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news in brief WEATHERING THE STORM 3 Timeline A round-up of some of the Operators everywhere have challenges to overcome, but regu- major stories reported in our daily news service latory regimes are particularly difficult in Asia www.totaltele.com

n typically British fashion, as But there are parallels to be HETNETS we go to press with the summer drawn between Asian markets, as 7 Joined-up Iedition of Total Telecom+ our regional focus (page 10) shows. thinking torrential rain is beating against Telcos in a number of countries are the office windows. The country battling with regulatory regimes Heterogeneous networks faces the threat of severe flooding that make it difficult for them to represent a cost-effective solution to the mobile as the Met Office predicts a month’s make the most of the considerable capacity crunch, but there worth of rain will fall in one day in growth potential that still remains. Mary Lennighan is still a lot to think Editor some places. Meanwhile, incumbent operators about for telcos. Total Telecom It’s a far cry from the blue skies in East Asian markets in particular and brilliant sunshine that greeted find themselves well-placed to capi- regional report us in Singapore a couple of weeks talise on a relatively new cloud 10 Focus on Asia ago as we touched down for services opportunity. indonesian mobile CommunicAsia 2012 and the Asia Asian operators also share many providers face spectrum Communication Awards. of the same issues facing telcos shortage; India’s There was a clear message at worldwide. The need to keep 3G price war; the those events for those of us repre- network costs down is a “global TD-LTE ecosystem senting the overseas press: don’t phenomenon” says PT Indosat’s in China; and the growing treat Asia as a homogenous region, Erry Nugroho. The Indonesian cloud services space. telco has begun sharing towers and The need to keep is in talks with other operators mobile services about network-sharing, he says. 17 M-health debate network costs Heterogeneous networks have opinions differ been touted as a cure-all for mobile on the mobile down is a global operators looking to roll out LTE healthcare opportunity. phenomenon with good coverage in the most cost-efficient way. However, as our sTATISTICS but rather as a series of very differ- story on page 7 shows, there are 19 Prime numbers ent single markets. many potential pitfalls that could voIP/IMS equipment, One one level those differences push costs upwards if operators base station deployments, are obvious. You only have to look don’t get their HetNet strategies lTE devices, Russian at Singapore itself, where most of right. mobile market its smartphone-toting inhabitants Operators are also focusing on developments also have access to fibre-optic the services running over those and environmentally- friendly mobile phones. broadband at home, and compare it planned new networks, although with Thailand, where the state has there is still some debate over which yet to auction 3G spectrum, or areas offer the biggest revenue- India, where a 1.2 billion-plus popu- generating potential. See page 17 lation shares fewer than 14 million for the latest opinions on mobile fixed broadband lines. healthcare services. n

timeline

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

Business from 2013 as new competition Voda eyes TelstraClear unspecified stake in Y2CF Digital in the French mobile market is Telstra confirmed it is holding Media. The firms are working America Movil eyes Austria likely to hit its profit margin. talks with Vodafone NZ over the together to bring location-based Mexico’s America Movil possible sale of its New Zealand service ‘hoppr’ to market. announced a share purchase deal Verizon buys telematics firm business TelstraClear. that will see it raise its stake in Verizon Communications agreed Telefonica sells China stake Telekom Austria to 23% by the to pay $612 million in cash for Moto acquires Psion Telefonica agreed to sell a 4.56% end of the year. The telco also Hughes Telematics. Motorola Solutions said it will stake in China Unicom to the upped its stake in Netherlands- pay £129.3 million for ruggedized latter’s parent for €1.13 billion, based KPN to 24.9% and has South Africa blocks KT deal device maker Psion. reducing its holding to 5.01%. agreed to buy an additional 2.8%. The South African government rejected Telkom SA’s plan to sell Microsoft $1.2bn Yammer buy CGI snaps up Logica ...and EU probes Orange deal a 20% stake to South Korea’s KT Software giant Microsoft has Canadian IT services firm CGI Meanwhile the European Corp for around 268 billion rand agreed a US$1.2 billion deal Group agreed to pay £1.7 billion Commission opened an ($330 million). to acquire business social for European rival Logica. investigation into the planned networking provider Yammer in €1.3 billion takeover of Orange BCE buys data centre firm a move that will boost its cloud DoCoMo taps Tower Austria by Hutchison’s local unit Canadian telco BCE and three services portfolio. NTT DoCoMo plans to increase due to competition concerns. institutional investors agreed to its stake in Tower Records Japan pay C$1.1 billion for data centre MegaFon mothballs IPO and turn the music retailer into a Telefonica Digital revenue opp operator Q9 Networks. Russia’s MegaFon postponed its subsidiary in a bid to capture the Spain’s Telefonica said it expects IPO, scheduled for July, due to synergies between the mobile and its digital services unit Telefonica Hutch back in Israel poor market conditions. It has yet music markets. Digital to contribute €5 billion to Hutchison Telecom agreed to to set a new date for the offering. annual revenues by 2015. pay $125 million for a 75% stake EU parliament rejects ACTA in Scailex, which holds 44.5% of Bharti Softbank investment The European parliament voted EU OKs Voda’s C&W bid Israeli mobile operator Partner Indo-Japanese joint venture against anti-piracy pact the Anti- The European Union cleared Communications. Bharti Softbank acquired an Counterfeiting Trade Agreement. Vodafone’s planned £1.04 billion takeover of Cable & Wireless Mobile subscriptions by technology Globul on the block

Worldwide. Earlier, C&W’s 10,000 n LTE n WCDMA/HSPA Greece’s OTE is reportedly largest shareholder Orbis 9,000 n GSM/EDGE n TD-SCDMA considering selling Bulgarian n CDMA n Other Investment Management also 8,000 unit Globul as part of a plan to backed the deal. 7,000 refinance debt. 6,000 Qtel takes control 5,000 NETWORKS Qatar’s Qtel is seeking regulatory 4,000 approval to increase its stake in 3,000 BSNL contracts ZTE, ALU Kuwaiti operator Wataniya to 2,000 Indian operator BSNL awarded Reported subscribers (million) 100% from 52.5% at present. It 1,000 mobile equipment contracts to also announced plans to spend 0 Alcatel-Lucent and ZTE. The 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 close to $1.5 billion to increase its deals are estimated to be worth Source: Ericsson stake in Iraqi operator Asiacell to Ericsson in June predicted that global mobile traffic will grow 15-fold to 8,000 around $1 billion. 60% from 30%. petabytes per month between 2011 and 2017, while mobile subscriptions will reach 9 billion. GSM/EDGE subscriptions will continue to claim the biggest share until near the end of the forecast period, boosted by the addition of new users in Voda, O2 merge UK networks FT downs dividend emerging markets buying the cheapest available mobile phones and packages. The UK units of Vodafone and France Telecom announced it However, GSM/EDGE subscribers will decline after 2012 due to the migration to Telefonica’s O2 announced a more advanced technologies in developed markets. will reduce its dividend payments network-sharing deal covering

