of 2016, under the GPS 3 has signed an expanded and extended connectivity solutions available today Space Vehicles 11+Phase 1 Production agreement for ground station support and in the future,” said Leo Mondale, Readiness Feasibility Assessment for the European meteorological president of Inmarsat Aviation. Request-for-Proposal (RFP). The study organization EUMETSAT. The contracts will run for 26 months, with organization is installing three new two additional six-month options, antenna systems at KSAT’s Svalbard GEE Expands Ka-band preceding a competition for 22 facility, which KSAT will maintain. The Capabilities to Airconnect spacecraft anticipated in 2018. antennas are for the MetOp Second Generation satellites, a continuation Global Antenna Platform of the existing operational weather Global Eagle Entertainment (GEE) has Airbus to Retrofit A350 satellite systems KSAT also supports. released a new Airconnect Global Fleets with Gogo’s 2Ku KSAT is beginning these services Ka high-speed antenna that will this year. According to the company, complement its existing Ku-band Gogo has partnered with Airbus Svalbard is particularly well suited for antenna systems. The company subsidiary Airbus Corporate Jet Center the Ka-band systems due to the dry developed the new antenna in (ACJC) to install its satellite-based 2Ku Arctic atmosphere. The agreement partnership with Quantenelektronische In-Flight Connectivity (IFC) solution on covers maintenance and site operation Systeme (QEST) and will offer Ku- and a retrofit basis onboard new Airbus for as many as five antenna systems Ka-band capability on a single antenna A350 aircraft. Previously, only first- total. platform. In 2015, GEE announced generation gimbaled antennas have the development of its Airconnect been available for the A350. Under this Global Ku antenna, which operates new agreement, airlines may elect to consistently at all latitudes on Ku add Gogo’s 2Ku system to the A350 on a networks. The expansion adds Ka- retrofit basis with a factory-authorized
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16th Global Symposium for Regulators (GSR) Sharm el-Sheikh, Egypt 11-14 May 2016
Today, technology is increasingly recognized as a pillar of social and economic development. And the value and impact of information and communication technology (ICT) is set to grow as new technologies – including the Internet of Things (IoT), 5G-enabled technology, and artificial intelligence – are the building blocks of tomorrow’s ‘smart societies’. Positive development can only continue and flourish with effective regulation and attention to policy in this ever-changing ICT landscape.
Now more than ever, regulators need to come together and develop innovative solutions to leverage new opportunities. Together, regulators and all technology players have the power to drive change and deliver transformative technologies and regulatory responses that bring real change to people’s lives.
ITU’s flagship event – the Global Symposium for Regulators (GSR) – isthe forum where regulators come together every year to discuss policy and regulatory challenges, opportunities and best practices. GSR is the world’s largest neutral platform for regulators to engage with other regulators, policy makers, and business leaders. GSR 2016 will be held in Sharm el-Sheikh, Egypt, from 11 to 14 May 2016 under the theme ‘be empowered, be included, building blocks for smart societies in a connected world.’
