Quick viewing(Text Mode)

Samena Trends Exclusively for Samena Telecommunications Council's Members Building Digital Economies

Samena Trends Exclusively for Samena Telecommunications Council's Members Building Digital Economies

Volume 06 _ Issue 04 _ April 2015 SAMENA TRENDS EXCLUSIVELY FOR SAMENA COUNCIL'S MEMBERS BUILDING DIGITAL ECONOMIES

A SAMENA Telecommunications Council Newsletter

Articles

To cooperate, or to coordinate: alternative... Page 29

3 reasons telcos should care about environmental sustainability Page 54

Innovating against Adversity Page 61

The Networked Society: a new paradigm shift Page 63

New bands has never Exclusive Interview been more promising Khalid Ahmed Balkheyour with ARABSAT projects President and CEO Page 66 Arabsat Page 04

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

www.samenacouncil.org SAMENA CONTENTS VOLUME _ 06 _ISSUE _ 04_April_2015 TRENDS

The SAMENA TRENDS newsletter is wholly owned and operated by The REGIONAL & MEMBERS SAMENA Telecommunications Council UPDATES FZ, LLC (SAMENA). Information in the 09. Members News newsletter is not intended as professional services advice, and SAMENA Council 16. Regional News disclaims any liability for use of specific information or results thereof. Articles and information contained in this REGULATORY & POLICY publication are the copyright of SAMENA UPDATES Telecommunications Council, (unless 22. Regulatory News otherwise noted, described or stated) and cannot be reproduced, copied or 29. To cooperate, or to coordinate: printed in any form without the express alternative... written permission of the publisher.

The SAMENA Council does not necessar- 31. A Snapshot of Regulatory Activities in ily endorse, support, sanction, encour- SAMENA Region age, verify or agree with the content, comments, opinions or statements made 40. Regulatory Activities Beyond the in The SAMENA TRENDS by any entity SAMENA Region or entities. Information, products and services offered, sold or placed in the newsletter by other than The SAMENA WHOLESALE UPDATES Council belong to the respective entity 49. Wholesale News or entities and are not representative EDITORIAL of The SAMENA Council. The SAMENA TECHNOLOGY UPDATES Council hereby expressly disclaims any 03. 3 reasons telcos should care about and all warranties, expressed and im- 54. plied, including but not limited to any environmental sustainability warranties of accuracy, reliability, mer- chantability or fitness for a particular 56. Technology News purpose by any entity or entities offer- ing information, products and services in REGIONAL 61. Innovating against Adversity this newsletter. The user agrees that The SAMENA Council is not responsible, and The Networked Society: a new shall have no liability to such user, with PERFORMANCE 63. paradigm shift respect to any information, product or service offered by any entity or entities Consumer Satellite in this newsletter. The SAMENA Coun- 07. SATELLITE UPDATES cil’s only liability in the event of errors Services Revenue Growth 66. New bands has never been more shall be the correction or removal of the promising with ARABSAT projects erroneous information after verification. 67. Satellite News

Editor-in-Chief Bocar A. BA

Contributing Editors Awais Amjad Javaid Akhtar Malik Zakir Syed

Contributing Member Alfa Telecom, Lebanon Analysys Mason Arabsat Paltel Group Vodafone Qatar

Publisher SAMENA Telecommunications Council 04. 73. Subscriptions [email protected] EXCLUSIVE SAMENA Council Advertising [email protected] INTERVIEW ACTIVITY

Legal Issues or Concerns Khalid Ahmed Balkheyour Beyond Connectivity 2015 [email protected] President and CEO 11th May 2015 SAMENA TRENDS Arabsat [email protected] Tel: +971.4.364.2700 © 2015 - All rights reserved. SAMENA TRENDS is a trademark of SAMENA Telecommunications Council. EDITORIAL

SAMENA TRENDS _ APRIL_2015

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

In the SAMENA region, where satellite different means such as alliances, sales broadband is growing, the demand for partnerships among others, to get applications such as digital content, maximum business from the high growth cellular backhauling, and satellite TV, is markets within the SAMENA region. expected to further fuel the growth of satellite broadband. Satellite broadband According to Satellite Industry subscriber-base appears to continue to Association’s figures, commercial grow over the next few years with services communications satellites represent such as video-on-demand, Internet TV, over 37 percent of the total number of data, VoIP and cellular backhaul. How the satellites. With a number of international satellite operators will manage to tackle players looking into the regional markets this situation and to get maximum return for investment in satellite industry, the on investment is an important area that satellite broadband sector is expected needs attention. Globally, the number experience considerable growth. of subscribers to satellite broadband is Consumer satellite broadband revenues expected to reach 6 million in 2020. have increased from US$68 billion in 2008to almost US$100 billion in 2014 Traditional satellite technology uses showing an ample growth. Demand for a broad single beam to cover entire satellite capacity is evolving and operators continents and regions. The industry are thus exploring new ways to offer has more recently witnessed the use of satellite broadband services in an efficient multiple narrowly focused spot beams and cost effective way. and the reuse of frequencies has resulted in spectral efficiency thus increasing We at the SAMENA Council have always bandwidth as compared to traditional been cognizant of the significance of satellites. The satellite broadband satellite broadband industry and have a systems based on the Ka band deploy very active working group (Satellite) on spot beam technology, where satellite this very subject so as to provide a prolific downlink beams cover an area of the platform for knowledge, experience order of hundreds of kilometers. This sharing, and collaboration in light of enables frequency reuse, resulting in the growing demand in the regional a considerable increase in the overall markets. The purpose of the Satellite capacity of the satellite. Latest satellite working group is to take a leadership broadband systems are being tailored for role in developing and shaping the target markets to reduce bandwidth costs emerging technologies for the satellite and increase capabilities to keep pace with communications industry in the SAMENA the increasing subscriber-base. With the region in the interests of the Council’s growing number of subscribers, and the membership as well as the overall emerging applications, the demand for industry. demand for capacity is expected to grow too. An increasing number of operators are thus eyeing the Middle East and North Africa. The Operators are investigating

Yours truly,

Bocar A. BA SAMENA Telecommunications Council

page_3 EXCLUSIVE INTERVIEW

SAMENA TRENDS _ APRIL_2015

Mr. Balkheyour has over 30 years of Q. What change experience in the telecoms industry, have you seen in the Khalid Balkheyour has held the role of the President and CEO of the Arab developments and Khalid Ahmed Satellite Communications Organization evolution of the satellite Balkheyour (ARABSAT) since 2003. He came to industry in the past 5 Arabsat from Lucent Technologies where years? Is the industry President and CEO he was the Executive Vice President for keeping up the pace of Arabsat Marketing and Sales from 1999 to 2003. Prior to that, he was the Vice President its progress? of Operations and Maintenance in the A. Major developments Saudi Ministry of PTT, later known as in the satellite industry in the Saudi Company past five years took place in (STC). He holds Master degree in services business modeling and Electrical Engineering from California manufacturing and launching, for State Polytechnic University Pomona in example: 1981. He serves as Vice Chairman of the • More satellite companies of Board at Thuraya Telecommunications national interests Company. • Cooperation and agreements between satellite operators to reduce cost • Consolidation trends are picking up • Electrical/Hybrid propulsion • High throughput satellites • Hosted payloads • We have also witnessed market price degradation by 25% to 30% from industry peaks in 2010-2013.

page_4 EXCLUSIVE INTERVIEW

SAMENA TRENDS _ April_2015

Q. What is Arabsat promote its video neighborhoods at issue up in all relevant national and looking for in its future 26deg E for the MENA and 39deg international bodies. E for Europe through its Hellas-sat satellites as well as how subsidiary. Arabsat was recently selected as a does the company plan to member of the Board of GVF and make best use of future look forward to continue working Q. What initiatives have with industry stakeholders on all assets? you taken so far that are related matters. A. Arabsat has now two satellites under manufacturing; aimed at speeding up the Badr-7 to be launched in Q4, 2015 at resolution of interference Q. Arabsat and CeTel 26deg E, and HS-3 (joined satellite and improving the quality recently joined hands with Inmarsat) to be launched end of service for satellite of 2016 at 39deg E. Arabsat has also in extended C-band awarded two new satellites’ contracts communications users? partnership in Africa; please recently, HS-4 (Joined Satellite with A. Arabsat is an active tell us more about this joint King Abdulaziz city for Science member of the IRG group and continues to play a major role in venture. and Technology in Saudi Arabia) at A. CeTel and Arabsat has been 39deg E and Arabsat-6A at 30.5deg creating awareness in the industry. Arabsat is participating in the working together for the past 10 E. Arabsat satellite fleet will reach 11 years to provide robust enterprise satellites by 2018. Carrier ID initiative and its expert engineers are certified examiners and data solutions to businesses and trainers at GVF to train and across MEA region. Both Arabsat and All of Arabsat new satellites CeTel have developed an affordable incorporate Ka-band for enterprise certify SAT engineers on the best industry standards for handling SAT and wide coverage service for data data and broadband in the Middle services through a new hub based East and Africa with a number of equipment and accordingly minimize the unintentional interference. at CeTel premises in Germany to hosted payloads and commercial utilize Arabsat-5C satellite at 20deg partners. As for the intentional interference, E, expanding customers’ options for service provisioning. Arabsat will also continue to Arabsat has participated in different maintain its efforts to enhance and industry groups fighting against jamming and has brought the

page_5 EXCLUSIVE INTERVIEW

SAMENA TRENDS _ APRIL_2015

Q. Which one of Q. How do you look at Arabsat’s services has a C-band spectrum allocation major chunk in boosting in the Arab States? Up to revenue streams? which extent you see that A. Arabsat has a balanced this band could be used by mix of telecom and broadcasting services. Arabsat 26degE hotspot mobile operators especially remains as a major revenue as mentioned in a recent streamline for Arabsat with a report prepared by Frontier neighborhood constituted of 500+ Economics, saying that TV channels, 80+ HD channels, 200+ radio channels, Pay- TV networks. using just the lower portion of the C-band (3.4-3.8GHz) Arabsat African operations for mobile could generate constitutes another major streamline at least USD 7.6 billion for of revenue across Arabsat fleet with big number of C-band transponders the Arab States economies. deployed in African coverage. What are your thoughts on this? Q. Do you believe that A. Arabsat is actively IPTV growth depends on participating with industry groups fighting against this direction. We the development of fixed have seen that telecom operators are broadband infrastructure not efficiently using their available only or Satellite Broadband spectrum as different case studies have shown. We believe that C-band has a role to play also? Arabsat has signed a partnership A. Arabsat has recently is crucial for the development of many regions especially in Africa agreement with Inmarsat to launch a launched its HBB TV platform in joint satellite together named HS-3 cooperation with Selevision at its and our region. The revenue scenarios built by telecom operators and the deal was announced in June video neighborhood at 26deg E. 2014. Arabsat has also signed a joint Arabsat servers are located at both to convince governments are exaggerated and don’t account for satellite agreement with KACST on Jordan Media City and Overon in HS-4. Arabsat is currently working Spain. We target providing value the opportunity loss of development of the those countries’ communities on few more deals and will be added services to our customers announced in due time. that would enhance the end only possible through C-band. We viewer experience. We believe that go to the WRC, 2015 united as an infrastructures complement each industry and we have prepared very Q. Do you think that other and everyone has its own role well for what is coming. The ITU HD channels are the major to play. needs to look carefully at the exact force behind fueling the needs of each region and make its decision accordingly. satellite broadcasting Q. Do you think that throughout the region? there is a significant Q. Can you please A. Arabsat certainly believes difference of bandwidth so. Our cooperation agreement with share with us some of the demand between the E’shailsat will fuel HD content at our Arabsat’s key projects or location at 26deg E with exclusive HD SAMENA region and other upcoming ventures that are content. Arabsat has also launched parts of the world? My-HD light Pay-TV platform A. The global trends are almost under focus? based on HD. Now, more than 80 the same. The differences depend on A. Arabsat has acquired HD channels are transmitting from the specific markets that are being Hellas-sat in 2013 to acquire new 26deg E neighborhood. served by each satellite operator resources and access new markets. and how the satellite operators can Arabsat is building its strategy bypass the supply Vs. demand trends around expanding its business to through their business development Asia and neighboring regions and and sales activities, However, the extending its service portfolio. market prices has degraded by 25- 30% over the past three years.

page_6 REGIONAL PERFORMANCE REGIONAL PERFORMANCE

SAMENA TRENDS _ APRIL_2015 SAMENA TRENDS _ APRIL_2015

Consumer Satellite Services Revenue Growth (US$ Billions)

Data Source: Satellite Industry Association (SIA), Statista Image Source: SAMENA Telecommunications Council

page_7 page_8 REGIONAL PERFORMANCE REGIONAL PERFORMANCE

SAMENA TRENDS _ APRIL_2015 SAMENA TRENDS _ APRIL_2015

Consumer Satellite Services Aggrigate Revenue Growth (US$ Billions)

Data Source: Satellite Industry Association (SIA), Statista Image Source: SAMENA Telecommunications Council

page_7 page_8 REGIONAL & MEMBERS UPDATES

SAMENA TRENDS _ APRIL_2015

MEMBERS NEWS

Etisalat organizes Omantel to showcase workshop for government innovative solutions and entities; highlights key offers with major presence technology trends and solutions at comex Omantel is geared to showcase a set of Etisalat shed light on the latest new innovative solutions, products and technology trends to the government offers that are focused on providing sector at its workshop recently held in customers with enhanced experience Abu Dhabi. The workshop had more throughout this year’s COMEX with a than 100 representatives including IT major presence in the Shopper and Managers. Etisalat experts highlight MEMBERS Corporate areas of Oman’s biggest opportunities for government entities annual exhibition of telecommunications of the UAE in view of upcoming IT and UPDATES and information technology. During the telecom trends and requirements of the 5-day event the company is set to reveal nation. Among several topics, improving a number of exciting new offers for both security, increasing IT efficiency levels its individual and business customers and the transition to smart government as Oman’s leading Telecommunications model were the key focus of the event. Company uses this major ICT show to The workshop also saw discussion on engage and interact with its customers. Etisalat’s latest solutions and products The Business and Shopper stands will be offered to meet these requirements, staffed throughout the week by a team including Cloud Services, Managed of enthusiastic Omantel representatives Services, M2M solutions, data centers, who are looking forward to meeting e-security services, e-commerce, existing and potential customers and solutions for smart cities and electronic introducing them to new and existing payment solution. The workshop was solutions, products and offers and a held in line with Etisalat’s strategy to range of stunning gadgets. Among align with the technological needs of the the most exciting announcements will government. It created a platform for the be the reveal of a major new advanced telco to showcase its solutions in the field technology that is expected to change of ICT, including a portfolio of Managed the telecom landscape and innovative Services that provide organizations with that can help customers experience the enhanced value-addition. real value of Omantel home broadband as well as the introduction of a range of new

page_9 REGIONAL & MEMBERS UPDATES

SAMENA TRENDS _ APRIL_2015 solutions and products for individual insights into customer behaviors and wonderful message across. You don’t and business customers. Haitham Al use these insights to develop offers have to be a professional runner, you Kharusi, Vice President of the Consumer and services to meet customer needs.” just have to know how to have fun!” To Business Unit said: “COMEX 2015 Khuram Rahat Managing Director encourage a healthy lifestyle through provides us with a superb platform Teradata Pakistan said, “This is just its Every Step Counts initiative, du has to meet our customers face to face the start of a long and productive been organizing and participating in and present them with a number of partnership where we will continually several entertaining events aimed at innovative new products and services. engage with PTCL business teams to promoting a healthy lifestyle through “They can also experience a range of deliver more value through deeper fun experiences. Smartphone users innovative fixed, mobile and internet insights and analytics.” can download the du Wellness App services and have the opportunity to and adopt it into their everyday health meet our team and learn more about and fitness routine. the new technological advancements du awards top 3 glo- and how to experience the real value tastic runners from selects of Omantel home broadband”. In addition to individual consumers, NEORUN Accenture for digital Omantel will also be showcasing its Over 4000 Neo Runners braved distribution extensive offers to the business sector ten energizing and surprising NEO during COMEX. Todd Dick is Vice zones, and their faces and clothes , one of India’s entertainment President of the Corporate Business were covered in neon UV paint in the broadcasters, has selected Accenture to help develop, launch and deliver Unit and commented: “We are looking process, as they participated in the its over-the-air programming to forward to this year’s event and the night-time NEORUN, the first ever India’s online, multiscreen consumers. opportunity to meet our existing and production of its kind in the Middle The service is built on the prospective corporate customers face East. Today, du spread extra cheer Accenture Video Solution (AVS) to face. “Oman’s biggest annual ICT by announcing 3 winners from its software platform, and will be funded gathering is a unique opportunity social media campaign to support primarily through advertising, using for our rapidly growing corporate NEORUN. As partners to the event, the platform’s new digital advertising business unit to showcase the full du ran a competition on social media functions. It will have a catalogue range of our innovative and highly asking contenders to share their most of more than 45,000 movies and sophisticated services that add value creative pictures at the run, with the television series. Leveraging AVS, Star to businesses and are able to handle du brand colors, using the hashtag can deliver broadcast-quality content the requirements of any size. Our #everystepcounts. The three sporting to consumers on a wide variety of devices over Wi-Fi, 4G, 3G and 2G technological expertise, qualified staff the maximum amount of blue on networks, including those with limited and years of experience make Omantel their faces and bodies received an bandwidth resources such as 2G feature the undisputed market leader in the ‘Every Step Counts’ gift box, including phones. “With hotstar, our ambition is business sector.” Omantel is also a trophy and an iPod touch. Of the nothing less than the establishment promising a number of surprises and 70 entries, the three lucky winners of a whole new model for on-demand exciting and innovative activities in chosen by du were @rami_ali19, @ video consumption in the world,” said and around their exhibition areas Afroman_elgrande, @kareim242. Sanjay Gupta, Star India COO. “We during COMEX 2015 that are set to “We are proud of our enthusiastic will drive dramatic innovation on this excite visitors of the event. and committed du employees, who platform with benefits for both users joined the other colorful runners in and advertisers. Accenture has been a navigating the unique and surprising valuable partner in this effort. They are PTCL upgrades business NEO zones. The whole event was walking side by side with us in creating incredibly inspiring, everyone enjoyed this compelling platform, bringing the intelligence system best of their product and technology being active and crossed the finish to enrich customer expertise to the table. Together, we will line with a smile on their face,” said establish compelling new benchmarks experience Hala Badri, Executive Vice President, in the over-the-top space.” Brand and Communications, du. “By Pakistan Telecommunication Company partnering with unique events such as In addition to service delivery, Limited (PTCL) has deployed a state- NEORUN, du is able to lead the way Accenture is managing the hotstar of-the-art Enterprise Data Warehouse in achieving its vision of motivating operations using the client’s on-site and Business Intelligence system. people to create a better tomorrow team in and Accenture’s This system will enable Company for themselves and their country by Global Video Operations Centre in the to proactively understand customer always making fun lifestyle choices.” Philippines. “By creating a digital video requirements and serve them in “To see the 4000 glowing NEO runners service available on multiple screens, a more efficient manner through walking, jogging and running around Star has secured its status as India’s most advanced next-generation delivering an enriched experience as the 5K track was a fantastic sight to per international best practices. The content provider,” said Ashish Khanna, see. They lit up the Autodrome with managing director for Accenture’s upgraded system will further improve their glowing gear and paint!” said PTCL’s service delivery platforms Communications, Media & Technology Pach Ang, CEO, Founder and Managing operating group in India. “It is one and add substantial value to overall Director of REDFILO Events. “NEORUN of the first services globally to offer customer experience. Raed Abdel is for all shapes and sizes. Our goal entertainment, movies and sports on a Fattah Chief Information Officer PTCL is to support and motivate healthy single platform for while enabling said, “PTCL has partnered with Teradata lifestyles, and by partnering up with du new consumption models. This in this strategic endeavor to develop we were able to successfully send that provides consumers access to a rich

page_10 REGIONAL & MEMBERS UPDATES

SAMENA TRENDS _ APRIL_2015 catalogue of content delivered online battery life but it should be able to presented a program of promising with interactive advertising formats last the whole day. As for the pricing, leaders, which included 60 candidates that provide multiple opportunities German retailer Billinger said it will from the company’s employees, 80 for content monetization by Star’s cost 349 Euros which is around $370. percent of them Saudis. advertisers and we’re excited to be The gold edition is said to be more Star’s delivery partner.” expensive by 50 Euros. HBO GO available as standalone service in Huawei Smartwatch to HRDF honors Mobily for arrive middle of the year Saudization Hong Kong Starting April 13, the public can Huawei has already introduced its The Human Resources Development subscribe to HBO GO, an over-the-top entry to the smartwatch arena at the Fund (HRDF) rewarded Etihad Etisalat Mobile World Congress early last (Mobily) Company in recognition of its (OTT) service offering unlimited access month. We were able to get our hands efforts in attracting and maintaining to a vast library of HBO and on the company’s first Android Wear functional national cadres as well as Original content. HBO GO was first watch and we were impressed that allowing career progressing and salary launched in Hong Kong in 2013 for it doesn’t look too geeky. It actually increase. Mobily confirmed that this now TV’s HBO subscribers* free of looks like any ordinary round watch. award is an incentive to attract more charge. The significance of today’s If it weren’t for the digital display, national talents and promote the news is that the online streaming you’d think it’s just your average localization ratios and Saudization service will be extended to users everyday watch. The Huawei Watch plan in the company in addition to without them having to commit to a has a potential to become a bestseller the graduation of leaders working in TV package. HBO GO offers unlimited because of its classic design but we the Saudi market. Melfi Al-Marzoki, access to a vast library of more than don’t know when it will be released senior executive officer, HR Center 1,000 hours of HBO and CINEMAX exactly. When asked on Twitter when of Excellence, received the award Original content. As well as offering the smartwatch will be available, on behalf of Mobily in the presence original HBO series such as the latest Huawei UK (@HuaweiUK) replied it will of HRDF officials Omar bin Meezan GAME OF THRONES season, HBO GO be “around the middle of this year”. It Melibari, DGM for customer care, and opens up access to self-produced Muhammad bin Abdullah Al-Absi, GM , documentaries, entertainment for Riyadh region. specials, family content and behind- the-scenes exclusives and previews. The Nitaqat Saudization program aims to stimulate private sector enterprises Viewers can use HBO GO to watch to raise Saudi workers’ wages and to award-winning and critically- hire more jobless Saudis, as well as acclaimed HBO and CINEMAX Original to upgrade the classification of their programming that includes mega-hit Nitaqat plans. series such as THE SOPRANOS, BAND OF BROTHERS, ENTOURAGE and SEX Mobily won formerly Prince Naif Gold AND THE CITY, as well as more recent Saudization Award several times as series typified by SILICON VALLEY, part of Mobily’s strategy in raising VEEP, GIRLS, THE KNICK, TRUE BLOOD, TRUE DETECTIVE, THE NEWSROOM could mean June or during summer— the ratio of Saudization and the and more. No HBO GO content will in the UK. The answer seemed vague to development of Saudi employees. This be removed, so viewers can watch the person who asked the question so contributed toward providing a work their favourite shows whenever and he commented that maybe he should environment that helped to increase wherever the mood takes them. “The just buy a Moto 360. Huawei UK knows productivity and enhance self-efficacy standalone OTT HBO GO service in the smartwatch is coming soon but no of the employee. The most prominent official UK release date has been given motivation provided by Mobily for Hong Kong now offers any viewer with yet. Huawei could only be giving an its Saudi employees are the year- an Internet connection access to their estimate but we’re certain it will be this round continuous training programs, favourite HBO and CINEMAX Original year. The Chinese company shouldn’t and provide the opportunities for content,” said Mr. Jonathan Spink, CEO, let this year be over without any sign employees who desire to continue HBO Asia. “HBO GO offers subscribers of the smartwatch or else fans will go their college education or get a more choice and control over what ahead and buy other options already master’s degree or doctorate or they want to watch, when they want to available. any other specialized certificate. watch it, and across multiple devices, Mobily also offered leadership and whether at home or on the go.” Here’s a quick review of the Huawei professional development programs Watch specs so you’ll have an idea in collaboration with Franklin Covey Ms Loke Kheng Tham, PCCW’s if this is something to be excited Middle East Foundation. Executive Vice President of Pay TV, about: 4GB storage, 512MB memory, said, “We are excited about extending Bluetooth 4.1 connectivity, 1.4-inch Consequently, 100 employees already the collaboration between now TV round faced touchscreen, 400x400 graduated and mastered the most and HBO, and pleased to provide pixel display, 286 ppi resolution, built- prominent programs that will, by God HBO content beyond the TV space in heart rate monitor, and 6-Axis willing, contribute to the development by offering HBO GO subscription on motion sensors. The smartwatch will of the company’s business in the long a standalone basis. Viewers simply also come with a magnetic charging term, as well as raising the level of their need to download the HBO GO app station. No mention on availability and competency. In this context, Mobily and register with now ID to access the

page_11 REGIONAL & MEMBERS UPDATES

SAMENA TRENDS _ APRIL_2015

HBO and CINEMAX Original library With an exclusive focus on business Huawei & Higher at anytime from anywhere.” HBO GO protection, considerable time can be downloaded from Apple’s App is dedicated to understand the Colleges of Technology Store for iOS devices, or from organization’s operations, identify Sign MOU to Bridge Play for Android devices, and the internal and external threats, and service is available for subscription for design smart solutions to help Digital Education Divide an early-bird offer of just HK$43* per businesses guard against loss of month until June 29, and HK$88 per inventory, property, productivity, in UAE month afterwards. profits and assets. Batelco offers With the advent of the UAE’s knowledge complete support in the analog-to- economy, Huawei—a global Batelco Caters to digital migration and management information and communications of legacy security systems, as well as technology (ICT) solutions provider— Increasing Demand the installation of fully wireless digital and the Higher Colleges of video network solutions. The solution Technology (HCT) today announced in Enterprise Physical spans the offering of video surveillance a Memorandum of Understanding Security systems for small businesses, to (MOU) to develop a range of Smart enterprise video surveillance for Education initiatives for its students in Batelco , the Kingdom’s leading hundreds of locations. Comprehensive the UAE. The ambitious MOU outlines business solutions provider is video management software (VMS) three programs implementing various constantly on the quest to expand platform for the Enterprise segment E-education technologies designed to its physical security portfolio in order offers users a complete visual overview improve the standards of education to support the increasing security of the organization’s surveillance and learning for HCT’s students. requirements for organizations installation with interactive maps Specifically, the partnership will see across all sectors. The Bahrain market revealing camera locations. Alarms Huawei develop a Telecommunication continues to see an increasing displayed directly in the maps Academy at HCT, establish virtual demand for innovative and managed make it easy to quickly identify and classrooms at its campuses and launch security solutions. Physical security address incidents throughout the an ICT training exchange program of property, data and equipment entire system. If an incident occurs, at Huawei’s HQ in Shenzen, China. has become a prime concern for the efficient video search tools enable Abdullatif Al Shamsi, Vice Chancellor public and private sector organizations users to easily find relevant video of the Higher Colleges of Technology of all sizes. Batelco ‘s suite of physical clips and export evidence. Users with said: “The Higher Colleges of security solutions will give customers different skill levels and system access Technology maintains a commitment access to the full range of industry- can view live and recorded video to excellence in education, and a leading physical security products. through three convenient, intuitive hallmark of its learning model is the Batelco has established partnerships viewing interfaces. The provision of strong focus on successful student with well-known security providers, Physical Security Solutions positions learning outcomes in technology to meet the specific needs of different Batelco as an end-to-end ICT solution and innovation, educating our organizations and implement scalable, provider offering customers with a students for the 21st century. We flexible and cost-effective physical one-stop-shop experience. On an are therefore pleased to continue security solutions. An increased focus ongoing basis, Batelco continues to working with Huawei to create new on security is prompting enterprises expand its ICT portfolio and strives to ways of enhancing learning through and government agencies around the deliver new solutions to its customers. the innovative uses of technology.” world to expand their use of video Batelco has played a pivotal role in Strengthening its commitment to surveillance and other physical security the country’s development as a major developing the education sector in technologies. The vast amount of data communications hub and today is the the UAE, Huawei will work closely created by these systems is challenging leading integrated communications’ with HCT to deploy its solutions at organizations to effectively capture, provider, continuing to lead and shape the institutions various campuses analyze and store security data. the local consumer market and the across the UAE. The ICT vendor is a Batelco ‘s Security Solutions benefit enterprise ICT market. strong advocate of helping educators customers by denying unauthorized empower youth by equipping them access to facilities, equipment and Batelco is well known as a leading ICT with the right knowledge and tools to resources. Batelco ‘s Security Solutions solutions provider offering a spectrum help them grow professionally. Peng are available on both sale and rental of solutions such as Infrastructure Xiongji, General Manager, Huawei schemes and at very competitive prices. Solutions, Unified Communications & UAE said: “This MOU is testament Batelco designed a flexible rental Collaborations, IT & Physical Security to our commitment to developing a scheme that relieves its customers to name a few. The Company’s true knowledge economy in the UAE from the burden of heavy investments. comprehensive choice of products and helping to offer more interactive The plan also offers Batelco ‘s support and services meets international learning for students. We are great during the contract period as well as standards and furthermore, Batelco ‘s believers in the power of technology providing comprehensive assessment, Business Enterprise team is capable and how the right technology design services, installation, testing of customizing its products and tools can revolutionize education and full after sales support - giving services to meet the specific needs in the UAE. We are confident that businesses peace of mind when of customers, bearing in mind the through this MOU with HCT, we will investing in new solutions. Batelco’s different industries and sectors they make a make a measurable impact Security Solutions help safeguard operate in. to the availability and quality of businesses with security solutions that education for its students.” Working protect people, assets, operations and alongside HCT to integrate it into facilities.

page_12 REGIONAL & MEMBERS UPDATES

SAMENA TRENDS _ APRIL_2015

learning from will be integrated into Cisco’s Nexus Huawei’s experts data center switch portfolio and at its HQ in China. extend Cisco’s Application Centric Developing a Infrastructure capabilities. ACI is local talent pool Cisco’s proprietary approach to of educated and data center SDN. SDN helps make technologically the network and its parts fluid. ACI skilled individuals is aimed at making the network has become a responsive to application needs leading priority automatically. ACI communicates in the UAE as the high-level application requirements rise of technology- to intelligent network hardware, which focused self-configures accordingly. There development has been rising activity in Network continues to offer Function Virtualization in particular, new opportunities which replaces physical appliances within the regional with virtualized network functions ICT industry. The like firewalls, load balancers, intrusion MOU outlines a detection, and WAN accelerators. their curriculum, Huawei will launch programme for Huawei to provide Embrane’s Heleos platform deploys a ‘Telecommunication Academy’, technical training including workshops software-based appliances such as delivering a specialized training course and technical training sessions on a firewalls across a pool of commodity that will offer students the opportunity range of ICT trending topics including servers. “With agility and automation to broaden their understanding in next-generation networks, network as persistent drivers for IT teams, ICT field. Encompassing practical architecture and implementation, the need to simplify application and theory components, the course VoIP, security solutions and cloud deployment and build the cloud is will give students detailed hands- computing amongst others. crucial for the data center,” Hilton on experience in deploying Huawei’s Romanski, Cisco’s head of corporate ICT solutions. The course prepares development, wrote in a blog post. students for the Huawei professional Cisco Acquires Data training certification, which they Center SDN Startup Embrane will join Cisco’s Insieme will be eligible to apply for once business unit, the foundation of which they graduate from HCT and offers Embrane was the 2012 acquisition of Insieme a a clear transition from education to data center SDN startup Cisco itself employment. Following the successful founded. Insieme was deployment of the Virtual Classroom acquired as part of the program in 2013, which provided ACI effort, launched students and faculty access to a host that same year in of new digital tools for creating a more response to a growing interactive learning environment, SDN opportunity and Huawei will extend its services to formally launched in accommodate more students across 2014. Embrane tech all of HCT’s campuses. Huawei’s will feel at home at e-Classroom program extends the Cisco given the two concept of ‘borderless classrooms’ companies have worked and addresses the strategic challenges extensively together. faced by distance learning as well Embrane’s founders as the managing and sharing of formerly worked knowledge resources across multiple for Cisco. Following classrooms and campuses. Cisco said it will acquire Embrane, a funding, Embrane has added lifecycle management for a variety of Cisco This will improve classroom learning Santa Clara, California-based software defined networking firm. Cisco made products and expanded support experiences through support for real- for other third-party systems. “With time interactions via high-definition a strategic investment in the company last year, leading a $14 million Series this acquisition, we continue our audio and video tools, convenient commitment to open standards course recording and streaming, C funding round. The acquisition is expected to close at the end of the through programmable APIs and interactive e-whiteboards, and more multi-vendor environments,” wrote immersive device applications. The current quarter. Terms of the deal were not disclosed. Romanski. “More importantly, third element of the Huawei MOU we remain committed to the rich with HCT will see the launch of the ecosystem of partners and customers ICT vendor’s ‘Seeds for the Future’ Data center SDN startup Embrane’s platform provides lifecycle in production through the automation education exchange program, which of network services, cloud and system will offer 15 each year the opportunity management for application-centric network services. It provides layer 4-7 management orchestration, and to develop practical skills preparing automation stacks.” them for a career in the ICT industry, network services and helps bridge a larger transition to SDN. Embrane

page_13 REGIONAL & MEMBERS UPDATES

SAMENA TRENDS _ APRIL_2015

company a free-to-air television Ooredoo in first place broadcasting license. Richard Li’s SLA Mobile brings Direct with over 3.6 million PCCW rose as much as 8.6 percent Operator Billing to after the government Wednesday subscribers gave its unit a 12-year license to Microsoft’s Windows Ooredoo mobile operator has operate two channels that broadcast Phone Store for Zain distinguished once again in Algeria over the air. Shares of I-Cable through its 3G network. According to Communications Ltd. also rose on customers optimism it will get final approval for figures released by the ARPT (regulation SLA Mobile, in partnership with Zain its permit first granted in 2013. Hong of Post and Telecommunications Group is pleased to announce the Kong is seeking to retain choices in launch of Direct Operator Billing for its non- market after Microsoft’s Windows Phone Store for the government yesterday decided Zain customers. Direct Operator Billing against renewing Asia Television Ltd.’s will allow Windows Phone users the free-to-air license, leaving the city ability to pay for digital goods and with one such broadcaster. Thousands services by charging the transaction had marched in protest in 2013 when amount to their monthly phone bill the government rejected Hong Kong or prepaid credit. This represents an Television Network Ltd.’s application exciting opportunity for SLA Mobile for a license. “We hope that HKTVE’s and Zain to work with a global brand entry into the free TV market will such as Microsoft to bring Direct benefit our audience-at-large with Operator Billing to Zain’s Windows more quality programming choices,” Phone users. Zain has launched Direct Commerce Secretary Gregory So said Operator Billing in partnership with at a briefing yesterday, referring to SLA Mobile in Kuwait, Jordan and the PCCW unit. PCCW shares traded 6 Bahrain with further rollout across the percent higher at HK$5.08 at 9:48 a.m. Zain Group to be completed within local time. I-Cable rose 4 percent to the coming months. Nic Stirk, CEO 77 Hong Kong cents. Shares of Hong at SLA Mobile commented, “This is a Kong Television Network plunged 9.6 great opportunity for us to work with percent to HK$3.03 after yesterday a worldwide brand such as Microsoft gaining on bets that it may invest in to bring Direct Operator Billing to ATV. The government decided against Authority) Ooredoo ranks first the Windows Phone Store for Zain’s renewing ATV’s license because it with 3,607,541 subscribers on 30 customers. It sets in stone the demand failed to provide concrete restructuring November 2014. Figures released for quick and secure digital payment proposals before a deadline, So said by the ARPT are estimations applied solutions such as Direct Operator yesterday. This is the first time Hong to the prepaid subscriber base Billing.” Scott Gegenheimer, Zain Kong has decided against renewing a declared by each operator. Ooredoo is Group CEO said: “The exciting world broadcast permit, he said. Owners of followed by Djezzy with only 581,386 of mobile digital services is driving Asia Television, the city’s first Chinese- 3G subscribers. Concerning Mobilis the mobile industry forward at the language broadcaster, have been operator, ARPT has not validated moment. By being one of the first seeking investors as the company the data provided by the operator telecom providers in the Middle East considered incomplete. “The data to launch a Direct Operator Billing provided by the operator on the service, this extension of agreement final deadline of March 31, 2015 are with SLA Mobile to include the incomplete. The Regulatory Authority Windows Phone Store reinforces our has therefore not been able to dedication to providing customers complete the audit of its stated prepaid with the best digital purchasing subscriber base on 30 November 2014,” experience on all major online stores says the ARPT, adding that” the WTA in a safe and easy manner.” With the and OTA operators responded in the rapid growth of e-commerce in Middle time allotted to information requests Eastern markets and the issue of fraud sent to them for this purpose by the increasing, Direct Operator Billing Regulatory Authority. The operation gives users a secure alternative to pay struggled to attract advertisers and was conducted for them on time and for goods and services online without failed to pay wages to staff. The led to audits that were expected.” the need to enter debit or credit card government’s decision was announced details. after Derek Lai, a court-appointed PCCW Shares Surge after manager from Deloitte Touche Tohmatsu, said on Wednesday that Government Awards ATV’s majority shareholders signed an Broadcasting License agreement to sell to an investor, whom he didn’t identify. Deloitte last night PCCW Ltd. shares jumped by the most said it was “disappointed” about the in 17 months in Hong Kong trading decision after making every effort to after the government awarded the find an investor.

