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November Issue of Total Telecom Plus

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November Issue of Total Telecom Plus BUSINESS ANALYSIS FOR TELECOMS ProFESSIONALS November 2010 LEADER CONTENTS NEWS IN BRIEF MORE FOR LESS 3 Timeline A roundup of some of the As operators endeavour to squeeze more out of their existing major stories reported in our daily news service, networks, we look at transforming technologies and markets www.totaltele.com. CONTENT STRATEGIES elecoms operators share a (DSM) techniques that enable telcos common problem: end- to provide high-bandwidth services 6 Smartphone OS Tusers are increasingly over their copper networks. AT&T competition demanding. As customers call for was arguably the most vocal backer Google and Apple are more capacity and higher speeds, of DSM in Paris, having deployed making inroads in the operators are looking for new ways the technology as long ago as 2004 smartphone OS market. A to get the most out of their existing to support its IPTV rollout. fierce battle now looms in the face of rocketing networks and to keep capex down iDate’s figures show US FTTH/B Mary Lennighan growth and consolidation. Editor for new rollouts. And these chal- household penetration at over 7% Total Telecom lenges took centre stage at and growing, backing up the asser- NETWORK STRATEGIES Broadband World Forum (BBWF) tion by China’s ZTE that telcos will 10 Managed services in Paris late last month. continue to stretch the life of their China’s leading vendors Fibre access networks will give copper alongside rolling out fibre Huawei and ZTE are users significantly greater band- for some time to come. ZTE and making strong headway width to their homes, but new domestic rival Huawei feature in our into providing managed figures from iDate presented in analysis on p.10, which charts their services to operators. Paris show that operators are still rise in global managed IT services. TECHNOLOGY TRENDS dragging their heels, especially in Advances in fixed networks will Western Europe. Two of the conti- also provide much-needed backhaul 14 Data centre for mobile data services. Europe’s transformation Telcos will continue MNOs used the BBWF stage to In part two of our key express their shared opinion that briefing on data centres, to stretch the life of LTE simply will not be enough to Roy Rubenstein looks at standards transforming solve the mobile capacity crunch. data centre networking. copper networks Small cells, such as picocells and femtocells, will be key, they claim. BUSINESS AND FINANCE nent’s biggest economies, Germany However, the WiFi offload option 16 M&A activity and the UK, failed to make it into brings with it another set of chal- Private equity companies iDate’s ranking, which lists coun- lenges, most notably a lack of are circling as some telcos tries in which penetration of control over the user experience. streamline operations; fibre-to-the-home or building is Developments in mobile operat- others are buying into above 1% of households. ing systems have enriched that user rising service segments. Deutsche Telekom CTO Olivier experience. But our feature on p.6 STATISTICS Baujard illustrated the quandary for shows that smartphone OS makers operators. On the positive side, face an uncertain future as calls for 17 Prime numbers end-users are still willing to spend, consolidation grow. Consolidation Developing economies’ he said. However, the “fibre capex is one driver behind renewed M&A share of global wireless connections, VoIP growth wall…is a real wall”. activity in telecoms, and on p.16 we and wireless backhaul. BBWF included much talk of round up some of the big recent dynamic spectrum management deals and likely ones ahead. n Insurance Financial Services Communications Public Sector Insight = Opportunity PBINSIGHT.EU/UK > All organisations need insight at all levels, with their customers and citizens, in their markets and communities. Organisations aspire to acquire new customers, serve existing customers and uncover new growth opportunities— whilst maximising effi ciency, minimising costs and improving customer satisfaction. Learn more about Pitney Bowes Business Insight solutions, software and services and see how we can help you to acquire serve and grow your customer and citizen relationships. Solutions for Customer Intelligence, Communications and Care. Every connection is a new opportunity™ TIMELINE Insurance Financial Services Communications Public Sector A roundup of the major stories in telecoms in the past month, as reported in our daily news service, www.totaltele.com BUSINESS value added tax on triple-play will still be available from 3, Mobile launch in South Africa bundles of TV, broadband and Telekom Austria and Orange. South African fixed-line operator Etisalat moves for Zain telephony. Operators will now be Telkom launched mobile United Arab Emirates operator required to pay VAT of 19.6% on TI raises stake in Argentina services to become the country’s Etisalat entered into an full triple-play service revenues, Telecom Italia increased its stake fourth mobile operator, joining agreement to buy 51% of Kuwait compared to the current rate of in Sofora Telecommunications, Vodacom, MTN and Cell C. mobile operator Zain, paving 5.5% on the TV service alone. the company that controls the way for one of the biggest Telecom Argentina, to 58% from India demands Vodafone tax corporate transactions of recent TerreStar files for Chapter 11 50%. It follows a long battle with The Indian government has times in the Middle East. Mobile satellite services provider the regulator over the Italian told Vodafone Essar to pay INR TerreStar Networks has filed operator’s share in Sofora. 