Volume 07 _ Issue 05 _ May 2016 SAMENA TRENDS EXCLUSIVELY FOR SAMENA COUNCIL'S MEMBERS BUILDING DIGITAL ECONOMIES

A SAMENA Telecommunications Council Newsletter

Articles

Viable areas of investment and stakeholder partnership Page 63

Dealing with the great ISDN switch off Page 69

Necessities of the evolving market and relevant... Page 69

Adapt to survive: the evolution of telecom... Page 69

Mohammed Bin Rashid Smart Learning Program (MBRSLP) & ITU agreement signing during SAMENA Council’s Leaders’ Summit 2016 Page 04

Stakeholder Cooperation in Digital Development

www.samenacouncil.org SAMENA CONTENTS VOLUME 07, ISSUE 05, may 2016 TRENDS

The SAMENA TRENDS newsletter is wholly owned and operated by The SAMENA REGIONAL & MEMBERS Telecommunications Council FZ, LLC UPDATES (SAMENA Council). Information in the 22. Members News newsletter is not intended as professional services advice, and SAMENA Council 32. 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 43. Necessities of the Evolving Market and otherwise noted, described or stated) Relevant Legislation and Regulation- A and cannot be reproduced, copied or printed in any form without the express Regulatory Perspective . written permission of the publisher. 45. Regulatory News The SAMENA Council does not necessar- ily endorse, support, sanction, encour- 52. Viable Areas of Investment and age, verify or agree with the content, Stakeholder Partnership comments, opinions or statements made in The SAMENA TRENDS by any entity A Snapshot of Regulatory Activities in or entities. Information, products and 54. services offered, sold or placed in the SAMENA Region newsletter by other than The SAMENA Council belong to the respective entity EDITORIAL 66. Regulatory Activities Beyond the or entities and are not representative 03. SAMENA Region of The SAMENA Council. The SAMENA Council hereby expressly disclaims any and all warranties, expressed and im- WHOLESALE UPDATES plied, including but not limited to any TECHNOLOGY 84. Wholesale News warranties of accuracy, reliability, mer- UPDATES chantability or fitness for a particular SATELLITE UPDATES purpose by any entity or entities offer- 89. Satellite News ing information, products and services in 11. Kastr Set to Reinvent Live this newsletter. The user agrees that The Broadcast Mobile Experience SAMENA Council is not responsible, and shall have no liability to such user, with 12. Dealing with the Great ISDN respect to any information, product or Switch Off service offered by any entity or entities in this newsletter. The SAMENA Coun- cil’s only liability in the event of errors 14. Technology News shall be the correction or removal of the erroneous information after verification. 18. Adapt to Survive: the Evolution of Telecom...

20. How Can Telecoms Heavyweights Editor-in-Chief Avoid a Knockout? Bocar A. BA

Contributing Editors Izhar Ahmad Javaid Akhtar Malik

Contributing Members Orange Business Services SLA Digital

Publisher SAMENA Telecommunications Council

Subscriptions [email protected]

Advertising [email protected] 04. 06. Legal Issues or Concerns [email protected] Smart Learning Telecom Leaders’ SAMENA TRENDS Signing [email protected] Summit 2016 Tel: +971.4.364.2700 Program Initiatives

© 2016 - All rights reserved. SAMENA TRENDS is a trademark of SAMENA Telecommunications Council. EDITORIAL

SAMENA TRENDS _ MAY 2016

Stakeholder Cooperation in Digital Development

In order to transform the notion of building willingness and recognition of the need among a better connected world into reality, as was the industry stakeholders to do much more than discussed from various perspectives during our before in order to ensure sustainability and growth Leaders’ Summit 2016 just recently, we need to of the industry over the next decade and beyond. emphasize on creating an understanding among The role of all stakeholders, ultimately, is to all the stakeholders that our industry has essential ensure that digital development takes place in the requirements for moving forward in a progressive most effective and sustainable manner humanly and a sustainable manner. possible. Governments have a leading role in developing policies and roadmaps for accelerated It is time to act. We must exercise our roles broadband deployment. Thus governments need to pinpoint where we are lacking and, at the to put appropriate policy, legislative and regulatory same time, express appreciation of the fact that frameworks in place, to enable smooth execution connectivity and communications demands of of processes within the set time and provide today also demand better communication across incentives and support for investments. Regulators all stakeholders in the industry as well as the value have a key role in setting the licensing frameworks, chain. In our collective pursuit for innovation, we ensuring level playing field in services, spectrum are now amidst a realizing that without ensuring allocation, and taxation. Operators, carriers stakeholder inclusion, whereby all those directly and service providers have a critical role in the related to the buisness of digital development rolling out of broadband networks and services. as well as those driving value from it or those They need to provide better technology for the complementing it should equally participate and provision of quality services and build the capacity contribute efforts toward the sustainability of the of human resources to adopt the new broadband business, we will not move forward effectively and skills. Equipment manufacturers and vendors quickly enough. have a role in ensuring adherence to approved standards in the creation of end-user terminals as Telecom operators, which have an ever important well as network devices and equipment. role as the key enablers of digital world, have tremendous business opportunities ahead. The These roles have to be integrated and aligned age of collaborated regulation is dawning upon toward the common cause. Limitless possibilities the industry, and is being championed by the ITU. can be created through this approach. Representation of the private-sector, including of the telco sector, is rising within the ITU as well, It is generally accepted that an inclusive dialogue driven by global platfroms like the CRO Meeting, among the key stakeholders on creating a policy which SAMENA Council has the privilege to lead. environment that would cause sustainable development to materialize, is the single most In order to realize the level of co-operation important step toward creating a new, viable and collaboration required, we need to future for all. With the initiatives SAMENA calibrate our collaborative efforts on three Council is undertaking under the leadership of core areas of stakeholder engagement and its stakeholders, the largest regional telecom industry development: broadband, innovation, operators, a bright future for stakeholder and co-operation. Doing so will facilitate an cooperation rests before our eyes. improved understanding of the current situation within the industry in support of broadband infrastructure development needs from both end-user connectivity and operators’ investment perspectives; defining industry-wide cooperation with a new perspective and to set new priorities for collaborated action; and to underpin an affirmed

Yours truly,

Bocar A. BA Chief Executive Officer SAMENA Telecommunications Council

page_3 SAMENA COUNCIL ACTIVITY

SAMENA TRENDS _ MAY 2016

HOST SPONSOR

Smart Learning Signing Program Initiatives Education is not just good for students, it is great for This strategic agreement is aimed to coordinate the entities’ nations. We truly believe that education is the single- joint efforts in assisting and providing consultation to most important driver of economic empowerment for countries who have expressed interest in formulating individuals and countries alike. No one understands national policies within the framework of ‘smart’ learning. this better than the UAE’ leadership who have and According to the terms of the agreement, the UAE will continue to invest heavily in their citizens, especially become the ‘smart’ learning hub for the region and the the youth, to encourage greater growth and social world. But what does it all really mean and where do we go well-being for the future. The UAE is working towards from here? establishing a sustainable future with knowledge, science, technology and innovation at its centre as As per the agreement, the parties will organise four stipulated in the Technology and Innovation Higher workshops either online or onsite during 2016-2017, with the Policy adopted just last year. It is no surprise then that aim to spread awareness and build the capacity to formulate 2016 was also declared as the Year of Reading to boost national policies with regards to the implementation of the UAE’S position as global capital for knowledge and special smart learning strategies. In addition, they will culture. encourage and recommend the best practices in the field of ‘smart’ learning based on the principles of Mohammed Bin Earlier this month, the Regulatory Rashid Smart Learning Program. But this is just the tip of Authority (TRA) signed a cooperative agreement with the ice-berg and the ‘smart learning’ Middle East engine is the International Telecommunication Union (ITU), only just warming up. the UN’s specialised agency for information and communications technologies, and Mohammed Bin We at the Program believe that sharing experiential Rashid Smart Learning Program (MBRSLP) during their knowledge is a key ingredient in innovation. Knowledge participation at the SAMENA Telecom Leaders’ Summit exchange also equates to efficiency in more ways than 2016, the region’s most prestigious thought leadership forum for the telecoms sector.

page_4 SAMENA COUNCIL ACTIVITY

SAMENA TRENDS _ MAY 2016 one – it means that we spend less time and money when Framework”, after a successful trial period in 2015. The we make use of effective knowledge and tried and tested framework, a first of its kind in the region, is a core pillar methods. What you give in, you truly get back and reap the of the Program and has been specifically tailored to suit benefits. Since the Program’s inception, we have worked to educational institutions in the UAE under the supervision of incorporate global standards and provide an ideal model international world renowned experts. The holistic framework for ‘smart’ learning in line with UAE Vision 2021 at the same offers schools the tools to assess the effective application of time. technology across all of its 202 schools. It provides a self- managed framework to educators to empower them in their ICT journey and allows them to design suitable roadmaps To that effect, we have just wrapped up a meeting in to achieve goals for technological advancement. The Helsinki, Finland, where we met with some of the world’s “Smart School Transformation Framework” focuses on core leading education advocates from the countries including elements which cover leadership aspects, curriculum and Finland, , America, Canada, Australia, Hong resourcing learning, learning teachers and teaching, student Kong, South Africa and Argentina. The meeting brought and family context, assessment and student progress and together high-level leaders from around the world, to operational provision and management. collaborate on the future of learning. The UAE, which was selected primarily for its innovative strategic methods in transforming education through technology, will be one We have also introduced a Leadership Development of the pioneers in shaping the ‘Leading Countries of the programme which aims to enable school leaders to World’ program that leverages experiences from members understand the strategic role of technology, equip their to empower education systems, and enable all students to schools with effective practices and approaches and achieve more. This inaugural meeting will be the first of advance student learning through the use of the latest many where members will share learnings, tools, frameworks technologies. The premise behind initiatives such as and experiences, as well as begin to engage in collaborative this is to ensure that the technology-rich environments projects and share examples of transformation in areas such provided through the Program are complemented by the as STEM, personalized learning, deep learning, education professional development of educators, content generation and learning analytics, increasing access to learning through and management, as well as sharing best practices in the digital curriculum. integration of ICT in enhancing learning and teaching in the classroom. Over the past 20 years, Finland has become an educational tourism destination hosting a number of high profile events With the most recent initiative, we are confident that it will to share their approach to education – widely acknowledged solidify the UAE’s position as a regional centre for smart as one of the best in the world. To have been selected to learning, enabling regional countries to derive benefits from share our own expertise and experiences was both extremely the Program and adopt state of the art advanced techniques fulfilling and sobering as the UAE comes into its own in the to prepare our future leaders to be highly capable future smart education space. individuals in a knowledge led economies. We will work with our partners towards providing assistance and advice to countries in formulating national strategies and policies On a local or regional level, earlier this year we launched in the field of ‘smart’ learning. a unique initiative called “Smart School Transformation

Education empowerment lies at the heart of what we are trying to achieve, whether locally or globally. As an organisation, we believe in the empowerment of our educators, if we equip them with the knowhow and the resources to let them flourish, we have done our job. However, this is not to say that we will cease to innovate - on the contrary – we invest heavily on assessing the effectiveness of our techniques and methods to make sure that we are at the top of our game. To learn and be educated is after all a lifelong endeavour, even if you are on the side of the educator.

page_5 SAMENA COUNCIL ACTIVITY

SAMENA TRENDS _ MAY 2016

Telecom Leaders’ Summit 2016

New Success Factors for the Industry’s Digital Development Efforts:Stakeholder Inclusion, Alignment of Common Priorities, Partnership-oriented Mindset Leaders’ Summit 2016 Provides Perspectives on the Current State and Future Requirements of the Telecoms & ICT Industry

Each stakeholder has contributed noticeably to the progress of the SAMENA region’s telecommunications industry. Its future success, among many requirements, now rests on a complete makeover. Policy decisions and regulations made during earlier times and under past market conditions, or technology and infrastructure investments that were enabled and realized by telecoms operators, or the entry and onslaught of alternative market players, all have contributed to the growth of the telecoms and ICT marketplace over the years.

Understanding challenges of the digital economy and the stakeholders’ need for aligning common priorities in a better connected world are the new collaboration imperatives for shaping the future of the digital marketplace.

Digital development, given its central role in the development of digital economies and the creation of smart digital societies, not to ignore, with its myriad of private-sector and public-sector stakeholders and complexities across all dimensions, now demands an unprecedented level of cooperation and sector-wide understanding of stakeholder priorities. Devoid of a collective understanding of such priorities and issues, which could only be addressed through cross-stakeholder dialogue, no industry business model would work. That is, it is no longer feasible to achieve true progress, save time, realize operational efficiencies, meet national as well as international obligations, and ensure a viable and sustainable future for both business and socio-economic well-being purely based on individualized priorities and by maintaining a silo mentality.

page_6 SAMENA COUNCIL ACTIVITY

SAMENA TRENDS _ MAY 2016

It is a matter of utmost importance that future decision-making among stakeholders be aided in the best manner possible, generating prolific exchanges of information and knowledge among the decision-makers . To this effect, SAMENA Council’s Leaders’ Summit, an annual top-tier stakeholders’ meeting being organized since 2010, was recently held in Dubai, UAE.

More than ever before, some of the rarest congregations of regional and global leaders from the public and the private sectors were witnessed, including high-profile Some of the rarest meetings of industry decision-makers and the champions of ICT development. Two of the most important events congregations of regional and within the agenda of the Leaders’ Summit 2016 were global leaders from the public the ITU & Telecom Operators Meeting, which included representation from GSM Association, and the launch of and the private sectors were SAMENA Council’ Leaders’ Rountable (SALT), a platform for regulators and telecom operators to align themselves on witnessed, including high- common priorities. profile meetings of industry The central aim of this one-of-a-kind ITU & Telecom decision-makers and the Operators Meeting, envisaged and facilitated by SAMENA Council and held for the first time between ITU’s top champions of ICT development. leadership and telecom operators’ top leadership as a closed-door interaction, was to foster direct dialogue

foster fair market competition, the need to expunge the myth that telecom operators are overly profitable and thus should be heavily taxed, and an emerging trend of excessive regulatory interference under the pretences of consumer protection or national security, were among the areas of discussion of the meeting.

Similarly, the SALT Meeting brought regulators and operators together, to corroborate an industry-wide understanding that the business cannot continue in the same way and at the same pace as it was in the second or third-generation of the industry’s development. Regulatory perspectives drew attention to operators’ need to present recommendations and solutions to the issues they face, while operators’ perspectives focused on unnecessary regulatory interference and insufficient incentives to support operators’ investment and return- on-investment needs. As part of the new regulatory approaches, operators voiced their need for protection of their investment interests by the regulators. Conclusions drawn from the discussion in the meeting pointed to dialogue between telecom operators and the global UN sustaining such dialogue. For this purpose, the SALT telecommunications development agency, with the larger Meeting will continue to take place in the futur. purpose of inducing intellectual proximity among telecom operators and national telecom regulators. In the esteemed presence of International Telecommunication Union Secretary-General HE Houlin Responsibilities of telecom operators toward themselves Zhao, with active participation of top leaders from and toward the industry, need for fair regulatory approaches, telecom operators, including the SAMENA Council’s inclusion of over-the-top players into the regulatory to Board of Directors, as well as regulatory authorities from

page_7 SAMENA COUNCIL ACTIVITY

SAMENA TRENDS _ MAY 2016

the region, Leaders’ Summit, one of the regional industry’s Key insights from leaders’ dialogue included: most anticipated top executive events, brought together • The need for more partnership-oriented mindset renowned personalities from the Middle East, Africa, Asia reiterated Pacific, South Asia, and Europe. • SAMENA Council’s efforts in promoting local and regional ICT developments recognized by regulatory A key milestone witnessed by the regional public-sector bodies and private-sector leadership during the Leaders’ Summit • Emphasis placed on the need to invest in capacity and was the signing ofa MOU between Mohammed Bin Rashid building the ecosystem as well as robust frameworks Smart Learning Program (MBRSLP), the International for collaboration and cooperation between telecom Telecom Union (ITU), UAE’s Ministry of Education, and regulators and operators Telecom Regulatory Authority of the UAE. The signing • ITU’s support to the industry, including the need ceremony was attended by dignitaries from the UAE as well for spectrum, especially with rising focus on as from other regional governments, Group CEO’s from the development, communicated during stakeholder region’s largest telecom operators, including top leaders meetings from SAMENA Council’s member companies. • The need to rethink the new definition of broadband

page_8 SAMENA COUNCIL ACTIVITY

SAMENA TRENDS _ MAY 2016

In addition the leadership dialogue, the participants’ In addition the leadership dialogue, responses to automated survey questions further provided insights into the biggest perceived current challenge that the participants’ responses to the industry faces; that is, fragmented regulatory guidelines automated survey questions further and issues in effective stakeholder cooperation. A significant percentage of the audience, through the automated voting provided insights into the biggest system, indicated that many countries have yet to set priorities on framing national ICT development plans; a challenge that perceived current challenge that the can be overcome through better communication. Regarding industry faces; that is, fragmented IoT, no responses related to IoT’s impact on education were indicated, which shows that the industry has yet to define regulatory guidelines and issues in diverse roles of IoT and that much potential for tapping IoT’s effective stakeholder cooperation. hidden opportunities, including in the education sector, exists.

• New perspectives on artificial intelligence (AI) and virtual reality (VR) as the next big things in our technological evolution, and, contrary to the common belief, their positive impact on job-creation for humans • Operators’ and regulators’ consensus on adopting a common language to be able to communicate more effectively • Common understanding on the prevailing disconnect between operators and regulators, addressing which is imperative to fulfilling visions of digital and socio-economic development • The need for pro-investment frameworks instead of the current purely customer-oriented frameworks • The need for for creating good environment among operators and regulators, and the realization among regulators to adopt a level- down approach toward regulation • Operators’ belief that with demand for less regulation comes a responsibility to commit to fulfilling certain responsibilities • The concept of a global telecom operator introduced in continuation of a reference made to “nation-oriented” approaches by telecom operators

page_9 SAMENA COUNCIL ACTIVITY

SAMENA TRENDS _ MAY 2016

Leaders’ Summit 2016 was a direct indication of the advocacy and lobbying efforts that SAMENA Council exerts on behalf of its telecom operators. The presence of both global and regional top leadership in the Summit evidenced willingness among decision makers to understand and address the industry’s challenges that could impact the growth of many other sectors related to ICT development. High profile reminders, such as given by HH Sheikh Nahyan bin Mubarak Al Nahyan, reverberated with the realization that SAMENA Council must contribute to global ICT development. Expressions of faith and trust shown in SAMENA Council’s capacity to change the world and bring transformation to the economies of the region provided sufficient proof of the success of the Leaders’ Summit and the fulfillment of the objectives for which the Summit was held, High profile reminders, such and, moreover, in which the imperative to ensure stakeholder inclusion, align common priorities, and as given by HH Sheikh Nahyan adopt a partnership-oriented mindset was redefined. bin Mubarak Al Nahyan, reverberated with the realization that SAMENA Council must contribute to global ICT development. SAMENA Telecommunication Council Team

page_10 TECHNOLOGY UPDATES

SAMENA TRENDS _ MAY 2016

an emphasis on quality live experiences that allows content creators to produce Kastr Set to Reinvent Live interactive programming on-the-go on Broadcast Mobile Experience their own terms.” Joining Adrian is a stellar team of co- founders including YouTube sensation Kurt Schneider who boasts almost 7 million followers on his channels (1.8 BN views) and Social & Digital Entrepreneur, Rishi Mehta.

The Kastr platforms focuses on creative expression – allowing singer/songwriters to have real-time engagement with audiences, fashion/beauty bloggers to create live shows for fans, personal trainers to offer live interactive workouts, chefs to cook alongside their audiences, teachers to provide live interactive lessons and many more.

Anticipation of Kastr is high, having already secured multi-million dollar investment from investors including European media powerhouse ProSiebenSat1 and attracting some of the world’s most successful social influencers with a total of 350M followers as confirmed content creators.

“We listened to what content creators really want that is not out there at the moment and focused on meeting their Kastr, the next-generation live video requirements,” says Woolfe. “We want broadcasting network, launching this to empower users to create a new, summer, is set to reinvent the world of more professional type of content – live, real-time content on the go. interactive, formatted shows that allows them to engage more intimately than Kastr allows users to create a more ever before with their followers”. professional type of content; live, interactive, formatted shows that gets For users, Kastr offers exciting features them closer than ever before to their that allow users to co collaborate with followers and also, to generate revenue other influencers and their audience in and grow their business in the process. real-time and to literally ‘pull’ fans on stage with them. Created by a heavyweight global team of tech and entertainment entrepreneurs, Kurt Schneider commented: “As a visual Kastr pushes the world of video live- creator, I love the idea of fans being part streaming to the next level with a focus on of my creative process and interacting quality broadcasting - taking inspiration with films while I am making them. Kastr from quality live television formats re- provides a world of interaction that hasn’t imagined for the mobile age. been brought together in a live format before”. Kastr is the brainchild of tech and media entrepreneur Adrian Woolfe, This level of interactivity allows deeper who previously, as managing director of levels of engagement between viewer Celador, was instrumental in developing and creator, as well as a standard of and growing the television format Who content that viewers will want to record, Wants To Be A Millionaire into a $1BN re-watch and share on other social media global content and IP business. platforms. And if viewers miss their Adrian Woolfe favourite show on Kastr? They can watch CEO He explained: “Live-streaming is a it on a 30 day catch-up. Kastr huge trend in digital but the content experience being created leaves a lot to For further information: www.kastr.tv or be desired. Kastr will change that with [email protected] or +44 7701 040087

page_11 TECHNOLOGY UPDATES

SAMENA TRENDS _ MAY 2016

Moving to SIP trunks SIP trunks have been around for a number of years, and are essentially IP telephone line trunks from the enterprise telephony system to their service provider. They allow enterprise users to make calls Dealing with the Great to other parties outside of company network.

ISDN Switch Off SIP Trunks can be terminated anywhere on the enterprise network rather than The telephony network is undergoing a locally, like ISDN. For example they could major transformation with the end of the be terminated in the data center to help ISDN network. Throughout Europe and consolidate communications across all beyond, service providers are switching sites. There are a wide range of benefits off their ISDN networks and migrating to using SIP trunks over ISDN, including their customers over to SIP trunks. convergence, cost savings, integration with cloud services and resilience. One by one, the incumbents will be switching their ISDN network off over the The main barrier to moving wholesale next decade. The first service providers over to SIP trunks has primarily been have already made the switch, including a regulatory one because it is a voice Slovakia and Macedonia. Most have made service. This has meant that SIP trunks their plans public, including have been primarily used by service (2017), Deutsche Telekom (2018), Orange providers to deliver international calling, (2020) and BT (2025). while the incumbent has continued to offer local services such as local calling For service providers, the migration is and emergency calls. inevitable, as they don’t want to operate two separate networks – a TDM one for However telecommunications regulation voice and an IP network for everything is changing in many countries and service else. This is a significant undertaking – providers are now able to offer a full-IP in the UK for example, BT operates 3.2 service which includes local inbound and million ISDN channels. outbound calling. For example, Orange Business Services can currently provide But this move isn’t just a benefit for a fully-unplugged service in 24 countries service providers, switching over to an and territories. This means that there is all-IP network also allows enterprises Spyros Salpeas no need to wait for the incumbent service Head Global Services, MENAT to ditch their voice connections and provider to switch off their ISDN network Orange Business Services gateways to enable the full convergence to make the move to SIP trunks. of voice and data.

page_12 TECHNOLOGY UPDATES

SAMENA TRENDS _ MAY 2016

TECHNOLOGY NEWS

Nokia and MTS Group to optical network (XG-PON) technology. The service will enable Etisalat to provide Collaborate on IoT and 5G gigabit services over its fiber-to-the- in Russia home (FTTH) networks in the UAE, though a commercial launch date has still to be Nokia and Russia’s MTS have signed a announced. The companies say that this collaboration agreement that will create a was the first trial of XG-PON to be carried path to the realization of 5G technology. out in the Middle East and Africa (MEA) The companies will deploy a test network region.e students who were able to do during an international sports event in that!”­ Russia in 2018. It is estimated that the Internet of Things (IoT) will result in 10 to 100 times more connected devices Ligado makes 5G case to TECHNOLOGY than people, creating technological challenges, but also opportunities, for FCC UPDATES new services and applications. With this Ligado Networks is pushing ahead with in mind, MTS has outlined a roadmap plans to build a 5G network in the US, to evolve its networks to 5G. Together revealing details of a proposal to national with Nokia, MTS Group will develop test regulator Federal Communications projects that leverage technologies Commission (FCC) to use its mid-band such as LTE-Advanced Pro as well as 5G spectrum for the roll-out. Ligado, which to enable faster speeds, lower latency and rebranded from LightSquared in February new spectrum efficiencies. In 2018, the after emerging from bankruptcy last year, two companies will implement a 5G test said “it is eager to be an integral part of network in a Russian football stadium to this new wireless age”, with ambitions to allow fans to experience video and other “finally” deploy its mid-band spectrum for services during the major event being third party use, and solve the country’s staged there. “data-driven” problem. Formerly known as LightSquared, the company filed for bankruptcy protection in 2012 after being Etisalat and trial banned from launching a wireless network, 10Gbps fiber technology using the mid-band spectrum, by the FCC, following objections from the country’s United Arab Emirates (UAE)-based telco GPS players. Since it began operating Etisalat is working with Chinese equipment again, it has talked up its desire to use vendor Huawei to test 10Gbps passive

page_13 TECHNOLOGY UPDATES

SAMENA TRENDS _ MAY 2016 the spectrum “to support the growing number of connected applications on the market”. In a blog post, Ligado CEO Doug Smith said the company worked with interested stakeholders in government and across industry on its 5G plan, which proposes the use of mid-band spectrum “as a greenfield opportunity that is aligned with commission’s stated goals of providing the foundation of the 5G future”. “By deploying at least 40MHz of smart capacity on mid-band spectrum, we can create a model of at least a partial 5G network… that will enable 5G use cases and mobile applications that as enhanced carrier aggregation and However, as the spectrum is shared require ultra-reliable, highly secure LTE Broadcast; coverage and capacity by numerous technologies and the and persuasive connectivity,” he improvements using LTE-Unlicensed number of users increase, quality and added. It also wants the FCC to bar (LTE-U) and Licensed Assisted Access speed can suffer. The test - which used terrestrial use of a 10MHz block near (LAA); Internet of Things (IoT) projects Nokia’s FlexiZone small cells together the GPS frequencies, proposing that using Narrow Band IoT (NB-IoT), LTE- with MulteFire - showed the block should be used for satellite Machine (LTE-M) and Extended Coverage how MulteFire can co-exist with Wi- only, and lobbied for “a government GSM technologies; and demonstrations Fi to deliver the high performance, conducted single national auction, for of 5G and dual connectivity of LTE and high speeds and security offered spectrum adjacent to our upper band”. 5G technologies in the centimeter band. by LTE in a densely populated Smith added that the GPS industry Previously, MTS signed a Memorandum environment. MulteFire complements “has demonstrated acceptance of our of Understanding (MoU) with Sweden’s heterogeneous networks (HetNets), proposal and will likely benefit from Ericsson in December 2015, covering which use a mixture of macro and it”, adding that there is no evidence cooperation on 5G research and small cell radios, allowing operators that GPS users or manufacturers deployment in Russia, including spectrum to meet the increased connectivity will be harmed. Ligado has reached studies of the next generation network and demands of future smart cities and the settlements with three GPS device the building of a test system. Specifically, Internet of Things (IoT). Waseem Al- manufacturers, following long running the MTS/Ericsson partnership covered a Marzogi, Head of STC Group Business, court battles, since emerging from pilot project for LTE-Unlicensed (LTE-U)/ Nokia, said: “As one of the founding bankruptcy. “We’ve taken all of Licensed-Assisted Access (LAA) in the members of the MulteFire Alliance, these steps because we genuinely unlicensed 5GHz band in 2016 followed Nokia is driving the development believe Ligado’s mid-band spectrum by the deployment of 5G pilot solutions of a global technical specification, is complementary assets that will using high-speed data transmission and this test is a crucial step toward fill an essential need in future 5G in the 15GHz band in 2017, ahead of commercialization of the technology. deployments,” added Smith. the construction of the test area for By collaborating with operators like the demonstration of 5G technology STC, we can develop new ways of solutions during the World Cup 2018 utilizing spectrum such as 5GHz to MTS signs new 5G football tournament in Russia. meet the network demands of today agreement with Nokia and tomorrow.” Russia’s Mobile TeleSystems (MTS) and Finnish tech giant Nokia have announced Nokia and STC Conduct Global internet users the signing of a new collaboration Test of Technology to Bring to double in next 30 agreement on developing 5G services, LTE-like Performance to under which the partners will deploy months – CTA a sports venue test network in Russia Wi-Fi The number of people using the in 2018. In the meantime, MTS will Nokia and the Saudi Telecom internet is forecast to double to six also test systems with Nokia based on Company (STC) have conducted a billion over the next 30 months, with technology platforms including LTE- test of MulteFire technology, which mobile giving that growth the biggest Advanced Pro alongside nascent 5G combines the performance of LTE with push, according to figures from the architecture to enable faster speeds, the simplicity of Wi Fi deployment Consumer Technology Association. “It lower latency and greater spectrum in unlicensed spectrum bands such took about 50 years to get to the first efficiency. A press release notes that the as 5GHz. As data demand continues three billion people on the internet; implementation of a 5G test network unabated, mobile operators want to it will take 30 months to get the next in a Russian football stadium will allow explore more opportunities in other three billion on the internet,” said spectators to experience innovative spectrum bands, for example the Shawn DuBravac, chief economist video and other services. Alongside the 5GHz band, to reach more of their and senior director of research at the 5G test network deployment itself, the subscribers in private enterprise Consumer Technology Association, MTS/Nokia testing program will focus networks such as stadiums, office organizer of this week’s event. He on areas including: implementation blocks, shopping malls and airports. said the mobile environment has of LTE-Advanced Pro features such

page_14 TECHNOLOGY UPDATES

SAMENA TRENDS _ MAY 2016

“really started to influence and system is still in the experimental Department of Physics Àlvar Sánchez define how consumers are using the stage, but once it has been perfected (also an ICREA Acadèmia researcher) internet”, and gave the example of and can be applied to mobile and Carles Navau, and by Jordi Prat, how mobile already accounts for the devices, it will be able to charge them currently researcher at the Institute majority of online payments in many wirelessly and at a longer distance for Quantum Optics and Quantum countries. DuBravac pointed to the than currently possible. Today’s Information of the Austrian Academy surprising stat that improvements wireless devices make use of induction of Sciences in Innsbruck. The device in voice-to-text technology over the to charge through a special case has been patented by the UAB and last 30 months have surpassed all adapted to the device and a charging companies from several different the advances from the previous 30 base connected to an electrical socket. countries have already shown years. In 1995 the word rate error was When the device is placed on top of interest in applying the technology. close to 100 per cent, by 2013 that the base, this generates a magnetic The research was funded by the had dropped to 23 per cent and last field which induces an electric current PRODUCTE project of the Government year it was down to just 5 per cent. inside the case and, without the of Catalonia, the European Regional The reason for the slow development: need of using any cables, the device Development Fund (ERDF) and the a lack of investment, he noted. He is charged. If the device is separated Spanish Ministry for Economy and also outlined five different levels of from the base, the energy is not Competitiveness. automation for automobiles, from zero transferred efficiently enough and to fully autonomous, and noted that the battery cannot be charged. The Google vehicles have already clocked system created by UAB researchers Nokia and Ooredoo up more than 1.6 million kilometers overcomes these limitations. It is made Qatar Sign Three-year on the roads, which is more than the up of metamaterials which combine average driver in the US would drive layers of ferromagnetic materials, such Network Expansion in 75 years. Since all the data is shared as iron compounds, and conductor Agreement across Google vehicle’s platforms materials such as copper. The in near real-time, it accelerates metamaterials envelop the emitter Nokia and Ooredoo Qatar have learning and the effectiveness of and receiver and enable transferring signed a three year agreement under that driving environment. This a type energy between the two, at a distance which Nokia will upgrade and expand of aggregation learning that can be and with unprecedented efficiency. Ooredoo’s existing mobile broadband applied to other sectors such as smart With the use of metamaterial crowns network across the country. Under homes and smart cities, he said. On researchers were able in the lab to its Supernet initiative, Ooredoo is the topic of wearables, he said we’re increase the transmission efficiency already using Nokia’s LTE-A carrier starting to see a shift from what is 35-fold, “and there is much more room aggregation technology to offer possible from a technological point for improvement, since theoretically subscribers with compatible mobile of view to what is technologically the efficiency can be increased even devices up to 375 megabits-per- meaningful. “In the last couple of more if conditions and the design of second speeds in busy areas of Doha, years I’ve seen the conversation move the experiment are perfected” explains Qatar’s capital and most populous from not just the specifications of Àlvar Sánchez, director of the research. city. In a recent demonstration, the the device, but looking at the user “Enveloping the two circuits companies achieved peak data rates experience, how it fits into people’s with metamaterial shells has lives and integrates into their activities. the same effect as bringing That is what will enable wearables to them close together; it’s as fit in.” if the space between them literally disappears”, states Jordi Prat, lead author of the Distance Wireless Charg- paper. Moreover, the materials ing Enhanced by Mag- needed to construct these crowns such as copper and netic Metamaterials ferrite are easily available. The Wireless charging of mobile devices first experiments conducted is possibly one of the most desired with the aim of concentrating technological milestones. Some static magnetic fields required devices can already be charged the use of superconductor wirelessly by placing the mobile metamaterials, unfeasible for device on top of a charging base. everyday uses with mobile The next step, charging devices devices. “In contrast, low without the need of taking them out frequency electromagnetic close to 600 Mbps. Under the new of one’s pocket, might be just around waves - the ones used to transfer agreement, Nokia will deploy its radio the corner. A group of researchers energy from one circuit to the other and core network technologies and from the Department of Physics of - only need conventional conductors services expertise. Waleed Al-Sayed, Universitat Autònoma de Barcelona and ferromagnets”, Carles Navau Chief Executive Officer, Ooredoo has developed a system which can explains. Published this week in Qatar, commented: “We continue efficiently transfer electrical energy Advanced Materials, the study was to enhance the Ooredoo Supernet between two separated circuits thanks conducted by researchers from the to deliver the best possible Internet to the use of metamaterials. This Electromagnetism Group of the UAB

page_15 TECHNOLOGY UPDATES

SAMENA TRENDS _ MAY 2016 experience, working with a range of however “consumers will struggle with international technology leaders such the US streaming giant’s one-size-fits- as Nokia. By deploying these cutting- all offering,” said researchers. Vindicia’s Bahrain upgrades edge technologies from Nokia, we will Schulz added: “The next 12 to 24 4G to 150Mbps; also continue to actively boost network months will function less as a test of performance from through to whether or not premium OTT will take implements ‘world first’ LTE-A, and deliver a host of social, off, but more as a measure of how it will triple-beam antenna financial and business benefits for penetrate popular appetites. Among Viva Bahrain, owned by Saudi Telecom Qatar.” the creative and flexible approaches Company (STC), has announced to generating reliable revenue, service the successful completion of a 4G providers will need platforms that LTE network upgrade, boosting the Asia Pacific OTT market to can accommodate a range of content maximum end-user mobile data experience exponential delivery and payment preferences”. speed by 50%, now offering peak network speeds up to 150Mbps, growth whilst giving the operator ‘the ability Revenues from the over-the-top (OTT) MCIT issues draft to handle major network capacity and video market in the Asia Pacific region regulation on OTT in continue delivering next-generation are expected to grow rapidly between technologies’. The cellco’s website now and 2019, according to research Indonesia announcement claims that ‘having consultancy MTM. Focusing on the key Indonesia’s Ministry of already established Bahrain’s widest markets of Australia, Indonesia and Communications and Information 4G network with more than 500 Thailand, the study – commissioned Technology (MCIT, also known locally 4G sites across the country, Viva’s by technology companies Vindicia as KemenKominfo) has published a recent upgrade meets the growing and Ooyala – found that OTT services draft ministerial regulation governing needs of Bahrain’s highly connected would flourish, in spite of challenging the provision of content over the environment and fulfils customers’ broadband infrastructure and need internet by over-the-top (OTT) ongoing demand for … voice and data for greater content localisation. MTM providers. IndoTelko writes that, before capacity’. Viva Bahrain has also recently forecasts that Australia’s premium OTT being put into effect, the regulation claimed a ‘world first’ by implementing market will grow from around US$85 is being tested publicly until May a ‘triple-beam’ antenna installation, in million in 2015 to $230 million in 2019; 12, 2016. In brief, the draft requires partnership with China’s Huawei, which Indonesia’s from $7 million to $40 that: the OTT operate in the form of delivers almost triple the capacity of million; and Thailand’s from $8 million a permanent establishment [but can conventional mobile towers. ‘Jointly to $45 million. Local service providers be] either foreign or local players; will own a significant portion of the OTT players must market and will dominate in Indonesia register their business and Thailand, while Netflix will be forms and activities the dominant player in Australia, to the Indonesian researchers predict. Broadband Telecommunications infrastructure challenges and limited Regulatory Body access to affordable fixed-line services (ITRB) no later than are, say the industry executives 30 working days prior canvassed, “significant barriers to to providing services growth” for OTT services in the mobile in Indonesia by first Asia Pacific market. In Australia, attaching the required the average connection speed is documents; and, 8.2Mbs, about half that of the UK and if the OTT is in the US. Thailand has a similar average of form of foreign direct 9.2Mbs, but only 9% of consumers investment (FDI) then subscribe. In Indonesia, there is only they shall attach the 1% broadband penetration with permanent business license from with Huawei, we have achieved a great an average speed of 3.9Mbs, says the Investment Coordinating Board technological breakthrough,’ said MTM. In addition to international (BKPM). Furthermore, it is understood Viva Bahrain CEO Ulaiyan Al Wetaid, content, the 80 respondents felt local that the regulation will also require the whilst Huawei’s Peng Honghua added: language programming is essential OTT service provider ‘to comply with ‘Both companies worked closely to to the proliferation of premium OTT the provisions of the legislation in the ensure the successful deployment of services in Indonesia and Thailand, field of: prohibition of monopolistic Huawei’s solution, making Viva the with intense competition among local practices and unfair business first operator in the world to use it for pay-TV providers over licensing of competition; trading; consumer commercial purposes.’ local content. “There’s no doubt that protection; intellectual property Asia Pacific is a hotbed of premium rights; broadcasting; film; advertising; Triple Zero (000) Calls OTT service expansion that will evolve pornography; anti-terrorism; taxation; from Mobiles Easier to based on regional nuances, tastes and transportation and logistics; tourism economics,” said Bryta Schulz, senior and hospitality; finance; health; and Locate vice president of marketing, Vindicia. / or regulations and other relevant Calls in Australia to Triple Zero (000) The regional presence of Netflix will, in legislation.’ from mobile phones now contain general, drive OTT market expansion, improved location information,

page_16 TECHNOLOGY UPDATES

SAMENA TRENDS _ MAY 2016 following upgrades to the Triple Zero them”. Smart technology, including for hire via , gathered (000) service. Of the 8.3 million calls ride sharing and autonomous driving, relatively little enthusiasm (8% saw made to Triple Zero (000) in 2014- will focus on technology that has “the them as the most useful). Intelligent 15, 66.9 percent -- 5.6 million -- potential to fundamentally change streetlights were instead deemed the were from mobile phones. “Locating how cities are planned, function, most useful by respondents (29%). callers quickly in an emergency and how the Australian economy The IET is therefore advocating an situation is vital, and I congratulate grows.” As part of the new plan, the approach that favors wider citizen the mobile carriers and emergency Australian government will establish engagement right from the start. This services organizations (ESOs) on this an infrastructure financing unit, which bottom-up approach, coupled with a tremendous initiative,” said acting will work closely with the private sector strong collaboration between citizens, ACMA Chairman, Richard Bean. “Optus, on innovative financing solutions. The local and national government, might , Telstra (in its capacity as government is also committing AUD well be the key to steer clear of smart mobile carrier, the emergency call 50 million (US $38.3 million) toward city utopia. Ultimately, citizens will provider and initial answering point the acceleration of planning and vote with their wallet on these new for Triple Zero 000 calls) and ESOs development on major infrastructure connected services. have been working in partnership to projects “with the goal of developing upgrade their relevant systems,” he business cases and investment added. Announced at a recent meeting options”. The Australian government As Phone Market of the Australian Communications has also presented its vision for a Matures, Display Makers and Media Authority’s Emergency ”30-minute city”. In practice, this Call Services Advisory Committee, means any resident should be able to Turn to In-Cell and On- all ESOs throughout Australia access employment, schools, shopping Cell Touch Technologies have implemented functionality and services within 30 minutes of to automatically receive better home. The plan has received mixed As the market slows, information about the location responses in Australian media with display manufacturers are looking to of a mobile caller to Triple Zero some finding the plan, in particular new in cell and on cell touch screen (000). Unlike fixed landline phones, the ”30-minute city” vision, bordering solutions that offer consumers emergency calls from mobile phones on utopia or falling short of Australia’s thinner and brighter displays, while have not previously been able to infrastructure requirements. Navigant shortening the supply chain for automatically give emergency services Research forecasts that the global manufacturers. As panel potentially helpful information about market for smart cities technology makers promote these new solutions, the caller’s location. Emergency will be worth approximately $27.5 and offer aggressive pricing as well, services can now receive automated billion annually by 2023, up from in-cell and on-cell touch solutions location information derived from the $12.1 billion in 2016. Using digital are expected to comprise half of all mobile networks for most phone calls technology to monitor, manage and smartphone displays shipped in 2017, to Triple Zero (000). enhance infrastructure and public according to IHS. With the advent of services promises to deliver wide- active-matrix organic light-emitting ranging societal benefits, starting with diode (AMOLED) used in smartphones, Australia unveils $38.3 job creation. For this to happen, vision new touch solutions are emerging that boast greater flexibility, lighter weight million smart cities plan must translate into action and start with engaging the user community. A and other feature improvements. Not a day goes by without a new traditional top-down approach might Emerging touch solutions for flexible city or a new country unveiling an not be the best way to achieve a high displays are expected to grow more ambitious plan for smart cities. With level of commitment among users. than 50 percent in 2016 compared to 80% of its economic activity taking A recent survey conducted in the the previous year, which will bolster place in cities, Australia needs a game UK by the Institution of Engineering revenue levels, according to the latest plan for its urban future. And on Friday, and Technology, “Smart Cities – Time IHS Touch Panel Market Tracker. “Since Australia’s Prime Minister Malcolm to involve the people“ found there Samsung announced their Galaxy S6 Turnbull announced a smart cities plan was a lack of awareness about what Edge smartphone last year, flexible based on a new federal framework for a smart city is and which benefits it displays have grabbed consumer policy that aims to position Australian can offer among surveyed citizens. and industry attention,” said Calvin cities “for success in the 21st century Only a third of respondents were Hsieh, director of display research for economy,” he said. The plan, which indeed able to accurately select the IHS Technology. “Flexible AMOLED lacks some level of detail on how right definition for a smart city when displays offer many more features exactly it will be carried out, has asked to do so, while a fifth was than traditional rigid AMOLED and three pillars: investment, policy and unsure. Another 8% said a smart city LCD displays, which is an attractive technology. Smart investment is to give was “a city that has a higher than proposition for device makers and priority to projects meeting ”broader average proportion of universities and consumers.” economic and city objectives,” while colleges and aims to attract the most smart policy entails collaboration intellectual” and 5% described it as “a across all levels of government in city that has a strict cleaning regime order to develop city deals, through for its buildings, roads and public which governments, industries and places”. Furthermore, services that communities will develop “collective are today heralded as core to smart plans for growth and commit to the city development, such as driverless actions, investments, reforms and or electric cars and buses available governance needed to implement

page_17 TECHNOLOGY UPDATES

SAMENA TRENDS _ MAY 2016

Adapt to Survive: The Evolution of Telecom Offerings to Satisfy the Modern Customer

Traditional telecom services enjoyed Leveraging existing infrastructure years of uninterrupted growth with little and networks presents enormous change to voice and messaging services opportunities for Mobile Operators. so it is no surprise that these giants of The spending power of these giants will the communications field have struggled outmatch any OTT player and as such, to evolve their offerings to align with Mobile Operators will go on providing today’s customer demands. the network that allows OTT players to survive. New products and services in It is no big secret that traditional new verticals can and are being explored telecom services are being challenged by Mobile Operators in a hunt to replace from a growing number of threats. the revenues that are rapidly being lost in Mobile Operators have had to deal with voice and messaging. Mobile represents the erosion of traditional revenues of 47% of all screen time according to voice and messaging by the increasing a report by Millward Brown entitled popularity of OTT players who provide ‘Global Mobile Behaviour’ and this is and arguably better alternatives to likely to rise further as take a traditional voice and data services. To stay larger share of the Smartphone market. competitive, huge investments have been With these advances in social behavior Conor Stirk made to data networks and infrastructure and technology, Mobile Operators will Marketing Executive to provide greater connection speeds via likely take a more centralised role in SLA Digital 4G, greater coverage and cheaper prices provisioning the global future of mobile if customers are to remain loyal. however simply providing connectivity will not be enough and Mobile Operators will have to develop new core offerings

page_18 TECHNOLOGY UPDATES

SAMENA TRENDS _ MAY 2016

that replace revenues lost to voice and messaging and between Mobile Operator and a third-party service provider. address challenges that an internet-based ecosystem At SLA Digital we have certainly seen first-hand the growing presents. trend in Mobile Operators partnering with both OTT players and third-party service providers to explore and evolve In a previous article, Digital Services: Partnering is Key offerings into the internet space. to Success, SLA Digital discussed that more and more Mobile Operators are discovering the value in partnering Due to the heavily regulated nature of Mobile Operators, with OTT players and this certainly appears to be a trend there is an opportunity to leverage this status to enter new within the industry with races between competing OpCo’s verticals in the finance, Government and commerce spaces to partner with the biggest OTT providers such as Spotify, to offer services in the identity and security spaces. Mobile Netflix and Viber in order to boost customer loyalty and Operators could also leverage subscriber trust to enter make their offering more attractive to subscribers. Whilst further verticals such as Analytics, monetising the huge the big brands may bring the customers to the Operator, amount of data available in both anonymised and identified SLA Digital have witnessed a shift towards partnering with forms. Whilst the future for traditional voice and messaging a variety of content providers including education, health services is uncertain for Mobile Operators and may in fact and lifestyle to centralise the Operator in customer’s daily lie in the hands of the OTT Player - like a phoenix from the experiences. These partnerships may come in the form of ashes, the expansion of internet-based ecosystems presents bundles where a six-month subscription with the service as a sandbox of opportunities for Mobile Operators to explore a caveat to a two-year plan or alternatively access may be and develop unique and innovative services that will firmly available through third-party providers of Digital Services place Mobile Operators at the epicenter of customer’s daily such as Carrier Billing. Whilst partnerships are certainly the lives – until the next landscape changing development at most notable way that Mobile Operators are evolving to least. an internet ecosystem, Mobile Operators are continuing to explore and develop new core offerings including Cloud, Billing, Analytics and Permissions – often a relationship

page_19 TECHNOLOGY UPDATES

SAMENA TRENDS _ MAY 2016

How Can Telecoms Heavyweights Avoid a Knockout?