GSR 16 BE EMPOWERED, BE INCLUDED: BUILDING BLOCKS FOR SMART SOCIETIES IN A CONNECTED WORLD Sharm el-Sheikh, Egypt, 11-14 May 2016
Aim of GSR16 and beyond: Our promise it to recognize Regulators around the world have become more conscious and integrate emerging trends in regulation to maintain of the changing ecosystem and are aware that they need to GSR as the unique, neutral platform for regulators to adapt to the changing environment. From a time when they come so that they can keep a head start on regulation mainly focused on their creation as independent entities and create a feeding ground for collaborative opening monopolistic markets, to one where they became regulation. We want to give our Members the tools to active in promoting investment in infrastructure and share their experiences and expertise, and get ahead services development and overseeing budding competitive of the curve in terms of regulation, not only in the ICT/ markets, they now have many more issues at stake – they telecommunications sector, but also in terms of how have become 4th Generation Regulators fostering the ICT/telecommunications interacts with other regulation development of ICTs for economic and social development so that we can leverage our head start on regulation and increasingly interacting with other sectors. in a collaborative, 4th, and even 5th generation ICT regulatory environment. What is the Challenge: Today we are seeing a new opportunity arise because of the changing landscape, Entering Behavior: The evolution in the sector has where we are dealing with the Internet of Everything and yet brought about changes – there are new players on the see billions still unconnected, which also affects their ability market and discussions as to new and existing business to participate in the digital economy – socially, financially, models, new technologies, and new opportunities. and economically. As ICTs are recognized as the foundation
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SAMENA TRENDS _ APRIL 2016 upon which the pillars of economic and social Program development can grow, recognition has Wednesday 11 May 2016 PRE-EVENT DAY grown that we need ecosystems that include 09h00-12h30 Global Dialogue on Digital Financial Inclusion ICT/telecommunication 12h30-14h00 Lunch operators and service providers, but also health 14h00-16h00 Global Dialogue on Digital Financial Inclusion providers, educators, 16h00-16h30 Coffee banks and others as partners to connect 16h30-18h00 Chief Regulatory Officers Regulatory Associations Meeting (CRO) Meeting the world and create value for business. We need to work together to create an enabling Thursday 12 May 2016 regulatory environment between regulators 09h00-10h00 Opening Ceremony and other stakeholders 10h00-10h15 COFFEE BREAK/ PHOTO OPPORTUNITY across the sectors and 10h15-12h00 Leadership debate: Beyond 2020 - Challenges, Opportunities, Scenarios remove the barriers that This high-Level debate will examine hinder progress. We also need greater focus • Artificial Intelligence, smart Sensors, smart networks – where do we go from here? on standardization and • How to maintain trust in ICTs in an era of big data, Internet of everything, machine learning interoperability between and smart digital environments? borders and also • As things get smarter, will smart machines take over? between technologies. • How can consumers get smarter? The ability to offer secure and real time • What are the kind of policy and regulatory frameworks needed to ensure disruptive transactions on strong, technologies bring new opportunities for all in a sustainable manner? resilient ICT networks • Will it be business as usual? is essential to build consumer trust, and this 12h00-14h00 LUNCH / PRESS CONFERENCE also requires a focus on protecting privacy. TRACK 1 BE SMART: BUILDING BLOCKS FOR A SMART SOCIETY IN A CONNECTED WORLD Description of Sessions: 14h00-15h30 Session 1: A changing regulatory landscape: Collaborative regulation – how to We have designed GSR16 around the pave the road towards adoption of IoT, M2M? theme: BE EMPOWERED, BE INCLUDED: BUILDING Presentation of GSR Discussion Paper on Building Blocks for Smart Societies in a BLOCKS FOR SMART Connected World SOCIETIES IN A This session will explore ... CONNECTED WORLD, and have identified • Setting the context - impact (efficiency, QoS, resilience of infrastructure, and sustainability) various tracks to allow • Redefining collaboration along the value chain from infrastructure to services to institutions: participants to exchange smart infrastructure, smart transport, smart grid, smart delivery of services, smart health, on the challenges of smart financial services, smart education, smart businesses collaborative regulation • How does ICT link with and contribute to other sectors and what is needed in terms of in a digital, connected, smart society. In regulation – case study on smart energy/grids addition, information • Challenges – the case of energy efficiency for ICT development sessions will be held during coffee and lunch 15h30- 15h45 COFFEE BREAK breaks, including a cyber drill, and information sessions on key BDT Information Session on International Mobile Roaming Dialogue projects, programs and 15h45-17h00 Session 2: Digital Financial Inclusion – how to include the unbanked and initiatives. unconnected in today’s smart society? This session will be an interactive panel session on: • How to include the unbanked and unconnected in today’s smart society? • Collaborative Regulation to foster an enabling environment for digital financial services
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Friday 13 May 2016
TRACK TWO: TOWARDS A SMART DIGITAL SOCIETY
9h00-10h30 Session 3: Future Technology Developments: Opportunities, challenges and business strategies
Presentation of GSR discussion paper on Future Technology Developments and Regulatory Impacts This session will examine Future Technologies: Drones, nano-satellites, Wifi, M2M/5G (HetNet), Future cables, NFV, WebRTC • What are the requirements for future technologies? Reliability, latency, integrity and safety, openness, quality? • Preparing the regulatory landscape: what kind of regulation is needed and who’s in charge? • Spectrum as a tool for innovation – where do we stand post WRC 2015? What are the new frontiers? • 5G: what to expect? A revolution or evolution?