July/August 2012 www.totaltele.com 3 timeline

2G and 3G networks, with a view MasterCard plan to launch a to adding in LTE in future. The mobile payments platform. The PEOPLE 50/50 joint venture will run the first consumer rollout will take network of 18,500 masts. place in Poland this year. Tellabs CEO passes away The industry extends sympathy Mexican deal follows Google sees 10bn mobile subs to the family and friends of Telefonica also announced an Peter Fitzgerald, Google’s UK Tellabs CEO Robert Pullen who agreement to share mobile director, predicted that global passed away in July at the age of infrastructure in Mexico with mobile phone subscriptions will 50. Acting president and CEO local rival Iusacell. grow to 10 billion by 2020, up Daniel Kelly will continue to lead from 5 billion today. the company. Ireland merger talks Meanwhile, Vodafone is Microsoft tablet Surfaces Reliance’s new mobile CEO HUMM CHANGES HIS reportedly in talks with 3 Ireland Software giant Microsoft has Gurdeep Singh, formerly TUNE over plans to merge their mobile moved into mobile hardware, COO at Aircel, was appointed T-Mobile USA announced network infrastructure. unveiling a family of tablets president and CEO of Reliance the departure of CEO Philipp under the brand name Surface. Communications’ wireless Humm just hours before Sprint closes iDEN network The devices will run Windows 8. division. Vodafone snapped him US mobile operator Sprint said it up to head up its newly- will close down its iDEN network, ...and Google follows suit New M&A man at TA reorganised European the one remaining legacy from Google revealed its Nexus 7 Telekom Austria appointed operations. Vodafone Europe, its Nextel acquisition, as soon as tablet, developed with Asustek Roland Haidner as its group previously led by Michel June 2013. The move follows an Computer, that will start shipping director of mergers and Combes, has been split in FCC ruling that allows it to use in mid-July. acquisitions. Haidner, formerly two: Humm takes over as the spectrum for LTE services. CFO of the telco’s Serbian unit chief executive of Vodafone’s Huawei’s US LTE smartphone VIP Mobile, replaces Erich Gnad Northern & Central Europe China Telecom MVNO launch MetroPCS started selling who has retired. business, which includes China Telecom launched its UK Huawei’s Activa 4G for $149, key markets like Germany MVNO under the brand name making it the first US carrier to Yahoo names revenue chief and the UK, while Southern CTExcelbiz and announced it will offer an LTE smartphone from Advertising executive Michael Europe will be under the care replicate the business in France in the Chinese vendor. Barrett was named chief of of Paolo Bertoluzzo, who the second half of next year. revenue for Yahoo. He is takes on the role alongside Google TV expansion responsible for advertising his current position as CEO Femtocells march on Sony will start selling its Google revenue and operations globally. of Vodafone Italy. Humm O2 and Orange in the UK TV-powered Internet Player in joins Vodafone on 1 October, and France’s Bouygues a number of markets outside Facebook CTO quits while Bertoluzzo’s new Telecom announced femtocell the US, starting with the UK in Bret Taylor will leave his post as job title is effective from 1 rollouts, taking the number of July. Canada, Australia, France, Facebook CTO this summer to August. Combes, meanwhile, deployments worldwide to 43. Germany, the Netherlands, Brazil join a start-up. His role will be was due to leave Vodafone and Mexico will follow. split between Mike Vernal and on 31 July to become CEO of Brazil awards 4G licences Cory Ondreijka, who will take French mobile operator SFR. The four main mobile network BT scores footy rights over responsibility for platform However, the resignation of operators in Brazil won licences UK incumbent BT won the right and mobile efforts respectively. Jean-Bernard Levy as CEO that will enable them to offer 4G to show live English Premier of SFR’s parent company services. League football matches for the Jobs go at Bouygues Vivendi put paid to that plan first time, paying £738 million Bouygues Telecom will cut 556 and Combes will stay on at Shared data at Verizon for 38 games starting in the 2013 jobs, or 5.7% of its workforce, Vodafone for a time to help Verizon Wireless unveiled new season. as a result of the price war in the with the transition. Initially tariff plans enabling users to share French mobile market. he will work with Bertoluzzo their data allowance between up YouView launch looms at Southern Europe, but to 10 devices. Packages start at UK TV and video-on-demand KPN new finance chief will then move to run the $50 per month for 1 GB of data. service YouView–backed by Interim CFO at KPN Eric Northern & Central Europe the country’s major free-to-air Hageman was appointed to the business before handing over DT, MasterCard team up broadcasters and BT–will launch role on a permanent basis. He the reins to Humm. Deutsche Telekom and at the end of July. replaced Carla Smits-Nuesteling.

4 www.totaltele.com July/August 2012  

  

awards

Asia Communication Awards 2012 Celebrating the success of Asian telecoms, globally

The winners...

Best Business Solution Innovation Award Lavastorm Analytics Smart Communications

Best Cloud Service Operator of the Year SingTel Smart Communications

Best Content Service Outsourcing Provider of the Year StarHub Aegis

Best Mobile Strategy Social Media Initiative Comviva Tulip Telecom

Customer Service Initiative Vendor of the Year Roshan Huawei

CTO of the Year Wholesale Operator of the Year Giorgio Migliarina, Telekom Malaysia Pacnet

Emerging Market Initiative CEO of the Year Smart Communications Ken Hu, Huawei

Green Technology Award Huawei

www.asiacommsawards.com

Organised by: Founding Partner: Asia ICT Partner: Sponsored by:

Executive Search, Interim Management

Media Partner: World Communication Awards2012 The time isnow

Don’t miss the global communications eventoftheyear Book your place now!