Telecoms operators even in small went to messengers and network countries enjoyed sustained robust support came to rest on the shoulders financial performance in the 2nd half of of operators with all the burden of local the 20th century which led them to ignore troubles, regulatory compliance and vital strategic investments in innovations. hardware issues.

“Telecoms companies all over the world As a result, billions of people all over the missed the boat with the appearance of world are using messengers for making messengers, because they didn’t invest in calls and exchanging messages and the development of new technologies” - can hardly remember the name of their Vladimir Evtushenkov, co-owner of MTS mobile operator. (the largest mobile operator in Russia, with more than 107 mln. subscribers) - Telecoms businesses turned into local said in a recent interview. players, hopelessly trying to develop IT-competencies to a world-class level. However, operators did make big Messengers are winning this race, unsuccessful bets on becoming banks, because they were initially born to be instead of developing their natural global. Alexander Vityaz competence - communication. Founder Messengers are not running that Corezoid.com As a result of this loss of focus smoothly. No messenger in the world communications competence became has yet transformed into a full-fledged divided into two parts: communication mobile wallet that allows clients to

page_20 TECHNOLOGY UPDATES

SAMENA TRENDS _ MAY 2016 conveniently talk to brands and make purchases. WeChat enjoyed more success than other messengers, but it couldn’t make it beyond China.

While messengers fight for market share and search for ways of monetization, telecoms-operators are face a closing window of opportunity to coordinate their efforts to become players in the markets of and messengers.

How might the architecture of a solution to enable telecoms-operators to seize this opportunity look like?

Obviously, we need a messenger with an integrated monetization model - a business messenger - that will allow customers to easily communicate with entrepreneurs and payments systems as their allies.

This new Ecosystem should include a messenger, mobile wallet and “digital core” responsible for the work of core- processes and bots.

Implementation of such a vision is perhaps the last chance for modern mobile operators not meet the same fate as the previous generation of telecoms industry heavyweights (e.g. dial-up operators and broadband access providers) that became commoditized and forgotten.

page_21 REGIONAL & MEMBERS UPDATES

SAMENA TRENDS _ MAY 2016

MEMBERS NEWS

new platform with further channels.” Michel Azibert, ’s Chief Commercial and Development Officer, concluded: “With this new contract the ONT is strengthening its portfolio of capacity on Eutelsat, adding to resources already leased on three of our Tunisia extends broadcasting satellites, EUTELSAT 12 West B, BIRD of new free-to-air television and , for newsgathering platform with Eutelsat and broadcasting to the general public.”of The Tunisian broadcasting corporation information in this new digital age.” (ONT) has signed a multi-year contract with Eutelsat Communications to broadcast its MEMBERS new subscription-free TV platform across North and West Africa. ONT has selected UPDATES the powerful EUTELSAT 7 West A satellite to reach viewers across the region. The ONT is consolidating around ten Tunisian channels[1] in a single package at 7/8° West, Tunisia extends HKT named North Africa’s leading satellite broadcasting Best Asian Telecoms Carrier neighbourhood. EUTELSAT 7 West A’s and Best Broadband Carrier footprint also enables the ONT to extend at Telecom Asia Awards reach to West Africa. Homes equipped with a satellite dish pointing to 7/8° West will be 2016 able to enjoy improved image quality and HKT has won the top award of Best Asian easier navigation of the channels in the Telecoms Carrier at the Telecom Asia platform. Nôomên Elfehri, Tunisia’s Minister Awards 2016. HKT has also been named of Communication Technologies and Digital the Best Broadband Carrier award for the Economy, stated: “The launch of this national second consecutive year. Now in its 19th project is a vehicle for Tunisia’s sovereignty year, the Telecom Asia Awards is the region’s in the field of broadcasting. Viewers will be longest-running and most prestigious able to enjoy a diversified and quality line- telecom industry awards. It rewards up of Tunisian content.” Dhaker Baccouch, innovative and outstanding performance Chairman and CEO of the ONT, added: “In by Asian service providers and industry selecting the EUTELSAT 7 West A satellite, we executives. The Awards selection is made are providing viewers with improved image by an independent panel of industry quality and we are equipped to scale up our experts who cast votes on the basis of

page_22 REGIONAL & MEMBERS UPDATES

SAMENA TRENDS _ MAY 2016 innovation, financial performance, customers with the opportunity • Ekovolt (Nigeria) technology, market leadership and to experience the latest innovative • Wi-Fi Interactive Network corporate governance. The judge panel communications solutions. We also (Philippines) recognized HKT’s strong innovation look forward to welcoming potential • Application Solutions in a hypercompetitive market and its new customers to demonstrate the • Kelase (Indonesia) successful integration of CSL. HKT has excellent benefits that we can provide,” • Movivo (United Kingdom) been a leader of technology evolution said Mrs. Al Hashemi. “We have a very • Tambero.com (Argentina) in the market for many years. Last year, extensive portfolio of services and • VistaBotswana (Botswana) HKT set new benchmarks for the global solutions and we are building on this mobile market by demonstrating the solid platform by delivering further “With more than half of the world’s world’s first LTE-A 450Mbps solution innovative services which operate over population lacking access to the Internet, and the world’s first 4.5G 1Gbps both our fixed and mobile networks, connectivity is a global challenge that mobile network. In addition, HKT’s on any end user device, thus enabling demands creative problem solving,” international operating division has an integrated solution customized to said Peggy Johnson, executive vice achieved an industry milestone as the support all industries,” Mrs. Al Hashemi president of business development at world’s first MEF 100G CE 2.0 certified said. The addition of the new centre Microsoft. “By using technology that’s service provider. Mr. Alex Arena, enhances Batelco’s position in the available now and partnering with local Group Managing Director of HKT, said, market as an ICT solutions provider entrepreneurs who understand the “HKT is committed to fulfilling the capable of delivering integrated needs of their communities, our hope communication needs of our customers solutions that meet customers’ needs. is to create sustainable solutions that and improving their daily lives through Furthermore, Batelco’s Enterprise team will not only have impact today but also continuous technology innovation is ready to assist customers in adapting in the years to come.” and investment. We are ‘Building for new technologies to help them operate Tomorrow, Today’.” more effectively and efficiently. “Such ability has gained the company a regional and global reputation, which makes it the first choice for local and international companies setting up operations in the Kingdom of Bahrain,” concluded Mrs. Al Hashemi. Future of digital development Batelco unveils leading through stakeholder edge conferencing solution collaboration redefined at at the launch of new unified SAMENA Telecom Leaders’ collaboration centre Summit 2016 Batelco has launched a new Unified SAMENA Council’s Telecom Leaders’ Collaboration (UC) Centre at its Microsoft awards grants Summit 2016 opened in Dubai in the Hamala Headquarters. The state-of- for affordable internet esteemed presence of International the-art centre was officially opened on access Telecommunication Union Secretary- May 17 at a special launch ceremony General Houlin Zhao and with the ac- attended by Batelco Bahrain CEO Eng. Microsoft announced Affordable tive participation of top leaders from Muna Al Hashemi and other executives. Access Initiative grants for 12 both telecom operators as well as The leading edge facility has been entrepreneurial businesses to help scale regulatory authorities in the region. As designed to showcase Batelco’s their solutions and business models SAMENA Council’s most anticipated capabilities in delivering integrated to increase affordable Internet access stakeholder cooperation-building and voice, video, messaging, presence, in communities around the world. thought leadership industry gather- mobility and conferencing solutions, Microsoft’s Affordable Access Initiative ing, Leaders’ Summit brought togeth- as one seamless user experience. aims to democratize access to the er renowned personalities from the Batelco’s business customers may use Internet through grants, commercial Middle East, Africa, Asia Pacific, South the centre to immerse themselves in partnerships, connecting new leaders Asia, and Europe. A key milestone wit- the UC experience showcasing the and community engagement. nessed by the regional public-sector advancement of technology and its benefit of enhancing collaboration The winners are: by bringing individuals and teams • Power Solutions together in a seamless media-rich • African Renewable Energy environment. At the UC Centre, Distributor (Rwanda) customers will experience why • New Sun Road (Uganda) Batelco is the leader in innovation, • Hardware Solutions technology and lifetime support, and • Zaya Learning Labs (India how strategically Batelco will help them • Connectivity Solutions advance their technological roadmap. • AirJaldi (India) “We are delighted to officially open the • Axiom Technologies (United UC Centre to provide our enterprise States) • C3: Communications Consulting Centre (Malawi)

page_23 REGIONAL & MEMBERS UPDATES

SAMENA TRENDS _ MAY 2016 and private-sector leadership during and the private sector leadership to- a competitive ICT portfolio of end- the Leaders’ Summit was the signing of gether. Our business and our ecosys- to-end solutions in telecom and en- MOU between the International Tele- tem are very complex. Fortunately, the terprise networks, devices and cloud com Union (ITU), Telecom Regulatory quality of the gathering in our Leaders’ computing, all leading to enabling a Authority of the UAE, and Mohammed Summit here in Mina A’Salam clearly future information society and builing Bin Rashid Smart Learning Program indicates that our government and a better connected world. (MBRSLP). The signing ceremony was business leaders are not only ready to attended by dignitaries from the UAE embrace new insights and mutually re- as well as from other regional govern- warding ways to rethink, they are also ments, Group CEO’s from the region’s fully willing to define their success with largest telecom operators, including each other’s direct involvement. More- top leaders from SAMENA Council’s over, we are continually observing that board of directors, all of whom had government leaders are becoming rel- convened to participate in SAMENA atively more open toward understand- Orange Business Services Council’s Leaders’ Summit in Dubai. ing the pressing issues that the private improves collaboration The main panel discussion at the Sum- sector is facing.” On its third year as mit was an exchange of insights and host sponsor of SAMENA Council’s and IT flexibility at commentaries around the theme “Ne- Leaders’ Summit, Huawei was repre- AngloGold Ashanti with cessities of the evolving market and sented by Mr. Charles Yang, President hybrid network and cloud relevant legislation and regulation”. Dr. of Huawei Middle East and Mr. Charles Khaled Biyari Group Chief Executive Ding, Senior Vice President, Huawei services Officer of Saudi Telecom and -Chair Global, commenting on the success Orange Business Services has man of SAMENA Council led the dis- of the Summit, Mr. Yang said, “The announced the extension and cussion, reiterating the need for tele- SAMENA Telecommunications Coun- expansion of its network contract with com operators to expand their digital cil is defining a roadmap for contin- AngloGold Ashanti, one of the world’s visions in view of both business needs ued growth and transformation in an leading mining companies. The deal as well as socio-economic imperatives. industry that serves as the key driver delivers a range of network services Dr. Biyari remarked that “Success now for every sector in this digital era we across 44 sites in Africa, America and increasingly depends on gaining a are living in. As the leading solutions Australia to improve collaboration deeper understanding of the evolving provider to these networks, Huawei and securely manage internet and digital ecosystem and the value-chain, sees an open, collaborative approach cloud growth. Headquartered in developing or acquiring the capabili- as essential to shared success through Johannesburg, South Africa, AngloGold ties needed to flourish, and ensuring cross-stakeholder participation and Ashanti has 21 operations on three that such ecosystems remain sustain- we are keen to have our stakeholders continents and currently has several able. New partnership-oriented mind- take advantage of our ‘Open ROADS exploration programs underway in both set and strategies need to be adopted to a Better Connected World’ strategy established and new gold-producing across the stakeholder spectrum. For during this seminal event. This is an in- regions of the world. The multimillion telecom operators to thrive and not dustry-focused strategy that will drive dollar, multiyear contract builds on the simply survive such approaches are continued innovation by delivering ex- 12-year relationship between Orange integral to future success.” SAMENA ceptional services and experiences to and AngloGold Ashanti. The hybrid Council’s Leaders’ Summit 2016 was telecom customers. Our Global Con- network solution includes terrestrial also host to a number of high-level nectivity Index report being launched and satellite connectivity, managed meetings, including the much-antic- at this event demonstrates how ICT security and Business VPN Internet. It ipated meeting between the ITU and development can dramatically ac- will allow AngloGold Ashanti to securely regional operators and GSMA, which celerate economic growth, increase manage growing internet traffic and was specially facilitated by SAMENA GDP for any country, and deliver op- create a better end-user experience Council to assist in building better co- erational efficiency, productivity and for employees at all sites. The solution operation and understanding among quality across all vertical sectors. Mr. also enables worldwide application telecom operators and regulatory au- Ding sharing his insights about the of security policies and delivers the thorities with the active involvement leaders’ summit success highlighting flexibility necessary for enabling the use and advisory oversight of the ITU. that, “The Global momentum in digi- of cloud-based business applications. Furthermore, the SAMENA Council tal transformation adoption presents The hybrid network is optimized for Roundtable (SALT) was held, creating an opportunity for governments and unified communications and enables a new platform for regional operators private sector leaders to demonstrate AngloGold Ashanti’s employees to and regulatory bodies to engage with the true value of open collaboration use corporate applications, including each other in a mutually resourceful in driving cross- industry success and voice, video and instant messaging and facilitative manner, for the pur- innovation. ICT advancements in tele- communications securely across its pose of aligning priorities in ICT devel- communications play a particularly im- entire global operation. Furthermore, opment. Mr. Bocar BA, CEO of SAME- portant role as the enabler of building managed Infrastructure-as-a-Service NA Council, sharing his observations knowledge-based economies. Today, (IaaS) solution Flexible Computing on the Leaders’ Summit stated that connectivity serves as the platform for Premium will allow employees to “True progress in the development of all innovation to function and benefit access cloud-based applications like the Digital Economy is only possible if people. Driven by responsible opera- mission-critical global ERP based on stakeholder inclusion is enabled and tions, ongoing innovation and open SAP with greater ease. Beyond the we strive for it by bringing the public collaboration, Huawei has established initial scope of connectivity, employee communications, cloud computing

page_24 REGIONAL & MEMBERS UPDATES

SAMENA TRENDS _ MAY 2016 and security, the agreement opens the internet player. This is why we have set door for co-innovation, for example, up Jawwy as a separate digital business in the areas of e-health, underground unit led by Subhra Das as CEO of Jawwy safety, material, tools and maintenance from STC . The team is mandated to cost management, and environmental innovate by reimagining solutions monitoring. “We strive to listen to what New digital mobile ex- for the current issues and evolving is essential to our customers doing needs of a new generation,” added business in their markets and specific perience for KSA millen- Dr. Biyari. “We designed a new end- regional landscapes. AngloGold Ashanti nial is a global first by to-end experience to meet the needs is a long-time Orange customer, and STC and preferences of a new generation of we are very pleased with the trust they mobile users, utilizing digital means to ‘Jawwy from STC ‘ will allow users to have placed in us. We aim to deliver bypass physical challenges,” said Subhra build, share and manage their plan in mission-critical solutions for their Das. “The new service provides an in- real time instead of buying traditional infrastructure and bespoke consulting app, web-based mobile experience fixed plans, and leverage online and services to help them to reach their featuring personalization, transparency, social media to offer customers a business ambitions,” says Giorgio e-commerce and crowd sourcing of completely digital experience In Heiman, vice president Africa, Orange support, and will be available in May in response to the changing dynamics of both iOS and Android versions. Jawwy Business Services the telecommunications industry and will offer real experience innovation to cater to the unique demographics because we challenged ourselves to of the Saudi Arabian market, Saudi transcend category norms to find a new Telecommunications Company (STC ) way to put the customer in control of has announced the upcoming launch the overall experience.” of ‘Jawwy from STC .’ Considered a global first, the new digital mobile experience utilizes a completely online, Turkcell, Ericsson delivers digital service model, featuring its own first Live HD streaming SIM, app and freshly designed digital over LTE Broadcast channels for sales and customer care. Dr. Khaled Biyari, CEO of STC Group , Turkcell in partnership with Ericsson said: “We needed to develop a new has delivered the first immersive live Ooredoo recognized as offering for digitally-savvy young streaming mobile experience over LTE people. The millennials of today’s Saudi one of Oman’s top 20 Broadcast in Turkey. The demonstration Arabia exemplify the ongoing shift in performing companies took place during a derby between consumer behavior and expectations. Fenerbahce and Galatasaray Odeabank, for sixth year running They live in an always-on, real-time two of Istanbul’s biggest basketball For the sixth consecutive year, world and they expect companies to teams. This demonstration was part of Ooredoo was recognized as one of cater to them in the same way. Jawwy Turkcell’s deployment of Ericsson’s LTE the Sultanate’s Top 20 performing is a significant part of STC ‘s current Broadcast solution and highlighted the companies by Oman Economic Review, digital transformation and we believe strength of the solution to power HD Oman’s leading economic and business this initiative will set the pace for the video streams of the match from four publication. Accepting the accolade on telecom sector in KSA and beyond.” different angles to mobile devices. The behalf of the company was CEO, Greg The Jawwy app will allow users to stream was delivered over Turkcell’s LTE Young, who joined representatives build, share and manage their plan network to viewers in the basketball from leading corporations listed in real time, instead of buying fixed arena. It adds a new dimension to the on the Muscat Securities Market plans. The app also offers a number of live sports experience, matching the (MSM). The recognition was based on unique features designed in response viewing quality and real-time action of financial indicators including growth to extensive research to identify the the live game. As part of the commercial of profit, earnings per share and share evolving needs of a customer base that agreement, Ericsson’s LTE Broadcast price growth. The last twelve months is predominantly made up of people solution replaces unicast content have seen Ooredoo’s numbers grow under 30 years old - 65% of the Saudi delivery with a single-frequency network substantially, driven by an increase population. Features such as real time broadcast mode to deliver content in both mobile and fixed data. The contextual offers and notifications, and concurrently to devices, better utilizing leading telecommunications company a simple way for customers to activate the available spectrum and ensuring a launched a series of inspiring new offers services without calling customer broadcast-quality experience across and services into the market, all of support numbers or visiting a store, LTE networks. LTE Broadcast combines which have been generating significant provide a completely customizable Evolved Multimedia Broadcast interest, with customer numbers and and transparent experience. To ensure Multicast Services (eMBMS) with HEVC uptake of offers increasing. Supporting that this transformational initiative compression technology and MPEG- Ooredoo’s strategy of service innovation, is deep-rooted and sustainable, STC DASH to increase the efficiency and quality and reach, the company has set up a dedicated digital team to responsiveness of delivering video continues to invest heavily and in 2015 design, develop and operate Jawwy. to consumers when, and how they they completed their independent “Innovating in the core mobile business demand it. LTE Broadcast can be used in national fibre backbone, which spans by using online and social platforms live streaming, as well as across popular the length and breadth of the country requires a new breed of talent, and the types of media delivery including OTT. to provide cutting edge connectivity to organizational DNA and agility of an consumers and business across Oman.

page_25 REGIONAL & MEMBERS UPDATES

SAMENA TRENDS _ MAY 2016

which maintains Omantel’s position Europe and America passing through as the digital partner of choice for Oman to meet the international capacity the years ahead. Justyna Topczewska, requirements of customers locally and Senior Conference Researcher at internationally, thereby sustaining the Informa Telecoms & Media added, “I Company’s leading position among Omantel named among am pleased to see that the MVNOs its competitors. Omantel’s wholesale market in the Middle East is picking up strategy is to be a communication hub top wholesale operators and it is great to see that operators like in the region and to be between at the MVNO World Omantel are internationally recognized the East and West for the region and Congress 2016 for their effort to help this market to beyond. Omantel, the first integrated grow. I am very happy to announce telecommunication services provider in that Omantel was selected among the Sultanate, has been named among the best wholesale operators at our the world’s top wholesale operators annual event. I believe this is because at the 2016 Mobile Virtual Network Omantel is the pioneer in hosting Operators (MVNO) World Congress MNOs in the Middle East and has a very hosted by Informa Telecoms & Media. interesting success story to share. We Omantel was highly commended and look forward to continue to work with Ooredoo wins awards at ranked second in the category of Omantel in the upcoming events and the Oman Tech Awards present their journey on how Omantel Best Wholesale Operator behind UK Reflecting commitment to service along with its MVNOs made it a huge provider EE (part of British Telecom excellence, Ooredoo took home success and sustainable partnership.” Group) at the awards ceremony held six prestigious awards at the Oman Omantel is also a founding partner of in Amsterdam, Holland on the 13th Tech Awards, the Sultanate’s biggest the International MVNOx Association of April 2016. The recognition is the technology event of the year. Held at the (iMVNOx) and is working closely with most recent addition to the growing Shangri-La Barr Al Jissah Resort and Spa, the Association to share experience number of awards and accolades the company’s website, page, and develop best business practices received by Omantel within the global and dedicated Ooredoo Oman App and commercial models to enable telecommunications wholesale arena. bagged four gold and two silver awards the MNO and MVNO partnerships Commenting on the achievement, in the ICT & Telecommunication, Arabic to flourish. According to Frankie Eng. Yasser Redha Said Al Lawati, Domain, Corporate, and E-Commerce Spagnolo, the ‎Founder & Director of Senior Manager of National Accounts categories. Ooredoo’s ability to iMVNOx, “There are global companies & Interconnection Department of the harness the power of technology to and then there are companies who act Wholesale Business Unit at Omantel create unique and inspiring digital globally. Omantel continues to grow stated, “We are indeed honored to experiences was singled out for praise subscriber acquisition in their national continue to be globally recognized as by the judging panel. The awards join market by combining innovation in one of the top wholesale operators. In a long list of accolades presented to wholesale with their ambitious global addition to being an acknowledgement the company for its consistency in vision. As thought-leaders in the from the MVNO global community of developing innovative services that spur wholesale sector, Omantel is driving Omantel’s leading role in this important customer engagement and support unprecedented support for the virtual area of the telecom sector, this is also today’s digital lifestyles. Organized by ecosystem, pushing the boundaries for a recognition of our successful strategy the Information Technology Authority other wholesale divisions worldwide in partnering with our MVNOs and (ITA) under the patronage of H.E. by actively studying and refining their developing this business stream Dr. Rasheed bin Al Safi Al Huraibi, best practices for the most profitable together. Today, the market share Chairman of the Tender Board, the wholesale strategy.” The introduction of Omantel MVNOs is around 16%, Oman Tech Awards was established of MVNOs in Oman has enabled which is the highest MVNO market to identify and reward talent in the extended reach to every segment in share outside Europe and among the Sultanate for their contributions in the the market, especially those that were top 5 worldwide according to recent IT sector. The event was inspired by previously untapped. Through MVNO international reports. This reflects the the grand vision of His Majesty Sultan partnerships, Omantel has been able significance of our MVNO partners in Qaboos Bin Said to transform Oman to increase its overall network market the highly competitive market of Oman. into a knowledge-based economy and share to more than 58%, contrary to We take this opportunity to thank our is set to become the public and private the global phenomenon of decreasing MVNO partners who played a major role sectors’ benchmark for success. in achieving this important milestone.” share of incumbent operators, thanks MVNOs are service providers that to the victorious strategy and the win- do not own their own full-fledged win situation created for all partnering telecommunications network and are parties. In the international wholesale known as Mobile Resellers in Oman. arena, Omantel is considered as one of Instead, they buy services on wholesale the most prominent and competitive basis from Class I operators such as wholesale telecommunication Omantel and packaging the services providers in the Middle East region. Batelco launches an for with their own brand name. In addition, it is one of the leading advanced IoT connected Omantel’s extensive partnerships with companies in the field of submarine MVNOs underscores the Company’s cable networks complemented by vehicles solution new 3.0 transformation strategy direct terrestrial links, which link Asia, Batelco, the Kingdom’s leading digital

page_26 REGIONAL & MEMBERS UPDATES

SAMENA TRENDS _ MAY 2016 solutions provider has launched a communications hub and today is through the Middle East and onward cutting edge IoT (Internet of Things) leading the delivery of digital solutions to Asia. In addition, TTI has a wealth Connected Vehicle Solution to support while continuing to shape the local of experience in entering new markets the requirements of the education and consumer and Enterprise ICT markets. throughout Central & Eastern Europe, transportation sectors. The solution is Batelco is well known as a leading ICT the Middle East, the Commonwealth of aimed at equipping vehicles, such as solutions provider offering a spectrum Independent States (CIS), North Africa school busses, with cameras, sensors, of solutions such as Infrastructure and Central Asia.” Mr. Cengiz Oztelcan, GPS tracker, sound level detector and Solutions, Unified Communications & Chief Executive Officer of Türk Telekom object count and furthermore the Collaborations, IT & Physical Security International, said, “TTI is dedicated to solution is self-powered through the to name a few. The Company’s delivering best-in-class solutions to our use of solar panels. The new Batelco comprehensive choice of products and customers. Through this collaboration Connected Vehicle Solution delivers services meets international standards with PCCW Global, we believe enormous a complete transportation security and can be customised to meet each synergies will be found by leveraging solution and has been designed and customer’s specific needs. our broad geographic reach to bring developed to address growing market PCCW Global’s innovative suite of cyber needs, particularly from the education and broadcast capabilities to serve our sector, to support safety issues for customers.” TTI provides a full range of school children and university students. Internet/data services, infrastructure The solution will also be a valuable and wholesale voice services to support for transportation companies telecom carriers and service providers, in general. Batelco Bahrain CEO as well as mobile operators, cable-TV Engineer Muna Al Hashemi said that PCCW Global and Türk companies, Internet service providers the Connected Vehicle solution was in Telekom International and corporate customers. The company big demand from school authorities is 100% owned by Türk Telekom and who are very eager to ensure the safety (TTI) sign Memorandum covers 20 countries in Central & Eastern of their students travelling to school by of Understanding to Europe, the Middle East and Caucasus, school bus. “The solution allows staff at explore joint business as well as Turkey itself. The PCCW Global the school to monitor the busses with network covers more than 3,000 cities CCTV surveillance and video recording. opportunities and 150 countries with a portfolio of Among the benefits is the ability to count PCCW Global, the international integrated global communications the number of passengers boarding operating division of HKT, Hong Kong’s solutions that include Ethernet, IP, fiber and alighting from the bus and a two- premier telecommunications service and satellite transmission, managed way communication system to enable provider, and Türk Telekom International services, international voice and VoIPX speaking and listening. Furthermore, (TTI), a leading telecommunications services. there is also a built in alarm system operator across Central & Eastern to alert the school to specific issues Europe, Turkey, Caucasus, and that may occur,” explained Mrs. Al the Middle East, have signed a Hashemi. “We want to ‘upgrade the Memorandum of Understanding world’ of communications for all our (MoU) to explore service portfolio customers through our provisioning and geographic synergies between of the latest products and services at two leading telecommunications value for money prices. As Bahrain’s companies. Under the scope of the Omantel, Infoline unveil most advanced digital network we’ll MoU, consideration will be given to search engine “Daleel keep bringing you innovative ways to making PCCW Global’s GTVN (Global 1010” connect better, work better and live Television Network), a managed end- better,” added Mrs. Al Hashemi. Batelco to-end video transportation solution, Daleel1010, Oman’s first interactive has established partnerships with well- available to TTI’s customer base of search engine, is anticipated to known providers, to meet the specific international broadcasters, video transform information gathering needs of different market segments and content distributors and carriers. in the Sultanate. The service deliver solutions in a reliable, flexible and The MoU also provides for exploring is a joint initiative of Oman cost-effective manner. For all Batelco’s how TTI could provide customers Telecommunications Company enterprise solutions, Batelco also with PCCW Global’s award-winning (Omantel), the Sultanate’s first offers full after-sale support during the MOREAL cyber threat management integrated telecommunications contract, giving organisations peace of service solution and other cloud- services provider, and Infoline and is mind when investing in new solutions. based security solutions from HKT. backed by a robust and state of art Batelco’s comprehensive range of MOREAL is a real-time, self-learning technology platform. The service is solutions positions the Company as network security capability that won a user-friendly tool for individuals an end-to-end ICT solutions provider the Global Telecom Business Award both inside and outside Oman to offering customers a one-stop-shop in 2015. Mr. Marc Halbfinger, Chief find information on a wide range of experience. On an ongoing basis, Batelco Executive Officer of PCCW Global, said, businesses, products and services continues to expand its ICT portfolio “We are delighted to have entered into and features a user generated rating and strives to deliver new solutions to this MoU to explore mutually beneficial system to highlight independent its customers. As one of the Kingdom business opportunities for our two customer feedback on the product of Bahrain’s leading organisations, companies. TTI has an excellent track or service provided. Daleel1010 Batelco has played a pivotal role in record for seamless connectivity and is also supported by a dedicated the country’s development as a major unique coverage from Western Europe multilingual 24/7 call centre: #1010,

page_27 REGIONAL & MEMBERS UPDATES

SAMENA TRENDS _ MAY 2016 as well as mobile apps for iOS and the most remote communities of Loral (SSL) have successfully carried Android devices and a website: the Sultanate to each other and out transmissions in Extremely High www.daleel1010.om. A search the rest of the world. Omantel is Frequencies (EHF) using an experimental engine with user reviews and 24/7 the Sultanate’s first and leading payload flown into space on the craft. In phone support, Daleel1010 features integrated telecommunications order to strengthen support for clients online brochures, locations maps services provider, enabling the digital in the Americas, Eutelsat has opened and easy contact details. The new society to flourish, allowing new ways a network operations centre (NOC) in service offers a database of more of doing business and delivering Santana do Parnaiba in the state of Sao than 148,000 businesses, 6,500 plus a world of information, news and Paulo. The teleport hosting the NOC business categories and 3,000 plus entertainment. Today, Omantel boldly is also equipped with resources for brands in the local market which will innovates to deliver the highest levels telemetry, command and ranging (TCR) make browsing for information on of customer satisfaction, the broadest of EUTELSAT 65 West A and will include businesses, products and services and most reliable nationwide network radiofrequency and video monitoring in the Sultanate easier than ever while investing for Oman’s future tools for service quality assurance of before. Daleel1010 offers a wide development. C, Ku and Ka-band services provided range of innovative and cost-effective through seven Eutelsat satellites marketing and advertising platforms providing coverage of the Americas. for businesses by providing an easy connection with their customer base to ensure a higher return on investment. The marketing platforms include premium listing services, context based and Emails, IVR Turkcell negotiates acquisition advertisement, Call Patching and of 100% IsNet shares much more. “This is ground-breaking VIVA recognized as ‘Best innovate platform that caters to all Turkcell, Turkey’s leading cellco by Telecom Company 2015’ enquiry needs of consumers and aims subscribers, has issued a statement by Arabian Business to deliver information easily to the announcing it has authorized its people of Oman. With Daleel1010 management to negotiate the VIVA, Kuwait’s fastest-growing and people can liberate themselves from acquisition of 100% of the share most developed telecom operator, traditional and cumbersome ways of capital of Isbank (Is Bankasi) subsidiary announced that it has been awarded by information gathering and instead IsNet. TeleGeography’s GlobalComms Arabian Business organization as “Best be presented with multiple options Database notes that IsNet was founded Telecom Company”, in recognition to choose from before any purchase. as an ISP in 1999, with the Isbank The transparent information provided providing 100% of the enables the user to feel confident that investment. The company added a they are taking the right decision,” Fixed Telephony Service (FTS) Operator said Haitham Abdullah Al Kharousi, license to its portfolio in 2004. Vice President at Omantel Consumer Unit. “At Info line it has long been our endeavor to create innovative service solutions and industry synergies to guarantee value for consumers that are aligned to the nation’s innovative developmental strategy. Daleel1010 is a unique platform that everyone EUTELSAT 65 West A can benefit from on a daily basis now fully functional through the ability to search for The EUTELSAT 65 West A satellite, information and communicate with launched on 9 March, is now fully others. I invite everyone to check powered up and ready for service out this great new platform, which across Brazil and Latin America. The is unique in Oman, I am confident satellite is designed to target markets of exceptional performance in 2015 users will discover the many benefits across Latin America and its Ku-band during an event held in Jumeirah of this innovative information guide,” payload is optimized for direct-to- Hotel in Kuwait, in presence of leaders noted Manoj Mahanta, Senior Vice home (DTH) reception. It also features and executives from investment and President, Infoline LLC. Aligned with transatlantic C-band coverage for economic world. On this occasion, Oman’s 3.0 transformation vision cross-continental video contribution Abdulrazzaq Bader Al-Essa, Director for digitalization, Daleel1010 offers and distribution. Eutelsat is anchoring of Corporate Communications at the Sultanate’s citizens, residents EUTELSAT 65 WEST A in the Brazilian VIVA said, “We are proud to receive and visitors multiple services broadcasting market with an antenna such appreciation from an esteemed including restaurant reservations, seeding program designed to ensure organization as Arabian Business. VIVA doctors’ appointment bookings that pay-TV and cable operators across aimed since inception at making a leap and emergency vehicle assistance. the country are equipped to receive in the telecom market and offering its Investing in the future of the channels delivered by the new satellite. customers a new experience through nation, Omantel connects even Already Eutelsat and Space Systems

page_28 REGIONAL & MEMBERS UPDATES

SAMENA TRENDS _ MAY 2016 innovative products and services.” rival services such as Internet-based Speaking at the SME Exhibition, which Al-Essa added, “We are proud to be messaging and calls. Etisalat took a was attended by a host of popular the first leading telecom company stake in Canar in 2004 and three years celebrities from across the region, to launch the Voice Over Long Term later spent 584 million dirhams to more Kumail Al Moosawi, Chief People and Evolution (VoLTE) for the first time in than doubled its holding. In 2012 it took Corporate Affairs Officer at Ooredoo Kuwait and the Middle East. This is in an impairment of 459 million dirhams said: “The entrepreneurial spirit of the addition to VIVA’s commercial presence on Canar due to local inflation, currency budding businesses at Bindera Village is across Kuwait, which was expanded to fluctuations and difficult economic and truly inspiring. One of the cornerstones 70 branches, enabling us to be closer political conditions. Zain Sudan had a of Oman’s economic vision for the future; to our customers and to meet the 42 percent mobile market share in 2015, our SMEs have an important role to play growing demand for our products and Zain’s financial results show. Mobile in the Sultanate’s ongoing prosperity. services. The “International Quality & penetration in Sudan was 72 percent Ooredoo is delighted to support these Productivity Centre” also recognized in 2014, according to the International fantastic examples of entrepreneurship our achievements this year, as “Best Telecommunication Union, placing the as they fulfill their potential. We look Contact Centre Experience” and “Best country 165th globally and indicating forward to continuing to support and Network Experience”. substantial growth potential. play a part in them realizing their goals and ambitions.” Also exhibiting at Bindera Village were some of Ooredoo’s Incubator Program graduates, who used the up-and-coming exhibition to build awareness and a following for their products and services. Launched last year as part of the Ooredoo Zain to buy Etisalat’s stake Turkcell plans IPO of Goodwill Journey, 25 community in Sudan’s Canar Global Tower women from Mussanah underwent a series of intensive workshops where Turkcell’s board of directors had Kuwaiti telecom firm Zain has agreed they were taught essential skills in approved an initial public offering of to buy Abu Dhabi-listed Etisalat’s the disciplines of IT, cooking, and shares in Kule Hizmet ve Isletmecilik 92.3 percent stake in Sudanese fixed sewing. Recognizing the importance of (Global Tower). Turkcell owns 100 line operator Canar for 349.6 million technology and connectivity to SMEs, percent of the company, started in dirhams ($95.2 million). The deal would the Ooredoo Bindera Village booth 2006 and operator of telecom and strengthen Zain’s grip on Sudan’s provided information on its value- broadcasting towers throughout telecom sector where it is already the added portfolio of start-up oriented Turkey. Global Tower claims to be the top mobile operator by subscribers products and services, designed to third-largest towers and infrastructure and has long sought to add a fixed- help them manage communications operator in Europe. Turkcell said it line license. It is subject to approval efficiently and cost effectively as will amend the existing articles of from the Sudanese authorities, an they grow. Also, taking care of association of Global Tower and start Etisalat statement said on Monday. immediate communication needs, the regulatory procedures for listing Sudan accounted for 19 percent of SIM and recharge cards were available the company. Further details of the Zain’s revenue and 26 percent of throughout the event. its subscribers in 2015. Although IPO were not disclosed. its Sudan operations have suffered foreign exchange losses following the plunge in the value of the Sudanese pound, the local currency has stabilized recently. The pound’s woes also make it difficult for Zain to repatriate profits, leading it to invest in local real estate VIVA becomes a member as a hedge against inflation as well as Ooredoo supports 72 of ITU raising the unit’s capital expenditure. local and regional SMEs Zain Sudan, which launched 4G services at Bindera Village VIVA, Kuwait’s fastest-growing and last month, reported a 77 percent rise most developed telecom operator, in 2015 profit to 1.04 billion Sudanese Proudly supporting Oman’s young announced its accession to membership pounds. In dollar terms profit rose by entrepreneurs, Ooredoo was the of International Telecommunication 66 percent. In recent years, telecom Gold Sponsor of the Bindera Village Union “ITU”, a specialized agency of operators in the Middle East and Africa Exhibition, a one-of-a-kind gathering the United Nations, consists of experts have sought to hold mobile and fixed of 72 SMEs from across the GCC. With and leaders in the telecom sector from voice and Internet licenses so that they Mohsin Al Balushi, Advisor of the around the world. Commenting on can provide these services in bundled Ministry of Commerce & Industry as this membership, VIVA stated that its packages to consumers and businesses. guest of honor, 46 of Oman’s most contribution will focus on designing This helps retain customers while exciting start-ups, in areas including the future of telecom sector, and business services usually generate food, fashion, technology and tourism, exchanging experiences and opinions higher margins than consumer mobile showcased their products and services with different parties, through its tariffs, which have slumped due to and exchanged ideas with their participation in scientific conferences competition from other operators and counterparts from around the region. that help evolving and improving the

page_29 REGIONAL & MEMBERS UPDATES

SAMENA TRENDS _ MAY 2016 telecom sector in order to maintain partly offset by a lower contribution ‘due to Ooredoo’s focus on network the satisfaction of the customers. ITU from Fintur and increased interest expansion and modernization and its is an organization based on public expense on loans and 4.5G payables. strategy of marketing innovative data private partnership since its inception; In operational terms, Turkey’s domestic services for individuals and businesses’. ITU currently has a membership unit saw total subscriptions fall 1.1% Domestically, Ooredoo Qatar posted of 193 countries and almost 800 y-o-y from 35.6 million to 35.2 million, a 1% y-o-y increase in net profit to private-sector entities and academic mainly due to losses in the pre-paid QAR484 million in Q1 2016 while institutions. ITU’s headquarter based mobile segment. Fibre subscriptions Qatari EBITDA fell to QAR941 million in Geneva, Switzerland, and has twelve rose 20.5% from 776,1000 to 935,400 from QAR980 million a year earlier. regional and area offices around the in the same period, while ADSL also Qatar customers increased 6% in world. ITU membership represents a continued to grow, up 30.4% from twelve months to 3.5 million at the end cross section of the global ICT sector, 495,500 to 646,200. Total consolidated of March 2016, while Qatari revenues from the world’s largest manufacturers mobile subscriptions fell 2.7% from stood at almost QAR2 billion (around a and telecoms carriers to small, 69.5 million to 67.6 million. Turkcell quarter of total group revenue), in line innovative players working with new CEO Kaan Terzioglu commented: ‘In the with the year-ago period. and emerging technologies, along first quarter of 2016, our key agenda with leading R&D institutions and item was the launch of 4.5G services academia. Founded on the principle on 1 April, which will underpin Turkey’s of international cooperation between digital transformation. The Turkcell governments (Member States) and team has established a strong 4.5G the private sector (Sector Members, network and made mobile broadband Associates and Academia), ITU is the with 4.5G speed available in 81 cities premier global forum through which with a population coverage of over selects Polystar to par ties work towards consensus on a 70% … Having seen a solid start to the monitor VoLTE and IMS wide range of issues affecting the future year, we believe that we can achieve our services direction of the ICT industry. 2016 targets by providing a strong 4.5G network, along with our converged du announced further expansion of services.’ scope of services with Polystar, a leading supplier of Network and Customer Analytics, Network Monitoring, and Service Enablement solutions to the telecoms industry. The expanded agreement extends the existing Turkcell reports record solutions to encompass du’s new IMS and VoLTE service elements. The high first quarter revenue, deployment of a full IMS core and the EBITDA Ooredoo Group customers grew by 6% to 118 million launch of VoLTE services will introduce Turkcell Group has announced its additional levels of network challenges. results for the quarter ended 31 March in Q1 In addition to the new IMS and VoLTE 2016, posting record high first quarter Qatar-based telecoms operator service elements, there is an existing, revenue and EBITDA, driven by growth Ooredoo Group’s customer base multi-domain network that includes in its domestic unit. Group revenue in reached 118 million at the end of the GSM, GPRS, UMTS and LTE technologies. 1Q16 totaled TRY3.225 billion (USD1.15 first quarter of 2015, a 6% or seven du continues to deliver an outstanding billion), up 8.3% from TRY2.978 billion million year-on-year increase, driven by customer experience and assure service in the same period one year earlier, strong take-up in Myanmar, Indonesia, quality, end-to-end across all domains. while EBITDA reached TRY1.002 billion, Algeria and Qatar. Group revenue The system expansion will deliver new climbing 8.1% year-on-year from reached QAR7.888 billion (USD2.164 insights for the telco, enabling the TRY927 million; the EBITDA margin billion) in Q1 2016, down by 2% y-o-y, experiences of different customers remained flat at 31.3%. Turkcell’s although excluding foreign exchange and segments to be more effectively local unit reported a 10.0% increase translation impact, revenue would have monitored and managed. For example, in turnover from TRY2.662 billion to increased by 1%, supported by strong the detailed reporting will allow du to TRY2.927 billion, equating to 91% of growth in Oman, Indonesia, Myanmar, obtain accurate customer experience total Group revenues, and EBITDA of Kuwait and the Maldives. Group EBITDA information for its most valuable TRY916 million, up 10.6% from TRY927 fell 1% y-o-y to QAR3.179 billion in customers, ensuring that SLAs are million in 1Q15. Turkcell International, 1Q16, with a stable EBITDA margin of delivered effectively. Similarly, du can meanwhile, comprised 6% of Group 40%, whilst group net profit rose by also secure more reliable information revenue, generating TRY197 million, 75% to QAR879 million mainly due to regarding the performance of its leading rising 2.1% compared to the year-ago positive forex impact in Indonesia and partners. The end-to-end view period and turning to positive growth Myanmar. Excluding the forex impact of service performance can be mapped after seven quarters of y-o-y decline. and one-off gains from investments, to each and every subscriber, enabling Turkcell Group’s net income increased net profit would have been in line with the most accurate picture of experience four-fold to TRY563 million in 1Q16 the previous year. The group also noted and quality to be obtained both in real- from TRY141 million, which the operator that data revenue accounted for 38% of time and historically. Polystar’s Service attributed to higher EBITDA, lower total group revenue in January-March Assurance solution is at the heart of translation losses and tax expenses, 2016 compared to 30% in Q1 2015 the Big Data analytics enablement

page_30 REGIONAL & MEMBERS UPDATES

SAMENA TRENDS _ MAY 2016 platform. The open architecture of the them to access enterprise level ICT Together’ channel strategy is based platform, together with the advanced capability. FDC International and on developing strong, collaborative real-time analytics capabilities, enables Huawei have partnered to speed up relationships with its partners to delivery of rich intelligence via APIs time to market Huawei products and help end-users gain maximum value and data feeds to third party systems. solutions in the Middle East through its solutions through the partner’s Full details of signaling transactions FDC International’s regional product insights and understanding of local and records are provided to du’s Big centers and its expertise in addressing market needs. Huawei’s channel Data solution in a way that will allow the digital transformation requirements partners play an important role in du to build an entirely new Customer of SMEs. The tie up between Huawei delivering sustainable market growth Experience Management (CEM) model, and FDC comes just before Huawei’s in the region, and its channel strategy enriched with real-time data from annual Partner Summit set to take aims to recruit, enable and activate a Polystar. “We continue to collaborate place on May 2, 2016 at the Madinat core community of trusted and valued with global best practice service Jumeirah, Dubai and will highlight ICT partners. Huawei’s channel program providers to ensure that our services trends impacting the market while provides partners with a wealth of and solutions continue to safeguard showcasing some of the technology information and education, giving them an outstanding experience for all our solutions making headway in regional the tools to realise ICT’s full potential to valued customers. We are leveraging Enterprises. “This partnership forms transform their customers’ businesses. Polystar’s expertise to build our CEM part of Huawei’s direction to support the While the process of digitalization model for mobile customers and to SME market through the recruitment of speeds up, new technologies, new introduce independent benchmarking select partners who are able to deliver players, and cooperation modes for our VoLTE and other services,” on Huawei’s value-add proposition,” emerge, allowing customers more commented Saleem AlBlooshi, said Hany Hussein, Vice President control and power while collaborating Executive Vice President - Network of Partners & Alliances, Huawei, with partners in the ecosystem. The Development & Operations, du. “We Enterprise, Middle East. “This is in-line ICT industry is becoming more and have worked together with Polystar with Huawei’s ‘Transforming Together’ more ‘developer-defined’, Huawei to streamline their solution to suit channel development strategy which remains committed to the strategies our requirements and to include new aims to create the right partner of ‘Focus’ and ‘Being Integrated’ with features that are essential for delivering ecosystem to support the business customers and partners while building best in breed services to our end users.” needs of organizations of all sizes, a new ‘developer-defined’ ecosystem Polystar’s network and service analytics through a long-term commitment that through joint innovation. Huawei will allows du to and provide voice quality is based on strong reporting. It’s at the heart of of du’s collaboration Service Quality Management program with channel to analyze individual events, perform partners.” He detailed troubleshooting. “Polystar has added. FDC been a long-time partner of du and this International latest investment highlights the strength have strong and continuity of our relationship,” said regional Basel Shubair, Regional Sales Director presence and for MENA & Indian Subcontinent in will support SME Polystar. “Our ability to span multiple ranging from 100 technologies and to support du while to 1,000 users it invests in the introduction of new across multiple services and networks has been critical. locations, and We look forward to working hand-in- provide fast, hand with du to continue the evolution efficient delivery of our solutions to meet future needs.” of Huawei solutions. “SMEs like any other business are keen to have access to the latest ICT solutions be welcoming partners from across the that help them operate with the same Middle East and Pakistan to its annual capability as a large enterprise, by Channel Partner Summit on May 2, deploying new ICT technologies that 2016 at the Madinat Jumeirah, Dubai. Huawei expands regional help them succeed in their digital Sharing its latest developments in its SME support through transformation,” said Dr. F. B. Safe CEO ecosystem of partners, the event is set new channel partnership of FDC International. “FDC has over to provide the latest on what Huawei 27 years of regional IT distribution and its partners are doing to further with FDC International experience with more than 200 qualified support enterprises in the region to Huawei, a leading global ICT professionals to address the needs transform their businesses. solutions provider, has appointed of SMEs while providing them with FDC International as regional volume insights and advice on how to leverage distributor in the Middle East to Huawei’s agile solutions to evolve their support the growing need by SMEs ICT environments efficiently and grow for new ICT solutions that enable their business.” Huawei’s ‘Transforming