10h30-10h45 COFFEE BREAK 10h45-12h00 Session 4: Be empowered! What ICTs can do for you!
Presentation of GSR discussion paper on Digital Platforms in a Collaborative Economy This session will examine ... • What does the Ecosystem Look Like Today • Do Free Basic Services Empower Communities and Individuals? • Business and Investment Incentives and Sustainability in a Collaborative Economy – how the mass adoption of connected digital technologies and applications by consumers, enterprises, and governments is driving strategic and operational decisions and creating opportunities to empower citizens and business • How extending access must be accompanied by the development of relevant content and new services so that innovation and entrepreneurship can be fostered and local digital platforms and content can help develop local digital economies
12h00-14h00 LUNCH
Information session on Universal Service Reform Programme
14h00-15h30 Session 5: Be included!
Presentation of GSR discussion paper on Enablers for Smart Networks, Societies, and Individuals This panel discussion will examine … • Improving digital skills for new business opportunities/SMEs • Smart policies and regulatory measures: entrepreneurship in a smart, collaborative economy - monetizing apps and smart services, cloud services, networks, crowdsourcing – crowdfunding • What can regulators do to facilitate entrepreneurship in a digital economy?
15h30-15h45 COFFEE BREAK
Information Session on Let’s Roam the World
15h45-17h00 Session 2: Real Life impact of Smart Societies – How to maintain trust? This interactive debate will see panelists share their views on Privacy, Trust and Cybersecurity – the foundation for the development of our smart society (e.g., securing e-commerce/ financial transactions, digital identity)
Demo: Cyberdrill – illustration of what needs to be done when there is a cyberattack
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Saturday 14 May 2016
08:00-09:30 Director’s Breakfast (upon invitation only)
09h45-12h15 REGULATOR TRACK INDUSTRY TRACK GSR16 Best Practices Guidelines: Dis- Industry Leaders Debate – Impact of cussion and Adoption open innovation and new business mod- els on Collaborative regulation This session will address the GSR Best Practice Guidelines with a view to their Open innovation, shared resources, and adoption by regulators. networked business models are key com- ponents of innovations and new develop- Meet the Regulators – Exchange ments in most industries, including ICTs. Platform between regulators – e.g. Companies cannot develop and control Content, Telecoms, Financial Services, everything alone, but will use services from and Energy? other companies and open their own ser- vices to third parties. Success may depend Regulators will share their experiences more on how companies can be a hub in and expertise, not only in the ICT/tele- the ICT ecosystem than just on building communications sector, but also in terms and owning infrastructure. This session will of how ICT/telecommunications interacts allow participants to exchange on business with other regulation so that they can models, partnership models and regulation. define tools and guidelines to leverage their head start on regulation in a col- Industry Leaders Debate – Regulatory laborative, 4th, and even 5th generation KPIs ICT regulatory environment. This session will examine case studies on e-health, This session will examine Regulatory KPIs in electricity, content, and include regula- a 1st to 4th Generation Regulation Con- tors from financial sector, energy sector, text – ICT Regulatory Tracker as Basis for health sector and broadcasting. Discussion.