World Communication Awards For global communications providers 13th November 2012 2012 www.worldcommsawards.com Lancaster Hotel, London

Sponsors: Organised by: TECHNOLOGY TRENDS

heterogeneous networks JOINED-UP THINKING HetNets represent a cost-effective solution to the mobile capacity crunch, but when it comes to real-world deployment, telcos are still finding their feet.By Nick Wood

perators have got some impor- Operators have been busy bolstering cell solutions will increasingly find their tant lessons to learn, and fast, if their networks with small cells. In Japan, way into public spaces. Oheterogeneous networks are to NTT DoCoMo is relying on femtocells to But small cells are not an easy fix for deliver on the promise of providing extend its Xi LTE service to areas not operators. They come with the same much-needed capacity without breaking covered by its macro 4G infrastructure. requirements as macro cell deployments– the bank. “All three major [Japanese] operators planning, site acquisition and rental, A typical “HetNet” consists of a macro have public access small cell plans,” says installation, backhaul, and power–but layer of high-power base stations for wide Todd Mersch, director of product line multiplied many times over. So while area coverage, augmented by a denser management at network specialist HetNets present an appealing solution in deployment of lower-power, small cell Radisys. “We expect deployments to start theory, in practice there is still much to infrastructure like picocells, femtocells there sometime near the end of 2012 or learn if the industry is to keep a lid on and distributed antenna systems (DAS), early 2013.” costs. and data offloading solutions like WiFi. Meanwhile, South Korea’s SK Telecom “The price [of HetNet deployment] These provide extra capacity and ease has installed dual-mode LTE and WiFi needs to come down,” says Robert Joyce, congestion on the macro layer in high- femtocells for residential and enterprise O2 UK’s chief radio engineer. Yet he traffic areas. The whole requires careful customers free of charge to enhance the insists that “small cells are firmly on our signal interference management and performance of its LTE service. Mersch roadmap”. planning to ensure end users have an predicts that SKT and rival KT will have Joyce explains that in highly-contended optimal RAN connection and a seamless around 2,000 small cells between them areas O2’s network will require up to a World Communication Awards2012 experience. this year. LG-U+ will enter the market in 50-fold increase in capacity in the next There is no shortage of vendors seeking 2013 and is considering deploying up to five years, but the macro network can to capitalise on HetNets. Ericsson, 15,000 picocells. “From an addressable only achieve an eight-fold increase before Alcatel-Lucent, Nokia Siemens Networks, market perspective for OEMs [South it runs out of spectrum, something he Huawei and ZTE are all talking up their Korea] could be approximately $140 predicts will happen around 2014. His The time isnow end-to-end solutions that promise to million-$150 million in 2013,” he says. forecast includes bandwidth O2 plans to deliver truly self-organising networks Informa Telecoms & Media predicts acquire in the UK’s forthcoming LTE with coordination between the different 91.9 million small cells will be in service and digital dividend spectrum auctions. layers of the HetNet, while smaller, globally by 2016. The vast majority will Using London as its test bed, O2 has Don’t miss the global communications eventoftheyear specialised players are addressing specific be user-managed femtocells, but small undertaken a metropolitan small cell niches, from carrier-grade WiFi, to in-building closed access or outdoor Reasons for deploying small cells public access small cells. What do you believe are the three most important reasons for Book your place now! The widely-held view is that HetNets deploying small cells? represent a cost-effective solution to the Increasing capacity 70.7 impending mobile capacity crunch.

Analysys Mason puts the cost of Increasing coverage 65.9 addressing the world’s mobile network World Communication Awards capacity requirements by 2016–which Covering high-traffic public areas 63.8 For global communications providers according to Cisco will be in the region Offloading non-essential traffic from of 10.8 exabytes (10.8 billion gigabytes) of 37.5 13th November 2012 the transport and core networks 2012 data traffic per month–using only macro Lancaster Hotel, London Reaching areas previously hard to www.worldcommsawards.com 33.2 network infrastructure at a staggering reach (eg rural) $175 billion, compared to the $20 billion- $30 billion the industry spends today. Reducing churn 25.9 Sponsors: Organised by: However, if 50% of all mobile traffic is offloaded from the macro layer onto Other 3.0 small cells and WiFi hotspots, the cost 0 10 20 30 40 50 60 70 80 will come down to a more achievable $30 Respondents (%) N=232 billion-$40 billion. Source: Informa Telecoms & Media Small Cell Survey 2012

July/August 2012 www.totaltele.com 7 TECHNOLOGY TRENDS

deployment, comprised of open access Small cell technology drivers result in surging churn rates and reme- picocells and WiFi hotspots. As part of dial measures from operators to Which technology do you expect to this it installed small cells on nine of the be the biggest driver of small cell counteract them, he says. “Unhappy 40 lamp posts lining one West London shipments in 2012-2017? customers will drive us to do things that street, giving it 1 gigabit of network economically are not healthy,” Madden 3G (WCDMA, capacity per square kilometre, “which is LTE HSPA, EV-DO) continues. “The economics favour a 50.6% 32.6% around where we need to be by 2015”, balance between macro, metro and pico, Joyce says. but demand will drive a pico-heavy However, the company’s journey has deployment.” been far from straightforward. “Never A HetNet land-grab could be on the trust a council,” Joyce warns. “Be very cards, with operators vying with one careful about any deal you make...it can 2G another for prime real estate, again 2.7% affect timescales.” Indeed, O2 had to resulting in higher expenditure. submit separate planning applications for LTE- “If you don’t get there first, you’re not Advanced every piece of street furniture–around 14.2% going to get there for the next five to 10 400 applications in total. N=261 years,” warns Rob Reagan, president of According to Alcatel-Lucent’s senior Source: Informa Telecoms & Media Small Cell Survey 2012 small cell specialist Public Wireless. product marketing manager David Swift, One solution, he suggests, would be to one of the key lessons here is not to estab- with other cells. Between two and 10 extend the network-sharing model that lish agreements with local authorities watts is “what we’d need,” Joyce says. has emerged in the macro world into the that require planning applications for O2 is using a combination of point-to- HetNet world. “If operators had to share each site, but deals that “cover a chunk of point and point-to-multipoint microwave, macro [infrastructure], they will abso- real estate”, even if it means the operator and fibre technologies for backhaul. lutely have to share their small cell is left with some sites that are less than Fibre, says Joyce, can be troublesome, footprints,” to maintain control over ideal in terms of footfall. “When you particularly given that restrictions on costs, he says. “We’re headed towards deploy a macro cell, a lot of planning goes digging up roads are in place ahead of multi-operator [small cell] solutions.” into it because of the huge cost involved,” this summer’s Olympic Games. “Some This scenario also opens the door for he says. “With small cells the costs are cobbled streets you can’t dig up at all,” he wholesale infrastructure providers like smaller, so I can look overall at whether I adds. American Tower, GTL Infrastructure, or get any benefit from deploying them... The end result of all these idiosyncra- Crown Castle to take the cost and even if a few are in the wrong places.” sies is spiralling costs. complexity out of HetNet deployment by An added complication for O2 was the “We want these [small cells] in for less acquiring and leasing sites to multiple fact that one company in London has than $1,000 (£640) per installation,” operators. permission to physically install equip- including everything from site acquisi- “The neutral host is the missing piece ment on lamp posts–the same company tion to power and backhaul, says Joyce, of the puzzle in the small cells environ- ment,” says Reagan. However, he admits The neutral host is the missing piece of the that this strategy will not find favour with everyone, as some players opt for puzzle in the small cells environment the land-grab in a bid to outflank rivals. “Some will use small cells as a differen- that hangs the Christmas lights every but he admits O2’s London deployment tiator,” says Simon Saunders, chairman of year–effectively giving it monopoly cost “thousands of pounds per lamp post”. the Small Cell Forum. “I will use them to control. And once the equipment has “We’ve had to spend a bit more money lift the experience of my customers over been installed, it requires power and than we would have liked to,” he contin- my rivals.” backhaul, each of which comes with its ues. “Small cells need small costs. They Ultimately, as far as Ericsson is own headaches. can’t cost what they cost us to deploy in concerned, when it comes to a HetNet it “The power supply on a [London] lamp London.” is not just the cell sites an operator builds post is un-metered,” Joyce explains, Yet there are some who claim the indus- that are important, but also the sites it meaning O2 had to liaise with utility try is not investing the required capital to does not. “If you put small cells every 50 providers to install electricity meters so it meet future global demand for capacity. or 60 metres, it’s very expensive,” says Per can pay for its energy consumption. “We’re going to start to fall behind by Thorzell, head of solutions communities Setting the correct power output is also around 2014,” predicts Joe Madden, prin- at Ericsson Malaysia. “If you can avoid important to ensure the signal propa- cipal analyst at Mobile Experts. building a site at all, that’s the most cost gates far enough but without interfering Over-contended mobile networks will effective method.” n