page_14 REGIONAL & MEMBERS UPDATES

SAMENA TRENDS _ APRIL_2015

Vodafone Qatar CEO economic journey.” “About 5 years IBM InfoSphere DataStage® is a core ago, we were extremely honored to be product module of the InfoSphere named Telecom Leader invited to bid for the second mobile Information Server information in GCC license and consequently we were integration platform, which offers able to localize one of the world’s universal data access to on-premise, Kyle Whitehill, Chief Executive Officer biggest and most valuable telecom cloud, mobile, and structured and of Vodafone Qatar, has recently been brands and privileged to be partnered unstructured data. It helps enterprises named in the TOP CEO Awards and with Qatar Foundation. There isn’t maximize business value from big data the leading CEO of the Telecom a single global brand in Qatar which at any volume, velocity and variety, industry across the region. Organized has localized itself as much as we and enables them to obtain a building by business publication TRENDS did and we were the first and only workflow capability that combines magazine in conjunction with INSEAD global brand to list on the Qatar Hadoop-based activities defined via business school, the TOP CEO Awards Exchange. This was a solid testament Oozie with other data integration to our steadfast commitment to Qatar, activities. bringing a wealth of local knowledge and experience together with our Mr. Ren Zhipeng, President, IT Cloud global credentials and track record.” Computing Product Line, Huawei, said, Whitehill added. “With Vodafone “We are pleased that IBM InfoSphere Qatar sitting at the heart of the largest DataStage has qualified for, and will mobile networks in the world, we receive the Huawei Ready™ logo, were confident that our presence in and that it works effectively with the local market will help to change Huawei’s big data products. This will the competitive landscape, introduce help enterprises acquire real valuable world-class innovations and raise the information from the torrents of bar of the industry; and that’s exactly data and gain insights on potential what we did and we keep on doing as opportunities and risks. Huawei we aim to empower every single one is committed to investing in the of our customers to be confidently development of big data in the long connected by providing unique, worry- term and dedicated to building the 2015 ceremony paid tribute to free experiences.” continued Whitehill. most extensive ecosystem with global business leaders whose success for Vodafone Qatar switched on its mobile partners.” Ms. Ritika Gunnar, Senior their organizations is an instrumental network on March 1, 2009 and shortly Executive, Information Integration and factor in the continued growth of after started delivering great value to Governance, IBM Analytics Platform, the region. The fifth installment of its customers with a range of exciting IBM, said, “IBM InfoSphere platform the annual program, TOP CEO 2015 products and services. Its cutting- together with Huawei’s FusionInsight honored business heads judged to edge networks infrastructure is the platform helps customers get more have excelled in the field of leadership. first green field networks project in bang for their buck from big data Mediaquest, the media company Vodafone Group in the past 15 years. platform investment. By combining behind the initiative, says that the This places the company in a great Huawei’s smart Hadoop technology scheme is the most credible of its kind position to develop, in the future, and IBM’s proven data integration in the region, as only leaders of the one of the world’s only converged and data governance technology, firms listed on the stock exchanges of networks. Vodafone launched its fiber- the joint solution creates a market- Saudi Arabia, the UAE, Qatar, Bahrain, based consumer and enterprise fixed- differentiated enterprise class big Kuwait and Oman are eligible for line services commercially in October data platform that leads in a highly ranking. 2012. competitive market. It enables customers to create enterprise-level Kyle Whitehill, Chief Executive Officer smart data management solutions of Vodafone Qatar, said: “To me, the IBM InfoSphere in the shortest time and lowers the fundamental job of a CEO is not just cost of overall IT investment. IBM will to help your team create a vision, DataStage achieves continue work with Huawei to create strategy and a plan - it is to engage, Huawei Ready™ innovative data integration and data inspire, and motivate people across governance big data solutions.” the organization. There can be no TOP Certification for Big Data CEO without a TOP team backing him compatibility Huawei Ready™ is a big data or her each day. I therefore accept the compatibility certification program that honor of being in the TOP CEO Awards Huawei announced that IBM InfoSphere validates the compatibility of partner on behalf of Vodafone Qatar’s talented DataStage has achieved Huawei products and solutions with Huawei and tireless team, without whom we Ready™ status after the successful FusionInsight. The Huawei Ready™ would have never reached this stage. integration and interoperability test certificate demonstrates to customers From telecommunications to banking with Huawei FusionInsight. The result that partner products and solutions and air travel, I am additionally proud indicates that there is minimal risk meet the highest compatibility and to stand among a group of such involved for customers to deploy big interoperability standards set by distinguished global business leaders data solutions by integrating Huawei Huawei and customers can be jointly who are indeed shaking up their FusionInsight with IBM InfoSphere supported by partners and Huawei. industries and shifting the centre of DataStage. gravity toward this region as partners - not passengers - on its remarkable

page_15 REGIONAL & MEMBERS UPDATES

SAMENA TRENDS _ APRIL_2015

REGIONAL NEWS

PTA holds Pakistan Mobile Zain Iraq applies for App Awards 2015 today Baghdad share listing Zain Iraq, the country’s biggest mobile In order to encourage young innovators phone network operator by subscribers, and entrepreneurs to develop new has applied for a listing on Baghdad’s mobile applications, the Pakistan stock exchange, parent firm Zain told Telecommunication Authority (PTA) Reuters, taking the first step in a long- is going to hold Pakistan Mobile App delayed plan to go public. Awards 2015, ceremony on April 27. Under the competition, the authority Iraq’s three mobile network firms were invited individuals from Pakistan to required to float a quarter of their shares submit innovative mobile applications and join the Iraq Stock Exchange, or ISX, REGIONAL in six different categories, with an by August 2011 as part of their 15-year overall objective to promote the use licenses awarded in 2007. But so far only UPDATES of high-speed mobile Internet for the Ooredoo unit Asiacell has floated, joining benefit of the society. The event would the ISX in February 2013. Daily fines for be held in partnership with Internet not doing so are being levied against the Society (ISOC) Asia-Pacific Bureau, other operators — Zain and Korek, the cellular mobile operators and handset smallest of the three. Zain Iraq has “filed manufactures. All submissions to the its first set of application documents competition were subject to pre-defined for its initial public offering to the Iraqi criteria including uniqueness, value to Securities Commission [ISC]”, a Zain public, functionalities, sustainability and spokesman said via e-mail. “This is the first quality of the mobile application under step in the process of Zain Iraq fulfilling agriculture, entertainment, kids, security its mobile license obligations.” Zain Iraq’s and community and business categories. application is subject to approval from With over 100 entries received, Pakistan the bourse and telecommunications Mobile App Awards competition proven regulators, Zain added. “They [Zain Iraq] to be well acknowledged, reflecting a have preliminary approval,” Abdul Razzaq lively evolution of innovation in Pakistan Al Saadi, the ISC’s chairman, told Reuters. duly supported after introduction of “There are some technicalities that need 3G/ 4G services in the country. The to be ironed out, such as the mechanism broadband Internet users in Pakistan are of listing and subsequent trading and above 16 million that includes more than some further requirements from Zain 12 million 3G/4G subscribers indicating that they have pledged to sort out,” Al huge market potential for new services Saadi added. and applications.

page_16 REGIONAL & MEMBERS UPDATES

SAMENA TRENDS _ APRIL_2015

Once given final approval Zain Iraq scalable model that will accelerate will have two months to list otherwise remittance roll-out across the Encompassing nine different its application will be void, Al Saadi continent.’ nationalities and including the first added. Zain Iraq has proposed a three Cúram-certified consultants in different method than the book- the Middle East, the team brings to the building share offer process Asiacell GBM, Diona team up project a wealth of regional experience used. Rather than selling shares to launch IT system for and has worked to complete the before listing, Zain Iraq will join the deployment in record time, the ISX and allow bids from potential Labor Ministry statement adds. Soubhi Chebib, Gulf Business Machines (GBM), a buyers on its first day on the bourse, general manager of GBM Qatar, said: leading provider of customized IT a source familiar with the matter “MoLSA has embarked on a project solutions in the Gulf, has signed told Reuters. There will be no trades that will streamline and automate 11 a partnership with Irish mobile that day but Zain Iraq will take the social support programs running in the technology firm Diona following the weighted average of these mock country. This is also the first time the first Middle East implementation transactions to calculate its opening system has been implemented in the of IBM Cúram, a social welfare share price when trading starts the Arabic language.” Philippe Jarre, GBM management software solution, for following day. CEO, said: “Our relationship with Diona Qatar’s Ministry of Labor and Social will help play an even greater role in Affairs (MoLSA). The program was building enhanced electronic and launched in both English and Arabic. Vodafone, MTN mobile services for Qatar and around This is the first time it has been interconnect mobile the Gulf.” Brendan Flood, International implemented in the Arabic language. Sales & Partnering manager, Enterprise Richard Bruton, Irish Minister for Jobs, money services in Africa Ireland - who is accompanying Bruton Customers in East Africa who are Enterprise and Innovation, visited on the trade mission - said: “Enterprise signed up to Vodafone Group’s GBM’s office in West Bay to attend Ireland is committed to growing Irish M-Pesa and those using South Africa- the partnership signing with Diona, exports to the Gulf region to €6bn by based MTN Group’s MTN Mobile which creates mobility solutions that 2020. It is through partnerships such as Money will be able to transfer money transform how people’s health and this one between Diona and GBM that to each other, after the two companies human services needs are served this target will be achieved.” The trade reached a deal to interconnect their around the world. The minister was mission to Qatar, the UAE and Saudi mobile money platforms. In a press accompanied by Patrick Hennessy, Arabia, which has 63 Irish companies release confirming the development, ambassador of Ireland, together with participating, continues until today. Vodafone Group said that the other Irish dignitaries. The MoLSA interconnect collaboration between initiative meets world-class standards what it termed ‘the region’s two in serving its Qatari citizens’ requests Pakistan: Government to biggest mobile money operators’ will and requirements, namely families in enable convenient and affordable need. It is the first program of its kind implement IT agreement Ooredoo Global Services (OGS) has In international remittances between to be launched in the Middle East, and order to promote IT trade, Ministry of M-Pesa customers in Kenya, Tanzania, has instigated a commitment from Information Technology is considering Democratic Republic of Congo (DRC) both GBM and Diona to widening options for the implementation of and Mozambique, and MTN Mobile their partnership further, according Information Technology Agreement Money customers in Uganda, Rwanda to a statement. The ministry will now (ITA), under WTO. In this regard, and Zambia. Under the terms of their be able to provide an integrated Minister of State for Information Memorandum of Understanding online platform that provides MoLSA Technology chaired a meeting on (MoU), MTN Group and Vodafone professionals and users with access Information Technology Agreement Group will also share best practice to information, applications and (ITA) with PRIME (policy research and work together to define the services that will eliminate manual institute of market economy) a group rules and standards of mobile-based work, minimize error margins and, of indigenous think tanks, here on remittances in Africa. most specifically, facilitate the tasks Wednesday, said a handout. Federal of social care workers. As part of Secretary IT, Member (Telecom), Commenting on the development, the deployment, dashboards were Member Legal, MD PSEB, CEO Vodafone Director of Mobile Money provided to the MoLSA management PRIME, Member Advisory Council Michael Joseph said: ‘Our agreement to support them in making accurate PRIME and senior officials from with MTN to connect our mobile decisions and monitor projects MoITT attended the meeting. The money wallets in East Africa is a development. Speaking at the meeting discussed ITA bilateral trade fantastic example of co-operation partnership signing, Bruton said: “The agreement under WTO which was and interoperability between Diona and GBM partnership is an concluded in December, 1996. Under competing mobile operators. By excellent example of the possibilities this agreement the signatories has to working together, we will deliver of technology, and I look forward to eliminate the tariffs on a list of IT and cheaper, faster money transfers, seeing this new relationship grow. My telecom products. Pakistan acceded improving the lives of many people visit to Qatar has shown tremendous to this agreement in 2001-02 and, in the seven countries involved.’ opportunities for Irish companies thus tariff on IT trade was eliminated MTN Group Head of Mobile Financial such as Diona, and I am determined but unfortunately, these reforms were Services, Serigne Dioum meanwhile to support more companies to take revoked after a shorter period of time. added: ‘After successful launches in advantage of these opportunities to Presently Pakistan is among the five Ivory Coast and Benin in West Africa, create jobs at home.” The GBM project countries which has highest taxes we are looking enthusiastically at the team assigned with implementing the on the imports of the IT products collaboration with Vodafone in East solution is an example of multicultural including Custom duties ranging Africa. Together, we aim to build a collaboration. between 10 to 25pc, sales tax 17pc,

page_17 REGIONAL & MEMBERS UPDATES

SAMENA TRENDS _ APRIL_2015 non-adjustable Income Tax 5.5pc. for its solution that gives young services are close to the average of However if Pakistan eliminates the talented authors an alternative other countries in the survey, fixed tariff for a list of IT and Telecom method to publish and monetize broadband services in the sultanate are products, subsequently trade their work. Another Egyptian team, among the costliest across all usage on IT products would increase Nano Ebers, was third in the track baskets except for medium speed. manifold, which would bring for its development of a high honey The same can be said for pre-paid major economic benefits in the concentration and nano fiber structure mobile voice services. The study puts long run. The volume and the that enhances antimicrobial effects these rates well above the GCC price growth of the sector would also be and promotes moist wound healing. average. For post-paid and business enhanced and our internet users’ services, the prices in Oman too are penetration may also increase In the startups track, Morocco-based at the higher end. The study said that from 11pc to 33pc. The Minister Screen DY came third for their platform prepaid mobile broadband services in informed the delegates that IT that offers any mobile developer the the sultanate are either below or close ministry is already working on ITA ability to build complex, custom, and to the average compared to other and the main initiative lies with native apps that work on all platforms GCC countries at low usage levels, but Ministry of Commerce and FBR. within days. The top two places in the among the highest for post-paid and Secretary level meetings have track went to teams from Lebanon and higher usage levels. When it comes to already taken place in this regard Jordan. international calls from fixed line and and the engagement continues. mobile phones, Oman’s position is Primarily, we have declared current The Social Entrepreneurship Track good compared to the other countries year as a year of Information saw three equal winners. Lebanese studied. Calls from fixed lines are Technology, and have mandated team Visualizing Impact, a citizen data cheaper than those made from mobile PSEB to enhance the volume of IT journalism, was declared the winner phones. Despite a marginal decline in export and to adopt measures for alongside Moroccan product health prices of some telecommunications international visibility of Pakistani and safety team La Perle de la Mer services, the study finds that Oman’s companies and products and and Egyptian Tahrir Academy, which position compared to other countries we will make all efforts for the has built a blended learning platform did not improve in 2014 as compared growth and development of IT that provides engaging learning to the results of 2012 study for most of sector so that it could maximize experiences through combining world the services. The study was designed its contribution in overall GDP of class and carefully localized teaching to benchmark the prices of retail the country under the vision of methods with the latest technologies. telecommunication services. Prime Minister Muhammad Nawaz “I congratulate all the semi-finalists and Sharif”, Minister said. winners for showing how progressive SIM verification program and dynamic their startup ideas are,” adds to PTCL’s woes as Egyptian, Moroccan said Scott Gegenheimer, Zain Group chief executive officer (CEO). “Much of profits plummet 83.5% teams among winners the region’s future development will Fixed line incumbent Pakistan in Zain startups be driven by young innovative people Telecommunication Company Ltd in technology, so Zain is especially (PTCL), which operates in the mobile competition proud to be fostering the growth of sector via its wholly owned subsidiary Teams from Egypt and Morocco this competition. I’m confident that Pakistan Telecommunication Mobile have been named among the many of these teams will succeed in Ltd (PTML/Ufone), has continued winners of the MIT Enterprise translating their ideas into successful its downward trend, booking Forum Pan Arab competition projects.” consolidated turnover of PKR30.18 organized by telecoms firm Zain. billion (USD295.54 million) for the Teams from Lebanon, Jordan, Oman does not rank well three months ended 31 March 2015, a fall of 9.6% year-on-year. The in most telecom services, decline in revenue, combined with shows comparative an increase in service and marketing costs – marginally offset by a dip study by TRA in administrative expenses – led to A recent price benchmarking survey a 70.4% y-o-y slide in operating carried out by the Telecommunications profits to PKR1.75 billion. profit, Regulatory Authority (TRA) states meanwhile, dropped by 83.5% to that fixed broadband services in the PKR716.39 million from PKR4.35 billion sultanate are among the highest twelve months previously. Much of compared to other countries included the decline can be attributed to the Saudi Arabia, and the United in the survey. The study of retail telecom operator’s mobile arm, Ufone, which Arab Emirates (UAE) also made services compared the rates with GCC has seen a steady drop in subscribers it onto the winners’ stage, with countries, Jordan, Tunisia, Malaysia since mid-2014, with its customer base contestants singled out for their and the UK and was conducted with shrinking from 24.35 million as at 30 innovative and creative startup the participation of the Sultan Qaboos June 2014, to 21.72 million by the ideas from 75 contesting teams University while Strategy Analytics Ltd, end of February 2015. Its user base is from 15 Arab countries. The an independent consulting firm in the expected to fall further as a result of winners shared prize money UK provided expert inputs. Omani the recent SIM re-verification drive, amounting to US$135,000. telecom companies do not rank well in which reportedly led Ufone to block most of the services compared to their 3.86 million SIMs. The cost of the In the Ideas Track, Egyptian peers in the other countries included re-verification programme has also team Kotobna came out on top in the study. While rates for fixed voice impacted the cellco’s profitability, as

page_18 REGIONAL & MEMBERS UPDATES

SAMENA TRENDS _ APRIL_2015 the operator was obliged to hire Amin Ramin, noted: ‘With Redknee’s with IT services spending fuelled by additional staff and to bear the market leading integrated charging large-scale, infrastructure-driven, cost of the biometric thumbprint and policy control solution, Afghan and government-led projects in scanners required for the project. Wireless is maximising the value of the transportation, healthcare, and our network. Having recently launched education sectors. Qatar will continue Previously, PTCL reported a 1.0% 3G services, we are increasing our to have the fastest growing IT services decline in revenue in 2014 to subscriber base, driving growth with market of all the GCC countries, and PKR129.92 billion, but the impact advanced data services and providing IT services spending in the country of a voluntary separation scheme superior quality of service to our will surpass Kuwait’s total by the end (VSS) and rising costs and expenses customers. Redknee is enabling us to of this year. Qatar is also expected to across the board saw net profit for increase our market presence, to be lead IT services spending in the region the year fall from PKR23.79 billion more competitive, and to enhance the through 2018. in 2013 to PKR6.19 billion. customer experience.’ The competitive landscape in Qatar is changing at a rapid pace. An increasing Turkish operators test Qatar IT market set for number of global ICT companies domestic 4G base fast growth are now competing with local ICT The IT services market of Qatar is providers, either directly or through station partners, as they strive to capitalize A group of Turkish telcos and changing at a rapid pace. Qatar is on the myriad ICT opportunities equipment manufacturers have expected to lead IT services spending present within the country. However, developed a new 4G-enabled base in the region through 2018, according this increasing competition is exerting transceiver station (BTS) ahead of to International Data Corporation downward pressure on project pricing, next month’s planned multiband (IDC). IDC is the premier global which is impacting the margins of spectrum auction, reports Hurriyet provider of market intelligence and many ICT providers in the region. Daily News. The cell site, which is advisory services. ICT project pricing is also becoming said to meet ‘global standards’, According to IDC’s latest forecast, more complex as greater numbers of has been jointly developed by the combined IT services market of organizations expect their ICT partners telecoms companies Netas and some of the countries in the region, to develop and implement solutions Argela and defense manufacturer including Qatar, Oman, Bahrain, that are capable of solving their Aselsan, and will serve Turkey’s and Kuwait, is expected to expand specific business challenges rather three GSM operators – Turkcell, at a compound annual growth rate than merely meeting their operational Vodafone Turkey and Avea – all of (CAGR) of 12.5 percent over the requirements. which have signed an agreement coming years to total $1.82bn in to trial the BTS over a three- to four- 2018. The global advisory services IT services maturity has significantly month test period. As previously firm expects this growth to be driven improved in the region, and both reported by TeleGeography’s by government-led infrastructure public and private sector organizations CommsUpdate, Turkish regulator development projects, e-government are looking at implementing complex the Bilgi Teknolojileri ve Iletisim initiatives, transformations in the IT solutions while addressing the Kurumu (BTK) has set a date for the transportation and banking and challenges associated with finding upcoming frequency auction of 26 financial services sectors, and private and retaining experienced in-house IT May; the tender will include 20 sector developments as governments personnel,” said Samuel. “As a result, spectrum lots across the 800MHz, in the region pursue diversification organizations are expected to take a 900MHz, 1800MHz, 2100MHz and strategies into non-oil sectors. cautious approach to CAPEX outlays 2600MHz bands, while a block of “The willingness of CIOs to procure when implementing ICT solutions, and 2600MHz spectrum will also be outsourcing services is increasing this is also expected to drive spending reserved for a new market entrant, across the OGCC countries,” says Eric on hosting, cloud, and managed although the newcomer will not be Samuel, a senior analyst for IT services services over the coming years.” obliged to launch GSM services. at IDC Middle East, Africa, and Turkey. “And we are now at a stage where CIOs Third Arab Meeting are actively evaluating the capabilities AWCC looks to bolster of ICT service providers to build and on Digital Terrestrial data revenue with new operate their ICT environments. Some organizations are already reaping Television Broadcasting charging platform the benefits associated with these Holds in Morocco Afghan Wireless Communications technologies, such as improved Egypt, represented by a National Company (AWCC) has selected operational efficiency, reduced capital Telecommunication Regulatory Redknee Solutions to provide expenditure, and enhanced ICT Authority (NTRA) delegation, is taking its Redknee Unified billing and management. And as the outsourcing part in the third meeting on digital policy solution, to help monetise services offered by ICT services broadcasting on its data services and to improve providers mature over the coming 13- 16 April in Morocco which aims and expand the operator’s range years, we expect the adoption of such to pursue coordination on terrestrial of value added and personalised services to increase notably.” television channels in the Arab services. According to the vendor, region. The meeting is organized by the new platform will give AWCC The IDC data shows that the OGCC the International Telecommunication access to new business models and IT services market reached a total Union (ITU) Radio communication partnerships with over-the-top value of $1.13bn in 2014, up 11.7 bureau, in cooperation with the (OTT) providers. Commenting on percent on 2013. Qatar presented Arab Spectrum Management Group the pact, AWCC managing director the strongest growth in the region, (ASMG). It gathers Arab countries

page_19 REGIONAL & MEMBERS UPDATES

SAMENA TRENDS _ APRIL_2015 including Egypt, Saudi Arabia, behaviors in the region are becoming 70-100 million units for the first time United Arab Emirates, Bahrain, increasingly differentiated, with the in 2015, generating between USD 18 Kuwait, Iraq, Lebanon, Libya, public looking for a superior service billion to USD 28 billion in revenues. Morocco, Tunisia, Oman, Yemen, experience whether for business, “The majority of upgrades will take Syria, Jordan, Palestine and Qatar. entertainment, social media, or place in the GCC, which has the highest This in addition to some of the international roaming connectivity. penetration levels, whereas in large non-Arab neighboring countries. Zhou Qingwei, regional vice president parts of North Africa, with much lower of Huawei Middle East, also shed smartphone penetration, many will be The Egyptian delegation, light on how operators can derive new adopters, buying a smartphone comprising NTRA and the Radio further commercial benefits from their for the first time,” the consultancy said and Television Union (ERTU) investments in customer experience in a forecast of digital behavior in the representatives, participates with management infrastructure. Such region. The Middle East is adopting the aim of efficient involvement an approach implies creating agile the latest technological advances that and exertion of strenuous efforts platforms with more options for have permeated every aspect of our in order to get best results to serve personalized user preferences, the use lives: from banking and interaction the country’s national interests. of predictive network benchmarking, with governments to entertainment Egypt will coordinate with Arab and methods for improving resolution and work. Nowhere is this is more and non-Arab countries like times through an orchestrated evident than in the so-called “Internet Cyprus, Greece and Turkey in order service operation center. “Customer of Things” (IoT), which offers people to protect the Egyptian allocations experience management is a complex, the capability to remotely control and provide digital dividend bands evolving discipline. The public’s multiple aspects of their lives, such that will be allocated to mobile requirements are evolving and the as switching off lights at home via and other services. Technical capabilities of modern ICT networks wearable devices, and enables a new agreements necessary to carry out are also increasing. By enhancing our generation of wireless machines to the registration of terrestrial TV own SmartCare solutions, Huawei is interact with one another, helping to channels are to be signed in that committed to helping operators better connect entire grids and networks of meeting. connect to their customers and be cities. better prepared to meet their needs dynamically; maximizing the value of IoT biggest revenue driver for Telecom operators their CEM investments,” said Qingwei. telecoms urged to tap Big Data During the summit, VIVA Kuwait was While companies have yet to honored by industry organizers with completely harness the power of the potential the “Best CEM Culture Transformation technology, as much as 2.8 billion Telecom operators must tap the Program” having utilized Huawei’s IoT wireless devices were shipped benefits of Big Data analytics SmartCare solution to help enable globally, and 25 million IoT devices are easy handling of a growing portfolio expected to be shipped to the Middle of data-rich communication offerings. East this year alone. Regional adoption A new generation of Customer of IoT will continue to outpace global Experience Management (CEM) growth, and that trajectory will only platform is now being advanced within move upwards as governments the Middle East to empower operators and companies invest in smart city with a holistic approach to excel the developments across the Middle East, quality of customer services. Huawei’s with Gulf Arab states taking the lead. own SmartCare framework enables The Middle East and Africa reportedly operators to offer better subscriber generated more than 30 exabytes (30 experience and swiftly identifies billion gigabytes) of cloud data traffic subscriber concerns, a statement said. in 2013, and, with greater adoption A strategic component of Huawei’s of IoT, that figure is predicted to rise professional service portfolio, the eight-fold to over 260 exabytes in 2018, award-winning SmartCare solution generating the highest cloud data capabilities to understand the has already been deployed for several traffic growth in the world, according dynamics of service demands tier-1 global operators and is currently to Deloitte. “With IoT fuelling such and packages verities to provide under implementation for leading high growth in data creation and more contextual offers to the service providers in the Middle East, cloud traffic, it is undoubtedly seen as public, said experts at a recent according to the statement. potentially the biggest revenue driver forum in Dubai, UAE. Top industry for telecoms companies in the future,” authorities teamed up with GCC drives digital Deloitte notes. Huawei, a leading global ICT solutions provider, to explore consumption Regional telecoms operators are innovative ideas for operators Zain Kuwait and equipment vendor beefing up their IoT capability, with to assure a superior customer- Middle East consumers could spend UAE telecom firm Etisalat developing service experience and cope with around USD 37 billion on media international machine-to-machine the dynamics of a service-driven content this year and USD 28 billion (M2M) research and development digital economy at the fourth on smartphone upgrades as digital partnerships, and establishing an annual “Customer Experience consumption soars in the region, M2M Control Center providing IoT Management in Telecoms Middle particularly in Gulf Arab states. services such as device management East Summit”. Summit participants Management consultancy Deloitte since 2011. were unified in their recognition Touche Tohmatsu said smartphone that customer demands and upgrades were expected to surpass

page_20 REGIONAL & MEMBERS UPDATES

SAMENA TRENDS _ APRIL_2015

Others sectors expected to the segment the fastest growing both the knowledge of our history by benefit are utilities, transportation regionally and globally. More than introducing it to local and international and logistics. “LTE [long term 66% of Internet users in Saudi Arabia audiences,” he added. ictQATAR is evolution] deployments in the played games online, suggesting high responsible for developing programs region have progressed far faster demand for services. Deloitte expects and taking actions required to in the Middle East than in the UK, regional smartphone users to pay up digitize national cultural heritage and with partnerships already forming to USD 26 on applications per month, publishing it online in collaboration for 5G [fifth generation mobile led by gaming, especially with strong with authorities. QM is responsible for networks],” Deloitte said. “IoT may local and regional content available. developing, promoting and sustaining still seem to be a distant future, the cultural sector. The MoU is part but in reality, it may revolutionize of the Media, Culture, and Heritage the Middle East sooner than we The Peninsula ictQATAR, National Digitization Plan unveiled in think.” QM sign 3D digitization 2014. On the sidelines, ictQATAR and Qatar National Library organized a MoU workshop on heritage digitization. Millennials Spending The Ministry of Information and The rise of IoT is also changing Communications Technology consumer behavior. The (ictQATAR) and Qatar Museums TRA hosts workshop on ‘millennial’ generation - a term yesterday signed a memorandum of safety of civil aviation used for people born after 1980 understanding (MoU) for digitizing - are notoriously different from The Telecommunications Regulatory 3D materials, with QM becoming the Authority (TRA) hosted a workshop on the previous generation with an 3D Conversion Centre for Qatar. It was aversion to print newspaper and the security and safety of civil aviation signed by Reem Al Mansoori, Assistant in the country. It was organized by the cable TV programs, preferring to Undersecretary of Digital Society, ICT consume media content - often UAE Computer Emergency Response and Society, ictQATAR, and Mansoor Team (aeCERT) at the TRA, with for free - online. There are an bin Ebrahim Al Mahmoud, Acting estimated 125 million millennials the participation of major national in the Middle East, and companies airlines and airports, along must find new ways to attract with some private aviation them as they now make up 37% of companies, agencies and the population. “Millennials in the departments concerned with Middle East are willing to spend the topic. The workshop was on media, an industry which has intended to showcase latest seen positive growth in recent technologies and certified years,” Deloitte said. “It is up to software in the capacity of the key players in the industry maintaining the highest to differentiate themselves and levels of safety and reliability, respond to the evolving, tech- as well as the procedures to savvy and influential millennial be taken to raise safety levels, consumers.”These millennials and their expected impact spend USD 300 on average per and effectiveness in the near future. The discussions person -- compared to USD750 CEO, QM. “The ministry believes in also focused on the most important in North America -- with a the importance of preserving Qatar’s challenges and opportunities related primary focus on pay-TV, music heritage by harnessing the potential to the aviation industry and the points and computer games.”By 2017, of ICTs and capitalizing on expertise that should be the focus of scientific Saudi Arabia is expected to be and skills of parties connected to that research in this field in the future, in the largest pay-TV market in the sector. Working with all bodies in the order to improve safety standards and Middle East generating annual fields of media, culture and heritage, promoting them on a global level. revenues of USD 466 million, we can develop new methods on how “Our business strategy is based on compared to USD 404 million to preserve our heritage and how to thought processes to find proactive in the UAE and USD 258 million make it available and accessible in and preventive solutions, and this in Egypt,” Deloitte estimates. newer digital formats in line with best approach is applied to all relevant However, only 11% pay for legal international practices,” Al Mansoori sectors in the TRA’s field. The aviation music downloads. The music said. “The MoU is another step industry is one of the most important market in the Middle East is valued forward on implementing ictQATAR’s economic influences of the nation, at under USD 2 billion, compared digitization project to preserve and where national companies assume a to USD 15 billion in the United share Qatar’s Arabic and Islamic prominent position in the world, which States alone. “The lower spending heritage. Making our 3D heritage requires us to improve the safety on this segment is attributed in available online, we hope the project and security regulations adopted for large part to the availability of free would be of a great benefit for our technological standards in this sector,” downloads in addition to limited citizens, students, researchers and all said Hamad Obaid Al Mansouri, TRA accessibility of live music, which is those interested in studying Qatari Director General. The UAE, represented heavily concentrated in the UAE,” heritage and culture,” she added. by the TRA, has presented a work Deloitte said. While millennials “The MoU translates our vision for paper showcasing clear mechanisms may not be keen to part with developing, promoting and sustaining to keep track of civil air traffic paths, cash for music, they are willing the cultural sector at the highest through their participation at the ITU to open their wallets for gaming. standards,” said Al Mahmoud. 3D Plenipotentiary Competition (PP14), The new generation is expected to materials digitization is important held in Korea in October 2014. Source: spend USD 1.7 billion on mobile in making our heritage available for http://gulftoday.ae gaming alone this year, making students and researchers here and from around the world thus enriching

page_21 REGULATORY & POLICY UPDATES

SAMENA TRENDS _ APRIL_2015

Regulatory NEWS

Prasad reviews spectrum will lead to efficient use of radiowaves by enabling telecom operators, who have sharing norms with DoT a lower subscriber base or unutilized officials spectrum, to trade in it. Telecom Minister Ravi Shankar Prasad Monday reviewed the progress on TRA holds workshop on spectrum sharing and trading guidelines with senior DoT officials. Prasad instructed “Impact of Globalization officials to examine recommendations of Telecom on Regulatory of regulator TRAI keeping in view the present and future market potential of Activities” the telecom sector, sources said. “The Telecommunications Regulatory Authority (TRA) Bahrain held a workshop at their minister met senior officials to discuss Regulatory headquarters on April 16, 2015 on the spectrum sharing and trading guidelines. “Impact of Globalization of Telecom on Updates He conveyed that while framing the Regulatory Activities.” The Authority guidelines, the viability of the telecom invited experts to speak at the workshop; sector should be kept in mind,” a source Mr Sander Koch, Managing Partner said. It was, however, not confirmed if the and Mr. Olivier Staub, Partner of Telecom Commission will be discussing Management Consultants. the guidelines in its meeting scheduled to take place on April 29. The Minister The workshop agenda included had earlier announced that the guidelines discussions on the factors effecting telecoms sector around the globe such would be brought out shortly. Spectrum as shifting value chain, commoditization sharing will allow telecom companies to of network operators, and the topic of share their unutilized airwaves with other much global debate; Net Neutrality. The service providers in the same telecom Nova experts then shared the reactions circle. The Telecom Regulatory Authority of telecommunications regulators around of India (Trai) last year had recommended the world to these factors and how they sharing of all categories of telecom are being tackled in terms of policy setting airwaves held by operators including and regulatory frameworks. Members spectrum allocated at old price of Rs of TRA Bahrain then held a discussion 1,658 crore or assigned without auction. with the experts what Nova’s proposed The regulator had also recommended available options are for the Authority. allowing trading of spectrum. At present, only government is allowed to allocate spectrum to telecom firms through auctions. Once trading is allowed, it is

page_22 REGULATORY & POLICY UPDATES

SAMENA TRENDS _ APRIL_2015

EU telecoms reform to of India (TRAI) has asked mobile country. The Kenya Information operators to obtain undertaking of and Communications Act, 1998 address competition ownership from subscribers seeking and the Kenya Information and from WhatsApp, Skype to port numbers and disconnect Communications (Broadcasting) them if the information is found Regulations, 2009, mandate the The European Commission will take to be incorrect. “...the Authority Authority to prescribe a programming into account increased competition code for free-to-air radio and television hereby directs the holders...having from cable operators and alternative services. The Programming Code is authorization to provide access service services such as WhatsApp FB.O meant to set standards for time and to incorporate in their porting request when it overhauls Europe’s telecoms manner of programs to be broadcast form an undertaking, to be obtained rules next year, a move that will be by the licensees. In particular the Code from the subscriber seeking porting of cheered by the telecoms industry. aims to his mobile number declaring that he is A draft seen by Reuters of the the owner of the said mobile number,” The Code takes cognizance of the Commission’s strategy for creating Trai said in its directions issued on lasting impact that media has on a digital single market says telecom Thursday. “In case the undertaking society. The Code has therefore been operators compete with “over-the- is found to be false, the said mobile developed to reflect Kenya’s national top” services “without being subject number shall be disconnected and values, aspirations and dreams and to the same regulatory regime”. “It is furnish the compliance report within at the same time ensure that the necessary to design a fair and future- twenty one days from the date of issue broadcasting industry displays a high sense of responsibility, morality, proof regulatory environment for all of this direction,” Trai said. services,” the document says. fairness and honesty at all times. The Authority said disputes regarding To protect consumers of broadcasting The bloc’s telecom firms such as the ownership of mobile numbers, services, the Authority has also Orange ORAN.PA and Deutsche after porting from one service provider developed a draft Complaints Telekom DTEGn.DE have long called to another, have come to its notice. Handling Procedure. The Procedure is for lighter-touch regulation, after years So, in order to strengthen the process meant to provide a fair, uniform and of declining revenues and competition of verification of the ownership of effective mechanism for resolving from new entrants, to enable them mobile number under porting, the broadcast content related complaints to invest in network upgrades. Authority invited the comments escalated to the Authority for Telecom companies point to increased of stakeholders on obtaining an regulatory intervention. Comments competition from services such as undertaking of ownership of the from the public and all interested parties are invited and should be Skype (owned by Microsoft MSFT.O) mobile number from the subscriber submitted through e-mail code- and online messaging as a reason at the time of porting. “The Authority [email protected] before May 8, 2015. for easing the regulatory burden. examined the comments received Considering Skype, or any other “voice- from the stakeholders and decided to over-IP” application, as a substitute for mandate obtaining of an undertaking Pakistan blocks 26 traditional phone services could lead of ownership of the mobile number million SIMs following to those companies being subject to from the subscriber while submitting the same obligations as traditional request for porting,” it said. re-verification drive operators, such as offering emergency Pakistan’s cellular operators are to calls. MNP currently allows users to retain block a total of 25.9 million unverified their numbers while changing their or disowned SIMs as a result of the recently concluded re-verification The new European executive, who operators within the same service area. India has 22 telecom circles, or service program, ProPakistani writes. took office in November, has made Customers confirmed 71.1 million areas. Government has asked telecom investment in superfast broadband SIMs through the course of the 90- a priority. But incumbent telecom firms to implement full MNP by May 3, day project, whilst 16.7 million SIMs operators say the current set of rules a move that will enable subscribers to were rejected by customers as they does not provide incentives to invest retain their numbers when they shift to were wrongfully registered to them, in their networks. They argue they other states or licensed service areas. or were no longer in use. A further would be forced to give competitors It has also warned the operators of 9.2 million SIMs were not verified by access to those networks, an argument action if they miss the May 3 deadline the deadline and will be blocked. The rejected by smaller alternative for rolling out the full MNP. re-verification drive was ordered by the government following a terrorist operators. Yet an evidence document attack on a school in Peshawar in backing up the strategy, also seen Kenya Communication December 2014, during which it by Reuters, states that incumbents was revealed that the terrorists had “appear to lack incentives to overbuild Authority opens used phones with verified SIMs. The their own largely depreciated copper consultations on drive required customers to confirm network assets.” their identity via a biometric scanner, Broadcast Services which checked their thumbprint against the data registered to their TRAI Tells Telcos to Programming Code and computerized national identity card Undertake Ownership Complaints Procedure (CNIC). Sector watchdog the Pakistan The Authority has called for comments Telecommunication Authority (PTA) From Subscribers for from the public and all interested has called the program a success, parties on the draft Program Code although many remain skeptical of MNP and Complaints Handling Procedure the impact the crackdown will have on The Telecom Regulatory Authority for broadcasting services in the terrorism in the region.

page_23 REGULATORY & POLICY UPDATES

SAMENA TRENDS _ APRIL_2015

Norwegian-owned reportedly with the data charges being paid by The telcos will together contribute blocked the most SIMs, according to start-ups and large companies. BRL3.6 billion (€1.1 billion). The unofficial and unconfirmed data sent to majority will be split between the ProPakistani by a PTA source, with 8.53 Social media saw a huge debate on big three – America Movil’s , million rejected or unverified, whilst Airtel Zero with experts and free Telefonica-owned Vivo, and Telecom market leader Mobilink was a close Internet advocates saying that the Italia’s local unit TIM will pay BRL1.19 second, disconnecting 7.55 million. product violates principles of net billion each – while is China Mobile’s Zong and Ufone, the wireless arm of fixed line incumbent neutrality. Also over the last few responsible for the remaining BRL18 Pakistan Telecommunication Company months, operators like Reliance million. The telcos have a strong Ltd (PTCL), blocked 4.5 million and Communications and Uninor have interest in facilitating the transfer 3.86 million respectively, whilst 1.65 tied up with players like , of television signals, since until that million Warid SIMs were blocked. WhatsApp and Wikipedia to offer free occurs they will be unable to use the usage to consumers. Prasad added 700 MHz spectrum they bought last that Internet is one of the finest year, Bicalho said. Telecom Ministry to creations of the human mind and it is a Submit Net Neutrality property of the entire human race and raised BRL5.85 billion in its sale not of any country or society.”Internet of 700 MHz spectrum in October. Report by May 9 to become entirely global should have Claro, Vivo and TIM won nationwide Amid a raging debate on providing a link to local and when we talk of 700 MHz licenses, paying between equal Internet access to all, the digital inclusion it must be available BRL1.93 billion and BRL1.95 billion government has set up an expert to the underprivileged and on the each, while Algar Telecom picked panel to look into the issues of margins,” Prasad added. In January up a license covering the four states net neutrality and a report on the this year, the government had set up in which it operates for BRL29.57 matter is expected in a month’s time. a six-member committee headed by billion. Two of the six licenses on Telecom Minister Ravi Shankar Prasad A K Bhargava, Member (Technology), offer did not attract any bidders. said telecom sector regulator Trai is following some operators bid to Brazil’s fourth largest mobile operator holding wide consultations on the charge extra for voice call services like did not take part in the contest. issue and its report is also awaited.”Trai Skype and Viber. Countries like the When it announced the results of the is undertaking a consultation on the US, Chile, Netherlands and Brazil have competition, Anatel noted that the issue of net neutrality. Trai being an already adopted Net Neutrality. Last winning bidder would be expected to advisory body, their advice is certainly month, Telecom Regulatory Authority bear the cost of any measures required entitled to our respect, which I am of India (Trai) also started the process to avoid interference with digital TV awaiting,” Prasad told reporters in to prepare regulatory framework for services and the cost of migrating the New Delhi.Net neutrality implies equal Internet-based calling and messaging TV channels to their new frequencies. treatment be accorded to all Internet applications like Skype, Viber, traffic and no priority should be given WhatsApp and Google Talk, known to any person or entity or company as over-the-top (OTT) players. The NCC to hold telecom based on payment, which is seen as regulator has sought views of people hearing discriminatory. Prasad further said: interested in the matter by April 24 The National Communications “Way back in January itself, I have and counter comments by May 8. Commission (NCC) is scheduled to hold also constituted a committee headed an administrative hearing on Monday by senior government officials of Brazilian telcos pay into in a bid to solve the controversy over the Telecom Ministry to give me a Asia-Pacific Telecom’s (APT) proposed report on the whole gamut of net digital switch-off fund merger with Ambit Microsystems neutrality objective, its benefits, and its roaming agreement with the Claro, Vivo, TIM, Algar will together advantages and limitations including Taiwan Mobile. the regulatory and technical issues.””I pay €1.1 billion to help free up 700 MHz band. The winning bidders in have asked them to give me a report Fourth-generation telecom service Brazil’s recent 700 MHz spectrum by the second week of May after the operators had filed a joint complaint auction have made their first payment widest consultation possible including questioning the legality of the APT- into a fund that will contribute to the online to help government come to Taiwan Mobile roaming deal. Roaming costs of switching analogue TV signals an informed decision on this issue. is defined as allowing one carrier to digital. Since I am awaiting these reports, to continue servicing its customers it will not be proper for me to make in out-of-service areas by using Claro, Vivo, TIM and Algar Telecom any comment.”Net neutrality, a widely the networks of other carriers. An together paid 1.44 billion reais (€440 debated issue globally, has in the past investigation by the commission found million) into the fund, according to few days caught India’s attention with that instead of increasing the number an Estadao piece published by R7 on politicians, corporate leaders and of its base stations in accordance with Sunday. The fund, known as EAD, was stars taking to social media sites such its business plan, APT had been using created in the last month, the report as Twitter and Facebook to debate Taiwan Mobile’s network to serve said, quoting José Alexandre Bicalho, on the issue.Net neutrality gained clients in its service area, which does planning and regulatory head at national attention after Internet not meet the definition for roaming. activists and experts flagged Telecom Anatel. That sum constitutes 40% of the total amount the telcos will pay giant Bharti Airtel ‘Airtel Zero’. Airtel The commission also found that into the EAD. The remainder will be Zero is an open marketing platform although it had not yet approved paid in two installments in the next that allows customers to access a the APT-Ambit merger, APT had two years. variety of mobile applications for free, begun using Ambit’s core network.

page_24 REGULATORY & POLICY UPDATES

SAMENA TRENDS _ APRIL_2015

The commission first fined APT and TeliaSonera and Telenor agreed to The regulator said it would carry out Taiwan Mobile NT$600,000 each merge their Danish operations late a series of tests on the network to for using a system not listed in their last year, a move that would leave verify the accuracy of Free’s coverage business plans and for failing to three mobile network operators in the map. Iliad’s Free acquired its license in report the roaming partnership to market. The merged entity would have 2010 and launched services in January the commission. It also fined APT and a market share of around 40%. The 2012, relying mainly on a roaming Ambit NT$300,000 each. two remaining players – incumbent deal with Orange for coverage while TDC and the market’s smallest player it built out its own network. The As these controversies affect other 4G 3 – might struggle to compete terms of the license required Free to carriers and service providers, such as effectively with the merged outfit, the cover at least 75% of the population WiMAX operators, the commission Commission said. “This could lead to of metropolitan France with its own said it would focus on two issues at higher prices and less innovation,” it 3G infrastructure by 12 January this the hearing. First are the obligations warned. year. “Despite a difficult backdrop for required for each carrier in a merger mobile network rollouts, Free Mobile before they can secure approval The Commission also pointed out that has managed to deploy around 5,000 from the commission? Specifically, both Telenor and TeliaSonera offer sites,” the telco said in a statement the commission wants to determine fixed broadband and TV services, as on Friday. Challenges included the if carriers should offer more base well as having mobile offers under requirement to comply with laws stations, wider service coverage, faster multiple brands. On the mobile linked to exposure to electromagnetic transmission speeds, larger service side, the telcos already have a wide- waves and to co-owned properties, capacity and more efficient use of ranging network-sharing deal in place. Free said. It also implied that it had the frequency than the commitments “My aim is to make sure that the had difficulty gaining access to sites they have listed in their business plans proposed transaction will not lead to used by other operators, even though before a merger is allowed to proceed. higher prices to Danish consumers such access is mandated by their The other issue relates to the problems and businesses,” said European respective licenses. The firm said it that a carrier encounters if it employs competition commissioner Margrethe aims to reach 90% of the population a different core network system from Vestager. The Commission has 90 days by January 2018. In addition, it expects the one listed in its business plan after to carry out the probe. It is due to its 4G network coverage to reach 60% it is granted a license. As an example, make a decision by August 19. of the population by the end of this the commission said it wanted to year. Free insists it is putting its money stipulate the procedures that a carrier If other similar cases are anything to go where its mouth is. The telco’s capex- must follow if it decides to change by, the Commission will likely approve to-sales ratio stood at 23.2% last year, from voice over long-term evolution the merger provided the telcos agree while its three competitors in the system to the circuit-switch fallback to certain remedies designed to mobile network space recorded ratios system. safeguard competition, such as the of 14.5%-15.6%. Of course, Orange, divestment of spectrum – Berenberg and - The agenda set by the commission analysts suggest 3 could be the main SFR have been investing in mobile for the administrative hearing is likely beneficiary from such a requirement infrastructure for a much longer to disappoint some carriers, which – or the establishment of favorable period. want it to include other issues, such conditions to enable newcomers into as whether there should be a lockup the market. Indeed, the Commission period after a frequency auction noted that the consolidation of Indian Regulator to barring the trading of frequency network operators also reduces the Review of Mobile blocks among carriers. Some carriers choice of host network for wholesale also want the commission to specify customers. “Finally, the merger would Networks Accounts requirements for carriers applying for result in a highly concentrated market India’s telecoms regulator has started a merger, in case some carriers obtain structure with two large and symmetric a review of the local mobile network the spectrum first and then merge with operators at the retail and wholesale operator’s accounting systems. The one another to monopolize ownership level,” it said. “The Commission has review was prompted by apparent of a spectrum. concerns that this could lead to concerns about how they are required coordination between the remaining to book some of their products and operators.” network licenses. The concerns were European Commission raised by the industry itself. probes Telenor- Free meets regulatory The Accounting Separation TeliaSonera Denmark requirement to reduce Regulations, 2012 requires the mobile networks to provide a breakdown of merger reliance on roaming their costs, and any cross subsidies Consolidation of mobile networks France’s smallest mobile operator says and billing between subsidiaries. could damage competition and network reaches 78% of population; The regulator, the TRAI said that the lead to higher prices for consumers, aims for 60% 4G coverage by year- mobile networks had raised concerns Commission warns. The European end. Free Mobile has rolled out its about how the regulations are being Commission on Wednesday opened 3G network to reach 78% of the interpreted. The operators also an in-depth investigation into the French population, thereby meeting expressed concerns on requirements planned merger between Telenor and the requirements of its license. In relating to adoption of accounting TeliaSonera in Denmark, expressing January Arcep asked Free to prove separation reports by company’s concerns that the deal could have that its network met the coverage board and audit. A lack of clarity a negative impact on competition. obligation imposed by its 3G license. in the accounting, and taxation, of

page_25 REGULATORY & POLICY UPDATES

SAMENA TRENDS _ APRIL_2015 telecoms operators in India has been sensitivities. He added that his own possibility of insider trading of Mobily a problem for several years, and the firm’s business had grown substantially shares. Meanwhile, the Ministry of new investigation could be the start of in the last few months as some Commerce said it had referred a a long overdue tidy up. customers began to find fees charged number of MMG board members by the big international auditors too to the Bureau of Investigation and steep. Another sign of the regulatory Public Prosecution over possible MIDEAST MONEY-Saudi pressure is a rise in fines levied by the violations of the companies law. It firms tighten controls in CMA on listed companies for violations did not identify the board members. such as inadequate disclosure of The decision “comes as part of a plan wake of Mobily scandal information. They rose 46 percent by the ministry to tighten oversight When Saudi Cable Co said last month from a year earlier to 1.83 million of violating companies and take it was delaying the release of its 2014 riyals ($488,000) in the first quarter necessary steps to protect shareholder earnings statement, because it was of this year - not a huge burden for capital,” the ministry said. One still compiling information required the companies involved, but a signal regulatory reform that may emerge of the regulator’s intentions. The CMA from the MMG and Mobily affairs, is acting to ensure a successful stock some analysts believe, is clarification market opening, which is an important of which part of the government is part of the government’s strategy to responsible for supervising auditors. create jobs and diversify the economy At present the Ministry of Commerce beyond oil, said a Gulf executive supervises chartered accountants who does business in Saudi Arabia. while the Saudi Organization for “They have no choice but to step in, Certified Public Accountants, a private otherwise Saudi as a market will lose body, develops and reviews auditing credibility and people won’t invest. standards. Some securities analysts “Companies are preparing themselves believe such authority should be to become more disciplined and consolidated under the CMA to avoid regulated because they realize they any confusion. “Some entity like the will be questioned more. The sooner PCAOP (Public Company Accounting by an external auditor, it was a sign they begin this process, the less Oversight Board) in the of growing regulatory pressure on expensive it will be.” should be established in Saudi to companies in the kingdom. Regulators monitor auditors, and it should be are signaling they want corporate Reputation under the umbrella of the CMA,” said managements to tighten governance Saudi Arabia has a relatively good Mazen al-Sudairi, head of research at and strengthen internal controls as reputation for corporate governance al-Istithmar Capital in Riyadh. John the $500 billion Saudi stock market in the Arab world, and the Mobily Sfakianakis, Riyadh-based Middle East prepares to open up to direct foreign debacle - which the firm attributed director of the Ashmore Group, an investment in the next few months. to excessive booking of revenue from investment firm, said the furor over The process has become more wholesale broadband leases and corporate irregularities at major Saudi urgent since an accounting scandal mobile promotional campaigns - does companies would in the long term be erupted at telecommunications firm not necessarily indicate a string of a blessing in disguise. “Both investors Mobily , which in February revised scandals waiting to explode. The CMA and companies will now look at the its 2014 earnings to a loss of $243 is viewed by fund managers as one of things they need to avoid,” he said. million from the $58.6 million profit the strictest stock market regulators previously claimed. The Mobily affair, in the Middle East. But the Mobily and the probe into it launched by shock came at a time when regulators EU mobile operators the Capital Market Authority (CMA), were already grappling with another urged to consolidate have prompted many company thorny case, that of construction firm If Europe wants its mobile networks managements, board members and Mohammad Al-Mojil Group (MMG). to be as advanced as those in the US, even major shareholders to become The firm ran into financial trouble further mergers are necessary among more conscious of risk, executives several years ago and has had its wireless operators, said Ronan Dunne, and analysts say. “What happened shares suspended since July 2012 the chief executive of Telefonica SA’s has set the alarm bills ringing and because of its accumulated losses. O2 unit. European regulations need pushed board members to revise their Last November, the CMA advised reforms to allow cross-border mergers, roles, made investors carefully check companies to stop engaging the local which will support investment in new financial statements, and caused unit of international accountancy firm networks and increasing wireless company managements to review Deloitte & Touche for audits from June data use, he said. Bigger companies, their accounts carefully,” said Turki 1, 2015, according to a circular seen Fadaak, head of research and advisory by Reuters. The CMA said its decision services at AlBilad Capital in Riyadh. was due to a case involving a firm “One sign of the new mood is that which it did not identify; Deloitte also the fees charged by some auditors declined to identify the firm, but said are rising as demand for their services it believed its audit of the client met grows. “The risks associated with what applicable standards. Industry sources happened to the listed companies said the firm was MMG. Authorities have caused companies to raise their increased the pressure on both MMG fees,” said a partner at a regional and Mobily last month by raising the auditing firm, speaking on condition prospect of prosecuting individuals. of anonymity because of commercial The CMA said it was investigating the

page_26 REGULATORY & POLICY UPDATES

SAMENA TRENDS _ APRIL_2015 like Telefonica and its peers with TRAI facilitates easy be protected through the provision operations in several countries, will of commercial interoperability of then be in a position to “roll up” migration between DTH CPEs and mandating transparent and some of the smaller operators. “This service providers upfront declaration of all charges place is just so fragmented” and that’s and conditions by the DTH operators The Telecom Regulatory Authority of discouraging acquirers, Dunne said. In at the time of providing service. India (TRAI) yesterday issued a tariff Europe “there’s a realization that you Commercial interoperability provides order (TO) prescribing a framework for need in-country scale, but you also for an exit option to a subscriber in Customer Premises Equipment (CPE) need some European champions”. case he wishes to change the operator or set-top box offered by the Direct- and avail the services from another to-Home (DTH) operators to their Telefonica agreed to sell its O2 unit DTH operator for any reason. Besides, subscribers. Under the new orders, in the UK to Hutchison Whampoa the transparent pricing and cap on not only would the DTH operators Ltd for £10.25bn (€13.95bn) last pricing the new orders also say that offer a transparent price declaration week. The merger will combine O2 DTH operators have to mandatorily of all types of Customer Premises with Hutchison’s Three business and offer an outright purchase scheme Equipment (CPE) to enable a subscriber take the UK mobile market from four players to three. It will also make the merged company the biggest wireless operator in the country with more than 30m subscribers.

The European Union’s competition commissioner Margrethe Vestager said last month that telecom consolidation shouldn’t “affect the affordable consumer prices.” The commission will probably decide on whether or not to approve the tie-up between Three and O2, the companies have said. Vestager’s predecessor, Joaquin Almunia, was criticised by some national regulators for approving similar deals that shrank the number of competitors in Austria and Ireland. While operators wait for new regulation to allow networks that across countries’ borders, there are two ways to grow through called Standard Scheme for all types to make an informed choice, but the acquisitions: combining with another of CPEs on standalone basis and transparent and upfront declaration wireless company or adding new they may offer additional schemes, of installation and activation charges services such as broadband and TV. including bundled schemes and rental by DTH operators shall not exceed “Scale is going to continue to be schemes. In the rental schemes, DTH Rs 450. DTH services in India have important and increasingly important,” operators can charge a specified one- been growing at a rapid pace since Dunne said. “We needed to be a buyer time interest-free refundable security they were introduced in 2003. Today, or a seller.” deposit, installation and activation there are six private operators offering charges from the subscriber during DTH services to around 73 million The deal with Hutchison creates one enrolment followed by specified subscribers. of the few remaining pure-play mobile monthly rental charges. No repair/ operators in the UK. Dunne declined to maintenance charges are permissible As these operators have launched comment on how a merged Three-O2 from such subscribers. In case of the services at different point of time, might participate in cross-border outright purchase and hire purchase deploying different transmission and deals. BT Group Plc, the former phone schemes, DTH operators may levy compression standards and encryption monopoly and biggest broadband visiting charges not exceeding Rs solutions, CPE deployed by one provider in the U.K., has agreed to buy 250 per visit after the warranty operator may not be compatible with EE Ltd, the biggest mobile operator. period. Subscribers shall have an the network of another operator. TRAI Plc, the pay-TV operator, and option of buy-back/refund for CPEs pointed out that if a subscriber wishes TalkTalk Telecom Group Plc, a TV in all the offered schemes including to migrate to another DTH operator and broadband provider, are both bundled schemes with an exception or cable TV platform, he is required paying O2 to resell its mobile service of rental schemes. DTH operators to invest in the CPE/STB of the other to their customers. Still, less than 2% may prescribe a lock-in period not operator. It has also been observed of the market buys all four services – exceeding six months for a subscriber that there is a lack of transparency in broadband, mobile, fixed-line and TV to remain committed. Subscribers can various schemes offered by the DTH – from the same provider now. While surrender the CPE any time subject to operators in the market, TRAI said that’s bound to go up, O2 executives levy of certain charges that have been while issuing orders. The Authority don’t think it will become the primary prescribed. www.tribuneindia.com is of the view that interests of way people buy phone and TV service, consumers in this regard can largely Dunne said.

page_27 REGULATORY & POLICY UPDATES

SAMENA TRENDS _ APRIL_2015

Ghana: spectrum PTA clarified that, Section 29 of the in the near future. The discussions Pakistan Telecommunication (Re- also focused on the most important auction and new Organization) Act, 1996 (the “Act”) challenges and opportunities related license framework will provides that “no terminal equipment to the aviation industry and the points shall directly or indirectly be connected that should be the focus of scientific drive competition and to a public switched network unless it research in this field in the future, in has been approved by the Authority”. order to improve safety standards and innovation shared in Hence, type approval of terminal promoting them on a global level. new research report equipment is a statutory requirement “Our business strategy is based on In 2014, Ghana was the 22nd largest under provisions of the Act and the thought processes to find proactive telecom services market in the Africa regulations are issued there under in and preventive solutions, and this and Middle East (AME) region, with this regard from time to time. It was approach is applied to all relevant estimated revenue of $1.2bn, a noticed that terminal equipment were sectors in the TRA’s field. The aviation 24.5% decrease compared with the being imported without obtaining industry is one of the most important previous year in US dollar terms. In type approval not only degraded economic influences of the nation, local currency however, the sector telecom services to end users but also where national companies assume a expanded by 10.4%. Spectrum hazards to health and loss to national prominent position in the world, which Auction and New License Framework exchequer. This is clear violation of requires us to improve the safety Will Drive Competition and Innovation Pakistan Telecom Act 1996 requiring and security regulations adopted is a new market research publication initiation of legal action against the for technological standards in this announced by Reportstack. This violators. PTA further clarified that sector,” said His Excellency Hamad report offers a precise, incisive PTA has also taken up the matter with Obaid Al Mansouri, TRA Director profile of Ghana’s mobile and fixed custom authorities and has provided General. “We believe in the need to telecommunications markets based a list of terminal equipment to them coordinate efforts with all entities on comprehensive proprietary data so that importers are facilitated and operating within the aviation sector and insights from our research in the import of terminal equipment without in the country in order to establish Ghanaian market. type approval by PTA may not be clear mechanisms to maintain the allowed. It is pertinent to mention highest levels of security and safety Published annually, this presentation- here that the said list does not and deal with emergency situations. quality, executive-level report provides include networking equipment such The presence of representatives from detailed analysis of the near-term as computer networking equipment all the companies involved in this opportunities, competitive dynamics i.e. networking switches, networking topic is proof of the seriousness and and evolution of demand by service routers, networking gateways, correctness of direction that we are type and technology/platform across LAN cable etc used for computer achieving at this stage,” said Adel the fixed telephony, broadband and networking only. It is clarified that Al Muhairi, aeCERT Director. The mobile sectors, as well as a review of custom authorities may release IT United Arab Emirates, represented key regulatory trends. equipment without NOC from PTA. by the TRA, has presented a work Therefore computer association claim paper showcasing clear mechanisms that PTA is imposing type approval on to keep track of civil air traffic paths, IT equipment is unfounded. through their participation at the ITU Plenipotentiary Competition (PP14), held in Korea in October 2014. This The TRA’s UAE Computer was adopted by the conference Emergency Response participants, which was comprised of the world’s largest gathering of Team (aeCERT) organizes member countries in the International an aviation security Telecommunication Union. The workshop witnessed the provision of workshop many ideas and unique solutions, while The General Authority for Regulating debates characterized a large degree the Telecommunications Sector (TRA) of seriousness and the interaction hosts a workshop on the security and between the audience, which included safety of civil aviation in the country, representatives from Emirates Airlines, organized by the UAE Computer Fly Dubai, Abu Dhabi Aviation as well Type approval of Emergency Response Team (aeCERT) as Abu Dhabi, Dubai and Sharjah at the TRA, with the participation of airports and representatives from terminal equipment a major national airlines and airports, private aviation companies in the requirement under PTA along with some private aviation country and experts in the field of companies, agencies and departments aviation safety and security. Act concerned with the topic. The Pakistan Telecommunication Authority workshop was intended to showcase has clarified a news story headlined latest technologies and certified “Computer equipment imported by software in the capacity of maintaining small vendors stuck up at ports” which the highest levels of safety and was published in The Nation on March reliability, as well as the procedures to 12, 2015. be taken to raise safety levels, and their expected impact and effectiveness

page_28 REGULATORY & POLICY UPDATES

SAMENA TRENDS _ APRIL_2015

To cooperate, or to coordinate: alternative operators’ FTTx dilemma

Operators’ commercial propositions and mobile) networks, with fibre (FTTx) come to terms with high speed/low and 4G technologies being used in latency broadband access adoption synergy in the context of operators’ ultra- largely driven by mainstream ‘data broadband strategies. Operators are hungry’ behaviours (video/TV, OTT, carefully offering tailored ‘consumable’ online gaming, simultaneous multi-user/ (e.g. family centric) and convergent multi-device usage, etc.), which require ‘data-centric’ offers (in mobility and at significant irreversible investments in next home) in order to exploit fixed-mobile generation access (NGA) infrastructures. synergies and to address diversified (ultra-)broadband needs, avoiding the In the 90s, cable operators invested risk of cannibalisation/substitution and significantly in developing proprietary maximising the monetisation of selected/ HFC* (Hybrid Fibre Coaxial) access gradual network investments. infrastructures with a business model built around pay-TV as anchor service which In order to lower risks associated with has driven multi-play adoption (DOCSIS infrastructures, alternative operators high speed broadband). However are increasingly seeking ways to reduce the lack of diverse ecosystem (OTT in the size of such investments. In fact, particular), and prematurity of demand investments – especially in fixed access have attempted the sustainability of such infrastructures – can be sustained only models and related investors’ returns; by a very small number of operators: many players suffered significant losses investments are sought mainly to sustain and even faced bankruptcy. the business within a medium-long time horizon in the context of ‘wearing New entrants and alternative operators thin’ traditional business models. The Federico Torri Manager seem to have learnt the lesson now. advantages of rolling out proprietary Analysys Mason Today investments are transforming infrastructure – vs. procuring ‘per user’ traditional telecoms infrastructures into wholesale products – will allow operators scalable and integrated / hybrid (fixed to tailor flexible and competitive retail

page_29 REGULATORY & POLICY UPDATES

SAMENA TRENDS _ APRIL_2015 offers, ultimately leading to important interest, however areas where such rolls-out a fibre infrastructure competitive advantage. interest is not uniform might be and sells wholesale services excluded, being subject to outside-in to operators’ retail division FTTx coverage today is still limited (independent and external) decision depending on their actual needs, largely due related high deployment mechanisms. should be able to reach a relevant costs and a demand not fully ‘scale’ condition and to align materialised yet; public policy and/ Traditional co-deployment initiatives different parties’ objectives by or regulatory bodies aim to promote are typically complex to manage • turning viable investment in areas FTTx infrastructure based competition (especially if asymmetric), and fragile/ where operators would not have by alleviating barriers to roll-out and subject to unexpected future changes considered to roll-out standalone providing appropriate wholesale tools. which significantly limit medium/ (see Figure 1), Nonetheless standalone viability of long-term visibility (especially vis- • facilitating independent FTTx roll-out is largely contingent à-vis irreversible nature of network evaluation on users’ migration upon scale of the operator in a certain investment). strategy by each operator area, with roll-out taking place initially participating, eventually making in economically viable areas only: More realistically operators aim to the compensation based on affluent / high dense areas where unit ultimately reach sufficient ‘scale’ to actual consumption of relevant cost of deployment are lower and enable co-ordination between fibre services by the parties take-up / market share expectations • roll-out plans (maximise viable are favourable. coverage/footprint) and • commercial strategy (exploit Alternative players with lower ‘scale’ national level marketing / are typically interested in targeting the branding). same areas. Co-operative deployment • A co-ordinated roll-out strategy (‘co-deployment’) in order to ‘share’ established, for instance, around roll-out costs and to mitigate demand an independent/separate related risks is certainly suitable in wholesale only operator which areas where each operator has an

Figure 1: Possible decisions’ outcomes [Source: Analysys Mason, 2015]

In this context, operators should seek appropriate models enabling demand aggregation (at ‘wholesale’ level) as well as customer base migration (at ‘retail’ level) from legacy to NGA networks, which represent necessary ‘variables’ in the equation for a successful FTTx roll-out.