page_31 REGIONAL & MEMBERS UPDATES

SAMENA TRENDS _ MAY 2016

REGIONAL NEWS

PTA Announces Theme for of Persons with Disabilities (PWDs) in Pakistan. The independent international Pakistan Awards sources quote that about ten to fifteen 2016 percent of Pakistan’s population consists This year as well, Pakistan of people with disabilities (PWDs). The Telecommunication Authority (PTA) has 2016, Mobile App Awards will invite to launched competition under the “Pakistan harness the benefits of technology, to Mobile App Awards 2016” in collaboration promote digital inclusion, and embrace with Internet Society (ISOC) Asia-Pacific persons with disabilities. This competition Bureau, Ministry of IT & Telecom, Telenor will accept proposals and ideas till July & Special Talent Exchange Program 30, 2016. Shortlisted contestants will (STEP). This initiative has been taken to be required to develop their mobile REGIONAL encourage Pakistani individuals who application(s) with the help of mentors have developed the most innovative user & facilitators by end-September, winners UPDATES generated or professionally produced will be announced in end-November. A content that engages the mobile user and panel of judges will evaluate and decide enhances the traditional on the top five mobile apps based on a experience. This year’s competition theme pre-defined criteria. Rs 300,000 in cash. is “Embracing Mobile Accessibility”, Winning team who would like to turn which aims to focus on the development their solution into a functioning startup of mobile applications on the needs will also be offered acceleration through

page_32 REGIONAL & MEMBERS UPDATES

SAMENA TRENDS _ MAY 2016 formal incubation into the Pakistan corporate can rest assured that every Network in Turkey” Project in Global Telecommunications Authority’s cent that they donate is accounted Telecom Business Summit which has M-Lab, depending on interest and fit. for. Rotary District Governor George been hosted regularly since 2007. Jesuthasan expressed positivity about New multi-band antenna solution will Etisalat partners with the partnership with Etisalat and be used both for Turk Telekom’s 4.5G support from the corporate sector frequencies integrally and for new Rotary District Sri Lanka in general. “Joining Etisalat is a great generation technologies. To address for CSR projects moment for us because they are taking challenges such as where to find space Leading Service provider Etisalat it as their CSR program to partner on already crowded towers and how Lanka will be joining hands with with us. Many of our large projects to deal with antenna size limitations, internationally renowned charitable are Rotary Foundation funded but Huawei and Turk Telekom released the organization the Rotary District in the origin of the funds starts from innovative 4.5G multi-port antenna Sri Lanka for a new corporate social the corporate. We have a mechanism solution. Newly generated antenna responsibility strategy. The partnership where the corporate send money to solution offers many solutions to between the two entities is set to the foundation which is then used for operators such as support for new tackle national issues in healthcare high scale projects.” technology implementations like specifically those relating to vision MIMO, easy deployment, environmental and eyesight. Speaking on their new Omantel LTE-A trial compliance. This solution facilitates CSR strategy Etisalat Lanka’s Chief the deployment of 4.5G networks and Commercial Officer, Yasser Aboul achieves peak speeds of provides high network performance Amayem said, “We believe there 1Gbps even when tower space is limited and are lots of opportunities here in Sri Oman Telecommunications Company antennas are of small size. Furthermore, Lanka and so Etisalatis trying to be (Omantel), the Sultanate’s incumbent this solution supports band-specific more proactive in order to add value fixed and mobile operator, has electrical down tilt adjustment, for our nation-wide customer base.” announced the successful trial which enables quick deployment of Etisalat has always been an ethics of ‘4G LTE-Advanced (LTE-A) Pro commercial 4.5G networks. Coşkun oriented company and complies fully technology’, which achieved peak Şahin, CTO of Türk Telekom said:”As with law and guidelines outlined download speeds of up to 1Gbps. being the most reliable partner of by the nation’s environmental and ‘The trial gave impressive results Turkey’s digital revolution, we took other regulatory bodies. Said Aboul where we were able to achieve peak another important step with this Amayem, “Our network has been download speeds of 1Gbps using the project that was granted the most operating locally for over 25 years as 4G LTE-A pro technology, which is innovative award of the world. We are pioneers in telecommunication. We considered a significant milestone in proud of the attention of the world’s believe that it is our role to create our roadmap of utilizing our spectrum biggest generators to the new antenna emotional bonds by adding value to assets to test the network and prepare solution and their desire to generate health and that is one aspect of our for the technological evolution to 5G,’ it. I would like to thank Huawei for this CSR strategy.” For Etisalat’s new CSR commented Omantel’s Chief Operating partnership. We will continue to initiate partnership with Rotary, the decision Officer Eng. Samy Ahmed Al Ghassany, these kinds of innovative solutions with to hone in on issues related to eyesight adding: ‘This breakthrough brings our excellence in technology know-how was a strategic and thematic one. With us one step closer to the realisation and investment force.” Zhou Taoyuan, the rise of digital communications and of Omantel’s vision for Oman, to President of Huawei Antenna Business smartphone technology, the mobile become a truly networked society, Unit, commented: “By using the newly phone has quickly shifted from being where lives are enriched through released 4.5G-oriented antenna an audio device to one that is primarily connectivity.’ Omantel launched solution, Huawei expects to deploy Türk experienced through site. Aboul commercial LTE services in 2012 Telekom high-quality 4.5G networks Amayem adds, “We wanted to give and introduced maximum download and achieve business successes.” the gift of sight to those in need and speeds of 200Mbps last year through help support sustainable community- the introduction of LTE-A technology. Ooredoo Qatar upgrades based eye care programs, The reward Total network investment totaled will be in seeing the wonderful OMR120 million (USD310.7 million) to Category 9 LTE-A Ooredoo Qatar has announced the reaction of people who are fitted with in 2015 and by the end of the year 4G addition of the Category 9 LTE-Advanced spectacles or get their sight back for coverage had reached over 86% of the standard to its mobile network, which the first time. George Jesuthasan, population. Rotary District Governor for Sri Lanka was optimistic on the value that Rotary Türk Telekom and Huawei could add to Etisalat’s CSR endeavors. “The difficulties corporate face is the Win Mobile Infrastructure reach to the needy but the reach to Innovation Award at Global the people and the network we have is our strength. Furthermore, our Telecom Business Summit implementations cost is almost zero. Turkey’s leading communication and Every cent that we get from donors entertainment technologies company goes to the project. We also have Turk Telekom and Huawei, were many tiers of stewardship that strictly awarded with “Multi-band Antenna monitor the movement of funds so Innovations for Nationwide 4.5G

page_33 REGIONAL & MEMBERS UPDATES

SAMENA TRENDS _ MAY 2016 utilizes multiple 4G frequency Telecommunications (MPT) added become available, Ooredoo will use the bands to support download speeds more than 8.5 million mobile 900MHz and 2100MHz bands for its 4G of up to 325Mbps for customers. connections over the past year, taking service. As reported by the Gulf Times, the its user base to 20 million. The state- mobile network upgrade, which owned operator had a 46 per cent Axiom Telecom starts is part of the ongoing ‘Ooredoo market share at the end of April, but Supernet’ enhancement program, that has fallen from 54 per cent in Saudization program is now available for all customers Q1 2015 as foreign rivals Telenor and The initiative aims to encourage who have compatible devices, at no Ooredoo have continued to expand more nationals to join the Kingdom’s extra cost. The operator highlighted their connections. Telenor increased private sector through the training and that a range of mobile devices can its share to 37 per cent after adding employment of 400 Saudi professionals utilize the advanced ‘Cat 9’ speeds, more than nine million connections in the fields of sales and mobile services. including the Samsung Galaxy S7 over the past year. It had 15.5 million The Memorandum of Understanding and Ooredoo’s Netgear Mi-Fi customers at the end of April compared between axiom telecom and (TVTC) was router, allowing users to enjoy web with Ooredoo’s 6.9 million (which gave signed by Abdul Kareem Al Thunayan, browsing speeds ‘up to 45%’ faster it a 16.5 per cent share), according to head of TVTC in the Eastern Region, than existing 4G LTE services. GSMA Intelligence. Two years ago MPT and Jamal Al Bugmi, General Manager had a 100 per cent market share and of axiom KSA, under the patronage of Omantel LTE-A trial just 400,000 connections. Telenor and Ahmed bin Fahd Al-Fuhaid, Governor Ooredoo entered the market in Q3 of TVTC. Also present at the signing achieves peak speeds 2014. To celebrate hitting the 20 million ceremony was Mohammed Al Jawhar of 1Gbps milestone, MPT is holding a lucky draw Al Taifi, Country Manager of Human Resources at axiom KSA. According to Oman Telecommunications and giving away prizes worth MMK2 the latest Labor Market Update by the Company (Omantel), the million ($1,650) between 20 May and Saudi closed joint stock company Jadwa Sultanate’s incumbent fixed and 2 June. Investment, the Saudization ratio in the mobile operator, has announced private sector stood at 20.7 percent in the successful trial of ‘4G LTE- Ooredoo launches Myan- 2015. Meanwhile, figures show that Advanced (LTE-A) Pro technology’, the overall Saudi unemployment rate which achieved peak download mar’s first 4G LTE service Qatari-owned mobile operator was at 11.5 percent last year. The speeds of up to 1Gbps. ‘The trial Ooredoo Myanmar has launched the private sector is expected to be to the gave impressive results where we country’s first commercial 4G LTE main source of new jobs for Saudis, were able to achieve peak download service in selected parts of Naypyidaw, according to the Jadwa Investment speeds of 1Gbps using the 4G Yangon and Mandalay. The firm says report, supported by continued LTE-A pro technology, which is it plans to expand the high speed labor market reform, and changing considered a significant milestone network to other locations, once it cultural perceptions. Meanwhile, in our roadmap of utilizing our has been granted more spectrum by the Saudi mobile electronics market spectrum assets to test the network continues to demonstrate strength and prepare for the technological – the Kingdom accounted for 52 per evolution to 5G,’ commented cent of the mobile connected devices Omantel’s Chief Operating Officer shipped across the GCC in Q1 of 2015, Eng. Samy Ahmed Al Ghassany, according to the International Data adding: ‘This breakthrough brings Corporation (IDC). “The success of any us one step closer to the realization economy depends on the education of Omantel’s vision for Oman, and professional development of to become a truly networked its youth, and that is why it is crucial society, where lives are enriched that we empower young jobseekers through connectivity.’ Omantel with the right skills mix that will not launched commercial LTE services the regulator. Customers are able to only allow them to enter the private in 2012 and introduced maximum use their existing Ooredoo SIM card to sector, but also grow and succeed,” download speeds of 200Mbps last access the new 4G network, although an said Jamal Al Bugmi, General Manager year through the introduction of LTE-compatible Smartphone or device of axiom KSA. “Collaboration between LTE-A technology. Total network is required to make use of the service. all members of the community, from investment totaled OMR120 4G data tariffs are available at the same parents and educators to employers million (USD310.7 million) in 2015 price as , with ‘Internet Packs’ ranging and regulators, is instrumental to and by the end of the year 4G in price from MMK450 (USD0.38) for cultivating and sustaining a resilient coverage had reached over 86% of an allowance of 70MB (valid for 24 Saudi workforce, and that is why we the population. hours) to MMK27,000 for 5.5GB (30 have launched this program together days). Myanmar’s Ministry of Transport with the TVTC.” Individuals who would Myanmar’s MPT meets and Communications (MCIT) is due to like to apply for the program must be 20 million subs mile- auction off 2600MHz frequencies later Saudi nationals, at least 18 years of this year, with 1800MHz spectrum age, currently unemployed, and not stone scheduled to go on sale in Q1 2017, certified by other training programs. Myanmar’s leading mobile or nine months after the 2600MHz Applicants can visit www.axiomtelecom. operator Myanma Posts and tender. Until the additional frequencies com or call 920029466 to enroll or for

page_34 REGIONAL & MEMBERS UPDATES

SAMENA TRENDS _ MAY 2016 more information. According to the of Tunisie Telecom, according to the Jumeirah and real estate developer agreement, TVTC provides the venue, Dubai-based firm’s website. Dubai Dubai Properties. necessary equipment, and issues the Holding is an investment vehicle certificates for those who successfully owned by the emirate’s ruler Sheikh Zain Saudi launches tri- complete the course. Set to be a Mohammed bin Rashid al-Maktoum. trailblazer for mobile electronics Its subsidiaries include hotel group band LTE-A in Jeddah retailers in Saudi Arabia and the wider Jumeirah and real estate developer Saudi Arabian operator Zain has GCC, axiom telecom has 75 stores Dubai Properties. introduced a tri-band carrier located across the Kingdom, with aggregation (3C) technology 4,500 points of sale, 21 distribution component on its LTE network, upping networks, and 264 Saudi employees. Djezzy marks World its maximum download speeds to The acclaimed reseller, which is Telecom and Information 187.5Mbps, in partnership with recognized for its unrivalled customer equipment vendor Nokia. In order service, recently opened its doors to Society Day to deliver the superior speeds, the an experiential shopping concept at Algerian mobile operator Djezzy operator is aggregating 25MHz of several areas in the Kingdom. celebrated World Telecommunication spectrum in the 900MHz, 1800MHz and Information Society Day on May and 2100MHz bands. Nokia provided 17 at the Sidi Abdellah cyber park its Flexi Multiradio 10 Base Station and Pakistan-China fiber near Algiers. Under the patronage of frequency division duplex LTE (FDD- optic cable project goes Post and ICT minister Imane Houda LTE) software, while also delivering live in Gilgit Faraoune Algerian experts and network implementation and multi- entrepreneurs debated the impact layer optimization services. The LTE- Pakistan has launched the Pakistan- of ICT on the national economy and Advanced (LTE-A) service is available China Optical Fiber Cable Project, its direct repercussions on social to eligible subscribers with Category 6 which is part of China-Pakistan progress. The ITU’s annual WTISD (CAT 6) devices in several high-traffic Economic Corridor (CPEC), Daily aims to reduce the digital divide and to areas in Jeddah. Ali Aljitawi, Head of Pakistan reports. The project is raise awareness about the prospects Zain Saudi Customer Team at Nokia, expected to improve connectivity that the internet and other ICT said: ‘With this project, Zain becomes in Gilgit-Baltistan. Customers in the technologies can deliver in the social the first telecoms operator in Saudi area will soon have access to 3G and economic areas. The Orascom Arabia to carry out the refarming of and 4G services. The Optical Fiber subsidiary said it was taking part in spectrum in the 900MHz band from Cable project will involve overall the event “to help young innovators GSM to LTE, and using three component investments of USD 44 million and and entrepreneurs find their potential carrier aggregation to increase speeds will be completed in two years. The and develop innovative and concrete on Zain’s 4G network.’ Special Communication Organization solutions to help accelerate progress will lay 820 kilometer long cable from in realising Algeria’s objectives in its Rawalpindi to Khunjarab. Following quest for sustainable development Dialog to invest US$125 deployment completion, the cable and the establishment of a digital is expected to provide an alternate million in expansion in economy.” telecommunication route between 2016 Pakistan and China. Sri Lankan telco Dialog Axiata will Bahrain’s Batelco says invest USD125 million in expanding its Bahrain operator no submits bid for Malta’s telecommunication and TV activities Go this year, according to local newspaper longer in talks to buy The Island. The operator’s CEO, Hans Bahrain Telecommunications Co Wijayasuriya, is cited as saying: ’We Malta’s GO (Batelco) has submitted a bid for Bahrain Telecommunications Co are quite optimistic about the way Sri Maltese telecoms company Go, (Batelco) is no longer in talks to Lanka’s mobile communication sector is the Bahraini firm said. Emirates buy Maltese telecoms company GO. developing. Therefore, we are planning International Telecommunications Last week, Batelco announced it to invest in a big way in the future to give (EIT), a unit of Dubai Holding, in July had submitted a bid for GO, which an experience on the latest technology 2015 revealed it was planning to sell is 60 percent owned by Emirates for Sri Lankans.’ Specifically, Dialog’s its 60 percent stake in Go. Batelco International Telecommunications investment will benefit its mobile and said in a bourse statement it had (EIT), a unit of Dubai Holding. These pay-TV networks, and its Dialog TV made a bid for Go, but did not explain discussions have now ended, Batelco unit, while the operator has revealed whether this was for EIT’s stake, the said in a statement to Bahrain’s bourse. it aims to reach one million Sri Lankan entire company or shares owned by Batelco said negotiations had been for households with its pay-TV service other parties. EIT also owns 20 percent it to buy as much as 100 percent of GO in 2016, increasing its current reach of the United Arab Emirates’ No.2 but did not provide further details. GO of 700,000 homes. TeleGeography’s telecommunications firm du and 35 said in a statement earlier on Tuesday GlobalComms Database notes that percent of former monopoly Tunisie that it had chosen former monopoly Dialog Axiata launched mobile services Telecom, according to its website. Tunisie Telecom as the final preferred in March 1995 and now operates 2G, Dubai Holding is an investment vehicle bidder for the sale of its entire issued 3G and 4G networks in addition to owned by the emirate’s ruler Sheikh share capital. EIT, which is selling its offering time division duplex LTE (TD- Mohammed bin Rashid al-Maktoum. stake in GO, also owns 35 percent LTE) broadband and TV services via its Its subsidiaries include hotel group Dialog Broadband Networks (DBN) and Dialog TV units respectively.

page_35 REGIONAL & MEMBERS UPDATES

SAMENA TRENDS _ MAY 2016

Mideast is a fast- contract with us are for projects or Does the client come to know where walls, or through SLAs and on top of his/her data is being stored? Which growing market for that we have our portfolio which tries to country or server they go into? cloud services provide a lifecycle approach to helping “That really depends on what sort of The Middle East region is a fast- customers transform their IT service, cloud service they are availing and growing market for EMC ‘s cloud utilizing hyper-cloud as an accelerator. their contractual relationship with us. services, says Ted Newman, We help them understand their current From our services perspective, we managing director, Cloud Services, application portfolio, the status of their focus on trying to help the customers Cloud/Global Services, of EMC organization and their infrastructure develop policies that apply to various Corporation. “The Middle East is and a build a business case for change. applications and profiles. We help them definitely a fast-growing region for We help them implement a hyper-cloud analyse their application portfolio us and we have done a number of solution, and optimize that solution and identify what are the security or projects in Dubai and Saudi Arabia and integrate them into the enterprise compliance requirement that might recently, focusing on things like and finally we help them manage and preclude an application from moving Smart City, data centre consolidation maintain it.” to a particular country and put in and hyper-cloud build outs etc. We place some processes to ensure that are definitely starting to see a lot How cost-effective are the cloud it doesn’t happen. The migration does more work in the Middle East. The services that EMC offers in the region not take place in such cases.” telecommunication providers are and how do the service providers very advanced. We are working benefit from them? What are the major advantages of a with them on network function “From a cost perspective, if you are public cloud as opposed to private virtualization, on becoming cloud an enterprise with several thousand cloud? service providers, and working virtual machines, you can actually be “There are some capability differences with the enterprises around how more cost-efficient than public cloud due to the way they are designed. But to optimize data centers as well providers, because you have the scale. the primary differences are who owns as add additional cloud service But it’s very efficient in terms of the the primary infrastructure and how the capabilities etc.,” Newman told services that we offer to help customers clouds are defined and consumed. We Gulf Times in an exclusive interview become brokers. By that I mean, giving are trying to get parity between the two at the The Venetian Convention IT the ability to provide services to in terms of the capabilities. We are not Center at Las Vegas last week. He businesses from both on-premises and there yet. But the public cloud has an was in the city in connection with off-premises service providers. That’s operating model and infrastructure that EMC World 2016, the company’s what we are trying to enable as a key is optimized for providing consumable annual conference, attended by part of our consulting services.” services, but enterprise IT in private some 10,000 people including clouds isn’t just there yet in terms of customers, analysts and media What are measures the company has being able to deliver those kinds of persons. “We have offices in Doha, taken to mitigate security concerns capabilities.” Dubai and Saudi Arabia. We have that clients may have of its cloud worked with a few government services in the region? What does EMC tell the new clients entities and some military in the “There are a couple of things that we who want to take up the company’s region, but I am not sure which ones work with in terms of being able to services? I can mention publicly. We have offer solutions for encryption for data “For prospective clients, we think that operations in the entire Middle East inflight or data arrest, both onsite and the combination of our products and and North Africa region, besides offsite. We work with a number of solutions for their services are the the Europe and the US,” Newman service providers to help them design best approach to implementing a said. Asked to explain the nature solutions to meet security compliance hyper cloud for them. We have a lot of of cloud services EMC provides requirements. We also have a number experience with our largest customers, in the region in detail, Newman of products and solutions on premises developing and implementing hyper said: “The service that my team for that purpose. And then we have clouds and maintaining them for provides are professional services consulting services that will help a them; those are incorporated back in the region. We also impart customer design and implement a into our engineering processes for new cloud services offered by vCloud management orchestration layer that products and services. We know how to Air and Virtustream. We work with delivers on security and compliance by very quickly stand up these capabilities. enterprises on a direct basis where policy, regardless of the endpoint. So, We follow the best practices in terms of we come and set up projects for the key part of the security concerns is optimizing our application portfolio in them. But the cloud portfolio that understanding the application portfolio the clients’ operating models and take we have created has a number of well enough, to know what applies to advantage of the capabilities that the different delivery vehicles ranging a particular application, and therefore infrastructure and software delivers, from technology implementation, where that application can live. So and that, we think, sets us apart from consulting and professional we are trying to help the customers our competition.” services, to residency services define a profile for applications that are where we come in and provide appropriate to move outside, versus What does he envision for cloud wall-based assistance for a while being onsite to address the security services in the next five years down and finally mandate services, which concerns.” the line? are SLA- (service level agreement) “Within five years, you would see based services. “The way customers IT services being consumed by APS

page_36 REGIONAL & MEMBERS UPDATES

SAMENA TRENDS _ MAY 2016

(Application Packaging Standard) as anticipate this to evolve as the telecom online content than watch TV, except a part of a fully automated process world’s primary access to the region.” in Egypt and the UAE, where an equal in which infrastructure definition “Selecting an innovative technology amount of nationals do both every day. application and data living in a partner like Xtera is imperative to the This increase in online consumption, repository and builds being done in overall success of the project. Xtera however, has not yet materialized into an automated fashion, as opposed to brings onboard the expertise and revenues for video-on-demand (VOD) project-based integrations to stand up professional pedigree to develop an providers, according to the 6,058 adults the infrastructure capabilities.” efficient optical submarine network surveyed in Egypt, Lebanon, Qatar, which will enable Multinet and Omantel Saudi Arabia, Tunisia and the UAE. Tunisie Telecom to ramp to offer cutting edge connectivity “While many nationals go online for services to their customers,” SRG- entertainment, relatively few are willing up fiber rollout 1 Consortium commented. Xtera to pay for online content. Only 17% of State-backed operator Tunisie will supply its turnkey 100G/100G+ Internet users have paid for any online Telecom (TT) is set to accelerate its optimized submarine system solution content in the past year, while 26% are rollout of fiber-to-the-home (FTTH) for this new project, including Nu- willing to pay in the future. Just one in 50 infrastructure, the firm’s CEO Nizar Wave Optima [TM] Submarine Line Internet users paid to watch a TV series Bouguila confirmed at a conference Terminal Equipment (SLTE), undersea online in the past year (2%) and only 4% last week, Agence Ecofin reports. The optical repeaters, undersea branching say they are willing to pay. The UAE is an official also noted that the system had units, cable, all marine services, exception; 15% of Emiratis are willing already been deployed in areas of project management, installation and to pay for TV content online, though Greater Tunis, including Sidi Bou Said. commissioning. “We are delighted to only 6% have paid for content online,” be selected by SRG-1 Consortium to the Media Use in The Middle East study SRG-1 Consortium Se- build this new submarine cable system said. Researchers also found that the as a further validation of our turnkey region’s women are more likely than lected Xtera for Build- offering for high-performance, high- men to watch TV every day (67% versus ing a New Subsea Cable reliability subsea cable systems,” 60%), though both genders are equally said Jon Hopper, President and likely to go online every day. “Nearly a System across the Gulf of Chief Executive Officer of Xtera. quarter of nationals who watch TV have Oman “This new build project represents a done so via the Internet in the past six Multinet Pakistan, the leading second cable project for Xtera in the months (23%); this pattern is relatively domestic and international carrier region after the award of the G2A consistent across countries,” the NU-Q/ in Pakistan, Omantel, the national subsea cable system between Oman, DFI study added. Nationals aged 18- operator of Oman and one of the Puntland and Somaliland, and the 24 are increasingly likely to favor being largest wholesale carriers in the Middle second opportunity to deploy our online to watching TV, with 79% using East, and Xtera Communications, Inc. branching unit after its official launch the Internet compared to 60% watching XCOM, -6.11% a leading provider of at SubOptic 2016 Conference in Dubai TV. They are also almost four times as high-capacity, cost-effective optical in April 2016.” likely to watch content online as those transport solutions, today announced aged 45 or over, researchers found. A the signing of the turnkey supply TV audiences fall by 5% third of university educated nationals agreement for the new subsea cable who watch TV do so online (34%), system Silk Route Gateway 1 (SRG-1). in MENA compared to only 3% of those with only The new cable will be a direct highway Television is losing ground to the a primary education. Television remains from Muscat in Oman to Karachi Internet as viewing platform of choice the platform of choice in the Middle in Pakistan, with a future extension in the Middle East and North Africa, East for watching films, however, with to Gwadar in Pakistan. “The SRG-1 with average TV audiences down by 5% 90% watching movies on their TV sets. project is our ambition to restore the since 2014, according to a recent study. TV is also the most popular platform for significance of the traditional silk route While almost all (95%) of nationals listening to music (65% of all nationals), by establishing a digital gateway to watch TV, the number of those who compared to the Internet and radio (41% the most budding telecom markets watch daily fell from 69% in 2014 to and 35%). Internet and smartphone of the Asian subcontinent”, said Mr. 64% in 2016, according to the latest penetration are significantly higher in Rashid Shafi (SEVP & Chief Strategy survey conducted across six countries the GCC than other countries included Officer, Multinet Pakistan). “This new by the Northwestern University in in the survey. UAE has the highest cable will fuel the massively growing Qatar (NU-Q) in partnership with Internet penetration rate, with most demands of the Pakistani market Doha Film Institute (DFI). The decline nationals connected to the Internet and will bring up an unprecedented is most notable in Qatar, whose daily in 2016. Qatar and Saudi Arabia both reach to China, Afghanistan and TV viewership fell from 62% in 2014 have around 93% Internet penetration, Central Asia,” he further added. to 41% in 2016, followed by Saudi followed by Lebanon at 84%. The Mr. Sohail Qadir, Vice President, Arabia (from 65% to 49%). In Egypt, lowest levels of Internet connection are Omantel Wholesale, commented: the proportion of those watching TV found in Egypt (59%) and Tunisia (49%), “SRG-1 is another reflection of our each day fell from 70% in 2014 to though connections have increased by commitment to the global carrier 63% in 2016. In contrast, the share of 14% in Egypt and 5% in Tunisia in the community to offer them with the Internet users spending time online past year. most efficient routes. The SRG-1 every day jumped 11% from 63% in bridges Asia to Africa and the West 2014 to 74% in 2016. Every day, across through a low latency network and we the Middle East, more adults consume

page_37 REGIONAL & MEMBERS UPDATES

SAMENA TRENDS _ MAY 2016

Saudi Arabia likely website, conducted by its economic 42% in Qatar read news and social affairs department, Saudi to be ranked among Arabia has risen rapidly in the rankings online while Smartphone the five top countries over the years, from 105 in 2003, 90 in penetration on the rise in e-governance by 2004, 80 in 2005, 70 in 2008, 58 in 2010, There are more people in Qatar who to 41 in 2012. The UN’s e-government get their news online than some 2030 index is an assessment of the website countries in the Middle East, according Saudi Arabia is likely to be ranked development patterns in a country, to a six-nation survey conducted by among the five top countries in and infrastructure and educational Northwestern University in Qatar (NU- e-governance by 2030 because of levels, “to reflect how a country is Q) in partnership with Doha Film Institute the changes currently being put using information technologies to (DFI). The study on media use in the in place by the government. This promote access and inclusion of its Middle East released on Wednesday, is according to Ibrahim Al-Baez, people.” It is a composite measure found that more people are getting former media professor at King of three important dimensions of their news online than in print. Qatar Saud University, who said that the e-government, namely: provision of leads in reading news online daily (42 UN’s 2014 report on e-government online services, telecommunication percent), followed by Saudi Arabia (39 services around the world has connectivity and human capacity, the percent). Daily newspaper readership seen the Kingdom ranked at 36 website stated. in Qatar is 32 percent and 25 percent in out of 193 countries surveyed, the UAE. The study sheds new light on according to a report in a local Countries in South the shift from TV to online video. Daily publication recently. Al-Baez said TV viewing dropped in Egypt by seven that Saudi Arabia, according to Asia attract the highest percentage points, Saudi Arabia (16) the International Federation of number of attempted and Qatar (21), but television remains Telecommunication (IFT) index on the platform of choice in the Middle the use of information technology, malware attacks East for watching films -- 90 percent Pakistan, Indonesia, the Palestinian has been given a performance say they watch films on TV, while most territories, Bangladesh, and Nepal in the region now watch film and video attract the highest rates of attempted online and fewer than five percent have malware attacks, according to Microsoft paid money to do so in the past year. Corp. Countries that attracted the fewest Amid concerns about online privacy, include Japan, Finland, Norway and social media use in the Middle East Sweden, Microsoft said in a new study, is shifting from Twitter and Facebook based on sensors in systems running to direct-messaging platforms such as Microsoft anti-malware software. “We Snapchat and WhatsApp. The study look at north of 10 million attacks on found video-centric Snapchat is among identities every day,” said Microsoft the most popular platforms in the high- manager Alex Weinert, although bandwidth Gulf countries. The region attacks do not always succeed. About is divided on whose responsibility it is half of all attacks originate in Asia and to block objectionable content. More one-fifth in Latin America. Millions ranking of 70 percent. He said nationals in Egypt, Qatar and Saudi occur each year when the attacker that these statistics show that the Arabia believe it is the responsibility of has valid credentials, Microsoft said, government is well on its way to be governments to block objectionable meaning the attacker knows a user’s ranked among the top five countries content, while majorities in the UAE, login and password. A technology in the world by 2030. The top five Lebanon and Tunisia believe places are currently held by South it is the responsibility of Korea, Australia, Singapore, France the individual to avoid such and the Netherlands. He said these content. The most evenly measures by the government would divided country is Saudi allow citizens to save time and Arabia, where 50 percent effort in getting their paperwork believe responsibility lies completed by various government with the government and 43 departments, ensure a high degree percent believe it lies with of transparency, and help fight the individual. The biggest corruption. He said government disparity is in Egypt, where departments must make sure 30 percent believe it is the they can adapt to the new form of responsibility of the individual known as machine learning can often administration that would come compared to 66 percent who believe it detect those attacks by looking for data with the provision of e-services is the responsibility of the government points such as whether the location of and the use of the Internet. He to block objectionable content. Use of the user is familiar. On average, 240 cited the Interior Ministry is a good Instagram in the region increased by days elapse between a security breach example of being at the forefront 24 percentage points between 2013 in a computer system and detection of of technological innovation, and 2016 and Facebook’s popularity that breach, said Tim Rains, director of especially with its Abshir system. has declined in the past three years security at Microsoft. According to the UN survey on its by six percentage points. Twitter shows the biggest decline over the

page_38 REGIONAL & MEMBERS UPDATES

SAMENA TRENDS _ MAY 2016 past three years -- 17 percentage listen to non-Arabic music (one-quarter and this just happened in the past two points -- with a 12 percentage point of those between 18 and 24 years old years. The NGSMA auction in 2014 and drop from one year ago. Three- listen to American music, compared the resultant growth has seen Pakistan quarters of Egyptian Internet users to only four percent of those above leading the race for MBB penetration of say concerns about privacy have 45) but are also more likely to listen 19% and still on the increase showing changed the way they use social to music from their own country than 185% YoY growth. Gone are the days media, second only to 89 percent older people. Younger adults (18-24) when mobile internet was rare facility of Saudis who agree. While Internet are also nearly twice as likely to listen to and there was only one person using it penetration levels are up in the music online as on the radio (56 percent in a home. The growing Smartphone region, Internet and Smartphone compared to 31 percent), but only six penetration, availability of affordable penetration are significantly higher percent say they have paid to do so Smartphones and above all access to in the GCC than other countries in the past year. The comprehensive 3G/4G has enable Pakistan to boost its included in the survey. The UAE annual survey examines the use of standing across the region. has the highest rate of Internet and attitudes toward media among penetration with most nationals 6,058 adults (4,529 nationals) in Egypt, Pakistan among Biggest saying they are being connected Lebanon, Qatar, Saudi Arabia, Tunisia to the Internet this year. Closely and the UAE. Victims of Malware Attacks: following are Qatar and Saudi Microsoft Arabia, both at 93 percent Internet Pakistan Leads in MBB According to the recent report of penetration, followed by Lebanon Microsoft Crop, Pakistan has enlisted (84 percent). The lowest levels of Penetration Growth Rate among the biggest victims of malware Internet penetration is recorded in in the Region: GSMA attacks. Other countries like India, Egypt and Tunisia at 59 percent and Enough has been said negative and Indonesia, the Palestinian territories, 49 percent, respectively. However, discouraging about the ICT growth Bangladesh, and Nepal also attract the Internet penetration in these of Pakistan but the fact remains that highest rates of attempted Malware countries is up since last year -- by Pakistan leads the race in Mobile attacks. Countries that attracted the 14 percentage points in Egypt and Broadband in the region. It is time to fewest include Japan, Finland, Norway five points in Tunisia. Smartphone appreciate some of the worth praising and Sweden, Microsoft said in a new penetration is highest in the UAE steps taken by the Government ICT study, based on sensors in systems (99), Qatar (95), Saudi Arabia (95), Managers i.e. MoITT and PTA that running Microsoft anti-malware and Lebanon (90), and lowest in has helped the country to improve its software. According to the report Egypt (61) and Tunisia (43). TV is the position in the region just in the last about half of all attacks originate in Asia most used platform for listening to couple of years. The GSMA Intelligence and one-fifth in Latin America. Millions music (65 percent of all nationals), stats indicate that the rate of Mobile occur each year when the attacker compared to the Internet and Broadband penetration of Pakistan has valid credentials. Millions occur radio (41 and 35 percent). The has witnessed phenomenal growth each year when the attacker has valid Middle Eastern music is proving specially if compared to other regional credentials. Microsoft also added that significantly more popular than countries like Bangladesh, India and American music across the region. Indonesia. Pakistan leads the race when Similar to the trends in film viewing, compared to its regional peers such younger people are more likely to as India and Bangladesh hands down

meaning the attacker knows a user’s login and password. A technology known as machine learning can often detect those attacks by looking for data points such as whether the location of the user is familiar. On average, 240 days elapse between a security breach in a computer system and detection of that breach, said Tim Rains, director of security at Microsoft.

page_39 REGIONAL & MEMBERS UPDATES

SAMENA TRENDS _ MAY 2016

Ooredoo Qatar awards presence in the country. Canar offers wisdom and foresight in granting a home and business voice telephony 4G licence to Zain at a sensible fee Nokia new three-year services and Internet access via fixed amount, as it allowed Zain to invest mobile expansion deal and wireless local loop infrastructure. more in technology and infrastructure, Nokia has agreed a new three- as well as to offer competitive pricing year deal with existing cellco Zain Launches LTE for 4G services. The Sudanese people partner Ooredoo Qatar to expand are ultimately the beneficiaries of this and upgrade mobile network Services in Sudan wisdom.” infrastructure nationwide. Nokia has previously provided LTE-Advanced (LTE-A) carrier aggregation (CA) technology for Ooredoo’s network in Doha, enabling maximum 375Mbps (downlink) mobile data speeds, while the latest expansion contract covers all mobile technologies (2G, 3G, LTE and LTE-A). ‘We continue to enhance the Ooredoo Supernet [the name given to Ooredoo’s converged network] to deliver the best possible internet experience, working with a range of international technology leaders such as Nokia,’ said Ooredoo Qatar’s CEO Waleed Al-Sayed, adding: ‘By deploying these cutting-edge technologies from Nokia, we will continue to actively boost network Zain says that it has launched 4G LTE Digital transformation performance from 2G through to services in Sudan. The launch of the LTE-A, and deliver a host of social, 4G network was announced at a press can double Qatar’s financial and business benefits for conference last week in Khartoum. commercial output to Qatar.’ In the first stage 4G coverage will be extending to the capital Khartoum; $4bn by 2019 Medani; Port Sudan and El Obeid with Digital transformation can double Etisalat sells Sudanese these central and populated areas Qatar’s commercial output to over $4bn fixed-line firm to Zain being launched in cooperation with by 2019, some leading organizations said at a technology event here Etisalat inked a deal to sell its Ericsson. 4G services will be extended yesterday. With hyper-connectivity majority shareholding in Sudanese to other regional centers across the and e-commerce, Qatar’s business-to- telco Canar Telecommunication country gradually with the additional business and business-to-consumer Company to Zain. Under the terms cooperation of Huawei. Zain Sudan markets are set to grow from $2.3bn of the deal, Zain will pay 349.6 initially launched 4G services with in 2014 to $4.3bn in 2019, according million dirhams (€83 million) for nearly 300 sites that are on air now, to the Ministry of Transport and Etisalat’s 92.3% stake in Canar, with 21 other cities in the regions set Communications. At the ‘SAP Qatar implying a per-share price of to gain coverage by the end of 2016, Forum’, Qatar’s energy, public sector, AED17.504, the United Arab with 15 of them by the end of June. transport, healthcare, and construction Emirates-based operator disclosed The population coverage of the 4G leaders emphasized the role of real- in a stock exchange filing earlier network will reach over 20% in the first time insights in the ‘Internet of Things’ this week. The deal requires the stage of roll out. Managing Director era and digital Economy. Business approval of Sudan’s telecom and CEO, Elfatih Erwa affirmed that intelligence can drive 10% annual regulator, the Sudanese National the introduction of 4G places Sudan revenue growth, said a recent IDC Telecommunications Corporation, at the forefront of countries providing report. Nakilat, which hosts the world’s and national competition mobile data services on the continent, largest LNG shipping fleet, with its authorities. Etisalat did not say and features Sudan in an advanced partner Fujitsu, has deployed the SAP when it expects the transaction to position technologically. Zain is keen HANA private cloud platform for real- close. Zain claims to be Sudan’s to transport its customers on a journey time financial and ERP insights. “In an largest mobile operator, with 11.87 towards the cutting edge digital world, era of lower oil and gas prices, now is the million customers at the end of last with 4G also set to bolster the mobile time for Qatar’s oil and gas companies year and a 42% market share. The experience of 2G and 3G services by to invest in the next wave of technology. telco said it saw a 91% increase in adding additional network capacity. Real-time analytics are helping Nakilat data-related revenues in 2015 and “Zain remains committed to delivering to transform our supply chain, while expects further growth this year, the highest quality of service to its fuelling research and development to when it expects to be granted a 4G customers in all the markets in which ensure Qatar remains a world hub for license in Sudan. The acquisition of it operates, and highly appreciates energy innovation,” said Hamad Rashid Canar will also give it a fixed-line the opportunity to introduce 4G into Sudan. The authorities in Sudan showed Suwaid, Information Technology manager, Nakilat. Abdullah Abdulghani

page_40 REGIONAL & MEMBERS UPDATES

SAMENA TRENDS _ MAY 2016 and Brothers (AAB), one of Qatar’s how to protect such systems, such as including five in HD format. Moreover, largest auto dealerships, with use of smart solutions and monitoring the RealVU subscribers will enjoy other partner HICRON Sp. z.o.o., received systems offered by some companies advantages such as recording function an SAP EMEA Quality Award for its to repel such attacks, said Amin. As for and smart electronic program guide,” business transformation project. hacking into the banking system, he said Dmitry Lapitskiy, CEO, Beximco “AAB is committed to helping said such attacks can be categorized Communications Limited. A set-top box businesses and residents receive into three levels: Hacking of individual and dish antenna from an authorized the best customer service. The bank accounts, followed by ATMs and partner are required to receive RealVU, real-time analytics platform the other banking systems. “Such cyber at a cost of BDT 4,499 (US$57.37) + VAT. has streamlined AAB’s supply attacks on 100 banks around the world RealVU will provide its customers with chain, enhanced the customer resulted in theft of $2.5 million. Complex a two-year warranty for the set-top box experience, and helped to diversify attacks are executed by criminal groups along with 24/7 customer service, while products and services,” said Dr who use various means to transfer the partner will install the reception Nasser Abdulghani al-Abdulghani, funds and change account names,” he equipment. Beximco was awarded acting CEO, AAB. During his said. Amin stressed the importance of a DTH license by the Bangladesh keynote, Steve Tzikakis, senior vice guaranteeing protection by putting in Government in December 2013. president and general manager, place a clear and cost-efficient strategy, SAP South Europe, Middle East, as well as promoting awareness among and Africa, emphasized that mega- users about such crimes. Telenor mulling India trends such as hyper-connectivity, options, needs more computing power, cloud, and the block chain are transforming how RealVU DTH TV service spectrum we work, live, and communicate. takes to the air in Norwegian telco’s CEO hints at Indian “Qatar’s organizations are exit if his company cannot secure amongst global leaders in using Bangladesh more frequencies; Telenor writes down a digital core to transform in Bangladesh has its first direct-to-home value of Indian unit in Q1. Telenor this today’s digital economy. The (DTH) satellite TV service after the week lent credence to reports that it is digital transformation of their launch of RealVU by operator Beximco considering pulling out of the Indian organizations is a catalyst for Communications at outlets in , mobile market when CEO Sigve Brekke diversified economic growth, which Sylhet and Chittagong. Reception made it clear that his company needs is aligned with Qatar National Vision equipment for the DTH service, which to secure more spectrum to remain 2030. Visionary CEOs are using is a joint venture between Beximco and competitive and is considering its cloud-based real-time insights the Russian investment and industry options for the future should it fail to make quick, decisive actions, holding company GS Group, will be to do so. “The long-term presence in expand services, and drive omni- available in authorized partner outlets India is dependent on our ability to business models. This results in a in every other division in Bangladesh secure additional spectrum,” Brekke simpler, agile organization, which from August 2016. The pay-TV service’s said, speaking on the Norwegian delivers new levels of customer signal is already available across the incumbent’s first quarter results call. As engagement,” said Tzikakis. South Asian country. “RealVU customers it stands, Telenor is unable to compete will be able to watch 105 channels with in the growing mobile data market, he our package and enjoy digital quality explained. “We need to find a solution 60 million cyber attacks picture and clear sound. The package will and pay a price we can justify,” Brekke reported in KSA in one involve the most popular TV channels said. “That’s why we are looking at the year The Kingdom recorded more than 60 million cyber attacks last year, with sectors such as oil and gas, banking and telecommunications being the main target, an expert in information security has said. “The Kingdom is the most susceptible country in the Middle East to such attacks due to its key status economically and politically,” Mohammed Amin was quoted as saying by local media. Contemporary security problems and infiltrations are especially seen among institutions dealing with oil and gas and desalination in the Gulf because they rely on industrial equipment that can be controlled remotely via the Internet by hackers, he said. The current trend to link everything to the Internet, especially in smart cities, requires additional attention on

page_41 REGIONAL & MEMBERS UPDATES

SAMENA TRENDS _ MAY 2016 upcoming auction, that’s why we during the last five years, according to claim advance income tax at the are looking at potential spectrum- to the annual report of the Pakistan end of the fiscal year. Therefore, WHT trading opportunities,” he said, Telecommunication Authority (PTA). tax deduction system on the telecom although he declined to provide A higher contribution of Rs243.8 services needs to be reviewed by any further information on what a billion was made during 2013/14 the Federal Bureau of Revenue (FBR) justifiable price might be. “We need due to Pakistan Telecommunication and should be rationalized in order to be pragmatic, to consider other Authority’s (PTA) extraordinary to save the poor people from undue alternatives,” if the acquisition of deposits of Rs96.5 billion of the total taxation. Regarding activation tax on more spectrum turns out to be value of 3G and 4G spectrum auctions the issuance of SIMs, the government impossible, he said. India is planning in April 2014. In 2014/15, the telecom charges Rs250 that was imposed in lieu a multi-band spectrum auction this sector contributed Rs126.6 billion of the Customs duty in 2000. However, summer, although details are yet to to the national exchequer in terms currently the government charges be fully finalized. Spectrum-trading of regulatory duties and taxes. The Customs duty on import of mobile in the country is now an option sector is a significant source of revenue handsets in addition to the activation and a couple of early deals have generation for the government in tax. The cellular operators are of the view been announced although they terms of initial and annual license that activation tax should be abolished have yet to be officially approved: fees, initial and annual spectrum fees, to avoid double taxation. The telecom Bharti Airtel recently agreed to Universal Service Fund (USF) and sector has still not been granted the acquire 1800-MHz spectrum from Research and Development (R&D) industrial undertaking status by the Videocon in six circles, and 2.3-GHz Fund contributions, Access Promotion FBR. In the absence of industrial frequencies from Aircel in eight. Contribution(APC) for USF Numbering status, mobile operators are unable The country is also witnessing Charges license, application fee, etc, to adjust the income tax paid at the the beginnings of consolidation: and taxes, including general sales tax time of import of telecom equipment, Reliance Communications is (GST) federal excise duty (FED), SIM which is treated as a final tax liability, currently holding exclusive talks activation tax, advance withholding tax the proposals said. Therefore, industrial with Aircel with a view to brokering (WHT), sales tax on mobile handsets, undertaking status needs to be given a deal, for example. “Reflecting on Customs duties and other taxes. The to the telecom sector, which was also the consequences of this [spectrum- PTA’s annual report said overall telecom agreed by the FBR and the Ministry of trading and consolidation] we have sector taxes and levies in Pakistan Finance, it added. found it prudent to make [an] are considered higher as compared impairment,” Telenor’s acting CFO to the taxes on telecom services in Morten Karlsen Sorby said. Telenor other regional countries. Further GST adjusted down the valuation of its (19.5 percent in Punjab and Khyber- Indian business by 2.9 billion kroner Pakhtunkhwa, 18 percent in Sindh and (€314 million) in Q1, driving it to an 18.5 percent in the rest of Pakistan) and operating loss of NOK3.1 billion in WHT (14 percent) on telecom services India. Revenues at Telenor India are much higher as compared to the grew by 7%, in local currency terms, average 16 percent GST and 10 percent to NOK1.52 billion, but ARPU fell WHT in other sectors. In addition, the by 8% and customer additions were report said in 2015/16 budget, the slower than in the year-ago quarter governments of Punjab, Sindh and at 1.52 million, leaving the firm with Khyber-Pakhtunkhwa have imposed a 44.15 million-strong base across GST on data internet services in the its six operating circles at the end range of 18 percent to 19.5 percent. of March. In terms of revenue share, The government of Punjab has recently Telenor has “a clear number four indicated to withdraw internet tax that position,” in those circles, Brekke would have a positive impact and it is said. However, “we are in India to expected that the rest of the provinces make money. We are in India to have will also follow suit. The PTA and telecom a return,” he said. If Telenor cannot industry believe that rationalization of boost its spectrum position, via taxes on the telecom sector will enhance auction or trading deals, “then we sector’s growth, which may lead to need to look at other alternatives,” better collections for the government he said. levies in the long run. In this regard, the telecom industry has submitted Pakistan telecom sec- tax proposals to the government for consideration. According to the tor makes significant proposals, the government is currently contributions to na- charging WHT at the rate of 14 percent from the telecom consumers, which tional budget is unjustified because most of the Telecom sector has contributed consumers are poor and below the an amount of Rs745 billion to minimum threshold requirement of the national exchequer in terms Rs400,000 for filing the tax return and; of regulatory duties and taxes hence, nontax filers. They are unable

page_42 REGULATORY & POLICY UPDATES

SAMENA TRENDS _ MAY 2016

Necessities of the Evolving Market and Relevant Legislation and Regulation - A Regulatory Perspective A regulation is generally defined as any Regulation, together with fiscal and mechanism by which governments, their monetary policy is one of the three key subsidiary bodies, and supranational levers of state power, and of significant bodies set requirements on industry importance in shaping the welfare of and businesses that have legal force. economies and society. The objective of The term may thus cover a wide regulatory policy is to ensure that the range of mechanism: from primary regulatory lever works effectively, so that laws and secondary regulations to regulations and regulatory frameworks implement primary laws, subordinate are in the public interest. Worldwide rules, administrative formalities and regulatory policy is taking shape in decisions that give effect to higher-level different ways. Different pathways, regulations, and standards. Regulations however, are tending towards common may originate from non-governmental objectives. Many countries did not have a or self-regulatory bodies to which regulatory policy ten years ago but now governments have delegated regulatory nearly most of the countries have it now. powers. Regulations do not only address the activities of the private sector. They To reap the benefits of today’s sector include the rules and procedures that friendly regulations and regulatory frame the internal operation of public policies there is a dire need for telecom authorities, including ministries and operators to expand their digital visions government agencies. Most countries in view of both business needs as well as have a well-established hierarchy socio-economic imperatives. The success of regulations, starting with their now increasingly depends on gaining a Constitution. They usually require that deeper understanding of the evolving lower-level regulations must not conflict digital ecosystem and the value-chain, with higher-level regulations, and that developing or acquiring the capabilities the former must derive their legitimacy needed to flourish, and ensuring that from the latter. such ecosystems remain sustainable. New partnership-oriented mindset and

page_43 REGULATORY & POLICY UPDATES

SAMENA TRENDS _ MAY 2016 strategies need to be adopted across the stakeholder spectrum. For telecom operators to thrive and not simply • Assess impacts and review regulations systematically survive such approaches are integral to future success. to ensure that they meet their intended objectives efficiently and effectively in a changing and complex True progress in the development of the digital economy is economic and social environment. only possible if stakeholder inclusion is enabled and industry • Ensure that regulations, regulatory institutions charged strives for it by bringing the public and the private sector with implementation, and regulatory processes are leadership together. Today the business and our ecosystem transparent and non-discriminatory. are very complex. Fortunately, the governments and • Review and strengthen where necessary the scope, business leaders are not only ready to embrace new insights effectiveness and enforcement of competition policy. and mutually rewarding ways to rethink, they are also fully • Design economic regulations in all sectors to stimulate willing to define their success with each other’s direct competition and efficiency, and eliminate them except involvement. Moreover, fortunately government leaders where clear evidence demonstrates that they are the are becoming fairly more open toward understanding the best way to serve broad public interests. pressing issues that the telecom sector is facing. • Eliminate unnecessary regulatory barriers to trade and investment through continued liberalization and “The Global momentum in digital transformation adoption enhance the consideration and better integration presents an opportunity for governments and private sector of market openness throughout the regulatory leaders to demonstrate the true value of open collaboration process, thus strengthening economic efficiency and in driving cross- industry success and innovation. ICT competitiveness. advancements in telecommunications play a particularly • Identify important linkages with other policy objectives important role as the enabler of building knowledge-based and develop policies to achieve those objectives in economies. Today, connectivity serves as the platform for ways that support reform. all innovation to function and benefit people. Driven by responsible operations, ongoing innovation and open collaboration, telecom equipment manufacturers have The International Telecommunication Union in GSR13 held established a competitive ICT range of end-to-end solutions in Poland issued Best practice guidelines on the evolving in telecom and enterprise networks, devices and cloud roles of both regulation and the regulators in a digital computing, all leading to enabling a future information environment declaring: society and building a better connected world. Mindful of the critical role electronic communications play in In today’s market environment the market failure is today’s digital society, and recognizing the need for efficient considered as state failure. Experts have highlighted that ICT regulation that will both respond to changing market there can be state failure as well as market failure, that is to expectations, and improve social inclusiveness, safety say, the failure of the state to deliver on objectives for well- in case of disaster and development, we the regulators functioning markets and social welfare. The state itself is not participating in the 2013 Global Symposium for Regulators, perfect, and is made up of structures and individuals who recognizing that regulatory reforms take place across a wide sometimes pursue personal objectives in the name of the continuum of evolving perspectives, have identified and general interest. Bureaucracies can be self interested. Benign endorsed these best practice guidelines as innovative and neglect and regulatory capture are real dangers. This implies smart regulatory measures that will facilitate the inclusion the need for closer scrutiny of the issues raised by state of all. intervention, and its benefits. These issues were brought into sharp focus by the 2008-09 financial crisis. Growing interest 1. Innovative and smart regulatory approaches fostering in distributional equity and sustainable development had equal treatment of market players without putting extra already considered distribution among the classes to be burden on operators and service providers Stimulating the central question of political economy. Many countries services uptake and access to online services and are concerned about distributional equity. The argument is applications that economic management should be carried out in such a 2. The evolving role of the regulator: the regulator as a way as to maximize the welfare of the most disadvantaged, partner for development and social inclusion paying attention to distributional consequences of policy 3. The need to adapt the structure and institutional design actions, though not beyond the point at which they would of the regulator to develop future regulation. obstruct on overall prosperity. This increased attention to social impacts has also been associated with the need to give greater weight to environmental concerns and the broader issue of sustainable development.