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The Total Telecom World focus s!DDRESSINGTHEDISRUPTIVECHALLENGES s2EBUILDINGTHEECO SYSTEM s(OWTOMONETISETHELATESTTECHNOLOGIES s#APITALISINGON%MERGINGMARKETS s2EDESIGNINGYOURBUSINESSMODELS s,EADINGTHROUGHINNOVATION FOCUS ON ASIA indonesia THE MISSING BRIC Indonesia offers robust growth potential, but the country’s mobile providers are operat- ing in a tough climate. By Mary Lennighan

ith a GDP growth rate of 39,000 rupiah (US$4.15) in 2011, down operators Rp20 billion-Rp40 billion more than 6% in four out of from Rp42,000 the previous year and [$2bn-$4bn] to retune their network or Wthe past five years and the Rp80,000 in 2007. shave up to 1.4% off their core net profit,” world’s fourth-largest population, there Operators are naturally looking to said CIMB analyst Kelvin Goh in a is little wonder that many people are value-added services to maintain margins, research note. More importantly, the suggesting that Indonesia should take its but they face a number of major hurdles. rearranging could disrupt services, he place alongside Brazil, Russia, India and Ring-back tones were a major revenue- added. China in the BRICs, the world’s develop- generator for PT Telkom and its rivals To make matters worse, the BRTI has ing economy giants. until October last year when the regula- delayed the auction of 2.3-GHz spectrum In the telecoms space, the country is tor ordered mobile providers to stop for LTE services until at least late 2013. certainly experiencing rapid growth; premium services–including ring-back And just three blocks of 2x20 MHz of according to Paul Budde, it surpassed 260 tones and premium SMS services–in a bid spectrum will be up for grabs, which million mobile subscribers in early 2012, to address a series of customer complaints could inflate prices. up by almost 200 million in five years. about the loss of prepaid credit. “What’s In the meantime, Indosat is working on “Despite penetration being around 110%, next after RBT?” asks Sri Safitri, senior refarming its existing spectrum holdings there is still considerable opportunity for manager, marketing, at PT Telkom. for LTE, having conducted trials late last expansion in Indonesia’s mobile market The company is looking to offset that year. when compared with some of its Asian lost revenue with new content services, Meanwhile, PT Telkom has a different neighbours,” the analyst firm said. including music, video and gaming. It has approach: unlicensed spectrum. “The But with falling prices, a difficult regu- launched a beta service integrating music future of mobile broadband is fixed,” says latory regime, and fierce competition, and video, and plans to offer games in Safitri. She explains that the telco’s prior- mobile operators are having to work hard future, provided network limitations ity is to expand its capacity and as a result to benefit from the country’s promise. allow. At present, video quality is “accept- plans to roll out 1 million WiFi hotspots “The challenges [in Indonesia] are able”, Safitri says. across Indonesia over the next five years. absolutely unbelievable,” both from a The country’s operators are facing an In addition to network constraints, geographic and regulatory point of view, acute spectrum shortage. Hutchison’s 3 Indonesian operators also face particular says Colin Miles, chairman of the Asian has just 2x20 MHz of spectrum, half in challenges when it comes to making arm of industry association MEF. the 1800-MHz band and half in the money out of content services. “The revenue per minute has been 2.1-GHz (3G) band. Its 3G spectrum Widespread piracy means customers decreasing dramatically,” says Erry consists of two non-contiguous 5-MHz are unwilling to pay even small amounts Nugroho, head of data product portfolio blocks, although the regulator, the BRTI, for content. PT Telkom launched a music at PT Indosat. He says voice revenues plans to rearrange the allocations in this service priced at just 10 cents per week for now stand at around 2 cents per minute, band before selling off two remaining unlimited songs, “and still it doesn’t fly down from 16 cents in 2005. Meanwhile, 5-MHz blocks of 2.1-GHz spectrum. because they can get it for free anyway,” market leader Telkomsel, owned by PT “The regulator’s plan to rearrange says Safitri. “Even 10 cents, they don’t Telkom, reported blended ARPU of spectrum allocation...may cost the want to pay.”

Indonesia mobile subscribers, top Indonesia mobile phone shipments and smartphone share

five operators (millions) 14 50 n Mobile Phone Shipments 45 — Smartphone Share 12 2010 2011 40 Telkomsel 94 107 35 10 30 Indosat 44.3 51.7 8 25 (%) XL 40.35 46.36 6 (M units) 20 3 16.24 19.97 15 4 10 Axis 10 16 2 5 Smartfren 2.27 7.65 0 0 TOTAL (top 5) 207.16 248.68 2009 2010 2011 Source: Operator data Source: IDC

10 www.totaltele.com July/August 2012 FOCUS ON ASIA

Indeed, when Apple extended its iTunes Thailand inches towards 3G digital music store to 12 new Asian markets in June Indonesia was not among Thai mobile users are getting ready for the rollout of 3G services in the country, which them. However, days earlier Google’s free after years of waiting looks set to take place following the auction of 2.1 GHz spectrum scheduled for October. video service YouTube heralded the The country’s National Broadcasting and Telecommunications Commission (NBTC) in late launch of its Indonesia-specific service June set a minimum price of 4.5 billion baht (US$140 million) for 5 MHz of bandwidth. In and domain. total there will be 45 MHz of spectrum up for grabs, with operators restricted to acquiring Indosat’s Nugroho lists mobile Internet, a maximum of 20 MHz each. Thailand’s main mobile operators already offer limited 3G services via various agreements messaging, and mobile payments as the with state-owned operators TOT and CAT, but as it stands only TOT holds 2.1-GHz three key growth areas for Indonesian spectrum. AIS claims to be Thailand’s largest mobile operator in terms of both subscribers mobile operators between now and 2016. and revenues; it had 31.14 million subscribers as of Q1 2012. Telenor-owned DTAC had Telcos have a dominant revenue share in 23.43 million at the same date, while True reported 19.3 million. New statistics released by GfK Thailand suggest there is a pent-up demand for mobile mobile Internet and messaging, but else- data services in the country. According to the analyst firm, 758,000 smartphones were sold where, “the industry will be dominated in Thailand in the first quarter of 2012, up more than 80% on the year-ago quarter. Feature by third parties,” he warns. phones continue to dominate though; smartphones made up just 20% of the total 3.8 million mobile phones sold in Q1. “Previously our competition...[came “Smartphone penetration level in Thailand is considered low when compared with some of from] the players within the industry,” he the other markets in the region, like Singapore and Malaysia where the larger proportion of says. “[Now] Internet, IT and even the the population have already converted from their feature phones,” said Dr Wichit Purepong, mobile device manufacturers are trying general manager of GfK Thailand, in a research note. “This presents a huge potential to smartphone manufacturers and we can expect the rate of adoption to accelerate when to enter the mobile industry to grab the telecom operators in the country fully roll out their 3G services in the very near future.” opportunity.” n

india difficult decisions Uncertainty over spectrum auction prices and 3G tariff wars make India a tricky invest- ment choice for foreign companies. By Mary Lennighan

oreign telcos are understandably greater regulatory certainty and clarity was unable to meet that deadline as its showing caution when it comes to over auction rules. ministerial panel had yet to address Fplaying a role in India’s fast-grow- And Norway’s Telenor, owner of outstanding auction issues, including the ing mobile market. Uninor, the most successful of the recent thorny issue of price. That panel will be The government has yet to set a newcomers to the market, will not headed by home minister Palaniappan minimum price for the forthcoming confirm its participation in the auction Chidambaram re-auction of cancelled 2G licences, but until the government shares pricing Meanwhile, the 3G market is no great will doubtless seek to part the winning details. When in April the TRAI recom- source of joy to India’s mobile operators, bidders with as much cash as possible. mended that a nationwide licence in the which have, almost without exception, Meanwhile, an intensifying price war in 1800-MHz band cost a minimum of 36.22 slashed prices for mobile data usage in the 3G space is making life difficult for billion rupees (US$660 million), Telenor recent months. the telcos, who are also facing a revenue warned that it would be “almost impossi- “The prices of 3G services have dropped hit, at least in the short term, from the ble” for it to participate in the auction by 70%. They are more or less in line with country’s new telecom policy, designed under those terms. Uninor reiterated that 2G services,” says Hemant Joshi, telecom to provide some much-needed clarity to position in June, at the same time calling leader at Deloitte India. As a result, “It an uncertain regulatory regime. for the government to allow operators to has to be a volume game,” he says. However, there are also those that pay for licences in instalments, “due to Tata DoCoMo was the latest to cut maintain there is money to be made, if funding reluctance of banks.” prices in late June, reducing the cost of its only operators know where to look. India had aimed to auction eight blocks entry-level 3G packages with 1 GB of data United Arab Emirates-based Etisalat of 1800-MHz spectrum and three blocks to 250 rupees ($4.55) from 650 rupees. closed down its Indian mobile operation of 800-MHz spectrum by the end of Days earlier Vodafone India cut its pay- in March following the cancellation of its August, but as Total Telecom+ went to as-you-go data tariff by 80% to 0.02 licence and said it will make a decision on press reports were emerging that the rupees per 10 KB and removed on-network future involvement in India when there is Department of Telecom had admitted it data roaming rates. Idea Cellular, Reliance

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Organised by: FOCUS ON ASIA

Communications, MTNL and Bharti Pune, believes “handset customisation will pay for services that have an impact Airtel were also among those cutting and content development in the local on his or her life,” he insists. prices. Idea aims to triple its 3G subscriber language is the main challenge,” when it “There is a lot of content that works on base–2.9 million as of the end of May–by comes to getting people to use mobile 2G,” he adds, suggesting that operators the end of the current financial year. data services. He points out that there are need to “stop chasing the cheerleaders” One of the great impediments for 3G is 22 official languages in India. and go after the low-value, high-volume the lack of appropriately-priced handsets, “I have yet to find the operator who has customers instead. The key, he says, is to says Joshi, noting that even sub-$100 been successful and profited from 3G,” understand who the customer is and what smartphones are “still very expensive.” says NK Goyal, president of Indian IT he wants. And Milinde Pande, project director, and telecoms body CMAI. However, Joshi India’s new telecom policy, which was MIT School of Telecom Management, believes it can be done. “[The customer] approved by the Indian cabinet in late May, is designed to “provide a predictable The prices of 3G services have dropped by and stable policy regime” for the next 10 years and should provide better telecoms 70%...As a result it has to be a volume game service for consumers in both urban and rural areas. Amongst other things it will Foreign direct investment in telecoms and ARPU introduce nationwide licences rather than licensing operators on a circle-by-circle n FDI in Telecom (Rs crore) — ARPU 14,000 1,200 basis. Consequently, mobile users will no

12,000 1,000 longer have to pay inter-circle roaming rates, currently a significant revenue- 10,000 800 generator for operators. 8,000 “There will be in the short term a 600 6,000 revenue impact,” says Joshi. “[But] as the 400 roaming goes down the usage will 4,000 FDI in Telecom (Rs crore) FDI in Telecom increase... In the long run the industry

2,000 200 Revenue per User (Rs) Average will benefit,” he predicts. But this is India, and history suggests ;V[HS;LSLJVT-PUHUJL:\TTP[ 0 0 2000- 2001- 2002- 2003- 2004- 2005- 2006- 2007- 2008- 2009- 2010- 2011- “the long run” could be a very long time. 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 It could take some years before the single 9LZOHWPUN[OLÄUHUJPHSSHUKZJHWLMVY Source: TRAI licence system is implemented. n [OLNSVIHS[LSLJVTT\UPJH[PVUZPUK\Z[Y` CHINA crunch time 10 – 11 October 2012 China Mobile doesn’t just want a flagship TD-LTE handset, it desperately needs one to .YHUK*VUUH\NO[9VVTZ3VUKVU enable it to compete in the long term. By Nick Wood

KH`JVUMLYLUJLMVY[OVZLPU]VS]LKPUÄUHUJL hina Mobile’s long-term future as has so far struggled to win over big- Unicom’s 2.7 million and China Telecom’s HUKPU]LZ[TLU[MVYNSVIHS[LSLJVTT\UPJH[PVUZ the world’s biggest operator by spending early adopters. 2.6 million. Csubscribers depends greatly on Indeed, 3G subscriber numbers show In what some observers consider a whether it can foster a healthy TD-LTE that China’s mobile market is far more crucial contributing factor, China Mobile )662@6<973(*,56> ecosystem. competitive than it appears on the is also the only carrier not to offer a 3G That might be hard to believe consid- surface, and is likely to remain that way iPhone, although former chairman Wang ering it boasts in excess of 677 million going forward. Jianzhou revealed to Bloomberg in customers–three times more than closest China Mobile is still ahead with 64.3 September that the operator had 8.5 rival China Unicom and nearly five times million 3G customers at the end of May, million customers using iPhones on its more than China Telecom–but the reality but that figure represents less than 10% 2G network. ^^^[V[HS[LSLJVTÄUHUJLZ\TTP[ is that China Mobile has felt the sting of of its overall subscriber base. Meanwhile Topeka Capital Markets analyst Brian being hamstrung by niche access tech- rivals China Unicom and China Telecom White, who is consistently bullish about nology. By failing to convince big device are hot on its heels with 54.5 million and Apple, said in a recent investor note that Organised by: makers to make their most high-flying 48.2 million 3G users respectively. And in China Mobile is “in need of the iPhone” if models compatible with its home-grown May alone China Mobile added 2.4 million it wants to maintain an edge over the 3G standard, TD-SCDMA, the company 3G customers, slightly fewer than China competition.

July/August 2012 www.totaltele.com 13 FOCUS ON ASIA

Wang was confident that discussions compatible smartphones; however, the Broadband boom towards the end of last year between addressable TD-LTE subscriber base is Asia remains the world’s biggest fixed China Mobile and Apple about develop- currently too small to attract much inter- broadband market and its fastest ing a TD-LTE iPhone would bear fruit. est from big device makers. The growing, according to new figures from However, his successor Xi Guohua has equipment vendor reportedly plans to Point Topic. The region added 8.58 million been more conservative; in May he was launch its first TD-LTE handsets by the new lines in the first quarter of 2012 to reach 262.08 million; the global total at quoted as saying that “China Mobile and end of this year. the same date reached over 600 million. Apple both have the will to strengthen In future, the compatibility between Asia’s 15.19% year-on-year growth rate cooperation...When there is more specific time division (TDD) and frequency divi- means it is expanding faster than all other news, we will disclose it”. sion (FDD) flavours of LTE could be a regions of the world. China is still the biggest single market for He admitted during June’s Mobile moot point. Ericsson announced in June broadband, having grown its subscription Asia Expo in Shanghai that “the device it had successfully completed a seamless base by 19.17% over 12 months to reach front is the bottleneck”, rather than the FDD/TDD handover on China Mobile 164.36 million connections at the end of Hong Kong’s live LTE network. Q1. The five Asian countries that feature in the global top 20–China, Japan, South “Ericsson is dedicated to ensuring the Korea, India and Taiwan–together have China Mobile is in success of converged LTE FDD/TDD for 239 million broadband subscribers, operators, so that they can make the most more than one third of the global total. need of the iPhone if India almost matched China for growth, of their spectrum investments and expanding its broadband base by 19.11% it wants to maintain a provide the best quality service for their over a year to 13.4 million subscriptions. customers,” said Mats Olsson, Ericsson’s Both China and India are making efforts competitive edge China and Northeast Asia president. to develop their broadband infrastructure. ZTE in June announced that it had won In addition, mobile chip giant a 40% share of China Telecom’s fibre technology or building the network. Qualcomm unveiled multi-mode chipsets broadband equipment contract, which China Mobile plans to roll out 200,000 that support both FDD and TD-LTE. in total is valued at around 4 billion yuan TD-LTE base stations by 2013. However, with the LTE FDD ecosys- (US$635 million). Meanwhile, the Indian government set up a new company– “For TD-LTE to develop, it depends tem already firmly established thanks to Bharat Broadband Network–to roll out greatly on the handset,” said Zhang a multitude of network deployments in a national fibre-optic network to extend Jianguo, CTO of ZTE’s Asia Pacific Asia-Pacific, Europe and the US, it will be high-speed broadband services to rural region, in a recent interview with Total up to operators like China Mobile to areas. The project will cost 200 billion rupees ($3.5 billion) and will see Bharat Telecom. He predicts TD-LTE adoption drive the business case for TD-LTE Broadband lay 500,000 km of fibre. will accelerate with the launch of devices. n cloud services A QUESTION OF TRUsT Asian telecoms operators could find themselves in a strong position to take advantage of the region’s burgeoning cloud services market. By Mary Lennighan

sian telecoms operators have an significant slice of the lucrative cloud “Asia-Pacific as a whole is still in the advantage over their counterparts services market, which Gartner predicts early stages of adoption” of cloud serv- Aelsewhere in the world: locally- will be worth US$177 billion globally by ices, compared to the US, he says. “[But] headquartered businesses trust them to 2015. we’re seeing a very sharp ramp in terms provide cloud services. Enterprises are beginning to realise of adoption across all markets.” In a survey of IT decision makers that it is difficult for them to ensure And operators are in a strong position conducted by Alcatel-Lucent last year, adequate security on their own networks to benefit from that growth. the majority of respondents in key Asian so, “as long as it’s a reputable service “Within countries we see that local markets selected the local telecoms provider...it’s probably safer to have data brands are competing with global provid- incumbent as the most likely player to on the service provider’s premises,” says ers or even overtaking them. This is win their cloud services business. This Amit Sinha Roy, VP marketing & strat- especially true in France, Hong Kong, suggests there is a growing opportunity egy, global enterprise solutions, at Tata Taiwan, and South Korea,” Alcatel-Lucent for telecoms operators to take a Communications. reported in its global cloud IT decision

14 www.totaltele.com July/August 2012 FOCUS ON ASIA

maker’s study published in May. In Who will make extensive use of external cloud solutions? Taiwan incumbent operator Chunghwa Telecom was selected by 46% of respond- 80 n Currently n In 3 years ents as the company most likely to win 58 their business, with the likes of Google 60 and Amazon lagging behind. By compar- 52 47 ison, the US market is more evenly split, 45 41 40 with just over a third of respondents % 40 37 37 34 35 34 selecting one of the big telcos. 26 25 25 According to China’s Huawei, the biggest opportunity for Asian operators 20 lies in serving local businesses. The big US operators are snapping up 0 all the big US-based companies in Asia, US UK France India South Korea Taiwan Hong Kong says Barry Lerner, South Pacific regional Source: Alcatel-Lucent CIO at Huawei. “Stay local. Go after those enterprises,” he advises. “Indonesian companies like dealing Local brands are competing with global with Indonesians, adds Sue Bryant, direc- tor of Huawei’s CIO office. “The emerging providers or even overtaking them markets are a prime candidate for cloud,” she says, noting that around 90% of IT Which company do you think would be most likely to win your business? spend in Indonesia is on hardware. This provides telcos with an opportunity to US South Korea pitch Infrastructure-as-a-Service (IaaS) offerings. Other It is still early days for IaaS in much of Windows Google the Asia-Pacific. “Adoption of Software-as Other Azure 30% 34% -a-Service is significant,” but IaaS is just Korea IBM Telecom starting to gain traction, largely as a 43% result of “the network infrastructure readiness,” says Tata’s Roy. In India, the Verizon AT&T network is “now at a level where Amazon 16% 20% Infrastructure-as-a-Service has become real,” he says, but it is still not comparable to a developed market like Singapore. According to Alcatel-Lucent’s survey, the technology, professional services, and Taiwan Hong Kong service industries sectors are the furthest ahead in Asia on cloud services adoption.

“The telcos are trying to vertically line Others themselves up,” says Lerner. In Australia Others Amazon operators are looking at the mining and medical sectors, while in Singapore the CHT/ Chunghwa PCCW financial space is key, he says. Telecom 43% 46% But if the operators want to make the Amazon most of the cloud opportunity they will Google have to move quickly. Google While in Europe there is a deep sales cycle, in Asia the salesforces are smaller and the cycles faster. Businesses in Asia

“don’t wait; they just do things,” says Source: Alcatel-Lucent Lerner. n

July/August 2012 www.totaltele.com 15 th wi Breakfast Brwitheakfast

Join in our series of mini-conferences connecting buyers and sellers of telecom products and services in a focused, Breakfast cost-effective and engaged environment. with What we’re talking about in 2012 Breakfaswitth 6S`TWPJZ¶(.VSK4LKHS,ɈVY[& The Data Centre Opportunity 13 September 2012 1 November 2012 The games are over, so how did communications fair? Was it There is a rising demand for data centres from telecoms, a gold medal effort, or did telecoms fall at the first hurdle? content, and enterprise users. How can service providers Breakfast capitalise on this opportunity? with Backhaul Strategies for Service th BrProviderswi eakfast Content – Location Based Services 18 September 2012 29 November 2012 How do service providers backhaul additional cell sites? We Join us to examine the opportunities surrounding Location examine the issues and the alternatives for service providers Based Services and how to monetise the opportunity. looking for backhaul solutions. with Capitalising on Copper - The Breakfast Making Money from M2M Opportunity for Service Providers 9 October 2012 11 December 2012 According to Machina Research, M2M will provide How can service providers get more life out of existing copper mobile operators with a �210 billion addressable revenue infrastructure? opportunity by 2020, although they are expected to claim just �40 billion. We discuss why this is and how mobile operators can take their fair share.

Unless otherwise advertised all events will take place at 76 Portland Place, London at 8:30 - 11:30am. For more information or to book your place contact: [email protected]

www.totaltele.com/breakfast NETWORK SERVICES

MOBILE HEALTHCARE HEALTHY DEBATE Mobile operators are looking to capitalise on a global desire to improve healthcare, but opinion differs on the size of the opportunity. By Mary Lennighan

f you are under the age of 50, The m-health market will be driven “Household devices for the worried there's a 90% chance you will both by “developed countries needing to well or to support low-end assisted living “Ilive to be 100,” Rohit Talwar, reduce the cost of universal healthcare solutions are an opportunity too,” he founder and CEO of Fast Future Research, and developing countries looking to roll says, adding that with wireless WAN told delegates at Total Telecom Wireless out life-saving services to in-need connections these could work out of the World in London last month. communities,” said Jeanine Vos, execu- box, rather than needing to be connected The desire to improve healthcare, and tive director m-health at the GSMA, in a to the home network. thereby live longer and better, is univer- statement. But while operators are certainly sal. And the raft of new healthcare But some believe the opportunity for looking at the M2M space, they have services shows various players in the mobile operators lies almost solely within differing views on the healthcare mobile industry are keen to capitalise on the machine-to-machine healthcare opportunity. this trend. However, there is still some space, which excludes things like SMS “A lot of the growth [in M2M] is around debate over the size of the opportunity reminders and m-health services that do transport and logistics...Health is pretty for the mobile operators. not use the cellular network. damn small,” said Marc Overton, VP In July Japan's NTT DoCoMo teamed “Opportunities for MNOs outside the wholesale and M2M at UK mobile opera- up with medical kit maker Omron M2M space are generally not significant,” tor Everything Everywhere. He shared Healthcare to create a joint venture to says Jim Morrish, director at Machina statistics published by Informa Telecoms develop a range of healthcare support Research. “Real clinical revenues need & Media in May that show the medical services; the mobile operator will own systems integration capabilities. And any and healthcare sector account for just 5% of publicly announced M2M contracts, compared with 40% for automotive and Healthcare is going to be one of the biggest fleet/asset tracking and 22% for smart opportunities in M2M in the next 10 years metering. But others are more bullish. “We’re 66% of DoCoMo Healthcare. Earlier this SMS-based solutions may be high margin putting significant resources in [to year Vodafone and Boston Scientific right now, but they will never achieve health],” said Andrew Edison, vice presi- agreed to jointly develop mobile health both high volume and high levels of scale. dent, EMEA, at AT&T. “It’s already a $5 monitoring solutions and in June Prices would have to come down to near billion business for us,” he added, noting Samsung made its S Health lifestyle app– data levels as a precondition for wide- that AT&T has a 300-person dedicated which works with healthcare sensors, spread adoption,” he says. healthcare business. “[There are] very such as blood pressure monitors–availa- However, Machina Research predicts a significant opportunities for us in this ble to Galaxy S3 smartphone users. US$4.22 billion revenue opportunity for market globally,” he predicted. The m-health market will be worth mobile operators from M2M healthcare Meanwhile, Mike Short, vice president US$23 billion by 2017, according to a applications, with more than half–$2.51 at Telefonica Europe, highlighted the report compiled by PwC for the GSMA billion–coming from remote monitoring “wellness” space as key for operators. earlier this year. $11.5 billion of that will for the “worried well”, or people using According to analysts, there will be 500 be up for grabs by the mobile operators applications to maintain health, rather million people using wellness and health- for the provision of pervasive m-health than to monitor or treat conditions. care apps in the world by 2015. “I think it services and applications. There's a “Devices for the worried well can be will get there sooner,” Short said. revenue opportunity of $6.6 billion for sold simply by using brand and existing “Health is more than just the absence device vendors, $2.6 billion for content customer relationships, particularly of disease,” agreed Fujitsu medical direc- and application providers, and $2.4 billion devices that are peripheral to mobile tor Joel Ratnasothy. With wellness apps for healthcare providers. Remote moni- phones,” says Morrish, such as heart rate we can move from treating to preventing toring services (for heart patients, for monitors or accelerometers that measure disease and that’s “where our industry example) will account for 65% of the daily activity. Mobile operators could also can offer the most value,” he said. market, followed by diagnosis services at act as a channel to market for assisted Healthcare might not be the number 15% and treatment services–such as SMS living solutions which, when bundled one opportunity in the M2M space, “but reminders to people to take their medi- with remote monitoring, could generate it’s going to be one of the biggest in the cine–will take 10%. high margins, he says. next 10 years,” Short said. n

July/August 2012 www.totaltele.com 17 Opportunities and Partnerships for Carriers 24-25 September, ETC St Pauls, London, UK

The 17th annual Carriers World 2012 unites global leaders in the wholesale industry at the definitive leadership forum for fixed line, mobile, and satellite broadband wholesale carriers.

Over 20 CEOs & Heads of Wholesale confirmed as speakers including:

Mike Millegan Björn Iversen Daniel Kurgan President, Global Wholesale CEO CEO Verizon Telenor Global Services BICS

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Register now and get the offer price - on your phone Co-located with Scan this QR pattern with the camera on your smartphone to register at the special offer price.

Don't have a smartphone? You can also register and get the offer on our website: www.terrapinn. com/carriersworld - quote voucher code XXKW. www.terrapinn.com/carriersworld 2012 sponsors prime numbers cosntaecticotns header

EDITORIAL ALU DEAL DRIVES VOIP/IMS KIT MARKET $386 4th Floor, Welken House, The global service provider VoIP equipment market grew by 1% The average selling price 10-11 Charterhouse Square, London EC1M 6EH +44 (0)20 7608 7030; [email protected] sequentially to $715 million in the first quarter of 2012 due to of a tablet globally in Q1 exceptionally strong IMS equipment spending, according to 2012, down 21% on-year TOTAL TELECOM Mary Lennighan [email protected] Infonetics Research. “In the first quarter of 2012 we saw the (IMS Research) Editor +44 (0)20 7608 7069 largest order of IMS core equipment and application server Nick Wood [email protected] RUSSIAN MOBILE Assistant Editor +44 (0)20 7608 7046 licences on record, secured by Alcatel-Lucent, a clear sign that Michelle Young [email protected] operators in North America are gearing up for voice over LTE SLIDE Art Editor (VoLTE) deployments,” said Diane Myers, principal analyst for Russia’s mobile market VoIP and IMS at Infonetics. Ongoing fixed-line network transfor- has hit saturation point, advertising mation, fixed-mobile convergence and voice over broadband according to the latest Head office, london figures from Wireless Keith Dalton [email protected] (VoBB) projects over IMS also boosted the market, Myers said. Sales Director +44 (0)20 7608 7065 Alcatel-Lucent more than doubled its service provider VoIP and Intelligence. The Jessica Gillies [email protected] IMS revenue and market share in Q1, pushing it ahead of perennial country’s top three Sales Manager +44 (0)20 7608 7027 Oliver Chandler [email protected] leaders Huawei and Genband. operators–MTS, Events Manager +44 (0)20 7608 7041 MegaFon and United States and Canada TOP SERVICE PROVIDER VOIP & IMS REVENUE MARKET LEADERS Vimpelcom–all lost KCS International subscribers in the first T +1 717 397 7100 F +1 717 397 7800 Q1 2011 Q1 2012 quarter of this year, Karen C Smith-Kernc – East [email protected] Alan Kernc – West & Canada [email protected] with the market as a whole contracting by 1.7 Japan Hiroko Kujime [email protected] million connections; Pacific Business T +81-3-3661-6138 F third-largest player +81-3-3661-6139 Vimpelcom lost around 1.6 million connections, production/ subscription/ although some of the customer services Please forward all advertising material directly to: market’s smaller [email protected] providers, like Tele2, Aleisha Bryant [email protected] Customer Services Executive +44 (0) 7608 7042 gained customers. At or subscribe free at: www.subscription.co.uk/totaltelecom the end of Q1, Russia was home to 227.1 marketing n Huawei n GENBAND n ACME Packet n Alcatel Lucent n Sonus n Other million mobile subscrib- Tally Judge [email protected] ers putting penetration Marketing Manager +44 (0)20 7608 7076 Source: Infonetics Research Ruth Clark [email protected] above 160%. Marketing Executive +44 (0)20 7608 7047

EVENTS $1.6 billion BASE STATION BOOST Matthew Secker [email protected] Global optical components Mobile operators in Western Europe will need to deploy Conference Director +44 (0)20 7608 7039 revenues in Q1 2012 more than 140,000 UMTS base stations this year and the Charles Georgiou [email protected] Project Manager +44 (0)20 7608 7071 (Ovum) same number in 2013, but capacity upgrades–such as HSPA+, dual-cell and MIMO–in 2013-2016 will reduce MANAGEMENT LTE device growth demand for new base stations, according to new research Rob Chambers [email protected] The number of LTE user from Analysys Mason. In the 2015-2017 period LTE capacity Publisher +44 (0)20 7608 7077 Greg Hitchen [email protected] devices announced by will largely replace UMTS capacity; just under 280,000 Chief Executive Officer manufacturers has doubled additional LTE base stations will be required in Western in the past year, according to Europe between 2012 and 2017, the firm predicts. OTHER PUBLICATIONS Online: www.totaltele.com the Global mobile Suppliers BASE STATION DEPLOYMENTS WESTERN EUROPE Association. 67 vendors have Television: www.totaltele.tv n GSM n UMTS n LTE between them announced 450 417 LTE-enabled devices, Total Telecom Events 400 World Communication Awards including 83 smartphones www.worldcommsawards.com and 31 tablets. 193 devices 350 World Vendor Awards www.worldvendorawards.com are capable of operating in 300 Asia Communication Awards the 700-MHz spectrum band www.terrapinn.com/2011/asia used in the US, but the 250 Total Telecom World www.totaltele.com/world number of devices that can 200 Total Telecom Wireless World use 800-MHz, 1800-MHz www.totaltele.com/wireless and 2.6-GHz spectrum is 150 Total Telecom+ is published by also growing rapidly. 100

50 Number of base stations deployed (thousands) 392.4 million 0 © 2012. All rights reserved. Green mobile handsets 2012 2013 2014 2015 2016 2017 shipped worldwide in 2017 Terrapinn Holdings Ltd registered office: Source: Analysys Mason 4th Floor Welken House, 10-11 Charterhouse (Juniper Research) Square, London EC1M 6EH

July/August 2012 www.totaltele.com 19