page_30 REGULATORY & POLICY UPDATES

SAMENA TRENDS _ APRIL_2015

A snapshot of regulatory activities in samena region

Algeria Bahrain President: Mr. Toufik Bessai Chairman: Dr. Mohammed [Regulatory Authority for Al Amer Post & Telecommunication [Telecommunication (ARPT)] Regulatory Authority (TRA)] Minister of Post and Information and Bahrain’s telecoms regulator, the Communication Technologies Zohra Telecommunications Regulatory Authority Derdouri said that Algeria is interested (TRA) has started an investigation into in the South African experience in the complaints about mobile international Regulatory field of information and communications roaming bills and so called, bill shock technologies, said the ministry in a issues. TRA’s Director of Consumer Affairs Updates communiqué. Derdouri hailed, at the end Sh. Abdulla bin Humood Al Khalifa said of an audience granted to South African “During the first quarter of this year , minister of Telecommunications and not only did we notice an increase in the Postal Services Siyabonga Cwele, “South number of consumer complaints related Africa’s pioneering experience in the to roaming cases, but also an increase in field of information and communication the amounts being billed to consumers technologies.” This meeting is part of as a result of using mobile roaming. He the 6th Algerian-South-African High noted that one of the cases that is being Binational Cooperation Commission. The currently investigated has a value of BD two sides broached the nature of the 12,800 (US$33,760). Sh. Abdulla continued Algerian-South-African relations in this in stating that “During separate meetings field and the ways to create new dynamics late last year, TRA urged the three mobile of cooperation to this vital and important telecommunications service providers sector. Derdouri underlined the necessity to take voluntary actions regarding the to reinforce cooperation between the two roaming bill shocks such as establishing countries in this field and benefit from a maximum threshold to trigger warnings, South Africa’s experience, especially as and to adopt risk management measures the two counties have common goals and such as suspending the mobile services ambitious programs in the prospects of when an agreed limit is reached.” He creating major centers in the continent in further adds, “We are putting all of our the area of new technologies. efforts to resolve those cases in hand and (April 1, 2015) allafrica.com studying the implementation of additional

page_31 REGULATORY & POLICY UPDATES

SAMENA TRENDS _ APRIL_2015 regulatory measures to ensure that consumers are a consultation on the auction process to be held on April notified when they’re about to reach their limits to 26. May 12 is the deadline for submitting bid deposits, prevent them from incurring additional charges.” and the final auction will be held on May 20 following (April 20, 2015) cellular-news.com a mock auction the day before. The winners will be announced on the same day as the auction, according The Telecommunications Regulatory Authority (TRA) to the BTRC’s letter. However, there remains potential issued a public consultation document on the draft for further disruption, as the mobile operators on March regulation for a new approval regime for the importation 1 sent a letter to the finance ministry stating that they and use of Telecommunications Equipment connected would not take part in the auction since their various to public Telecommunication networks. The proposed demands remained unmet, including: withdrawal of draft regulation defines the roles and responsibilities VAT on sold spectrum; settlement of the case over tax of TRA and any person or entity wishing to import on replacement SIM cards; revision of the telecoms telecommunications equipment (connected to Public law; freedom to use spectrum for multiple purposes; telecommunications networks) into Bahrain. The draft and revision of tariff structures. In other Bangladesh regulation proposes the adaptation of international news, the government approved a draft law on March standards as basis for TRA technical specifications, 30 imposing an additional 1% surcharge on all mobile requirements and approval process, which would in turn phone-based service usage; if the law is passed by make the process slicker for the benefit of consumers and parliament, BDT1 (US$0.0126) will be deducted from licensed operators. Engineer Mohammed Bin Abdulla every BDT100 usage of any voice, data or value added Al Noiami, Technical & Operation – Director Said: The service, according to local newspaper the Daily Star. The draft regulation also proposes a system which aims to latest surcharge is additional to the existing 15% VAT ensure that imported telecommunications equipment levied on mobile service bills/credit top-ups. (connected to Public telecommunications networks) (April 1, 2015) BDNews24 meets certain pre-requisite standards to ensure the safety of users and that such equipment does not harm public telecommunications networks or cause harmful radio Egypt interference. He added: The new proposed approval Executive President: Eng. Hesham El Alaily regime process is transparent, non-discriminatory and [National Telecommunication Regulatory is based on international best practices. It will contribute Authority (NTRA)] to facilitate competition in the supply of a wide range The National Telecommunication Regulatory Authority of telecommunications equipment (connected to Public Board of Directors (BoD) held a meeting yesterday, chaired telecommunications networks), which should benefit by the Minister of Communications and Information consumers by increasing choices of new and modern Technology Khaled Negm, through which new technical equipment. sanctions to deal with breaches of Telecommunications (April 8, 2015) tra.org.bh companies in the Egyptian market were approved. Given its significance to Egypt’s national security, Negm Bangladesh has highlighted the importance of checking customer databases of mobile operators. He has also pointed out Chairman: Sunil Kanti Bose to the importance of improving the quality of mobile [Bangladesh Telecommunication Regulatory services. During the meeting, Negm discussed internet Commission (BTRC)] services prices and said that MCIT will address mobile Bangladesh’s 1800MHz/2100MHz mobile spectrum service providers to present their proposals on reducing auction, which has already been pushed back to May 20, service costs in the coming two weeks, to be reviewed by 2015, looks likely to be delayed again due to the failure NTRA. Moreover, the ICT minister spoke of monopolistic to settle a regulatory dispute over tax on replacement practices and means to prevent them from prevailing to SIM cards. Further postponement is now likely after protect customers’ rights, in line with the rules of free a meeting between the country’s major cellcos and competition. NTRA Chairman Hesham El-Alayly has various government figures failed to reach a positive announced the new sanctions, approved by BoD, are a outcome on the issue of disputed replacement SIM tax strong tool to penalize violators. Such an essential step back payments. The current auction schedule would will activate NTRA role as the sector’s efficient regulator. require operators to submit bid applications by 16 April. Yesterday’s meeting is the last for current members; the The recent meeting was attended by representatives new BoD will be announced later this month. of Airtel, Banglalink, GrameenPhone, Robi Axiata, the (April 8, 2015) mcit.gov.eg heads of the National Board of Revenue (NBR) and the Bangladesh Telecommunication Regulatory Commission Where should the global community focus its attention (BTRC), and the Telecommunications division secretary. over the next fifteen years? Health, nutrition and (April 15, 2015) Developingtelecoms.com education may seem like obvious top priorities but, more surprisingly, there is also a strong case for broadband The Bangladesh Telecommunication Regulatory access to be considered. Tripling mobile internet access Commission (BTRC) has pushed back the date for from 21% to 60% in developing countries over the next auctioning unused 1800MHz and 2100MHz band 15 years could make this part of the world $22tr richer. spectrum to May 20, 2015 from its previous schedule Achieving the 60% target for Egypt, where about 31% of April 30, after cellcos GrameenPhone, Robi Axiata, of the population are hooked up to mobile broadband Banglalink and Airtel Bangladesh requested the today, could mean an extra benefit of $257bn for the deferment. According to a letter from the regulator, the country. This means that every Egyptian could be about deadline for submitting applications is April 16, and a list $3,140 richer within 15 years. And such improvement of eligible bidders will be published on April 21 ahead of in the lives and earning potential of poor people could

page_32 REGULATORY & POLICY UPDATES

SAMENA TRENDS _ APRIL_2015 indirectly help with other challenges; more prosperous networks, with newly-launched 3G and 4G technologies people tend to be healthier, better fed and better accounting for more than seven million subscribers. The educated. This discussion matters, because the world’s company says it is providing 3G services in over 200 193 national governments will meet at the UN in cities, with 4G networks available in more than 50 cities. September next year to finalize a list of targets for the Irancell launched 3G services in September last year, world to meet by 2030. My think tank, the Copenhagen followed by 4G Long Term Evolution (LTE) technology Consensus, has asked 60 teams of economists, including two months later. (April 21, 2015) telegeography.com several Nobel laureates, to investigate which targets would do the most good for every dollar spent, to help South Africa based MTN expects to be able to transfer this meeting make the best choices. A World Bank study around USD1 billion in profits from its Iranian subsidiary showed that a 10% increase in broadband penetration if and when sanctions against Iran are relaxed. increased GDP growth by 1.4% in low to medium income International sanctions are expected to be relaxed over countries. This is important, because the digital divide the next few months following a deal over the country’s among developed and developing regions of the world nuclear program. If confirmed, then MTN’s 49% stake in still persists and closing it could give a big boost to Irancell could see a sizeable windfall for the company. development. For example, while mobile broadband is “We have in total an equivalent of about $1bn, which is used by over 83% of people in the industrialized world, both a loan repayment from Irancell due back to MTN, penetration is only 21% in developing countries. While as well as accumulated dividends,” Nik Kershaw, head of governments in Europe and elsewhere continue to invest investor relations at MTN told the Reuters news agency. in faster and better broadband, the biggest benefits “The lifting of the sanctions would then allow us to will always come from providing Internet connection start to repatriate some of the money.” Sanctions were to people who don’t already have it, most of whom imposed in 2006, which blocked MTN from repatriating live in developing and emerging countries. Here, the any funds from the Iranian subsidiary. The move came developing world can leap-frog industrialized countries, just after MTN was granted the license in the country eschew expensive fiber-optic cables in what is called the following the cancellation of a license awarded to “last mile” or access part of the network, and go straight Turkcell. The remaining 51% of Irancell is owned and to mobile broadband. Mobile phone use is already controlled by Iran Electronic Development Company spreading rapidly in developing countries, avoiding the (IEDC). (April 9, 2015) cellular-news.com need for old-style fixed infrastructure, and data services can use the same system. In China, three quarters of Internet users access it via mobile phones already, and Iraq in Ethiopia and Uganda, four out of five use the mobile CEO: Dr. Buhan Shawi internet. Thus rolling out mobile broadband seems a [Communication & Media Commission (CMC)] cost effective solution given its pervasiveness and recent technological advances in mobile networks. The study Zain Iraq has filed an application with the Iraqi Securities shows that increasing mobile broadband about three- Commission (ISC) to launch an initial public offering fold in developing regions – from 21% to 60% – will (IPO), Reuters writes, citing parent company Zain Group. have a significant cost (about $1.3tr). This is simply the In an emailed statement, a spokesperson from Zain told cost of the extra infrastructure needed to hook up about the news outlet that it had filed the first set of application three billion more connections to the Internet. However, documents for a listing on the Iraq Stock Exchange (ISX) it will also increase GDP growth. By 2020, the benefits and that its application was not subject to approval from would be almost half a trillion annually, and these the bourse and telecoms regulators. Under the terms of would increase further towards 2030. Over the coming their licenses, Iraq’s mobile providers were obliged to decades the total benefit would reach about $22tr. For list 25% of their shares on the ISX by August 2011. To every dollar spent on mobile broadband, the academics date, only Asiacell, a subsidiary of Qatar’s Ooredoo, has estimate a benefit of $17. Investing in mobile broadband fulfilled this obligation, having listed 25% of its shares for the developing world looks like a really smart move. on the ISX from February 2013. Commenting on Zain’s If the goal of 60% broadband by 2030 was achieved, it application, ISC chairman Abdul Razzaq Al-Saadi noted would make each person in the developing world who that: ‘They have preliminary approval. There are some was previously not connected almost $11,000 richer technicalities that need to be ironed out, such as the on average. Broadband is such an important enabling mechanism of listing and subsequent trading and some technology that it is difficult to estimate the complete further requirements from Zain that they have pledged impact on the economy, which will vary with local to sort out.’ (April 23, 2015) Reuters circumstances. What the study does show, though, is that rolling out Internet access is money very well spent. Jobs are created directly in the organization providing Jordan the network and indirectly in the supply chain. Chairman of the Board of Commissioners/ (April 8, 2015) dailynewsegypt.com CEO: Mr. Mohammad Al Taani [Telecommunication Regulatory Commission (TRC)] Iran The International Telecommunication Union recently Minister of Communication & Information organized its Arab Regional Development Forum in Technology: Mr. Mahmoud Vaezi Amman, Jordan which discussed the role of broadband [Communication regulatory Commission in spurring sustainable development. Organized by (CRC)] the ITU Arab Regional Office, the forum discussed the MTN Irancell, the Iranian mobile operator 49% owned five Arab Regional Initiatives approved by the World by MTN Group of South Africa, has reported that it now Telecommunication Development Conference held in has 21 million 2G, 3G and 4G mobile data users on its Dubai, UAE in April 2014. The five Initiatives focus on

page_33 REGULATORY & POLICY UPDATES

SAMENA TRENDS _ APRIL_2015 the areas of broadband, cyber security, ICTs (Information ministers even tried to block the implementation of and Communication Technologies) for the environment, Liban Telecom under the pretext that this firm would smart learning, and ICTs for persons with disabilities. reduce their powers. A senior official who took part in The high-level Forum provided participants – comprised the meeting told The Daily Star that the privatization of of ITU member states from the Arab region – with an telecommunications is the one of the primary goals of opportunity to exchange experiences and best practices Liban Telecom. “Of course the Cabinet needs to appoint in the implementation of these initiatives. It also the members of the boards as a first step. Let’s hope that discussed the activities of the ITU-D Study Groups and ministers will not quarrel over the names of candidates,” of the ITU Centers of Excellence. In his speech, Brahima the official said. He added that, contrary to the views of Sanou, Director, ITU Telecommunication Development some political quarters, the privatization of the cellular Bureau said: “The Dubai Action Plan sets out a road networks will revitalize this sector and create growth map for ITU-D’s work and a shared vision to make a in the economy. The state owns all cellular networks, tangible difference to people’s lives. Regional Initiatives operated by two private firms whose profits go to the guide BDT, Member States and Sector Members in Treasury. (April 8, 2015) zawya.com implementing specific projects that focus on the priority needs of each region. I call upon all our members and partners to join forces with BDT to implement the Morocco Regional Initiatives.” Dr Ibrahim Nasser Harb, Chairman Director General: M. Azdine El of Samena Council’s Regulatory Working Group and Mountassir Billah chief legal and regulatory officer at Orange Jordan, [Agence Nationale de Reglementation des said: “In providing an interactive framework for regional Telecommunications (ANRT)] stakeholders to outline a set of shared goals and work The three main mobile operators in Morocco have won collectively towards their achievement, the Arab Regional licenses enabling them to operate 4G services, opening Development Forum serves as a catalyst for not only the the door to critical new revenue streams for a sector that development of the Middle East’s telecommunications is nearing subscriber saturation. According to a statement sector but in bridging the digital divide existing in our from the National Agency for Telecommunications societies.” “Broadband communications have a key Regulation (ANRT) on March 18, , role to play in building a safer and more connected Méditel and Inwi were issued the radio spectrum world, and interactive forums such as these help set licenses after submitting tenders for the first 4G licenses forth credible implementation plans that can allow a week earlier. The auction raised Dh2bn (€187m), the countries in the Arab world to more fully realize the ANRT said in a statement. National authorities expect potential of ICT as an enabler of socio-economic growth operators’ turnover to climb quickly once 4G services are and stability,” he added. ITU’s Regional Development launched, although the 4G rollout will necessitate heavy Forums provide an opportunity for high-level dialogue capital spending on network upgrades by operators. between the Telecommunication Development Bureau The telecoms market has steadily increased subscriber (BDT) and decision-makers of ITU member states and numbers as well as usage in the last decade; however, sector members. They serve as a platform for assessing average revenue per minute (ARPM) has declined in strategic orientations that may have an impact on BDT’s recent years as the market nears saturation. The former regional work plan in between world telecommunication state-owned monopoly, Maroc Telecom, won the most development conferences. (April 20, 2015) tradearabia .com sought-after radio frequencies, paying Dh1bn (€93m) for the spectrum license. Méditel, the country’s second operator, and Inwi – the last operator to enter the sector Lebanon in 2010 − paid Dh500m (€46.6m) each, the regulator Chairman & CEO: Dr. Imad Hoballah said. The license tender has been pushed back several [Telecommunication Regulatory Authority times; the ANRT initially planned to award 4G licenses in (TRA)] early 2013, with a view to launching commercial services Telecommunications Minister Boutros Harb is seeking by the end of that year. After further delays, the new cut- to speed up the creation of Liban Telecom in a bid to off date for submissions of bids was set for March 12, liberalize the sector, insiders said Tuesday. Harb held 2015. The country’s three main operators were the only a meeting at the ministry Tuesday with advisers and applicants. The ANRT said it would evaluate the bids officials to review the best ways to create Liban Telecom on the basis of each operator’s expected investment and appoint the board of directors. Harb has called for in new infrastructure, coverage area, service quality, another meeting soon and said he would seek with competitiveness and the long-term business plan, professional consultants to upgrade the existing Law along with the accompanying financial offer. In its most 431. Law 431 calls for the establishment of a state-owned recent statement, the ANRT said that the operators operator, LibanTelecom, through the merger of the offered investment commitments to contribute to operations of Ogero (a government-owned contractor) the development of national telecommunications and two directorates of the Telecommunications infrastructure. (April 3, 2015) english.globalarabnetwork.com Ministry. According to the law, the new company would be an integrated telecom operator providing fixed and mobile telephone services, local and international Nepal Chairman: Mr. Digambar Jha communications, voice and data access, pay phones, [Nepal Telecommunication Authority (NTR)] emergency call services, dial-up and printed directory information services. Although Law 431 was passed by the Parliament in 2002, none of the telecoms ministers The Nepal Telecommunications Authority (NTA) is all set took a serious imitative to create Liban Telecom or to to manage the balance that remains unused in cell phone appoint the board members. Some past telecoms accounts. Whenever a customer leaves a SIM card idle,

page_34 REGULATORY & POLICY UPDATES

SAMENA TRENDS _ APRIL_2015 the telecom service provider scraps its registration after will issue one of the country’s telcos with an order to a certain length of time. Any unused balance in such provide such compensation. The official order from the expired SIM cards goes into the account of the telecom NTA is expected in the next few days, the report suggests. service provider. SIM cards having a balance are mostly The watchdog wants UTL to extend the validity of pre- left behind by tourists and workers who leave for foreign paid vouchers, while giving post-paid users a free month employment. The balance remaining in the SIM cards line rental. For its part, UTL has already said that it is of subscribers who keep their phones idle for a certain planning some form of compensation for its subscribers. period also goes into the account of telecom service Earlier this year UTL employees blamed management providers. Such balances which go into the account of for network outages which hit customers in eastern service providers increase their profits significantly. Since and western regions of the country. Workers accused the amount is already earned by the operator while management of ‘tampering’ with equipment on purpose selling recharge cards, the accumulation of such unused in an attempt to make employees look inefficient as they balances makes the profitability significantly high. seek push through job cuts which would slash up to 60% Issuing a directive to scrap the registration of SIM cards of UTL’s workforce. Meanwhile, management responded that have remained unused for more than six months, by claiming that disgruntled employees were refusing the NTA has also directed operators to manage such to repair the damaged infrastructure. UTL is 80%-owned funds. “We have asked the regulators either to give back by three Indian firms – Mahanagar Telephone Nigam the amount to the concerned users or keep it separately,” Limited (MTNL), Telecom Consultants India and Tata said NTA Chairman Digambar Jha. The regulatory body, Communications – with the remaining 20% held by however, is unsure about the amount companies have Nepal Ventures Ltd (NVL). (April 8, 2015) eKantipur accumulated in such a manner. The NTA is also unsure about how the money is being utilized by them. “When we asked an operator having limited customers about Oman the issue, it said that it had accumulated Rs800,000 in Executive President: Dr. Hamed Al-Rawahi unused balances,” an NTA source said. “This shows that [Telecommunication Regulatory Authority big operators have a huge amount of such money in (TRA)] their accounts.” According to the NTA, more than 25.2 To address competition issues and aid consumer welfare million SIM cards have been sold in the country. The over rates, the Telecom Regulatory Authority (TRA) plans data comprise GSM as well as CDMA SIM cards. GSM to introduce rigorous assessment and approval of all SIM cards are sold by Nepal Telecom and Ncell, the two tariffs. Under the proposed Retail Tariff Regulation, the big telecom service providers in the country. According authority will require all tariffs to be registered or filed to NTA data, Ncell has the largest customer base in the with it before they are marketed by telecom companies. GSM segment with 12.1 million users. Nepal Telecom has TRA feels that this is a way to address issues arising out 9.9 million GSM SIM card users. The prepaid recharge of market dominance. “This regulation is aimed to be cards of Nepal Telecom come with a specific validity a single reference for all matters relating to filing and period. If consumers fail to utilize the balance within approval of retail tariffs. It sets out in detail the processes the designated time, the amount becomes unusable for that the authority intends to adopt in future for the them. Ncell, however, does not have a validity period registration and filing of retail tariffs from dominant and and the balance remains usable for around one and a non-dominant licensees,” said the authority in its public half years. If the balance is unused for more than that consultation document on Retail Tariff Regulation. time, it goes to the operator’s account. “Most companies Comments to the consultation, which is open to all, have a validity period of one and a half years,” a source should be sent by May 7. The proposed regulation will at a private telecom service provider said. “After that, enable customers to understand prices in a better way the balance is shifted to a separate account.” Different that they will have to pay for services and any terms companies make use of such funds in different manners. and conditions which will apply to the application of “Once the SIM registration is scrapped, the customers tariffs, including discounts, which are available to them. do not ask for the balance back from the telecom It will also facilitate the comparison of tariffs and related operators,” the official said. Since there is no specific services and will also help customers to understand provision regarding the issue and the NTA too has not and reconcile billing for services with published tariffs. issued any directive, telecom service providers having The proposed regulation also intends to allow licensees making use of the money as per their convenience. sufficient flexibility to set tariffs that are effectively “We are not sure what has happened to such unclaimed competitive, and where services are not effectively amounts so far,” Jha said. “However, we have directed competitive, and where the authority has formally the operators either to return the amount or keep it determined that the nominated licensees are dominant separately.” The NTA board of directors has made such in those markets, to subject their proposed tariffs to adjustments by preparing a new policy. The NTA is yet a more rigorous assessment and approval process to make plans regarding the utilization of such funds, to determine, before acceptance and registration, though it has already directed the companies to keep whether any aspect of the tariffs might entail material them separately. “We will make a concrete decision risks for competition or consumer welfare. Provisions soon,” Jha said. (April 8, 2015) ekantipur.com associated with advertising of tariff and related services, promotional issues associated with prizes, competitions The Nepal Telecommunications Authority (NTA) is and quizzes will also be covered by the new regulation. to direct fixed-wireless and limited mobility service The other key policy setting that is expressed in the draft provider United Telecom Limited (UTL) to compensate Retail Tariff Regulation is on providing a procedure for its customers for a series of network outages which the filing of tariff from non-dominant licensees and to occurred during an industrial dispute in January-March add greater certainty to the processes for approval of this year. A report says this is the first time the regulator tariffs from dominant licensees. Under the new rule,

page_35 REGULATORY & POLICY UPDATES

SAMENA TRENDS _ APRIL_2015 all tariffs from whatever source should be submitted covered by the study across all usage baskets except for to the authority and registered or filed before being medium speed. implemented by the relevant licensee. In the case of • For mobile voice services: The pre-paid prices from tariffs from dominant licensees, the process involves an network operators in Oman are well above the GCC price application for an approval and subsequent registration average. For post-paid and business services the prices of the tariff if approval is granted. Unless an approval in Oman are at the higher end of the scale among the is given by the authority there will be no registration countries covered. and the proposed tariff will not proceed. In the case • Mobile Broadband: Prices for mobile broadband of tariffs from non-dominant licensees the process services in Oman are either below or comparable with involves a filing. After 15 working days from the filing, if other GCC countries for pre-paid services at low usage the licensee has not heard anything from the authority levels, but among the highest for post-paid and higher the licensee may assume no objection and proceed to usage levels. implement the proposed tariff according to its terms. • For International calls: Oman’s position is good in The process of examining applications for approval from comparison to other studied countries for international dominant licensees will be more resource-intensive than calls from fixed line as well as from mobile. International the processes associated with filings from non-dominant calls from fixed line are even cheaper than calling from a licensees. “Therefore applications for approval from mobile number to most of the countries. dominant licensees will require at least 30 working days before the proposed date of implementation, compared Due to their limited market share the Omani resellers to 15 working days for filings,” stated the telecom are excluded from the results shown here. However, authority. (April 27, 2015) muscatdaily.com the full report published on the TRA web site www.tra. gov.om shows the comparison with and without the The Telecommunications Regulatory Authority (TRA) mobile resellers. Despite the marginal decline in prices Oman carried out a Price Benchmarking study of of some telecommunications services, the study finds retail telecom services with the participation of the that Oman’s position compared to other countries did Sultan Qaboos University. Strategy Analytics Ltd, an not improve in 2014 as compared to the results of 2012 independent consulting firm in the study for most of the services. The TRA acknowledge provided the expert inputs to the study. The latest the contribution of Service Providers for providing data study compared the prices of telecom services in the for this study and the active role played by the Sultan Sultanate of Oman with those of GCC countries and Qaboos University. (April 20, 2015) tra.gov.om some selected countries comparable to Oman - Jordan, Tunisia, Malaysia and the UK. The study was designed to benchmark the prices of retail telecommunication Pakistan services for Fixed Voice, Fixed Broadband, Mobile Voice Chairman: Dr. Syed Ismail Shah and Data, Mobile Broadband and International calls with [Pakistan Telecommunication Authority (PTA)] the selected countries and compared the prices for all available offers showing the lowest end-user charges 3G subscriptions in Pakistan have shown a staggering for a basket of services. Prices are a function of many over 550 per cent growth during last nine months with variables including mainly competition level, population total count of mobile broadband (3G) subscribers crossing density, operational and capital expenditure, service the 11 million mark. In July 2014 the number of 3G/4G quality requirements, government taxes and fees etc. In subscribers was only 1.9 million and it jumped to 10.34 order to make the comparison logical, a standard usage million by February 15, 2015 with addition of an average profile was created with the help of actual data for each one million per month. A senior official of telecom sector of these services in Oman and prices of different services regulator shared the figures at a road show organized were collected on the same data from the selected here by Nokia Networks to demonstrate its 5G LTE and countries. The prices were then calculated for the same other network solutions. With regard to 4G Long Term usage profile in different countries based on purchasing Evolution (LTE) deployment and growth the official said power parity (PPP). With services converging, the service the number of LTE connections worldwide more than providers offer different service-packages and price- doubled between 2013 and 2014 from 200 million to plans to meet the diverse needs of different users. The around half a billion (490 million). The developing world study provides only an overall general assessment of makes up a quarter of global LTE connections by end of price level and while comparing the prices of selected 2014 and by 2016 the developing world is expected to retail services with those of benchmark countries, the overtake developed world in terms of LTE connections. report highlights Oman’s ranking as compared to the The official said the potential of data services for telecom selected countries. This study also examines the Oman operators has highlighted that data revenues are now position in comparison to a previous study carried out in 25 percent of total telecom revenues up from 16 % 2012. The Omani Service providers do not rank well in before the auction of 3G/4G spectrum in April last year. most of the services as compared to their peers in the Pakistani subscribers clear hunger for more data means selected other countries. immense potential for telecom operators and a way for them to reap better Return of Investments (ROIs) in a More specifically, for Oman, the main insights of the market which was previously perceived by investors as study are: saturated. With regard to broadband subscriptions in the • Fixed Voice: The prices for fixed voice services country the official said it has also reached a remarkable in Oman are comparable to the prices in other GCC point up from mere 3.8 million just an year ago. Head of countries, and also the other selected countries. Customer Marketing for Nokia Networks explained that • Fixed Broadband: The prices of fixed broadband LTE networks are considered to be as smooth as fixed services in Oman are among the highest in the countries

page_36 REGULATORY & POLICY UPDATES

SAMENA TRENDS _ APRIL_2015

(fiber) broadband even in the developed markets hinting Ministry has launched a series of roundtables, inviting that Pakistani market has tremendous potential for stakeholders in Qatar with relevant expertise and cellular operators who can tap 200 million population experience on the particular topic. The roundtables with wireless broadband solutions. (April 20, 2015) geo.tv serve not only to validate the findings from the Ministry’s ongoing research and engagements, but also to add Ministry of Information Technology and insights from other government agencies, private and Telecommunications (MoIT) has finalized draft of public organizations, and academia. The Ministry is now Telecommunications Policy-2015 and forwarded it to publishing a paper describing seven trends identified Economic Coordination Committee (ECC) of Cabinet for in the first roundtable session to have a significant approval. This comes on heels of series of initiatives and impact on the society of Qatar as a whole: 1) ICT for achievements in the sector over the course of previous Smart Cities; E-health; E-education; Social Media; Cloud year. Minister of State for IT, Anusha Rahman while Computing; Big Data; E-commerce; Digital Convergence announcing finalization of the draft at a dinner had and IPv6 transition. 2) The Ministry is taking action to commented that the integrated Telecommunications ensure the benefits of these emerging technologies are Policy will be a roadmap for sector development for years realized and maximized, including: to come with socio-economic development at its heart and professional belief that this will mark a graduating Initiating projects involving other ministries and step in vibrant telecom sector of the country. She said the government agencies; Forming cross sector work overall vision of new policy will be universally available, groups to ensure that policy actions and targets driving affordable and quality telecom services provided the rollout of high-speed broadband are implemented; through open, competitive and well managed markets Developing information and awareness initiatives to and ubiquitously adopted to benefit of economy and demonstrate to the public the opportunities emerging society. The telecom sector of Pakistan was deregulated technologies bring; Assisting all sectors to adopt and in 2003 and those policies were subject to review after benefit from these technologies; Addressing the privacy five years of issuance which unfortunately was not done and security concerns associated with the technologies; during the term of previous government. Therefore, the Developing a digital media strategy for Qatar and elected government of Pakistan Muslim League-N, after Capitalizing on these technologies will help Qatar taking office, took up review and integration of policies build the knowledge-based economy that will secure a on highest priority basis. Ministry of IT had during the prosperous future for Qatar and its people. last year engaged renowned international consultant firm with the help of World Bank for assistance in the Established by the Cabinet in September 2013, the Qatar task in addition to commitment of human resource from eGOV2020 Steering Committee developed the Qatar the ministry, Pakistan Telecommunication Authority e-Government 2020 Strategy in February 2014, which (PTA) and Frequency Allocation Board (FAB). Release of was officially released in later May 2014. draft of the policy for approval, mark the culmination (April 14, 2015) ictqatar.qa of rigorous exercise spanning over a year, she said. To ensure the element of inclusiveness, consultations with The Qatar eGovernment 2020 Steering Committee all relevant stakeholders were given foremost importance continues its evaluation and follow-up meetings with the in the process through meetings, questionnaires, ministers to review work progress on the implementation workshops etc, she added. She said the draft policy of the Qatar e-Government 2020 Strategy. Chaired treats all important areas of telecoms, infrastructure, by Minister of Information and Communications licensing, services and their ubiquitous adoption, adding Technology, the latest such meetings were held by the besides covering the issue arising out of previous Committee over the past two weeks with Ministers policy implementation, the manuscript includes various of Finance, Development Planning and Statistics and new and innovative elements like provisions for a Public Health. The ministers were briefed on work new competition framework satellite communication, progress on implementing the Qatar e-Government spectrum strategy, market based spectrum management, 2020 Strategy, the projects that have been done and Over the Top services, convergence, communication others underway. The meetings reviewed projects security etc., which were not present in earlier policies. status, recommendations for each ministry’s projects, Anusha said appropriate realignment in the mandates challenges confronted and ways to overcome them. and areas of focus of Universal Service Fund (USF) and It has been agreed to establish joint task workgroups, National ICT &D Fund have also been made to support under the Committee’s supervision, to step up the pace the “Accelerated Digitization Goal” of the government of projects implementation. The ministers hailed the for spurring socio-economic growth. progress made on Qatar eGOV2020 and efforts being (April 4, 2015) thenews.com.pk exerted by the Committee to take success to the next levels, and placed emphasis on meeting the projects timelines. Minister of Planning and Statistics stressed the Qatar importance of vital projects drawn in the Strategy and Executive Director: Graeme Gordon means to take advantage of the online data. [Communications Regulatory Authority (CRA)] (April 4, 2015) ictqatar.qa

In order to identify and understand the implications of emerging ICT trends, the Ministry of Information and Communications Technology has written this white paper that identify these ICT trends and build further awareness among policymakers and decision makers about the opportunities and challenges they offer. The

page_37 REGULATORY & POLICY UPDATES

SAMENA TRENDS _ APRIL_2015

South Sudan cent to $16.2 billion (€15 billion) in 2014. The drop Minister: Rebecca Joshua Okwachi was attributed to aggressive promotional activity and [Ministry of Telecommunication & Postal Mobily’s restatement of financial results: the country’s Services (MoTPS)] second-largest operator saw revenue decline by 20 per cent in 2014. Nonetheless, Pyramid Research said the South Sudan plans to lay a fiber-optic cable to bring Saudi Arabian telecoms market remained the largest broadband Internet to its citizens in the next two years, in terms of total service revenue in the MEA region its minister for telecommunications and postal services in 2014, followed by South Africa ($13.4 billion) and said. Africa’s newest nation, which gained independence Turkey ($13 billion). The research company also expects from Sudan in 2011 but was plunged into an internal to see further growth ahead: it forecasts that over the conflict in December 2013, has telecoms operators such next five years, annual growth of the Saudi telecoms as Vivacell but lacks the infrastructure to offer high speed market will average 3 per cent per year, reaching $18.7 Internet connections. Rebecca Joshua Okwaci said late on billion by 2019. “Operators have invested in upgrading Tuesday that the government will lay 1,600 kilometers of network infrastructure and systems to handle growing fibre across the country and link it with undersea cables data traffic volumes. The need in the short-term is for via Uganda and Tanzania, at a yet to be specified cost. “I swift deployment of fiber connectivity in high demand believe in a year and a half, going to two years, we can areas such as Riyadh, Jeddah, Mecca, Medina and Al- connect it,” Okwaci told Reuters on the sidelines of an Ahsa. This will improve the competitive landscape in the information communication technology meeting at the fixed broadband services segment, where historically the Kenyan coastal resort of Diani. The ministry said at the incumbent operator, STC, has led,” said Hussein Ahmed, start of 2013 that it planned to lay a fiber-optic cable that analyst at Pyramid Research. In the mobile market, the year, before war broke out. Okwaci said the conflict that arrival of mobile virtual network operators (MVNOs) started in 2013 would not deter the ministry from its aim such as Virgin Mobile and Lebara is also expected to of linking South Sudan to the information superhighway, add fresh impetus with new promotions for data and citing calm in places such as the capital. Thousands have voice services. “Towards 2019 we will see the potential been killed and more than a million people have fled for improvements in the competitive landscape, while their homes after the fighting that broke out following operators remain persistent in identifying new revenue a dispute between President Salva Kiir and his former streams,” Ahmed added. (April 13, 2015) fiercewireless.com deputy Riek Machar. South Sudan is part of a single area network that brings together telecom operators in Kenya, Uganda and Rwanda and has greatly reduced Tunisia President: Mr. Hassoumi Zitoune cross-border call charges. (April 15, 2015) af.reuters.com [National Telecommunication Commission (INTT)] Saudi Arabia Sector watchdog the National Telecommunications Acting Governor: Eng. Habeeb K. Alshankiti Commission (INT) has postponed the deadline for [Communication & Information Technology contributions on its public consultation regarding the Commission (CITC)] introduction of 4G in Tunisia from April 3 to April 15. The Research and Markets has announced regulator opened the consultation process on 18 March, the addition of the “Managed Services Market in Saudi inviting comments on a range of issues relating to the Arabia 2015-2019” report to their offering. The Saudi introduction of 4G, including the preferred frequency Arabia to grow at a CAGR of 22.60% over the period bands and how much spectrum would be required, as 2014-2019. This report covers the present scenario and well as the possibility of sharing network elements. The the growth prospects of the Managed Services market regulator has also raised the possibility of introducing in Saudi Arabia for the period 2015-2019. The market a fourth player into the market. INT highlighted is categorized into four main segments: Hardware seven potential frequency bands as usable for 4G, but and Software Support, Data Center Hosting, Disaster acknowledged that two of the best candidates, the Recovery Support, and Security Support. The growing 1800MHz and 800MHz ranges, are currently being role of cloud and virtualization solutions is one of the used for GSM and analogue TV services, respectively. major trends, which is expected to boost the growth 800MHz frequencies are expected to become available potential of the market. Private cloud solutions enable for refarming from June 30, 2015, however, when the better security and improve control of critical data country is due to complete the transition from analogue and business operations. According to the report, the to digital TV. The other spectrum bands identified by growing need for cyber-security is a major driver, which the watchdog as usable for 4G services were 450MHz, is expected to fuel the market growth during the forecast 1700MHz, 2100MHz, 2300MHz, 2500MHz and period. Newly adopted technologies warrant increased 3400MHz-3600MHz. (April 1, 2015) telegeography.com security measures to ensure the safety and privacy of company data. (April 21, 2015) prnewswire.com Turkey Saudi Arabia continues to boast the largest telecoms Chairman & CEO: Dr. Tayfun Acarer and enterprise IT market in the Middle East and Africa [Information & Communication Technologies region (MEA), although total mobile and fixed services Authority (BTK)] revenues declined in 2014 for the first time in a decade. According to a new report by Pyramid Research, total Türk Telekom offered on April 22 to buy the remaining mobile and fixed services revenues in the consumer $300 million stake it doesn’t already own in mobile and enterprise segment in Saudi Arabia fell by 1 per company Avea, a deal that would allow it to avoid having to float the struggling wireless firm. Saudi-

page_38 REGULATORY & POLICY UPDATES

SAMENA TRENDS _ APRIL_2015 owned Türk Telekom, which also reported a 93 percent ensuring that the principle of equality is applied, drop in quarterly earnings, owns 90 percent of Turkey’s making equal opportunities available between various third-largest mobile company, with the remainder held societal demographics and segments. Hence permitting by lender İş Bank and other investors. Under a 2006 the national talent to participate in the growth and shareholder agreement, IS Bank retains the right to development processes currently taking place in the demand an initial public offering this year, a floatation UAE. The instructions state the importance of the that would likely be hampered by Avea’s weak earnings, active role played by the telecommunications sector analysts said. “Even if Avea is advancing towards in the provision of these services, which contribute to profitability, right now it is still not profitable,” said the social integration of people with disabilities. As Toygun Onaran, an analyst at TEB Invest. “It is logical for such, empowering them to live independently as well İş Bank to want to offload the shares.” Türk Telekom did as creating conditions for them to work within the ICT not say how much it would pay for the Avea stake, which sector. “The direction taken for people with disabilities it said had a “nominal value” of 820 million lira ($300 is part of our social responsibility program in the million). That would value the company at $3 billion. country. By providing such services, we are prompting That’s a “very high” valuation, Onaran said, adding he these citizens to take advantage of the remarkable estimated Avea was worth around 40 percent of that. evolution and rapid growth of the UAE’s ICT sector. We Like many telephone companies, Türk Telekom faces urge licensees to diversify their methods of providing a gradual decline in demand for fixed-line services, smarter services, in order to provide accessibility meaning the performance of its mobile arm is critical. to all segments of our society, including those with But Avea is in a tough position as the third player in a disabilities,” said Hamad Obaid Al Mansouri, TRA market dominated by Turkcell and, to a lesser extent, Director General. “We aim to provide all the reasons Britain’s Vodafone. Türk Telekom’s majority shareholder, that allow us to successfully become leaders in the field Saudi Oger, faces a similar fight in South Africa, where of national services for people with disabilities we have it owns struggling mobile company Cell C, which is also a firm belief of taking advantage of all competencies third-ranked in a competitive market. The fixed-line and human resources we have in the UAE who can company reported a big fall in first- quarter net profit, partake in engaging in the industry’s comprehensive hit by higher capital spending and the sharp decline and integrated development process. Those with in the Turkish lira. It has overseas operations and most disabilities have been able to prove themselves in many of its currency exposure comes from financial liabilities fields by showing their capabilities to adapt to different and trade payables, it said. Türk Telekom said it was work conditions and expectations, positively reflecting “continuing to evaluate” participation in a tender for 4G on their productivity and distinctiveness,” H.E. added. frequencies, the bids for which are due on May 26. The The UAE TRA will ensure that no obstructions interfere future of that tender was thrown into doubt this week, with the provision of services for this group, and that when President Tayyip Erdoğan said Turkey should wait licensees provide services to ensure that all segments of and then jump straight to 5G. (April 23, 2015) Hurriyet Daily society are included fairly. The TRA will conduct surveys targeted specifically towards people with disabilities to Telecoms regulator the Bilgi Teknolojileri ve Iletisim determine the extent of their satisfaction and happiness Kurumu (BTK) has announced a date for the country’s with the services. They will also be given priority in the upcoming multi-band spectrum auction, confirming that completion of their transactions. All employees in the the process will take place on May 26, 2015. Meanwhile, sector will be trained on the various services, solutions the expiration date for the licenses has been set at April and products that are designed to understand the needs 30, 2029. The BTK has said that it expects commercial of people with disabilities. (April 15, 2015) samenatoday.com Long Term Evolution (LTE) services to be available from January 1, 2016, although previous claims from Turkcell, The initiative, dubbed ‘Secure Your Mobile’, is being Avea and Vodafone Turkey suggest that they will be in introduced in an effort to reduce the number of a position to roll out their respective 4G networks far missing or stolen phones in the country. The director sooner. 20 spectrum lots across the 800MHz, 900MHz, of technology development affairs at the TRA, Saif 1800MHz, 2100MHz and 2600MHz bands will be made bin Ghelaita, said: “With the UAE having the highest available, with a total bandwidth of 390.4MHz going number of consumers of smart devices, we understand under the hammer. Meanwhile, a block of 2600MHz how valuable the devices have become to people in spectrum will also be reserved for a new market entrant, the UAE who nowadays use them as a primary means although the newcomer will not be obliged to launch of computing. “Therefore, it is critical we help protect GSM services. The combined floor price for the licenses our residents by implementing systems with an easy on offer has been set at EUR2.298 billion (US$2.433 mechanism to enable users to block stolen or lost billion). (April 16, 2015) telegeography.com mobile devices immediately after reporting them.” None of the data will be accessible on the phone after it has been blocked and no calls or messages can be United Arab Emirates made either. The phone will be blocked free of charge, Director General: H.E. Hamad Obaid but users will have to pay a recovery charge to have Al Mansoori the device made operational again. The executive vice- [Telecommunication Regulatory Authority president of brand and communications at du, Hala (TRA)] Badri, said: “Protecting customers from electronic fraud The General Authority for Regulating the is gaining increased importance in today’s world that Telecommunications Sector (TRA) has instructed the highly relies on digital connectivity.” Fares Hamad Fares, nation’s licensees to allow people with disabilities easier vice-president of corporate communications at Etisalat, access to telecommunications services in order to added: “We are contributing to the protection of our completely benefit from them. This effort also includes users’ mobile devices and reducing the risk of theft of important personal data and misuse.” (April 1, 2015) zawya.com