112.1 billion (E1.8 billion) in Qualcomm axes TV service for Chapter 11 bankruptcy taxes within a month for the Qualcomm confirmed it will protection in the US. Jajah opens Facebook calling acquisition of Hutchison’s mobile shut down its FLO TV mobile Telefonica company Jajah venture in 2007. broadcast service next spring, Nitel sale approved launched a mobile application but will continue to explore The Nigerian government to enable direct VoIP calls from New MVNO in Spain strategic options for the network approved the US$2.5 billion social networking site Facebook. Spanish TV broadcaster and spectrum. Qualcomm has sale of state-run operator Nitel The application, called Jajah Sogecable has launched MVNO suspended sales of devices that to a consortium led by China Social Call, initially will only be Cuatro Movil on KPN’s network. use the service. Unicom, following an auction available on Blackberry devices. in February. Nitel has fast been NETWORKS 3G launches in India losing share and is now fifth in Verizon faces big payout Insight = Opportunity Tata Teleservices said it will the fixed-line voice market. Verizon Wireless will pay $25 BT must open fibre networks launch 3G mobile services in nine million to the US Treasury and UK regulator Ofcom ruled circles in India on 5 November, DVB-H suffers further setback refund a minimum $52.8 million that BT must give competitive while Bharti Airtel said it will In another blow for DVB-H to about 15 million customers it providers access to its new launch in its 13 circles by year mobile TV services, broadcasts wrongfully charged. Regulator fibre networks, including its end. Vodafone Essar subsequently in Austria will finish at the end of the FCC says the payment to the underground cable ducts and said it will launch 3G in the this year. Streamed 3G services government is the largest ever. telephone poles, so they can first quarter next year. They build their own last mile fibre PBINSIGHT.EU/UK > will follow the 3G launches of Available colocation space in key cities infrastructure. BT, which already state-owned operators BSNL and Average space available provides wholesale access to its MTNL in 2009. 0% 10% 20% 30% 40% 50% 60% 70% fibre broadband offering, will be Amsterdam able to set its own access prices. Hungary next for telecoms tax Chicago Hungary’s parliament passed Frankfurt French network sharing a proposal to tax the telecoms Montreal Nokia Siemens Networks will sector 61 billion forints (E225 New York upgrade and expand French All organisations need insight at all levels, with their customers and citizens, in their markets and communities. million) per year between 2010 Los Angeles mobile operator SFR’s HSPA+ Organisations aspire to acquire new customers, serve existing customers and uncover new growth opportunities— and 2012 to ease budget deficits. San Francisco radio access network, which whilst maximising effi ciency, minimising costs and improving customer satisfaction. But the EU has queried the tax Washington will then be available for use by Learn more about Pitney Bowes Business Insight solutions, software and services and see how we can help you to and could rule it illegal, as it did London subscribers of rival operators acquire serve and grow your customer and citizen relationships. with similar proposals in France — Average Range | Average Orange and Bouygues Telecom. and Spain this year. Source: TeleGeography Solutions for Customer Intelligence, Communications and Care. New data from TeleGeography shows that colocation service providers are struggling to keep up with demand. Despite significant new construction, some Italy broadband pricing probe 41% of sites surveyed by TeleGeography were at least 80% full by mid-2010, up France raises bundling tax from 34% of sites a year earlier. Operators added 1.5 million square feet of new The EC asked regulator Agcom France’s National Assembly colocation space and 124 megawatts of power in the year to mid-2010, but to review the prices that Telecom some key cities are showing less than 25% available space. passed a measure to increase Italia can charge for wholesale Every connection is a new opportunity™ November 2010 www.totaltele.com 3 TIMELINE access to its network. Telecom Next-gen broadband projects KPN names new CEO Italia had planned to raise its Several countries last month Eelco Blok will become KPN’s wholesale broadband prices by announced plans to extend next CEO and chairman when 24% over two years to fund next- high-speed broadband coverage.
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