12h15-13h30 Way forward and closing ceremony: • Presentation of GSR16 Best Practices • Summary of Pre-event Workshops • Presentation of CRO and RA reports • Guru impressions
Moderator: Brahima Sanou, BDT Director Panelists: GSR past, present and future chairs Highlights Video
13h30-14h30 LUNCH
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HOST SPONSOR
TELECOM LEADERS’ SUMMIT 2016 19th May 2016
Challenges of the Digital Economy and the Stakeholders’ Need for Alignment of Priorities in a Better Connected World
Over the last three decades, the world has consistently The notable fact that information and communications witnessed the advent and growth of telecommunications technologies have not only aided the creation of goods and and computing linked phenomena, causing major shifts services, which have now become essential to the human and changes in economic activities across the world. living style, but have also catalyzed new paradigm shifts in For the last ten years, specifi cally, such phenomena how new goods, whether purely digital or not, are created, have been much more apparent to the eyes. Still over manufactured, distributed, traded, and consumed in our the past few years, many more tangible effects of such increasingly digital societies. phenomena have been observed, giving rise to the development of what is now referred to as the digital economy. Digital economic activity is based on the digital transformation of previously existing goods and on the emergence of purely new digital goods.
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and mutual contributions that lead to fruition of those priorities.
Moreover, it is imperative also to realize that in the absence of required reforms - the need for which has been firmly established by all the stakeholders from both private and public sectors, we must collectively bear responsibility for undermining economic growth and the potential for elevated standard of living of our people. Thus a much greater understanding of all facades and realities of the evolving world of telecommunications among all stakeholders is critically needed. And that is possible only if all stakeholders Taking the G20 economies as an Nonetheless, the business of digital are aware of each other’s priorities and example, it can be speculated that the development, given its central role in areas of both immediate and long- impact of digital economy may already the development of digital economies term focus. have reached or exceeded US$4 trillion. and the realization of smart digital In the SAMENA region alone, in 2013, societies, and with its myriad of the potential of economic impact due private-sector and public-sector Collective and all-inclusive to the adoption of digital services and stakeholders and complexities across participation across the decision- applications was approximated by all dimensions, now demands an making spectrum has become SAMENA Council to exceed US$1.3 unprecedented level of co-operation inevitable. trillion. Such approximations, needless and and sector-wide understanding it is to say, are founded on existence of stakeholder priorities. Without and availability of high-speed fixed collectively aided understanding of Leaders’ Summit: and mobile networks, affordable user such priorities and issues, which could terminals, innovative applications and only be addressed through cross- Objectives for 2016 content, and reliable and secure cloud stakeholder dialogue, it is no longer In this great period of excitement, based services. feasible to achieve true progress, save progress, investment planning, and time, realize operational efficiencies, a sense of urgency within the policy- meet national as well as international As the digital economy is dependent on making circles to advance digital obligations, and ensure a viable and digital infrastructure, there are pressing development, SAMENA Council feels sustainable future for both business issues that need to be overcome for that, with its new, dynamic leadership and socio-economic well-being, purely the digital economy to thrive, as many announced this month, and given its based on individualized priorities and nations step into the world of smart global leadership role in bringing values. private-sector in closer alignment with regulatory preferences, it is a matter of utmost importance that future decision-making among stakeholders be aided in the best manner possible. To this effect, Telecom Leaders’ Summit, an annual top-tier stakeholders’ meeting being organized since 2010 by SAMENA Council, an operator industry association.
Leaders’ Summit, in the past, have recorded tremendous success and top-tier participation from across the SAMENA region.
societies. Some of the issues revolve It is imperative to realize that around insufficient investments, individually-set priorities have a much lack of spectrum resources, archaic better chance of reaching fulfillment regulations, lack of measureable ICT if they are well-corroborated, policies, or sluggishness in digital subordinated to our collective will development, which may simply be to meet our digital agenda, and if specific to certain markets and regions, they are cross communicated for the given their socio-economic and geo- purpose of seeking common grounds political dimensions.
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Leaders’ Summit Over the Years
2015 2014 UAE UAE
2013 2012 ITALY HONG KONG
2011 2010 TURKEY UAE
It is the primary objective of SAMENA Council’s Telecom Leaders’ Summit to facilitate and drive such cross-stakeholder participation and open communication by bringing together business decision-makers, investors, policy and regulatory authorities, and global institution-level leadership, in order to open new avenues of progressive thinking and future planning for the benefi t of both the telecoms and ICT industry and the ultimate stakeholders – the citizens, the consumers.
Creating linkages between stakeholder priorities and improving stakeholder relationships are daunting tasks. However, SAMENA Council is well-equipped to execute such tasks and the Leaders’ Summit is a means to achieving progress toward this effect. This year’s Leaders Summit will delve into the following areas of discussion and efforts will be exerted to advance signifi cant post-gathering cooperative undertakings, bearing long-term positive impact for the telecom industry of the SAMENA region and beyond.
• Re-defi ning Priorities in Policy, Regulation, and Infrastructure Development • Necessities of the evolving market and relevant legislation & regulation • Viable areas of investment and stakeholder partnership to help reduce fi nancial burdens
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Our industry, the enabler of everything digital, has At another layer, it is only through close communication that experienced many evolutionary waves and continues to do all stakeholders would be able to align themselves toward so, with new telecommunications technologies emerging achieving both individual and collective success. In the from all corners of the digital ecosystem. More than 4 digital world, such success will be measured by the level of billion users of the Internet will be online in a matter of convenience, reach, inclusiveness, access to opportunities, months from now. Out of these, a wide majority, in one and physical routes leading to riches of life provided to form or another, will be using over-the-top platforms - a the common man. No smart society will function properly major disruption in the industry - to stay connected and without guaranteeing advanced-level services to its citizens; access user-generated data, among other content. no investment will fi nd its return without being of service to the people, its intended recipients. What we have created by now, is a world of ubiquitous connectivity, which is quickly transcending the bounds But where do we start from, and how can cross-stakeholder of human-to-human interaction and taking us into the willingness to cooperate be transmuted into tangible steps human-to-machine realm. Perhaps, such evolution is that would generate more revenue opportunities, without integral to the realization of smarter societies and more having to rely too heavily on archaic approaches that effi cient approaches that would offer improved insurance measure revenue success and failure only in terms of taxes of socio-political and socio-economic participation. and duties? Telecom Leaders’ Summit 2016 will be held in Dubai, UAE, on May 19, 2016. It will coincide with SAMENA Council’s ten-year anniversary, marking the beginning of a new era There thus exists a sore in SAMENA Council’s history as a regional telecom industry need for defi ning and association. pin-pointing what the It is hoped that the the SAMENA Council-aided understanding of stakeholder priorities would help real requirements in this promptly unearth development potential in this region and would help: region are, and what • Promote entrepreneurship in the ICT sector through region-specifi c approaches smart capital injection and incubation programs • Build knowledge capital through advanced ICT can be adopted through program stakeholder co-operation • Improve digital literacy through ICT integration in education, awareness and training programs and willingness to achieve • Encourage ICT usage among businesses through awareness much larger, far-reaching • Institutionalize measurement and monitoring mechanisms in the ICT sector digital development goals. • Improve healthcare quality and delivery through tele- health solutions • Enhance effi ciency of energy sector through smart Given the the efforts of many a government and participation grids and digital oilfi elds of the private-sector entities, including telecom operators, • Use ICT as a tool to enhance education various telecoms markets of the region have assumed the • Improve digitization of fi nancial services right direction toward achieving digital progress for the betterment of their citizens. In such a scenario, it is likely that • Invest in state-of-the-art transportation, among other as national development goals begin to achieve fulfi llment “smart city” services relative to developed nations of Europe and North America, • Institutionalize cross-sector collaboration to drive or other markets regarded as having been developed, digitization across sectors the possibility of introducing legislations and regulations • Promote ICT investments through the easing of inspired from other markets may also increase. Such a trend regulations and fi nancial requirements could undermine innate market dynamics specifi c to this region, and even more specifi c to each individual regional • Create investment friendly and futuristic business market, and may also prove to be detrimental to the environments sustainability of the business in markets of this region. We are already seeing a rising trend of over-taxation in many countries within and beyond the SAMENA region; among other sources of impedance that directly affect the will and the possibility of investment. There thus exists a sore need for defi ning and pin-pointing what the real requirements in this region are, and what region-specifi c approaches can be adopted through stakeholder co-operation and willingness to achieve much larger, far-reaching digital development goals. SAMENA Telecommunication Council Team
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