page_39 REGULATORY & POLICY UPDATES

SAMENA TRENDS _ APRIL_2015

REGULATORY ACTIVITIES BEYOND THE SAMENA REGION

Albania deployed across four countries that are already using this band. This includes Albania’s telecoms Telstra and Optus in Australia who, having watchdog, the gained access to the 700 MHz band at the Electronic and Postal ‘digital dividend auction’ in 2013, have Communications Authority committed to rapid roll-out plans which (AKEP) has received bids for spectrum will see both cover 90 per cent or more in the 2500MHz-2690MHz band from of the population by mid this year. This Vodafone Albania and Albania Mobile year has also seen the number of APT 700 Communication (AMC) and is set to issue MHz capable devices increase from 55 Regulatory notices on the allocations. The tender, to 76 in a matter of months. In addition, launched by AKEP in February this year, it appears likely that Europe will at least Updates offered access to 14 blocks of 2×5MHz and partially harmonize with the APT 700 MHz ten unpaired blocks of 5MHz, with base plan, further increasing the benefits that prices set at EUR750,000 (US$793,523) come from international harmonization. per block of paired frequencies and ‘Meeting demand for spectrum for EUR60,000 per block of unpaired advanced mobile broadband is not simply spectrum. Vodafone has applied for four about quantity,’ said ACMA Chairman, blocks each of the paired and unpaired Chris Chapman. ‘The quality and spectrum, whilst AMC has submitted an attributes of any new band, as reflected in offer for four 2×5MHz blocks. Bids from the gathering level of adoption globally, both providers met the minimum price will be equally critical to the consumer requirements. (April 14, 2015) telegeography.com experience.’ There are many benefits to consumers when industry and regulators achieve substantial international spectrum Australia harmonization. Economies of scale Building on early support enabled by this spectrum harmonization from Australia, Asia and leads to materially cheaper Long Term Latin America, the push for Evolution (LTE) devices (including near universal adoption of smartphones and tablets). International the Asia Pacific Telecommunity ‘APT 700 roaming is also made easier. One particular MHz band’ is gaining momentum around attribute of the 700 MHz band is its high the globe. 42 countries are now allocating, utility: it is an excellent frequency for committed to or recommending the use of regional and rural areas where wide area the band for advanced wireless broadband coverage is required, while it is also useful services. Eight networks have now been for penetrating homes and buildings in metro areas. (April 14, 2015) cellular-news.com

page_40 REGULATORY & POLICY UPDATES

SAMENA TRENDS _ APRIL_2015

Bosnia and Herzegovina Telecoms regulator the Communications Brazil Regulatory Agency (CRA) has published A law dictating new standards on mobile its latest quarterly report on the country’s infrastructure deployment and sharing, telecoms statistics, revealing that at the the ‘Antenna Law’ (Law 13,116 / 2015), has end of 2014 mobile subscriptions were flat year-on-year. entered into force having been signed by As at December 31, 2014 there were a total of 3.491 Brazil’s President Dilma Rousseff and published in the million wireless subscribers in the country, up marginally federal Official Gazette on 22 April 2015. According to from 3.488 million a year earlier, the bulk of which – Brazil’s Minister of Communications Ricardo Berzoini, 90.87% – were pre-paid accesses. In terms of market quoted in the Presidential web portal blog, the aims of shares, BH Telecom remained on top, increasing its slice the new law include reducing the duplication of mobile of the pie from 44.36% at end-2013 to 46.95% a year later. network antennae in urban areas via a requirement By comparison, second-placed Telekom Srpske (m:tel) for cellular operators to share infrastructure, whilst saw its market share fall from 42.05% to 39.60% over the encouraging investment in expanding network service same period, while HT (HT Eronet) remained in footprints, thereby improving the availability and third place, accounting for 13.18% of the nation’s wireless quality of mobile voice and broadband services. In subscribers, down from 13.32%. Meanwhile, both of the addition to laying down guidelines on sharing newly nation’s mobile virtual network operators (MVNOs) – deployed infrastructure, the Antenna Law also makes IZI Mobile and BlicNet – remained minor players in the it compulsory to share the excess capacity on existing sector, with respective market shares of 0.23% and 0.05%. mobile network sections, while the measures are also Fixed line voice access continued to decline, falling 7.4% expected to achieve environmental benefits, the blog to 782,236 at end-2014, with BH Telecom responsible for added. The ambitions of the original Antenna bill were 44.61% of those (down from 47.47% a year earlier), while subsequently reined in by a total of six vetoes from Telekom Srpske and HT Mostar accounted for 34.83% various state departments. In one such veto, the Ministry (end-2013: 34.57%) and 12.83% (12.89%), respectively. of Finance argued that despite the worthy goals of some Alternative operators were responsible for the remaining of the more far-reaching proposals, it opposed certain 7.72% of fixed voice connections. In the fixed broadband proposed measures which it said would have ‘assigned arena the CRA reported a total of 542,405 connections to the government a significant part of the definition at the end of 2014, representing a 5.2% year-on-year of investment strategies of companies providing increase from 515,443. xDSL remained the most popular telecommunications services’, with the ministry access type, with some 297,245 such connections in the furthermore explaining that ‘[in proposing] a specific country at the end of last year, up from 294,505 twelve procedure for monitoring instead of setting quality months previously. Cable broadband, however, saw goals, provisions of the [vetoed] articles could hamper bigger gains, with the number of customers connected differentiation and technological innovation to improve via such means standing at 181,753 at end-2014, up the service by providers and thus restrict competition.’ from 153,544 a year earlier. Fiber-based connectivity has (April 24, 2015) Teletime yet to gain real traction, meanwhile, with the regulator reporting only 374 such broadband subscriptions at the A group of Brazilian mobile operators which secured end of the reporting period, up from 297 at end-2013. frequencies in last year’s 700MHz band spectrum auction (April 7, 2015) telegeography.com have paid the EAD – an entity created by the companies to support the transition of analogue channels to digital – BRL1.44 billion (US$46.94 million), or 40% of the Botswana money needed to support the switchover. The remaining Minister of Transport and funding is expected to be deposited in two installments Communications, Tshenolo Mabeo, has over the next two years. National license winners Claro, said the delays in the planned initial Vivo and TIM Brasil will each contribute BRL1.19 billion public offering (IPO) in national fixed line to the fund, with a minor contribution (BRL18 million) operator Botswana Telecommunications Corporation from regional player Algar Telecom, which won 700MHz Limited (BTCL) were due in part to problems with the frequencies in the states of Goias, Minas Gerais, Mato transfer of infrastructure from BTCL to national networks Grosso do Sul and Sao Paulo. Oi, Brazil’s fourth largest firm BoFiNet. Responding to questions in parliament, mobile operator did not participate in the auction. Mabeo said that the original ‘Possession and Use’ The auction of 700MHz Long Term Evolution (LTE)- agreement, which was due to be signed last November suitable spectrum in Brazil concluded in September ahead of the planned IPO the following month, was not 2014, generating a total of BRL5.85 billion – well below ‘fit for purpose’, according to a report from state news regulator Anatel’s BRL7.71 billion target. The use of agency BOPA. The BTCL transaction advisors, Collins the 700MHz spectrum band, currently in use by TV Newman and Deloitte Consortium, said that a new broadcasters, is expected to allow the operators to Possession and Use document should be drafted, and extend their LTE networks into rural areas; currently 4G this was eventually signed on March 4, transferring all in Brazil is provided using the 2500MHz band, which BTCL infrastructure to state-owned BoFiNet, which was was auctioned in June 2012. Although the government established in 2012 to take over the running of the originally hoped that the analogue switch-off would take country’s telecoms networks, with BTCL acting purely as place in 2016, there will now be a staggered transition a service retailer. Having initially been planned for 2011, between 2015 and 2018. (April 13, 2015) telegeography.com the sale first ran into problems in 2012, before an IPO was cancelled in August 2014. The offer was then rescheduled for November 7, but problems with the sale of shares Chile to employees caused yet another postponement to Chilean telecoms regulator SUBTEL has end-December. This date too was missed and the finally begun the long-delayed process government has yet to announce a new schedule for the of allocating frequencies in the 700MHz listing. 44% of BTC’s shares will be available for purchase band won by Entel, Claro and Movistar by individual investors and Batswana companies, while in February 2014. The process was delayed by legal 5% will be reserved for the telco’s employees through an challenges against the award process by several Employee Share Ownership Program (ESOP). operators, including mobile virtual network operators (April 9, 2015) telegeography.com page_41 REGULATORY & POLICY UPDATES

SAMENA TRENDS _ APRIL_2015

(MVNOs) Netline and Telstar, which claimed that certain The European Commission is due to issue its verdict by aspects of the tender prevented them from bidding. June 1 about whether to approve Orange’s acquisition Whilst the matter has cleared the legal deadlock, the of Spain’s Jazztel, after the French incumbent submitted allocation process may still take as much as six months further concessions to the competition watchdog. The to complete, a representative for SUBTEL explained. Last review process was put on hold almost two weeks ago month, another cellco, Nextel, is also looking to acquire and resumed again on Friday last week. Neither Orange 700MHz frequencies and has offered to barter some of its nor the Commission commented on the reason for existing AWS spectrum holdings (1700MHz/2100MHz) the suspension. However, it is understood that the EU for reserved airwaves in the lower band. had requested further documentation relating to the (April 21, 2015) Diario Financiero acquisition from Orange. The telco said at the time it remained confident that the Jazztel deal will be approved. Chilean cellco Nextel is forging ahead with plans Orange initially aimed to complete the acquisition in the to launch 4G services in the AWS spectrum band first half of the year. It has given no indication that this (1700MHz/2100MHz), but is willing to trade frequencies timeframe has changed. Orange made a €13-per-share in that block for 700MHz airwaves, which would improve offer for Jazztel in September, valuing the fixed-line the network’s performance, the new CEO of Nextel, Chris provider and MVNO at €3.4 billion. The combination Bannister – who was appointed following the company’s of Orange Spain and Jazztel will create Spain’s second- acquisition by UK-based investment fund Novator in largest integrated service provider. At the end of 2014, January 2015. The cellco is set to launch Long Term the companies together had 3.5 million fixed broadband Evolution (LTE) services this year, but is looking to gain and 14.5 million mobile customers. The prospect of access to other spectrum bands to augment its offering. this combined strength was enough to prompt the Mr. Bannister noted that although the highly sought-after European Commission to launch an in-depth probe into 700MHz frequencies were ‘awarded to Movistar, Entel the transaction due to concerns that the merger would and Claro in a public competition, to which only they hurt competition in the fixed broadband and triple-play were invited, there is a 20MHz lot that Subtel is allowed markets. (April 1, 2015) totaltele.com to use for an emergency network,’ adding that it is the spectrum in the reserved band that Nextel is currently lobbying for. The official went on: ‘The 700MHz helps France improve network performance and, like other carriers, which have two bands, we believe it would be beneficial The French parliament has approved an to the consumer for companies to compete on equal amendment to the telecoms component terms, without distortions generated by regulatory or of France’s economic reform law ‘Loi licensing issues.’ Showing its willingness to negotiate Macron’, under which telecoms operators on the matter, Nextel said it would be happy to return will be required to improve mobile coverage throughout some of its other spectrum holdings to be used for the the country. Under the new legislation, existing gaps in 2G network coverage in rural areas must be addressed emergency network. (April 14, 2015) Diario Financiero by 2016, while all unserved municipalities in these ‘white areas’ should be covered with 3G/4G networks by 2017. European Union The law will ensure that residents of an estimated 170 municipalities which currently have no access to mobile The European Commission will consider services will be covered by mobile networks. Further, the competitive threat posed to telcos Loi Macron entrusts telecoms regulator Autorite de by over-the-top (OTT) service providers Regulation des Communications Electroniques et des like Skype and WhatsApp when it adopts Postes (ARCEP) with powers to sanction mobile network new regulations for the sector next year. According to operators (MVNOs) who fail to comply with the imposed a draft document reported on by Reuters on Monday, obligations. (April 20, 2015) Les Echos Brussels has acknowledged that online players compete with network operators but are not subject to the same ARCEP published the results of its public consultation into regulatory regime. “It is necessary to design a fair and the forthcoming auction of 700 MHz spectrum in France, future-proof regulatory environment for all services,” and said it expects to get the ball rolling this summer. the document said. Should OTTs have to comply France’s mobile network operators were among the 46 with the same rules as telcos, then players like Skype respondents and, keen to protect their own interests, would be obliged to offer emergency calling services, they did not always agree on the best route forward. for instance. Europe’s big incumbents have for a long In one particular area, Iliad’s Free Mobile found itself at time called on Brussels to ease regulations on telcos in odds with its three main rivals: the need – or otherwise the face of sliding revenues and growing competition – for spectrum rebalancing via the auction. “[Some from OTT service providers. Telco revenues are “being respondents] consider that there is no need to rebalance cannibalized by OTTs that are asset light and offering frequencies between mobile operators through the a service that is zero-rated…Yet everyone around us is allocation of the 700 MHz band since the current holdings asking us to spend more on infrastructure,” said Tim result from previous allocations or rebalancing exercises Höttges, CEO of at Mobile World where competitive constraints have been taken into Congress in March. “We want a level playing field with account,” Arcep said in its results document. Specifically, Internet companies. We don’t want to push them into the mobile operators note that Free Mobile would be regulation, but if they’re out of regulation, we want to be the main beneficiary of such a move. They claimed that out of regulation,” he said. Höttges and his counterparts Free has already benefitted from rebalancing in the 900 will doubtless welcome Monday’s news. According to MHz and 1800 MHz bands, and subsequently had the Reuters, the Commission aims to update its telecoms same opportunity as they did to acquire new spectrum regulations in 2016. In addition, Andrus Ansip, vice in various bands including 800 MHz. In addition, they president for the digital single market, is expected insisted that Free Mobile has already overcome any in early May to add further detail to the digital single disadvantage in sub-1 GHz spectrum by being allowed market strategy he outlined in March. to roam on Numericable-SFR’s 800 MHz infrastructure. (April 20, 2015) totaltele.com Unsurprisingly, Free Mobile’s parent was the lone voice of dissent. “One operator (Iliad) believes it necessary

page_42 REGULATORY & POLICY UPDATES

SAMENA TRENDS _ APRIL_2015 that each of the four operators should have an equal the switch to DVB-T2 technology. The spectrum will be quantity of low band spectrum,” Arcep said. While some split into lots of 2x5 MHz. Minimum bids will be based operators support a cap on the amount of spectrum on fees set in 2013, namely EUR 75 million per lot. The any one player can purchase through the auction, 700 MHz licenses will include additional conditions Iliad called for a cap to be applied across all sub-1 such as nationwide (98%) coverage of at least 10 Mbps GHz bands, and not just the 700 MHz spectrum. The mobile broadband services with at least 95 percent of all document also covered the division of the available 700 states and 99 percent of all city states covered as well as MHz spectrum into blocks, mandated roaming, network 100 percent of the federal highways and ICE train tracks. sharing, spectrum refarming and various other topics. If these conditions are not reached within three years The regulator will use the information contained in the after the start of the license, a deployment obligation responses to help it formulate its plans for the spectrum will be enforced with a reasonable time-frame. The 900 auction. It is working on drafting a call for applications, MHz and 1,800 MHz spectrum are currently in use for with a view to issuing that call in July. (April 1, 2015) totaltele.com GSM services. To protect the current infrastructure, BNA has set a cap of 2x15 MHz per provider (3 blocks) with a minimum bid of EUR 75 million for the 900 MHz band. A Finland 1,800 MHz block will cost a minimum of EUR 37.5 million and a 1,500 MHz block is to cost at least EUR 18.75 An in-depth investigation over proposals million. The licenses will be technology-neutral and valid made by FICORA, the Finnish telecoms until December 31, 2031. This auction is the second regulator, for new rules on mobile multiband auction in five years, following the auction in termination rates (MTRs) has been 2010 that included 800 MHz spectrum and ended with a launched by the European Commission (EC). Confirming yield of EUR 4.385 billion. (April 22, 2015) telecompaper.com the development in a press release, the European body claimed: ‘If adopted, the new rates in Finland would not be based on costs as would be incurred by an India efficient operator as set out in the European Union (EU) The number of fixed and mobile recommended approach for the calculation of MTRs. subscribers in India is likely to reach the They would also be more than 25% higher than the EU 1 billion mark sometime this month, if average MTRs which follow the recommended approach.’ recent growth rates are maintained. The As such, the Commission has argued that the MTR country was home to 987.3 million telecoms subscribers proposals could harm both competition and consumers. at the end of February, having added just over 8 million According to the EC, FICORA’s proposal to allow Finnish during the course of that month and 16.3 million since mobile network operators to recover in the MTRs other the start of the year, according to new figures released costs than those strictly related to the incremental by the Telecom Regulatory Authority of India (TRAI). As costs of provision of the wholesale termination services such, India could well exceed 1 billion subscribers when would lead to significantly higher termination rates. the regulator releases its report for April. All the growth For its part, in a separate press release FICORA argued is coming from the mobile sector. India recorded 8.24 that its regulatory proposition promoted competition. million net mobile customer additions in February, giving Noting that the Information Society Code, which is it a total of 960.6 million mobile subs, while its fixed-line in force in Finland, did not enable the use of the cost base slipped by 150,000 to 26.72 million. Teledensity calculation model recommended by the EC, the Finnish stands at close to 79%, but is heavily skewed towards watchdog claimed to have proposed stricter regulation urban areas. In rural India teledensity is just 47.16%. and a ‘significant’ reduction in interconnection fees. As In the mobile space India’s top five operators – Bharti per the proposition, FICORA had suggested that MTRs Airtel, Vodafone, Idea Cellular, Reliance Communications should not exceed EUR0.0125 (US$0.0135) per minute, and Aircel – together added 9.75 million customers in effectively meaning a 33% reduction from the current February; Bharti alone added more than 3 million, level. Commenting on the plans, FICORA deputy director increasing its mobile market share to 23.2%.And Marja Lehtimaki was cited as saying: ‘We regard that Telenor’s Uninor recorded more than 665,000 net the cost calculation model we use is appropriate and additions, maintaining its market share at 4.7%.State- the price level achieved by means of it is reasonable.’ owned BSNL was the weak link. Its mobile customer base Nonetheless, the EC now has three months to discuss shrank by 2.55 million, while it also lost almost 163,000 the matter with FICORA, in cooperation with the body fixed line customers. The strongest performer on the of European regulators (BEREC), with a view to making fixed side was Bharti, which grew its customer base by the proposals compliant with EU law. During this period nearly 12,000. BSNL still controls 62.3% of India’s fixed FICORA is prohibited from adopting the proposed lines, with sister company MTNL coming in second with measures, while at the end of the investigation period 13.2%. Bharti is on MTNL’s heels though, increasing the EC may either lift its reservations or demand that its market share to 12.7%, up by one percentage point the withdrawal or amendment of the Finnish regulator’s over the past year. (April 13, 2015) totaltele.com proposed measure. (April 1, 2015) telegeography.com Indonesia Germany The Indonesian Telecommunications The German spectrum auction for in the Regulation Body (BRTI) has warned that as 700 MHz, 900 MHz, 1,500 MHz, and 1,800 many as 180 million mobile phone users MHz bands will start on May 27 with in the country will be affected by ‘network three participants: Telekom Deutschland, problems’ whilst using their phones between mid-April and Telefonica Deutschland, and December 31, 2015. According to the report, the according to the German network regulator BNA. BNA interruptions in service are the result of issues in the President Jochen Homann expects the auction should reallocation of 1800MHz frequencies by the big four result in a faster roll-out and more mobile broadband mobile operators – Telkomsel, XL Axiata, Indosat and coverage in Germany’s rural regions. The total spectrum Hutchison 3 Indonesia – which are affecting voice calls, up for sale in the auction amounts to 270 MHz. This SMS and data access services that use either GPRS or includes 2x30 MHz in the 700 MHz band freed up from EDGE technology on the cellcos’ systems. BRTI committee

page_43 REGULATORY & POLICY UPDATES

SAMENA TRENDS _ APRIL_2015 member Muhammad Ridwan is quoted as saying that been adequately addressed. We agreed on the new the communication and information minister Rudiantara penalty of 0.1% of the annual turnover to be paid by firms had ordered that the frequency allocation process start that will not meet the set QoS thresholds,’ Mr. Wangusi before April 14, 2015. The minister will soon issue a has warned. However, he added that licensees that miss decree to regulate it, and notes that operators should service quality targets will be given an opportunity advise customers about the possible drop in service to remedy the contravention; the penalty will then be quality during the roughly nine-month period. ‘So far, enforced if the company fails to resolve the issue. the 1800MHz spectrum with a bandwidth of 75MHz has been home to 180 million mobile phone users, for In the past, Kenyan operators have disputed the CA’s 2G access, who are served by Telkomsel (22.5MHz), XL assessment of QoS, prompting the regulator to agree to Axiata (22.5MHz), Indosat (20MHz), and Hutchison 3 hire an independent firm to conduct the service quality Indonesia (10MHz). The reallocation will eventually be tests. The CA says that 14 firms have expressed an used for 4G LTE which provides much higher speed for interest in participating in the tender, with the successful mobile devices,’ he said. (April 8, 2015) detik.com candidate expected to begin work in July. (April 21, 2015) Business Daily Kenya The Communications Authority (CA) of Macau Kenya has given mobile operators Airtel The result of the spectrum allocation and Telkom Kenya (Orange) approval to for Macau’s four mobile operators to start testing 4G technology using their provide fourth-generation wireless (4G) current spectrum allocations. , the country’s telecommunication services should be largest wireless operator by subscribers, is currently announced by the ‘second or third quarter’, the Bureau the only player to have launched a commercial LTE of Telecommunications Regulation’s (DSRT) Hoi Chi network, which was switched on in parts of Nairobi and Leong confirmed. The Bureau is currently studying the Mombasa in December. ‘So far all the NFP [Network applications for operators’ plans to provide 4G services Facility Provider] Tier 1 licensees have been authorized to the city later in the year, Mr. Hoi told us. The telecom to carry out tests [of 4G] on the spectrum they are regulator announced in early March that the four mobile already using,’ the regulator’s director-general Francis operators that have won the licenses to run the 4G Wangusi was quoted as saying, adding that mobile telecom services are Companhia de Telecomunicações operators were being encouraged to re-farm their de Macau SARL (CTM), China Telecom (Macau) Company existing frequencies and roll out national 4G networks Ltd., Hutchison Telephone (Macau) Company Ltd., and that would allow them to share the capacity with other SmarTone - Comunicações Móveis, S.A. As required players. However, Telkom Kenya CEO Vincent Lobry by the government, the license winners will have to said that the firm has not yet initiated trials of LTE on launch the 4G mobile broadband service coverage its network, as it is currently focusing on optimizing its of 50 per cent of the city by the end of this year, and 3G services, which are available in 41 areas across the 100 per cent by 2016. Speaking to Hong Kong media country. ‘Having the license is one thing, acquiring the following a shareholders’ meeting on Tuesday, executive bandwidth and capacity compatible with LTE is the other director and chief executive officer of CTM’s parent part of the equation. The industry regulator needs to company Citic Telecom International, Lin Zhen Hui, said provide the mechanism on how such frequencies will be the group hoped to see the spectrum allocation result allocated/ sold to all players in the sector… A commercial for 4G services by the first half of this year. Mobile rollout of 4G by Orange Telkom Kenya will be advised operators running 4G services in Macau did not get the by our Strategic Plan as we look forward to providing spectrum allocated through bidding but via government the ‘services of the future’ to our customers in the long allocation, Mr. Lin explained. Operators can apply to term,’ he revealed. (April 23, 2015) Business Daily increase the use of spectrum from the government if demand requires, the Citic Telecom’s boss said. Mr. Lin Oscar Leon Suarez, director of Colombia’s National added that the offering of 4G services will become a new Spectrum Agency (ANE) stated this week that the driver of the group’s business. The DSRT’s head talked 700MHz frequency band will be cleared for 4G cellular briefly to Business Daily after meeting local activist network usage by the end of August ahead of an group Association Choi In Tong Sam - a unit that is under auction of 90MHz in the band later in the year alongside the city’s traditionalist Federation of Trade Unions labor additional frequencies in the 900MHz, 1900MHz and group. The Association, led by Mr. Lam U Tou, requested 2600MHz ranges. The auction plan had been delayed the government to help provide telecom users’ real-time from an earlier mooted H1 2015 timetable. As reported information of data usage, which is currently absent from by Signals Telecom, there are six remaining television the telecom operators’ services. Mr. Lam’s association broadcast channels (out of an original 16) which must also demanded a compulsory arbitration mechanism for complete the process of migrating to other spectrum disputes related to telecom services, as such disputes bands in the coming months. Other details of the have topped the Consumer Council’s complaint cases auction are yet to be decided, such as the minimum bid received in recent years. (April 23, 2015) macaubusinessdaily.com price for licenses. Colombian cellcos currently operate 4G LTE services using the 1700MHz/2100MHz (AWS) and 2600MHz bands. (April 24, 2015) telegeography.com Mali Mali is said to be examining the possibility The Communications Authority of Kenya (CA) has revised of launching a tender for a fourth mobile the penalties that telecoms operators will have to pay if concession later this year. At present they fail to meet quality of service (QoS) standards. From there is a moratorium on offering another the beginning of July, telecoms companies will be fined mobile license, with the state having agreed this as part 0.1% of their annual revenue for missing service quality of the concession handed to Alpha Telecom back in targets, instead of the current flat rate of KES500,000 2012. However, with this block on licensing due to be (US$5,250). ‘The issue of poor quality of services by lifted later this year, and with Alpha still yet to launch telecommunication operators to subscribers has not a commercial service, it has been claimed that the government may look to offer another concession to a

page_44 REGULATORY & POLICY UPDATES

SAMENA TRENDS _ APRIL_2015 company. While January 2014 saw Alpha Telecom begin the deployment of its infrastructure, legal and technical Romania issues have continued to dog it. Indeed, amid claims that Telecoms regulator ANCOM announced the company continued to struggle with the realities of that a new competitive selection rolling out its network, in November 2014 it was revealed procedure will be held this year for that a prosecutor for the Ministre de l’Economie et des wireless frequency licenses in the 3.4GHz- Finances had begun a preliminary investigation into the 3.8GHz band. Current license holders in the band are: award of the license, following criticism of the process Orange, Vodafone, UPC, SNR and 2K Telecom. Rights to by the country’s Office of the Auditor General at the start use the radio spectrum will come into force on January of the year, the ongoing delays in the introduction of a 1, 2016 for a period of ten years. Winners will be able to commercial service, and litigation linked to the payment provide nationwide data and internet access via wireless of the fees for the concession. Last month, however, a broadband networks. (April 17, 2015) telegeography.com meeting between Alpha Telecom and its partners saw the would-be operator make positive noises regarding a launch, with almost all of the company’s mobile towers Singapore said to have been deployed, while highlighting the fact Singapore based transport group, SMRT that it had made full payment for its concession to the Corp has confirmed that it is in exclusive state. As such, the company, which is expected to offer its talks to partner with OMGTEL in a bid services under the Atel-SA banner, said it was optimistic for the country’s fourth mobile operator it would begin offering access to customers in the near license. OMG is a company set up by in-building mobile future. (April 7, 2015) Agence Ecofin networks specialist Consistel. In a statement, SMRT said that the potential collaboration agreement will be for the provision of such services and/or goods as may be Peru agreed between the parties and will seek to leverage Ministry of Transport and on synergies that can be derived from the Company’s Communications (MTC) has published extensive media presence and commuter reach. The new legislation governing the installation company is also being offered an opportunity to invest of telecoms infrastructure aimed at up to S$34.5 million via an option to subscribe for shares speeding up and streamlining the process. The new in OMG. (April 22, 2015) cellular-news.com Law for the Strengthening of Telecommunications Infrastructure Expansion sets out a standardized process and requirements for automatic approval to install Slovenia mobile towers. Among the highlights of the legislation Agency for Communications Networks are a simplified procedure for environmental certification & Services (AKOS) has opened a public and methods of camouflaging infrastructure, the MTC consultation into the award of wireless noted, saying that antennas that are ‘in harmony’ with broadband spectrum in the 700MHz band their surroundings will have less of a visual impact and alongside frequencies at 1400MHz, 2300MHz, 3500MHz be ‘more friendly to the urban landscape’. Regarding and 3700MHz. The multi-band auction is likely to be concerns on the potential health implications of mobile held next year, the regulator said. A conference is being towers, the MTC stressed that the regulations meet held on 26 May to give the country’s operators the guidelines set by the World Health Organization (WHO) opportunity to discuss the proposals. adding that the MTC checks radio frequency emissions, (April 23, 2015) telegeography.com whilst a department of the ministry includes checks on emissions as part of the certification of equipment used in Peru. Also included in the legislation are sanctions for South Africa operators that infringe the rules and state officials that The Independent Communications issue permissions outside of the boundaries of the new Authority of South Africa (ICASA) has rules. Deputy communications minister Javier Coronado defended its decision to reduce the level commented on the regulations: ‘The deployment of of asymmetry for smaller operators in telecommunications infrastructure is essential for the country’s mobile termination rates (MTRs) for the the economic and social development of a nation… period October 1, 2014 to February 28, 2018, saying [The MTC] is seeking [to ensure] greater integration that it ‘disagrees with the Cell C view that the asymmetry amongst Peruvians, that everyone has access to good levels are inadequate and will perpetuate market coverage and a better quality [of service]. Thus, the failure’. Cell C expressed its disappointment with the Peruvian experience with communications will be more regulator’s proposed termination rates shortly after their productive and efficient.’ (April 24, 2015) telegeography.com publication and accused ICASA of making ‘a dramatic U-turn’ by stating that ‘the massive proposed reduction in asymmetry completely eliminates any pro-competitive Portugal remedy.’ In January 2015 Cell C lodged an application in Portuguese telecoms regulator ANACOM the High Court in Johannesburg requesting a review of issued a decision on April 23, 2015 ICASA’s wholesale MTR regulations and seeking to obtain to launch a public consultation on the access to the information that led to the regulator’s availability of spectrum in the 3.4GHz- decision to further reduce the MTR tariffs. For its part, 3.8GHz wireless broadband frequency range. According the regulator claims that ‘international best practice is to the watchdog’s announcement on its website, the to provide asymmetry to new entrants for a very limited consultation is based on the principle of effective and period only. The rationale for this is to achieve a balance efficient assignment and usage of the frequencies in between recognizing cost differences and perpetuating question. ANACOM intends to gather the opinion of cost inefficiencies among later entrants.’ Further, ICASA many market participants (manufacturers, operators, argues that its decision to determine the rates based on private and public authorities, users and others) on the the operators’ long-run incremental costs (LRIC), rather use of spectrum available in the 3.4GHz-3.8GHz band. than at some rate above LRIC as was the case in the Interested parties must submit comments by May 25, past, ‘removes the market failure associated with above- 2015. (April 27, 2015) telegeography.com cost pricing and itself provides considerable market

page_45 REGULATORY & POLICY UPDATES

SAMENA TRENDS _ APRIL_2015

assistance to the smaller operators’. (April 8, 2015) TechCentral latter to offer 4G services over Yoigo’s in-deployment LTE network. In return for granting Movistar access to The Independent Communications Authority of South its infrastructure, it was confirmed that Yoigo would Africa (ICASA) has published its final Radio Frequency meanwhile be allowed to market a converging product Spectrum Regulations, following a public consultation comprising its mobile services and Movistar’s fixed launched in December 2014. The new legislation voice and broadband services. Reaction to the tie-up amends the Radio Frequency Spectrum Regulations from the country’s other cellcos was less than favorable, of 2011 in order to align it with changes introduced with both Orange Espana and Vodafone Spain calling on to the 2005 Electronic Communications Act (ECA) by the regulator to suspend the agreement. Now, with the the Electronic Communications Amendment Act 1 of CNMC having been scheduled to discuss the matter at 2014. ICASA new provisions include: setting out a clear a meeting yesterday (23 April), it is understood that the renewal process for spectrum licenses; outlining the regulator is minded to levy the fine on the basis that consequence for failure to renew a Radio Frequency the deal hindered competition. Specifically, one element Spectrum License; safeguarding the rights of end- of the agreement has reportedly caused concern for users prior to a licensee ceasing to provide services the CNMC, that being a clause which requires Yoigo to that require usage of spectrum; providing penalties for seek permission from Movistar to allow mobile virtual the contravention of section 31(1) of the ECA. Further, network operators (MVNOs) to offer 4G services over the authority has revealed its final Radio Frequency the Yoigo network. (April 24, 2015) telegeography.com Spectrum Assignment Plan (RFSAP) for International Mobile Telecommunications (IMT), which outlines the Movistar has agreed to sell a quarter of its spectrum regulatory and the technical conditions on the use of holding in the AWS (1700MHz/2100MHz) frequency frequency bands in the country, including technical band to rival wireless provider Claro, but has been characteristics of radio systems, frequency channeling, prevented from completing the transaction by the coordination and details on required migration of nation’s regulatory authorities. Movistar was awarded existing users of the bands and the expected method of the right to use 2×20MHz of 4G spectrum at 1710MHz- assignment of spectrum. (April 1, 2015) telegeography.com 1730MHz/2110MHz-2130MHz in July 2013, but has agreed to offload 10MHz of its spectrum holding to Claro, which failed to secure any 4G spectrum at the auction, South Korea having lost out to a bid from Chilean-owned cellco Entel. South Korean authorities are facing According to Claro’s legal director, Juan Rivadeneira, the criticism for recent changes to the country’s Ministry of Transport and Communications (MTC) has legislation which governs subsidies and had more than seven months to address the issue but discounts on mobile charges. Earlier this has yet to authorize the handover. The official added week the Korea Communications Commission (KCC) that it had also approached Entel and Vietnamese- raised the maximum subsidy that customers can receive backed Bitel regarding a spectrum purchase, but had when buying a new handset to KRW330,000 (US$302), been rejected. (April 15, 2015) El Comercio while that same day the Ministry of Science, ICT and Future Planning (MSIP) also increased the mobile charge discount rate that customers can opt for instead Sweden of a handset subsidy from 12% to 20%. Such action In support of the Swedish government’s has, however, prompted disapproval from KCC board decision to open the 694MHz-790MHz member Kim Jae-hong, who argued the revisions were (700MHz or ‘second digital dividend’) excessive and unnecessary, saying: ‘The move led by the band for mobile network usage from April ministry and supported by the commission is a misuse of 1, 2017, the country’s telecoms regulator PTS has opened financial resources and political measures of the future up a study to examine proposed mobile development in in advance by forcibly introducing short-term stimulus the band while also considering the need for measures plans, passing the burden to the national economy to protect terrestrial TV from interference. The PTS three to four years later.’ Specifically, Kim argued that notes that in addition to expanding the geographical the increase in the mobile charge discount rate would coverage of mobile services, the introduction of 700MHz eventually discriminate against existing subscribers, services should result in closing local ‘white spots’ in noting: ‘A recent statistic shows that only 1.7% chose the coverage, whilst also providing greater capacity for charge discount instead of subsidy … The rate hike will mobile broadband networks. It asserts that the mobile cause discrimination against the majority in exchange infrastructure to be established under 700MHz license for the benefit for the small minority. An increase to requirements may be open to access by multiple 16% from 12% is enough. In this way, the subsidy cap operators. The PTS adds that previous reports suggested increase is not needed and the discrimination against public funds will be available for 700MHz rollouts as a the absolute majority will not happen.’ South Korea’s tool to improve coverage in areas where commercial Mobile Device Distribution Improvement Act came in interest is lacking. PTS supports this proposal and agrees to force on 1 October 2014, setting a subsidy ceiling of with findings that publicly-funded rollout contracts are KRW300,000 with a view to normalizing handset prices ‘in many ways’ a more efficient and precise instrument and cutting monthly fees. (April 9, 2015) the Korea Times for improving coverage than the requirements stipulated under mobile spectrum licenses. At present, however, licensing coverage requirements are the main tool Spain available to the PTS in this regard. To date, coverage Mobile network operators Movistar and requirements under licensing have been stipulated Yoigo are reportedly facing a fine from by the PTS based on: percentage of geographic area sector regulator the Comision Nacional (450MHz and 900MHz bands), population coverage de los Mercados y la Competencia (2100MHz band) and, in the 800MHz band, a specific (CNMC), according to Expansion over a network list of individual addresses lacking broadband coverage. sharing deal dating back to mid-2013. A high profile As it stands, the PTS sees that it is justified to attach deal between Yoigo and Movistar was announced in coverage requirements to 700MHz licenses; the coverage August 2013, which the pair confirmed would allow the should enable voice and data services ‘up to around