The OECD Countries have issued a very comprehensive guiding principle for Regulatory Quality and Performance like:

• Adopt at the political level, broad programs of Javaid Akhtar Malik regulatory reform that establish clear objectives and Regulatory Affairs frameworks for implementation. SAMENA Telecommunications Council

Reference: http://www.broadbandcommission.org/Documents/reports/WG-Fin-Invest-2014.pdf www.itu.int/en/ITU-D/Conferences/GSR/Documents/GSR13bestpracticeguidelines_v3_en.pdf

page_44 REGULATORY & POLICY UPDATES

SAMENA TRENDS _ MAY 2016

REGULATORY NEWS

TRAI to start consultation public sector companies such as Google, RailTel MTS, Mahanagar Telephone for sustainable model Nigam Ltd (MTNL), Tata TeleServices Ltd, The Telecom Regulatory Authority of etc have brought out various models for India (TRAI) will soon begin consultations providing wi-fi at public places such as to explore a sustainable model for wi-fi railway stations, airports, coffee-shops, in public places, the body’s chairman R etc. The bulk of free wi-fi hotspots in India S Sharma told The Indian Express in an are in urban centers such coffee shops, exclusive interview The public wi-fi model which help them, attract customers, or has hitherto been explored and worked are sponsored by advertisers. According into by both the government and private to latest available information, state- sector players but remained largely owned Bharat Sanchar Nigam Ltd unsuccessful. In 2014, the Department (BSNL) has installed 2,505 wi-fi hotspots REGULATORY of Telecom (DoT) was working on a across the country until March. BSNL is mechanism to provide wi-fi hot spots in expected to provide these facilities with UPDATES cities with population of over 10 lakh and a minimum speed of 2 Mbps at every in tourist centers. It held several meetings hotspot and will also extended the facility with telecom operators for the scheme to more locations. Whether free wireless but could not decide if the service was to internet services in India are sustainable be kept free or chargeable. The scheme enough is a question that TRAI will aim was part of the government’s flagship to explore during its consultation process, Digital India program, which has been Sharma said. “(The public wi-fi maybe) approved by the government. “What we not necessarily free, because free may want is that user should be able to move not be sustainable in the long run. So, if from one place to another and seamlessly you want to have a really ubiquitous wi- get connected, and without much fi availability, then it has to be based on hassles he should be connected. This is some sustainable business model, which the architecture that we’re looking at — we are going to explore,” he said. interoperability between wi-fi providers, seamless payment methods. These are some of the aspects of how you can T-Mobile US shells out for create a structure which enables the wi-fi more 700-MHz airwaves in public places,” Sharma said. “These are T-Mobile US this week revealed that it some of the aspects of how you can create has brokered another deal to acquire a structure which enables the wi-fi in spectrum in the 700 MHz band, this time public places,” he added. Both private and

page_45 REGULATORY & POLICY UPDATES

SAMENA TRENDS _ MAY 2016 covering the greater Chicago area. and extend a number of regulations protection, measures in the separately The U.S. mobile operator has agreed to online video platforms. The main announced e-commerce package will to acquire the airwaves from AT&T for changes to the directive will see do more to ensure sponsored search an undisclosed sum. The spectrum is online platforms required taking a results are clearly flagged, and the actually licensed to an entity known as more active approach to taking down EC also wants the industry to step-up Leap Licenseco and was picked up by harmful content, such as pornography voluntary efforts to tackle practices AT&T as part of its purchase of smaller and violence, and content that incites such as fake or misleading online rival Leap Wireless just over two years hatred. They will also be required reviews. In addition, the Commission ago. The deal is subject to regulatory to ensure at least 20 percent of will encourage online platforms to approvals and other conditions, and the content in their catalogue is of recognize different kinds of secure T-Mobile expects it to close in the European origin, and EU states will electronic identifications (eID) which fourth quarter of the year. Once it be allowed to require online video offer the same reassurance as their has completed the transaction, the providers to contribute financially to own eID systems. Further regulation telco will begin using the spectrum content production. In an attempt addressing problems raised in the for its Extended Range LTE service in to help broadcasters compete better public consultation by businesses the Chicago area. Extended Range with the online sector, they will be and suppliers dealing with online LTE carries signals twice as far and given more freedom in when they platforms, such as concerns of unfair works four times better in buildings show advertising throughout the day. terms and conditions, in particular for than standard LTE, T-Mobile said. While the cap of 20 percent of time access to important databases, and It launched Extended Range LTE in between 07.00 and 23.00 hours for market access and general lack of December 2014 and the service now ads will be maintained, the maximum transparency, has been put on hold. covers 195 million Americans. The of 12 minutes of ads per hour will be The Commission said it will determine rollout of the service was facilitated lifted. To ensure broadcast regulators by spring 2017 whether additional EU by T-Mobile’s ongoing quest to pick remain independent of government, action in this area is needed. up additional 700-MHz frequencies. the European Regulators Group In early 2014 T-Mobile announced for Audiovisual Media Services will the acquisition of 700-MHz – or A be given more power to assess PTA gives conditional block – spectrum from in regulatory codes of conduct and approval for Mobilink/ a multi-billion-dollar deal. “Since advise the European Commission. The Warid tie up then, the company has embarked Commission also signaled that more on a very successful strategy to roll- regulations for online service providers Sector regulator the Pakistan up outstanding A block licenses, could be forthcoming. Following a Telecommunication Authority (PTA) executing 23 different agreements wide-ranging public consultation last has given conditional approval to to beef up the company’s 700-MHz year on online platforms, the EC issued the merger of mobile operators spectrum portfolio,” T-Mobile said, in a communication saying it will take a Mobilink and Warid. In its notice, a statement. “And that’s in addition to “targeted, principles-based approach” the PTA included a raft of conditions the company’s upcoming participation to dealing with some of the problems and clarifications regarding the in the 600-MHz incentive auction,” it flagged by consumers and businesses. merger process. Notably, though, the said. The telco added that once this This will include a cautious approach watchdog made specific requirements latest 700-MHz deal closes, it will to start, supporting industry co- and regarding the decommissioning of hold A block spectrum that covers self-regulation to ensure flexibility. unused base transceiver stations all of the 10 markets in the U.S. with In response to calls from telecom (BTS). The PTA ordered that all BTS the potential to reach 269 million operators for a ‘level playing field’ with sites of both companies should remain Americans – 83% of the population – OTT providers in terms of regulation, operational for a minimum of four with Extended Range LTE. the EC said it will work from the months post-merger and that any principle that comparable services will unwanted sites must first be offered to be subject to comparable regulations. other operators sharing the facilities. EU to extend broadcast This will be taken into account in In the event that there are no other regulations to OTT sector the ongoing reviews of the telecom tenants, or they do not wish to acquire the surplus sites, Mobilink/Warid The European Commission has regulatory framework and ePrivacy Directive, where some rules for telcos will ‘apply a judicial and transparent approved a proposal to reform the process to transfer ownership of the Audiovisual Media Services Directive may be withdrawn and some rules such as confidentiality requirements BTS sites to other telecom licensees, may be extended to online services. including tower licensees in order The approach was broadly welcomed to avoid possible dismantling of by the European Telecom Network BTS sites.’ Further, the combined Operators association (ETNO). The entity must submit a new reference liability terms in the eCommerce interconnection offer (RIO) to the PTA directive will be maintained and certain within six months of their merger, measures developed to address and any existing interconnection specific sector problems. For example, agreements between Warid and the Commission expects to announce other licensees will be transferred to soon a code of conduct on combating the enlarged company. As previously hate speech developed with the reported by TeleGeography’s internet industry. In terms of consumer GlobalComms Database, the merger

page_46 REGULATORY & POLICY UPDATES

SAMENA TRENDS _ MAY 2016 was approved by the Competition Unit (NFMU) illegally diverted funds However, as Ars Technica points Commission of Pakistan (CCP) in to finance the previous government’s out, the number of net neutrality March this year, albeit with a number ‘One Laptop Per Family (OLPF)’ and complaints is a raw number, which is of caveats, including obliging the e-government policies, Demerara not verified by the FCC itself. Actually, combined company to facilitate Waves reports. A total of GYD1.67 the regulator has yet to identify any infrastructure sharing and to provide billion (US$7.76 million) raised by violations since its rules were passed wholesale access to MVNOs. the NFMU through license fees in June 2015. But the numbers show were diverted to the two projects that net neutrality is firmly lodged in between 2010 and 2015, rather than the collective mind of the US public. Algeria orders closure of going into the Consolidated Fund, The rules ban broadband providers, all private TV stations - the investigation found. The report both mobile and fixed, from blocking, report noted that the NFMU does not have throttling or offering paid prioritization the authority to meet those expenses over their networks. Indeed, some Algerian Prime Minister Abdelmalek and that the funds should be repaid: users might be using the net neutrality Sellal has threatened to close the ‘Total disbursements to cover heading for unrelated subjects, such as country’s around 50 private TV operational expenses of the OLPF and slow speeds or data caps, which upset channels in an effort to quell the e-government projects amounted them. There is no breakdown between “anarchy” in the industry, reports to GYD1.029 billion and GYD278.17 mobile and fixed in the complaints news site Le360.ma. Communications million respectively [between 2012 numbers. As well as being a way for Minister Hamid Grine went further, and 2015]. We recommend that users to air a grievance, complaining ordering “all private channels” to be repayment be sought immediately has a practical purpose too, since closed. The reason given is simply “a from the relevant agency.’ The incorrect operators and ISPs are required to lack of agreement”. The Moroccan inclusion of the disbursements as respond to each complaint within 30 website ventures to write that the an expense of the NFMU ‘distorted’ days. Hence it can be a more effective Bouteflika “clan” is increasingly making the regulator’s operating results, method than going straight to the felt this “liberticidal temptation” in the report added, noting that the operator or ISP. an effort to eliminate any wish for NFMU also owes the Guyana Revenue opposition to its perenity in power. It Authority (GRA) more than GYD1 adds that the Algerian administration’s billion. UK telcos suggest Open- position is reflected in the presidential reach changes clan’s strong arm tactics against Kabyle businessman Issad Rebrab’s attempts FCC received 21,000 net UK telcos Vodafone, TalkTalk and to buy daily newspaper Al Khabar. , plus the Independent Networks neutrality complaints in Cooperative Association (INCA) and one year the Federation of Communication Regulatory risks increase Consumer feedback to the Federal Services (FCS), have jointly written to for telcos in Sri Lanka Communications Commission industry regulator outlining ten proposals which they say will The regulatory risks have risen for indicates net neutrality is firmly lodged in the US public consciousness improve the operation of BT’s network telcos since the new government unit . Ofcom stopped short assumed office in 2015. The a year after rules came into effect. However, according to figures of recommending a full structural government has increased taxes separation of Openreach from BT in on telcos in an effort to shore up published by the US regulator, it is not the most complained-about subject. a review published in February this revenue. Effective from May 2016, the year, though it did say there should government imposed a value-added That’s billing, perhaps unsurprisingly, since it involves users’ money. be changes to the way the division tax (VAT) of 15% and nation building was governed. The group of BT tax (NBT) of 2% on telecom services Billing complaints numbered 23,000. which will increase tax on voice and data services to 50% and 32%, respectively (earlier: 28% and 12%). The government had abandoned an earlier tax proposal which could have diluted the industry’s EBITDA margin by an average of 6%-7%. Fitch revised the outlook on Sri Lanka’s telco sector to stable from negative on January 18, 2016 following the new government budget.

Spectrum agency hit for diverting funds to ICT projects A special probe has found that the National Frequency Management

page_47 REGULATORY & POLICY UPDATES

SAMENA TRENDS _ MAY 2016 rivals is suggesting ten changes for provide technical services to financial mobile in-market consolidation less Openreach: institutions for provision of m-banking likely. While the European Commission • it should become a legally services, without obtaining a separate has approved similar deals in the past, separate company license for this purpose from PTA in recent months it has toughened under the ‘one-to-one model’. Third- its stance toward approving mobile • it should have an independent party service providers that have consolidation mergers. This is board a license from PTA and authorized because it believes remedies, such • it should be allowed to make for providing technical services for as allowing more Mobile Virtual independent investment m-banking by SBP will be authorized Network Operators into the market, decisions to provide technical services to AFIs have been ineffective in terms of • it should consult with customers and telecom operators for offering maintaining healthy competition. This about its future strategy m-banking services under the ‘any- is the second merger between mobile • it should have full control over its to-any model’. The main objective of operators in Europe (the first one was assets third-party service providers should the merger between be to enable interoperability among AB (Baa1 stable) and Telenor ASA (A3 • it should provide all services on financial institutions and telecom stable) in Denmark) that has been the same basis, no matter the operators. derailed due to remedy competition customer conditions imposed by the European • it should have a separate Commission. corporate identity and brand Failed UK Telecoms • it should not inhibit investment by Merger Has Mixed EC opens investigation independent network operators Implications for Wider • it should make BT Consumer’s into German vectoring procurement truly contestable European Market plansl While the European Commission’s • an independent body should be The European Commission (EC) has decision to block CK Hutchison’s created to oversee the transition opened an in-depth investigation into planned acquisition of Telefonica’s to a reformed Openreach. the Federal Network Agency’s (FNA’s) British mobile operator O2 is credit plan to allow Telekom Deutschland negative for both Telefonica and (TD) to upgrade its network with CKHH’s UK telecoms operations, Pakistan launches vectoring technology in areas close its consequences will be mixed to its exchanges, which was approved m-banking regulations for Europe’s telecoms sector, says last month. The EC says it has The Pakistan Telecommunication Moody’s Investors Service today in a concerns about the potential impact Authority (PTA) has released new report. “The failed deal will likely of the proposal on the development ‘Regulations for Technical accelerate fixed-mobile consolidation of competition and on longer term Implementation of ’. in the UK with Telefonica looking for incentives for investment in future- The new regulations came into force on another buyer for O2. On the other oriented networks. While recognizing 6 May. The PTA says these regulations hand, we expect the pace of in-market that the FNA’s proposal would apply to telecom operators and mobile consolidation in the broader lead to broadband speed gains in third-party service providers to offer European telecoms market to slow parts of Germany (of the six million technical services for mobile banking as the fear of increased regulatory households affected, roughly 1.4 through service level agreements with limitations rises,” says Iván Palacios, million would receive download rates authorized financial institutions by a Moody’s Senior Vice President or above 50Mbps for the first time), means of any of the mobile banking and author of the the EC believes that the alternative report. UK fixed- access solutions for rivals offered by line providers Virgin the German watchdog are not yet Media Inc. (Ba3 sufficient to ensure an appropriate stable), Sky plc safeguarding of competition. The (Baa2 stable) and investigation will assess whether Talk Talk (unrated) solutions can be found which are are the most likely better suited to protect competition candidates to and future investment, while still buy O2. A merger allowing for speed-enhancing network with any of these upgrades. The EC has three months to players is unlikely discuss the case with the FNA, in order to have the same to remove any elements giving rise level of regulatory to serious doubts as to compliance restrictions as a with EU law. The Commission may, at mobile merger, the end of the investigation period, as it would not either lift its reservations or issue an remove one of the Article 7a Recommendation, which will mobile players in require the FNA to amend or withdraw models prescribed in these regulations. the market. However, the collapse its draft measure. Under the new regulations, all telecom of the merger is credit negative for operators that have a valid license can European telecoms as it will make

page_48 REGULATORY & POLICY UPDATES

SAMENA TRENDS _ MAY 2016

Supreme Court nixes Android. Operators also have their that, in addition to privacy, operators own requirements for device updates have to secure subscriber data, call drop compensation in terms of testing, which adds further act transparently, ensure private rules complexity to the process. Data from communications stay that way and India’s Supreme Court has ruled that Google shows that only 7.5 devices assure financial transactions are a directive introduced by the Telecom visiting its Play store run the latest carried out safely. Already, the GSMA Regulatory Authority of India (TRAI) version of the OS, with an additional has its Mobile Privacy Initiative in which obliged cellcos to compensate 35.6 per cent running the previous place which established universal customers for dropped calls was release – meaning 56.9 per cent use a guidelines to allay consumer concerns. ‘unconstitutional and arbitrary’. The platform released before 2014. While Within the initiative, the GSMA apex court sided with operators obviously platform updates are not the published its Mobile Privacy Principles and struck down the directive, same as security patches, it does show in 2011, as well as design guidelines questioning the TRAI’s process of the diversity of platforms still in use, for app developers a year later. And making the decision, the Economic and the slowed uptake of newer – and Granryd also pushed the association’s Times reports. As previously reported hopefully more secure – versions. In efforts in the area of identity and by CommsUpdate the regulations comparison, Apple’s tighter control of authentication. The GSMA head said required providers to pay customers the iPhone and its iOS platform means its Mobile Connect initiative – aiming INR1 (USD0.015) for each dropped this is generally perceived as being to allow consumers to use mobile call to a maximum of INR3 per day. faster on the update. The questions phone credentials to securely and Industry bodies the Cellular Operators sent to operators address issues safely access digital services such Association of India (COAI) and such as “issues or hurdles” related to as e-commerce, banking, health, the Association of Unified Service updates; whether devices they sell entertainment and e-government Providers of India (AUSPI) challenged have any specific customisation or – has seen “fantastic” uptake. “In the rules, claiming that the TRAI does software that could need patching; February, we announced there are not have the authority to impose whether operators know the security more than two billion enabled users such requirements and warning that status of devices; and the potential globally, with 34 mobile operators,” it could cost operators upwards of security impact for networks. Also up he commented. “We’re now focused INR30 billion per month. The industry for discussion are differing practices on developing the Mobile Connect bodies also argued that there was no between platforms, and a number of ecosystem, increasing the services mechanism for operators to separate specifics related to Stagefright. Letters linked up to Mobile Connect.” But the reasons for call drops. sent give a deadline of 45 days for new areas of concern are emerging, responses. said Granryd: “As billions of devices become connected via the Internet US watchdogs probe of Things, the possibility of potential GSMA chief says mobile vulnerabilities increases.” “It is essential to consider end-to-end security of The US authorities are to investigate industry has privacy IoT services in the design process,” the security of mobile devices, and in “obligation” he added. The GSMA has developed particular the way in which software Mats Granryd, director general of guidelines for IoT security, likely to updates are distributed. The Federal the GSMA, opened the event by be a key subject at this week’s event. Communications Commission and the warning that mobile operators must The initiative is backed by leading Federal Trade Commission are looking operators, to “better understand, and ultimately vendors and to improve” practices. To this end, infrastructure letters have been sent to operators partners. The asking about procedures for reviewing guidelines and releasing updates, and to eight offer a device makers about how patches common are issued to address vulnerabilities. approach to “There have recently been a growing security for number of vulnerabilities associated IoT services, with mobile operating systems that as well as threaten the security and integrity of practical a user’s device, including ‘Stagefright’ advice on in the Android operating system, cyber security which may affect almost one billion threats and Android devices globally”, a statement data privacy. said. Consumers, it warned, may be “There will left unprotected for long periods of be many new time – or perhaps indefinitely – by challenges poor update processes. It has widely on the horizon as we embrace the been detailed that Android vendors in keep the protection of subscriber Internet of Things, big data, wearable particular have different approaches privacy at the front of their thinking, technology, drones – whatever the to security updates, reflecting a with new challenges already on the next disruptive technology may be,” number of factors including the level horizon. Granryd told an audience concluded Granryd. of customization on top of stock

page_49 REGULATORY & POLICY UPDATES

SAMENA TRENDS _ MAY 2016

Oman, UAE discuss tele- owner Liberty Broadband is expected and providing crisis management. to own between 19% and 20% of the TechPolis’ experience is concentrated com coverage spillovers, enlarged entity. in five regions: Middle East & North interference in border The combination of Charter, TWC and Africa, South & Central Asia, Southeast areas Bright House will create the second Asia, and Latin America. Top officials from telecom regulatory largest broadband provider in the US, authorities of Oman and UAE met in behind cable giant Comcast, serving GSMA calls for India to Muscat over the weekend to discuss more than 20 million broadband interference and coverage spillovers customers. reduce 700MHz reserve in border areas. The talks took place price during the 17th coordination meeting Turkcell negotiates ac- GSMA’s chief regulatory officer, wherein Dr. Hamed bin Salim al John Giusti, has urged India to lower Rawahi, executive president of Oman’s quisition of 100% IsNet the auction reserve price for the Telecommunications Regulatory shares 700MHz spectrum band to meet the Authority (TRA) received Hamad Turkcell, Turkey’s leading cellco by government’s objective of increasing Obaid al Mansoori, Director General subscribers, has issued a statement mobile broadband penetration. “The of UAE’s TRA. “The purpose of the announcing it has authorized its GSMA urges the Indian government UAE delegation’s visit to Oman was management to negotiate the to reconsider the auction reserve to discuss interference and coverage acquisition of 100% of the share prices to better reflect local market over-spilling into the borders of capital of Isbank (Is Bankasi) subsidiary conditions, allow competition in the the two countries. It also aims to IsNet. TeleGeography’s GlobalComms market to determine fair prices… and intensify collaboration on matters of Database notes that IsNet was increase mobile broadband access mutual interest for both regulators,” founded as an ISP in 1999, with the for all,” he said in a statement. The the TRA had said in a statement. The Isbank conglomerate providing 100% telecoms regulator in late January set coordination meeting also discussed of the investment. The company a base price for the band at an eye- among other topics an agreement added a Fixed Telephony Service (FTS) watering $1.7 billion per megahertz. on a technical mechanism to operate Operator license to its portfolio in India’s top four operators, however, 4G mobile network at the borders, 2004 have said since February they may which will reduce the overspill and avoid the 700MHz auction, given their interference. This meeting was held stretched balance sheets and need under the Telecommunications Bureau Market Demand for to beef up their 4G networks with of the GCC Secretariat General. Spectrum has Increased newcomer Reliance Jio soon to launch 4G nationwide. “The reserve price So Upcoming Auction of for this much-needed spectrum are FCC approves Charter 850 MHz will Definitely unrealistic in relation to the economics takeover of TWC, Bright be Fruitful: Ricardo of the mobile industry,” Giusti argued. House Tavares He said if the Telecom Commission Charter Communications’ long- maintains the current reserve price, In an exclusive interview with there is the risk of a failed auction running dual takeover of rival cablecos PhoneWold LIVE (PW), Ricardo Tavares Time Warner Cable (TWC) and Bright or, at a minimum, serious limitations (RT) shed light on his ten year journey on investment capability in next- House Networks has finally been in Pakistan and the ups and downs he approved, the Federal Communications generation networks. “If the spectrum saw in Pakistan’s ICT sector. Ricardo goes unsold, it would be extremely Commission (FCC) has confirmed. In Tavares is a leading international a brief media announcement issued damaging not only for the Indian consultant on ICT policy and mobile industry, but also for the on 6 May, the regulator confirmed regulation. From 2004 to 2010 Ricardo that it has authorized — albeit with country’s economy overall.” With was Sr. VP at the GSM Association, the 700MHz band included across conditions — the application filed by the international trade association Charter, TWC and Advance/Newhouse the country’s 22 service areas, the for mobile operators. He was a Sr. government has estimated it could Partnership (the parent of Bright Director of International Operations at House) to transfer control of certain raise a staggering INR5.37 trillion ($80.5 San Diego, California-based Wireless billion) in the auction, scheduled for licenses and authorizations from Facilities, Inc. from 1999 to 2003, TWC and Bright House to Charter. An July. But the Economic Times reported and was General Manager of WFI’s yesterday that the high reserve price is order detailing the FCC’s reasoning Brazil office in 2001/02, managing the and the conditions, will be issued deterring bidders — specifically Bharti roll out of 1,500 cell sites from radio Airtel, , Idea Cellular in the coming days, the watchdog planning to civil works to core network noted. According to TeleGeography’s and Reliance Communications — and connectivity. TechPolis provides could limit the amount generated GlobalComms Database, following international consulting services the completion of both deals – which in the auction to INR600 billion – to leading players in the mobile INR700 billion. Giusti noted that the were agreed back in May 2015 – technologies sector and helps them TWC shareholders are expected to total recommended reserve prices to navigate policy and regulatory for the seven spectrum bands in the own between 40% and 44% of ‘New challenges by guiding government Charter’, Advance/Newhouse is auction are almost double the cost relations, building industry alliances, of all spectrum investment to date in expected to own between 13% and designing advocacy campaigns, 14% of the new company and Charter India. The amount equates to more

page_50 REGULATORY & POLICY UPDATES

SAMENA TRENDS _ MAY 2016 than 20 times the annual free cash decrease in fiber investment. He Kone, and Minister of Digital Economy of the entire mobile industry in adds that the new regulations could Bruno Kone. Discussions with the India. “The government’s decision to actually depress rollouts in the state are expected to be concluded by reduce spectrum usage charges from business data services market, and the end of the year, with the merger 5 per cent to 3 per cent is a step in decrease the number of fiber and expected to be formalized by June the right direction, but it will not do other high-capacity service options. 2017. Speaking to the local media enough to offset such high spectrum INCOMPAS cheered the FCC’s launch afterwards, Mr Kone suggested that prices,” he said. of a further rulemaking to address the government will ultimately hold a what it calls the lack of competition 31% stake in the new entity, compared in the business data services market. to Orange’s 69% shareholding. Business Data Services: “We are committed to working for Feedback on the FCC technology-neutral policies that Proposed Price Regs ensure providers do not abuse their EC will object to Wind/3 market positions in the prices, terms Italia merger, report Announcement of the FCC’s proposal and conditions for BDS services — to place new price regulations on services that are necessary for wireless suggests business data services is attracting backhaul and competitive services The proposed merger between both heavy criticism and high praise. to business customers, schools, CK Hutchison’s 3 Italia unit and The Commission released a statement hospitals, libraries and government VimpelCom’s Italian subsidiary Wind saying that its data shows that buildings,” Chip Pickering, CEO of Telecomunicazioni will reportedly competition in this market is uneven, INCOMPAS, says. “This action today face objections from the European and that existing rules have “failed to is a critical step forward in promoting Commission’s (EC’s) competition identify markets where competition next generation mobile broadband watchdog. Bloomberg writes that the is lacking, even as they have failed networks such as 5G.” “The FCC is now EC is preparing to send a statement of to identify competitive markets.” poised to usher in a new competitive objections which catalogues antitrust The proposal drew fire from the and sustainable business data services concerns over the EUR21.8 billion National Cable & Telecommunications framework to the benefit of the entire (USD24.7 billion) deal. Unnamed Association, which says that cable’s broadband economy,” BT says in sources cited by Bloomberg say the EC entry into the market for business another statement. “We thank the FCC will issue its report in June, highlighting data services over the last few for its action today and look forward its fears that the proposed 50:50 years has improved services and to continuing our work together to venture could result in higher prices lowered prices for businesses. “It is ensure that competition governs this and less choice for Italian consumers, disappointing that Chairman Wheeler critical input to innovation.” as well as less negotiating power for is responding to this unquestionably the country’s MVNOs, with the market positive development by asking the going from four to three players. Commission to consider imposing Government, Orange onerous new rate regulation on these strike agreement to competitive services,” the association The competition authority is scheduled states. “We are confident that this merge fixed, mobile to release its final decision on the tie- proceeding will expose the obvious assets in Cote d’Ivoire up by 18 August. Neither Hutchison nor VimpelCom have hinted what, harm to investment created by such The government of Cote d’Ivoire and if any, concessions would be made an approach and that the Commission the management team of Orange should the EC object to the deal. will reject the Chairman’s proposal to Group have reportedly signed a The two companies have previously abandon four decades of bipartisan memorandum of understanding defended their proposed merger, pro-competitive policy.” Tom Struble, (MoU) relating to the long-planned however, issuing a joint statement last policy counsel at TechFreedom says merger of fixed line operator CI- month to say: ’The combined business the FCC’s actions cast a pall over Telecom and mobile unit Orange Cote will have the scale, financial strength the market, and points to economic d’Ivoire. The former is 48.5%-owned and a more efficient cost structure to data predicting it could result in a by the government and offer Italian consumers and businesses 51.0%-owned by Orange a state-of-the-art network.’ The two Group, with the remaining firms say they are cooperating with minor stake held by current the EC’s investigation. and former employees, while the cellco is 85%-owned by Orange Group, with the remainder held by SIFCOM. According to news portal Jeune Afrique, the agreement was signed on 28 April by Bruno Mettling, CEO of Orange Middle East and Africa (OMEA), Abdourahmane Cisse, the Ivorian Minister of Budget, Minister of Economy Adama

page_51 REGULATORY & POLICY UPDATES

SAMENA TRENDS _ MAY 2016

Viable Areas of Investment and Stakeholder Partnership In developed and emerging economies One of the dangers of the current strategic coalitions between business, ‘partnership’ movement is that the government and civil society are a idea is fast becoming an ‘end in itself’, growing trend. Such multi-stakeholder rather than a ‘means to an end’. The partnerships are necessary because it is conclusions of the Digital Opportunities increasingly clear that no one sector in Initiative (DOI) suggest that since ICTs society can convey the complexities of are in practice an ‘enabler’ of sustainable sustainable development alone. social and economic development, thus multi-stakeholder ICT partnerships (i.e. Multi-stakeholder partnership (MSP) is a strategic compacts between different very broad term that describes groupings ICT players) are likewise an enabler of civil society, the private sector, the and not an end in themselves. The DOI public sector, the media and other concluded further that the complexity stakeholders that come together for a of meeting the challenge of ICT as an common purpose. Here the partners have enabler of sustainable development a shared understanding that will play requires a holistic approach: the different roles and different purposes, but strategic combination of policies, they can follow combined goals through infrastructure, technology, human partnership and common actions to capacity, enterprise and content. The achieve such goals. These partnerships logic is that the interaction of ICT with are voluntary, with participation driven the goals of sustainable development is by the apparent benefits they may so complex, and the range of resources see emerging from the process. Such and competencies that need to be partnerships are increasingly being used brought together to create complete to challenge the policy processes. In a solutions to specific challenges, so broad, number of cases this is underpinned by that stakeholders across society (from collective research funding to support a government, business and civil society) particular position in the policy process need to be involved both in the design of and to raise general levels of awareness these solutions and their implementation. and knowledge about the issues under consideration. MSPs are about partnerships that are greater than the sum of its parts and about creating lasting and meaningful impact

page_52 REGULATORY & POLICY UPDATES

SAMENA TRENDS _ MAY 2016

at all levels of action. They are meant to promote a more Knowing when to apply a multi-sector ICT partnership holistic approach to development and better governance. approach is about recognizing the convergence of the The concept of MSP as an instrument for achieving following three features: those aspects of the sustainable development goals is sound, particularly when stakeholders development agenda to which ICT can act as an enabler; with unique complementary strengths or core competencies the persistent challenges to the deployment of ICT as an add value to development efforts and pool their resources enabler of sustainable development, in particular, cases and assets in solving problems. But while many laud the where the design of solutions by single parties in society virtues of MSPs, most are struggling to make them work. The or by contractual relationships have failed; those persistent central challenge seems to revolve around the nurturing of ICT for development challenges that, because of their a working relationship based on trust, mutual respect, open complexity, require the strategic alignment of resources and communication, and understanding among stakeholders competencies from across business, government and civil about each other’s strengths and weaknesses. Stakeholders society from each sector bring their own organizational mandates, interests, competencies and weaknesses to partnerships. Individual organizations will enter a partnership with Without open acknowledgement of these factors, and an expectation of securing some type of gain over and without processes in place to facilitate negotiations among above that which they could achieve working alone or stakeholders for optimal outcomes, effective MSPs will not within a conventional contract. For the private sector (ICT emerge. operators, manufacturers, contractors, various forms of service providers etc.) these drivers could include global In a preparatory conference held in Bali in 2002 a set of reputation, market penetration, operational cost saving, risk principles for multi-stakeholder partnerships was drawn up management, access to finance or more visible compliance as input to the World Summit on Sustainable Development. with internal or mandated standards for corporate social Designed for so-called ‘Type II’ partnerships, the principles responsibility. For those public sector agencies involved in directed that the partnerships should: ICT regulation, the driver might be to ensure that change in the regulatory regime achieves the right balance between: • help achieve the further implementation of the (i) Sufficient incentive to attract private capital, and Millennium Development Goals, consistent, where (ii) Taxes, tariffs and pricing policies, along with environmental applicable, with sustainable development strategies and social safeguards, that satisfy the needs of customers and poverty reduction strategies; and the interests of civil society groups. • be voluntary and self-organizing; • be based on mutual respect and shared responsibility For local government authorities, ICT-based partnerships of the partners involved; might be seen as a way to achieve greater efficiency in • have a multi-stakeholder approach, arranged among the allocation of scarce resources, or the faster delivery of any combination of partners, including governments, commitments to public service improvements contained in regional groups, local authorities, nongovernmental economic development plans, either in ICT access or in the actors, international institutions and private sector areas of education or access to health care, employment partners; and and market opportunities or government services. The • be international in their impact, beyond the national drivers for different types of civil society may, for some, be level. about shifting from an advocacy role to one of more direct influence, especially over government policy. Others may be The Bali principles were successful in launching more than driven by the desire to leverage new resources, and others 200 partnerships for sustainable development. However, still, as simply a faster way to deliver on the organization’s over time, as researchers of multi-stakeholder partnerships strategic objectives for environmental protection, social around the globe have analyzed both good and poor inclusion or poverty reduction. practices, it is possible to identify ways in which the Bali Principles might be re-worked, in particular to align them With reference to the above discussion, as well as with the task of formulating partnerships that involve the interpreting the experience of the World Bank’s Business ICT sector. Partners for Development program, two further principles of multi-stakeholder ICT partnerships can be deduced as The multi-stakeholder partnerships convened essentially for follows: the strategic purpose of informing or setting the rules of the enabling environment for ICT (policy, strategy, regulatory Principle 1 – Before agreeing to enter into partnership, regime etc.) are essentially ‘design-orientated’ partnerships, its projected value in satisfying the main drivers for whilst those that are about improving access to ICTs through participation should be objectively weighed against the the use of ICT software, e.g. training or developmental available alternatives and risks. applications (e-health, e-government, e-education, e-commerce) can be thought of as ‘implementation- Principle 2 – A multi-stakeholder ICT partnership will work orientated’ partnerships. Some partnerships, for example, best when it is in the self-interest of each party to pro- those that seek to develop and deploy new forms of ICT actively seek solutions that satisfy the interests of the other hardware – technology or infrastructure – tend to combine parties, i.e. when the partnership is mutually reinforcing. design with implementation.

A series of principles for the formulation and evaluation Javaid Akhtar Malik of multi-stakeholder partnership principles were also Regulatory Affairs discussed as: SAMENA Telecommunications Council

Reference: https://www.odi.org/sites/odi.org.uk/files/odi-assets www.un.org/en/ecosoc/docs/pdfs/fina_ page_53 REGULATORY & POLICY UPDATES

SAMENA TRENDS _ MAY 2016

A SNAPSHOT OF REGULATORY ACTIVITIES IN SAMENA REGION

of its infrastructures by the deployment Algeria of new technologies such as high speed President: Mr. Toufik Bessai [Regulatory Authority for Post internet.” (May 23, 2016) aps.dz & Telecommunication (ARPT)] The Minister of Post and Information The Authority of the Regulation of and Communication Technology, Imane Post and Telecommunications (ARPT) Houda Feraoun, has revealed the has granted provisional licenses of 4G impending restructuring of state-owned technology to the three domestic telecoms operator Algerie REGULATORY operators in Algeria. These are the Telecom (AT) and the opening up of its provisional licenses for the establishment capital to strategic investors, Al Huffington UPDATES and the exploitation of public networks Post Maghreb reports. ‘The restructuring of 4G telecommunications by Algerie of Algerie Telecom is inevitable in view Telecom Mobile (ATM, Mobilis), Optimum of current developments worldwide’, the Telecom Algérie (OTA, Djezzy) and minister was cited as saying, adding that Watania Telecom Algerie (WTA, Ooredoo). ‘after 15 years of existence, it has become The bids submitted by the three mobile imperative for Algeria Telecom executives operators on April 11, were studied by to change the organizational structure the ARPT Committee, which granted the of the company and review its business temporary licenses. The three operators, strategy and its working methods so as to whose managers were present at the be in tune with global technological and ceremony of the announcement of the technical developments.’ In regards to results, will be informed on 29 May of the AT’s listing on the local stock exchange, provinces of their deployment from the Mrs. Houda Feraoun said that an initial first to the fourth year. Minister of Post public offering (IPO) of the telco is a and Information and Communication possibility, as it ‘will boost its efficiency.’ Technologies Imane-Houda Faraoun said The plans for AT’s privatization have been in a speech read on her behalf by the mooted for several years but have come ministry interim general secretary Saliha to nothing. In October 2013 local media Sayeh that with the launch of 4G, Algeria sources suggested that the Conseil des enters “a quality phase of modernization Participations de l’Etat (CPE) – the agency

page_54 REGULATORY & POLICY UPDATES

SAMENA TRENDS _ MAY 2016 managing the Algerian government’s stake in state- 2016. On January 29, 2016 Malaysian-backed Robi and owned business entities – was planning to sell the shares Indian-owned Airtel signed an agreement to merge in of ten nationalized companies, including AT, as part of a Bangladesh under the name of Robi, which would create strategy to boost the local stock market. Both UK-based the second largest cellco in the country. Vodafone Group and Orange Group of France have (May 17, 2016) The Dhaka Tribune expressed interest in acquiring a stake in the operator’s wireless arm Mobilis. (May 3, 2016) telegeography.com The government will prepare guidelines for tower business in telecom sector keeping in mind the cost efficiency of operators that build and maintain towers Bahrain separately and that will ultimately benefit end users. C h a i r m a n : D r . M o h a m m e d A l A m e r State Minister for Posts and Telecommunications [Telecommunication Regulatory Authority Tarana Halim said this at a seminar on “The Prospect of (TRA)] Tower Business in Bangladesh” organized by a Telecom Reporters Network, Bangladesh (TRNB) at Westin Hotel Bahrain is set to launch its Fourth National in the capital. “Uncontrolled telecom towers harm Telecommunications Plan (NTP) after Prime Minister environment…….We will consider level playing field to Prince Khalifa bin Salman Al Khalifa issued Edict No. allow new player for tower business, but up gradation 29/2016 on May 8, approving the move. The Fourth NTP of network would also be considered during making sets out guidelines for the telecoms sector for the next policy,” Tarana said in her address as the chief guest. TIM three years, and targets the deployment of a high speed Nurul Kabir, secretary general, Association of Mobile fiber-optic network across the country. Succeeding Telecom Operator Association of Bangladesh (AMTOB), the country’s Third NTP (issued in 2012), the new Abu Saeed Khan, senior fellow policy of LIRNEAsia, NTP is based on eight themes, including: developing Taimur Rahman, senior director of GR and Regulation the infrastructure of high-speed broadband services, of Banglalink, and Moynul Haque Siddiqui, managing consolidating sustainable competition in the field of director of Fiber@home, attended the seminar. Telecom mobile telecommunications and developing networks Reporters’ Network Bangladesh (TRNB) president Rased and systems to deliver the best services, managing the Mehdi moderated the seminar while its general secretary frequency spectrum effectively and developing wireless Shamim Ahmed presented the keynote paper. The state infrastructure to ensure optimal use of the spectrum. minister said the upcoming policy on tower business Further, the plan aims to improve network security, would ensure foreign direct investment. “We would increase international connectivity, enhance access create competitiveness in tower business…Monopoly to internet applications and services, and develop business would be discouraged through ensuring level Bahrain’s status as a regional ICT hub. The Ministry of playing field in the sector.” She said the government Transportation and Telecommunications (MTT) will head would also consider ensuring lower tower through the implementation of the Fourth NTP. sharing cost so that consumers can get benefit of it. At (May 12, 2016) Bahrain News Agency the seminar, Bangladesh Telecommunication Regulatory Commission Chairman Dr. Shahjahan Mahmood said BTRC encourage investment in telecom sector. He said Bangladesh the commission would provide tower sharing licenses in Chairman: Mr. Sahjahan Mahmud an open tender. “A total of 36,000 mobile towers have so [Bangladesh Telecommunication Regulatory far been installed whereas it would require only 24,000 Commission (BTRC)] towers. This is due to lack of tower sharing, but the quality of service is very poor,” Shahjahan said. Tower would be Bangladesh ended March with 62 million active internet increased after introduction of 4G, he added. The BTRC subscribers, up from 61.28 million internet subscribers chair expressed his dissatisfaction over installation of at the end of March. The country’s mobile internet base five towers on the roof of BIRDEM Hospital building in reached 58.66 million in April, up from 58.04 million Shahbag due to lack of sharing attitude. Shahjahan said in the previous month, according to figures from the they would form a new company to run tower sharing. Bangladesh Telecommunication Regulatory Commission Of the company, BTRC would allow 51% investment from (BTRC). The fixed-line internet user base also increased local sources and the rest from foreign direct investment. to 3.21 million in April, from 3.11 million in March, while Posts and Telecommunications additional sectary the number of WiMAX subscribers declined to 124,000 Shawkat Mostafa said the government would formulate in April, from 131,000 in the previous month. tower sharing license guidelines with the consent of (May 23, 2016) telecompaper.com shareholders. According to Mahmud Hossain, chief corporate affairs officer of Grameenphone, qualified The High Court of Bangladesh granted the government firms should be allowed to get license for tower 22 more days to reach a decision on the planned merger business. The existing mobile phone operators’ towers of two private sector mobile operators, Robi Axiata and will also be considered in the guidelines, he said. Shahed Airtel. It is the fifth time the High Court has accepted Alam, executive vice-president of Robi, echoed the same the government’s time extension plea over the issue. as Mahmud. He said experienced companies should Sayed Mahsib Hossain, representing the Bangladesh be taken into consideration for the tower business, he Telecommunication Regulatory Commission (BTRC), opined. BTRC’s System and Services Division Director said the court had heard all parties including the General Amdad-ul-Bari said mobile operators share only Ministry of Posts and Telecommunications on Sunday, 18% tower among each other. (May 2, 2016) dhakatribune.com adding that the matter will be heard again on June 6,

page_55 REGULATORY & POLICY UPDATES

SAMENA TRENDS _ MAY 2016

factors have been taken into account before announcing Egypt this year’s new rates. Vaezi hinted that calling rates will Acting Executive President: Eng. Mustafa increase, ILNA reported. “Regulating telephone tariffs Abdul Wahid [National Telecommunication Regulatory will benefit both the telecoms sector and the people. An Authority (NTRA)] official statement will not be released until negotiations Egypt’s Minister of Communication and Information on this issue have been finalized,” he said. The minister Technology, Yasser El-Kady reviewed the timeframe to weighed in on investment in the industry and said validate 4G frequencies licenses. The country’s National most new agreements have been made with private Telecommunications Regulatory Authority (NTRA) will organizations, without specifying whether these are put the final touches to the licenses, he added. The local or foreign. “Several foreign firms have announced minister further told reporters on the sidelines of the readiness for investing in Iran’s fiber optics projects Techne Summit in Alexandria that the NTRA would and new agreements will be finalized in the coming finalize the legal drafting of licenses in two weeks with months,” he said.”Foreign mobile phone operators the help of a legal consulting office. He further explained have also approached us to make new investments in that mobile operators would examine the feasibility of this area.” Vaezi said a deadline has not been set by taking those licenses so as to release the new frequencies which Internet tariffs will reduce, though a committee into the market. The Egyptian Cabinet has previously has come together and is investigating the issue. In an approved ensuring licenses for new 4G frequencies in earlier interview, the minister had said Internet tariffs accordance with the NTRA’s standards. The NTRA will be are likely to drop in the current Iranian year (started responsible for the preparation of licenses including the March 20). He lauded advancements in this area and financial and technical commitments in compliance with noted that the current state of Internet connectivity rules and regulations of Communications Regulation in Iran is incomparable to the initial state it had when Act No. 10/2003. This comes within the framework of the administration of President Hassan Rouhani took telecommunication sector development plan that is office in August 2013. “Currently, there are 20 and10 expected to put Egypt on top of countries providing million users of 3G and broadband Internet respectively,” 4G telecommunications services. The decision aims to he said. Referring to the Mobile Number Portability increase government resources and improve services project, he said the project has progressed according to provided to citizens. The minister asserted that plan and “we are ready for launch”. Vaezi said all three releasing more frequencies for 4G and 3G can generate mobile operators, namely Mobile Telecommunications substantial economic returns as well as ease the burden Company of Iran (MCI or Hamrah-e-Aval), MTN Irancell on second and third Generation. This will help offer and RighTel, are ready to launch MNP services that have better quality for voice services and create more job been successfully tested. (May 17, 2016) financialtribune.com opportunities after building new networks. The National Telecommunications Regulatory Authority (NTRA) will Iran’s Deputy ICT Minister has said that the government announce Sunday all the details related to this matter, is looking to boost internet connections in the country the minister said. The four licenses will be issued for all to a minimum 20Mbps within the next five years. mobile companies operating in Egypt, the cost of each Barat Ghanbari says that the scheme will be backed will be determined according to every company’s needs by an investment of USD15 billion, half of which will go to the state-owned Telecommunication Company of frequencies. (May 10, 2016) zawya.com of Iran (TCI). Ghanbari said that internet services The Egyptian government is planning to award 4G mobile in rural areas will be expanded via the deployment licenses within two months, with the National Egypt’s of 4G LTE mobile technology. For many years most Minister of Communication and Information Technology residential internet connections in Iran were limited to Yasser El-Kady. National Telecommunications Regulatory a maximum speed of 128kbps, with the cap only lifted Authority (NTRA) aiming to finalize the legal drafting in September 2014. Meanwhile, TCI is to forge stronger of the concessions in two weeks, according to Egypt’s ties with Kazakhtelecom, with the two telcos signing a Minister of Communication and Information Technology memorandum of understanding (MoU) covering the Yasser El-Kady. Zawya reports that a total of four licenses development of new services and the opening of new will be issued. Meanwhile, an unnamed NTRA official international traffic routes between the Middle East, disclosed that Telecom Egypt would start offering Asia and Europe. The two countries intend to link their mobile services using rivals’ networks if it secures one of respective networks either via a direct trans-Caspian the 4G licenses. Three companies currently offer mobile cable or overland through a neighboring country. services in Egypt – Vodafone, Orange and Etisalat Misr (May 17, 2016) Mehr News Agency (Nile Telecom) – while monopoly fixed line provider Telecom Egypt (TE) is also looking to enter the wireless sector. (May 10, 2016) africatelecomit.com Jordan Chairman of the Board of Commissioners/ CEO: Eng. Ghazi Al-Jobor [Telecommunication Regulatory Commission Iran (TRC)] Deputy Minister and President: Dr. Ali The Telecommunications Regulatory Commission (TRC) Asghar Amidian said it is looking into news circulating on several media [Communication Regulatory Authority (CRA)] outlets that local telcos have plans for new procedures

that require users to subscribe to use Voice over Internet Revised landline telephone tariffs will be announced Protocol (VoIP) services such as Skype and Viber. “We in a month, said the Minister of Communications and Information Technology, Mahmoud Vaezi. Several

page_56 REGULATORY & POLICY UPDATES

SAMENA TRENDS _ MAY 2016 are currently coordinating and discussing the issue connectivity through Hong Kong via China, or Singapore with the concerned companies in line with the legal via India. Service will become cheaper and faster from guidelines governing telecom services... The TRC will June after connecting with both the hubs in Hong Kong announce these measures as soon as possible,” the and Singapore. Internet sharing can also be done along commission said in a statement in response to questions with that,” another official at the NT, Dilliram Adhikari, by The Jordan Times. An expert in the telecom sector told local media. Nepal and China had agreed to said several ads were recently published by telecom enhance connectivity during Prime Minister KP Sharma companies stating that there is a need for subscriptions Oli’s official visit to China from March 20 to 27. and documentations as of end of May and early June (May 14, 2016) economictimes.indiatimes.com for users to be able to use VoIP services. VoIP enables people to use the Internet as the transmission medium Ncell, the largest private telecom company in Nepal, for voice calls. It is used in applications such as Viber, today transferred Rs 9.97 billion to the state coffers, as Skype and WhatsApp. “Telecom companies are generally per the instructions issued by the government to pay in favor of imposing charges on the use of these services applicable capital gains tax on Ncell buyout deal. The as they negatively affect their revenues, with many users amount deposited, as per Ncell, is 15 per cent of the gains making international calls instead of using traditional made by TeliaSonera while selling Ncell to Malaysian voice calls,” the expert, who asked not to be named, told telecom giant, Axiata. “, Ncell has deposited the The Jordan Times. “There are many ways and apps that amount,” a senior official of the Large Taxpayers’ Office can enable users to bypass any block on these services. told THT on condition of anonymity. “The amount was This is not realistic. This is a global controversial issue. extended based on tax liabilities estimated by Ncell. In the Gulf, some countries blocked such services and We’ll now check whether the assessment is correct and others imposed some fees, while in Europe for example make comments.” Earlier, the LTO had directed Ncell to these services are not blocked or charged,” he said. “In deposit 15 per cent of the withholding tax, or the tax Mexico for example, a decision was taken to impose deductible at source for capital gains, by today. Another charges on the use of these apps, but after masses 10 per cent of the gains made from the transaction took to the streets in protest, it was cancelled the next must be deposited by TeliaSonera. Although the tax day.”The expert added that the rise in Smartphone burden on buyout deals does not rest on buyer’s ownership and Internet penetration in Jordan increased shoulders, Ncell had decided to bear the responsibility the usage of these apps. By the end of 2015, there were to quash rumors that attempts were being made to 13.7 million mobile subscriptions in the Kingdom, in evade taxes to the tune of tens of billions of rupees. addition to 7.9 million Internet users, according to the “Ncell is one of the largest taxpayers in Nepal, and has TRC. (May 6, 2016) zawya.com consistently complied with the laws of the country. It has also exercised the highest standards of governance and compliance pertaining to the fulfillment of tax Nepal obligations,” Ncell said in a statement. Yet Ncell is still Chairman: Mr. Digambar Jha reiterating that the capital gains tax should be paid by [Nepal Telecommunication Authority (NTA)] TeliaSonera, which sold its stake in Ncell and generated profit. Today, Ncell Managing Director Simon Perkins expressed the same view while talking to journalists. The Nepal Telecom (NT), the state-owned Nepalese controversy over capital gains tax in Ncell deal surfaced telecommunication company, has completed laying in December when Axiata Group Berhad, through its optical fiber to Rasuwagadi area at the Nepal-China wholly-owned subsidiary, Axiata Investments (UK) border from the capital city Kathmandu, with an eye Limited, entered into a ‘conditional sale and purchase to boosting Nepal-China connectivity. “We completed agreement’ with TeliaSonera UTA Holdings BV and SEA laying optical fiber to Nepal-China border point Telecom Investments BV to acquire 80 per cent stake Rasuwagadi from Kathmandu via Galchhi of Dhading in Ncell for US$1.365 billion. To ascertain whether the district and Dhunche of Rasuwa district three days ago. deal was subject to capital gains tax, Axiata then sought This has paved the way for interconnecting service of advance tax ruling from the Inland Revenue Department. the NT with the China Telecom,” NT spokesperson “The reason why we asked for the ruling was to avoid Pratibha Vaidya told Xinhua news agency. All-Dielectric the situation that we are facing now because tax laws Self-Supporting (ADSS) optical fiber was laid from could be interpreted in many ways. However, many Kathmandu to Rasuwagadi border point, according to government officials, including very senior ones, told NT officials. “We have already started installation of Axiata then that no tax was payable. We still wanted equipment for inter-connectivity with China and trial for certainty (and asked for something) in writing. But service,” she said. The NT has planned to finish trial for government officials decided not to give that. However, direct traffic exchange among Nepal, China and India verbally, they continued to say no tax is payable,” Perkins within this month. “The completion of all the procedures said, adding, “So, when the letter arrived from the LTO about connectivity will have significant improvement in (demanding submission of estimate for capital gains) data and voice services currently being offered by the a day after we closed the transaction, it was a major NT,” she added. Once the Nepal Telecom gets connected surprise for everybody.” (May 10, 2016) thehimalayantimes.com with the China Telecom through optical fiber, it will be directly linked to Hong Kong Data Centre which is one of the two biggest global data centers in Asia, the NT spokesperson said. “Nepal can now establish global

page_57 REGULATORY & POLICY UPDATES

SAMENA TRENDS _ MAY 2016

our homes, our cars, which are increasingly connected. Oman Without collaboration among all of us, we’ll be the E x e c u t i v e P r e s i d e n t : D r . H a m e d A l - R a w a h i [Telecommunication Regulatory Authority weakest link in the chain,” he said. Al Mandhari also referred to the recent cyber attacks targeting banks in (TRA)] the Gulf Cooperation Council, such as in the United Arab The Telecommunications Regulatory Authority (TRA) Emirates, Qatar and Oman. “It’s a serious concern and took part in a workshop organized by the Public Authority we have to work very hard to address cyber security in for SME Development (Riyada) recently. Organized the country and all efforts must be joint. “It’s not only ITA in collaboration with Microsoft Oman, the workshop which is responsible, but it’s everyone’s responsibility. was held to familiarize SMEs and entrepreneurs with Al Mandhari also pointed to the anti-cybercrime law, technological innovations and equipping them with which has been developed by ITA in association with the necessary tools to increase their productivity and the Ministry of Legal Affairs. “We need to work with efficiency, stated a press release. A number of contracts other government and non-government entities to and purchases were discussed during the workshop understand what are the technical requirements and by telecom sector partners such as Omantel, Ooredoo standards to counter cybercrime,” he said. Kalle Bjorn, and Oman Broadband Company. The event is part of Director of Systems Engineering Middle East at Fortinet, a series of partnership opportunities designed to help told TOO that collaboration within the private sector, award around ten per cent of contracts and purchases even between competitors, is needed to protect Oman by large enterprises in Oman. Omar al Qatabi, executive against cyber attacks. “There’s a lot of security spending manager of administrative and financial affairs, TRA said, in Oman, but the problem is that you can never be a “This initiative is in pursuance of the directives of His 100 per cent secure,” he said. Bjorn said more advanced Majesty Sultan Qaboos bin Said to support SMEs.” In this protection than for example firewalls is needed and even context, TRA invited telecom sector partners including competitors in the market have to integrate their cyber various companies and establishments to adopt and security strategies. (May 22, 2016) zawya.com apply this initiative in four phases. The first phase will be to identify the projects and services these SMEs will be Oman has won three awards for its eGovernment efforts capable of providing under competition. Following this, at the ongoing World Summit on Information Society TRA will invite these enterprises to register the services 2016 (WSIS) in Geneva. The summit, organized by the through a form that would be distributed to all telecom International Telecommunication Union, began on May sector partners. In the third phase these enterprises 2. The Ministry of Commerce and Industry’s (MoCI) will undergo training to upgrade the level of services ’Invest Easy’ project won the Champion Award in the they intend to provide. The fourth phase will assess the E-business category while Information Technology outcomes of the initiative and draw up future goals. Authority’s (ITA) Digital Certification ‘PKI’ project won (May 24, 2016) muscatdaily.com the Champion Award in the Building Confidence and Security category. The Omani delegation is being led Oman was targeted with more than 5 million cyber by Abdullah al Rahbi, Oman’s Permanent Representative attacks in 2015, according to the Annual Report 2015 by to the UN in Geneva, Dr. Salim Sultan al Ruzaiqi, CEO the Information Technology Authority (ITA), which was of ITA and officials from ITA. ‘Invest Easy’ has also published last week. The report said ITA’s Information been honored as one of the best projects in the world Security Division had prevented more than 4.8 million that provides eServices through a one-stop shop as attacks against government networks and more than part of the United Nations Conference on Trade and 398,000 attacks against government portals in Oman. Development (UNCTAD). Rahbi and Dr. Ruzaiqi received Oman needs joint efforts to protect itself against these the certificate of recognition from UNCTAD at the US cyber attacks, as the country’s private and government Embassy in Geneva. Dr. Ruzaiqi said, “We are delighted sectors are increasingly focusing on internet technologies with this achievement in which the sultanate has been to serve their customers, said attendees at the IT recognized for the fifth time in a row at WSIS since the Security Roadshow held in Muscat on Thursday. The beginning of our involvement in 2012. We congratulate event was organized by International Data Corporation the people who worked on these projects and we praise (IDC) in association with ITA , and was aimed at creating the efforts of MoCI’s ‘Invest Easy’ project which proved awareness on cyber security in both the government and that it’s one of the best eGovernment projects in the private sectors. Dr. Badr Al Mandhari, director general sultanate.” He added, “We are also proud of the success of the Information Security Centre at ITA, told the of the Digital Certification project in building confidence Times of Oman (TOO) that everyone in Oman is under and security in the use of ICT. It reflects the great efforts threat. “Oman has been targeted many times by cyber made by ITA to provide the right environment for the attacks, both from inside and outside, both government development of various sectors and areas and to achieve networks and individuals. It is not only the government sustainable development to facilitate access to electronic that is being targeted, everyone is being targeted,” he services.” (May 5, 2016) muscatdaily.com said. Dr. Salim Al Ruzaiqi, CEO of ITA , said Omanis have become dependent on Information Communication Telecommunications Regulatory Authority (TRA) has Technology (ICT), as has the government in its dealings issued an Access and Interconnection Regulation and with citizens, therefore, cyber security has become a an Accounting Separation Regulation after a detailed top priority. “ICT has become our lifestyle, but also a consultation process with all stakeholders. The TRA threat. If we don’t put cyber security at the top of our conducted its first market review and designated list, the attackers and hackers will take control. They Omantel and Ooredoo as dominant licensees in retail could shut down governments’ infrastructure or even and wholesale markets. The decisions set out the

page_58 REGULATORY & POLICY UPDATES

SAMENA TRENDS _ MAY 2016 regulatory remedies that the dominant licensees must of Kratos’ extensive experience in the arena of space adhere to in order to safeguard fair competition and radio monitoring systems,” said Yousuf Al-Balushi, Vice prevent abuse of dominance in the relevant markets. President for Spectrum Management Affairs for TRA. The accounting separation requirement was imposed “The SRMS will enable us to better manage the satellite on Omantel for its fixed business only. The objective of spectrum used in the Sultanate and provide for improved the accounting separation obligation is to ensure that cooperation with other telecommunications regulatory dominant licensees in Oman treat other licensees in a fair agencies.” “We are extremely pleased with the results and non-discriminatory manner and that TRA obtains, of the CDR,” said Bruno Dupas, President of Kratos ISE. in the right format and at the right level of detail, the “Satellite spectrum is a national security asset that can be accounting information of licensees to carry out its duties subject to unauthorized usage, interference and other in safeguarding the competitive environment against threats. The GeoMon solution will allow TRA to monitor potential abuses of dominance. Further improvements and geolocate satellite radio frequency transmissions have also been introduced in the procedures for getting with operations automated for LEO and GEO satellites more transparent reporting of separated accounts. in all bands.” Kratos ISE offers turnkey ground segment The regulation requires separate accounts for each solutions encompassing C2, RF/IF equipment, satellite relevant market in which a licensee has been declared and terrestrial communications signal monitoring dominant and for each regulated service in that market. systems, equipment and network management and The Access and Interconnection (A&I) Regulation sets payload management solutions. For 30 years, Kratos has forth the rights and obligations of the dominant and been the leading provider of satellite control systems, non-dominant licensees in a comprehensive manner supporting hundreds of commercial, government and and establishes rules and procedures pertaining to the defense missions on five continents. performance of such obligations. (May 3, 2016) world.einnews.com (April 26, 2016) world.einnews.com

Telecommunications Regulatory Authority (TRA) has amended the Class I license of Awasr, which launched Pakistan commercial fibre-based broadband services in Muscat Chairman: Dr. Syed Ismail Shah last month. The Times of Oman writes that the firm [Pakistan Telecommunication Authority (PTA)] is now also permitted to offer fixed telephony and international telecoms services. Awasr’s fibre-optic broadband services are currently available in the Muscat The Pakistan Telecommunication Authority (PTA) gave its areas of Al Khoud, Al Mawaleh, Al Hail, Maabilah and approval to Mobilink’s planned acquisition of rival Warid Shatti Al Qurum, but the network will expand to new Telecom, subject to certain conditions. Having assessed locations in the northern region, including Al Batinah the impact of the merger on Pakistan’s mobile market, North, Al Batinah South, Al Dhahirah and Al Buraimi looking at pricing of services, spectrum allocations and governorates, as well as to the southern region, including licensing, amongst other things, the PTA said it approved the governorates of Al Dakhiliya, Al Sharqiyah North, Al the companies’ request to merge. However, the onus Sharqiyah South, Dhofar and Al Wusta. For residential is on the merged entity to ensure the move brings customers, downstream connection speeds of 20Mbps, benefits to consumers. “The merged entity shall ensure 50Mbps and 150Mbps are on offer. ‘We will deliver top- [it plays an] active role in enhancing competition other notch services at highly competitive and affordable than [on] price, such as innovation, better quality of prices to everyone, especially since affordability is one service, wider network coverage and enhanced speeds,” of Awasr’s core principles aiming to achieve sustainable the PTA said. Other more concrete conditions include development in the Sultanate,’ commented Issam Al requiring the merged outfit to “reasonable readjust/ Ismaili, head of marketing at Awasr.’ Awasr was awarded rearrange spectrum assignments as and when required a 25-year Class I concession to establish and operate by the PTA,” as well as restrictions on the disposal of public telecoms network in Muscat governorate in cell sites. With regard to the latter, the PTA insists that November 2012. (April 28, 2016) telegeography.com should it elect to close down redundant base station sites, Mobilink/Warid must give first refusal to any other Kratos Defense & Security Solutions, Inc. (Nasdaq:KTOS), company using the site who might wish to purchase it. It a leading National Security Solutions provider, also states that the merged entity should seek to reuse announced that its wholly owned subsidiary, Kratos any decommissioned base stations to extend services ISE, has successfully completed the Critical Design to remote areas. The regulator is also keen to ensure Review (CDR) for the Advanced Space Radio Monitoring that the merged entity’s tariff plans are not “in any way System (ASRMS). The Regulatory Authority (TRA) of the anticompetitive, unfair or burdensome.” The firm will Sultanate of Oman led the review with support from be required to gain PTA approval for its tariffs. Without Kratos ISE personnel. The successful completion of the commenting on the specific conditions, Mobilink issued CDR is significant as it demonstrates that the maturity a statement welcoming the PTA’s decision, describing it of the design is appropriate to proceed with full-scale as “yet another milestone in the regulatory process.” The fabrication, assembly, integration and testing. The deal won the approval of the Competition Commission GeoMon system being supplied to the TRA will include of Pakistan (CCP) two months ago, but the deal still a new building and several earth stations covering L/C/ remains subject to further regulatory approvals and KU/X/Ka frequency bands, a mobile vehicle providing the usual closing conditions, Mobilink said. “I am analysis capabilities for both earth-to-space and space- confident that the combination of the two businesses to-earth signals and an airborne spectrum analyzing will benefit customers through a best-in-class mobile solution. “The Kratos solution has been selected because and high-speed network, and contribute to the overall

page_59 REGULATORY & POLICY UPDATES

SAMENA TRENDS _ MAY 2016 development of the telecommunications sector in addressing a function to commemorate the “World Pakistan as an integral part of the economy,” added Telecommunication and Information Society Day 2016”. Mobilink CEO Jeffrey Hedberg. Mobilink agreed to The minister said that all the economic indicators have acquire Warid Telecom in its entirety in November last been performing well. Mr. Dar said that 10 thousands year in a deal of undisclosed value that will leave Warid’s MW electricity would be added in the system by 2018 current owner, the Dhabi Group, with a 15% stake in which would help in reducing the power shortage for Mobilink. Together the two operators had 49.6 million the industrial sector. “Pakistan is set to take off and it’s customers at the end of April, according to PTA statistics, now just matter of time,” he said adding that credible giving them a 37.4% share of the market. Mobilink is world institutions have termed Pakistan second choicest already Pakistan’s market leader by subscribers with just place for investment and predicted the country to be the over 29%, but number two operator Telenor is hot on its 18th biggest economy of the world by 2050. However, a heels with about 1 million fewer customers. lot more still needs to be done; he said adding that with (May 24, 2016) totaltele.com efforts the dream of becoming 18th biggest economy could be materialized by even 2030. He said that Business The absence of several major telecom operators from a Confidence Index for Pakistan has changed from preliminary meeting regarding next month’s spectrum minus-34 to + 36. By taking steps to ensure intellectual auction has prompted concerns that many of the property rights, the confidence of investors in Pakistan incumbents will sit out of the competition. The media has also gone up. Minister for Information Technology cites a senior Pakistan Telecommunication Authority (PTA) and Telecom, Anusha Rehman said that IT sector has official as saying that only Mobilink, Telenor, WorldCall potential to contribute 1.5 percent in the GDP. She said and Multi Net took part in the meeting, suggesting that that broadband penetration would touch 38 percent by Pakistan (CMPak, which operates under the 2018 which currently stands at 18%, higher than India Zong brand) and Ufone will not take part in the auction, and Bangladesh. She said that Rs 14 billion projects which features a single 2×10MHz block of 850MHz were in place to promote IT sector while the government spectrum with a base price of US$395 million. Operators through Telecom Policy 2015 and Cyber Crime Bill has have until May 29 to submit applications to take part in addressed most of the issues confronted by the sector. the tender, but the source noted that the PTA has yet to The Minister said that despite challenges, grey traffic receive an application from any of the nation’s cellcos. was curbed. Anusha Rahman said introduction of mobile Although Mobilink and Telenor – the largest and second broadband has contributed a lot in connecting people largest mobile providers by subscribers respectively – and increased internet penetration in the country attended the meeting, Mobilink is not expected to make from mere 3 percent to 18 percent in a short period. an offer, as its planned acquisition of Warid will give it a Availability of these technologies have resulted in speedy toehold in the 4G market, whilst Telenor has yet to be proliferation of broadband access both in urban and given the green light by its Norwegian parent to enter rural communities with a record achievement of more the competition. (May 24, 2016) Pro Pakistani than 30 million subscribers in less than 2 years. She said that the previous spectrum auction fetched $ 1.2 billion The Pakistan Telecommunication Authority (PTA) has for the national exchequer. In addition, around $1.3 released ‘Regulations for Technical Implementation of billion worth of investments are being made in rolling Mobile Banking’. The new regulations came into force on out of 3G/4G networks and infrastructure. She said IT May 6. The PTA says these regulations apply to telecom exports and services have increased by 41 per cent operators and third-party service providers to offer since 2013 by just reorganizing the processes. Pakistan technical services for mobile banking through service is now at number four in the world when it comes to level agreements with authorized financial institutions by freelancing. This achievement is very encouraging which means of any of the mobile banking models prescribed remained unknown to most in the public domain. She in these regulations. Under the new regulations, all said prospective young and energetic IT professionals telecom operators that have a valid license can provide would soon be under umbrella of National Incubation technical services to financial institutions for provision Centre of the Ministry. These startups with potential to of m-banking services, without obtaining a separate become IT giants will be given full facilitation including license for this purpose from PTA under the ‘one-to- premises, mentorship and opportunities to reach out one model’. Third-party service providers that have a to local and international markets. The centre will be license from PTA and authorized for providing technical managed by a private partner. Every year 40 start-ups services for m-banking by SBP will be authorized to will be hosted in the centre with each startup comprising provide technical services to AFIs and telecom operators of 5-10 member team. The Minister said ICTs for young for offering m-banking services under the ‘any-to- girls system has been launched with joint effort of any model’. The main objective of third-party service Pakistan Baitul Maal (PBM), Universal Service Fund (USF) providers should be to enable interoperability among and Microsoft to help prepare many young girls from financial institutions and telecom operators. underestimated area of society, with a goal that they (May 17, 2016) telecompaper.com can get suitable occupations. Chairman PTA said for the consumers, availability of high speed mobile broadband Finance Minister, Senator Muhammad Ishaq Dar services in both urban and rural areas is encouraging announced that auction of Next Generation Mobile a more connected community and promoting Services (NGMS) spectrum (3G) would be held on e-commerce related activities. He said next generation June 20. He urged the investors to take benefit of this mobile services are considered an enabler towards GDP opportunity for their better interests as the spectrum growth and help introduce more innovative e-services. auction approaches. He made this statement while Country Head of Microsoft, Nadeem Malik expressed

page_60 REGULATORY & POLICY UPDATES

SAMENA TRENDS _ MAY 2016 commitment of his organization in promoting ICT and consultant(s)/consulting firm was required to conduct hoped this particular initiative would help materialize the market study/analysis to advise PTA on future auction government’s vision to make Pakistan a digital country. of the spectrum (850MHz, 1800MHz) in accordance Head of Mobilink said that stability and security have with the RFP. The Interconnect Communications was been established in Pakistan. (May 17, 2016) propakistani.pk the lowest bidder and was selected for the market assessment and on its report; the government dropped Pakistan’s telecom regulator will auction off spectrum in the idea to go for auction of all unsold spectrum i.e. the 850 MHz band in mid-June, it announced earlier this 850MHz and 1800MHz simultaneously. Then there was week. The Pakistan Telecommunication Authority (PTA) a need of second consultant for marketing purposes will sell off 10 MHz of frequencies in the 850 MHz band to attract new investments for the spectrum auction on 13 June, it revealed. The spectrum in question was of NGSM. For the second consultancy contract two left unsold at a 2014 auction. It carries a reserve price consultant firms including Value Partners Management of US$395 million (€349 million). The PTA’s timeline for Consulting Limited UK (VMPCL) and C21 World were the process gives would-be participants until 1 June to short listed and their technical evaluation was also submit applications and pay a deposit equivalent to reportedly completed. However, since there’s zero 15% of the reserve price; successful applicants will be percent chance of any new entrant, PTA decided not to notified on 6 June. The regulator did not say when it will hire second consultant to market the spectrum auction. publish the results of the auction. Pakistan still hopes to Not to mention, Value Partners (VMPCL) had provided attract a new market entrant via the auction – the 850- consultancy services for the previous 3G/4G auction to MHz spectrum in question was initially reserved for that PTA held in April 2014. (May 2, 2016) propakistani.pk purpose – but the sale will also be open to the country’s existing mobile operators. (May 13, 2016) totaltele.com Pakistan Telecommunication Authority (PTA) has Enough has been said negative and discouraging about released Information Memorandum (IM) for use of the ICT growth of Pakistan but the fact remains that spectrum in the 850 MHz range and to grant the Pakistan leads the race in Mobile Broadband in the successful bidders rights to establish, maintain and region. It is time to appreciate some of the worth praising operate Next Generation Mobile Networks (NGMN) and steps taken by the Government ICT Managers i.e. MoITT to provide Next Generation Mobile Services (NGMS) and PTA that has helped the country to improve its across Pakistan. The process of the award is named as the position in the region just in the last couple of years. The Next Generation Mobile Services Award (NGMSA). This GSMA Intelligence stats indicate that the rate of Mobile Information Memorandum (IM) from PTA sets out the Broadband penetration of Pakistan has witnessed rules, process, planned timetable and other background phenomenal growth specially if compared to other information to help prospective Applicants to decide if regional countries like Bangladesh, India and Indonesia. they wish to apply to participate in the NGMSA. Hence, Let’s have look at the graphs for the past two years i.e. the document aims to provide operators with auction 2014 and 2015 that illustrates the enhanced growth details. PTA also provided an overview of the Pakistan’s of Pakistan’s mobile broadband penetration: Pakistan telecommunication sector in the Annexure A. Prospective leads the race when compared to its regional peers applicants are advised to seek their own expert advice such as India and Bangladesh hands down and this just on whether or not to participate in the award process happened in the past two years. The NGSMA auction in and on any other matters concerning financial, legal, 2014 and the resultant growth has seen Pakistan leading technical or other implications of the award process and the race for MBB penetration of 19% and still on the associated policies. PTA may also conduct an information increase showing 185% YoY growth. Gone are the days session for prospective applicants to explain the auction when mobile internet was rare facility and there was only process and rules and other details. This information one person using it in a home. The growing Smartphone session will take place soon and will be announced by penetration, availability of affordable Smartphones and PTA. Its only purpose will be to clarify any questions that above all access to 3G/4G has enable Pakistan to boost prospective applicants may have about the application its standing across the region. (May 6, 2016) phoneworld.com.pk process and auction itself. (April 29, 2016) phoneworld.com.pk

A pessimistic Pakistan Telecommunication Authority The Pakistan Telecommunication Authority (PTA), (PTA) has dropped the idea of hiring consultants to attract revealed in its report that the annual revenues of the new investments in the auction for Next Generation telecom sector have touched almost Rs 449.6 billion Mobile Services (NGMS) spectrum (3G/4G). “There during 2015 presenting a trivial drop as compared to is no chance of new telecom operator/entrant as the previous year. The sector recorded annual revenues of market is already consolidating”, said a senior official of Rs 463.5 last year, whereas these were Rs 439.5 billion PTA while speaking with ProPakistani. “Though PTA has in 2013/14, Rs 409.2 billion in 2011/12, and Rs 367.3 sought applications through national and international billion in 2010/11. The cause was that Wireless Local media for the upcoming spectrum auction, apparently Loop (WLL) sector has been hit hard with around 40% no new telecom player will bid for the auction”, said drop in revenues of small WLL companies apart from the official adding that the process to be employed by PTCL. Even the cellular division presented a decline the Authority for auction of 850MHz spectrum will be of around 2% in its profits stream from the last year, open outcry auction in case if demand is more than basically owing to biometric verification initiative and the available spectrum. Fearing poor response from the subsequent loss in subscriptions i.e blocking of illicit and market, PTA had earlier decided to hire two types of unverified SIMs, which also offset the revenue cohort consultancy services of internationally repute for market opportunities opened up with take off of 3G and 4G assessment and marketing of spectrum auction. The first services. The report issued by PTA disclosed that sale

page_61 REGULATORY & POLICY UPDATES

SAMENA TRENDS _ MAY 2016 of new connections were also deferred at dealers and related to cooperation between GCC countries and the provisional outlets during the re-verification drive for a Hashemite Kingdom of Jordan. The decision on the date time period of 91 days. However, it is anticipated that and location of the 28th Meeting of GCC Committee for data services would deliver incentive to revenue streams Under-Secretaries of Post and Telecommunications will of the cellular mobile operators in upcoming years. also be taken in the Riyadh meeting. (May 23, 2016) cra.gov.qa Telecom sector is one of the most vibrant sectors of the economy, where technology is constantly fluctuating The Communications Regulatory Authority (CRA) marked and bringing new avenues of growth and vigorous the World Telecommunication and Information Society revenues, while making some of the customary ones less Day (WTISD) by announcing its plans to integrate the cost-effective. The telecom operators are also facing a International Telecommunication Union’s (ITU’s) World new chapter of competition from the Over the Top (OTT) Radio Communication Conference (WRC) outcomes into services such as Skype and WhatsApp etc, substituting Qatar’s national regulatory framework. The outcomes part of their voice revenue. The report said these were a result of comprehensive discussions during changing subtleties are closely redirected by the drifts in WRC-15 held in Geneva in November 2015. WTISD is voice and data revenues, data revenues are now 25.6% celebrated across the globe to help raise awareness of the total telecom profits compared to 12.4% in 2010. of the possibilities that the use of the Internet and In latest years, data revenues of cellular mobile sector other information and communication technologies have revealed a considerable rise; an increase of over (ICT) can bring to societies and economies, as well as three times during the past five years. In 2015, mobile of ways to bridge the digital divide. It was formerly data revenues were Rs77.9 billion, which is 25% of entire known as World Telecommunications Day. Qatar is a cellular revenue. (April 29, 2016) phoneworld.com.pk signatory to the ITU Convention, which obliges Qatar to comply with the ITU’s Radio Regulations. CRA President Pakistan’s Ministry of Information Technology (MoIT) has Mohammed Ali Al-Mannai signed the Final Acts revising instructed the Pakistan Telecommunication Authority the Radio Regulations at WRC-15 on behalf of Qatar. (PTA) to auction a single concession for 850MHz The benefits to Qatar from the outcomes of WRC–15 frequencies, including airwaves left unsold from the are considerable and CRA has developed a domestic previous spectrum auction in April 2014. The new 15- spectrum management plan for these outcomes in year, technology neutral license will consist of 2×10MHz preparation for bringing into force the latest version of at 824MHz-834MHz/869MHz-879MHz and carries a ITU’s Radio Regulations at the start of 2017. Integrating reserve price of US$395 million. All existing operators WRC-15 outcomes into Qatar’s national regulatory and any potential newcomers are eligible to participate framework will be achieved predominantly through in the sale. No timeline was set for the sale, but the updates to Qatar’s National Frequency Allocation Plan MoIT’s order calls for the watchdog to carry out the and coordination with relevant stakeholders. “Updates auction ‘in the minimum possible time’ and within the to Qatar’s regulatory regime reflecting the revisions to 2015-2016 financial year (ending June 30, 2016). ITU’s Radio Regulations will spur long-term investment (April 28, 2016) telegeography.com in Qatar’s ICT industry by improvements in a number of areas including broadband communications, air and road safety, and disaster relief,” said Faisal Al-Shuaibi, Qatar CRA’s spokesperson. The WRC-15 outcomes identified President: Mr. Mohammed bin Ali as being of particular interest to Qatar and which have Al Mannai a corresponding plan for implementation by CRA are [Communications Regulatory Authority (CRA)] summarized below:

• Allocation of spectrum to facilitate new mobile A high-level delegation representing Qatar is broadband applications participating in 27th Meeting of GCC Committee for • A globally harmonized frequency range 694-894 Under-Secretaries of Post and Telecommunications MHz for Public Protection and Disaster Relief (public being held in Riyadh from May 23 to 24, 2016. The Qatar safety communications) delegation is headed by Mohammed Ali Al-Mannai, • A new resolution to allow development by the President of the Communications Regulatory Authority International Civil Aviation Organization (ICAO) of (CRA). The Qatar delegation comprises Eng. Khalid N. worldwide standards for unmanned aircraft systems’ Sadiq Al-Hashmi, Assistant Under-Secretary of Cyber satellite communications in certain frequency Security Sector, Ministry of Transport & Communications; bands, and international regulatory conditions that Ali Al-Suwaidi, IT Section Head, CRA; and Eng. Faisal may be applied to these systems Al-Shuaibi, Institutional Relations Officer, CRA. During • An allocation of 250 MHz in the frequency range the meeting, the GCC Under-Secretaries Committee 13.5-13.75 GHz (DL) and 14.5-14.75 GHz (UL) for will discuss several topics related to the developing downlink and uplink of the fixed satellite service of postal and telecommunications sectors in the GCC (FSS) member states and means of boosting cooperation. • Mobility applications accessing FSS spectrum to The meeting agenda includes discussions about the receive a boost with 1.2m earth stations on vessels recommendations by several other committees and being approved beyond 330Km of shore, and with working groups including Committee Meeting for Posts the access to the Ka-bands 19.7-20.2 GHz and 29.5- Under-Secretaries and Chief Officers, Telecommunication 30 GHz by earth stations in motion (ESIMs) Legislations and Regulations Committee, Roaming • Improve the global tracking of aircraft anywhere Working Group, GCC Technical Office of Technical in the world by satellite receivers of civilian aircraft Committee, and the Working Group of OTT Legislations using existing transmissions from aircraft. This and Regulations. The Committee will also discuss matters

page_62 REGULATORY & POLICY UPDATES

SAMENA TRENDS _ MAY 2016

is a high profile issue after the disappearance of Monitoring is conducted 24-hours a day through the Malaysian Airlines Flight MH370 in March 2014 National Control Center and the fixed and directional • Consider spectrum demand for on-board finding stations. Mobile monitoring is conducted by communication stations in the maritime mobile CRA’s experts at regular intervals and each time CRA service receives a complaint of interference or illegitimate • Enable possible new Automatic Identification use of spectrum. The fixed and mobile stations of System (AIS) technology applications and Qatar are being registered with the International possible new applications to improve maritime Telecommunication Union (ITU), to empower CRA to be radiocommunication a part of international monitoring activities for research • Allocate 15 KHz spectrum in the frequency range studies through ITU’s Radiocommunication Bureau. 5250-5450 KHz for Amateur Radio Service (ARS) CRA encourages all consumers of radio communication • A global spectrum allocation for wireless avionics devices to report any interference issues or concerns intra-communications (WAIC) to facilitate the through the dedicated Consumer Telecom Hotline – 103, transition to wireless within aero planes or via email at [email protected]. • A global allocation for short-range high-resolution (May 2, 2016) cra.gov.qa automotive radar in the 79 GHz frequency band to improve road safety and efficiency in technology for driverless cars. (May 17, 2016) cra.gov.qa Saudi Arabia Governor, Deputy Chairman of the BoD: As part of its mandate to ensure effective and legitimate Dr. Abdulaziz Bin Salem Al Ruwais use of the radio spectrum in Qatar, the Communications [Communication & Information Technology Regulatory Authority (CRA) has launched a state-of- Commission (CITC)] the-art nationwide Automated Spectrum Monitoring International Data Corporation (IDC) identified that System (ASMS) to ensure interference free spectrum to digitization will play a critical role in enabling the authorized licensees. Monitoring the radio spectrum is Kingdom’s vision for the future. Saudi Arabia recently essential under CRA’s Spectrum Policy and Regulatory announced Vision 2030, a long-term economic blueprint Framework to ensure its legitimate use. Monitoring for branching away from its dependence on oil. “Vision identifies and eliminates sources of interference that 2030 includes regulatory, budgetary, and policy changes degrade public or private telecommunication networks, that will impact all major aspects of the economy, with for example and not limited to radio and television technology featuring as a key enabler and driver for many networks, mobile telecommunications networks, of the changes envisaged,” said Jyoti Lalchandani, IDC’s and critical frequencies used for aviation, maritime group vice president and regional managing director operations and emergency services. Monitoring is also for the Middle East, Africa, and Turkey. “Implemented needed to investigate harmful interference complaints correctly, digitization initiatives will help drive economic and to collect data for determining compliance by radio and social development, promote good governance, and frequency users with national rules and regulations. enhance national security. However, for this to happen, “Radio spectrum is a scarce national resource and ASMS there must be a concerted effort by organizations across infrastructure is vital for preventing its illegal use, as well sectors and industries to align their ICT strategies with as reducing cases of interference. CRA has invested in the Vision and its overarching executive programs.” To this infrastructure to ensure all public and commercial assist in the process, IDC’s research paper identifies key radiocommunication networks operate effectively challenges which must be addressed to facilitate the and without interruption. ASMS infrastructure is also transformation and provide guidance for the government, essential to provide the necessary support in managing public sector organisations, telecommunication service spectrum during major international and national events providers and other industries in general. Abdulaziz Al- such as World Cup 2022, where high spectrum demand Helayyil, IDC’s regional director for Saudi Arabia, Kuwait, requires detailed planning and monitoring,” said and Bahrain and head of business development for Faisal Al-Shuaibi, CRA’s Spokesperson. The new ASMS national ICT development in the GCC added: “There is ecosystem comprises: a clear opportunity to leverage emerging information • Four Fixed Monitoring Stations (FMS) and and communications technologies in order to enhance Directional Finding (DF) systems public service delivery and overall government • Two Time Difference on Arrival (TDOA) Monitoring effectiveness and efficiency. “Indeed, ICT can lead to Stations significant improvements in the citizen experience if • Two Mobile Monitoring Stations (MMS) employed through an omni-channel approach, while the • National Control Center (NCC) implementation of shared services and e-procurement The fixed stations are unmanned, remotely controlled tools can considerably improve the efficiency, cost- stations strategically located in different parts of Qatar effectiveness, and transparency of government to maximize monitoring and geolocation results. operations.” IDC believes that the digitization of industries The mobile monitoring stations are installed inside will ultimately lead to improved competitiveness, with customized vehicles deployable in any area of the ICT proving invaluable in automating end-to-end country as required. The ASMS components are used business processes across the entire supply chain. by CRA to monitor operational radiocommunication Manufacturing is one obvious beneficiary, where the equipment throughout the state of Qatar to check Internet of Things (IoT) will enable manufacturers to “bandwidth occupancy” and to ensure all spectrum leverage a combination of software, sensors, and IP- bands are used as specified. Idle spectrum bands are also enabled connectivity to drive innovation around their monitored and recorded for future planning purpose. products and processes. But manufacturing is not alone,

page_63 REGULATORY & POLICY UPDATES

SAMENA TRENDS _ MAY 2016 with the Kingdom’s healthcare and tourism industries year and accounted for about 15 per cent of mobile also poised to embrace emerging technologies in order revenue. Dialog, the market leader with 10.5 million to enhance the services they offer. IDC’s paper proposes connections and 41 per cent share, will likely increase that digitization initiatives must not be the sole preserve its 2016-17 capex to 30 per cent of revenue from 23 of large-scale enterprises, explaining that the integration per cent last year to expand its 3G/4G networks and of technology into their operations by SMEs can play a fiber infrastructure. Fitch said the tax increases could crucial role in increasing their productivity, enhancing accelerate industry consolidation to reduce the number their contribution to national economic output, and of players to three from five. Two smaller, unprofitable thereby supporting the diversification aims of Vision operators – Hutchison Lanka and Bharti Airtel’s Sri 2030. However the implementation of a sophisticated Lanka subsidiary, Airtel Lanka – may exit the industry. nationwide digital infrastructure will be integral to It believes Dialog and Sri Lanka Telecom could acquire empowering the citizens of the future and providing smaller telcos to strengthen their market position and businesses of all sizes with the tools required to drive consolidate spectrum. Malaysia’s Axiata Group and greater growth, agility, and competition for the benefit India’s Bharti Airtel announced in February they were of the Kingdom as a whole. (May 24, 2016) itp.net discussing merging their operations in Sri Lanka to create a company serving half the country’s 25 million Telecom operators in Saudi Arabia are expected to mobile connections. Dialog reportedly approached gradually increase their prices for data services to keep authorities in early February about a possible takeover up with the newest modifications to its revenue formulae of Airtel Lanka, which has a 9 per cent share with 2.3 and maintain its profits, said a new report by Riyadh million mobile customers. (May 24, 2016) mobileworldlive.com Capital. The fixed line segment has witnessed minor changes, the research firm noted, indicating that the data segment will maintain its superior position with regards Sudan to the development of housing and technologies in the Director General: Dr. Yahya Abdullah Kingdom. As for Saudi Telecom Company (STC), the Mohamed largest operator in Saudi Arabia, the revenue formula [National Telecommunication Corporation has already begun affecting the company’s profitability (NTC)] as revenues from data increased whereas profit margins Emirates Telecommunications Corporation (Etisalat) were down compared to the mobile phone segment, has announced the signing of a share purchase Riyad Capital added. (May 14, 2016) english.mubasher.info agreement with Kuwait-based Zain Group for the sale of its 92.3% stake in Sudanese fixed line operator Canar Telecommunication Company (Canar). Under Sri Lanka the terms of the deal, Etisalat will receive a total cash D i r e c t o r G e n e r a l : M r . S u n i l S . S i r i s e n a consideration of AED349.6 million (US$95.2 million) [Telecommunication Regulatory Commission upon completion of the transaction, implying a price (TRC)] per share of AED17.50. The move will consolidate Zain Group’s presence in Sudan, where it already owns the New taxes imposed by Sri Lanka’s government will result mobile market leader, which accounted for 11.87 million in stagnant revenue growth this year as well as lower wireless subscribers at the end of 2015. The deal remains profitability, Fitch Ratings forecasts. The regulatory risks subject to certain conditions, including the approval of have risen for telcos since the new government assumed Sudanese regulator the National Telecommunications office last year. It increased taxes on telecoms operators Corporation (NTC) and the country’s competition in an effort to shore up revenue. Effective from May, authorities. (May 3, 2016) telegeography.com the government imposed a VAT rate of 15 per cent and nation building tax of 2 per cent on telecoms services, which will increase the tax on voice and data services to Tunisia 50 per cent and 32 per cent, respectively, from 28 per P r e s i d e n t : P r o f . H i c h e m B e s b e s cent and 12 per cent. The government abandoned an [National Telecommunication Commission earlier tax proposal that could have diluted the industry’s (INTT)] EBITDA margin by an average of 6-7 percentage points. Fitch in mid-January revised the outlook on Sri Lanka’s Egyptian web development solutions provider IPL media telecoms sector to stable from negative following the has begun testing a public Wi-Fi network in Tunisia. CEO new budget. The agency expects market leader Dialog Hatem Zaghloul told that trials began on May 25 in the Axiata’s revenue to decline by low-single digits as voice city of El Ghazala in partnership with Tunisie Telecom, and data usage could weaken following the tax increases. Orange Tunisia and Ooredoo Tunisia. The test phase is Dialog’s operating EBITDA margin could narrow due to expected to last several weeks and to lead to the launch lower usage and decline in profitable international voice of a Wi-Fi service available to the public. The project was business. This would more than offset the improving hashed out at a March meeting between Zaghloul and margin on data segment revenue and savings from its Tunisia’s minister for development and communications, new Bay of Bengal undersea cable. when they agreed to run an experiment over 4 sq km to determine the effectiveness of this wireless technology Fitch, however, expects Dialog’s revenue to grow by and network architecture. (May 27, 2016) Daily News Egypt mid-single digits during 2017-19, driven mainly by higher data revenue and a gradual recovery in usage. Dialog’s mobile data revenue grew by 64 per cent last

page_64 REGULATORY & POLICY UPDATES

SAMENA TRENDS _ MAY 2016

indices of smart cities. The meeting was chaired by Turkey Ahmed Zeddam, Chairman of ITU-T Study Group 5. It A c t i n g C h a i r m a n : D r . O m e r F a t i h S a y a n [Information & Communication Technologies adopted new recommendations and amended others, Authority (BTK)] and discussed how to limit electronic wastes as well as the role of ITC in this regard. Also discussed and Turkcell, Turkey’s leading cellco by subscribers has approvedthe Key performance indices of smart and issued a statement announcing it has authorised its sustainable cities, human exposure to electromagnetic management to negotiate the acquisition of 100% of fields, the effects of electromagnetic fields on human the share capital of Isbank (Is Bankasi) subsidiary IsNet. safety, the protection of telecommunications devices IsNet was founded as an ISP in 1999, with the Isbank from disasters such as lightning strikes, and combat conglomerate providing 100% of the investment. counterfeiting. ITU-T Study Group 5 (SG5) is responsible The company added a Fixed Telephony Service (FTS) for studies on methodologies for evaluating ICT’s effects Operator license to its portfolio in 2004. on climate change and for publishing guidelines on (May 5, 2016) telegeography.com the eco-friendly use of ICT. As part of its environmental mandate, SG5 is also responsible for studying design methodologies for reducing the adverse environmental United Arab Emirates effects of ICTs through recycling of ICT facilities and Director General: Hamad Obaid Al equipment, for example. ITU-T SG5 has four main Mansoori objectives. The first is to protect telecommunications [Telecommunication Regulatory Authority equipment and installations against damage and (TRA)] malfunction due to electromagnetic disturbances, while The Telecommunications Regulatory Authority (TRA) the second is to ensure the safety of personnel and users and Smart Dubai Office have participated in the Study of networks against the current and voltages present in Group 5 meeting under the standardization sector of telecommunication networks. The third is to avoid health the International Telecommunication Union (ITU). The risks from electromagnetic fields (EMFs) produced by sessions were held in Kuala Lumpur, Malaysia, during telecommunication devices and installations, and the the 11th Symposium on ICT, Environment and Climate fourth is to guarantee good quality of service (QoS) for Change hosted by Malaysian Communications and high-speed data services by following the requirements Multimedia Commission. Attended by more than 300 for copper cable characteristics and the coexistence of participants, the symposium aimed to spread awareness services delivered by different providers. (May 14, 2016) wam.ae within the Environment and Climate Change sectors and identified ideal ways to address the challenges faced by these vital sectors. It encouraged stakeholders to adopt the latest solutions for harnessing smart, innovative and sustainable tools to serve humanity. Mohamad Ali Hanafiah Mohamad Yunus, Chief Officer for Content, Security and Innovation at the Malaysian Communications and Multimedia Commission, opened the symposium in the presence of Chaesub Lee, Director of ITU’s Telecommunication Standardization Bureau (TSB), and Dato’ Johari, Deputy Minister of the Malaysian Communications and Multimedia Commission. Four sessions were held, the first focusing on the role of policies and standards for managing electromagnetic fields and the second discussing how to protect telecommunication devices from disasters such as lightning strikes. The third session was headed by the TRA as represented by Eng. Nasser Al Marzouqi, the UAE’s Representative to the ITU in Geneva and Vice Chairman of Study Group 5, and focused on ITU activities geared towards development and sustainability goals. The fourth session discussed ways to achieve environmental sustainability and Noora Al Suwaidi, Head of Strategy and Performance Management at Smart Dubai Office, was a speaker in this session and she introduced the initiative of His Highness Sheikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, to transform Dubai into a ‘smart city.’ She shared Smart Dubai’s plans and goals as well. More than 150 entities from ITU member countries, academic organizations, sector members and related regional and global entities participated in the Study Group 5 meeting where more than 105 contributions were introduced. The UAE showcased a number of contributions related to the performance

page_65 REGULATORY & POLICY UPDATES

SAMENA TRENDS _ MAY 2016

REGULATORY ACTIVITIES BEYOND THE SAMENA REGION

Albania Angola The Postal and Electronic Minister of Telecoms Communications & IT Jose Carvalho da Authority (Autoritetit Te Rocha gave a speech on Komunikimeve Elektronike developments in the ICT Dhe Postare, AKEP) has awarded PLUS sector at a press conference held on the Communications a 2100MHz concession, premises of the State Administration’s paving the way for Albania’s smallest Strategic Corporate Information and wireless provider by subscribers Marketing Office (GRECIMA). As reported REGULATORY to introduce high speed mobile by Angolan news agency ANGOP, the broadband services. The concession minister clarified that the 2017 deadline UPDATES consists of 2×10MHz at 1970MHz- for placing in orbit the Angosat 1 1980MHz/2160MHz-2170MHz and 5MHz will not be of unpaired spectrum at 1915MHz- undermined by the current financial 1920MHz. PLUS paid EUR2.09 million difficulties facing the country, whilst (US$2.4 million) for the license. PLUS also highlighting that 20,000 kilometers has missed out on previous spectrum of fiber-optic cable is live in Angola, auctions for additional airwaves for connecting 18 provincial capitals. He 3G or 4G services but was given a also spoke of the need to review pricing reprieve in September 2015 when of telephony and internet access, stating AKEP made all spectrum allocations in that it is necessary to change the the 900MHz, 1800MHz and 2100MHz taxation method for communications bands technology neutral. In a related services in Angola ‘in order to allow the development AKEP has also granted a user to pay the real price for the use of 2600MHz license to Albtelecom, which these services’. Regarding cyber security, previously offered mobile services under the official said that the ICT sector is the Eagle Mobile banner. Albtelecom committed to ensuring ‘safer’ usage of purchased two blocks of 2×5MHz in the the internet in the country, but denied 2500MHz-2690MHz band for EUR1.04 claims that the government’s wants to million, and an additional two blocks of ‘control’ online social media. Elsewhere in 2×5MHz in the same range for EUR1.14 his speech, the ICT minister highlighted million. (April 26, 2016) telegeography.com

page_66 REGULATORY & POLICY UPDATES

SAMENA TRENDS _ MAY 2016 the fact that state-owned fixed line incumbent Angola and Media Authority (ACMA) back in 2013. If accepted, Telecom (AT) is undergoing transformation to turn it into VHA’s proposal would see the ACMA either charge the a ‘major contributor to the state budget.’ Pedro Durao telco an upfront fee of AUD571.81 million (US$420.03 Leitao, a former director of Portugal Telecom, has been million), or allow it to pay via three installments over appointed by the Angolan government to coordinate the period 2018-2020. The latter option would see VHA the interim committee managing the restructuring pay AUD274.5 million on January 31, 2018, AUD159.9 of AT. According to a document from the Ministry of million on January 31, 2019 and AUD159.9 million on Telecoms & IT obtained by Portuguese newspaper Lusa, January 31, 2020, for a total of AUD594.3 million. The an interim management committee has been set up for cellco’s chief strategy officer Dan Lloyd told ZDNet: the operations of the company, while the management ‘For several years, 15MHz of 700MHz spectrum has contract and program are being negotiated. The report been lying unutilized. Vodafone recently put forward a continues that the Angolan government is aiming proposal to acquire some of this spectrum. Our proposal to hand over the management of the telco whilst is a win-win for competition and for government, as selling assets as part of its transformation. The new we have offered to pay the same effective price for the management will be tasked with: stemming market share spectrum as the price paid in the 2013 auction. The loss, increasing revenue and diversifying services among Australian government would be fairly compensated other objectives. The restructuring process provides for for the spectrum at the market price, while customers the capitalization of AT through the sale of its assets and in regional and rural areas would benefit from increased the transformation of satellite communications provider competition, as it would allow us to extend coverage Infrasat. In another aspect of its restructuring, AT is into these areas. Telstra purchased 2×20MHz blocks among the three operators lined up for authorization of 700MHz spectrum in the 2013 auction, and Optus to provide mobile services alongside existing cellcos acquired 2×10MHz. The remaining 2×15MHz of ‘digital Unitel and Movicel under a new unified (convergent) dividend’ spectrum remained unsold, after VHA opted licensing regime. Telecompaper adds that whilst Unitel not to participate in the process. (May 10, 2016) telegeography.com and Movicel will receive unified telecom services licenses alongside the newcomers; there are also plans for setting up regional operators as part of the new Bahamas licensing process. Regarding the entry of other new The Utilities Regulation and Competition players to the Angolan market, such possibilities ‘remain Authority (URCA) has rejected arguments open’, with the exceptions of mobile telephony and pay- from Cable Bahamas (CBL) that changes TV services, according to the technical manager of the in the ownership structure of fixed line incumbent Angolan Institute of Communications (INACOM), Leonel Bahamas Telecommunications Company (BTC) will have Augusto, quoted by Jornal de Angola. an impact on competition. CBL had complained that Liberty Global’s acquisition of a majority stake in BTC (May 20, 2016) Telecompaper via its takeover of Cable and Wireless Communications (CWC) would negatively impact competition, as BTC Armenia would be able to use its new parent’s scale to negotiate The national telecoms regulator, Public exclusive rights to premium pay-TV content. CBL claimed Services Regulatory Commission (PSRC), that the takeover would: ‘impede, if not preclude robust has passed a decision compelling all competition in the television and broadband markets domestic fixed line operators ‘to publish in the Bahamas by effectively blocking Cable Bahamas information on coverage and availability of fixed and other licensed operators… from accessing popular networks, as well as connectivity technologies and the content and audio visual programming. The cableco range of services provided to residences of settlements’. also expressed concerns over its access to international The PSRC’s Gevorg Gevorgyan is cited as saying that capacity, as the transaction would see Liberty acquire the watchdog hopes the move will lead to a marked the ARCOS cable system – on which CBL is reliant for improvement in overall levels of service quality for end the bulk of its traffic between the Bahamas and the US users. Fixed line operators – which include the likes of – which was taken over by CWC via its acquisition of ArmenTel (Beeline), UCOM (including iCON), GNC-ALFA Columbus Communications in early 2015. CBL claimed () and Karabakh Telecom (K-Telecom) – have that Liberty’s acquisition of CWC would strengthen been given three months to comply with the edict. ties between BTC and Columbus, giving the former ‘an The PSRC’s decision mirrors an earlier one imposed even stronger motivation to use the ARCOS-1 cable to on mobile operators, which now provide information impede effective competition from Cable Bahamas and on network availability and all possible options for other licensed operators in the Bahamas.’ URCA rejected connection to the mobile network, the watchdog said. both of CBL’s arguments and dismissed the operator’s (May 5, 2016) Arka News agency concerns regarding the pay-TV market as ‘highly speculative’. The watchdog also pointed out that CBL is currently the dominant provider in the segment, and had Australia itself made use of exclusive content and programming Vodafone Hutchison Australia (VHA) rights. Regarding international capacity, URCA rejected has requested permission from the CBL’s claims, noting that it had already dismissed such government to acquire 2×10MHz blocks concerns when it had greenlit CWC’s purchase of of 700MHz spectrum that went unsold Columbus. (May 5, 2016) Tribune242 in an auction held by the Australian Communications

page_67 REGULATORY & POLICY UPDATES

SAMENA TRENDS _ MAY 2016

Belarus previously indicated a target of launching the service by the end of this year. (April 26, 2016) telegeography.com Belarus’ Communications and Information Technology Minister Sergei Popkov said that the government has no plans Brazil to auction off its stake in the country’s The board of the National largest mobile network operator by subscribers, MTS Telecommunications Agency (ANATEL) has Belarus, this year. The Minister confirmed: ‘Currently approved additions to the long-standing there are no such plans. I would like to note that today wireless network sharing agreement that there are no such examples on the telecommunications exists between Brasil and Telefonica Brasil (Vivo). market. It is not the best time to sell.’ MTS Belarus is According to local press reports, the pact – which a joint limited liability company controlled by state- encompasses sharing of equipment in the 2.5GHz band owned Intercity Communications (51%) and Mobile – will see the joint deployment of 180 new base stations TeleSystems (MTS) of Russia (49%). The government has in rural areas, taking the total number of shared cell sites tried repeatedly to offload its majority shareholding, to 412. The original deal was signed back in May 2013, with the high asking price proving to be a persistent after the Brazilian cellcos acquired LTE-suitable 2.5GHz stumbling block. The government has not hidden its frequencies in June 2012’s spectrum auction. desire to sell off its 51% shareholding in MTS Belarus, (May 27, 2016) telegeography.com despite numerous previous failures to do so. The latest attempt took place in February 2014 but the tender received no bids despite it reducing the price of its Bulgaria controlling stake from US$1 billion to US$863 million, The telecoms regulator the following a series of unsuccessful attempts to sell the Communications Regulation Commission stake at the higher price. In February 2015, however, the (CRC) has awarded 2×5MHz of additional government dusted off the plan once again with the then spectrum in the 1800MHz band to first deputy chairman of the state property committee of domestic cellco Telenor, thus increasing its total holding Belarus, Alexei Vasilyev, quoted as saying: ‘The value of in the band to 2×15MHz. Telenor disclosed that it had shares in MTS … remains the same in comparison with paid the respective license fees of over BGN7.0 million the previous attempt’. (May 13, 2016) BelTA (US$4.1 million) and will commence utilizing the new spectrum in the coming days. The additional frequencies will be used for further improving the quality of the Belize company’s 4G LTE services by allowing Telenor to The Belize Public Utilities Commission increase the maximum theoretical data speed in its 4G (PUC) has announced that the country’s network to 100Mbps. Telenor launched its 4G network in first internet exchange point (IXP), the December 2015 and currently offers LTE services to 75% BIXP, was successfully launched in Belize of the population. (May 5, 2016) telegeography.com City on April 27 at the campus of the University of Belize. The PUC facilitated the process, with support from regional and international agencies, including Chile Packet Clearing House (PCH) and the Caribbean Chile’s government has given approval Network Operators Group (CaribNOG). Bevil Wooding, to the country’s three largest mobile internet strategist at PCH, commented: ‘The new IXP is operators to start using the spectrum they expected to help improve internet service[s] in Belize by won in the 700MHz band, a process that eliminating dependence on international connectivity has been held up by a legal dispute. , Movistar and for local internet traffic exchange. The new facility, the Claro picked up 30MHz, 20MHz and 20MHz, respectively, twelfth IXP to be activated in the Caribbean, will lower in an auction in February 2014, with the remaining 20MHz the average per-bit delivery cost for local ISPs and reserved for emergency services. However, through a significantly reduce the round-trip time for internet series of injunctions, consumer rights group Conadecus traffic between local ISP networks. As a result, users can successfully blocked the handover of the licenses until expect a more reliable, more resilient local internet.’ ISPs midway through last year when the companies were participating in the BIXP project include, Alliance IP, Belize allowed to start rolling out infrastructure. Conadecus Telemedia, BroadBand Belize, Centaur Communications has continued to appeal regardless. Speaking during Corporation, NetKing, Network Solutions and SpeedNet. the Telecommunications Day event celebrated on May (May 4, 2016) telegeography.com 17 in Santiago, transport and telecommunications minister Andrés Gomez-Lobo (pictured) said that two of the three operators had already turned on their Bolivia 700MHz networks, almost a year ahead of the deadline The telecoms watchdog, the Autoridad de included in the concessions licenses of March 2017. Telecomunicaciones y Transportes (ATT), Entel executives told press last month that the company says it has received four applications to run was just waiting for the go-ahead to “throw the switch,” the country’s mobile number portability while Telefónica’s Chilean unit Movistar said in February (MNP) system. Proposals have been submitted by it would launch LTE services on the 700MHz band and Systor International, Comtec, Ictec-Mediafon Datapro introduce 4.5G carrier aggregation technology starting and Porting Access. The regulator has still to give a in the second half of this year. firm date for when it expects MNP to be implemented for the country’s 10.7 million mobile users, although it

page_68 REGULATORY & POLICY UPDATES

SAMENA TRENDS _ MAY 2016

CONTRACT OBLIGATIONS Mobile, China Telecom and China Unicom currently Under their contracts, the companies are obliged to dominate the local Chinese market. China Mobile is also provide service to 1,281 localities nationwide and the largest mobile operator in the world, reporting a total coverage on 13 highways stretching 850km. According mobile customer base of 833.85 million at the end of to telecoms regulator Subtel, with the start of service, March. China Telecom reported an overall customer base 43% of that coverage is being met. Contract obligations of 202.64 million mobile users at the end of March this also require the telcos to provide coverage to 503 year. China Unicom has struggled to maintain customer municipal and subsidized schools for free for the first growth, but previously said it expected to add 6.61 two years and to provide roaming services to other million mobile customers in Q1, reversing the quarterly network operators and MVNOs on the band. Subtel subscriber losses it posted last year. The telco returned head Pedro Huichalaf said that some US$700mn to monthly mobile customer base growth in January and had been invested in the 700MHz band, of which by the end of February had 257.8 million subscribers. US$300mn went into infrastructure and US$400mn for Analysts do not see CBN having a major impact on the the purchase of equipment and design of commercial business of its three rivals, at least in the near term. “We plans. According to a study by IDC released this month, do not think CBN will become a major threat to existing Chile saw 50% growth in 4G subscriptions at the end telecom operators in the near term, unless CBN can of 2015 versus end-3Q15 thanks to falling prices and resolve its own financial bottlenecks and complete the the continuing trend towards the use of smartphones. process of national television and broadcasting network Internet penetration reached 72% of homes at the end consolidation,” Nomura analyst Leping Huang wrote in of 2015, with the rate reaching 74% in urban areas and a research note, Reuters reported. Reuters added that 56% in rural areas, according to a Subtel survey. Huang expects the company to spend CNY20 billion (€2.7 billion) in telecoms this year, which is equivalent to 5% of China’s total spending in the sector.

INJUNCTION (May 7, 2016) totaltele.com Through legal action, Conadecus alleged that the three winners of the 700MHz band should not have been able to participate in the auction as they all surpassed the Cote d’Ivoire 60MHz spectrum limit imposed by the supreme court in The government of Cote d’Ivoire and 2009 for the award of the AWS band, and that awarding the management team of Orange Group the 700Hz band to them only accentuates their market have reportedly signed a memorandum dominance. Whether that spectrum limit should have of understanding (MoU) relating to the applied to the 700MHz band is unclear and Subtel has long-planned merger of fixed line operator CI-Telecom publically said that the spectrum cap was intended to and mobile unit Orange Cote d’Ivoire. The former is apply specifically to the 2009 auction for the AWS band. 48.5%-owned by the government and 51.0%-owned (May 19, 2016) bnamericas.com by Orange Group, with the remaining minor stake held by current and former employees, while the cellco is 85%-owned by Orange Group, with the remainder held Telecoms group Entel has unveiled plans to invest by SIFCOM. The agreement was signed on April 28 by US$3.5 billion by the end of 2020, said CEO Juan Bruno Mettling, CEO of Orange Middle East and Africa Hurtado. According to the official, more than half of the (OMEA), Abdourahmane Cisse, the Ivorian Minister of investment will be used to modernize and expand the Budget, Minister of Economy Adama Kone, and Minister operator’s infrastructure in Chile, whilst around 30% of of Digital Economy Bruno Kone. Discussions with the the funds will be used to develop the infrastructure of state are expected to be concluded by the end of the its Peruvian division, as well as potentially acquiring new year, with the merger expected to be formalized by June licenses. ‘This five-year investment plan is ambitious 2017. Speaking to the local media afterwards, Mr. Kone and will be sustained by our own resources … national suggested that the government will ultimately hold a and foreign funding and a capital increase,’ Mr. Hurtado 31% stake in the new entity, compared to Orange’s 69% explained. Entel’s shareholders are due to vote shortly shareholding. (May 3, 2016) Jeune Afrique on a capital increase of USD540 million. (May 3, 2016) La Tercera Cyprus China Cyprus Telecommunications Authority China Broadcasting Network (CBN) (CYTA) has denied reports that it is became the country’s fourth telecoms looking to sell off its Greek division CYTA operator after winning a license from the Hellas. A press release stated: ‘CYTA government this week. The Ministry of Hellas adds strength to the overall value of CYTA group Industry and Information Technology (MIIT) said on its and is an investment with strategic features in the Greek web site that it had awarded a basic telecoms service telecommunications market.’ It went on to add that license to the state-owned broadcaster to promote what ‘there is no suggestion of interest in CYTA Hellas and China.org described as the “three-network convergence” no procedure [has been] carried out’. The group says - a state-advocated project aimed at merging telecom, it is already working on a new five-year business plan television and Internet services into a single network. for CYTA Hellas and is preparing to launch a number MIIT revealed few other details, commenting only that of new services, though it did not give further details. CBN is authorized to provide domestic Internet data Last month, rumors had circulated saying that CYTA was transmission and telecoms infrastructure services. China

page_69 REGULATORY & POLICY UPDATES

SAMENA TRENDS _ MAY 2016 looking to offload its Greek unit, with Athens-based fixed is also aimed at promoting 4G take-up, and is expected and mobile operator Wind Hellas linked as a potential to make it easier to roll out 5G (from around 2020). buyer. Online news portal In-Cyprus reported that the The general approach as stated will be the Council’s management of state-owned CYTA was keen to sell the position for negotiations with the European Parliament. Greek broadband provider and MVNO, which has been The Parliament has not adopted its position yet. Both dragging down the parent company’s financial results. institutions must agree on the text before it can become (May 19, 2016) telegeography.com law. Major European markets have already moved ahead with 700MHz mobile broadband auctions: Germany sold off 700MHz licenses in May 2015, whilst France Dominican Republic followed suit in November that year (from 6 April 2016 An official at the Dominican Republic’s French cellcos were authorized to provide services in telecoms regulator INDOTEL says the 700MHz band in a total of 2,374 towns). Sweden internet users in the country will be has scheduled its 700MHz auction for late-2016, whilst able to benefit from cheaper and faster UK regulator OFCOM has laid out proposals to make broadband services within the next two years, once spectrum in the 700MHz band available for mobile fiber-optic infrastructure is extended nationwide. the broadband ‘as soon as practicably possible’ and watchdog’s Executive Director Alberty Canela said that echoed the EU’s 2020 deadline for service availability. the government is working on the deployment of a (May 27, 2016) telegeography.com fiber backbone network, and has already completed a 219km section linking Santo Domingo, Santiago and Puerto Plata. In January 2014 INDOTEL unveiled details The European Union’s 28 member states are at very of its ‘National Fiber Optic Network’ project, which was different stages in the development of their digital included in the government’s 2014-2015 Biennial Plan. economies, according to an EC report, which includes The US$60 million network rollout is thought to be co- a league table of how countries are faring with mobile funded by the World Bank. (May 19, 2016) Dominican Today broadband. Nordic countries were described as “among the most advanced in the world,” whilst others “still have a lot of catching up to do”, the European Commission (EC) European Union report observed. When it comes to mobile broadband, The Council of the European Union (EU) which includes the availability of radio spectrum and adopted its official position on a draft the take-up of services, Finland, Sweden and Denmark decision to make the 694MHz-790MHz took top spot with Estonia, while the lowest scores (700MHz) frequency band available across were registered by Hungary, Greece and Portugal. The Europe by mid-2020 to boost mobile broadband service European Digital Progress Report also found that total coverage, whilst prioritizing the 470MHz-694MHz band telecom services revenues declined by 10 per cent in for broadcasting until at least 2030. In a press release Europe since 2012 and operators in Europe generated Henk Kamp, the Dutch Minister for Economic Affairs, less revenue than their US counterparts. Revenues went was quoted as saying: ‘With the opening of the 700MHz down from €237 billion in 2012 to a forecasted €213 band for mobile broadband an important step towards billion in 2016 (based on figures of 26 member states, the availability of broadband for everybody in the EU which covered about 98 per cent of the total EU market). has been taken. Fast internet is not only important for The US also reduced its figures from €252 billion to economic development in the EU, but also for the daily €240 billion, but surpassed Europe despite its smaller life of its citizens.’ According to the Council position, population, the report noted. Meanwhile, revenue from all 28 EU countries must reassign the 700MHz band to mobile voice and fixed voice revenues unsurprisingly wireless broadband services under harmonized technical decreased by over 25 per cent since 2012 but mobile conditions by 30 June 2020. If they are unable to do this data grew by 10 per cent, and will represent over a they may decide, for duly justified reasons, to delay the quarter (26 per cent) of total telecom revenues this year. availability of the band by up to two years. Reasons Fixed and mobile voice services made up 57 per cent of for such a delay could include for instance unresolved total telecom revenues in 2012, but will only represent harmful interferences or cross-border coordination 47 per cent in 2016. By contrast, the growth in mobile issues. Member states must adopt a ‘national roadmap’ data services is hailed as “remarkable”. “The growth in by 30 June 2018, setting out how they will implement mobile data services could not, however, compensate the decision. These roadmaps will be public. The Council for the major decline in voice,” the report said. Mobile position stipulates that member states must ensure the broadband represented a “fast growing segment” of the availability of the 470MHz-694MHz band for digital TV broadband market. More than 60 per cent of all active and wireless microphones at least until 2030, based on mobile SIM cards use mobile broadband and there are national needs, to give the audiovisual sector long-term 75 active mobile broadband SIM cards per 100 people regulatory predictability as regards the availability of in the EU, up from 34 four years ago. The growth was sufficient spectrum. Member states would be allowed linear over the last three years with over 40 million new to use this range for other purposes, including mobile subscriptions added every year, the report said. The internet services, under certain conditions. The 470MHz- Nordic countries and Estonia again lead the way, where 790MHz range is currently widely used for digital TV there are already more than 100 subscriptions per 100 and wireless microphones (e.g. in theatres, concerts and people, while in Hungary, Greece, Portugal and Slovenia sporting events), but the high speeds and penetration the take-up rate is still below 50 per cent. However, provided by the 700MHz band make it ideal for mobile mobile broadband is still mainly complementary to internet services. The coordinated use of the frequency fixed broadband: In 2015, just 8.1 per cent of EU homes

page_70 REGULATORY & POLICY UPDATES

SAMENA TRENDS _ MAY 2016 accessed the internet only through mobile technologies. morning, the EC said the takeover would have removed Finland and Italy were leaders in mobile access to an “important competitor” in the UK, leaving only internet with 31 per cent and 22 per cent of homes using Vodafone and EE, recently acquired by BT, to challenge it in 2015, respectively. Most of the mobile broadband the merged entity. In addition, the tie-up would “likely subscriptions are used on Smartphones rather than on have resulted in higher prices” for mobile services in tablets or notebooks but tablets are expected to be the the UK, while lessening choices for the consumer, and “touchstone for mobile data traffic” in 2020, exceeding the Commission continued there would have also likely Smartphones and laptops in average usage. Mobile data been a negative impact on quality of service for UK traffic in 2020 is expected to be six times higher than in consumers, and “hampering the development of mobile 2015. BT’s acquisition of EE in the UK and Liberty Global’s network infrastructure in the UK”. EC commissioner acquisition of Base in Belgium suggests that owning a Margrethe Vestager, who has a growing reputation for mobile network is an advantage for a fixed operator, taking a hard line on mergers that reduce competition, which is worth investing in even if the operator is already said the proposed deal “would have been bad for UK present in mobile as a virtual operator, the report said. consumers and bad for the UK mobile sector”. “The goal Operators continued to show significant interest in M&A of EU merger control is to ensure that tie-ups do not in Europe but truly cross-border mergers “still seem to weaken competition at the expense of consumers and be elusive,” the report observed. In 2015 the main trend businesses…. We had strong concerns that consumers was still in-market consolidation or diversification in the would have had less choice in finding a mobile package same market. 4G mobile broadband availability reached that suits their needs and paid more than without the 86 per cent, up from 27 per cent in 2012. 4G has been deal.” The deal would have also “reduced the number commercially launched in all states but coverage is still of mobile operators effectively willing to host virtual “substantially below” that of 3G. As of October 2015, 80 operators”, added the statement, leaving existing mobile per cent of operators offered 4G services on LTE networks. virtual operators in a weaker position to negotiate LTE is most widely developed in the Netherlands, Sweden position to obtain favorable wholesale access terms. In and Denmark, while commercial 4G services were response, Hutchison said it was “deeply disappointed” launched only last year in Bulgaria. LTE deployment has by the decision to the deal, which was struck more focused so far mainly in urban areas, as only 36 per cent than a year ago, adding that it will study the verdict in of rural homes are covered. The report used a digital detail, “and will be considering our options, including economy and society index (DESI) to measure success, the possibility of a legal challenge”. “We strongly believe which summarizes relevant indicators on Europe’s digital the merger would have brought major benefits to the performance and tracks the progress of member states UK,” it added. The company said it will now focus on in digital competitiveness. The index also looks at skills, working with the commission on gaining clearance for use of internet, integration of technology and digital its proposed merger of Wind and 3 Italy. In the end, EC public services, in addition to connectivity. Denmark, the said Hutchison’s proposed remedies “did not resolve Netherlands, Sweden and Finland were found to have the structural problems created by the disruption to the the most advanced digital economies in the EU followed current network sharing agreements in the UK”, and were by Belgium, the UK and Estonia. Romania, Bulgaria, not sufficient to replace weakened competition in both Greece and Italy have the least advanced economies. the retail and wholesale mobile markets. Hutchison had “The aim of this report is to achieve a real digital union said it would give access to a share of the merged entity’s by monitoring the implementation of digital reforms network capacity to one or two mobile virtual operators, in member states to grasp the opportunities available it would divest O2’s existing stake in the to citizens and businesses of the digital single market,” joint venture, as well a strike a wholesale agreement to the EC said. Last month, Andrus Ansip, vice president share network capacity with . For Telefonica, for the digital single market, said: “We need the right it leaves the company potentially searching for another scale for technologies such as cloud computing, data- buyer for its UK unit, and it may not have to look very far, driven science and the internet of things to reach their with acquisitive cable group Liberty Global revealing this full potential.” (May 24, 2016) mobileworldlive.com week it would consider a move for the unit. Speaking on an investor call, Liberty CEO Mike Fries said “it would be strange if we didn’t evaluate that option”, when asked The European Commission (EC) officially blocked CK if the company would bid for O2 UK, should the deal Hutchison’s proposed £10.5 billion acquisition of O2 with Hutchison meet its expected end. “We look at all UK, citing “strong concerns” over the deal’s impact to options in the marketplace,” he added. The company UK customers, and a potential harm to “innovation in currently provides mobile services in the UK through the mobile sector”. The decision follows an in-depth Virgin Media, with it renting capacity on EE’s network, as investigation of the deal by the EC, which would have part of a contract until 2018. EE, of course, is now owned seen a tie-up of Telefonica’s O2 and Hutchison’s Three by BT, which rivals Virgin Media in the internet and TV operations, creating a new market leader in the country. space. (May 11, 2016) mobileworldlive.com Antitrust regulators were widely expected to block the deal, so the news hardly comes as a surprise, despite a number of proposed concessions offered from CK France Hutchison, “which failed to adequately address the Telecom Regulator ARCEP has announced serious concerns raised by the takeover,” said the EC. that a total of 25 operators have submitted Some of the operator’s most high profile executives bids for 4G licenses in the French overseas have also been lobbying in recent months to push the territories of Guadeloupe, Martinique, deal through, but to no avail. In a statement released this French Guiana, Saint-Martin, Saint Barthelemy, Reunion

page_71 REGULATORY & POLICY UPDATES

SAMENA TRENDS _ MAY 2016 and Mayotte. The applicants were revealed as follows: adopt policies designed to promote rapid mobile network • Guadeloupe and Martinique: Dauphin Telecom, coverage expansion and service uptake, including an Antilles-Francaise Guyane, Free Mobile efficient allocation of spectrum. “Digital policy in Asia (Iliad Group), NomoTech, Orange Caraibe (Orange plays a crucial role in regional development, both in terms Group) and SFR Caraibe (Altice Group) of helping define and promote forward-looking national digitization agendas, and in supporting a harmonized, • French Guiana: Dauphin Telecom, Digicel, Free cross-border approach to regional issues,” GSMA head Mobile, NomoTech, Orange Caraibe and SFR of Asia Alasdair Grant said. “With this report, we will be Caraibe able to work even more closely with our members and • Saint-Martin and Saint-Barthelemy: Dauphin regulatory partners to develop and implement policies Telecom, Digicel, Free Mobile, Orange Caraibe and that support national development objectives.” The new UTS Caraibes report focuses on the digital society initiatives underway • Reunion: Orange, SFR Reunion (Altice Group), in seven Asian countries - Australia, Bangladesh, Telco OI (Iliad Group and Hiridjee Group) and Zeop Indonesia, Japan, Pakistan, Singapore, and Thailand. Mobile As part of this analysis, each market is assessed on its • Mayotte: BJT Partners, Orange, SFR Mayotte (Altice levels of connectivity, digital citizenship, digital lifestyle Group) and Telco OI (Iliad Group and Hiridjee) and digital commerce. These markets are grouped into three categories reflecting the diverse nature of The regulator disclosed that it will now study the the region: Emerging digital societies (represented applications, with the available spectrum – in the 800MHz in the report by Bangladesh and Pakistan) - In these and 2600MHz bands (yet unallocated overseas), along markets, digitization is primarily a tool for accelerating with additional frequencies in the 900MHz, 1800MHz socioeconomic development and social inclusion. The and 2100MHz bands – scheduled to be awarded in the priority is the provision of essential services in areas autumn of 2016. ARCEP will issue four 4G concessions in such as healthcare, education and financial services. each of the territories. (May 12, 2016) telegeography.com Transition digital societies (represented by Thailand and Indonesia) - Digitalization in this category is Germany focused on the personalization of services that facilitate The European Commission (EC) has engagement between individuals and institutions. There opened an in-depth investigation into the is also a need for digital services to tackle the social, Federal Network Agency’s (FNA’s) plan infrastructural and environmental issues that arise as a to allow Telekom Deutschland (TD) to result of rapid urbanization. Advanced digital societies upgrade its network with vectoring technology in areas (represented by Australia, Japan, and Singapore) - close to its exchanges, which was approved last month. Having already achieved ubiquitous network access and The EC says it has concerns about the potential impact capacity, markets in this category are currently focused of the proposal on the development of competition on developing interconnected and interoperable digital and on longer term incentives for investment in future- technologies between sectors. These markets are oriented networks. While recognizing that the FNA’s also assuming a regional leadership role in defining proposal would lead to broadband speed gains in parts standards and best practice in key areas such as the IoT. of Germany (of the six million households affected, (May 4, 2016) telecomasia.net roughly 1.4 million would receive download rates or above 50Mbps for the first time), the EC believes that Guatemala the alternative access solutions for rivals offered by Guatemala could see its long-awaited the German watchdog are not yet sufficient to ensure multi-band spectrum auction take place an appropriate safeguarding of competition. The before the end of 2016 said Acisclo investigation will assess whether solutions can be found Valladares, the Presidential Commissioner which are better suited to protect competition and future for Competitiveness. The distribution of spectrum in the investment, while still allowing for speed-enhancing 2100MHz/1700MHz AWS range, as well as frequencies network upgrades. The EC has three months to discuss in the 700MHz ‘digital dividend’ band has been delayed the case with the FNA, in order to remove any elements by regulatory red-tape in recent years, but the abrupt giving rise to serious doubts as to compliance with EU departure of Eddy Padilla, head of the Superintendencia law. The Commission may, at the end of the investigation de Telecomunicaciones (SIT), last week is likely to give period, either lift its reservations or issue an Article 7a the government fresh impetus. He was replaced by Raul Recommendation, which will require the FNA to amend Solares. Discussing the situation, Mr. Valladares told El or withdraw its draft measure. (May 11, 2016) telegeography.com Periodico: ‘The worst thing for the state is to have assets such as AWS frequencies unused.’ (April 26, 2016) El Periodico GSMA Across the APAC region, mobile has Guyana emerged as the primary connectivity Digicel Guyana is considering becoming type for the majority of citizens accessing a full service provider when the nation’s digital services. A new report by the GSMA telecoms markets are fully liberalized, underscores the role mobile connectivity is playing in and has unveiled plans to introduce building digital societies across the region and urges fixed broadband and telephony services. The cellco’s policymakers to support the development of digital CEO, Kevin Kelly said: ‘With liberalization, we will ecosystems. The report encourages governments to

page_72 REGULATORY & POLICY UPDATES

SAMENA TRENDS _ MAY 2016 have cheaper international calling, we’ll have cheaper its monopoly rights, it seems unlikely that the operator internet to home, we’ll possibly look at landline, we would approve measures that would end its exclusivity. will bring in a submarine fiber cable. We’ll basically Indeed, it was threats of legal action from GTT’s parent become a total telecommunication company.’ Fixed line company over the termination of its monopoly rights incumbent Guyana Telephone and Telegraph Company that led the government to increase the involvement (GTT) currently holds a monopoly on the provision of of GTT and Digicel in the drafting of the bill. The fixed voice services and international voice and data Telecommunications Bill has been in development since transmission, but this is expected to change in the 2011 but has been derailed by several legal challenges, near future with the passing of long-awaited reforms. whilst changes of government and political turmoil have GTT has expressed concerns over potential imbalances pushed the reforms back further still. The prolonged in competition that may accompany Digicel’s entry to delays in implementing the much-needed reforms has the fixed market, however, warning that if Digicel was halted Guyanese regulators from issuing new licenses, not required to provide services in low revenue areas, meaning that the country is one of the fewer than it would push to be released from its commitments to ten nations that still do not have access to 3G or 4G serve ‘revenue unattractive areas.’ GTT’s chief commercial technologies. Others on that list include Tuvalu, Eritrea, officer commented: ‘For GTT it’s very important to have Palestinian Territory, Cuba (a 3G platform is available, a level playing field…because it cannot be the case that but only to roaming visitors), St Pierre & Miquelon and we have to provide landlines, for example, in Essequibo Wallis & Fortuna. (April 29, 2016) Demerara Waves or somewhere in the interior where[as] the competitor can piggyback on the higher growth income [area] here in Georgetown and do the easy stuff first.’ Hungary Two applicants have been qualified (May 18, 2016) Demerara Waves by Hungary’s National Media & Infocommunications Authority (NMHH) Guyana has taken a step closer to introducing high speed in the auction process for 3400MHz- mobile broadband services, following announcements 3800MHz wireless broadband frequencies, namely cellco that the government is in the process of allocating and pay-TV/broadband operator licenses for ‘4G’ services ahead of the approval of the DIGI Telecommunications, the regulator announced on long-awaited Telecommunications Bill. Justin Nedd, its website. The authority added that it will undertake the CEO of Guyana Telephone and Telegraph (GTT) ‘substantive examination’ of the bids before announcing said that the company has received approval from the the results ‘in a few weeks’. Winners will be entitled to government for its 4G offering. A Digicel spokesperson, use the frequencies until 2034. The NMHH points out meanwhile, confirmed that it is ready to switch on its that in addition to mobile broadband access services, network and is expecting to receive its authorization the 3400MHz-3800MHz spectrum also supports wireless shortly. The concessions reportedly include conditions backhaul and high speed fixed-wireless access, while pending the approval and implementation of the new the auction is particularly aimed at meeting broadband Telecommunications Bill. The government is rushing to demand in underserved areas and boosting available allow operators to introduce 3G and 4G services in time capacity in urban areas of intensive usage. DIGI, owned for the 50th anniversary of the nation’s independence, by Romanian cable group RCS&RDS, currently offers when thousands of Guyanese expats are expected to triple-play TV, internet and fixed telephony over its own return home for the celebrations. However, the process HFC network, alongside mobile internet resale over the of allocating licenses has been held up for the last five Telenor Hungary network, but it is in the process of years by delays in introducing the new Bill, leaving entering the facilities-based 4G mobile operating sector Guyana as one of the fewer than ten countries in the via an 1800MHz LTE license won in September 2014. world without 3G or 4G services. (May 3, 2016) Demerara Waves (May 17, 2016) telegeography.com

Guyana’s long-delayed Telecommunications Bill is due India to be presented to the National Assembly by the end State-owned telco Bharat Sanchar Nigam of May this year, following months of consultations with Ltd (BSNL) is open to allocating spectrum mobile operators Guyana Telephone and Telegraph in the 2500MHz band to Google for its (GTT) and Digicel Guyana. The full contents of the current Project Loon, which plans to use helium iteration of the bill have not been made public, although balloons fitted with transmitters to provide connectivity the government has confirmed that it will address the in rural areas. The Economic Times writes that the expansion of mobile coverage into rural areas. Previous American internet giant is close to getting approval versions of the bill have also looked to strengthen for conducting a brief trial of the technology in either the powers of sector regulator the Public Utilities Andhra Pradesh or Maharashtra, after its previous Commission (PUC), open the telecommunications proposal was rejected last year. Google had proposed markets to new players and end GTT’s monopoly a pilot of the scheme, but the plan was opposed by on fixed telephony and international voice and data several ministries – including those covering civil transmission. Earlier this year, however, Minister of Public aviation, telecommunications and defense – with one of Telecommunications Catherine Hughes explained that the major sticking points being its request for spectrum the government was ensuring that industry stakeholders in the 700MHz band. The current plan is expected are satisfied with the legislation before it is presented to last just four days, and will be coordinated by the to parliament. Given GTT’s history of fiercely defending Department of Electronics and IT (DeitY). Circumventing

page_73 REGULATORY & POLICY UPDATES

SAMENA TRENDS _ MAY 2016 the issue of using the as-yet unallocated 700MHz band, which is later than the industry was expecting at the BSNL has said that it is willing to make spectrum in the start of the year, when a May-June auction seemed 2500MHz band available to Google for experimental likely. However, it is in line with recent reports on the use, and has a transparent pricing regime ready. ‘We can subject; last month, the Economic Times reported that easily spare 10MHz for LTE-based 4G services over the 2.1-GHz spectrum held by the Ministry of Defense could 2500MHz band,’ BSNL Chairman and Director Anupam be put up for auction in July if it can be freed up in time, Shrivastava was quoted as saying, adding: ‘We have had for example. According to the newspaper, the Indian some initial discussions with Google. Selection of state is government could expect to raise 5.6 trillion rupees (€74 in the process currently [and] is expected to be finalized billion) from the sale of spectrum in the 700 MHz, 800 soon.’ (May 25, 2016) telegeography.com MHz, 900 MHz, 1,800 MHz, 2.1 GHz, 2.3 GHz and 2.5 GHz bands. (May 5, 2016) totaltele.com Indian cellco Bharti Airtel has completed its acquisition of spectrum in the 1800MHz band in six circles from The Telecom Regulatory Authority of India (TRAI) has Videocon Telecommunications Ltd (VTL). Airtel, India’s told the Supreme Court that it would reconsider rules largest mobile provider by subscribers, paid INR44.28 imposed last year which require operators to provide billion (USD653.42 million) for 2×5MHz blocks in Bihar, financial compensation to customers for dropped calls, Gujarat, Haryana, Madhya Pradesh, Uttar Pradesh East on the condition that cellcos instead offer customers and Uttar Pradesh West. The pair agreed the transaction an equal number of free calls as an alternative means in March this year, and confirmed that all necessary of compensation. The Economic Times cites Attorney approvals had been received and all conditions had been General Mukul Rohatgi as saying that Telenor already met by 24 May. Previously, in November 2015 VTL had has such a policy in place, albeit with the caveat that agreed to sell its airwaves in two of the circles (Gujarat the free calls can only be used for on-net calls. ‘If the and Uttar Pradesh West) to Idea Cellular for INR33.1 telcos agree that there will be no provisos of any kind billion, but the deal fell through in March 2016. and they are ready to give free calls for every call drop

(May 25, 2016) telegeography.com to the consumers, then we are open to looking into our regulations penalizing them,’ Mr. Rohatgi added. The official explained that the watchdog had been left with India’s upcoming frequency auction, which was ‘no other option’ but to penalize cellcos, as operators scheduled to be held in July this year has been pushed had refused every other arrangement for compensating back to September media reports citing communications customers, including offering free calls and re-crediting minister Ravi Shankar Prasad. The tender is expected timing. The regulations, which came into effect from to garner revenues of INR5.6 trillion (US$82.68 billion) January 1, 2016, oblige providers to pay customers and will see the government auctioning off more INR1 (US$0.015) for each dropped call to a maximum than 2,000MHz of spectrum across seven frequencies of INR3 per day. Industry bodies the Cellular Operators – including the 700MHz band which will be made Association of India (COAI) and the Association of available for the first time. Mr. Prasad said: ‘We have Unified Service Providers of India (AUSPI) challenged the cleared spectrum trading and sharing. Therefore, issues rules, claiming that the TRAI does not have the authority regarding spectrum have been addressed. In the next to impose such requirements and warning that it could two to three months 2,000MHz will be auctioned.’ In cost operators upwards of INR30 billion per month. After January 2016 the Telecom Regulatory Authority of going through the lower courts, in March the matter India (TRAI) published its recommendations on reserve was passed to the Supreme Court, which ordered the prices for frequencies in the 700MHz, 800MHz, 900MHz, TRAI not to take any action against the nation’s cellcos 1800MHz, 2100MHz, 2300MHz and 2500MHz bands until it has ruled on the issue. For its part the TRAI has for the spectrum auction, calling for the government to accused the nation’s cellcos of failing to invest in their complete the spectrum harmonization process in the networks to maintain service quality, claiming that they 1800MHz band, and to carry out a similar re-assignment are ‘just interested in filling their coffers.’ On the other exercise in the 800MHz range before proceeding with hand, mobile providers have stated that the issue is the tender. Subsequently, in April India’s Department not as widespread as the TRAI has suggested and that of Telecommunications (DoT) approved a decrease in where call drops are a problem it is not the fault of the spectrum usage charges (SUC) to 3% of annual gross providers, but local authorities. The cellcos complained revenues in an effort to attract bids. that the arbitrary sealing of towers in certain cities, most (May 24, 2016) The Business Standard notably Delhi, is limiting its ability to meet quality of service (QoS) standards. (April 27, 2016) telegeography.com India’s much-discussed upcoming spectrum auction will likely get underway in late July at the earliest judging Indonesia by comments made by the country’s communications The Ministry of Communications and minister this week. “Issues regarding spectrum have Information Technology (MCIT, also been addressed,” the government having cleared known locally as KemenKominfo) has spectrum trading and sharing, Ravi Shankar Prasad said published a draft ministerial regulation in a speech at the Telecom India event in New Delhi on governing the provision of content over the internet Friday, according to a report in the Economic Times. “In by over-the-top (OTT) providers. Before being put into the coming two to three months, 2,000 MHz of spectrum effect, the regulation is being tested publicly until May will be auctioned,” Prasad said, according to the paper. 12, 2016. In brief, the draft requires that: the OTT operate That suggests a timeframe of late July to late August, in the form of a permanent establishment [but can be]

page_74 REGULATORY & POLICY UPDATES

SAMENA TRENDS _ MAY 2016 either foreign or local players; OTT players must register be delayed by six months due to the ‘complexities of their business forms and activities to the Indonesian the process.’ Contracts for the plan’s deployment are Telecommunications Regulatory Body (ITRB) no later now expected to be awarded in 2017, with the network than 30 working days prior to providing services in due to be ready in 2022, two years later than originally Indonesia by attaching the required documents; and, scheduled. In August 2012 the then Communications if the OTT is in the form of foreign direct investment Minister Pat Rabbitte announced a new NBP, under (FDI) then they shall attach the permanent business which up to EUR175 million of state funding would be license from the Investment Coordinating Board (BKPM). used to extend next generation high speed network Furthermore, it is understood that the regulation will access to the 30% of the population deemed non-viable also require the OTT service provider ‘to comply with the for commercial operators to serve. A further EUR175 provisions of the legislation in the field of: prohibition of million (US$199 million) would be spent by operators to monopolistic practices and unfair business competition; improve services nationwide. (May 12, 2016) The Irish Times trading; consumer protection; intellectual property rights; broadcasting; film; advertising; anti-terrorism; taxation; transportation and logistics; tourism and Jamaica hospitality; finance; health; and / or regulations and Jamaica is set to get a new mobile other relevant legislation.’ (May 7, 2016) IndoTelko operator to challenge the incumbent duo Digicel and Flow. A report says that Symbiote Investments has paid USD20.8 Ireland million to acquire a wireless spectrum license which it In a statement released, the Department will use to roll out a 4G LTE service under the ‘’ of Communication, Energy and Natural brand. The firm says it has already invested US$50 million Resources (DCENR) has emphasized and is looking to spend another US$50 million over the the Irish government’s commitment to next three years. A spokesperson from Caricel told the the implementation of the National Broadband Plan Gleaner: ‘We will start in the metropolitan region but we (NBP), noting that the procurement process to deliver already have towers secured island-wide and will quickly the new network is now ‘well underway’. Minister move to full coverage of the entire island.’ Services are for Communications, Climate Change and Natural expected to be launched within the next few weeks. Resources, Denis Naughten, is cited as saying: ‘The Jamaica is home to over three million mobile users, with network will be expected to serve at least 30% of the Digicel claiming around 2.2 million and Flow having premises in Ireland who cannot currently get access to around one million. (May 23, 2016) The Jamaica Gleaner high speed services. It will have to traverse approximately 100,000km of road network or 96% of the land area of Finance Minister Audley Shaw says the country’s Cabinet Ireland to get to every home, every business and every has approved the award of a license to a new mobile school. It will be the most significant investment in rural operator, though the applicant has not yet been named, Ireland since rural electrification,’ adding: ‘All second the Jamaica Gleaner writes. Technology Minister Phillip level schools now have access to 100Mbps broadband Paulwell said in January that authorities were looking to … There are however still 1,500 primary schools, and improve competition in the market by introducing a new over 750,000 premises, mainly in rural Ireland, who still player; the sector is currently served by just two players, cannot get access to high speed broadband services.’ Digicel and Flow (formerly LIME), with the same two Under responsibilities of the recently configured firms dominating the fixed line segment. It has not been Department of Regional Development, Rural Affairs, Arts revealed whether the new mobile player will be required and the Gaeltacht, companies interested in deploying to roll out its own infrastructure or if it will act as a virtual the NBP are expected to be shortlisted as bidders within operator by piggybacking on the two existing networks. the next month, with contracts to be signed by June Jamaica was home to around three million cellular 2017. Further, a national mobile phone and broadband subscribers at the end of 2015. (May 5, 2016) telegeography.com workgroup is scheduled be established which will consider immediate measures to alleviate broadband and mobile phone service deficits across rural Ireland. Kazakhstan (May 26, 2016) telegeography.com Iran’s Deputy ICT Minister has said that the government is looking to boost Ireland’s National Broadband Plan (NBP), which aims to internet connections in the country to deliver broadband access throughout the country with a minimum 20Mbps within the next particular focus on rural connectivity, looks set to face five years. Barat Ghanbari says that the scheme will be delays as responsibility for its implementation has been backed by an investment of USD15 billion, half of which moved to a different government department. The newly will go to the state-owned Telecommunication Company configured Department of Regional Development, Rural of Iran (TCI). Ghanbari said that internet services Affairs, Arts and the Gaeltacht is now responsible for the in rural areas will be expanded via the deployment broadband strategy, taking over from the Department of 4G LTE mobile technology. For many years most of Communications, Energy and Natural Resources residential internet connections in Iran were limited to (DCENR), though a government spokeswomen is cited a maximum speed of 128kbps, with the cap only lifted as saying the delivery of the NBP remains a ‘priority’. in September 2014. Meanwhile, TCI is to forge stronger The move follows a recent announcement from the ties with Kazakhtelecom, with the two telcos signing a DCENR which claimed introduction of the NBP would memorandum of understanding (MoU) covering the development of new services and the opening of new

page_75 REGULATORY & POLICY UPDATES

SAMENA TRENDS _ MAY 2016 international traffic routes between the Middle East, state owned fixed line incumbent LIBTELCO, Sebastian Asia and Europe. The two countries intend to link their Muah, confirmed that his company had agreed a deal to respective networks either via a direct trans-Caspian acquire 100% of Novafone for around US$10 million. In cable or overland through a neighboring country. a statement at the time he said: ‘The acquisition of 100% (May 17, 2016) Mehr News Agency of the shares in Novafone means LIBTELCO can do what it needs to foster its commercialization and strategies; and it means Novafone will continue to run, but with a new Kazakhstan telecom subscribers rises 31.2 million in management team and direction.’ He went on to point the end of March, reports telecompaper.com. The total out that Novafone was considered to be a ‘competitive increase by 7.1 percent year-on-year, and the mobile asset’ that would allow his company to enter the mobile penetration rate rose from 167 percent to 176 percent. space with national coverage using a core network that The total 2G/3G/4G base stations work in Kazakhstan has a viable long term lifespan. Muah said that LIBTELCO are 27,862 , of which 58 percent support the GSM would invest upwards of US$5 million to build 100 cell standard, 34 percent 3G and 8 percent LTE technology. sites on the Novafone network, suggesting that it would (May 5, 2016) 3gca.org take up to two years to complete the full integration of the cellco. (May 9, 2016) Online portal FrontPageAfrica Kyrgyzstan The government of Kyrgyzstan has postponed the auction of 100% of its Madagascar Madagascar’s campaign for SIM shares in Alfa Telekom (Megacom), the identification ended on 30 April, with any country’s largest cellco by subscribers. SIMs not yet registered being deactivated Previously mooted for tender on 10 May 2016, the as of May 1. The country’s Agency for deadline for applications to participate in the auction Regulation of Technology and Telecommunication has now been moved to 15 June, to reportedly allow (ARTEC, formerly OMERT) implemented the SIM potential investors more time to examine the company registration campaign in early March 2016, and will up for privatization. (May 13, 2016) Tazabek enforce the move. As per regulations (Article 5 of Order No. 2471/2016), subscribers have 90 days from SIM The government of Kyrgyzstan will auction 100% of deactivation to provide identification details in order to its shares in Alfa Telecom (Megacom) – the country’s retain their mobile number; otherwise the mobile line largest mobile operator by subscribers – on May 11, will be cancelled permanently. (May 6, 2016) Agence Ecofin 2016, according to the country’s Fund for State Property Management. The deadline for applications is May 10, while the bidders will be announced the same day, and Malta the Fund notes a starting price for the tender has been Tunisie Telecom (TT) has been selected set at KGS19 billion (US$781 million). In July 2014 the as the preferred bidder by the Maltese Kyrgyzstan state increased its shareholding in Megacom telco GO, which was put up for sale last from 49% to 100%. Prior to this, in May 2010 a 49% stake year. The Tunisian firm beat the only rival in the company was transferred to the government after bidder – Batelco of Bahrain – with an offer of EUR2.87 it was claimed that the cellco was owned by Maxim (US$3.25) per share for GO’s entire issued share capital, Bakiyev, the son of ousted President Kurmanbek Bakiyev. according to a report. GO is 60% owned by Emirates The remaining 51% stake remained under investigation, International Telecommunications (EIT), which is itself, with a Bishkek court subsequently ruling that the shares part of the Dubai Holdings Group, while the remaining also be handed to the state. (April 29, 2016) telegeography.com 40% is distributed, with shares listed on the Malta and stock exchanges. GO and TT already share an ownership link, as EIT is a 35% shareholder in the Liberia Tunisian operator, with the other 65% in state hands. The President Ellen Johnson-Sirleaf has (May 24, 2016) The Times of Malta reportedly given the thumbs down to Liberia Telecommunications Corporation (LIBTELCO’s) proposed takeover of ailing Myanmar Liberian mobile operator Novafone (formerly Comium Qatari-owned cellco Ooredoo has Liberia). According to reports from multiple sources announced plans to launch 4G services that the President has ‘rejected the deal in its entirety, in Yangon and Mandalay by the end of declaring to aides that it is not in Liberia’s best interest’, May, but a wider launch will require the effectively killing LIBTELCO’s plan stone dead. Indeed, one company to secure more spectrum from the regulator, source goes as far as to claim that Ms. Johnson-Sirleaf media reports, citing Ooredoo Myanmar CEO Rene has instructed her acting finance minister James Kollie Meza. As part of its original concession, Ooredoo was ‘to immediately terminate all negotiations regarding granted the option to purchase additional spectrum for the Novafone deal’. It is unclear what led the Liberian a fee and the cellco applied for the additional airwaves president to scupper the deal, although the move comes several months ago. ‘That will give us enough room for after the Liberian Revenue Authority shut the operator the 4G launch,’ the official explained, adding: ‘To allow down last Thursday over an alleged non-payment of taxes customers to get access to 4G services [throughout worth around US$1.3 million – accrued between 2012 Myanmar], obviously we need additional spectrum.’ and 2014. Last week the managing director of Liberian The Ministry of Transport and Communications (MCIT, recently changed from the Ministry of Communications

page_76 REGULATORY & POLICY UPDATES

SAMENA TRENDS _ MAY 2016 and Information Technology) is due to auction off reported. Victor Oluwadamilare, spokesman for Nigeria’s the 2600MHz later this year, with 1800MHz airwaves ministry of communications, said lawmakers “have set scheduled to go on sale in Q1 2017, or nine months up a committee to investigate the MTN saga and they after the 2600MHz tender. Until the spectrum becomes are still on it,” adding that “until they are through with available, Ooredoo will use the 900MHz and 2100MHz it, nothing can be done.” Back in March, MTN proposed bands for its 4G services. (May 12, 2016) The Myanmar Times to pay $1.5 billion of the fine, which originally stood at $5.2 billion (before being reduced to $3.9 billion) and is related to the company’s failure to cut off New Zealand unregistered SIM cards from its network in the country, The government of New Zealand says amid terrorism concerns. It was issued by the Nigerian that 1.2 million premises are now able to Communications Commission (NCC) in October last access high speed internet services under year. Oluwadamilare said the federal government, its two network development projects. the NCC and the ministry of communications “can do The Ultra Fast Broadband (UFB) project uses fiber nothing” about the case until the committee completes technology to offer connectivity to 921,000 households, its investigation. According to him, “there’s no point business and public sector facilities such as schools and dealing with a particular organization from different hospitals, largely in urban areas, while the parallel Rural fronts. It would be counter-productive.” MTN’s executive Broadband Initiative (RBI) utilizes a mix of fixed and chairman Phuthuma Nhleko, who agreed to a six-month wireless technologies to provide access to more than contract in November following the resignation of CEO 285,000 rural premises. Uptake on the UFB scheme has Sifiso Dabengwa over the massive fine, was due to reached 21.3%, or almost 200,000 subscribers, while RBI leave on May 9 but is sticking around as the operator uptake stands at 37.3%, or around 106,000 subscriptions. deals with the penalty issue and looks for a new CEO. (May 11, 2016) telegeography.com (May 23, 2016) Bloomberg

Nigeria Ahead of this month’s frequency spectrum auction The Nigerian Communications in the 2.6GHz band, the Nigerian Communications Commission (NCC) confirmed there was Commission (NCC) has said that it also expects foreign only one qualified bidder for the country’s firms to participate in the auctioning processes. While 2.6GHz spectrum auction, reported to be debunking claims that the commission wanted to use market leader MTN. The auction will no longer take the auction, which is slated for May 16, to rake in money place and the sole bidder will pay $96 million for the for the Federal Government, the telecoms regulator spectrum it was seeking. Leadership said the bidder said the success of the exercise holds much more for is MTN Nigeria, which made a bid “to support its Nigeria’s broadband penetration target. Indeed, the broadband program,” although a company official told successful auction of the 2.6GHz spectrum frequency the newspaper he was not aware of this development is expected to fetch the Federal Government about because it had not heard from NCC. The regulator said N44 billion ($224 million) from the 14 slots that would the qualified bidder expressed an interest to bid for six be offered for auction. Speaking at an interactive of the 14 lots on offer, at a reserve price of $16 million session with the media on the proposed ‘2.6GHz per slot, and paid the bid deposit as specified by the Licence Auction’ in Lagos yesterday, Director, Spectrum information memorandum. There is now no need to Administration at NCC, Austine Nwaulune, while making hold an auction as the memorandum states that “if the reference to the Information Memorandum (IM) on the aggregate demand from approved bidders is less than, auction, said applicants in the allocation process would or equal to the number of lots on offer, the commission not be required as a pre-qualification criterion to hold will provisionally award the license to the party/parties any telecommunications operational licence in Nigeria. at the reserve price.” The NCC is now undertaking a NCC also said that licensed operators participating in due diligence exercise and will issue a license for the the process must fulfil all existing obligations to the cumulative 30MHz in the 2.6GHz frequency, it said in a commission, including payments of Annual Operating statement. In December, it was reported that Nigeria’s Levy (AOL); Spectrum and National Numbering Plan four biggest operators – MTN, Airtel, Etisalat and fees prior to pre-qualification. On the importance of the Globacom – will commercially roll-out 4G LTE networks 2.6GHz spectrum to Nigeria, Nwaulune said that about by 2017. A month prior to that MTN’s operating license 108 networks across the globe have been rolled out on for the country’s 900MHz and 1.8GHz frequency bands the frequency, stressing that countries, including Ghana, was extended from February 2016 to August 2021 for a United Kingdom (UK), United States (U.S.), among fee of $94 million. In addition to its digital mobile license, others, currently operate on it and “as such, Nigeria MTN holds a unified access license and a 3G spectrum cannot afford to be left out.” (May 10, 2016) africatelecomit.com license. Earlier this week, discussions between Nigeria and MTN regarding a $3.9 billion were suspended until a House of Representatives committee concludes its The Nigerian Communications Commission (NCC) has invited applications from parties interested in acquiring investigation. (May 24, 2016) mobileworldlive.com regional spectrum in the 3.5GHz band. The regulator is offering up 25MHz of time division duplex (TDD) Discussion between Nigeria and the country’s top spectrum in each of the following 26 states: Adamawa, operator MTN regarding a $3.9 billion fine has been Katsina, Akwa-Ibom, Kebbi, Bauchi, Kogi, Bayelsa, suspended until a House of Representatives committee Kwara, Benue, Niger, Borno, Ogun, Cross Rivers, Ondo, concludes its investigation into the penalty, Bloomberg Ekiti, Osun, Gombe, Plateau, Jigawa, Zamfara, Kaduna,

page_77 REGULATORY & POLICY UPDATES

SAMENA TRENDS _ MAY 2016

Taraba, Kano, Yobe, Nassaarwa and Sokoto. Frequency The Agency for the Promotion of Private Investment licenses will be auctioned off on a state-by-state basis. (ProInversion) has set a launch date of 26 May for the Interested parties have been given a deadline of May 13, auction of 700MHz mobile frequencies. The agency has 2016 to submit their applications for the concessions. also modified the terms and conditions of the tender (May 1, 2016) telegeography.com to eliminate spectrum caps. Three 2×15MHz blocks of spectrum are available in the band, with a reserve price Norway of US$248.7 million each. (May 6, 2016) TeleSemana Revenues generated by Norway’s broadband and mobile sectors increased Philippine in 2015, according to data released by the The President of the Philippines, Benigno Norwegian Communications Authority S. Aquino III, has now signed the bill to (NKOM), with the nation’s total telecoms turnover create the Department of Information climbing to NOK34.620 billion (US$4.29 billion), up from and Communications Technology (DICT), NOK33.455 billion a year earlier. Revenues from mobile ending the long wait for a new regulator to oversee services accounted for more than half of the total, the development of the country’s ICT sector. The DICT standing at NOK20.129 billion, a year-on-year increase Act of 2015, also known as Republic Act (RA) No. of 3.5%, while broadband turnover rose by 6.7% to reach 10844, is structured to be ‘the primary policy, planning, NOK8.839 billion. By comparison, revenues from fixed coordinating, implementing and administrative entity of voice services amounted to NOK3.081 billion, a drop of the Executive branch of the government that will plan, more than 12% against the NOK3.510 billion reported develop and promote the national ICT development for 2014. In terms of accesses, gains were only reported agenda’. Its far-reaching mandate extends to the in the broadband sector, where the total increased to establishment of ‘a free internet service that can be 2.042 million, up 3.3% y-o-y. Notably, the increase was accessed in government offices and public areas; driven by the uptake of fiber-based services, with the assisting in the dissemination of vital information number of connections standing at 679,005 at the end essential to disaster risk reduction through the use of 2015, having risen by 16.7% against the 581,899 of ICT; and ensuring and protecting the rights and recorded at end-2014. In the mobile arena, meanwhile, welfare of consumers and business users to privacy, subscriptions declined marginally (-0.4%) to 5.715 security and confidentiality in matters relating to ICT, million, with a 91,000 rise in the number of post-paid among others’. Headed up by a new secretary – with accesses failing to offset a 115,000 drop in pre-paid at least seven years of expertise in ICT, cyber security subscribers. Standalone mobile broadband subscriptions or e-Commerce development, and appointed by the totaled 485,691 at the end of 2015, representing a 9.2% president – the DICT effectively replaces a number of drop from 535,015 a year earlier. Fixed voice services agencies whose functions and responsibilities will be also saw declines in the year under review, with the total absorbed into the new body, namely: the Information (PSTN and VoIP combined) falling under the one million and Communications Technology Office (ICTO); National mark to stand at 944,510 at end-2015, down from 1.081 Computer Center (NCC); National Computer Institute million a year earlier. (May 20, 2016) telegeography.com (NCI); Telecommunications Office (TELOF); National Telecommunications Training Institute (NTTI); and all operating units of the Department of Transportation Peru and Communications (DOTC) with functions and Ministry of Transport and Communication responsibilities dealing with communications. Meanwhile, (MTC) has awarded LTE-compatible the National Telecommunications Commission (NTC), spectrum in the 700MHz band to Entel, National Privacy Commission, and the Cybercrime Claro and Movistar, the Agency for the Investigation and Coordination Center (CICC), will be Promotion of Private Investment (Agencia de Promocion retained, but will now be attached to DICT to act as de la Inversion Privada, ProInversion) has announced. agencies for policy and program coordination, it says. Each of the trio was awarded a 2×15MHz spectrum block, The law allows for a six-month transition to implement valid for 20 years. Chilean-owned Entel was awarded the necessary changes, which also include the setting up Block A with a bid of USD290.21 million, just ahead of the of a Department of Transportation, instead of the former reserve price of USD284.70 million, whilst Block B was DOTC. (May 25, 2016) The Manila Bulletin won by Claro with a bid of USD306.00 million and Block C went to Movistar for USD315.01 million. Vietnamese- backed newcomer Bitel also submitted an offer for the Russia airwaves, but failed to secure any spectrum. Under the Russian investment fund RFPI is mulling a terms of the new concessions, the licensees are required minority stake purchase in the country’s to roll out LTE services to 195 unserved or underserved dominant fixed network operator towns. According to sector watchdog the Supervisory Rostelecom, in partnership with Arab Agency for Private Investment in Telecommunications investors, media reports citing Russian newspaper (Organismo Supervisor de Inversion Privada en Kommersant. The roughly 15% stake in Rostelecom Telecommuniciones, Osiptel) the winners must cover 15 is currently held by Mobitel, a subsidiary of state- towns within the first year, a further 129 in the second controlled Rostelecom itself, and is valued at over year and 51 more in the third. (May 27, 2016) telegeography.com RUB41 billion (US$631 million), a source familiar with the matter was quoted as saying. Arab companies Mubadala Development Company and Kuwait Investment

page_78 REGULATORY & POLICY UPDATES

SAMENA TRENDS _ MAY 2016

Authority cooperate with Rostelecom on other projects, this year will be to enhance ICT infrastructure to better but the firms declined to comment on the report. RFPI, support the data and digital services needs of a Digital in cooperation with Deutsche Bank, previously acquired Government in a Smart Nation. For example, increased a 2.7% stake in Rostelecom for USD236 million in 2013 data center virtualization will allow the government to but sold the shares back to Rostelecom in 2014-2015. modernize its hosting of ICT applications and ensure The Russian Federation (via the Federal Agency for State faster time to production for new digital services. Wi- Property Management) holds a 45.04% equity stake Fi will be extended to more areas within government (48.71% voting share) in Rostelecom, while holding schools to support smart learning. The government company Mobitel owns a 16.24% equity (15.06% will also continue to invest in its cybersecurity efforts, voting) stake. The only other 2%-plus share is held by with a bulk tender for IT security services to be called Vnesheconombank (3.96% equity/4.29% voting), with in this fiscal year. “We want to empower Singapore with the remaining 34.76% of share capital in free float or held possibilities through technology. To do that, investment by other, unspecified, shareholders. (May 13, 2016) Telecompaper in infrastructure is necessary so that innovative citizen- centric services can be built and enhanced on a strong foundation,” IDA managing director Jacqueline Poh said. Senegal (May 24, 2016) telecomasia.net The director of Senegal’s Regulation Authority of Post and Telecoms (ARTP), has given the country’s telecoms South Africa operators – Orange Senegal, Tigo South African telecoms operator Neotel Senegal and Sudatel Senegal (Expresso) – six months has reportedly attracted two takeover bids to complete a mandatory identification of all mobile – from submarine cable provider Seacom telecoms subscribers. Starting May 10, 2016, industry and Econet Wireless, the parent of pan- players have six months to comply he said, noting that African fiber-optic provider Liquid Telecom – following to help ensure the success of the verification process the collapse of its merger talks with market leader for identifying users, all operators will be given access earlier this year. In late February the High to government-held national identity files. The process Court in Pretoria ruled against Vodacom’s acquisition to complete SIM identification has so far not run to of Neotel’s spectrum and licenses, and subsequently plan. In June 2013 the Ministry of Communication, the two sides decided to call off the takeover. Neotel’s Telecommunications and Digital Economy launched a parent Tata Communications of India subsequently scheme to identify all mobile subscribers in the country. revealed in March that it was looking for a new buyer The project, managed by the ARTP, is being carried out for its South African subsidiary, with CEO Vinod Kumar under recommendations laid out by the International disclosing: ‘We were in talks with Vodacom, as there Telecommunication Union (ITU) – adopted in 2007 – was no other potential buyer with which we were that require domestic cellcos to identify who is using committed … However, many market participants have their mobile services in order to provide more reliable expressed an interest and now the time has come for us statistics on the market improve security and tackle to explore these options.’ In related news, a number of the grey market for phones. More than eight years companies are believed to have expressed an interest after adopting the decree, however, Senegal’s wireless in acquiring independent South African mobile service service providers have so far failed to complete the provider GloCell, with Allied International Investments mobile identification scheme, despite the trio deploying (part of Allied Mobile group of companies) reportedly teams across the country to help carry out the process. close to securing a controlling stake of roughly 75% of (May 19, 2016) telegeography.com the GloCell’s equity, TechCentral writes citing two well- placed sources with knowledge of the situation. GloCell – which is a major supplier of pre-paid mobile products Singapore – recently acquired Cell C’s subscriber base from Altron Singapore’s soon-to-be-formed subsidiary Altech Autopage. Allied Mobile, meanwhile, Government Technology Agency is a shareholder in Virgin Mobile South Africa. In a press (GovTech) will continue to partner the ICT release, GloCell said that it is in ‘ongoing discussions industry and invest in technologies such with various companies on growing its business’, as data analytics, ICT infrastructure, and platform-as- adding that it will ‘share news once there are concrete a-service to develop citizen-centric services. GovTech, developments.’ (May 13, 2016) MyBroadband which will be established at the end of this year, will replace the Infocomm Development Agency of Singapore (IDA) and aim to lead technological transformation in South Korea government. The agency is expected to continue to South Korea’s spectrum auction has come partner the industry to co-create such digital solutions and gone, with the three major players and will be calling for a projected S$2.82 billion ($2.04 all securing additional airwaves, but billion) of ICT tenders across fiscal year 2016. These the expected fierce competition didn’t ICT tenders will comprise mainly infrastructure and materialize, with two of three blocks going for the reserve ICT security bulk contracts due to some multi-year prices. The country’s Ministry of Science, ICT and Future contracts ending in FY16, as well as contracts relating Planning (MSIP) said the auction raised KRW2.11 trillion to agency-specific systems. Last year, SMEs accounted ($1.82 billion), short of the forecast of KRW2.5 trillion. for more than half of the total contracted value of ICT Despite the blocks in 1.8GHz and 2.1GHz bands selling at tenders. One key focus for government procurement the reserve price, the shortfall was mainly due to 40MHz

page_79 REGULATORY & POLICY UPDATES

SAMENA TRENDS _ MAY 2016 in the 700MHz band going unsold. With the 2x20MHz each operator has a foundation on which to proceed block not attracting any bidders due to the high base with network investments and to support advanced price of KRW762 billion, the regulator seems to have services and to accommodate growing data traffic, it miscalculated demand for the highly-efficient band from said. (May 3, 2016) totaltele.com operators, which don’t have coverage issues. The lack of interest, an analyst said, shows that when regulators set unjustified prices, they risk limiting the availability Sweden of spectrum and having to re-auction airwaves for an National Post and Telecom Agency additional cost, and should be an example of other (PTS) has issued proposals to change countries, such as India, when they set auction prices. LG the national numbering plan to fully Uplus’ winning bid for the 20MHz of 2.1GHz spectrum support the utilization of geographical went for the reserve price of KRW381.6 billion, because (fixed) telephone numbers in other area codes as well of the way the regulator structured the reassignment of as in mobile networks. The regulator’s announcement the spectrum in that band, which expires in December. said that there is an increasing demand for the use of SK Telecom (SKT) and KT knew they would have to pay more flexible telephone numbers, for example, to move the final auction price (per megahertz) for their existing a fixed geographical number to another area code or 40MHz in the 2.1GHz band, which MSIP will reallocate to use the geographical number in the mobile network. back to the two operators, so they didn’t participate This type of service exists today but is not permissible in in that auction, allowing LG Uplus to win the five-year Sweden on the basis of the numbering plan and license license uncontested. SKT surrendered the 20MHz for the conditions. PTS identified in its strategy for telephony auction. KT went home with 20MHz in the 1.8GHz band numbering (2014) these changes as being possible to for KRW451 billion, also the reserve price. SKT won two implement in the short term (2017 onwards). The Agency blocks of 60MHz in the 2.6GHz band for KRW1.27 trillion, also found that the changes are not expected to create which was 29 per cent, or KRW287 billion, higher than problems such as potential complications for emergency the minimum price. Those spectrum blocks have ten- calls, number portability and additional services such as year licenses. As a result of the auctions and the renewal SMS and MMS. The statement added that: ‘In the short of their existing 2.1GHz blocks later this year, Moody’s term, PTS procedures for the allocation of geographic estimates that SKT’s and KT’s adjusted debt/EBITDA will numbers remain unchanged. A major change such as to increase slightly. With 25 per cent of the bid payments completely remove the current area codes, can become due upfront, and the remaining 75 per cent paid annually relevant only in the longer term (2025 onwards).’ Market over the ten-year license period, Moody’s expects the participants have until June 15, 2016 to respond to the payments to be funded by the companies’ existing cash PTS’ latest proposals. (May 20, 2016) telegeography.com holdings. It forecasts SKT’s financial leverage at 1.9x in 2016 without the new spectrum payment and after Tanzania factoring in an upcoming investment of around KRW700 President of Tanzania John Magufuli has billion in CJ Hellovision, Korea’s largest cable TV and dissolved the Tanzania Communications second-largest pay-TV operator. With the new spectrum Regulatory Authority (TCRA) board obligations, its adjusted debt/EBITDA will rise to around and suspended its Director General, 2.1x. Moody’s said KT is better positioned to absorb the Dr Ally Yahya Simba, for failing to implement the impact of higher leverage since it reduced its leverage to Telecommunications Traffic Monitoring System 2.0x in 2015 from 2.5x in 2014, following last year’s sale (TTMS. The decision followed a meeting involving the of KT Rental and KT Capital. After the spectrum-related Communications Ministry, the Ministry of Finance & debt is incorporated, its adjusted leverage will rise to Planning and Tanzania’s anti-corruption bureau (PCCB) 2.1x. (May 6, 2016) mobileworldlive.com which concluded that the failure to implement the TTMS system was costing the government around TZS400 South Korea’s latest multi-band spectrum auction has billion (USD179 million) in lost telecoms revenues per drawn to a close, raising 2.11 trillion won (€1.6 billion). year. President Magufuli also instructed ICT Minister The process fell short of expectations due to a lack of Makame Mbarawa to appoint an Acting Director serious competitive bidding and the fact that one of the General for the TCRA immediately, and urged the available spectrum blocks was left unsold. The biggest relevant authorities to ensure that the delayed local calls spender in the process was SK Telecom, which picked revenue collection system could commence operations up both blocks of 2.6-GHz frequencies, agreeing to pay as soon as possible. The President stressed: ‘Make sure KRW1.28 trillion (€964 million). KT secured the 1800- that you take action immediately. I want us to properly MHz airwaves at the KRW451.3 billion reserve price, collect revenue. I will not hesitate to take appropriate while LG Uplus agreed to pay the minimum price of action against anyone who will hinder the process.’ KRW381.6 billion for the available 2.1-GHz spectrum. (April 29, 2016) ) DailyNews.co.tz A package of 700-MHz airwaves, priced at KRW762 billion, failed to attract a buyer. South Korea’s Ministry Thailand of Science, ICT and Future Planning (MSIP) revealed the Sole bidder AIS won Thailand’s 4G re- results in a local language statement on Monday. The auction, picking up 900-MHz spectrum reserve prices attached to the spectrum show the state for the reserve price of 75.65 billion baht expected to generate upwards of KRW2.58 trillion from (€1.93 billion). With no other participants, the sale. The ministry said the auction was carried out the operator only had to match the winning bid made by smoothly and without excess competition. As a result, Jas Mobile when the frequencies were first auctioned in

page_80 REGULATORY & POLICY UPDATES

SAMENA TRENDS _ MAY 2016

December 2015. Jas Mobile later forfeited the spectrum Thirty Four regional Thai cable TV network operators after missing March’s payment deadline. “We believe have submitted a joint application for broadband the 900-MHz frequency will yield benefits to users as internet operating licenses. The National Broadcasting well as contribute to the long-term growth of Thailand’s & Telecommunications Commission (NBTC) is digital infrastructure,” said Somchai Lertsutiwong, CEO considering the award of three-year licenses to of AIS, in a statement. “Together with the 2100-MHz qualified applicants, with a decision due in 30 days. and 1800-MHz frequencies that the company already The 34 pay-TV operators hail from provinces across has in hand, the AIS network has become stronger with the country such as Phetchabun, Chon Buri and Ubon higher quality, resulting in the ultimate benefits for our Ratchathani, confirmed Varin Cholhan, vice president customers,” he said. “At the same time, investors can rest of the Cable Thai Association and managing director assured that this investment was made based on rational of Digital Cable of Phetchabun, who added that of the decision-making that took into account the overall 350 association members, around 100 are equipped to growth in popularity of digital services among Thai provide broadband internet but currently use their fiber- people,” he added. According to a Bangkok Post report, optic networks solely for broadcasting. He continued: Thailand’s telecom watchdog, the National Broadcasting ‘Each [of the 34 applicants] is expected to launch the and Telecommunications Commission (NBTC), will issue broadband internet service within five months after the 4G license within two days of receiving the first obtaining the license. They’re expected to offer a payment, which is due within 90 days. If like previous monthly service fee of THB590 (US$16.75), the same as 900-MHz winner Jas Mobile, AIS fails to pay up, it will the major players.’ The Nation’s report added that the lose its deposit of THB3.78 billion and will have to pay small cablecos are seeking new revenue streams amid damages of at least THB11.35 billion. (May 27, 2016) totaltele.com flat growth of their core TV services, and are aiming for 30% of their CATV subscribers to sign up to broadband under a breakeven target timeframe of two years. They Government insists it will reallocate broadcaster MCOT’s plan to lease additional fibre transmission capacity unused 2600MHz frequencies for 4G wireless internet from large wholesale telecoms providers including services by the middle of next year, the Bangkok Post CAT Telecom and United Information Highway (UIH). reports. The 60MHz block of spectrum will be allocated (May 10, 2016) The Nation through auctions by the National Broadcasting and Telecommunications Commission (NBTC) by mid-2017, said Deputy Prime Minister Prajin Juntong. The state- Togo run broadcaster will receive financial compensation Togo’s Minister of Posts & Digital Economy, from the state in exchange for returning the 60MHz Cina Lawson, has said that access to bandwidth; MCOT holds a total of 144MHz in the mobile broadband internet services 2600MHz range, allocated to provide pay-TV services. should no longer be ‘a luxury product’, (May 24, 2016) telegeography.com available to only a few, and called on the country’s two network operators – 2015 Togo Cellulaire (Togocel) and Thai quadruple-play operator True Corp has decided Moov Togo – to rapidly extend 3G service coverage and not to participate in the upcoming 900MHz 4G license provide the highest data speeds possible to consumers. auction scheduled for May 27. Rival DTAC previously In a ministry session on April 30, Ms. Lawson confirmed said it would not take part in the contest, meaning that that the domestic mobile market expanded by a net 1.28 mobile market leader AIS will be the sole applicant for million users in 2015, and with Smartphone take-up on the 2×10MHz concession, which was left vacant after the increase, demand for broadband is set to ‘explode’ in Jasmine failed to pay for its spectrum won at auction in the next two to three years – but only if prices are reduced December. True had already paid for the other 900MHz to make handsets affordable to the average man in the block auctioned. True’s letter to the Securities Exchange street. According to the ministry-led research, Togo Commission said that following the board’s meeting was home to a total of 4,657,321 mobile users at end- on 16 May, True has decided not to participate in the 2015, a cellular penetration rate of 66.78%. In February auction as it has enough high frequency spectrum for this year Ms. Lawson went on record as saying that the capacity (1800MHz and 2100MHz) and low frequency government hopes to kick off the bidding process for 4G spectrum for coverage (850MHz via its partnership with mobile licenses in 2016, with the concessions including CAT and 900MHz directly) to meet demand. A few days rights to offer 2G, 3G and 4G services. The process of earlier at a panel organized by Thailand’s IT Press Club, issuing 4G concessions to domestic MNOs would be NBTC Secretary General Takorn Tantasit stated that AIS dependent on ‘the enthusiasm of investors to trade in had decided to participate in the auction. Meanwhile, our market’ and demand for 4G in Togo. The minister it has also been confirmed that a mooted 900MHz launched a study into 4G licensing in November 2015. mobile network rental agreement between AIS and In February 2015 Togocel, the mobile arm of fixed line True will not happen, as the rivals could not agree on a incumbent Togo Telecom, announced plans to launch compromise. AIS had been looking at ways to continue the tiny African nation’s first 4G mobile network and serving remaining 2G-only 900MHz device owners in roll out mobile banking before the year end. The launch the event of losing direct access to 900MHz frequencies. never materialized, though, and critics argued that, (May 17, 2016) TelecomAsia with the cellco’s current 3G network being inadequate at best, efforts should be made to improve that before even considering 4G. Attempts to introduce a third player to the market in 2014 also came to nothing. (May 3, 2016) Agence Ecofin

page_81 REGULATORY & POLICY UPDATES

SAMENA TRENDS _ MAY 2016

the gap between advertised speeds and the wireless United Kingdom performance that people and businesses actually receive. The European Commission (EC) has ruled So we’re exploring ways to open up more airwaves for that the UK’s National Broadband Scheme WiFi,” he added. As it stands, the 2.4 GHz band is most for 2016-2020, which aims to connect as commonly used for WiFi in the U.K., specifically 2400 MHz- many homes and businesses as possible 2483.5 MHz, but 5-GHz WiFi is growing in popularity. throughout the UK to high speed broadband, complies The 5-GHz band is significantly less congested than with EU state aid rules. This decision comes just over the 2.4 GHz band. The consultation focuses specifically one month after the UK notified the scheme to the on the 5725 MHz-5850 MHz sub-band, which is used Commission on 21 April 2016. In a press release confirming for WiFi in a number of countries, but not in Europe, the development, the EC noted that the National OFCOM said. Opening up those additional 125 MHz of Broadband Scheme plans to increase coverage of high frequencies would, when combined with the existing speed broadband in the UK by deploying infrastructure 5-GHz WiFi spectrum, enable the creation of either two capable of speeds of more than 30Mbps to as many new 80-MHz channels or a single 160-MHz channel, it premises as possible. The EC’s state aid assessment aims explained. The additional channels will “help address to ensure that public funding does not take the place of consumers’ demand for high data rate applications,” private investment, while making sure that other service OFCOM said. “It will also help avoid congestion.” The providers can use the publicly funded infrastructure on regulator confirmed that any move to open up the a non-discriminatory basis. The Commission said it had aforementioned spectrum for WiFi would also include worked constructively with UK authorities, and noted ensuring “the appropriate protection” for other users that the UK can fully fund the investment to roll out next of the band, including satellite service providers. It said generation access (NGA) broadband in areas where no early results from technical studies suggest that sharing such infrastructure exists and where no private operator with other users is feasible. OFCOM added that it is able is willing to invest without state aid in the next three to open up the 5725 MHz-5850 MHz sub-band without years. To further ensure that public investment does not waiting for wider international developments, such as crowd out private funding, detailed mapping and public the outcome of the 2019 World Radiocommunication consultation exercises will be carried out with interested Conference (WRC-19). Interested parties have until 22 private operators. Aid, meanwhile, will be awarded by way July to respond to the consultation. (May 13, 2016) totaltele.com of tenders compliant with EU public procurement rules, respecting the principles of technological neutrality and also facilitating bids by smaller operators. Commenting United States on the matter, European Commissioner for Competition The U.S. Federal Communications Margrethe Vestager said: ‘Today’s decision endorses UK Commission (FCC) this week agreed rules plans to support the rollout of high speed broadband paving the way for allocating US$2 billion infrastructure – it aims to bring faster internet to UK (€1.79 billion) of public money to fund consumers and businesses in line with EU state aid rules.’ rural broadband deployments. Last year, $9 billion was (May 27, 2016) telegeography.com allotted to the country’s biggest telcos under phase two of the Connect America Fund (CAF), but that still left The UK Government, led by the National Infrastructure some parts of the country without adequate broadband Commission, has published an 8-week consultation on coverage. As a result, the FCC has earmarked another the infrastructure requirements for the deployment and $2 billion and invited smaller players to bid for funding development of 5G in the UK. The consultation closes on with the aim of extending broadband networks to areas July 11. In March, the Chancellor asked the Commission where deployment costs are inordinately high. The FCC to consider what the UK needs to do to become a world has set out four tiers of service that it deems eligible for leader in 5G deployment, and to ensure that the UK funding. These range from an ‘entry-level’ service of 10 can take early advantage of the potential applications Mbps downlink, 1 Mbps uplink, plus a 150 GB per month of 5G services. The Commission will report back to the data allowance, right up to a high-end service that offers government with its assessment and recommendations 1 Gbps downlink, 500 Mbps uplink, plus unlimited data. by end-2016. These will support the government’s As well as pledging to meet one of the four service- 5G strategy, which will be announced in spring 2017. level standards, telcos must also commit to building (May 20, 2016) broadband4europe.com 40% of the network within three years of receiving authorization, rising to 60% after four years, 80% after five years, and 100% after six years. Progress reports OFCOM has proposed opening up more spectrum in must also be submitted to the FCC so it can monitor the 5 GHz band for WiFi, a move that would bring the deployments. “We welcome the commission’s progress U.K. into line with other markets, including the U.S. The towards conducting an auction to provide funding for U.K. telecoms regulator issued a consultation paper the delivery of broadband service in rural areas,” said Jon proposing the use of two additional 80-MHz channels Banks, SVP of law and policy at lobby group USTelecom. for WiFi within the 5-GHz band. That would bring the “We look forward to working with the commission and total available in that band to six channels. “People are interested parties to fully develop an auction process placing greater demands on their broadband, so we that will connect as many rural Americans living in these need to ensure they aren’t let down by their wireless very high-cost areas to the Internet as efficiently as connection,” said OFCOM’s group director of spectrum possible within the limited budget available,” he said. Philip Marnick, in a statement. “We also want to close (May 26, 2016) totaltele.com

page_82 REGULATORY & POLICY UPDATES

SAMENA TRENDS _ MAY 2016

The FCC has joined the Federal Trade Commission in by bringing and protecting competition to the video launching an inquiry into mobile device security updates. marketplace and increasing broadband deployment. The FCC’s wireless telecommunications bureau has sent If the conditions are approved by my colleagues, an a letter to mobile carriers asking questions about their additional two million customer locations will have processes for reviewing and releasing security updates access to a high speed connection. At least one million for mobile devices. Responses to the letters will inform of those connections will be in competition with another discussions with industry about possible solutions high speed broadband provider in the market served, and be shared with the FTC. In parallel, the FTC has bringing innovation and new choices for consumers, ordered eight mobile device makers to provide it with and demonstrate the viability of one broadband information about how they issue security updates to provider overbuilding another’. The FCC’s final decision address vulnerabilities in Smartphones, tablets and is expected to be imminent. (April 28, 2016) telegeography.com other mobile devices. The FCC writes that the number of vulnerabilities associated with mobile operating systems has been growing, including “Stagefright” in the Android OS, which may affect nearly 1 billion devices worldwide. According to the regulator, operating system providers, original equipment manufacturers and mobile service providers have responded to address vulnerabilities as they arise, but there have been significant delays in delivering patches to devices and older devices may never be patched. (May 10, 2016) telecompaper.com

The US Federal Communications Commission (FCC) has approved the USD17.7 billion acquisition of New York-headquartered cableco Cablevision Systems by Netherlands-based Altice Group. A statement issued by the watchdog reads: ‘Based on our analysis, we find that the likely public interest benefits outweigh any potential public interest harms. Accordingly, we conclude that the transaction, on balance, serves the public interest, and we consent to the proposed assignments and transfers of control’. According to the FCC statement, following the completion of the transaction, Cablevision will be 100% directly owned by Neptune Holding US Corp, which is itself controlled by Altice. The Cablevision takeover represents one of two separate US deals that Altice agreed in 2015; the company secured regulatory approval for its US$9.1 million takeover of Suddenlink in December last year. (May 5, 2016) telegeography.com

Charter Communications’ long-running dual takeover of rival cablecos Time Warner Cable (TWC) and Bright House Networks received a major boost this week, with both the Department of Justice (DoJ) and Federal Communications Commission (FCC) chairman Tom Wheeler throwing their respective weight behind the proposed tie-up. The DoJ firstly agreed a settlement forbidding the merged company, referred to as ‘New Charter’, from entering into, or enforcing; agreements that could make it more difficult for online video distributors (OVDs) to obtain video content from programmers. The DoJ’s Antitrust Division had alleged that TWC in particular has been an industry leader in seeking such restrictions. Subsequently, Mr. Wheeler issued the following statement: ‘Based on imposed Javaid Akhtar Malik conditions that will ensure a competitive video Regulatory Affairs marketplace and increase broadband deployment, an SAMENA Telecommunications Council order recommending that the Charter/Time Warner Cable/Bright House Networks transaction be approved “Information contained in Member News updates, Regional News updates, Policy & Regulatory updates, has circulated to the [FCC] Commissioners. As proposed, Satellite News updates, Technology News updates, Regulatory News Snapshot of SAMENA Countries, Regulatory News beyond SAMENA region and Wholesale News updates have been obtained from sources, the order outlines a number of conditions in place which we deem reliable. SAMENA 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 for seven years that will directly benefit consumers be sought.”

page_83 WHOLESALE UPDATES

SAMENA TRENDS _ MAY 2016

WHOLESALE NEWS

EU governments agree hopes that the proposal will enter into force in 2017, the same year that roaming new roaming rules for charges for using mobile phones in other Netflix, Amazon countries within the EU will be abolished. While Netflix is already available in European subscribers to online video many European countries, content is streaming services like Netflix, Amazon tailored to local tastes so that a French Video and Sky will be able to access the user in Germany, for example, might services when visiting other countries not currently have access to the French within the European Union under catalog without connecting through proposals agreed by member states. The a server that appears to be located in law was presented by the EU executive, France. Public television broadcasters are the European Commission (EC), last not affected by the new rules, the Council December as part of its efforts to create WHOLESALE of the EU said. a single market for such online services UPDATES across the 28-member bloc. The proposal on portability of digital content will France’s ARCEP closes in become law after it is approved by the European Parliament. Consumers with on Free Mobile-Orange subscriptions to services such as Sky roaming deal TV Now, ProSiebenSat.1MaxDome TV in Germany or Netflix in France, would France’s operators have three weeks to be able to view content they have paid submit any changes to their network for when they are “temporarily” in other sharing and roaming deals, following countries within the EU. “This means the introduction of new guidelines by that citizens who are in another member regulator ARCEP. The regulator said it state for purposes such as holidays or will be scrutinizing the Free Mobile/ business trips can enjoy for example Orange roaming deal, which has enabled music, films, games or sporting events newcomer Free to become such a just like at home,” said Henk Kamp, disruptive force in the country’s mobile Minister for Economic Affairs in the market, as well as the network sharing and Netherlands, which holds the rotating EU roaming agreement between Bouygues presidency and managed the proposal. Telecom and SFR. The operators must What constitutes “temporarily” was left review the regulator’s guidelines and open, but member states specified that then submit by 15 June any necessary it is a “limited amount of time”. The EC amendments to their existing contracts.

page_84 WHOLESALE UPDATES

SAMENA TRENDS _ MAY 2016

that mobile prices decreased at India) has now written to the regulator, a far less aggressive rate in 2015 asking it to change its mind in light of compared to previous years. Iliad- the confusion over services delivered owned Free Mobile’s arrival in the via closed electronic communication French market in 2012 sparked an networks (CECNs), also known as the aggressive price war with Orange, intranet. The letter asked TRAI “to SFR-Numericable and Bouygues, as review its decision of the CECN network the new entrant began undercutting and allow differential tariffs on the rivals. Consolidation talk has since basis of content irrespective of whether been high on the agenda to cut the such content is provided through the market back to three players, but closed network or open internet”. The no deal has yet surfaced, despite body argued that the regulator allows numerous attempts. While prices discriminatory pricing of data services continued to decline in 2015, when content is delivered over CECNs. The guidelines reflect ARCEP’s according to ARCEP’s annual study Net neutrality supporters acknowledge thinking that while roaming can be into price changes for mobile services CECNs could offer a loophole for beneficial, it also must be transitory between 2010 to 2015, it was at a much operators to offer zero rated services. or limited in scale, since it removes a lower rate. There was an average cut However, TRAI argues the rules on data newcomer’s incentive to invest in their of 5.5 per cent in 2015, accounting for pricing are clear. TRAI’s letter looks own infrastructure, a criticism made both flat rate plans and prepaid cards, for clarification on two areas. Firstly, of the Free Mobile-Orange deal. The representing a dramatic decrease from whether an operator could share regulator had kinder words for network 2013, when prices fell by as much as advertising revenue with a content sharing, which is helpful in more 26.6 per cent, and 2014, which saw a provider which is providing exclusive sparsely populated parts of France, fall of 10.6 per cent. ARCEP put the content to an operator’s subscribers with a negative impact on competition decrease in the price of flat rate plans at a subsidized rate. And if a content outweighed by the positive effect for down to the “swift development of provider could offer subsidized coverage and quality of mobile service. SIM only plans” without a subsidized subscription to some or all of an The regulator examined the third handset, as well as the trend of operator’s subscribers, whether that existing network sharing agreement, increasing data allowances attached is a CECN. The correspondence comes which covers all four mobile operators to plans, with prices remaining within weeks of the country’s largest as part of the national program to unchanged. Approximately 64.7 operator, Bharti Airtel, approaching expand mobile coverage in France’s per cent of phones were purchased the regulator about a potential deal most rural areas, early this year. The without a package last year, a 7.9 with an unnamed US content provider agreement was approved, with a few percentage point increase from 2014. that would supply exclusive video over adjustments. The regulator previously It also said that price decreases were the operator’s intranet. proposed an end date to Free Mobile’s “more pronounced with the less they roaming deal with Orange. For 3G, the consume”. For heavy consumers, prices agreement should finish between end- remained virtually unchanged in 2015, CBL, BTC respond to pro- 2018 and end-2020, it said. For the less while light consumers saw decreases posed national roaming important 2G services, the agreement of 12.2 per cent. Orange CEO Stephane should end between the beginning of Richard said last year it was “insane” agreement 2020 and the end of 2022. to think that prices would continue to Bahamian telecoms regulator the decline in coming years. Utilities Regulation and Competition Authority (URCA) has published ARCEP suggests slow industry responses to its proposal to Indian operators pressing end to French price war impose a significant market power TRAI to lift a ban on (SMP) obligation on incumbent France’s infamous price war appears to Bahamas Telecommunications be slowly reaching an end, with a new differential pricing of data Company (BTC), forcing it to provide report from watchdog ARCEP showing services access to its network to newcomer Cable Bahamas Ltd (CBL)-managed A body representing leading operators NewCo via a national roaming is pressing the country’s regulator, agreement. The measure is intended TRAI, to lift a ban on differential pricing to ease NewCo’s commercial launch of data services, citing a lack of clarity in by allowing the cellco to offer services rules, said Economic Times. The subject throughout the country via BTC’s leapt into the public consciousness network whilst it builds out its own during an intense national debate in infrastructure. URCA’s proposal would India over net neutrality, leading to require BTC to provide coverage only TRAI prohibiting differential pricing. in areas where NewCo has not rolled The decision effectively banned zero- out its own network. The regulator rated services such as Facebook’s Free also clarified that NewCo would still be Basics and Bharti Airtel’s Airtel Zero. required to meet the coverage targets COAI (Cellular Operators Association of set out in its license and, as such,

page_85 WHOLESALE UPDATES

SAMENA TRENDS _ MAY 2016 would last a maximum of 36 months. Network Operators (MVNO) World decision by the Canadian Radio- CBL, which has management control Congress hosted by Informa Telecoms television and Telecommunications and owns a 48.25% equity stake in the & Media. Omantel was ranked second Commission (CRTC) that requires it new cellco, supported the proposal in the category of ‘Best Wholesale and other telecoms heavyweights to but requested that several points be Operator’ behind UK provider EE give independent ISPs access to their clarified or amended. The incumbent, (part of British Telecom Group) at the advanced networks at a reduced cost; however, criticized the proposal, awards ceremony held in Amsterdam, the CRTC will set the prices based partly saying that URCA had: ‘not provided the Netherlands, on April 13, a on cost studies provided by the major any substantive evidence in support company statement said. Commenting telcos, commission spokesperson of its assertion that a national roaming on the achievement, Eng Yasser Redha Patricia Valladao said. In its appeal, obligation on BTC is in fact necessary, Said al Lawati, senior manager of Bell had argued that the regulation appropriate, efficient or proportionate national accounts & interconnection would discourage investments in to its purpose as required under the department of the Wholesale Business broadband infrastructure, resulting Communications Act.’ The operator Unit at Omantel, said, “We are indeed in high speed internet reaching added that a 36-month timeframe honored to continue to be globally fewer rural communities, whilst its was inappropriate, as NewCo should recognized as one of the top wholesale western Canadian-based counterpart be in a position to cover a very operators. Today, the market share of Telus shared this viewpoint, claiming high percentage of the population Omantel MVNOs is around 16 per cent, that the regulation ‘turns already of the Bahamas within 18 months which is the highest MVNO market risky investments into potentially of the allocation of its license and share outside Europe and among the untenable ones’ and would compel recommended that obligation be top five worldwide according to recent it to reconsider the scale and timing eliminated after that period. BTC also international reports. This reflects the of its planned investments. However, requested that NewCo’s finalised significance of our MVNO partners the minister responsible for telecoms, rollout obligations be tied to the in the highly competitive market of Navdeep Bains, disagreed, stating in roaming agreement, so that BTC is not Oman.” MVNOs are service providers yesterday’s ruling that middle-class requested to provide roaming in areas that do not own their own full-fledged and low-income families need access where NewCo is obliged to provide telecommunications network and are to affordable high speed internet and coverage using its own network. known as mobile resellers in Oman. the CRTC decision helps fulfil that goal The two operators clashed on the Instead, they buy services on wholesale by enabling stronger competition. provision of advanced services under basis from Class I operators and ‘The decision strikes the right balance the national roaming agreement, with package services for retail with their between the private sector having CBL requesting that URCA add that own brand name. Justyna Topczewska, incentive to invest and consumers BTC should provide access to all of its senior conference researcher at having a competitive choice,’ his existing and future networks, including Informa Telecoms & Media, said, “I statement added. Bell spokesperson 3G and 4G platforms. For its part BTC am pleased to see that the MVNO Jacqueline Michelis said in an e-mailed questioned the inclusion of any service market in the Middle East is picking response: ‘We’ll abide by the rules and beyond basic call, messaging and up and it is great to see that operators move forward.’ data services, saying that URCA had like Omantel are internationally not provided any evidence to justify recognised for their effort to help this the inclusion of BTC’s ‘premium LTE market to grow.” Omantel is also a NTT Communications network.’ founding partner of the International and Omantel Agree to MVNOx Association (iMVNOx) and is working closely with the association Collaborate on Wholesale Omantel named among to develop best business practices and IP Services top global wholesale commercial models to enable MNO and MVNO partnerships to flourish. NTT Communications Corporation operators (NTT Com), the global data and IP services arm of Fortune Global 500 Omantel, the first integrated telecom leader NTT NTT, +0.04% and telecommunication services provider Bell complying with CRTC’s Omantel, a leading GCC wholesale in the sultanate, has been named wholesale internet policy communication solutions provider, among the world’s top wholesale announced today an agreement to operators at the 2016 Mobile Virtual under federal ruling collaborate on wholesale IP services Bell Canada accepted a at several locations worldwide. This federal decision which agreement creates considerable supports a previous ruling synergies for both companies in several forcing large internet markets around the world in terms of providers to offer access reach, bandwidth capacity and market to their high speed expertise, and builds on a shared infrastructure to smaller commitment to further improving rivals at regulated wholesale the service portfolio available to their prices, the Toronto Sun customers around the world. “We are reports. Canada’s largest delighted to partner with Omantel and communications group look forward to a strong and mutually had asked the government beneficial collaboration,” said Clive to overrule a July 2015 Hamilton, vice president of Network

page_86 WHOLESALE UPDATES

SAMENA TRENDS _ MAY 2016

Services – EMEA at NTT Europe. “NTT division SevMobile Com is a trusted partner that can has attained mobile quickly respond to growth in demand roaming agreements for high performance wholesale for the whole of IP capacity without compromising Russia. SevMobile quality,” Mr. Hamilton added. “We are launched its consumer committed to further extending our packages of SIM cards customers’ regional and global reach with voice and mobile and help them achieve their business internet access on 19 goals,” said Sohail Qadir, Vice President February 2016 and Wholesale Business, Omantel. “As the says it has signed up owner and operator of one of the 5,000 subscribers so region’s largest networks, we strive far. Russia administers to provide services that exceed our it would now offer inclusive roaming the city as part of the customers’ expectations, and we are in 40 destinations, including Turkey, Crimean Federal District (incorporating confident that this collaboration will six Caribbean islands and Switzerland. the Federal City of Sevastopol and help us reach that goal,” Mr. Qadir Vodafone said the offer applies to the Republic of Crimea) although the concluded. This collaboration will 12-month and 24-month Vodafone Crimean peninsula is still regarded expand the reach of NTT Com’s Tier-1 Red and Red Value bundles, and as part of Ukraine by many other Global IP Network and offer Omantel’s includes unlimited calls, texts and countries. None of the main Russian enterprise and wholesale customers picture messages, and a monthly data mobile providers (MTS, MegaFon, more options to connect at several allowance of up to 4 GB. Prices start Beeline and ) operate in Crimea. locations around the world. Similarly, from £18 (€22.86/$26.13) for 500 MB Omantel will provide NTT Com with of inclusive roaming within an overall low-latency backbone capacity that will data allowance of 2 GB. The cost of a EC finds split among further enhance the robustness and plan with 4 GB of roaming data and operators on wholesale reliability of NTT Com’s IP backbone. 12 GB of data in total is £32. Mobile The announcement brings together operators across Europe have been roaming two well-respected companies in addressing roaming with a growing An EC consultation found “differing the telecommunications industry. sense of urgency, as they need to ensure perceptions” among operators about NTT Com was recently named Best they retain users with attractive offers how effectively the wholesale market North American Wholesale Carrier ahead of the elimination of roaming for roaming services is working, as a for the second year in a row at the fees in the European Union from mid- group of smaller European operators Capacity Global Carrier Awards 2015 June 2017. In the UK, Vodafone UK and MVNOs argued significant price and Best Wholesale Operator at the now joins Tesco Mobile, whose new cuts are needed. The Commission 2015 World Communication Awards Home From Home service will remove noted a number of trends, and that (WCA). Omantel was recognized as additional roaming fees this summer, operators were split. Larger players the most valuable brand in Oman and 3 UK. 3 UK has been offering and those with a significant inbound by the annual brand survey of Brand the “roam like home” Feel Like Home traffic volume, argued competition Finance and voted as the Most Trusted service for some time, and provisions a means wholesale roaming prices Brand in the telecom sector in the maximum data allowance of 12 GB for are often below the existing cap. In Sultanate according to the Oman roaming use. Inclusive roaming is also contrast, smaller operators and those Economic Review, a local English provided by operators such as Free with large outbound roaming traffic, magazine. Benefitting from the unique Mobile in France and Telekom Austria’s as well as MVNOs, said the prices geographical location and the political A1, among many others. Vodafone UK available to them on the wholesale stability of the Sultanate, Omantel said it is able to claim some advantages market are at, or close, to the current owns one of the largest submarine over rivals, such as the fact that it cap – and substantially above cost. networks in the middle east with 5 offers 4G roaming in 32 destinations A group of smaller operators and landing stations hosting more than in Europe and 93 worldwide. It also MVNOs earlier published a statement, 10 international submarine cables noted that it does not throttle data warning of negative consequences if connecting east with west. speeds when roaming. It added that the EU does not oversee a reduction its research shows that over 80% of all in wholesale rates. The group brings overseas trips taken by its pay monthly together three of Europe’s smaller Vodafone UK now offers customers are within its new inclusive operators, Free, 3 and Play, as well as free roaming to 40 countries roaming zone. group MVNO Europe, whose members include Liberty Global, Fastweb, Sky, Vodafone UK has become the latest TalkTalk and PosteMobile. The aim of mobile operator in Europe to enable Sevastopol’s Sevtelecom the EC review and legislation is to bring its subscribers to travel abroad down the current regulated wholesale without paying roaming fees. Just users get Russian mobile roaming caps, which were set in 2012. days after the European Commission roaming The cap is the maximum price an further reduced the prices that mobile operator has to pay a visited network operators can charge on top of their In an announcement on its website when its users are roaming abroad. domestic offerings, the operator said dated 29 April 2016, Sevastopol-based Sevtelecom disclosed that its mobile “Without any further steep reduction

page_87 WHOLESALE UPDATES

SAMENA TRENDS _ MAY 2016 of these caps, a large number of mobile by June if it’s to complete the process said John Simon, NBN’s chief customer operators may decide or be forced of obtaining approval from Parliament officer, in a statement. Services will be to impose restrictions to users when and the Council by the current sold by retail service providers (RSPs), roaming abroad through complex deadline of 15 June 2017 for an end but a field force of 600 NBN-trained and unfriendly contractual clauses,” a to all roaming surcharges. Without any engineers will go out and physically statement warned. “This would be a further steep reduction in wholesale connect new customers to the service. disappointing outcome for European roaming price caps, a large number “It will take some time to get all eligible users, and it should be avoided at of mobile operators may decide or premises connected due to the sheer all costs. It would also go against be forced to impose restrictions on size of our 7.69 million km2 country, the European Parliament’s repeated users when roaming abroad through so we ask for patience as our teams calls to end roaming surcharges once complex and unfriendly contractual travel around to install the service,” and for all,” it added. The European clauses, the operators warned. The Simon said. The Sky Muster satellite Commission intends to publish its European Commission has already blasted off in October 2015. It is the wholesale roaming review, and any held a public consultation on first of two satellites which together legislative proposals, not later than 15 wholesale roaming and has said it will have a combined capacity of 135 June this year, to enable sufficient time aims to come with a proposal by Gbps. “Many of the places Sky Muster for the whole process to be completed June. The differences in roaming will connect to have virtually no access with the European Parliament and versus domestic rates and between EU to broadband right now. To go from Council by a 15 June 2017 deadline. countries was flagged already in 2014 nothing to a high speed service will be by EU regulator Berec, before the latest a game changer for these places and roaming regulation was adopted. The the people that live there,” said Jack Mobile operators call for regulator had warned that without Archer, CEO of the Regional Australia EU action on wholesale further intervention in the wholesale Institute (RAI). Sky Muster replaces market, ‘roam like home’ may not NBN’s troubled interim satellite roaming prove tenable. service, which covered 250,000 eligible customers but only had capacity sufficient to connect 48,000. Once that NBN satellite service goes limit was reached, NBN stopped taking on sale new orders. Those those were able to sign up experienced connection Australia’s NBN announced the speeds equivalent to dial-up Internet. commercial launch of its wholesale To ease the pressure, NBN partnered satellite broadband service. Called Sky with Thaicom subsidiary IP Star, which Muster, the network covers 400,000 agreed to provide wholesale and retail people in rural and remote areas, and satellite services covering a further can support connection speeds of up 9,000 rural premises.

A group of smaller mobile operators and MVNOs have called on the EU to work faster on reducing wholesale roaming prices if it wants to achieve the goal of ‘roam like home’ across the union by June 2017. The roaming coalition, which includes operators such as 3, Free and Play as well as industry group MVNO Europe covering together nearly 70 million customers, welcomed the cut from 30 April of retail roaming prices. However, they see a need for a sharp reduction in the to 25 Mbps on the downlink and 5 current wholesale roaming price caps Mbps on the uplink. The commercial in order to allow smaller operators to launch follows successful live trials with compete. In particular, wholesale data 200 households. “The NBN Sky Muster roaming prices need to come down satellite service will make a truly from the current “unjustifiably” high transformational difference to rural level above domestic wholesale rates and remote Australians as we offer in many countries. The group said the some of the world’s fastest and largest European Commission will need to consumer satellite broadband plans to come up with a legislative proposal remote and isolated areas of Australia,”

page_88 SATELLITE UPDATES

SAMENA TRENDS _ MAY 2016

SATELLITE NEWS

Eurovision Leases Capacity for the first two ViaSat 3 satellites, ViaSat is taking on much of the work itself. The across Four Eutelsat company is pursuing an unconventional Satellites approach to satellite procurement, opting The European Broadcasting Union (EBU) to build the payloads for ViaSat 3 in- signed new contracts for capacity on four house in its own facilities. This is driving Eutelsat satellites. The capacity will be R&D expenses up by approximately 50 used to carry live Eurovision broadcasts percent, with aeronautical being the other of flagship sporting events, including all main area of increased R&D investment. major European football championships “We believe it’s extremely difficult to and this year’s most popular summer [obtain] the kind of technology needed sports events. Using the Eutelsat 65 to reach this kind of productivity without West A, Eutelsat 12 West B and Eutelsat the level of vertical integration we have 5 West A satellites, the EBU will extend its achieved,” Mark Dankberg, chairman SATELLITE footprint to new regions, notably Africa with a full-time lease for capacity. The UPDATES new leases coincide with the renewal and expansion of capacity contracted by the EBU on the Eutelsat 7B satellite.

ViaSat Boosts R&D to Build ViaSat 3 Payloads in- House ViaSat expects to spend close to $100 million on Research and Development (R&D) throughout its fiscal year 2017 dedicated to developing the high capacity ViaSat 3 satellite system. The Ka-band satellite system, first announced in December last year, consists of three and CEO of ViaSat, said May 24 during terabit-level spacecraft, with the first a conference call accompanying the covering the Americas and the second company’s 2016 fourth quarter and year covering Europe, the Middle East and end financial results. “It requires close Africa. While Boeing is the manufacturer

page_89 SATELLITE UPDATES

SAMENA TRENDS _ MAY 2016 coupling of multiple technology and testing in preparation for launch. satellite news gathering facilities, such business domains in ways that are ViaSat is also close to completing as outside broadcast vehicles, across not practiced by incumbent satellite insurance at what Dankberg described the entire country. David Williams, operators, satellite manufacturers as “favorable rates.” Having switched CEO of Avanti, hailed the deal as or other members of the existing from launching on the yet-to-fly significant not only for Sematron, business ecosystems. We started this SpaceX Falcon Heavy, Dankberg but also as a major breakthrough journey years ago, and we’ve got a previously mentioned launching with for “Ka-band satellite technology systematic approach to burning out Ariane 5 as improving insurance costs. to become mainstream in outside technical and systems risks.” Boeing The satellite is expected to create is providing the payload framework lots of new business opportunity by for ViaSat to build the payloads into. providing growth capacity. During Dankberg has previously mentioned fiscal year 2016, ViaSat reported ViaSat’s work building payloads with record revenue of $1.4 billion, along for Iridium Next with record awards of $1.5 billion. Two as providing valuable experience. In of the company’s divisions, satellite a previous interview with Via Satellite, services and government systems, he described mass-producing the saw record quarterly highs of $145 payloads as akin to achieving the million and $164 million respectively. economies of scale pursued by Low Commercial networks declined 26 Earth Orbit (LEO) systems, but without percent for the quarter year over the need for production of other year, which ViaSat attributed to the technologies such as propulsion winding down of work with Australia’s or solar arrays. “We just recently NBN Co. ViaSat’s consumer subscriber opened our new Arizona facility that count grew 2 percent year over year broadcasting.” In an interview with Via includes a clean room high bay for to 697,000, and the company’s total Satellite last year, Williams hinted at assembling two concurrent ViaSat number of connected commercial video becoming a larger opportunity 3 payloads. Initial market reactions aircraft reached 476. Total revenues for Avanti, which otherwise primarily to the ViaSat 3 constellation have for the quarter were $372 million. focuses on broadband services. been very encouraging. We continue Dankberg said ViaSat intends to offer to make progress with multiple plans and services to subscribers with potential partners as well as users for ViaSat 2 that allocate more bandwidth SES Gets Contract the system,” he said. Dankberg said per subscriber than provided today. Renewal from iN payload flight hardware builds will be Though subscribers shifting from Demand for HD Sports capitalized investments, while pre- ViaSat 1 to ViaSat 2 may cause the flight hardware builds and tests will former satellite’s fill rate to decline, Broadcasts be expensed. He said that because he said the combined number of SES customer iN Demand has renewed pre-flight hardware expenses are subscribers is expected to grow a capacity agreement to continue the “front loaded” in the overall ViaSat meaningfully. Dankberg dismissed delivery of its High-Definition (HD) 3 program, the company will be concerns that weakness seen in the professional sports packages and incurring a large portion of these costs revenues of other Fixed Satellite Pay-Per-View (PPV) events to cable in fiscal year 2017. ViaSat is bearing Services (FSS) operators might audiences across the Americas. iN more of the R&D costs associated with translate to ViaSat as well. Instead he Demand delivers content via PPV, new satellites than a typical company pointed to massive jumps in capacity Video On Demand (VOD) and digital because of its much more involved matched with concomitant drops platforms. The company has retained approach. Dankberg stressed that in pricing as creating a much larger two C-band transponders on the SES this more invested strategy is critical addressable market, thus justifying 3 satellite, located at the center of the to bringing improved bandwidth future investments. operator’s orbital arc over the United and coverage at an accelerated rate. States. iN Demand uses four full- ViaSat 2, the company’s soonest to time transponders aboard three SES launch spacecraft, is now within seven Avanti Awarded Long satellites (SES 3, AMC 10 and AMC 11) months of its Ariane 5 mission. The Term Contract from to deliver sports and entertainment next generation High Throughput programming to audiences across the Satellite (HTS) has roughly twice Sematron, Will Support Americas. SES supports iN Demand’s the capacity and seven times the Broadcast with Ka-band PPV business and the delivery of coverage of its predecessor, ViaSat 1, Avanti Communications has entered a professional sports packages, including deepening the company’s presence new, long-term contract with Sematron. Major League Baseball (MLB), the in North America and expanding to Based in the United Kingdom and National Basketball Association (NBA), include parts of Latin America down operating globally, Sematron is a the National Hockey League (NHL), to Colombia and Venezuela, along content delivery company specializing soccer, boxing, Mixed Martial Arts with transatlantic coverage to Europe. in IP connectivity, video broadcast and (MMA), wrestling and entertainment Dankberg said the construction of distribution. With access to dedicated events to more than 60 million digital ViaSat 2, which Boeing is also building, capacity across the entire Avanti cable households across the region. is progressing steadily. The satellite is Hylas fleet of satellites, Sematron almost fully integrated, and will soon will provide a major U.K. national undergo thermal and vibrational broadcaster with high speed Ka-band

page_90 SATELLITE UPDATES

SAMENA TRENDS _ MAY 2016

SpeedCast Upgrade to can be cascaded to expand support Iridium Offers Alternative for additional (more than eight) Double -voda- components, such as modulators, GPS Service Using its fone’s Network Capacity demodulators, and modems. Own LEO Constellation in Solomon Islands Iridium has launched a new Position, Bmobile-vodafone Solomon Islands Tunisia’s ONT Strength- Navigation and Timing (PNT) has selected SpeedCast International capability called Satellite Time and to upgrade its cellular backhaul ens Agreement with Eu- Location (STL) that can substitute network to support 3G data services in telsat or augment traditional location- based technologies. STL technology the Solomon Islands. The new network The Tunisian broadcasting corporation deployed through the operator’s will double the current capacity to ONT has signed a multi-year contract network of 66 cross-linked satellites support 2G and 3G voice and data with Eutelsat to broadcast its new in Low Earth Orbit (LEO) and in end- services. SpeedCast is deploying subscription-free TV platform across user receivers can verify GPS, Glonass, this service through O3b Network’s North and West Africa. The company Galileo, and other navigation services high throughput, low latency satellite is consolidating around 10 Tunisian and, if needed, can fill in for them network, which has been used for all channels in a single package on data services on the island since 2014. Eutelsat 7 A West, located at the The solution will support the upgrade 7/8 degrees west orbital slot. The of existing 2G services to a new spacecraft’s footprint also enables the mobile 3G network for the three main ONT to extend reach to West Africa. urban areas of the Western Province “The launch of this national project is a on the Solomon Islands, known for vehicle for Tunisia’s sovereignty in the their fishing, factories, tourism and field of broadcasting. Viewers will be logging trades. This network upgrade able to enjoy a diversified and quality comes as the demand for new 3G data line-up of Tunisian content,” said services in the Solomon Islands has Tunisia’s Minister of Communication should they become compromised. increased significantly over the last Technologies and Digital Economy, Iridium says STL can protect, toughen year. SpeedCast’s cellular backhaul Noomen Elfehri. ONT also leases and augment traditional GPS solution will enable bmobile-vodafone capacity on three other Eutelsat technology by providing a position or to respond to increasing data satellites, Eutelsat 12 West B, timing source when GPS signals are requirements, as well as form a base and Eutelsat 36B, for newsgathering degraded or unavailable. It can also for future network upgrades, which are and broadcasting to the general provide an alternative source of time expected in order to keep up with the public. increasing cellular data traffic. to check the integrity of a GPS signal, and works indoors, according to the ’s Jet Connex company. STL fits on a chip set about NovelSat Releases N+1 Makes Strides Toward the size of a postage stamp, and can Redundancy Family of be easily embedded into devices of all Business Aviation Launch kinds. The technology’s signal strength Switches Inmarsat’s broadband In-Flight can help make GPS systems more NovelSat has announced a new series Connectivity (IFC) service is moving difficult to spoof, because signals are of hot standby redundancy switches closer to launch. Rockwell Collins transmitted through Iridium’s satellite designed to boost the reliability of any announced it has validated the constellation with a unique code to of its satellite transmission solutions. network’s performance as well as a each position on the ground. The code The new series includes the NovelSat number of its own value-added services can be independently authenticated, NSR9100 (1U) switch and the NovelSat and Gogo has added the Ka-band proving that a device is located in NSR9800 (3U) switch. The NovelSat connectivity service to its portfolio a specific place in the world, thus N+1 Redundancy Switch solution for business aircraft operators flying enabling “location aware” applications enables hot standby redundancy for globally. Inmarsat expects Jet ConneX that only allow operation or access if up to eight NovelSat modulators, will be available globally in mid-2016, the user is in the location expected. demodulators or modems. The N+1 and will support high-speed Internet Iridium is working with Satelles, a switch supports RF switching as well via Inmarsat’s Ka-band Global Xpress division of iKare Corporation, as as terrestrial interfaces switching. It fleet. Those who select the Jet ConneX its primary technology partner to continuously monitors the health network under Gogo will be able to deliver this solution through Iridium of protected units, and in case of an integrate with other services, including paging channels, which are able to alarm, copies the configuration from other equipment, network services and reach small, low-cost receivers in the unit reporting the alarm to the in-flight entertainment. Jet ConneX most environments. Satelles provides redundant unit and automatically supported applications include: technology and services to companies replaces the faulty unit’s functions streaming TV in real time, high-speed that are commercializing this capability with the spare (+1) unit. The NovelSat broadband Internet access, video to protect assets, authenticate users, NSR9100 redundancy switch supports calling and conferencing, Voice over or do other functions reliant on GPS configurations starting at 1+1 and a IP (VoIP), SMS messaging, flight deck time and location. To date, Iridium single NSR9800 switch can support up and cabin crew applications, among has successfully demonstrated its to 8+1 configuration. The two units others. STL solution across multiple sectors

page_91 SATELLITE UPDATES

SAMENA TRENDS _ MAY 2016 including the military, academia launched SES 9 satellite. SES and protected cloud data services. “We and commercial applications. This Telkom will co-market SES 9 capacity feel, at SpaceBelt, that human error technology is available today and will over Indonesia, allowing customers will never leave. It will never disappear, be supported by Iridium Next, Iridium’s from across all market verticals, so in order to address the needs of next-generation global satellite including video, cellular, broadband, enterprises, we need to create an entire constellation, which is scheduled for maritime and aeronautical, to use system that is uniquely and exclusively completion by late 2017. capacity from the satellite within the just for the enterprise, can protect the country. SES 9 will be collocated with data, and supply a dedicated point-to- SES 7, operating in the arc around 108.2 point and mesh network around the Harris Receives $384 degrees east, and has a dedicated world,” he said. Cloud Constellation Million Space Communi- beam that comprehensively covers the started designing SpaceBelt about cations Contract Exten- Indonesian archipelago. Scheduled three years ago. Sobhani said the to enter service mid-2016, SES 9 will company sought not to “overbuild” the sion from NASA deliver high-powered capacity to the project and instead focus on creating NASA has extended Harris Asian markets using 57 high-power a simpler system that is more robust. Corporation’s five-year Space Ku-band transponders (81 × 36 MHz The initial constellation is to feature Communications Network Services transponder equivalents). The Boeing- eight data-center-type satellites that (SCNS) program contract through two built satellite is SES’s latest and largest can grow modularly to scale with one-year options, adding $384 million spacecraft for the Asia-Pacific region, the evolution of cloud storage and of contract ceiling. Harris will continue providing both replacement and computing technology. Sobhani said to support SCNS, which provides incremental capacity. the spacecraft will use inter-satellite most of the communications and links to communicate with each other tracking services for a wide range of and eliminate the need for Points of Earth-orbiting spacecraft, such as the Startup CEO Lays Out Vi- Presence (PoPs) on the ground. “[Our International Space Station (ISS), the sion for Constellation of network] can actually cross-strap any Hubble Space Telescope, and Earth Cloud Data Centers Radio Frequencies (RF) that it sees Observing System (EOS) satellites. As into the SpaceBelt network without prime contractor for SCNS, Harris also Cloud Constellation, a satellite industry having to force that source to touch provided communications support to startup, is designing a network of Low the ground or interconnect using NASA’s successful Orion Exploration Earth Orbiting (LEO) data centers for Earth stations or hops to do that,” he Flight Test-1 Mission in December cloud service providers with needs for explained. “Our system has the ability 2015, which marked a critical step highly secure communications. Called to accept any RF signal, and allow it to in NASA’s return to human space the “SpaceBelt,” Cloud Constellation uniquely or privately speak to any other exploration. Harris received the new is in discussions with four satellite RF signal that is also connected to the SCNS award during its third quarter of manufacturers to produce the SpaceBelt. That allows for someone on fiscal 2016. network on a timeline that would one end of the world that might be see the first spacecraft reach orbit by operating in Ka-band to communicate late 2018. In March this year Cloud with someone in C-band on the other Telkom Indonesia to Co- Constellation completed a Series side of the world.” Sobhani said Cloud Market Capacity from A investor round to start funding Constellation terminals designed to SES 9 Satellite the constellation. According to the work with the SpaceBelt would be company, the proposed constellation located at the sites of enterprise or PT Telekomunikasi Indonesia (Telkom) will cost $460 million to complete, government customers, their receiving and SES have entered a new strategic which the company will seek to raise offices and remote sites, and would partnership whereby Telkom will through a combination of investor be able to communicate without any provide connectivity to the Indonesian capital and debt financing. Scott requirement to touch or communicate market via capacity on the recently Sobhani, CEO and co-founder of with the Internet, leased-lines or other Cloud Constellation, told Via Satellite infrastructure. The terminals will be that the goal of the company is to certified to United States defense create a worldwide cloud storage military standards for security. By networking capability that does not keeping customers’ data in space, rely on lease lines, Internet cable, or Sobhani said SpaceBelt obliges any other network to function. The jurisdictional laws of governments constellation would serve enterprise and government customers needing to transport sensitive and mission-critical information that requires high levels of security. Citing cybersecurity risks with common ground infrastructure, and a “pandemic crisis” level of surreptitious cyber theft and monitoring by hackers and other malefactors, Sobhani said Cloud Constellation felt creating its own system was the best way to ensure

page_92 SATELLITE UPDATES

SAMENA TRENDS _ MAY 2016 that desire to keep certain data within probably going to hit an exabyte in YahClick broadband service to 19 specific national or supranational space by year five, and many exabytes new markets in Africa during the boundaries. He described these thereafter,” he said. first half of 2017. Tele10 has been jurisdiction laws as one of the biggest serving the East African region for 20 challenges faced today by cloud service years by providing diverse solutions providers. Keeping the infrastructure AsiaSat to Broadcast including pay-TV, radio broadcasting, for these customers in space would be 4KUniverse on AsiaSat 4 and Information and Communication akin to having it in international waters 4KUniverse, a new general Technology (ICT) services. In 2017, under the international space treaty, entertainment Ultra-HD channel, will the company will grow its portfolio to Sobhani said, thus guaranteeing that be available on AsiaSat’s “4K-Sat” offer the YahClick Ka-band broadband data only touches land in the regions Ultra-HD channel by mid-May on the products, services and value-added it is allowed. Sobhani said the Series AsiaSat 4 satellite. The channel features solutions to its existing customer base A round raised $5 million dollars, movies, TV series, documentaries and as well as new customers. As Yahsat which was enough to get to the point live sports filmed in 4K resolution. works toward expanding its coverage of procurement. While admitting 4KUniverse is one of the first premium area across the African continent, the $5 million is a ways off from what is general entertainment 4K TV channels company is in talks with local service ultimately needed, he said the funding available to the global marketplace. providers to reinforce the presence of brings the company closer to the total The channel is making content YahClick and strengthen its customer amount it needs before tapping Export available to Direct-to-Home (DTH) care. Credit Agencies (ECA) for support. and Internet Protocol Television (IPTV) “We only need $190 million more to operators today, with plans to launch Yahsat, Tele10 to actually fulfill our equity target. The a full 24/7 Ultra-HD channel in Asia rest is to be raised with debt and the during the fourth quarter of this year. collaborate on satellite debt should be something to the effect broadband plan; of any number of COFACE or EDC or Ex-Im financing,” he said. Sobhani said Turkey to Launch New Facebook plots sub- Cloud Constellation boiled the cost Telecommunications Saharan push of its program from $4 billion to its UAE-based satellite broadband $460 million goal. Working with more Satellite into Orbit (Ex- operator Yahsat has signed a limited resources forced the company clusive) Memorandum of Understanding (MoU) to plan in a deliberate and more Turkey will launch a new with African broadcaster Tele10 Group, efficient manner, he said. “We don’t telecommunications satellite TURKSAT to discuss possible collaborations think that would have been possible 6A into the orbit by late 2019, Turkey’s for improving internet connectivity with a series of deep pocket investors Ministry of Science, Industry and in Rwanda, Burundi and the eastern from Silicon Valley trying to do it Technology told Trend. Turkey has no parts of the Democratic Republic of because we’ve seen what comes out financial difficulties for launching the Congo (DRC). The MoU comes ahead of that: lots of satellite constellations new telecommunications satellite, of Yahsat taking delivery of its third blanketing the Earth, wildly over- the ministry said. The first Turkish satellite, Al Yah 3, which will lead to covering and trying to recover from reconnaissance satellite RASAT was the rollout of YahClick – the company’s lots of interference issues. We see that launched into the orbit in 2011. Turkey satellite broadband service – to 19 as being enabled by massive amounts launched its second satellite Gokturk-2 new African markets during the first of money thrown at the problem,” he from the Chinese Jiuquan satellite- half of 2017. David Murphy, Yahsat’s said. Cloud Constellation is aiming launching center on December 18, chief commercial officer, commented: for a 24-month delivery schedule for 2012. Currently, the satellite is used for ‘At Yahsat, we are dedicated to serving its satellites, with launches placing defense purposes. underserved and remote areas by spacecraft in orbit by the end of providing better connectivity to new 2018, followed by service starting in and existing internet users. To further 2019. Sobhani said the company has Yahsat Discusses our commitment to the region, we customers that are interested in using YahClick Opportunities have entered an MoU with Tele10 to SpaceBelt, and that the entire system with Tele10 for Rwanda, discuss the provision of high speed should be self-funding by its second connectivity to three of Africa’s fast- year of service. When launching the Burundi and East DRC emerging markets, Rwanda, Burundi system, he said no more than half the Yahsat has signed a Memorandum and East Democratic Republic of fleet launch requirement would sit of Understanding (MoU) with Tele10 the Congo’. In other satellite-centric on any rocket, and that the company Group, a regional broadcast and news, Eutelsat Communications and plans to use multiple launch vehicle Internet Service Provider (ISP), to Facebook have selected Hughes types to reduced risk. If SpaceBelt discuss collaborations for improving Network Systems to supply its Jupiter proves successful, the system is Internet connectivity in Rwanda, System as the technology platform designed to grow and increase in Burundi and East Democratic for the satellite broadband services orbiting storage capacity. Sobhani said Republic of the Congo (DRC). The that the two companies are preparing Cloud Constellation would plan to put MoU comes ahead of Yahsat taking to launch in sub-Saharan Africa. With up the same number of satellites every delivery of its third satellite, Al Yah 3, high-gain Ka-band spot beam capacity year to scale with demand. “We plan from manufacturer Orbital ATK. The provided by Spacecom’s AMOS- to put up petabytes and petabytes of launch of Yahsat’s upcoming satellite 6 satellite, Eutelsat and Facebook data each year, and my objective is that will see the roll out of the company’s have noted that they are assembling that would exponentially grow. We are

page_93 SATELLITE UPDATES

SAMENA TRENDS _ MAY 2016 a dedicated infrastructure that will “Doosti (friendship)” are three other System, which Eutelsat purchased, extend cost-effective broadband to satellites which are also under includes three gateway stations, areas beyond reach of fixed and mobile construction and will be soon sent to two centralized data centers, a terrestrial networks. The AMOS-6 the space. Iran successfully launched comprehensive network management satellite is due to enter service in early into orbit its first indigenous data- system and an initial number of user 2017. processing satellite, Omid (Hope), terminals. Facebook and Eutelsat are back on 2 February 2009. As part of assembling a dedicated infrastructure a comprehensive plan to develop its for cost-effective broadband to areas International Space Sta- space program, Iran also successfully of Sub-Saharan Africa beyond reach of tion Completes 100,000 launched its second satellite, dubbed fixed and mobile terrestrial networks. Orbits Rassad (Observation), into the earth’s The companies plan to use high- orbit in June 2011. Rassad’s mission gain Ka-band spot beam capacity on The International Space Station (ISS) was to take images of the earth and Spacecom’s Amos 6 satellite, which completed its 100,000th orbit on transmit them along with telemetry is due to enter service in early 2017. May 16, NASA announced yesterday. information to ground stations. The For Facebook, the system will support The orbiting research platform country’s third domestically-built its Express Wi-Fi project, intended to has travelled more than 4.2 billion Navid-e Elm-o Sanat (Harbinger of expand connectivity to underserved kilometers (2.6 billion miles) while Science and Industry) satellite was sent locations by working closely with circling the planet — a distance almost into orbit in February 2012. In January operators, Internet Service Providers equivalent to the space between Earth 2013, Iran sent a monkey into space (ISPs), and local entrepreneurs. Eutelsat and Neptune (4.7 billion kilometers, aboard an indigenous bio-capsule plans to employ the system as a key or 2.9 billion miles), or 10 round trips code-named Pishgam (Pioneer). And platform to drive growth of premium from Mars to Earth. In addition to later in December 2013, the country’s consumer and professional Internet research onboard the station, the ISS scientists successfully sent a monkey, connectivity services in Sub-Saharan has turned into a primary avenue for called ‘Fargam’ or Auspicious, into Africa. Hughes Jupiter System includes CubeSats and other small satellites space aboard Pajoheshan (Research) lights-out operation, an enhanced to reach Low Earth Orbit (LEO). indigenous rocket and returned the air interface for bandwidth efficiency, Shortly after the station reached the live simian back to earth safely. - and high-throughput terminals, to new milestone, astronauts deployed Tasnim enable high capacity and efficiency for several types of CubeSats from the satellite broadband implementation. Kibo lab module’s airlock. More The foundational technology is the CubeSats are slated for deployment Orders New Jupiter System on a Chip (SoC), a through Wednesday, contributing Communications custom-designed Very Large Scale to a wide variety of research from Satellite from SSL Integration (VLSI) processor employing students and scientists. The first a multi-core architecture and enabling component of the ISS, the Zarya cargo Intelsat has selected Space Systems more than 100 Mbps of throughput on module, launched Nov. 20, 1998. Most Loral (SSL) to provide a new satellite every terminal in the Jupiter family. recently, Bigelow Aerospace launched for broadband networking and video a commercial module known as the distribution services in Africa, Europe, Bigelow Expandable Activity Module the Middle East and Asia. The new EE inks satellite mobile (BEAM), which could pave the way for satellite, Intelsat 39, is a replacement backhaul deal with other habitats in space. for the satellite, which launched in 2001 and was also from Avanti SSL. Intelsat 39 will have both C-band Avanti Communications Group, which Iran to Launch Mesbah and Ku-band transponders and will provides satellite data communications Satellite Soon: Official be located at the 62 degrees east services in Europe, the Middle East and longitude position. The spacecraft will Africa, has announced that it has won Head of the Iranian Space Agency be based on the SSL 1300 platform, a contract to supply UK mobile giant (ISA) Mohsen Bahrami announced on and will use both electric and chemical EE with satellite capacity for cellular 10 May that the country will launch propulsion for orbit raising, followed backhaul. Avanti will connect a number the indigenous “Mesbah” satellite by all-electric station keeping once in of cell sites across the UK to EE’s into orbit in the near future, adding orbit. network using the HYLAS 1 and 2 that a new version of the satellite is satellites, to provide communications also under construction. Addressing in remote areas and increase network a specialized meeting of high-ranking Facebook, Eutelsat resilience. The first phase of this multi- officials of ISA in Karaj, west of Tehran, Tap Hughes for Jupiter year contract has an initial value Bahrami said that the Mesbah2 of USD29 million, plus options to (Lantern) and “Nahid” satellites are System to Provide double the capacity. Mansoor Hanif, under construction. He added that the Internet in Africa Director of Radio Access Networks at domestically-made Mesbah satellite Eutelsat and Facebook have selected EE, commented: ‘We are delivering a is ready to be launched into the orbit. Hughes to supply its Jupiter system highly resilient, truly nationwide 4G Referring to Iran’s achievements in as the technology platform for the network, and Avanti will play a key part the fields of satellite and satellite satellite broadband services that both in providing resilience and extending carrier, Bahrami announced that companies are preparing to launch this network into rural areas.’ “Amir Kabir”, “Zafar (victory)” and in Sub-Saharan Africa. The Jupiter

page_94 SATELLITE UPDATES

SAMENA TRENDS _ MAY 2016

Inmarsat Revenues Liquid Telecom Leases connectivity for managers and crew. According to Thuraya, the agreement Down for Q1 2016 Capacity on Eutelsat with Elcome follows an increase in Inmarsat revenue for the first quarter 7B for Broadcast and regional customers signing up for of 2016 was $298.6 million, down 2 Enterprise Services satellite services. “Our expanding percent or $6.2 million, from the first Liquid Telecom has entered a multi- maritime portfolio requires support quarter of 2015. Revenue in maritime year agreement with Eutelsat to use whenever and wherever a vessel needs and enterprise services decreased by multiple transponders on the Eutelsat it. Our maintenance partner will store $6.7 million and $4.9 million, while 7B satellite. The independent data, spare Thuraya equipment for vessels government and aviation increased by voice and IP provider has purchased in locations that are difficult for our 1.9 million and $4.1 million, respectively. the capacity to support both enterprise partners to reach. In the long-run, this “Many of our markets face short-term solutions and broadcasting services new agreement will save our partners headwinds which intensified in the first for pay-TV. Satellite complements time and money,” said Keith Murray, quarter, leading to a softer revenue Liquid Telecom’s pan-African terrestrial product manager for maritime at performance than expected, although network and enables the company Thuraya. we remain highly competitive in each to provide seamless services across of our core markets, growing market Africa. Liquid Telecom is the broadcast share and diversifying the business to Eutelsat 65 West A now service provider for Africa’s largest plan,” said Rupert Pearce, Inmarsat’s new pay-TV provider, KweséTV, which fully functional CEO. Inmarsat said the foundations has exclusive rights for major sporting The EUTELSAT 65 West A satellite, for future double-digit revenue events including the English Premier launched on 9 March, is now fully growth are largely established, with its League Free-to-Air (FTA) and the NBA powered up and ready for service Global Xpress (GX) High Throughput League. For broadband customers, across Brazil and Latin America. The Satellite (HTS) network now globally Liquid Telecom’s satellite service satellite is designed to target markets operational. The company still offers speeds of up to 50 Mbps. across Latin America and its Ku-band anticipates annual GX revenues of Liquid Telecom keeps 97 percent of payload is optimized for direct-to- $500 million by the end of 2020, its satellite traffic within Africa, with home (DTH) reception. It also features though this is to be updated in due traffic outside the continent routed via transatlantic C-band coverage for course for revenues from I-5 F4 when its hub in London. Customers include cross-continental video contribution the business plan for the un-launched Africa’s largest Mobile Network and distribution. Eutelsat is anchoring satellite is confirmed. Inmarsat said Operators (MNOs), Internet Service EUTELSAT 65 WEST A in the Brazilian that, for operational reasons, the Providers (ISPs), corporations, financial broadcasting market with an antenna increase in GX revenues is proceeding institutions, governments and seeding program designed to ensure more slowly than previously expected. others. Liquid Telecom uses satellite that pay-TV and cable operators Combined with market challenges, to connect a growing number of across the country are equipped to the company is revising its guidance enterprise customers located in areas receive channels delivered by the new downward by $50 million for 2016 where fiber is not available. satellite. Already Eutelsat and Space to between $1.175 billion and $1.25 Systems Loral (SSL) have successfully billion. “Whilst in the near term carried out transmissions in Extremely business growth will continue to Thuraya Teams with High Frequencies (EHF) using an be challenging in choppy markets, experimental payload flown into space we remain very well positioned for Elcome International for on the craft. In order to strengthen future growth and diversification, and Maritime Maintenance support for clients in the Americas, indeed I remain confident that the in GCC Region Eutelsat has opened a network foundations that we are establishing Thuraya has entered an agreement operations centre (NOC) in Santana will deliver the expected medium term with Dubai-based marine solutions do Parnaiba in the state of Sao Paulo. growth,” said Pearce. provider Elcome International to offer The teleport hosting the NOC is also technical support to the operator’s equipped with resources for telemetry, Delta Ups 2Ku Commit- service partners throughout the command and ranging (TCR) of Gulf Cooperation Council (GCC) and EUTELSAT 65 West A and will include ment to 600 Aircraft Egypt. The new contract enables radiofrequency and video monitoring Delta Air Lines has increased its faster response times to requests from tools for service quality assurance of commitment to Gogo’s satellite- service partners needing maintenance C, Ku and Ka-band services provided based 2Ku In-Flight Connectivity (IFC) work, fault rectifications, and the through seven Eutelsat satellites technology to more than 600 aircraft installation of Thuraya maritime providing coverage of the Americas. from 250 aircraft committed last year. equipment. At agreed rates, Thuraya’s The space-based solution went live service partners can call on Elcome on its first aircraft for Aeromexico’s engineers to avoid extensive downtime fleet just last month. 2Ku installations in the event of equipment problems. have already started on the 737-800 Thuraya reports its maritime business and A319 fleets, and Delta will retrofit is growing substantially. Last year additional fleets with the new system. the company expanded its maritime The airline will operate more than 35 product portfolio with Atlas IP, a aircraft with 2Ku by the end of 2016. terminal enabling Internet access and

page_95 #304, Alfa Building, Knowledge Village, PO. Box: 502544, Dubai, UAE. Tel: +971-4-364-2700 | Fax: +971-4-4369-7513

Follow Us: