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Positively Disruptive BUsiNess ANAlysis FOR teleCOMS PROFessioNAls SepteMBER 2010 LEADER CONTENTS NEWS IN BRIEF POSITIVELY DISRUPTIVE 3 Timeline A roundup of some of the It pays to look at the positive contributions that disruptive major stories reported in our daily news service, service providers and technologies can bring to the market www.totaltele.com NETWORK STRATEGIES ew entrants (upstarts) are still struggling to find profits as our often regarded with a large story shows, but it is marching ahead 6 Voice over IP Ndegree of circumspection, with consumer and business serv- business models but disruptive forces can soon turn ices and an IPO, and is latterly the Fixed and mobile carriers into changes for good, as we show in subject of takeover rumours. Google, are using fast-growing this month’s Total Telecom Plus. too, is accelerating VoIP’s progress, VoIP services to drive new When it comes to voice over IP, in August integrating its voice appli- revenues, changing perceptions that the the technology has evolved from a cation into Gmail. Ian Kemp technology is a negatively Editor disruptive force into a mainstream In the mobile space, new entrants disruptive force ian.kemp@ service over which future strategies are proving an equally irresistible totaltele.com will be fought. As fixed and mobile force, with MVNOs set to overtake TECHNOLOGY TRENDS operators continue to roll out their the number of mobile network oper- 10 Near-field next-generation fibre and LTE ators globally in the next few years. communications networks we are going to see a lot MVNOs are both driving consoli- Operators have big plans more innovative VoIP applications dation and springing up as a direct for NFC, and some new and services, altering our percep- result of it, most recently in the UK developments over the tions of it as a voice killer towards a (see story p.20). Still by far the summer herald a wealth way to drive new revenue streams biggest proportion of those MVNOs of new applications—if and business models. are targeting low-cost services, but the business models can some network operators are using be sorted out ‘Disruptive forces further segmentation to drive up BUSINESS AND FINANCE users and revenues. 17 Mobile services can turn into Mobile entrants in India are faring rather less well. Network operators in India changes for good’ awarded new spectrum in 2008 had New entrants with foreign backers had hoped to hoped to tap into the booming capitalise on rapid mobile Operators such as Verizon and mobile industry there, but less than growth in India, but now AT&T, as well as service providers three years later they are struggling some are facing a quick in France, already are demonstrat- to sign up subscribers and roll out exit amid new regulation ing how VoIP can provide an uplift networks (p.17). Now the regulator CONTENT STRATEGIES (see story p.6). And some mobile is considering policy amendments operators argue it can drive up that could provide an exit route. 20 MVNO models minutes of use and voice revenues, Once more showing that disrup- MVNO launches are still even when cheap or “free”. tion can be a positive force, operators gathering pace in the face But what of those upstarts? It’s globally are starting to introduce of consolidation, but it hard to believe that Skype is only near-field communications (NFC) pays to think carefully about how to differentiate seven years old, responsible as it was services that could radically change services and content for 54 billion of the 406 billion the way we use mobile devices. On minutes of international traffic last p.10 we get to the heart of the tech- year (TeleGeography statistics). It’s nology and the latest projects. n Our customers say we offer personal service with quality wholesale connectivity and network reliability they can trust.* For your one connection to infinite possibilities, Rogers is the Canadian wholesale carrier solution for all C M your voice and data needs. Y CM www.rogers.com MY CY +1-416-935-6060 CMY K *Based on independent survey results collected by Atlantic-ACM 2010. TIMELINE A roundup of the major stories in telecoms over the summer, as reported in our daily news service, www.totaltele.com took control of Ukraine’s largest BUSINESS CAIW and Delta must allow TV the proceeds to buy a 22.4% stake mobile operator Kyivstar in April, providers to broadcast digital in rival Brazilian company Oi. is owned by Telenor of Norway Intel buying spree signals over their cable networks. and Russia’s Alfa Group. Intel bought Texas Instruments’ FT set for film deal cable modem business, bringing Vodafone to launch IPTV France Telecom was close to Windstream buys into fibre it into its Digital Home group, Vodafone said it will launch IPTV signing a deal with Vivendi’s US rural operator Windstream which will supply the Atom services for its ADSL subscribers Canal Plus to merge their movie bought fibre services company chip for Google TV. Intel also in Spain by the end of the year. channels TPS Star and Orange Q-Comm for US$782 million. bought Internet security company Cinema Series. Chief executive McAfee for US$7.68 billion, and Telekom Austria restructuring Stephane Richard has been NETWORKS then snapped up the mobile Telekom Austria said its ongoing looking at ways to ease the cost of device unit of German chipmaker reorganisation will cost E30- the operator’s content assets. Singapore launches NGN Infineon for US$1.4 billion. 40 million in 2010, half its Singtel has launched services previous estimate. The company TeliaSonera sell-off prospect at speeds up to 200-Mbps on EU appeals French state aid is merging its fixed-line and Sweden’s government says it will Singapore’s national next- The European Commission is domestic mobile operations into reduce the state’s 37.3% stake in generation broadband network. appealing a European General one unit, A1 Telekom Austria. incumbent operator TeliaSonera Retail and wholesale consumer Court decision that a E9 billion if it wins another four-year term and business services will be credit line offered to France Telefonica wins Vivo battle in the forthcoming elections. deployed on fibre infrastructure Telecom in 2002 by the French Telefonica ended its protracted In May 2007 the government built by Singtel and OpenNet. government wasn’t illegal aid. battle to gain control of Brazilian divested an 8% stake to Consumers can get TV and mobile operator Vivo, buying institutional investors for SEK18 gaming services, as well as a home Qualcomm mulls Flo TV unit Portugal Telecom’s stake for E7.5 billion (E1.9 billion). line with unlimited IP-based calls Qualcomm said it is in talks which billion. Telefonica plans to merge (see VoIP story p.6). could lead to a sale of its Flo TV Vivo with its fixed-line operator Vimpelcom on acquisition trail mobile broadcast unit. Telesp, giving it 70 million Russia’s Vimpelcom entered into NSN wins big mobile deals customers in Brazil, a full 25% of talks to buy stakes in mobile Nokia Siemens Networks won NSN buys Motorola networks its total customer base. Portugal operators Orascom in Egypt and a contract to supply equipment Nokia Siemens Networks Telecom in turn will use some of Wind in Italy. Vimpelcom, which for the new 3G network of acquired Motorola’s networks Tata Teleservices, beating off business for US$1.2 billion to Spending on networks and software rising again rivals Ericsson, Alcatel-Lucent try to boost operations in key and ZTE. NSN will provide 225 10 markets such as the US and Japan. — % Growth LTE-ready WCDMA base The deal is expected to close by n Revenue stations, as well as network the end of this year, and will see 5 implementation and managed 150 about 7,500 Motorola employees services to the Indian operator. In transferred to NSN. 0 July, Harbinger Capital Partners awarded a US$7 billion (E5.5 Dutch cable operator reprieve 75 billion) eight-year contract to -5 growth % of revenue A tribunal in the Netherlands Revenue in $US billions NSN to build its wholesale LTE overturned the telecoms network, LightSquared. regulator’s decision to force cable 0 2009 2010 2011 2012 2013 2014 operators to open their networks BT broadband hits 15 million Source: Infonetics Research to competitors. In March 2009 Infonetics says spending on network and software equipment has picked up BT says 15 million UK homes Opta ruled that UPC and Ziggo this year and will accelerate from 2011 through to 2014. Worldwide telecoms and small businesses now access and datacom equipment revenues totalled US$153.8 billion worldwide in 2009, should make their analogue cable down 5.2% from 2008, but Infonetics expects spending to grow to $208.3 broadband services through its infrastructure available to other billion in 2014. The company tracked 11 major categories of enterprise and network, five million of those service provider equipment, with only IPTV and next-gen OSS growing in 2009. companies and that they and directly from its retail unit. September 2010 www.totaltele.com 3 TIMELINE Tata awards 3G contract dominated by Mexican billionaire Packingham, left the company Tata Teleservices awarded Carlos Slim Helu. in August. Packingham led the Huawei Technologies a contract development of Sprint’s flagship to provide equipment for 3G Pay-as-you-go WiMAX Evo 4G and Epic smartphones, networks in five of the nine Clearwire unveiled a new pay- the first devices to support its telecoms circles in which it won as-you-go wireless broadband new WiMAX network. Dan spectrum earlier this year.
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