page_46 REGULATORY & POLICY UPDATES

SAMENA TRENDS _ APRIL_2015

10Mbps’. The authority added: ‘A similar approach as for service providers who responded to the TATT’s recent the 800MHz allocation is then a possibility, i.e. a form Request For Proposal (RFP), and stated his confidence of allocation where there is a bid in cash and where the that the market would see a competitor to incumbents licensee shall develop, at a cost equal to the bid amount. and Telecommunication Services of Trinidad & The expansion would, however, in this case primarily Tobago (TSTT) ‘very soon’. In August 2014 TATT was focus on geographic areas with poor mobile coverage, reviewing four applications received in its RFP tender unlike the coverage requirement in the 800MHz for a third mobile operator, namely: Cable & Wireless band that focuses on broadband of at least 1Mbps to Communications (CWC, the 49% shareholder of mobile/ households and workstations.’ (April 20, 2015) telegeography.com fixed operator TSTT, which is 51% state-owned), cableco Columbus (Flow Trinidad & Tobago, which was acquired by CWC in a deal completed at the end of March 2015), Star Mobile Caribbean (a Trinidad-registered company) The telecoms regulator the NBTC and Telesur (a full-service telco in Suriname). Any choice has stated that the individual mobile of new mobile licensee other than UK-backed CWC or frequency spectrum cap to be applied to its new asset Flow would mean a major upheaval in the the country’s cellcos will be set at 45MHz local market as the British group would lack a cellular ahead of the 4Q15 1800MHz and 900MHz license presence. Last month the TATT gave its approval to the auctions, lower than the previously mooted 50MHz limit, acquisition of Columbus Communications (Flow) by while NBTC secretary-general Takorn Tantasit noted that CWC on condition that the latter offloads its 49% stake the spectrum cap applies only to bandwidth which is in TSTT. (April 16, 2015) Daily Newsday in use and ‘not expiring within the next five years’. Five companies have so far lined themselves up to compete for four licensed blocks – two blocks of 12.5MHz in Ukraine the 1800MHz band and two of 10MHz in the 900MHz The National Commission for the range – namely existing private sector cellcos AIS, DTAC State Regulation of Communications and True plus state-owned CAT Telecom and another & Informatization (NCCIR) adopted a Thai group, Jasmine International, parent of fixed decision at its meeting of April 22, 2015 network operator Triple T Broadband (3BB). Meanwhile, on the harmonization of technical specifications for the another possibility of a further postponement to the conversion of 2100MHz radio frequencies from military already-delayed technology-neutral spectrum auction is use to commercial mobile operators under the recently possible, Telecom Asia adds. A ‘three month’ delay could awarded 3G UMTS licenses. The decision was based on be on the cards in order to accommodate DTAC’s offer a review of the technical specifications submitted by of early return of an additional 1800MHz GSM block Kyivstar, MTS Ukraine and Astelit, who were announced for re-auction as 4G spectrum, while the extra period as the winners of three 2×15MHz licenses on February could also be used to refarm spectrum so that standard 23, 2015, subsequently paying a total of UAH8.770 10MHz blocks in the 1800MHz range can be auctioned billion (US$311 million) in one-off fees for their 15-year instead of the proposed 12.5MHz blocks, according to concessions. The total cost of the conversion of UMTS Boonyavat Kruahongs, chairman of the inspection and frequencies from military use – roughly UAH1.6 billion – evaluation committee – a.k.a. the NBTC ‘superboard’. is to be divided equally among the winners and added (April 9, 2015) Telecom Asia to the basic license acquisition fee, and at the meeting the NCCIR noted that the three operators were required The telecoms regulator NBTC has once more enlisted the to inform it of ‘contracting’ the conversion within two help of the International Telecommunication Union (ITU) months of the announcement of the license auction to re-evaluate the starting bid prices for the 1800MHz results. (April 24, 2015) telegeography.com and 900MHz spectrum on offer in the newly rescheduled November/December 2015 technology-neutral license auctions. The original minimum bids for the delayed United Kingdom auctions were set at 70% of full spectrum value by the U.K. regulator suggests four bands in the ITU last year, with bids for a 12.5MHz block of 1800MHz 6 GHz-100 GHz range are suitable for bandwidth beginning at THB11.6 billion (USD356 next-generation mobile services. OFCOM million), with a THB11.26 billion floor price attached to identified four frequency bands in the 10MHz of 900MHz spectrum. (April 2, 2015) telegeography.com 6 GHz-100 GHz range that it believes offer the best potential for use as 5G spectrum. The U.K. regulator has suggested that the 10 GHz, 32 GHz, 40 GHz, and 66 GHz Trinidad and Tobago bands would be appropriate for use for next-generation The Telecommunications Authority mobile services (see table). The proposal is based on a of Trinidad & Tobago (TATT) has combination of in-house analysis, a report by consultancy recommended to Cabinet the company Quotient Associates, and responses to a consultation it has chosen to be the country’s third that OFCOM launched in January. “We believe it is mobile network operator, Science and Technology desirable to identify specific potential bands above 6 Minister Rupert Griffith confirmed. Although the GHz to help focus an agenda item for the World Radio company is yet to be publicly identified, Griffith said: ‘This Communication Conference in 2019 (WRC-19) and to third mobile service provider will boost competition and maximize the potential for international harmonization yield to the consumer greater affordability, wider choice of 5G spectrum,” said OFCOM. “We have therefore and faster speeds among other benefits.’ The minister identified a preliminary set of bands in different parts of made the disclosure during an address at Arthur Lok the 6 GHz-100 GHz range that we currently believe offer Jack Graduate School of Business in Mount Hope, in the best potential for use in the U.K. and harmonization which he also highlighted results of the WEF Global of 5G mobile services globally. “This does not guarantee Information Technology Report 2015 which ranked that these bands will be adopted in the future and we Trinidad & Tobago at the top of the world rankings for do not rule out consideration of other options” ahead mobile penetration. He confirmed the proposed third of November’s WRC-15 in Geneva, the watchdog said. cellco was recommended based on an evaluation of (April 24, 2015) totaltele.com

page_47 REGULATORY & POLICY UPDATES

SAMENA TRENDS _ APRIL_2015

United States The Federal Communications Commission’s (FCC’s) The Federal Communications Commission net neutrality rules are due to come into force on (FCC) on Friday voted to proceed with 12 June after appearing on the Federal Register on offering commercial telecoms operators Monday, prompting telco lobby group USTelecom free access to additional wireless to refile a lawsuit challenging the regulations. New frequencies in the 3.5GHz-3.7GHz band by adopting net neutrality rules were adopted by the FCC in late rules for the ‘Citizens Broadband Radio Service’ enabling February and formally issued on 12 March. As per U.S. sharing spectrum currently used by military radars government procedure, they take effect 60 days after and other government organizations. Specifically, the publication on the Federal Register, during which time decision adds another 100MHz of spectrum in the groups that oppose them can file a legal challenge. 3550MHz-3700MHz band to the 50MHz in that range USTelecom, which counts major telcos and ISPs among already available for commercial use. Reuters reports that its membership, is one such group. While it supports the spectrum is suitable for high data throughput over the aims of the net neutrality rules – which prevent fixed relatively short distances and may be used to boost the and mobile broadband providers from blocking access capacity of existing cellular networks, especially in densely to legal content, applications and services – it disputes populated locations or indoors, while the frequencies the method, namely Title II of the Communications Act, could also be utilized for machine-to-machine (M2M) which reclassifies broadband as a utility service rather wireless device connectivity. Following the decision, the than an information service. This subjects operators to Citizens Broadband Radio Service system will now be set stricter rules controlling how they treat traffic on their up to allow commercial operators to access additional networks, and blocks them from striking commercial frequencies without interfering with incumbent users. agreements with online players to prioritize their The plan, in development since 2012, envisages wireless services. USTelecom actually filed its lawsuit with the providers and others using the new 3.5GHz frequencies U.S. Court of Appeals for the District of Columbia on without charge (‘the General Authorized Access tier’), 23 March, inadvertently jumping the gun in a bid to similarly to Wi-Fi or other unlicensed frequency usage, avoid missing a potential deadline for filing for review. or by buying short-term exclusive licenses in certain Monday’s filing supplements the initial filing. It calls for geographical high-demand areas (‘the Priority Access the court to scrap the net neutrality rules on the grounds tier’). Interest in the scheme has come from various that they are “arbitrary, capricious, and an abuse of wireless network operators, vendors, internet players discretion.” (April 13, 2015) totaltele.com and device companies, including Verizon, Google, Qualcomm and Ericsson. Scott Belcher, chief executive of the Telecommunications Industry Association, said in a Zimbabwe statement reacting to the latest decision: ‘The spectrum The Posts and Telecommunications crunch remains very real and the FCC’s action represents Regulatory Authority of Zimbabwe significant progress towards opening more spectrum for (POTRAZ) says the country was home to 5.3 million users of mobile money services broadband.’ (April 20, 2015) telegeography.com at the end of 2014. The total value of transactions U.S. regulators voted to open a swath of government- carried out during the year reached US$1.4 billion, up controlled airwaves for commercial use by tech and 81% on the 2013 figure, with US$445.7 million worth telecom companies such as Verizon Communications of transactions conducted in the final three months Inc and Google Inc as they seek to meet growing of the year. All three cellular operators in Zimbabwe – data demands from new wireless devices. The Federal Econet Wireless, NetOne and Telecel – provide mobile Communications Commission voted unanimously to money services. The country was home to around 14.2 chalk out a process to allow companies free access to the million mobile subscribers at the end of 2014. (April 16, 2015) frequencies in the 3.5 gigahertz band. Those airwaves’ telegeography.com ability to carry heavy data across short distances makes them particularly attractive to companies. The plan to Telecel Zimbabwe Ltd., a unit of wireless provider open up the frequencies can, for instance, help boost VimpelCom Ltd., responded to the country’s regulator the capacity of companies’ existing wireless networks, after the government warned it may close its operations, especially in densely populated locations or indoors. according to the telecommunications regulator. Telecel It could even help wirelessly connect specific devices wrote to the Postal and Telecommunications Regulatory like thermostats or washing machines to facilitate the Authority of Zimbabwe about its failure to pay a license “Internet of things.” Friday’s vote will kick-start the process fee, as well as compliance with black empowerment laws, of setting up a system for companies to begin using Baxton Sirewu, the regulator’s acting director-general, frequencies now dedicated to military radars and other told reporters on Tuesday. “We’ve been engaging quite government operations, by sharing them in places where closely with Telecel Ltd. and exchanging information,” he commercial users would not interfere with incumbent said at the Innovation Africa Digital Summit in Victoria users. The opening up of 3.5 GHz airwaves “is setting a Falls, Zimbabwe. Telecel, which competes with Econet new paradigm for how spectrum sharing should work,” Wireless Zimbabwe Ltd. and state-owned NetOne in Chairman Tom Wheeler said in remarks in Washington. Zimbabwe, brought in executives from other countries “The spectrum crunch remains very real and the FCC’s after the government warned that it would be shut down action represents significant progress toward opening if it didn’t address license breaches, Zimbabwe’s Daily more spectrum for broadband,” the TIA’s chief executive News reported last month. The company has more than Scott Belcher said in a statement. On Friday, the FCC 2 million customers and is operated by Global Telecom, also said it had voted to propose a notice seeking public a Cairo-based unit of VimpelCom Ltd. comment on competitive bidding practices and rules in (April 15, 2015) bloomberg.com auctions of airwaves. U.S. regulators have been working Javaid Akhtar Malik on plans to reform government airwaves auction rules to Regulatory Affairs prevent big companies from tapping a discount program intended for small businesses. The FCC is gearing up to SAMENA Telecommunications Council hold an auction early next year of another set of airwaves belonging to broadcasters and repackaging them to sell “Information contained herein has been obtained from sources, which we deem reliable. SAMENA them to the wireless industry. (April 17, 2015) reuters.com Telecommunications Council is not liable for any misinformed decisions that the reader may reach by being solely reliant on information contained herein. Expert advice should be sought.”

page_48 wholesale updates

SAMENA TRENDS _ APRIL_2015

wholesale NEWS

Bahrain’s TRA probes do not receive the adequate level of transparency regarding the cost and complaints over $79k volume of their usage of mobile roaming roaming bills services,” Director said. “We are putting Bahrain’s telecoms regulator has said all of our efforts to resolve those cases in it is investigating complaints regarding hand and studying the implementation of international mobile roaming bills additional regulatory measures to ensure which have left consumers with bills that consumers are notified when they’re totally around BD30,000 ($79,000). about to reach their limits to prevent The Telecommunications Regulatory them from incurring additional charges.” Authority (TRA) said it was investigating The TRA also warned customers that a total of 12 complaints, one of which data roaming charges are very expensive, has a value of BD12,800. The TRA and they should make sure that the data WHOLESALE said it is now considering additional roaming function is switched off on their regulatory measures to ensure that mobile phones. Updates consumers are notified when they’re about to reach their limits to prevent T-Mobile seeks roaming them from incurring additional charges. TRA’s director of consumer affairs, said: concessions in AT&T’s “During the first quarter of this year, not purchase of Plateau only did we notice an increase in the number of consumer complaints related Wireless to roaming cases, but also an increase in T-Mobile US is asking the FCC to require the amounts being billed to consumers AT&T Mobility to honor T-Mobile’s as a result of using mobile roaming.” Late existing roaming agreement with Plateau last year, the TRA urged the three mobile Wireless in the Southwestern United telecommunications service providers States. AT&T is in the process of acquiring to take voluntary actions regarding the Plateau Wireless, and T-Mobile has roaming bill shocks such as establishing warned that AT&T will increase T-Mobile’s a maximum threshold to trigger roaming costs in the area unless the FCC warnings, he said in a statement. He steps in. T-Mobile said it has enjoyed a added that the telcos were told to adopt longstanding roaming agreement with risk management measures such as Plateau Wireless, which offers wireless suspending the mobile services when an service across eastern New Mexico and agreed limit is reached. “It is completely West Texas. T-Mobile told the FCC that, if unacceptable and unfair that consumers AT&T successfully purchases Plateau, “the Plateau system would be integrated into

page_49 wholesale updates

SAMENA TRENDS _ APRIL_2015

AT&T’s network, subjecting T-Mobile on AT&T and would provide significant across the Metro Ethernet product to AT&T’s less favorable roaming benefit to T-Mobile and its customers.” range. “What we’re hoping that what practices in the Plateau service area.” will come out of this exercise is the ability to pass this onto the service T-Mobile continued: “AT&T continues Telkom announces providers,” said Telkom’s managing to use its market position to only wholesale price director of Wholesale Services Prenesh offer roaming arrangements that Padayachee. It’s unclear what the raise T-Mobile’s costs and degrade reductions of between exact price reductions could be for its customers’ experience, harming 10% and 63% consumers specifically. However, competition. In this transaction, it The new DOCSIS 3.1 is a broadband Telkom says it plans for these will mean T-Mobile will lose its ability technology that enables data rates of reductions to help boost internet to have its customers roam in only several Gbit/s for IP-based transmission access in the country. the limited geographic area covered in cable networks, including by its roaming agreement with transmitting Ultra-HD content and South Africa has also recently fallen five Plateau, resulting in either significant capacity requirements for IP-based places on the World Economic Forum’s or unnecessary home roaming by services. Rohde & Schwarz is now global information and communication T-Mobile or the complete denial of offering test solutions for developing technology rankings to position 75. T-Mobile’s ability to roam in the areas and manufacturing DOCSIS 3.1 based Factors such as South Africa’s limited covered by the Plateau agreement. As consumer electronics equipment and international internet bandwidth a result, T-Mobile’s customers may lose components. The new DOCSIS 3.1 is dragged down the country’s ranking. A coverage or full system capabilities in key factor that could negatively impact the parts of the Plateau coverage area the level of Telkom’s price decreases is where they could formerly roam.” the rise in line rental prices. Line rental is the fee Telkom charges its customers For its part, AT&T is urging the FCC to have an active phone line connected to approve its purchase of Plateau. to their homes. Telkom plans to hike its AT&T in June 2014 said it would line rental prices by 13%, from R166 purchase 40,000 customers, a handful per month to R189 per month on May of spectrum licenses and “related 1. Line rental prices are the domain of operations and assets” of Plateau Telkom’s retail business, but Alphonzo Wireless. As a result of the transaction, Samuels, Telkom’s chief technology Plateau said it would exit the wireless officer, told journalists that the business. AT&T had hoped to close company is studying these line rental the transaction in the second half of prices as well. last year. The disagreement between T-Mobile and AT&T on Plateau is part of a wider battle between the TRA Investigates two carriers over roaming. Last year, a broadband technology that enables Consumer Complaints on T-Mobile asked the FCC to provide data rates of several Gbit/s for IP- guidance on what exactly constitutes based transmission in cable networks, International Roaming a “commercially reasonable” data including transmitting Ultra-HD Bill Shocks roaming agreement, an effort to get content and capacity requirements for The Telecommunications Regulatory the agency to clarify its initial roaming IP-based services. Rohde & Schwarz Authority (TRA) began an investigation order from 2011. AT&T and Verizon is now offering test solutions for of 12 complaints regarding mobile Wireless stood against T-Mobile on developing and manufacturing DOCSIS international roaming bills which have the issue, arguing the FCC should not 3.1 based consumer electronics shocked consumers with a total value get involved in the details of roaming equipment and components. The of around 30,000 Bahraini Dinars. agreements. wholesale business of telecoms network Telkom has announced price TRA ‘s Director of Consumer Affairs Sh. Late last year, the FCC disagreed with reductions of between 10% and 63% Abdulla bin Humood Al Khalifa said Verizon and AT&T’s arguments and for its product range. Representatives “During the first quarter of this year , decided to grant T-Mobile’s petition. of Telkom Wholesale Services said that not only did we notice an increase in In its ruling, the FCC essentially will as of May 1, these price decreases all the number of consumer complaints provide guidance to carriers about form part of ranges that could also related to roaming cases, but also an how the FCC will evaluate potential impact ADSL and fiber broadband increase in the amounts being billed to complaints about data roaming customers, depending on who their consumers as a result of using mobile agreements in the future. Thus, internet service providers are. roaming. One of the cases that is being T-Mobile appears to be hoping to use currently investigated has a value of its momentum on the issue to retain Service providers are set to experience BD 12,800.” its more favorable roaming agreement these price reductions which can then with Plateau as AT&T works to acquire be passed on to the consumer. These Sh. Abdulla continued in stating that the carrier. “T-Mobile’s request would rate reductions are expected to be up “During separate meetings late last prevent a non-speculative, transaction- to 10% on Telkom’s wholesale fibre year, TRA urged the three mobile specific harm and preserve the status broadband access, 6%-25% across telecommunications service providers quo, consistent with past Commission the South African Internet eXchange to take voluntary actions regarding practice,” T-Mobile told the FCC. product range and 1.4%-63% across the roaming bill shocks such as “T-Mobile’s requested condition the IP Connect range, with tariff establishing a maximum threshold would impose no meaningful burden reductions of between 35% and 40% to trigger warnings, and to adopt

page_50 wholesale updates

SAMENA TRENDS _ APRIL_2015 risk management measures such as usage of mobile roaming services,’ launch,” the South Korean mobile suspending the mobile services when said Shaikh Abdulla. ‘We are putting all operator said in a release distributed an agreed limit is reached.” He further of our efforts to resolve those cases in via the GSMA. adds, “It is completely unacceptable hand and studying the implementation and unfair that consumers do of additional regulatory measures to The telco highlighted the fact that its not receive the adequate level of ensure that consumers are notified customers can now make HD voice and transparency regarding the cost when they’re about to reach their video calls while roaming on KDDI’s and volume of their usage of mobile limits to prevent them from incurring network in Japan, rather than having roaming services. We are putting all additional charges.’ to rely on 3G networks for voice. The of our efforts to resolve those cases in service is available to customers with hand and studying the implementation Data roaming charges are applied an LG G-Flex 2 smartphone. of additional regulatory measures to to anyone who uses a mobile phone ensure that consumers are notified or tablet while abroad to browse LG Uplus said it will extend the service when they’re about to reach their the Internet, download video or to include new countries and new limits to prevent them from incurring use applications such as Facebook, devices, but did not provide any further additional charges.” It is important to Snapchat, Instagram, WhatsApp information on its plans. “This launch remind consumers of some important or e-mail. Charges are measured is the result of the efforts to allow our steps to avoid potential bill shocks and per megabyte and differ from roaming subscribers abroad the same enable them to make wise decisions company to company, both locally enhanced domestic experience,” a when using mobile roaming services and internationally. A person using spokesperson for the company said, in and minimize roaming charges. data roaming in the UK could be the release. “I expect other worldwide charged between 800 fils and BD7 mobile operators will follow in this per megabyte, depending on which Endeavour to commercialize VoLTE TRA probes ‘unfair’ data UK provider they connect to. In Italy, roaming services in the near future,” charges range from BD3 to BD5 per the spokesperson added. roaming fees megabyte, while in France it costs totaltele.com Bahrain’s telecom watchdog has between BD5 and BD7 per megabyte. launched an investigation into However, in Thailand it could cost ‘unfair’ data roaming charges levied from BD2.5 to more than BD10 per by mobile phone operators, after some Europe proposes one megabyte. This means someone who customers racked up bills totaling downloads a five minute, high-quality week of free roaming – 5 thousands of dinars while overseas. video (around 50 megabytes) in The Telecommunication Regulatory minutes per call Thailand could be charged as much as In the proposal of Latvia, European Authority (TRA) said it was reviewing BD500 in roaming fees. The same five- citizens should be allowed to make national policy following a surge in minute video could cost between BD40 at least 5 minute free phone calls for complaints from the public during the and BD350 in the UK. The TRA has at least 7 days a year when staying first quarter of this year. It revealed come up with the following 12 customers alone ran up BD30,000 recommendations to in roaming charges between them, avoid racking up massive with one user facing a bill for almost data roaming charges by BD13,000, and called for operators customers while overseas. to be more transparent about fees. Turn off data roaming ‘During the first quarter of this year and check roaming rates not only did we notice an increase in of the country you are the number of consumer complaints visiting before using data. related to roaming cases, but also an Regular travelers should increase in the amounts being billed choose the service provider to consumers as a result of using that charges the least, or mobile roaming,’ TRA consumer purchase a prepaid plan affairs director Shaikh Abdulla bin in the country of travel. Humood Al Khalifa said in a statement When roaming, customers yesterday. ‘One of the cases that is should manually select the being currently investigated has a network they want to use, value of BD12,800.’ The TRA last year as the ‘automatic network urged Bahrain’s telecom companies selection’ might connect to impose a maximum data roaming them to a more expensive threshold for customers who were network. travelling abroad to prevent them in other European countries. In the unwittingly accumulating massive same period, and also without being phone bills. It suggested issuing charged, they should be allowed to warnings to customers who exceeded LG Uplus, KDDI launch send a minimum of 5 text messages a certain amount, as well as measures VoLTE roaming and use a minimum of 10MB of data. such as suspending services for LG Uplus has launched a commercial Telecom providers would need to those who reached a certain limit. VoLTE roaming service in Japan properly inform their customers about ‘It is completely unacceptable and through a partnership with KDDI. the rates, the number of days and the unfair that consumer does not receive “While many operators worldwide have volume that can be used at no cost the adequate level of transparency trialed VoLTE roaming services, this is during their stay abroad. Consumers regarding the cost and volume of their the world’s first successful commercial should also get insight in their usage

page_51 wholesale updates

SAMENA TRENDS _ APRIL_2015 and should be able to set a limit to roaming tariffs for consumers. While UK, Ireland, Italy, Sweden, Australia, avoid undesired high phone bills. The on roaming, for outgoing local calls, and a number of other countries. It’s provider should send a notification a ceiling of 80 paise/ minute has been unclear if Google would strike similar when the user comes close to that fixed from Re 1 a minute earlier and Rs deals with other companies to offer limit. 1.15 per minute from Rs 1.5 a minute truly global coverage. Three declined to comment on the The proposal is contained in a by report. Google did not Statewatch published amendment respond to Quartz’s of Latvia, currently President of the request for comment. European Union. The amendment must close the gap between Member Google’s reported plan States and the European Parliament on could potentially solve the abolition of roaming charges. The one of the biggest European Parliament and European headaches of traveling Commission want to get rid of roaming abroad. Under most charges entirely on short term, but the standard wireless European Member States are against plans, when you travel that proposal. outside the range of your home network, In March this year, the Member States your phone picks up a proposed to allow roaming up to foreign network, at the 5MB per day, to be deducted from extreme detriment of users’ own bundle, until 2018. The your wallet (unless you European Commission called the 5MB have airplane mode per day proposal a joke. The European enabled). Commission, the European Parliament and the European Council have to And in many cases, negotiate on the amendment. for STD calls. wireless plans are not all that clear about what services they provide For incoming calls on roaming, a ceiling and where. Travelers, especially those National Roaming of 45 paise per minute has been fixed who don’t often venture outside their Costs to Fall by Nearly a from earlier 75 paise charged earlier home country, can return home to find and 25 paise or a local SMS compared inordinate charges on their cellular bill Quarter to Rs 1 before and 38 paise for STD because their phones picked up a new The cost of roaming within India for SMS from Rs 1.50 earlier, TRAI said. network while abroad. It’s an avoidable locals is set to fall by nearly a quarter It has also mandated telecom service problem, to be sure, but one that from the May 1 after the telecoms providers (TSPs) to offer a special could be revamped to make the user regulator slashed the maximum rates roaming tariff plan. Tariffs for national experience more intuitive, seamless, that the mobile networks can charge. roaming services were last revised in and affordable. Most mobile carriers Currently, the country is divided 2013. It had earlier said the new tariff in the US offer packages that include up into regions, known as circles, regime shall be subject to review after international roaming, but they’re and moving between the regions a year. A draft telecommunication usually quite expensive. usually imposes roaming costs on the tariff (60 the Amendment) order, 2015 consumer, especially if their home was issued on February 2 this year No doubt Google’s mobile service will supplier doesn’t have a network in the for comments of the stakeholders. be—at least initially—a small project. visited circle. The regulator, the TRAI After examining the comments of the Sundar Pinchai, head of Android at has cut the ceiling rate for voice calls stakeholders, TRAI has revised the Google, said in March that Google by 23 percent, and cut the maximum ceiling tariffs for voice calls and SMS doesn’t intend to be a “carrier at scale.” rate for text messages by 75 percent. while on national roaming. Instead, Google will be a mobile virtual The new rates come into effect on network operator, or MVNO, meaning the 1st May 2015. For incoming calls it will buy wholesale access to an on roaming, a ceiling of 45 paise per Google will reportedly existing carrier’s network (like Sprint or minute has been fixed from the earlier T-Mobile) and sell it back to customers. 75 paise. For a local text, it is 25 paise offer free international compared to Rs 1 before; and for STD mobile roaming The Wall Street Journal reports that texts, 38 paise from Rs 1.50 earlier The Google, which is developing its own the upcoming wireless plan, at least regulator last reviewed roaming rates wireless service, will reportedly offer its at first, will only work with Google’s in June 2013. future phone customers international Nexus phone (paywall). But the roaming at no additional cost to their company could be well-positioned to Mobile roaming charges plans, according to The Telegraph. expand its wireless plans to a larger scale if it wanted to, since it’s already will come down from Citing “industry sources,” The in the business of connecting people Telegraph reports that Google is around the world. Project Loon is May 1 in talks to partner with Hutchison Telecom regulator TRAI has reduced bringing wireless internet to remote Whampoa, the owner of British wireless ceiling tariffs for national roaming areas via giant balloons, and Google carrier Three, to provide Americans calls and SMS with effect from May Fiber is taking its internet and cable with free roaming wherever there is 1, 2015, which will bring down the TV offerings to more and more cities a Three network, which includes the in the US.

page_52 wholesale updates

SAMENA TRENDS _ APRIL_2015

OFCOM to consider “We intend to examine these trends in activation charges by DTH operates more detail and the underlying reasons which shall not exceed Rs.450. There impact of mobiles for these trends to understand what also has to be a transparent price and VOIP on landline they indicate about competition in declaration of all types of CPEs by the wholesale call origination market,” the DTH operators to enable the providers’ market said Ofcom in its paper. “We also subscriber to make an informed choice dominance as part of intend to consider the implications says the order. It further directs DTH for residential and business end-users operators to offer a purchase scheme next review (and whether there are any differences called Standard Scheme for all types of The growing use of mobile phones, between the two groups).” CPEs on a standalone basis. The DTH Voice over Internet Protocol (VOIP) and operators can offer additional schemes text-based and social media services Ofcom also intends to review the such as bundling schemes and rentals to initiate calls may mean that the UK’s wholesale fixed call termination market schemes. In the rental schemes DTH dominant landline telephone providers to understand whether companies operators can charge a specified one- no longer require the strictest form of can compete effectively. However, it time interest free refundable security regulation, Ofcom has suggested. expects that this market will remain deposit, installation and activation within the scope of ex ante regulation, charges from the subscriber during The UK’s telecoms regulator is currently as this is an EU-level presumption. enrolment followed by specified consulting the industry before it monthly rental charges. No repair or publishes proposals for change to maintenance charges are permissible the regulation of wholesale fixed call for such subscribers according to ‘origination and termination’ later this abolishes roaming the tariff order. It further mentions year and early next year. According to that DTH operators shall cater for its ‘call for inputs’, which closes on 14 charges free maintenance and repairs of CPEs Customers using the Red package will May, the regulator intends to consider for three years after installation or receive the same services at the same whether these services now provide activation. In case of outright purchase price whether they are in Hungary or “competitive constraints” on BT and and hire purchase schemes, DTH abroad. Diego Massidda from Vodafone KCOM, the provider with ‘significant operators may levy visitation charges Hungary says the decision makes market power’ (SMP) in the Hull area. not exceeding Rs 250 per visit after sense for the Hungarian market:“This the warranty period has elapsed. is something we have developed in As part of its program of work for Subscribers shall also have an option Hungary specifically for the Hungarian 2016/19, Ofcom intends to consider of buy-back or refund for CPEs in all market which makes sense for the whether ‘ex ante regulation’ of the offered schemes including bundled Hungarians, because of course we are wholesalers of fixed voice call schemes with an exception of rental surrounded by a number of different origination services remains necessary; schemes. In rental scheme, subscriber countries with very strong Hungarian and, if so, whether current rules in will get back the security deposit. communities living there and therefore place to ensure sufficient competition DTH operators may prescribe a lock- this would be a very attractive offer remain effective and proportionate. in period not exceeding six months also for those Hungarians who spend Depending on the evidence it receives for a subscriber to remain committed. a lot of time there or have relatives during its review, it could impose Subscribers can surrender the CPE and family there.” Vodafone Hungary additional obligations on BT and KCOM at any time subject to levy of certain is one of the first telecommunication or loosen the regulatory requirements. charges that have been prescribed. companies in Europe to abolish They will also have to set up collection roaming and the impact will be closely Wholesale fixed voice call origination is centres at every district headquarters watched by competitors and the wider currently subject to ‘ex ante regulation’, to enable easy return of CPEs. Vodafone family. Our correspondent which is the strongest possible form of Subscribers shall be provided with a in Budapest is Andrea Hajagos:“After market intervention by the regulator. EU toll-free no. for registration of request this announcement the question is law requires ex ante regulation in cases for the surrender of connection. whether other companies will abolish where there are substantial barriers to Subscribers shall have option of roaming charges before the current market entry; no visible trend towards returning the CPE by paying a nominal date for the end of all roaming charges competition developing; and the effect collection charge of Rs.300 to the in 2018. of competition law alone is unable to DTH operator or to return the CPE at guarantee a competitive market. the designated collection centre. The TRAI Tariff Order restricts tariff order also states that no other According to Ofcom’s call for inputs, charges by any other name other than 35% of UK consumers now use VoIP DTH operators from those specified by it in the order can services such as Skype and Vonage, charging more than be levied on the subscribers by DTH up from 22% in 2012. Mobile calls operators. DTH operators shall declare accounted for 59% of outgoing call Rs.450 for installation all current schemes on their websites minutes in 2013, a percentage which and activation while also publishing all charges for has increased every year since 2010 The Telecom Regulatory Authority each scheme. Subscribers will have to when mobile phone use overtook fixed of India (TRAI) has today issued tariff be given details of the scheme opted line calls for the first time. However, order for commercial interoperability by him. Finally it states that the DTH the number of fixed lines installed in of Customer Premises Equipment (CPE) operators will be given a time of 60 the UK has also increased, according to offered by the Direct-to-Home (DTH) days to align their business processes the report. operators to their subscribers. The tariff for compliance with the provisions of order states that the transparent and tariff order. upfront declaration of installation and

page_53 TECHNOLOGY UPDATES TECHNOLOGY UPDATES

SAMENA TRENDS _ APRIL_2015 SAMENA TRENDS _ APRIL_2015

3 reasons telcos should care about environmental sustainability

In March 2015, the region and world environment as burning 14 kilograms of celebrated Earth Hour, whereby millions coal each day. Much to Qatar’s credit, of people from 173 countries switched a serious national effort to reduce that off the lights in solidarity - demanding figure by about 10% by 2018 is well global action on climate change and underway. respect for the natural environment through empowering individuals to take With every challenge comes the necessary steps to see the change. an opportunity. Here’s why telecommunications providers in Qatar’s own General Electricity and Water particular should be taking environmental Corporation (KAHRAMAA) headquarters, sustainability seriously for more than just Ministry of Municipality and Urban an hour each year: Planning and Tourism Authority joined the likes of the Empire State Building [Industry] knowledge is power. Few and Eiffel Tower – darkening some industries are as well-placed to make a of the world’s most luminous cities difference as we are. Vodafone Qatar and making a statement about the recently hosted a ground-breaking sustainability of Earth’s natural resources sustainability Majlis in partnership with that is being jeopardized due to human Ernst & Young. One key takeaway from the overconsumption. Dubai’s Electricity and debate was that governments are largely Water Authority (Dewa) estimated that it doing their bit by initiating programmes has saved 775 tonnes of carbon dioxide - like Tarsheed and Estedama in Qatar - to emissions just by acknowledging Earth promulgate a culture of a deep awareness Hour over the last seven years. of the environmental impact of everyday George Galica Head of Managed Services life tasks . However, delegates agreed, Vodafone Qatar Currently in Qatar, individuals consume it is for businesses to contribute to a about 43 kilowatt-hours of electricity sustainable national economy, ensuring per day. To put things in perspective, sustainability is deeply ingrained in a that has about the same impact on the company’s business strategy instead of

page_54 page_55 TECHNOLOGY UPDATES TECHNOLOGY UPDATES

SAMENA TRENDS _ APRIL_2015 SAMENA TRENDS _ APRIL_2015

being purely cosmetic. [[However, Our customers care: Whether it’s delegates agreed, it is for businesses improving air quality or controlling to contribute to all dimensions of the the temperature in your home to country’s sustainability- economic, keep energy bills down, it doesn’t get social, and environmental- through more personal than reducing your ensuring that all these dimensions everyday environmental footprint are ingrained in the company’s and even though not everyone is an business strategy instead of being activist – people care. We think it is purely cosmetic. This will create a absolutely essential to involve people, ripple effect on a national level in especially young people, in the terms of the environmental footprint creation of their sustainable society. management of corporates in Qatar, At Vodafone Qatar, we vowed to do as companies will start addressing this from the outset, which is why we their direct and indirect environmental launched Design My Qatar – a social impact more proactively, which initiative designed to engage the includes to giving consumers more citizens of Qatar and encourage them environmentally friendly product to share their views on what they want and service options.In the case of their future to look like. We noticed telecommunications companies, I that much of the conversation has truly believe that telecommunications been about technology solutions to providers in this region and around problems, but no one had ever asked the world are a force for good and consumers if it would be helpful for can allow an energy supplier, for them to know, for example, that they instance, to install smart meters on consume 34 kilowatts of energy. We cell sites to monitor consumption, created an innovative online portal change consumption behaviour in a in the form of a simulated city which manner that still satisfies consumers, rewards contributions and rates yet reduces carbon emissions by a them – creating a community and measurable percentage. Vodafone crowdsourcing ideas. The response probably has more Smart meters was overwhelming and the presence installed in homes around the world of sustainable solutions hard to ignore. than any other network. Leveraging decades of experience and know- how not available anywhere else, telecommunications providers have the opportunity and arguably the responsibility to be a partner in this effort, working hand-in-hand with regulators and decision makers to create a cleaner future.

Smart cities are smart business. From established financial powerhouses like London and Tokyo, to emerging centres like Doha and , the most dynamic cities are all busy plotting their transition to a new era of technological and sustainable governance. They are under mounting pressure to do so. With respect to sustainability, Smart Cities promise to be more responsive to their citizens’ energy needs and more conscious of theirs health. It goes without saying that this is great news for residents, businesses, and the environment. It is also a lucrative commercial opportunity, with the smart city market expected to almost double from $655.57bn in 2014 to $1,266.58bn by 2019. In the Gulf, IDC estimated that total spending on M2M connections George Galica is the Head of Managed Services at Vodafone Qatar. Vodafone and smart technologies would reach has a 20 year pedigree connecting devices and people, and is now brining roughly $224 million in 2014 – a nearly these unrivalled global capabilities to this region 20% increase from the previous year.

page_54 page_55 TECHNOLOGY UPDATES TECHNOLOGY UPDATES

SAMENA TRENDS _ APRIL_2015 SAMENA TRENDS _ APRIL_2015

Technology NEWS

ITU, ETSI Agree Method to to deploy the latter’s Radio Dot System, in a move designed to improve indoor Assess Energy Efficiency of wireless network performance. According to the Saudi Gazette, this is one of the first Mobile Networks implementations of the technology in the The International Telecommunication region and will see the Radio Dot System Union (ITU) and the European fully integrated with Zain’s network. The Telecommunications Standards Institute (ETSI) have agreed on a new standard cellular radio, or ‘Dot’, weighs less than to measure the energy efficiency of 300 pounds and uses an antenna element mobile radio access networks (RANs), to increase coverage in medium to large the wireless networks that connect end- indoor locations, with Ericsson claiming user equipment to the core network. The the technology ‘enables mobile operators standard is the first to define energy- to deliver consistently high performance Technology efficiency metrics and measurement voice and data coverage and capacity in methods for live RANs, providing a the broadest range of enterprise buildings Updates common reference to evaluate their and public venues.’ performance. Its application will build Hamad Al Rumaihi, technology director uniformity in the methodologies at Zain Bahrain, commented: ‘Ericsson’s employed by such evaluations, in parallel Radio Dot System will enable us to offer establishing a common basis for the interpretation of the results. “Improving our customers a better user experience. the energy efficiency of ICT has We are consistently placing the needs of become central to all fields of technical our customers first, and this system will standardization at ITU,” ITU Secretary- ensure that they enjoy the best indoor General Houlin Zhao has said. “The world mobile connectivity.’ is moving towards hosting billions of connected devices, things and objects, making energy efficiency essential to Google Inc Testing New the functionality and environmental Algorithm to Improve sustainability of ICT networks,” he has added. Mobile Search Results Google Inc has been working hard to increase the total number of its mobile Zain, Ericsson to improve search users, given the growth in indoor coverage via Radio smartphone usage. For this specific reason the search engine giant is testing a new Dot System algorithm that will rank all the websites Mobile operator Zain Bahrain has based on their mobile-friendliness. This partnered with Swedish vendor Ericsson means that Google will enhance its search

page_56 page_57 TECHNOLOGY UPDATES TECHNOLOGY UPDATES

SAMENA TRENDS _ APRIL_2015 SAMENA TRENDS _ APRIL_2015

engine, by listing the most accurate their hands are full -- answering the Kao and Dementyev are joined on and relevant results. These changes phone while cooking, for instance. It the paper by their advisors, principal will take place starting from April could also augment other interfaces, research scientist Chris Schmandt and 21. Google is looking to update its allowing someone texting on a Joe Paradiso, an associate professor of algorithm, which will initially affect cellphone, say, to toggle between media arts and sciences. Dementyev the mobile searches, and have a symbol sets without interrupting and Paradiso concentrated on his or her typing. Finally, it could the circuit design, while Kao and significant impact on search results. enable subtle communication in Schmandt concentrated on the Search results will be filtered on circumstances that require it, such as software that interprets the signal the basis on relevancy, and will be sending a quick text to a child while from the capacitive sensors, filters fully optimized for the mobile users. attending an important meeting. out the noise, and translates it into Google can retain its market share by movements on screen. vending off its competitors like Yahoo The researchers describe a prototype and Bing, by expanding its market for of the device in a paper they’re For their initial prototype, the mobile users. The search engine giant presenting at the Association for researchers built their sensors by wants to capitalize on the recent shift Computing Machinery’s Computer- printing copper electrodes on sheets in the market away from the desktop. Human Interaction conference in of flexible polyester. That allowed According to a report by Search Seoul, South Korea. According to them to experiment with a range of Engine Watch, Internet search usage Cindy Hsin-Liu Kao, an MIT graduate different electrode layouts, but in on smartphones has finally surpassed student in media arts and sciences ongoing experiments, they’re using and lead author on the new paper, off-the-shelf sheets of electrodes desktop usage in 2014. Furthermore, the device was inspired by the colorful like those found in some track pads. they also mentioned that over 77% of stickers that some women apply to They’ve also been in discussion with business executives use internet on their nails. “It’s a cosmetic product, battery manufacturers -- traveling to their smartphones, instead of desktops popular in Asian countries,” says Kao, China to meet with several of them or laptops. Meanwhile, overall mobile who is Taiwanese. “When I came here, -- and have identified a technology traffic for most prominent websites I was looking for them, but I couldn’t that they think could yield a battery range from 10%-35% in the first three find them, so I’d have my family mail that fits in the space of a thumbnail month of the year. This means that them to me.” but is only half a millimeter thick. A websites which are not yet optimized special-purpose chip that combines for the mobile, could stand to losing Indeed, the researchers envision that the functions of the microcontroller, approximately one third of their traffic a commercial version of their device radio, and capacitive sensor would starting from April 21. Companies would have a detachable membrane further save space. on its surface, so that users could can gain considerable advantage coordinate surface patterns with At such small scales, however, energy over competitors by optimizing their their outfits. To that end, they used efficiency is at a premium, so the websites for mobile devices. Due to capacitive sensing -- the same kind device would have to be deactivated the latest change in the algorithm, of sensing the iPhone’s touch screen when not actually in use. In the new companies can now finally capitalize relies on -- to register touch, since it paper, the researchers also report on increasing mobile traffic, and can tolerate a thin, nonactive layer the results of a usability study that should be very responsive while between the user’s finger and the compared different techniques for adapting to changes provided by underlying sensors. turning it off and on. They found Google. The search engine has made that requiring surface contact with an announcement that it will continue As the site for a wearable input device, the operator’s finger for just two or to provide updates for mobile devices, however, the thumbnail has other three seconds was enough to guard which can increase engagement by advantages: It’s a hard surface with no against inadvertent activation and deactivation. optimizing search results. Moreover, nerve endings, so a device affixed to it wouldn’t impair movement or cause Google is facing pressure from EU discomfort. And it’s easily accessed regulators, who have accused the by the other fingers -- even when ZTE claims 5G research search engine of favoring its own the user is holding something in his online shopping stores by distorting breakthrough or her hand. “It’s very unobtrusive,” Chinese equipment vendor ZTE search results. In the latest comScore Kao explains. “When I put this on, it Corporation has revealed a new for March, Google is losing its market becomes part of my body. I have the Multi-User Shared Access (MUSA) share to Bing, as it has grabbed more power to take it off, so it still gives you technology, which it claims is capable than 20% in the US market. However, control over it. But it allows this very of more than tripling the overload Google kept its lead with a market close connection to your body.” capacity of wireless access networks. share of 64.4%, while Microsoft shares Based on simulation results, ZTE’s grew to 20.1%, reflecting an increase To build their prototype, the researchers MUSA algorithm delivered an of 0.3%. Yahoo made a little ground needed to find a way to pack capacitive sensors, a battery, and three separate improvement of over 200% in the holding onto its 12.7%. Google stock chips -- a microcontroller, a Bluetooth overload radio, thus ‘helping to closed at $543.52 yesterday, and has radio chip, and a capacitive-sensing transition networks for the era of the risen approximately 1.6% this year. chip -- into a space no larger than Internet of Things (IoT)’. MUSA is one a thumbnail. “The hardest part was of ZTE’s ‘Pre5G’ research projects, Thumbnail Track Pad probably the antenna design,” says which use 5G-ready technologies Artem Dementyev, a graduate student to provide commercial Long Term Researchers at the MIT Media Lab are in media arts and sciences and the developing a new wearable device paper’s other lead author. “You have to Evolution (LTE) end-users with next that turns the user’s thumbnail into put the antenna far enough away from generation access experience. Further, a miniature wireless track pad. They the chips so that it doesn’t interfere ZTE successfully tested its Pre5G Ultra- envision that the technology could let with them.” Dense Network (UDN) solution, which users control wireless devices when utilizes Pico Remote Radio Unit (RRU) page_56 page_57 TECHNOLOGY UPDATES TECHNOLOGY UPDATES

SAMENA TRENDS _ APRIL_2015 SAMENA TRENDS _ APRIL_2015 hardware platform and Cloud Radio things and objects, making energy LTE prioritization, a standard interference cancellation technology, efficiency essential to the functionality feature of LTE, can provide a highly allowing for denser deployment of and environmental sustainability of reliable and flexible alternative to base stations in order for operators ICT networks.” Luis Jorge Romero, existing powerline or fixed network to gain higher capacity density. ZTE ETSI Director General: “ETSI has a connections of smart meters. Smart expects that its Pre5G technologies track record of developing market- meter roll-out planning is picking – MUSA, Massive multiple input, driven standards and specifications up speed in Germany, among other multiple output (MIMO) and UDN – to deliver improved energy efficiency places. At the same time, on-going will be commercially deployed in 2015. in telecommunications networks and LTE network deployments open new equipment. We are particularly pleased opportunities for utilities to use public Xiang Jiying, chief scientist at ZTE, said: by the result of this cooperation which networks for communicating with their ‘The validation of MUSA and UDN has produced ITU-T L.1330 and the smart meters. Utility IT systems can use technologies further enhances the technically equivalent ETSI ES 203 228.” the information collected from smart Pre5G solutions … It will help operators The new standard, Recommendation meters as a tool to help them manage exponentially enhance the access ITU-T L.1330 “Energy efficiency their power networks in the context rate and overall network capacity measurement and metrics for of increasing integration of volatile by leveraging existing resources in telecommunication network”, was renewable energy sources, such as the next three-to-five years. Before developed by ITU-T Study Group 5 in wind and solar power, into the power standardization of 5G technologies, cooperation with the ETSI Technical network. Communication of new this solution can effectively mitigate Committee on Environmental energy tariffs can be sent to the meter the challenges of data traffic surge, Engineering and in liaison with the 3rd by the utility to encourage the use of and help operators seize market Generation Partnership Project (3GPP) energy at the time when it is available opportunities and achieve better and the GSM Association (GSMA). in the network from renewable energy, business development.’ ITU-T L.1330 accounts for the fact for example, on a sunny or windy day. that optimizing the energy efficiency The trials demonstrated that even As previously reported by of equipment within a network does under heavily loaded radio network CommsUpdate, in January 2015 not guarantee the optimization of its conditions, the stream of messages ZTE completed a ‘world first’ pre- overall energy efficiency. The standard from the smart meters can be received commercial field test of multi-user takes a more comprehensive view of a within the expected transmission time and multi-stream transmission on a RAN, incorporating impacts on energy period of less than 100 milliseconds Massive MIMO base station, which efficiency caused by the interactions at the central utility IT systems over a demonstrated peak data throughput of interconnected equipment within commercial Ericsson LTE base station. more than three times that of complex networks. The scope of the traditional base stations and average standard extends to radio base stations, data throughput that exceeded backhauling systems, radio controllers conventional systems by at least five and other infrastructure radio-site times. equipment. The technologies covered are GSM, UMTS and LTE (including LTE-Advanced). ITU-T L.1330 offers ITU and ETSI Agree a pragmatic measurement approach Method to Assess Energy that focuses on the performance of ‘partial’ networks to extrapolate Efficiency of Mobile estimates of the energy efficiency of Networks ‘total’ networks. It provides for a total ITU and the European network to be defined by topologic, Telecommunications Standards geographic or demographic Institute (ETSI) have agreed a new boundaries, enabling estimations of Professor Monti, Director of the standard to measure the energy the energy efficiency of an operator’s Institute for Automation of Complex efficiency of mobile radio access network, a country or continent’s Power Systems (ACS), E.ON Research networks (RANs), the wireless networks, or networks distinguished Center at RWTH Aachen University, networks that connect end user by their coverage of urban or rural says: “As the installation of smart meters equipment to the core network. The areas. The result of these estimations progresses, and communications and standard is the first to define energy- is captured by an ‘assessment report’, power network technology develops efficiency metrics and measurement the form of which is detailed by the towards smart grids, more and more methods for live RANs, providing a standard. business opportunities are opening common reference to evaluate their up for utilities. They can improve the performance. Its application will build Ericsson, Telefónica and services they offer their customers uniformity in the methodologies and to optimize their networks, employed by such evaluations, in RWTH Aachen University enabling the large-scale integration parallel establishing a common basis Demonstrate LTE for of renewable energy sources into for the interpretation of the results. the power generation mix while “Improving the energy efficiency of Smart Meters maintaining the highly reliable power ICT has become central to all fields of Ericsson, together with Telef nica network service that society needs to technical standardization at ITU,” said Germany and E.ON Research function efficiently.” The advantage ITU Secretary-General Houlin Zhao. Center at RWTH Aachen University, of applying the QoS features to the “We are moving towards a world that demonstrated the feasibility of meter traffic is that even in the rare will host billions of connected devices, using LTE networks in smart meters case of overload conditions, the smart for the energy sector. Trials proved meter messages will not be delayed

page_58 page_59 TECHNOLOGY UPDATES TECHNOLOGY UPDATES

SAMENA TRENDS _ APRIL_2015 SAMENA TRENDS _ APRIL_2015

or dropped and will be delivered to fastest average 4G download speed Average download speeds, by serve smart meter applications. This (18.6Mbit/s). Overall, 97% of test provider, Q4 2014 means that messages sent to a pre- samples across EE, O2, Three and Overall, 97% of test samples across paid meter to reconnect a customer Vodafone provided 4G download EE, O2, Three and Vodafone provided that has just phoned to buy a top- speeds above 2Mbit/s, typically 4G download speeds above 2Mbit/s, up for their electricity or gas meter, sufficient to support high capacity typically sufficient to support high will happen instantly, regardless of video services. Three was the quickest capacity video services.EE delivered the network load conditions. In the on average for web browsing over 4G 4G download speeds faster than trials, the stream of message from the (an average of 0.63 seconds to load 2Mbit/s in 99.8% of test samples. This smart meters was prioritized using the a web page). EE delivered the fastest compared with 98.7% for Vodafone, Quality of Service (QoS) features of average upload speed of 17.6Mbit/s. 98.1% for O2 and 89.9% of test LTE. Using prioritization, smart meter Latency was more consistent than samples for Three. messages were promptly received the other measures across the 4G even in an overload situation, when networks tested (an average of Web browsing on 4G other traffic on the network had heavy 53.1 milliseconds).Ofcom’s research Across all 4G networks tested, average delays. The trials were conducted using provides a snapshot of how 4G and 3G web browsing speed was 0.72 seconds. an Ericsson LTE base station set up at networks performed for EE, O2, Three Three had the fastest average 4G web the ACS Institute of the E.ON Research and Vodafone in the five towns and browsing speed, taking an average Center at RWTH and connected to cities between October and December of 0.63 seconds to load a web page. the Ericsson Core Network facilities 2014.The report is intended to provide The average time on O2’s network available at Ericsson Eurolab in information that can help consumers was 0.71 seconds, while there was Aachen. The world-class RTDS power understand how 4G and 3G mobile no significant difference between the network simulator of the E.ON networks perform and support 0.76 and 0.77 seconds recorded by Research Center was used to generate consumers in choosing a service that Vodafone and EE respectively. Across the stream of messages according to best suits their needs. The findings are all the four networks, 83.4% of test the specifications of the Smart Meter also expected to encourage providers samples provided 4G page loading use case provided by Telefónica. The to improve their performance. speeds of under one second. However, tests followed an independently the proportion was lower for EE conducted set of simulations of the 4G networks performed much (62.9%), with nearly a third (29.9%) of messaging use case on the Ericsson better than 3G networks EE’s web browsing test samples failing LTE high performance simulator. The Mobile operators continue to invest to load within 15 seconds. results from the simulation showed in and expand their networks as that the prioritized MMS message more people take 4G services.EE’s 4G upload speeds streams were transmitted promptly 4G network now covers 81% of UK The average 4G upload speed was even in radio network overload homes and businesses, up from 68% 13.6Mbit/s, eight times faster than 3G conditions. These simulation results in June 2014. O2 and Vodafone have at 1.6Mbit/s. EE had the fastest average were confirmed by the tests sending increased their 4G coverage to 66% 4G upload speed in the towns and the messages over the air with the real and 65% respectively, up from 43% cities tested, at 17.6Mbit/s, followed base station. and 37% in June 2014. Three’s 4G by O2 (13.2Mbit/s) and Vodafone coverage is reported here for the first (13.1Mbit/s). Three’s average 4G time, reaching 53% of premises in upload speed was 9.4Mbit/s.EE, OFCOM Research March 2015.The average download Vodafone and O2 delivered upload Shows 4G Significantly speed for 4G services was 14.7Mbit/s, speeds faster than 10Mbit/s in over Outperforms 3G more than twice as fast as the average two thirds of test samples (69.7% for 3G speed (5.9Mbit/s) across the five EE, 68.7% for Vodafone and 68.5% for Networks towns and cities tested. Web browsing O2). Less than half of Three’s upload The UK’s telecoms regulator, OFCOM was faster on 4G than 3G, taking an speed test samples were faster than has published research into 4G and average of 0.72 seconds to load a 10Mbit/s (47.4%). 3G mobile broadband performance. standard web page on 4G, compared Overall, 4G networks performed much with 1.04 seconds on 3G.Upload Latency on 4G better than 3G networks in five sample speeds for 4G services (13.6Mbit/s on Latency represents the responsiveness towns and cities tested - Edinburgh, average) were more than eight times of the network, measured by recording Leeds, London, Newcastle and Poole/ faster than 3G (1.6Mbit/s on average). the time a small piece of data takes to Bournemouth - where both 4G and 4G networks had lower latency than travel to a point and return a response 3G networks have been rolled out. In 3G networks. Across Ofcom’s test sites, to the user’s device. Lower latency these areas, 4G networks delivered an average latency was 53.1 milliseconds is important for things like gaming, average download speed of 14.7Mbit/s (ms) on 4G while on 3G it was 63.5ms. video calls and web browsing. The (compared with 5.9Mbit/s on 3G) and average latency across all 4G networks took 0.72 seconds to load a web page 4G download speeds tested was 53.1 milliseconds (ms), (compared with 1.04 seconds on 3G). The average download speed for 4G compared with 63.5ms on 3G. EE had The research, which collected 120,000 services was 14.7Mbit/s. EE delivered the lowest average latency on 4G, at test samples on smartphones, also the fastest average 4G speed in the 48.4ms. For Three it was 50.9ms, for highlighted variations in performance towns and cities tested, at 18.6Mbit/s. O2 it was 55.2ms and for Vodafone between the UK’s network operators - For Vodafone, average download was 59.5ms. Latency on 4G was more EE, O2, Three and Vodafone - across 16.4Mbit/s, O2 was 13.9Mbit/s and consistent than the other measures four key measures: EE delivered the Three was 8.5Mbit/s. across the mobile networks tested.

page_58 page_59 TECHNOLOGY UPDATES TECHNOLOGY UPDATES

SAMENA TRENDS _ APRIL_2015 SAMENA TRENDS _ APRIL_2015

Each mobile operator saw over 80% Director, said: “People are increasingly conventional lithium-ion batteries of test samples provide latency speeds connected, communicating and used in millions of laptops and cell within 40ms and 80ms. sharing content on their mobiles phones today, Dai added.”Lithium-ion when out and about.”4G is delivering batteries can be a fire hazard,” he said. Differences in 4G performance in a significantly enhanced mobile As an example, he pointed to recent areas tested experience and, as these services roll decisions by United and airlines Ofcom’s first research, published in out across the UK; our research will to ban bulk lithium-battery shipments November 2014, was carried out in support consumers when choosing on passenger planes “In our study, we Birmingham, Edinburgh, Glasgow, the right mobile package for their have videos showing that you can drill London and Manchester. Ofcom needs.” through the aluminum battery pouch, chose to vary where it measured and it will continue working for a while mobile broadband for the second longer without catching fire,” Dai said. phase of research to provide a wider No More Exploding “But lithium batteries can go off in an snapshot of mobile broadband in Phone Batteries Promise unpredictable manner - in the air, the UK towns and cities. Ofcom tested in Researchers car or in your pocket. Besides safety, we two cities in both phases of research have achieved major breakthroughs in Stanford University scientists (Edinburgh and London), so a aluminum battery performance.”One have invented the first high comparison between data collected example is ultra-fast charging. performance aluminum battery in March - June 2014 (Q2 2014) and Smartphone owners know that it that’s fast charging, long lasting and October - December 2014 (Q4 2014) can take hours to charge a lithium- inexpensive. Researchers say the new is only possible for these two cities. ion battery. But the Stanford team technology offers a safe alternative In London, there were no statistically reported “unprecedented charging to many commercial batteries in significant differences between Q2 times” of down to one minute with the wide use today.”We have developed 2014 and Q4 2014 in overall average aluminum prototype. a rechargeable aluminum battery that 4G download speed (13.1Mbit/s, may replace existing storage devices, Q2 2014, and 13.2Mbit/s, Q4 2014) Durability is another important factor. such as alkaline batteries, which are or average web browsing speed Aluminum batteries developed at bad for the environment, and lithium- (unchanged between Q2 and Q4 2014 other laboratories usually died after ion batteries, which occasionally at 0.72 seconds). In Edinburgh, there just 100 charge-discharge cycles. burst into flames,” said Hongjie Dai, was a 12.5% decrease in average 4G But the Stanford battery was able to a professor of chemistry at Stanford. download speed, from 16.8Mbit/s in withstand more than 7,500 cycles “Our new battery won’t catch fire, Q2 2014 to 14.7Mbit/s in Q4 2014. As without any loss of capacity. “This was even if you drill through it.”Aluminum more people are taking 4G services the first time an ultra-fast aluminum- has long been an attractive material from the mobile operators, this is ion battery was constructed with for batteries, mainly because of its likely to affect the average speeds stability over thousands of cycles,” low cost, low flammability and high- being received. Average web browsing the authors wrote. By comparison, a charge storage capacity. For decades, speed improved in Edinburgh by typical lithium-ion battery lasts about researchers have tried unsuccessfully 10.3% (0.80 seconds in Q2 2014, 1,000 cycles.”Another feature of the to develop a commercially viable down to 0.72 seconds in Q4 2014).In aluminum battery is flexibility,” Gong aluminum-ion battery. A key challenge the five towns and cities tested in Q4 said. “You can bend it and fold it, so has been finding materials capable 2014, the fastest average 4G speeds it has the potential for use in flexible of producing sufficient voltage after across all four networks were in Poole/ electronic devices. Aluminum is also a repeated cycles of charging and Bournemouth and Newcastle, at cheaper metal than lithium.” discharging. 15.6Mbit/s and 15.3Mbit/s respectively (with no statistically significant Applications Graphite cathode difference between these speeds). In addition to small electronic devices, An aluminum-ion battery consists of This compared with 14.8Mbit/s in aluminum batteries could be used two electrodes: a negatively charged Leeds, 14.7Mbit/s in Edinburgh and to store renewable energy on the anode made of aluminum and a 13.2Mbit/s in London. Leeds saw electrical grid, Dai said.”The grid needs positively charged cathode.”People the fastest average web browsing a battery with a long cycle life that can have tried different kinds of materials speed on 4G, at 0.71 seconds to load rapidly store and release energy,” he for the cathode,” Dai said. “We a standard web page. Edinburgh, explained. “Our latest unpublished accidentally discovered that a simple London and Poole/Bournemouth all data suggest that an aluminum battery solution is to use graphite, which recorded an average web browsing can be recharged tens of thousands is basically carbon. In our study, we speed of 0.72 seconds while it was of times. It’s hard to imagine building identified a few types of graphite 0.76 seconds in Newcastle. a huge lithium-ion battery for grid material that give us very good storage.”Aluminum-ion technology performance.”For the experimental Mobile coverage also offers an environmentally battery, the Stanford team placed The mobile market is changing rapidly friendly alternative to disposable the aluminum anode and graphite as mobile operators continue to alkaline batteries, Dai said.”Millions of cathode, along with an ionic liquid invest in and expand their networks. consumers use 1.5-volt AA and AAA electrolyte, inside a flexible polymer- Coverage for 3G mobile varied batteries,” he said. “Our rechargeable coated pouch.”The electrolyte is between operators in March 2015, aluminum battery generates about basically a salt that’s liquid at room ranging from 90% to 98% of homes two volts of electricity. That’s higher temperature, so it’s very safe,” said and businesses. For the same period, than anyone has achieved with Stanford graduate student Ming Gong, coverage of 4G varied between 53% aluminum.”But more improvements co-lead author of the Nature study. and 81%. Claudio Pollack, Ofcom’s will be needed to match the voltage of Aluminum batteries are safer than Consumer and Content Group lithium-ion batteries, Dai added.

page_60 page_PB TECHNOLOGY UPDATES TECHNOLOGY UPDATES

SAMENA TRENDS _ APRIL_2015 SAMENA TRENDS _ APRIL_2015

Innovating against Adversity: Paltel continues to grow Telecom Services in Palestine without 3G Technology

The Palestine Telecommunications from Palestinian universities on an Company, also known as Paltel Group annual basis with specialization in the is the telecommunications leader in ICT field. The Palestinian market place Palestine and its establishment in 1997 is endowed with a relatively cheap labor as a public shareholding company was a force, 75% lower than in Western Europe major milestone in the development of and the United States. Despite the fact the industry in Palestine. Over the past that education skills are needed to 18 years, Paltel Group developed into a refine problem solving and innovation, market leader in the Palestinian ICT sector the overall ecosystem is promising but with a market capitalization of $1.06 spoiled by the imposed curb on access to billion USD as stated in its 2014 financial 3G frequencies as imposed by the Israeli results. The company’s resilience is also Authorities. manifested in strong investor confidence providing its stock, unrivaled dominance Paltel Group’s mobile arm, Jawwal has an on the Palestine Exchange with a 31% estimated 2.7 million mobile subscribers of the total market capitalization. Paltel in Palestine. The original frequency Group continues to employ over 3,000 allocated to Jawwal in 1998 was allotted employees in Palestine and its operations to serve 240,000 subscribers. Since have been sustained with net earnings the year 2000, Jawwal has been on growing from $12.1 million USD in 2000 record requesting from Israel additional to $120 million USD in 2014. frequencies to allow more capacity to serve the additional customer base, to ICT plays a critical role in the Palestinian solve problems of congestion and drops in economy representing an estimated 6% the quality of services. Jawwal is currently of the Palestinian GDP. The ICT sector is operating on the 2G band with 2.4MHz well placed to make use of the country’s dedicated and 2.4MHz shared, which rich human capital, a well and young has placed the company in a desperate educated Palestinian population, with state regarding additional frequencies more than 2,500 students graduating to sustain its services. As a result,

page_61 page_62 TECHNOLOGY UPDATES TECHNOLOGY UPDATES

SAMENA TRENDS _ APRIL_2015 SAMENA TRENDS _ APRIL_2015

continues to deny Palestinians the 2014 onwards are projected to be $34 right to access the needed spectrum million USD annually. Access to 3G while at the same time granting would also have a significant impact Israeli telecom operators 3G and 4G for the entire ICT sector in Palestine, technologies. generating an additional $60 million annually for the sector, in addition Today, 3G is critical for advancing to $150 million USD in new revenue the socio-economic development streams for the Palestinian Authority. of Palestine where it is essential to succeed in today’s technology In 2010, 3G was launched in and knowledge based economies. neighboring Jordan. By the end of 2014, According to research carried out by 3G share in Jordan constituted 43% of the GSMA and Deloitte regarding total connections and 3G connections the impact of mobile telephony on jumped by 24% during 2014. 56% of Jawwal has been placed at a major economic growth “a 10 per cent rise unique mobile subscribers in Jordan competitive disadvantage making it from 2G to 3G penetration increases were connected to the internet in Q4 nearly impossible to compete against GDP per capita growth by 0.15 2014, 77% of them via the 3G network. established Israeli telecom operators percentage points; and in developing However, 3G was launched in Israel who are currently making significant markets, a 10 per cent expansion much earlier, 2004. By the end of 2014, 3G and 4G infrastructure investments in mobile penetration increases 3G share in Israel constituted 78% of across the West Bank. Although productivity by 4.2 percentage points.” total connections and 3G connections Jawwal is one of the licensed telecom Direct investments in communication jumped by 11% during 2014. 87% providers in Palestine, its market share technology development are strongly of unique subscribers in Israel were is constantly being eroded by illegal correlated with increased job creation. connected to the internet in Q4 2014, competition. During a recent fieldwork Digital inclusiveness contributes to 84% of them via the 3G network. survey conducted in the West Bank an increase in direct and indirect by Jawwal in Q3 2014, 10% of Jawwal employment, capital investments, The deployment of 3G technology is users indicated that they hold an technology infrastructure and creation important for Palestine to enable the Israeli SIM, mainly to benefit from 3G of new industries. One of the fastest provision of data applications over services they cannot access with the growing areas in the IT industry is the cell phones. Over the years, Israel Palestinian telecom operators. development of applications for smart dragged its feet in regards to 3G phones and wireless communications, spectrum provision to Palestine. With Illegal infringements by Israeli which has become a key opportunity the advent of yet more innovation operators into the Palestinian market for Palestinian entrepreneurs. 3G and more advanced spectrum such as manifests itself by the sustained technology will further reduce youth 3.5G, 4G/LTE and LTE, Israel continues deprivation of 3G frequency to Jawwal unemployment which is at 40% to restrict the use of frequencies and and the other telecom operator in by providing an entrepreneurial limits Palestinian access to even 2G Palestine by the Israeli authorities. ecosystem where Palestinian youth frequencies placing Paltel Group at For years, Israeli operators have been can use mobile technology to innovate great peril regarding the basic voice able to illegally install their 3G towers new startup businesses. communications abilities of operators, throughout the West Bank to target let alone data abilities. The lack of the Palestinian population-essentially Paltel Group’s growth may depend frequencies not only has a destructive Paltel Group’s customer base. There upon commercial ability to offer 3G impact on mobile operators in any is growing evidence that Israeli services as the spread of smart phones country, but also on the ability of operators are not only a threat to continues and the world moves onto Internet providers to function properly mobile operators in Palestine, but are 4G and LTE services. According or become competitive regionally. penetrating the domain of fixed line to the GSMA, “The number of 3G This holistic handicap is detrimental and data operators as well. connections globally has increased to any national economic growth, dramatically in recent years, growing prosperity and even security. In practice and contrary to the clear from just over 600 million provisions of Article 36 of Annex III of in 2009 to over two billion the Oslo Accords Interim Agreement, in 2013.” Unfortunately, the Israel continues to restrict Palestine’s lack of 3G for Palestinian access to the electromagnetic sphere operators is estimated to by preventing the deployment of 3G create an economic loss technologies, preventing infrastructure ranging between $80-100 construction in Palestine, destroying million USD annually. Hence, Palestinian broadcasting infrastructure, Paltel Group has estimated limiting the selection of equipment that the lost opportunities to be imported and easing Israel’s in the deployment of 3G unauthorized telecom operations in and 4G services from Palestinian areas and intentionally 2009-2013 for Jawwal is undermining the Palestinian $177 million USD. If Paltel Authority’s jurisdiction. Despite Group does not receive continuous Palestinian requests for 3G frequencies from Israel the release of 3G frequencies, Israel soon, lost revenues from

page_61 page_62 TECHNOLOGY UPDATES TECHNOLOGY UPDATES

SAMENA TRENDS _ APRIL_2015 SAMENA TRENDS _ APRIL_2015

The Networked Society: a new paradigm shift

From Industrial Economy to They are also significant contributors to some of our most pressing global Networked Society challenges, including social inequality, Some of the most powerful technologies echo pollution and energy high ever created are rapidly invading all consumption. aspects of our everyday lives. This article outlines how digitization is exponentially During the industrial economy era, new leveraging our businesses and societies technologies used to take decades to be from the industrial revolution economy adopted on a large scale basis. Computers, to the Networked Society era that Internet and mobility helped in reducing is constantly changing, responding, the adoption time to years and months. experimenting and adapting. Social media is further reducing this time to days and is mobilizing millions for The industrial economy, in its most basic causes in just few hours, leading to major sense, was built on the automation, societal and political changes in countries efficiencies of mass production and where establishments and regimes were resources specialization. It stimulated considered too anchored and strong to scale, standardization and proprietary collapse. control. This economic system brought to humanity unparalleled benefits, While it took telephones 35 years to from new work opportunities, poverty be adopted by quarter of the American reduction and affordable travel to vastly population at the beginning of the 20st greater access to health care and financial century, smartphones needed only two services. years to achieve the same penetration rate in the US in 2007, at the beginning Nonetheless, power largely remained of the Networked society era. in the hands of few privileged persons Mr. Joseph Abou Rjeily and many of the vertically integrated Senior Head of Corporate Strategy organizations that have emerged in this & PMO Department Alfa Telecom - Lebanon economy are now suffering from major inefficiencies and competitive barriers.

page_63 page_64 TECHNOLOGY UPDATES TECHNOLOGY UPDATES TECHNOLOGY UPDATES

SAMENA TRENDS _ APRIL_2015 SAMENA TRENDS _ APRIL_2015 SAMENA TRENDS _ APRIL_2015

Digital Dynamics in a contacts, find nearby friends, and We reached a stage where we navigate completely new worlds thanks should look beyond the purely Physical World to the contextual awareness, social technological effects of the era Digitization and ICT have been connections and past preferences we call the Networked Society and fundamentally transforming how we stored in a single mobile app. Our very attempt a broader understanding organize our lives, businesses and identities are therefore defined less of its transformational business societies. by the traditional gatekeepers of local and social dynamics that are now and national society, and more by the emerging on a global scale. But only recently some of the most digital services, platforms and global powerful technologies ever created communities we choose. As these became intensely personal. They are From Moderate and digital infrastructures and interactions now embedded not just into our mobile become increasingly essential to Linear to Exponential and devices and cloud software, but into the functioning of our societies and limitless Change our everyday expressions, interactions, economies, it is in everyone’s interest Moore law predicted that relationships and exchanges. to understand their potential and computational capacity will continue ensure their integrity. to double roughly every 18 months. The result is an unprecedented The pace of this development capacity for individual empowerment, Basic social rights such as personal keeps getting amplified by rapid entrepreneurship and innovation. Two privacy and security will require new improvements in software, resulting decades after the emergence of the definitions and protections. Safeguards in artificial intelligence and advanced Internet era, we now expect not just will be needed to protect individuals algorithms that are quickly evolving instant online access to information from the abuse of information and the to understand and interpret some of and to our contacts and services from rise of new monopolies. And affordable our most complex natural processes. anywhere in the world, we also expect broadband connectivity will need to be these to be intuitively organized, extended to billions of individuals who At the same time, the ability to customized, managed and presented remain economically excluded. If the access this capacity is multiplying for us, without ever having to ask. Networked Society we are now entering due to sharp increases in bandwidth, is to be a more inclusive, equitable and and improvements in latency and Through multiple online personae, we empowering one, we must start by other QoS parameters. Interfaces adapt our appearance, language and examining the fundamentally different are also becoming more seamless even our name according to the contexts nature of a physical world fuelled by due to advances in cloud computing and communities we encounter. We digital connectivity. as well as in visual, tactile and verbal make new acquaintances and business interfaces.

page_63 page_64 page_65 TECHNOLOGY UPDATES TECHNOLOGY UPDATES

SAMENA TRENDS _ APRIL_2015 SAMENA TRENDS _ APRIL_2015

Such exponential improvements have assets and infrastructures, but from object network efficiency. brought what just over a decade ago the people, platforms and insights were considered industrial-strength that are leveraged to reinvent them. DATA – OWN, SHARED AND processing and communication This represents a shift from static OPEN capabilities into the homes and hands objects to dynamic services, from Thanks to new analytical and of individuals everywhere. Thanks to physical communities to digital algorithmic tools, the rising amounts this highly capable infrastructure, data networks and from centralized of data created by practically every and information have become the new production to distributed knowledge. person, thing and interaction can raw materials for value generation. The physical world, in short, behaves now be combined across object Metadata, sensor data, interaction more like a digital one – enabled by networks to enable new forms of patterns, behavioural information and a fundamentally new set of building collective reasoning for improved much more are generated in massive blocks for value creation: decision-making and automated volumes and made available in real tasks. Organizations will harness time. We have reached a point where DIGITIZATION – EXPONENTIAL and synthesize this data – whether global networks are equally valuable AND UBIQUITOUS their own, shared or open data – in terms of content – for example, Physical products are either becoming dynamically and in real time as a the information they hold and make digital services or are significantly new resource to deliver insights available for innovation and extraction enhanced with new digital service that were never before possible. of new insights – as they are in terms capabilities. An organization’s digital However, without trust in the privacy of their traditional functional value of assets rise in importance, becoming and security of data used in these providing connectivity. The continual some of the primary sources of applications, the potential benefits improvement of ICT infrastructure business value, and physical processes in these areas will be severely limited. also provides increasingly complete become real-time data flows. off-the shelf capabilities. Anyone Wherever possible, business practices CAPABILITIES – AVAILABLE starting a company today can acquire are digitized to become faster, more AND ON-DEMAND all the necessary tools and developed relevant and more cost-efficient. For an increasing number of business practices – including a entrepreneurs, starting a global complete e-store, office environment, USERS – PARTICIPATING AND business today requires little more back-office support and more – at a ACTIVE than an idea, a user base and a fraction of the cost compared with just a We are moving away from a world network of collaborators. Funding few years ago. This radically tears down defined by hierarchy and linear thinking can be crowd sourced. Factories can barriers for entrepreneurship, opening into a paradigm centered on individual be rented. And specialized skills, work possibilities for people to engage in context with a culture defined by spaces and digital infrastructures new economic activities in much more collaboration and participation. At the can be acquired or downsized on flexible settings. The effect is that heart of any organization are its users demand. Many previous barriers to many more ideas will be tested, with a – the students, patients, customers market entry and global scale will be corresponding rise in overall levels of and citizens whose engagement and lowered or eliminated as a result. innovation. Accelerating technology contributions are vital in maximizing developments in the core of ICT, the the network’s value. As users become PLATFORMS – ECONOMICS rise of data as a raw material and the actively involved contributors of powerful enabling capabilities of ICT AND SCALE knowledge and enthusiasm to the together constitute an exponential Most business offerings today networks in which they participate, change in new forms of value creation. consist of a product or service. A products and services will improve As a result, advanced ICT capabilities technology platform, by contrast, their relevance, benefit from new represent a fundamentally new starting makes it possible to provide a development insights and result in co- point for technological progress in function, a network of relationships created experiences. As a result, users almost every area. New applications or a completely new marketplace are an increasingly vital asset for any of emerging technologies such as for one’s own products and services, public or private organization. 3D printing, robotics, biotechnology and those of others. By opening and smart materials will not only be up entire business processes to created at an accelerating pace, but THINGS – CONNECTED AND other stakeholders, the platform will see ICT rapidly integrated into their INTELLIGENT serves as the technological base technological cores. A product, once designed, is no longer upon which customers, developers, limited to performing its original businesses and their partners can function. We are entering a reality in build added value through increased Fundamental Enablers in which billions of physical objects are participation. Wherever a platform the Networked Society embedded with online intelligence and emerges as a business-critical The Networked Society represents layer upon layer of digital interactivity. infrastructure for a wide range of a fundamental paradigm shift for These connections, whether between other businesses, it not only reduces people, business and society. This wearable devices, cars and home- transaction costs for various business shift is continuously discovering new automation systems, or among and peer-to-peer functions to nearly resources, unleashing new forms of networked urban infrastructure and zero, but becomes an economic value and transforming the most basic sensor-equipped industrial machinery, force with a logic of its own. logics of life and business. However, will serve as enablers for more dynamic in tomorrow’s networked economy, products enhanced with a wealth of the key enablers of growth and new services that improve product innovation come not from physical performance and achieve new levels of

page_64 page_65 satellite updates

SAMENA TRENDS _ APRIL_2015

New bands has never been more promising with ARABSAT projects

Arabsat new chapter is to march into Upon completion of the ground its new bands resources, Joining its facilities, CETel & MICT will anchor on a customers in developing networks to space segment with unlimited business operate on its available Ku Appendix- possibilities in the extended C-band. 30B on Arabsat-5A & Extended C-band on Arabsat-5C to ultimately utilize both bands completely. Presenting major opportunities to establish new networks and the expansion of existing networks onboard its fleet.

In an effort to make a vision into reality Arabsat joined forces with its customers in a substantial involvement in an extended C-band backbone network to boost the development of services offered to a high standard and become robust providers in the African continent.

Expanding further into extended C-band Arabsat strategic partnerships with CETel & MICT to broaden the extent of its reach into the African continent with new ground facilities supported by Arabsat in line with its vision in the development of business to offer comprehensive GSM backhauling and broadband services on an exceedingly stable network especially in rural and remote regions.

page_66 satellite updates

SAMENA TRENDS _ APRILAPRIL_2015_2015

SATELLITE NEWS

Egyptian Space Authority: infrared spectrum in panchromatic and multispectral modes. EgyptSat 2 Satellite is under Full Control UAE Launches New Space Egyptian EgyptSat 2 satellite, operating in orbit, is under the full control of the Center in Preparation of Egyptian experts, head of country’s Mission To Mars National Authority for Remote Sensing The UAE’s VP, PM, ruler of Dubai, Sheikh and Space Sciences (NARSS) asserted to Mohammed bin Rashid Al Maktoum, Sputnik Saturday. The Russian Izvestiya has issued a decree to establish a space newspaper reported, citing a source in center to assist the country’s mission to the RSC Energia (Russian rocket and Mars, state news agency WAM reported. space corporation), that EgyptSat 2 on The new Mohammed bin Rashid Space April 14 did not respond to commands center will conduct outer space research Satellite from the Earth and control over the and support the UAE’s drive to advance satellite was lost. Human factor was cited in the sector, a statement said. It will also Updates as the possible cause behind the loss of help build the country’s capabilities in the satellite. “What was reported about outer space exploration. The center will is in fact a regular technical failure. It oversee all preparations for the UAE’s happens every now and then to all the Mars probe, which the country plans to satellites. The problem will be fixed in carry out by 2021. the next few hours,” Medhat Mokhtar said. He explained that “any failure in It will also work on other technologically control of satellite begins with absence advanced projects assigned by the of response to commands from Earth,” authorities. The Emirates Institution adding that “the low battery could be the for Advanced Science and Technology problem, but it will be fixed and control (EIAST) will be affiliated to the new will be fully restored.” center. Last year, the UAE became the first Arab country to launch an outer space EgyptSat 2, Egypt’s second remote sensing exploration mission when it announced Earth observation satellite constructed by a planned unmanned probe to the red RSC Energia and NARSS, was launched planet in 2021. The probe will take nine- from the Baikonur Cosmodrome on April months to complete the journey, which 16, 2014. In January 2015, the control spans more than 60 million kilometers. over the satellite was handed over to the The mission, led by Emiratis, will make Egyptian specialists. The satellite takes the UAE one of nine countries with space pictures of the planet in the visible and programs to explore Mars, and will also

page_67 satellite updates

SAMENA TRENDS _ APRIL_2015 coincide with the 50th anniversary of to research, develop, construct and test Dukhovnitsky, chief of Russia’s Federal the country’s formation. The Emirates new satellite components at the ASIF, Communications Agency. has taken a number of steps to prepare both agreed the partnership would for its first outer space mission. Soon help expand ’s presence in the after the launch of the Mars Mission, satellite field. The aims of the facility ARABSAT Celebrates it launched the UAE Space Agency to are two-fold, according to Boitson, Newtec’s 30th supervise the mission and coordinate the first being to allow engineering other space projects. The agency has students to gain a hands-on, industry- Anniversary w/ since inked a number of research based education. Ambassador, Diplomats, partnerships with other groups, Business + Industry including NASA, to build its expertise. Globecomm Orders New UAE investments in space technologies Delegates currently exceed Dhs20 billion, and the Earth Station, Antenna ARABSAT, satellite operator and Mars project will establish the sector Upgrades from ASC services provider, has taken part in as a key component of the national a networking dinner organized to economy in the future, officials said. Signal celebrate the 30th anniversary of its Sheikh Mohammed recently launched partner Newtec, a specialist in satellite a Twitter campaign for residents to Globecomm has signed a contract communications system design and find an Arabic name for the country’s with ASC Signal for a new Earth integration. Held at the residence of mission to Mars. station at the company’s Laurel, Md. the Ambassador of Belgium, in Riyadh, location, along with a Next Generation Saudi Arabia, the event was attended Magellan Aerospace Controller (NGC) upgrade for a by a number of diplomatic, business 5.6-meter antenna. The Earth station and industry delegates from Belgium Exec Talks New Satellite will feature a new NGC-equipped, 9.4 and Saudi Arabia. It was organized Facility, University meter, Ku-band antenna system with to celebrate the 30th anniversary of full environmental controls. Newtec, which has been a partner of Partnership ARABSAT for around 10 years. Newtec’s Canadian aerospace company Globecomm also selected several CEO Serge Van Herck and COO Sander Magellan Aerospace recently unveiled optional features in the NGC, such as Boom were among guests, along with its new Advanced Satellite Integration the built-in spectrum analyzer, in order the company’s CTO and co-founder Facility (ASIF) in partnership with to have a better control system within Dirk Breynaert, who was inducted into the University of that a significantly reduced footprint. the Society of Satellite Professional the company believes will foster a With this contract, ASC Signal will International (SSPI) 2015 Hall of Fame productive relationship between have provided more than 20 gateway earlier this year. academia and industry. The Winnipeg- antennas for the company. based 6,000-square-foot facility aims Khalid Balkheyour, President and CEO to expand not only Magellan’s own of Arabsat, said: “Arabsat is pleased to satellite operations, but also the RSCC’s Express AM7 take part in this event as Newtec is one presence of the nearby university in Satellite Reaches GEO of our most valuable strategic partners. the satellite-engineering field. Russian Satellite Communications Our collaboration began 10 years ago Company (RSCC) has confirmed that its with MENOS’s project with the Arab To date, Magellan has designed and Express AM7 satellite launched March States Broadcasting Union (ASBU) and launched three satellites, including 19 aboard a Proton rocket reached since then Newtec’s knowledge and Scisat, a SmallSat the Canadian Geostationary Earth Orbit (GEO) on experience have been adding value to Space Agency (CSA) launched more March 25. The company expects the ARABSAT services. We wish them the than 10 years ago to study ozone satellite to begin operations in May very best of success for many years depletion in the atmosphere. The 2015. to come.” The networking dinner is company also developed Cassiope, the latest event to celebrate Newtec’s which was launched just over a year Built by Airbus Defence and Space, anniversary which coincides with ago to conduct space environment the Express AM7 satellite carries 80 the company achieving 20 percent research as well as advanced transponders for services in C, Ku and growth and revealing new market telecommunications technology L bands, and eight antenna systems, ambitions, including High Throughput demonstrations. Through those two of which are steerable. Multi-zone Satellite (HTS), oil and gas and cellular previous projects, Magellan has often fixed antennas cover Russia, Western backhaul. employed engineers and technicians Europe and Asia, and steerable at the university to help the company antennas can reach a wide sector. The Serge Van Herck added, “The Middle find a better way of doing things. satellite can also redistribute radio East market, in general, and more “We had a long relationship with the frequency capacity of the onboard specifically the Saudi Kingdom, is a University of Manitoba and previously retransmission complex betwixt and large potential growth market for did a number of study contracts throughout coverage areas. “We at Newtec and we enjoy the relationships with them on various materials or Rossviaz have followed the satellite’s we have here. We are honored to different types of research studies. We maneuvers with particular attention. celebrate our anniversary at the both wanted to have a more formal The successful launch and subsequent Belgian Embassy with partners who arrangement in place,” Don Boitson, commissioning of the satellite will are instrumental to our success.” vice president and general manager of make it possible for our subordinate Magellan Aerospace, told Via Satellite. entity to enhance operational efficiency and make a wider choice of SES 15 Satellite to Carry When the opportunity arose to come services available to users,” said Oleg Raytheon WAAS Hosted Payload

page_68 satellite updates

SAMENA TRENDS _ APRIL_2015

Following a $103 million contract from aboard a Proton rocket, has initiated the U.S. Federal Aviation Administration service from the 53 degrees east The SLM-5650A modem supports (FAA), Raytheon Integrated Defense orbital slot. Built by ISS Reshetnev data rates from 8 kbps to 155 Mbps Systems has awarded a 14-year with support from the Radio and symbol rates from 32 ksps to 64 contract to SES Government Solutions Research Institute of Russia and MDA Msps. The device complies with MIL- (SES GS) to host a payload on the Corporation of Canada, the satellite STD-188-165A, modem types one, upcoming SES 15 satellite. Raytheon’s used electric propulsion to reach its two, four, five and six for applications FAA contract funds a Wide Area location in Geostationary Earth Orbit on Defense Satellite Communications Augmentation Systems (WAAS) hosted (GEO). With the new satellite in place, System (DSCS), Wideband Global payload, which enhances the accuracy RSCC plans to relocate the Express Satcom (WGS) and commercial of Global Positioning System (GPS) AM22 satellite that currently operates satellites. from 100 meters to roughly 2 meters from 53 degrees east over to 80 for improved air navigation. In the degrees east. Comtech’s modem provides standard same contract, the FAA has also tasked MIL-STD-188-114 (EIA-530 / RS-422) Raytheon with developing two ground Express AM6 carries 72 transponders in and EIA-613 (HSSI) serial interfaces, uplink stations to support the WAAS C, Ku, Ka and L bands for coverage over can be optionally configured for G.703 system within U.S. airspace. Russia, Europe the Middle East, Africa and Low Voltage Differential Signaling and Asia. The satellite fits in Russia’s (LVDS) serial interfaces, and can also Raytheon’s contract with SES GS Federal Target Program, “Development be optionally equipped with a 4-port includes the manufacture of the of TV/Radio Broadcasting in the 10/100/1000 Base-T Ethernet network hosted payload, launch on the all- Russian Federation in 2009 to 2015,” processor module. The modem also electric SES 15 satellite, and 11 years of as part of the framework of Russia’s has available an optional AES-256 on-orbit operations. The company has federal space program. “Express AM6 TRANSEC module that is compliant options to extend the contract on an has started operation according to the with the FIPS-140-2 NIST standard. annual basis. Launching in 2017 to 129 schedule and experts’ forecasts. The degrees west, the satellite has a life Russian constellation development expectancy of 15 years. SES selected not only enhance the reliability of Brazil’s Visiona Boeing to build the satellite on the the satellite system, but also helps to Boeing 702SP bus, and Arianespace to protect the orbital slots,” said Oleg Tecnologia Espacial launch it aboard an Ariane 5 rocket. Dukhovnitsky, head of the Russian About Halfway to Self- Federal Communications Agency. Sufficient Satellite Telenor Integrates KVH Introduces Capability MarCom with Maritime Visiona Tecnologia Espacial, a TracVision TV8 Antenna joint venture between Telebras Communications Partner KVH Industries has released a new Telenor Maritime Radio is integrating Telecomunicações Brasileiras and antenna system for satellite TV out its MarCom commercial maritime Embraer Defense and Security, at sea. The fully stabilized 81-cm (32- communications business unit with estimates it is almost halfway to the inch) diameter TracVision TV8 antenna Maritime Communications Partner point where it can build a satellite system enables for (MCP). Telenor ASA fully owns MCP, completely in-house. Established in maritime customers such as yacht which has focused primarily on global 2012, the company’s goal is to create owners, commercial fishing vessels, coverage for cruise, ferry and offshore a domestic satellite manufacturing tankers and others. verticals. MarCom has focused on capability in Brazil. “Today we measure the Nordic market, providing satellite around 35 to 50 percent the capability Compatible with most Ku-band communications to ferries and other of Brazil to build out a complete services, the system supports DirecTV, vessels. The transfer, which is internal satellite: platform plus the payloads. , Dish HD, and Bell TV to Telenor, enables MCP to expand and We have parts that today are off the in North America, and TrueVisions, bolster its presence in Europe and the shelf, which we could add in this 35 , and Sky TV in the Asia-Pacific. United States, as well as look to tap to 50 percent, but we still have a gap TracVision TV8 uses Digital Video into Asia. in the capability to do that,” Eduardo Broadcasting-Second Generation Bonini, president of Visiona told Via Satellite (DVB-S2) technology, and “We are developing our technology Satellite. He estimated that Visiona’s includes features such as an IP portfolio to address a bigger ability to compete internationally with AutoSwitch option for multiple receiver market in the maritime industry that small satellites is roughly two to three installations and high-performance consumes ever more bandwidth. We years away. tracking to maintain picture quality on are integrating satellite and mobile heavy seas. to ensure the best possible customer Visiona’s primary focus today is the experiences. Additionally, we will Geostationary Defense and Strategic be able to increase the efficiency of, US Government Awards Communications Satellite (SGDC). and develop the whole value chain Slated for launch in September resulting in cost efficient solutions,” Comtech EF Data $1.3 2016 aboard an Ariane 5 rocket, the said MCPs CEO Frode Støldal. Million Contract satellite has a payload of 50 Ka-band Comtech Telecommunications’ transponders for Brazil’s Ministry subsidiary Comtech EF Data received of Telecommunications, and seven RSCC’s Express AM6 an order from the U.S. government X-band transponders for the Ministry Satellite Goes Live worth $1.3 million for satellite of Defense. Visiona is leading the Russian Satellite Communications modems. The contract calls specifically integration of the system, including Company’s (RSCC’s) Express AM6 for the SLM-5650A satellite modem the satellite, its control segment, and satellite, launched October 21, 2014 for use in a government network. the user segment, which is composed

page_69 satellite updates

SAMENA TRENDS _ APRIL_2015 of the gateway stations and end- manage their UltraBurst service based down dramatically compared to user terminals. Thales Alenia Space on the needs of owners and guests. current O3b pricing in order to address is providing the control segment They can implement bandwidth bursts CAPEX considerations,” said Jose Del and is a key partner on the SGDC when needed, while maintaining the Rosario, research director for NSR program. The satellite is based on the same levels for operational tasks and and report author. “More importantly, company’s Spacebus 4000 platform. crew welfare services. UltraBurst is the although backhaul is a large and Communications and Power Industries first of several high-speed connectivity growing market, other applications (CPI) Satcom Division is supplying options MTN has planned for the will have to be targeted by LEO-HTS 500-watt continuous wave Ka-band near future, including the company’s systems as the market opportunity Traveling Wave Tube Amplifiers HTS Multi-Spot Beam (MTN HTMS) is relatively limited given that all (TWTAs) for telemetry, tracking and capacity, beginning in 2016. systems will target this market space. control. Incumbents will surely respond to the LEO-HTS threat in terms of lowering Thales Alenia Space has an agreement Turkey Starts Building their own pricing such that the LEO- with the Agência Espacial Brasileira Turksat 6A Satellite HTS impact until 2024 will likely be (AEB), the Brazilian space agency, to Turkey’s state-run Anadolu Agency limited.” facilitate the transfer of technology to reports the country has started Brazil. While Visiona helped negotiate manufacturing the Turksat 6 satellite the terms of the program, the joint for Turksat. The five-year project is Satellite Builds a Future In 2003 the World Bank issued an RFP venture had no participation in its expected to cost roughly $205 million, to create a communications network implementation. Still, Bonini said the with a launch in 2020. The Scientific with an ambitious mission: to begin the level of collaboration between the two and Technological Research Council of long process to reunite a nation whose companies has impressed him. Turkey (TUBITAK) is leading the TurkSat history had left it divided, violent and 6A project with the support of Turkish poor. Few nations in our time need Aerospace Industries (TAI), Military it more than this one. Its people and Orbital ATK Delivers Electronic Industries (ASELSAN) and territory have endured conquest by CTech. The satellite has a design life DirecTV Satellite Four the Greeks, Arabs, Mongols, Turks, of 15 years and will cover Europe, Asia British and Soviets. Following 2001 Months Early and all of Turkey. Orbital ATK has transported the Sky attacks in the USA, the Americans Mexico 1 (SKYM 1) satellite for DirecTV also arrived. The feudalistic presence to Arianespace’s Kourou, French NSR: Satellite Backhaul of the Taliban has left the country Guiana launch site after completing with an ongoing war and struggle the manufacturing in 20 months — to Reach $5.3 Billion by between the central government and four months ahead of schedule. The 2024 ethnic groups. To many, not much satellite, Orbital ATK’s first for DirecTV, Northern Sky Research (NSR) projects has changed. But look closer. If we will undergo pre-launch preparations revenues from wireless backhaul were to ask which of three nations, ahead of a late May 2015 launch over satellite will climb from $1.7 Afghanistan, Pakistan and Iran, were aboard an Ariane 5 rocket. billion in 2014 to $5.3 billion by 2024. the first to implement 3G and offered The research firm’s recently issued the lowest telecommunications costs, SKYM 1 is based on the GEOStar 2 “Wireless Backhaul via Satellite, most would not choose the right platform, and is built for Direct-to- 9th Edition” report shows a steady answer. Afghanistan. Home (DTH) broadcast services to increase in the prominence of High Mexico, Central America and the Throughput Satellite (HTS) systems on A bid for a government Caribbean. The satellite has a launch this particular market. communications network was put mass of 3,000-kg and a design life of out to provide services to ministries 15 years. NSR notes that traditional Fixed and offices in Kabul. The winning bid Satellite Service (FSS) capacity in went to Globecomm, an American C band and Ku band has been the company whose reputation for MTN Launches predominant solution for backhaul installing satellite networks in bad ‘UltraBurst’ Service and trunking in land, with growing neighborhoods was well-known. business in maritime and aviation. Using C-band satellite, optical fiber for Targeted HTS However, the firm notes “a clear and microwave links, the company Connectivity migration” by fixed land towers connected 42 ministries and offices MTN Communications has released backhaul and trunking markets in Kabul and 34 provincial capitals. “MTN UltraBurst,” an on-demand, toward Geostationary (GEO) HTS. For the first time, central government consumption based Ku-band High Nascent Non-Geostationary (NGSO) had reliable telephone and email Throughput Satellite (HTS) service for HTS players, such as O3b Networks, communications with the provinces. yachting customers during the 2015 are making inroads into backhaul, Provincial leaders had a chance to Mediterranean season. The service trunking and mobility markets as well. influence national policy without the allows captains and Electronic Technical With several Low Earth Orbit (LEO) risky journey to Kabul. Globecomm Officers (ETOs) using the MTN Maestro HTS systems currently in the planning said it learned that the Ministry of mobile app — MTN Conductor — to stages, NSR expects they could have Communications had separately access higher connectivity speeds a significant impact on total available purchased switches for mobile service when desired. UltraBurst works with capacity if one or two such programs from China. The switches had become existing antenna hardware and can do launch, potentially leading to price the core of “telecom islands” – places allocate bandwidth for specific users pressure on all offerings. “Non-GEO where it was possible to make a local and devices on their networks. Yacht HTS equipment pricing, specifically mobile phone call but with no access captains or ETOs can customize or antenna systems, will have to come to other places. Globecomm changed

page_70 satellite updates

SAMENA TRENDS _ APRIL_2015 that. “What we originally planned as a NASA and the United States Geological reliable connection to transmit the private network,” says Globecomm’s Survey (USGS) have started working news in real time, whether in an urban Paul Johnson, “rapidly became a on the Landsat 9 Earth observation setting or an extreme remote location,” public network. We effectively became satellite, with a launch planned for said David Myers, president & CEO of the backbone for a public telephone 2023. NASA’s Goddard Space Flight DataPath. “Our new combined cellular system, connected by C-band satellite Center in Greenbelt, Md. is leading the and satellite platform will ensure that to other cities over the Government Landsat 9 flight segment. In addition the remote broadcast team can get Communications Network and, to building the satellite, the space the best HD connection available, no through our international gateway, to agency is also responsible for its matter where the action takes them.” the rest of the world.” The government launch and the initial check-out and network was functioning by the commissioning. USGS will operate historic 2004 election. Other projects the Landsat 9 satellite and handling Norsat Awarded US followed, each depending on a processing, archiving, and the free Defense Contract satellite backbone to provide national distribution of mission data. coverage. A District Communications for Portable Satellite Network connected a hub in Kabul to NASA Goddard is also building a Terminals police, fire and other critical services in Thermal Infrared Sensor (TIRS) as Norsat International has received the country’s 337 legislative districts. a “free-flyer” satellite designed to an purchasing order from the U.S. Globecomm installed digital telephone closely match the TIRS instrument Defense Media Activity (DMA) for its systems at National Army bases and on Landsat 8. The Landsat 8 TIRS GLOBETrekkerTM 2.0 portable satellite connected them by satellite. A custom- instrument had a three-year lifespan, terminals, along with its 50W Atom designed satellite truck enabled whereas the upcoming free flyer is series Block Upconverters (BUCs) to mobile spectrum monitoring. With so being designed for five years to ensure enable satellite uplink of live high much of the nation’s communications mission continuity. The free-flyer is definition or standard definition video depending on satellite, the truck gave scheduled to launch in 2019. “With from the field, as well as data transfer the Ministry the ability to enforce a launch in 2023, Landsat 9 would and email access. spectrum regulations, issue licenses propel the program past 50 years of and shut down illegal operators. collecting global land cover data,” The DMA is the U.S. Department of said Jeffrey Masek, Landsat 9 project Defense’s direct line of communication Globecomm’s executives are proudest scientist at NASA Goddard. for news and information to its forces of the fact that each project created worldwide. The agency presents news, assets that were transferred to Afghan DataPath, Vislink Partner information and entertainment on a Telecom. The goal is to make the variety of media platforms, including Ministry a true regulatory body while to Provide Cellular radio, television, Internet, print media Afghan Tel becomes the operator. It is and emerging media technologies. working. The final outcome is far from Bonding Technology for certain in Afghanistan. But the nation’s Broadcasting Norsat’s GLOBETrekker 2.0 is a ability to attract outside investment DataPath, a provider of remote field lightweight, fully-motorized, portable and to keep raising the quality of communications solutions to the 1 or 1.2 meter aperture, auto acquire Afghani communications, gives hope aerospace, government, broadcast, VSAT terminal that was built to to a day when Afghan sees a better and infrastructure markets, announced military rugged specifications and world. #bettersatelliteworld. a new partnership with Vislink, a is MIL-STD-810G and is Eutelsat service provider in the collection, certified. The GLOBETrekker 2.0 has Azercosmos Selected for transmission, and management of high an integrated Norsat LNB, Norsat quality video and data from the field 50W ATOM BUC, a modem specified Satellite Services at Baku to the point of usage. This partnership by the customer, an MPEG2/4SD/HD will allow DataPath to offer enhanced Encoder and a DVBS/S-2 modulator to 2015 Games multimodal solutions, combining provide superior portability. Norsat’s The Baku 2015 European Games the best of both satellite and cellular flagship software, LinkControl 7, is also has appointed Azercosmos as an communications technology to the integrated into the GLOBETrekker 2.0 official supporter and supplier of broadcast market. terminal. The GLOBETrekker terminals broadcast telecommunication satellite are expected to ship in Q3 of 2015 with services. The company is tasked By combining DataPath’s quick global training and support services with transmitting the games to connect satellite and portable following the terminal deliveries. billions of television viewers globally. vehicle mounted terminals — the Azercosmos will supply a Satellite CCT 90/120/200 and DA120 — with Newsgathering (SNG) truck to relay Vislink’s cellular bonding capabilities, Globalstar Unveils New the feed from Mingachevir, Azerbaijan broadcast operators will have an end- to the international broadcasting Satcom Antenna for to-end solution to ensure connectivity. center in Baku, the nation’s capital. The This new broadcast platform will give Experimental Aviation inaugural event takes place from June newsgatherers the ability to choose 12 to June 28, and features sports such Market the most effective transmission as wrestling, volleyball and gymnastics. Globalstar announced its new aviation path for in-field delivery back to the antenna is now available for use with broadcast facility depending on their Experimental Category Aircraft (STC NASA, USGS Start Work current situation or environment. “By for Part 23 aircraft approval pending), on Landsat 9 and Free- offering cellular bonding solutions offering pilots fast and affordable in addition to our portable satellite satellite communication. Paired Flyer Satellite terminals, broadcasters will have a with the Globalstar Satellite Phone

page_71 samena COUNCIL activity

SAMENA TRENDS _ APRIL_2015

(GSP-1700) or the Globalstar Sat-Fi with these communications services.” the Kaber deployer for deployment satellite hotspot, the new aviation into orbit. With a mission of antenna allows for voice and data five years, FeatherCraft will provide communication while in-flight and Thuraya Certifies GRC a low-risk, cost-effective satellite completely independent of cellular Arion Solution to Provide platform that can accommodate coverage. Currently, the GSP-1700 payloads with requirements of up to is free with select airtime plans. Also Commercial TacSat 45 kilograms and 50 watts. SST-US Thuraya Telecommunications reaching beyond cellular, the SPOT will manufacture, integrate, and test Company and Global RadioData Gen3 and SPOT Trace offer affordable, FeatherCraft at its Englewood, Colo. Communications (GRC) announced real-time GPS tracking. Pilots can track facility. “The Kaber launch service was a the successful certification of GRC’s their route down to every 2.5 minutes clear next step for NanoRacks to meet Arion solution. End-users can now use and give individuals on the ground our company’s constantly growing limitless Beyond Line of Sight (BLOS) the ability to monitor departures and customer needs and desires to deploy broadcast range for their tactical arrivals. Additionally, the SPOT Gen3 larger satellites from the International multi-band, encrypted radios over features location-based messaging Space Station,” said Jeff Manber, chief Thuraya’s broadband service. and emergency notification executive officer of NanoRacks. “Kaber technology. continues to promote ISS utilization, The Arion solution is certified for use on and the FeatherCraft platform expands the Thuraya network using the Thuraya the capability of payloads that can be IP and IP+ broadband terminals. It Intelsat, BT and ITC Global deployed from ISS — furthering the allows for the transmission of real-time ISS’s dual role as a commercial nexus.” Donate Emergency encrypted communications directly Satellite Solutions for to an operations room or another network anywhere in the world, be it Sevis, Eutelsat Partner to Vanuatu land or sea, across Thuraya’s coverage As communities in the South Pacific area. The solution enables operators Deliver 3G/LTE Backhaul Islands of Vanuatu grapple with major to remotely control its features, devastation and severe power and over Ka-Sat minimizing the need to visit equipment Sevis Systems, a developer of communications outages left in the in hostile environments. Its capability backhaul optimization technology, wake of Cyclone Pam, Intelsat, BT of passing encrypted voice and has successfully validated its platform Group, and ITC Global have donated situational awareness data through for backhaul services on Eutelsat satellite capacity, equipment and unencrypted radios, allows it to be left Communications’ Ka-Sat satellite. The manpower to help restore critical unattended in the most strategically new solution offers a more affordable communication networks across advantageous locations. “Deployed and optimized satellite backhaul Vanuatu. Providing vital broadband teams need to stay in touch with their service to specialized satellite connectivity to humanitarian and operations room regardless of where service providers delivering end-to- disaster relief organizations working they are. This key customer segment end backhaul bandwidth to Mobile on-site, including NetHope, BT is now has access to encrypted TacSat Network Operators (MNOs). Sevis and using capacity on Intelsat 18 located capability via this solution from GRC, Eutelsat are now offering the solution at 180 degrees east, linking via the which is a key strategic requirement across Ka-Sat’s entire footprint of IntelsatOne terrestrial network at for them.” said Randy Roberts, chief Europe, North Africa and the Middle Intelsat’s Riverside, Calif. teleport. innovation officer at Thuraya. “The East. Satellite service provider ITC Global Arion solution is available through delivered technical and engineering our extensive distribution network of These new services can deliver 3G support to help restore connectivity service partners around the world.” and LTE to remote or rural locations at designated sites in Vanuatu. BT without access to terrestrial backhaul. has also established a separate 24/7 Ka-Sat’s ability to provide backhaul Emergency Response Team (ERT) Surrey Satellite US, connectivity between a core network center based in Madley that will and the access infrastructure at a solely support the relief efforts of the Aerojet Rocketdyne, remote site is suitable for mobile installations teams that are working NanoRacks Develop operators and Professional Mobile on the ground to restore power and Radio (PMR) for emergency services connectivity to the South Pacific FeatherCraft Satellite and civil defense. The Sevis integrated Islands of Vanuatu. “Anytime there Line solution also allows service providers is destruction of this magnitude, it is Surrey Satellite Technology US (SST- to develop and deliver software- critical that humanitarian and relief US) announced its collaboration with defined backhaul services. organizations are able to access the Aerojet Rocketdyne and NanoRacks on connectivity they need so that they the development of the FeatherCraft Based on Sevis’ scalable 7000-Series can quickly respond and help the platform, a satellite platform optimized hardware platform designed for IP high communities impacted by the event,” for deployment from the International throughput backhaul environments, said Terry Bleakley, regional vice Space Station (ISS). The 100-kilogram, Eutelsat’s partners and users can president for Asia at Intelsat. “Working SST-US-designed platform is intended now leverage Sevis’ optimization closely with BT, our satellite solutions to exploit the full capabilities of technology. In conjunction with will help support the restoration and ISS cargo resupply vessels and the Eutelsat’s Ka-Sat high throughput relief efforts happening on behalf NanoRacks Kaber deployment system network, the solution is designed to of the citizens and communities in aboard the ISS. Aerojet Rocketdyne’s improve Return On Investment (ROI) Vanuatu. Our thoughts are with those electronic propulsion system permits savings for satellite service providers impacted by Cyclone Pam, and we are handling of FeatherCraft inside the ISS, and MNOs conducting 3G backhaul, proud to be able to respond quickly meaning astronauts can position it on while establishing a seamless migration path to LTE backhaul, traffic offload and overflow.

page_72 samena COUNCIL activity

SAMENA TRENDS _ APRIL_2015

page_73 #304, Alfa Building, Knowledge Village, PO. Box: 502544, Dubai, UAE. Tel: +971-4-364-2700 | Fax: +971-4-4369-7513

Follow Us: