Volume 06 _ Issue 09 _ Sept 2015 SAMENA TRENDS EXCLUSIVELY FOR SAMENA COUNCIL'S MEMBERS BUILDING DIGITAL ECONOMIES

A SAMENA Telecommunications Council Newsletter

Articles

Emerging trends in regulatory and investment landscape in the regional markets Page 54

The role of telecom operators in building digital ecosystems Page 60

Recent IoT investments show telecoms operators (gradually) moving up the value chain Page 71

Exclusive Interview Michel de Rosen Chairman & Chief Executive Officer Eutelsat Communications Page 04

Emerging trends in regulatory and investment landscape in the regional markets

www.samenacouncil.org SAMENA CONTENTS VOLUME _ 06 _ISSUE _ 09_sept 2015 TRENDS

The SAMENA TRENDS newsletter is wholly REGIONAL & MEMBERS owned and operated by The SAMENA UPDATES Telecommunications Council FZ, LLC 12. Members news (SAMENA Council). Information in the newsletter is not intended as professional services advice, and SAMENA Council 20. Regional news disclaims any liability for use of specific information or results thereof. Articles REGULATORY & POLICY and information contained in this publication are the copyright of SAMENA UPDATES 27. Regulatory news Telecommunications Council, (unless otherwise noted, described or stated) and cannot be reproduced, copied or 33. A snapshot of regulatory activities in printed in any form without the express SAMENA region written permission of the publisher. 42. Regulatory activities beyond the The SAMENA Council does not necessar- SAMENA region ily endorse, support, sanction, encour- age, verify or agree with the content, 54. Emerging trends in regulatory and comments, opinions or statements made in The SAMENA TRENDS by any entity investment landscape in the regional or entities. Information, products and markets services offered, sold or placed in the newsletter by other than The SAMENA WHOLESALE UPDATES Council belong to the respective entity 56. Wholesale news or entities and are not representative of The SAMENA Council. The SAMENA EDITORIAL Council hereby expressly disclaims any 03. TECHNOLOGY UPDATES and all warranties, expressed and im- 60. The role of telecom operators in plied, including but not limited to any building digital ecosystems warranties of accuracy, reliability, mer- chantability or fitness for a particular 62. Technology news purpose by any entity or entities offer- ing information, products and services in this newsletter. The user agrees that The REGIONAL 71. Recent IoT investments show telecoms SAMENA Council is not responsible, and operators (gradually) moving up the shall have no liability to such user, with PERFORMANCE value chain respect to any information, product or service offered by any entity or entities 10. Regulatory Trends and ICT SATELLITE UPDATES in this newsletter. The SAMENA Coun- 73. Satellite news cil’s only liability in the event of errors Adoption shall be the correction or removal of the erroneous information after verification.

Editor-in-Chief Bocar A. BA

Contributing Editors Izhar Ahmad Javaid Akhtar Malik

Contributing Members Analysys Mason PTCL Strategy&

Publisher SAMENA Telecommunications Council

Subscriptions [email protected] 04. Advertising [email protected] EXCLUSIVE Legal Issues or Concerns [email protected] INTERVIEW SAMENA TRENDS Michel de Rosen [email protected] Chairman & Chief Executive Officer Tel: +971.4.364.2700 Eutelsat Communications

© 2015 - All rights reserved. SAMENA TRENDS is a trademark of SAMENA Telecommunications Council. EDITORIAL

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Emerging trends in regulatory and investment landscape in the regional markets

Throughout 2015, significant investments have Encouragingly, the fact that nearly 75% of the been made on infrastructure development; a trend countries in the world have either adopted or that would continue well into the year 2016, when are expected to set new digital policies, shows much in-progress work on M2M development, Big regulators know what ICTs are capable of achieving. Data, 5G, and Cloud would also surface. Broadband Therefore, their roles must be understood. service providers will continue to aggressively maintain their hold on 3G and 4G/LTE, with some Regulators are also realizing that flexible, relevant, contributing directly to the development of 5G. and competition-friendly regulatory frameworks have to be put in place in what is increasingly Capex requirements through 2015 have remained being referred to as the “fourth-generation of high and would exceed US$350 by the end of the regulations”. In their efforts, much is being done year. In part, this continues to be supported by the on spectrum, with the three key stakeholders fact that regulatory authorities have increasingly (equipment manufacturers, telecom operators, been focusing on aligning themselves with the and regulators themselves) working together on emerging industry trends, so that the right type ways to accommodate new means and frequency and amount of regulation, including regulatory requirements for broadband access. In this context, incentives, could be provided to market players. old methods of assigning spectrum are blurring and Industry stakeholders indeed understand now that new licensing conventions are emerging, developed ours is a world of distinct telecom platforms and through unprecedented collaborative work. individual networks are now gradually transforming into converged networks, with connectivity being In an emerging business trend where customers are transformed into computing. now paying with data than currency, the challenge of striking balance between data collection, Given the inevitability of their presence, issues availability, and protection has become great. challenging the policy and regulatory leadership are Thus regulators, as other stakeholders within the indeed many. These include but are not limited to industry, are placing great focus on understanding understanding emerging market dynamics, planning the role, use, implication, and analysis of Big Data. proactive and self-regulatory measures, ensuring As a consequence, focus on consumer and citizen public safety through integrated emergency security both online and in the physical world using response systems and through supervised use telecom technology has begun to gain ground. This of telecom technology, facilitating strategies to is especially happening when the scale of mobile help operators mitigate quality of service issues; wallet adoption is brought to the view. meeting and exceeding broadband development goals, internally transforming the regulatory culture, However, the most important new regulatory trend, collaborating with other government bodies to which SAMENA Council views as being second develop applications that increase efficiency of only to the willingness to understand the market government services, connecting remote areas, and trends and dynamics, is the fact that regulators educating and empowering users and consumers, have become very keen on monitoring the to name a few among a host of challenges and implementation of broadband plans and strategies, responsibilities that are being discussed within the especially on programs that have a wide scope and policy and regulatory circles. thus are difficult to manage or monitor.

Understanding what is happening in the market and Improved co-ordination and more refined how ICTs are shaping the world, opening up new regulatory visions with regard to viewing broadband opportunities for consumer-centric innovation, and as a critical factor that determines success in the aiding improved and simpler ways of doing things digital economy are required for adopting effective faster while supporting a new set of interactions, measures on making more spectrum available for are among the highest priorities that many broadband access. And this the third most visible regulators have already understood. Many such regulatory trend that has surfaced in the regulatory progressive regulators are also becoming aware mind, and one which SAMENA Council considers of how cloud is becoming the next big thing and among the most critical of modern-day needs of how the reality of artificial intelligence is dawning the industry. upon us. Thus setting new conditions for ICTs to flourish, protect and attract investment, and in order to foster innovation to deal with a myriad of challenges that confront humanity, its existence, Yours truly, and the environment we live in, all form an integral component of the picture that is gradually been Bocar A. BA seen clearly by many. Chief Executive Officer SAMENA Telecommunications Council

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Michel de Rosen is Chairman and Chief Executive Officer of Eutelsat Communications.

He joined Eutelsat in July 2009, was appointed Chief Executive Officer in Michel de Rosen November 2009 and Chairman in September 2013. He is a board member of Eutelsat Communications, Hispasat (the Spanish satellite operator), ABB (a Chairman and Chief global leader in power and automation) and Pharnext (a pharmaceutical and Executive Officer biotechnology industry leader). Eutelsat His career has included chief executive positions in international publicly traded groups as well as senior public service appointments. He began his career in Communications France in the Inspection générale des finances in the Ministry of Finance. He was Advisor to the Minister of Defence in 1980 and 1981, and from 1986 to 1988 was Chief of Staff of the Minister of Industry, Telecommunications and Postal Services.

Between 1983 and 1999 he held executive positions at Rhône-Poulenc, including CEO of Pharmuka from 1983 to 1986, CEO of Rhône-Poulenc Fibers and Polymers from 1988 to 1993, and CEO of Rhône-Poulenc Rorer (USA) from 1993 to 1999. From 2000 to 2008 he was Chairman and CEO of ViroPharma in the USA, and Chairman and CEO of SGD in 2008 and 2009. Michel is a graduate of the HEC business school and France’s National School of Administration (ENA - Ecole Nationale d’Administration).

Yours truly,

Bocar A. BA Chief Executive Officer SAMENA Telecommunications Council

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Q. Please tell us about ensuring that is available Q. What new broadband Eutelsat’s operations in at this position for broadcasters to service initiatives have you deliver High Definition today and the region, and core areas the immersive viewing experience of launched within the region? of services that Eutelsat is Ultra HD in the future. A. Eutelsat has been a frontrunner in the provision of presently focusing on? broadband services for users in A. With two thirds of our Our second flagship position, remote areas and locations poorly 39 satellites delivering premium BIRD at 13° East, is a key, established served by terrestrial infrastructure. coverage of the Middle East and bridge for Arab communities living The SAMENA region is already well North Africa, and a strong 30-year in Europe and for Europeans living covered by our portfolio of Ku- presence in the region, Eutelsat in MENA. band satellites that offer diverse has won the confidence of anchor options for broadband connectivity. broadcaster clients that include Al On the broadcasting side, we want It is also partially covered by our first Jazeera, MBC and OSN, as well as to further strengthen relationships High Throughput Satellite, KA-SAT, market-leading telecom providers with customers so that the right through a number of service areas like Etisalat, Du, Saudi Telecom resources are available for regular addressing some densely populated Company and Algérie Telecom. digital channels and increased adoption of High Definition TV. We areas. Services are available in Morocco, Libya, Qatar and Turkey Eutelsat operates satellites at the also want to ensure the stage is set while the licensing process is in two flagship video neighbourhoods for the upcoming arrival of Ultra HD. progress in Algeria, Egypt and the in the region. The 7/8° West video Hybrid-video delivery e.g. through UAE. KA-SAT provides broadband neighbourhood is the most dynamic HbbTV and enabling multiscreen access services using affordable in the global satellite TV market, reception via satellite are additional terminals and 75cm antennas and with a rapidly growing audience directions on our roadmap that we delivers speeds of up to 22 Mbps and channel line-up. Over 50 million want to pursue in collaboration with downstream and 6 Mbps upstream. homes (92 % of all TV homes) in customers. It also responds to professional North Africa and the Middle East are requirements for higher volume and already equipped for Direct-to-Home Eutelsat’s diverse fleet is also a key bandwidth for enterprise networks, (DTH) reception of more than 1,200 port of call for video contribution, backhaul, back-up services Arabic and international channels including by the Arab States and M2M connectivity. For this type broadcast from satellites operated Broadcasting Union (ASBU), of heavier bandwidth use, we use at this position by Eutelsat and backhauling, terminals delivering speeds of up to Nilesat. With the successful launch IP connectivity and government of our newest satellite, EUTELSAT services. 8 West B, on 20 August we are

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50 Mbps downstream and 20 Mbps is also important for satellites as Another area where the advocacy of upstream. new projects require early upfront the SAMENA Telecommunications decisions on financial investments. Council is of upmost importance In the Ku-band our EUTELSAT 21B concerns the regulatory barriers that satellite offers IP connectivity across Q. What types of cross- National Security Boards (NSBs) may the MENA region, from Morocco in introduce when new technologies the West to Pakistan in the East. We stakeholder, collaborative are proposed, which cause complement southern North Africa initiatives would enable suspension or delays in the licensing with the satellite’s western beam. This the adoption of industry process, leading to severe impact on coverage enables Eutelsat to provide friendly policies and ensure the commercial opening of services a comprehensive and unique range in the countries concerned. of IP access services for professional a sustainable digital future users throughout the entire region for you and your peers? Q. What are some of using our first class teleport A. The convergence of digital network. Services are designed services and communications calls the major business areas for telcos, corporates, government for increasing interworking and that satellite operators of organizations, companies in the Oil integration of satellite and terrestrial the SAMENA region need & Gas sector who need high-end digital communications in order to to consider when it comes broadband or high capacity trunking build future worldwide integrated connectivity. All of these services can architectures. In this framework, the to expansion strategy and be provided in a VNO mode to allow role of international and regional competition? local providers to have full control of policy bodies, like the SAMENA A. The business areas to their networks. Telecommunications Council, is consider for the region relate to crucial to moving forward the both traditional and innovative harmonisation process. The SAMENA technologies for TV broadcasting, Q. How do you view Council and other telco associations marine, military, Oil & Gas, the notion of integration have a major opportunity to bring border monitoring, backhauling, of terrestrial and satellite together terrestrial and satellite broadband access, land mobile and communications? Can it experts and decision-makers at an aircraft communications, IoT and early stage of policy developments digital convergence. The SAMENA materialize as easily as it is in such a way that the concerns and Telecommunications Council can discussed? interests of each party and project also offer valuable opportunities A. In addition to their unique are taken into account and respective to Eutelsat and other members to benefit of reach and immediacy, roles are clearly identified. present their products and solutions satellite communications are an to a larger arena of business players essential complement and back- This is obviously a challenge as through its network of contacts and up technology for terrestrial industry is often motivated by activities. communications. There are many commercial interests that may be examples of integration. Backhauling conflictual. However, we believe that Q. What major is the clearest example, in particular the earlier matters are addressed the extensive use of satellites to and the larger the participation, contributions has Eutelsat connect isolated GSM base stations the better the result for the largest made to the satellite in remote areas, or connectivity number of players. industry at large, fostering between a core network and access innovation and overall infrastructure at a remote site. In An example is the current definition many regions satellite also feeds of 5G, which is still in a nebulous growth? terrestrial networks and plays the phase but which will definitely call for A. Eutelsat is traditionally role of a kind of “content-kiosk in the incorporation of satellites into its one of the satellite operators that is the sky”. Satellites also increasingly core network. Now is the right time most demanding in terms of quality complement terrestrial solutions in to bring together the satellite and the standards, innovation partnerships digital broadcasting by transmitting terrestrial communications industries and technical excellence. In addition digital multiplexes to terrestrial on this issue. We believe that the to being among the forerunners in towers and enabling viewers beyond SAMENA Telecommunications Direct-to-Home TV broadcasting, range of terrestrial to receive digital Council, including the recently we were an early believer in the channels on a Direct-to-Home basis. established Satellite Working value of satellites for broadband Hybrid satellite terrestrial solutions Group, that Eutelsat is leading and communications using the Ka-band will also be a way forward to actively supporting, in addition to via standalone High Throughput decongest terrestrial arteries. other Working Groups analysing Satellites or payloads embarked In a commercially driven regulatory, wholesale, roaming and on satellites. Mobility is another environment, valuable synergies of content matters, is well-placed for example of a major contribution. satellite and terrestrial are achieved bridging the gap between satellites, We have invested in services for when policies and standards are terrestrial operators, OTT players mobile applications, in particular well harmonized and allow for and regulators. maritime for leisure, cruising, fishing interoperability. Timely agreement and cargos, including gas and oil on policy trends and standards tankers, and we are now offering in-flight connectivity services to

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and societal benefit. This balance includes the need for regulatory stability, which is particularly key for satellite whose in orbit assets require upfront investment, against an expected return over a 15 year or more in-orbit lifetime.

However, we say it many times: Satellite and terrestrial operators are not at loggerheads: our services are both complementary and dependent on each other; both need the other to succeed.

This said, difficult decisions do need to be made, and the ITU World Radio Conference in November this year (WRC-15) will address key decisions on spectrum allocation, particularly under its Agenda Item 1.1, by which the terrestrial community is requesting significant additional spectrum to be identified for IMT services.

The satellite community’s major concern at WRC-15 concerns the C-band in the band 3.4 – 4.2 GHz which is extensively used today for satellite downlink services. The terrestrial community is pushing for the Conference to identify frequencies in this band for use by IMT. However, and as all relevant ITU studies have concluded since 2007, sharing the same frequency in the same geography is simply not possible between IMT and satellite services in these bands: the much higher power terrestrial commercial airlines in partnership the highest quality of service and signals prevent satellite reception with specialist service providers. We customer satisfaction as well as good in exclusion zones tens and even have carefully tracked the evolution value. If we focus on this, we increase hundreds of kilometres around any of antenna technology for mobility. our overall value creation in the IMT operation. Through a specialised maritime sector and our industry reputation subsidiary, called WINS, based in as a reliable and forward-thinking The world cannot give up satellite Malta we are in a privileged position technology. C-band services, which due to their to serve large commercial fleets with unique resistance to rain fade, seamless global roaming ensuring represent a vital and irreplaceable uninterrupted communications Q. What are your views telecommunications infrastructure along international commercial on spectrum allocation throughout the world. Particularly in routes. and how can both satellite sub-tropical regions, satellite C-band and terrestrial operators provides the only solution for high Q. How has Eutelsat availability telecommunications work together to mitigate services for essential and strategic historically dealt with spectrum issues through services such as television competition and the need collaboration, with the distribution and broadcast, safety to create shareholder support of an advocacy and government security services value? (including civil aviation), banking body? and other corporate activities, and A. From the perspective of A. Access to spectrum notably, backhaul for terrestrial our clients, the principle benefits is the lifeblood of any mobile services. of strong competition are that they service, and stimulate operators to be creative must be allocated in a balanced way on the innovation front, to deliver to provide for an overall economic

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It is, however, absolutely possible for We support this approach, as it is and ubiquitous coverage. The C-band satellite services to thrive both compatible with the choice of ‘SmartLNB’ is an original, low-cost and for IMT to meet its spectrum bands in ongoing research and pilot device ideally suited for low bitrate needs to grow. Today, and in most programs in 5G, and provide for applications. It embeds state-of-the- of the world, less than half of the the wide contiguous bandwidth of art technology to create a bridge spectrum already identified by the unconstrained spectrum for which between satellite and IP worlds, and ITU for IMT has been licensed, and the 5G/IMT has identified the need. is positioned as a product of choice only about 80% of the spectrum Satellites, which are currently for smart energy, connected home licensed is actually used to provide undergoing an acceleration in and other monitoring and control services to users. In other words, IMT innovation and new services, will applications for IoT and M2M can meet even its most aggressive always be an essential part of the markets. It’s another example of how spectrum demand forecasts without global telecommunications picture. satellite and terrestrial can converge pre-empting satellite C-band It is only by ensuring a thriving co- to provide a solid platform providing services. existence of satellite and terrestrial real value to users. that a complete telecommunications So, , we need advocacy in the solution can be delivered to all of right places at the right level in order society. to ensure that the international community takes decisions at the Q. How do you view next Conference in view of the full picture and in view of the maximum your role in realizing smart interests for society. Eutelsat cities with sustainable is confident that the SAMENA infrastructure, and your Telecommunications Council will developmental role in IoT support both the satellite and terrestrial sectors in liaising with (Internet of Things)? the regulatory authorities of the A. Satellite has always been SAMENA regions to continue in a used for remote monitoring in positive dialogue. isolated areas for power plants, oil & gas pipelines etc. Today, the variety Many of the ITU regional groups of sites and applications requiring across the world, including the data exchange has grown beyond ASMG for the Arab countries, are traditional industrial Machine influential in guiding their member to Machine (M2M) to the Smart administrations in the Conference Environment, Smart Metering, process, and we have seen that these Smart Cities, and an escalation of groups can be open to balanced connected consumer devices. arguments. But the advocacy for this needs to continue, not only through Although new technologies to the end of the Conference optimised for low data rate this November, but also for the applications over long distances Conferences to come. have appeared, satellite remains the necessary complement to On this last point, I note that we are connect and infinitely extend already intensively preparing the network infrastructure. Eutelsat’s agenda for the next Conference in recent investment in Sigfox, a fast- 2019, and in particular for an agenda growing international operator item which will guide the study and of IoT networks, is an example debate concerning the identification of our interest in these emerging of additional terrestrial mobile technologies and the effective view spectrum for future IMT/5G services. of the complementarity of these local Again, here, the satellite and networks with ubiquitous satellite terrestrial communities, as well as the connectivity using low-power, low ITU regional groups and individual bit rate terminals. administrations, will need to arrive at a balanced solution which meets SIGFOX has selected to integrate the needs of both communities and the ‘SmartLNB’, an innovative their customers. We are already low bitrate, low-power satellite seeing solutions as to how the 5G technology developed by Eutelsat spectrum needs can be met without into its infrastructure, as one of the destroying key satellite infrastructure solutions to enable base stations on which the world relies. In this to exchange data. As a satellite- respect, the ASMG position is to based device, the ‘SmartLNB’ only consider studying bands over also offers the benefits of simple 31 GHz for IMT/5G identification. installation, guaranteed bandwidth

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REGIONAL PERFORMANCE

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Regional Performance

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Regulatory Trends and ICT Adoption

As is the case with technology, regulation too has been evolving, with its direct impact observed the scale and speed of adoption of ICTs and broadband access throughout the regions.

Having already moved beyond the second generation of regulations (whereby market liberalization was encouraged and subsequently realized through cellular licensing), regulators are gradually shifting their focus from simply regulating networks and online services and internet access to adopting a more realistic and transformed regulatory strategy that supports and facilitates growth and co-operation within the industry.

Significant evidence exists to demonstrate that in markets where focus from market liberalization was followed by a stricter regulatory approach to monitor new networks and services, the shift toward adopting light-handed regulations that would proactively foster growth and collaboration within the industry was seen at a very lower scale. Such slow alignment of regulatory priorities with actual market, technology, and consumer trends clearly impact the level at which ICT adoption takes place.

In contrast, markets that have been successful in creating and sustaining a regulatory focus on growth and co-operation, have witnessed comparatively higher rate of ICT adoption and thus have also been experiencing a higher number of citizens with access to digital services.

Regulatory trends need to point toward the next (4th generation) of regulatory reforms. To this effect, the regulators need to adopt newer and smarter regulatory approaches in an ever converging, communications environment. Their key goals should be to foster equality, inclusiveness among market players, and ensuring that nothing impedes investment from operators and service providers.

The days of partnership for sector-wide development and social inclusion are upon us. Only reactive and flexible modes of regulatory involvement could help best address the emergence of newer technologies and services and their convergence with each other in the rising world of Internet of Things.

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MEMBERS NEWS

Ooredoo completes Oman ensure that we are to avoid network outages or interruptions to service, which fiber backbone, spanning could impact the country significantly.” over 5,000 kilometers Providing cutting-edge GameEon brings Direct telecommunications infrastructure in the Sultanate of Oman, Ooredoo has Operator billing to announced the completion of its national customers through fibre backbone, spanning almost 5,500km across the country. Providing high speed partnership with SLA reliable connectivity, the company has Mobile established an independent national MEMBERS infrastructure to bring cutting-edge speed GameEon, a game developer and and services to customers and businesses publisher based in India, has partnered UPDATES countrywide, a press release said. “The with SLA Mobile, a global Digital Service conclusion of this project signifies the provider, to bring Carrier Billing to their dawn of a new era in Oman’s telecom customers. Founded in 2011, GameEon sector, one where we are able to keep is one of India’s up and coming games up-to-date with emerging technologies developers having developed 16 from around the world, and deliver a host games to date accumulating over half a of socioeconomic benefits that support million downloads through distribution human growth and His Majesty the partnerships with various VAS companies. Sultan’s vision for the country,” said Greg “Partnering with SLA Mobile gives us the Young, CEO of Ooredoo. “It is not only ability to extend the reach of our games about having the available technology, beyond our primarily Indian customer but the opportunities that a superfast base. We look forward to embracing the network affords. Our aim is to inspire future opportunities that our partnership human growth and support everything with SLA Mobile presents” commented from government, businesses and SMEs Taral Patel, Director at GameEon. Amelia to schools, associations and charities, Power, Head of Sales and Marketing at through digital initiatives.” Young added, SLA Mobile welcomed the partnership, “This is not simply an upgrade to legacy “GameEon’s games portfolio will deliver technology, it is an entirely new and a range of original gaming content for unparalleled network development. Mobile Operator subscribers to consume We are no longer dependent on using via Direct Operator Billing.” Direct the fibre or transmission from other Operator Billing is a simple and secure operators and can single-handedly mobile payment option which allows Mobile Operator subscribers the ability

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to charge digital products and services are signing on to grow the community across verticals and meeting the to their monthly phone bill or deduct of interconnected and peering growing needs of businesses with it from their prepaid credit. networks. the latest solutions and technologies. Organizations today realize the relevance of working with service DE-CIX Palermo internet providers in managing their data and Wall Street Exchange networks. We have seen the increasing exchange begins picks Etisalat for trend of adopting cloud services and operations colocation models among enterprises managed WAN in the country. Our experience with DE-CIX has announced that its new Wall Street Exchange, a leading money several organizations has encouraged Apollon Internet exchange in Palermo exchange company in the UAE, has industry peers to follow this is now operational. The equipment that partnered with Etisalat to leverage on development, enabling them to focus supports the exchange was installed in the telco’s managed data center and on their new business initiatives.” Wall August, and the exchange went live network services, helping them focus Street Exchange network of branches on September 2, 2015. Internet traffic on their key business objectives and in the UAE is connected to their volumes throughout the Middle East adapt business changes efficiently central and DR sites via Etisalat’s fully managed MPLS based solution. and Africa are growing at a rapid rate, across the organization. Wall Street fueled by new submarine cable systems Exchange operates across 34 that connect the users on the African branches in the UAE. The company’s infrastructure comprised of an in- continent and in the Middle East with Huawei inks house solution located within the office Europe. The existing content that is premises, which managed the entire deal with African accessed by those users lies mainly network. Partnership with Etisalat for Telecommunication in Europe and the U.S. This growth is Managed WAN services will help the putting pressure on Content Delivery Union financial organization to meet the Huawei and the African Networks (CDNs) to bring content growing demands of its business and Telecommunication Union (ATU) closer to the edge. “We founded DE- expand capabilities. It will also help have inked a Memorandum of CIX Palermo to develop a new hub for the firm to reduce capital investments Understanding (MOU) aimed Middle Eastern and African networks and at the same time gain control of the entire architecture. The central site at enhancing information and to reach Europe,” explains Harald A. communication technology (ICT) Summa, CEO of DE-CIX. “There is including Disaster Recovery (DR) is now collocated at Etisalat’s datacenter. capability and literacy in Africa. It tremendous growth happening in was revealed within the report that these regions. By creating a new hub The partnership entails that the two central sites and all branches run Huawei Technologies Kenya Country in Palermo, the Internet experience on Etisalat’s managed WAN service. Manager, Dean Yu, told a media of the end users will be improved, The other services include Managed briefing in Nairobi that his firm will while networks will benefit from cost Dedicated Internet Access (MDIA) provide technical support to African savings and better connectivity.” for mission critical applications states to increase their uptake of ICT. DE-CIX Palermo is located in “Sicily meeting their uptime and bandwidth “We will leverage our resources in Hub,” Telecom Italia Sparkle’s next- commitments and Zee Scaler’s order to introduce the most innovative generation data center positioned Managed web/email security solution. solutions to Africa,” Yu said on the at the center of the Mediterranean. Sultan Bin Kharsham, Managing sidelines of the ICT media training The facility is connected to all cable Director of Wall Street Exchange said: workshop. According to the report, landing stations in Sicily and will be a “As an organization we were looking to under the agreement, the Chinese vibrant interconnection point for the make a long term investment to adapt technology giant will share its vast international and regional carriers that to changes and rapidly decreasing the technical know-how in order to spur lead time to market. The partnership land their IP backbones in Palermo, ICT development on the continent. with Etisalat gave us access to their Huawei has presence in most of the 54 as well for CDNs that will collocate national and international high-speed African states where it works closely equipment in the facility. “DE-CIX networks and enabled our IT team to Palermo will deliver local, regional focus on the core business. “In today’s with telecomfirms to expand coverage and international players high-quality, dynamic business environment, the mobile telephony. “Our aim is to secure and reliable access to the financial sector is vulnerable to market ensure that Africa is able to bridge content and transit providers that changes which reflect immediately its digital divide,” said the country enable the Internet to thrive,” says on business performance. Therefore, manager,adding that ICT can be used Alessandro Talotta, Chairman and CEO it has become imperative to make to improve the efficiency of all sectors of TI Sparkle. “The presence of the continuous investments in upgrading of the economy. “There is a positive most important global content players our infrastructure and integrating the correlation between level of ICT use and at Sicily Hub builds a rich ecosystem latest technologies in our network.” the level of economicdevelopment,” of multi-breed players, creating the Wall Street Exchange hosts the private he added. ATU Secretary General cloud at Etisalat Data Center in the best location for high-quality, cost- Soumalia Abdoulkarim said that Africa, UAE as the on-demand subscription whose broadband penetrationrate efficient public and private peering in service. This enables budget control stands at approximately ten percent, is the Mediterranean.” Indeed, several as well as provides business continuity the lowest of any region in the world, key CDNs and content providers have and mobility access without worrying and Huaweiwill help African states already become customers of DE- about service availability and develop and implement their national CIX Palermo. Google and Limelight outages. Salvador Anglada, Chief broadband strategies. The reports Networks are both connecting and Business Officer at Etisalat said, “Our revealed that African states have set a partnership with Wall Street Exchange preparing to peer on the new Palermo goal of achieving universal broadband exchange, while additional networks proves Etisalat’s capabilities to work

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SAMENA TRENDS _ SEPT 2015 SAMENA TRENDS _ SEPT 2015 access by the year 2020.Abdoulkarim one Premium VOD Service in the Arab PTCL partners with said that some countries such as Kenya world that allows watching Arabic are leading the continent in broad movies and programs via online Google for Tech Mela brandconnectivity through national streaming service owned by MBC festival programs. The secretary general urged Group, and air various TV shows and governments to provide incentive for series. VIVA aims to always provide Pakistan Telecommunication Company the private sector to rolloutbroad band, its customers with a complete data Limited (PTCL) has announced a especially to the rural areas. “Through solution that allows customers to partnership with global search giant use of broadband, the education and enjoy uninterrupted data streaming, Google for Tech Mela, a first of its kind health sectors can reach the level and its commitment to offering its online shopping festival in Pakistan. ofdeveloped countries,” he said. customers the latest in the world of Designed to promote the growth of technology. online shopping in the country, the VIVA Bahrain partners 10-day festival features products by Google’s leading retail partners. with MBC Group to Ooredoo demonstrates Acknowledging that increased Internet launch mobile payment 4G technology penetration is vital to the growth of e-commerce in Pakistan, PTCL is for SHAHiD Plus Service leadership in Oman leading the way by offering special discounts for its products and services NVIVA has announced its partnership Ooredoo continues to demonstrate through Tech Mela. Products carrying with MBC Group which allows its technology leadership in the Sultanate discounts include the premium CharJi customers to pay subscription fees of with the recent acquisition of new wireless broadband, the EVO Wingle SHAHID PLUS, the latest by SHAHID spectrum frequency (LTE 800), to range and the recently launched CharJi and the number one Premium Video provide significant additional capacity Tab. PTCL is also taking online orders on Demand (VOD) service in the and improved 4G coverage. The for the newly launched Hi Speed No Arab world. The agreement became Company was the first in the country Limits triple play (TV, broadband possible because of the strategic to deploy 3G at the 900 lower and telephone) package. PTCL has partnership between VIVA , MBC frequency, which resulted in an uplift extended its existing partnership with Group and Intigral, the Middle East in coverage and improved battery life retailer Daraz.pk to offer doorstep leading digital hub. Through this and performance inside buildings for delivery for Tech Mela. “Convinced agreement, VIVA ‘s customers will customers. Now they are doing the that online commerce in Pakistan is on be able to enjoy receiving the paid same with their new 800 spectrum the rise, PTCL is geared up to enable package from SHAHID PLUS to watch for 4G services; providing customers e-commerce retailers in Pakistan the latest movies without commercial with 4G coverage equivalent to the and is also looking at this channel to breaks along with premium TV shows current 3G coverage. With this exciting interact with our customers,” observed and series for BD 2 only. Payment will development, customers can expect Mr. Adnan Shahid, Chief Commercial be settled without a credit card, but to see the same leap in coverage and Officer at PTCL. Customers purchasing directly charged to the customers’ performance as they did when Ooredoo the CharJi Tab will also get a monthly post-paid bill or debited from first launched their 3G services on complimentary pre-installed Sygic their prepaid account. Andrew Hanna, the 900 spectrum 2013. Greg Young, car navigation app providing turn- VIVA Bahrain Chief Commercial Officer, CEO of Ooredoo, said “Not only will by-turn voice guided navigation all said: “We are pleased to continue this cutting edge development bring across Pakistan along with a car bringing the latest developments significantly improved coverage mount and charger. Those buying and most innovative services to our and speed, but it will eliminate any Hi Speed broadband also have the customers, by offering them new related battery life issues that were option of a free PTCL Smart TV app. technology and products catering to previously associated when enabling E-commerce growth in Pakistan has their needs with valuable services. Our 4G on smart devices. Where previously lagged behind the larger Asian region partnership with MBC Group enables phones would switch between 3G and as consumers have traditionally been us to continue to provide yet another 4G as customers moved to different more comfortable buying things from value-added offering coupled with locations, the new continuous 4G brick and mortar stores. However, international content that will help 800 coverage means that phones are with the advent of targeted online our customers stay connected to their not constantly switching between advertising provided by Google, favorite shows and enjoy the best of 4G and 3G and battery consumption consumers can be made aware of entertainment even while on-the-go”. is reduced. Customers will not need products as and when they search for Abe Naga, Head of Digital at MBC to worry about battery life and do them. And with easy shopping and Group added that: “We’re delighted to not need to switch off 4G, making payment processing services such as partner with VIVA Bahrain to present their whole experience with Ooredoo those offered by Daraz.pk coupled SHAHID PLUS service to its customers second to none.” Current data service with reliable e-commerce fulfillment and offer them a different payment coverage is provided via LTE 1800 services such as those offered by TCS, method. SHAHID PLUS became as a (4G) and UMTS 900 (3G) spectrum. online shopping in Pakistan is poised value added service to SHAHID, the Ooredoo are now adding LTE 800 to a to take off. As the largest ICT service most popular and successful Premium number of sites around Muscat which provider of the country, PTCL continues Video on Demand (VOD) Service in effectively doubles capacity and brings to innovate and bring exciting new the Arab world, which we are proud improved 4G technology to Oman for products and services for its esteemed of and continue working to bring all the first time. customers. Customers can enjoy this that, is new.” SHAHID is the number limited time offer on Tech Mela till the 21st of September 2015.

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PCCW unveils ONTAPtv at the Telecoms World Middle East Contact Center’ category at Customer Awards 2015 and “Telecoms CEO of Experience Asia Excellence Awards in online video service for the Year” for Dr. Nasser Marafih at Singapore. the CEO Middle East Awards in Dubai last night. The company has delivered PCCW Global has launched its ONTAPtv impressive results in 2015, reaching du brings UAE’s Smart video-on-demand (VOD) service for an all-time high of more than 114 City vision closer to South Africa, claiming to be the first to million customers across its footprint, offer à la carte content packages and increasing its leadership position in reality with new breed of an offline viewing option. The now live data services (now worth 34% of the network service from the Hong Kong telco also Group’s revenue), and enhancing its boasts a lower price point than local portfolio of solutions for business and du has successfully tested the first digital streaming rivals MTN FrontRow, enterprise customers. In addition, the true Internet of Things network (IoT) Vidi and the Naspers-owned ShowMax. company has taken the lead in network in the Middle East, a key component ONTAPtv will provide over 2,500 hours performance, delivering 4G+ in Qatar of smart city which can revolutionize of TV shows and films with immediate and Kuwait, 4G in Oman, Tunisia, how our cities and resources are effect, including series from local and the Maldives, and providing 3G managed. The network can relay data broadcaster SABC plus international services in Algeria and Myanmar. Dr. from sensors countrywide, enabling content from Warner Bros, MGM and Nasser Marafih, Group CEO, Ooredoo, smarter management of a vast array BBC Worldwide. ONTAPtv.com also said: “Both these awards demonstrate of city resources such as smart street offers Chinese content from PCCW’s the incredible contribution that lighting, waste management and Hong Kong IPTV service now TV. Ooredoo companies are making to parking. Critically, the network’s low More content will be added over time. people’s lives across our footprint energy consumption also prolongs The company will also sponsor the in the Middle East, North Africa and sensor battery life by years. Carlos development of local dramas in South Southeast Asia. By investing in network Domingo, Senior Executive Officer, Africa’s Maxum Media Accelerator excellence and a superior customer New Businesses & Innovation, du , project, set to be available later in experience, we have positioned our said: “This is a defining moment in the 2016. “This partnership demonstrates operations as leaders in data services, UAE’s Smart City transformation. We our commitment to the development B2B innovations and supporters of need a new breed of ‘sensor friendly’ of exciting local content, whilst helping people’s digital lifestyles.” Ooredoo network to establish the Smart to grow the South African film and received the top prize of “Best City ecosystem - thanks to du , this entertainment industry,” said Lindsay Operator” at the prestigious Telecoms capability now exists in the UAE.” IoT is Servian, head of ONTAPtv. Customers World Middle East Awards held a future internet evolution that works will be able to stream content to up to in Dubai on Monday, coming first by inserting technology into objects three connected devices, or download against a field that included some of so they can relay data and interact TV shows or films that then remain the leading operators in the region. with their surroundings, enhancing available offline for 48 hours. “This is a Judges selected Ooredoo based on the performance of urban services major VOD innovation in South Africa, its impressive performance across a - making every day things ‘smart’. and will, we believe, greatly expand range of metrics, including growth Existing networks are not designed the number of customers who will now in customer numbers, provision of to transmit data between millions of be able to enjoy the service, and at a cutting-edge network technology, sensors across large areas. IoT requires highly affordable price,” added Servian. particularly 4G, 4G+ and Fibre, and a new type of low power consumption, ONTAPtv’s packages start at monthly the company’s success in supporting long range network, which prolongs subscription of ZAR39 and rise to a full range of innovative smart battery life of sensors, making it R89pm for the Mega Pack. Customers services for healthcare, transportation, both cost and energy efficient. This can also rent movies from ZAR15 for entertainment and urban revolutionary technology was recently 48 hours. AlwaysOn will also provide development. At the CEO Middle East showcased to Dubai’s community data package deals when the VOD Awards, Dr. Nasser received his award and business leaders as part of du ‘s service is used at AlwaysOn Super Wi- in front of an audience of the Gulf’s top growing capabilities as a Smart City Fi locations nationwide. For example, executives. The awards panel noted enabler. Carlos added: “Dubai is our a 15GB package valid for 30 days will Ooredoo’s success in creating a truly home and we want to lead its transition be available for ZAR29 and a similar global brand under his stewardship, to become a better, smarter city for 50GB package for ZAR59. ONTAPtv is rolling out “Ooredoo” in Qatar, all to enjoy. Today we’ve shown how available in South Africa through the Algeria, Tunisia, Kuwait, the Maldives, our network capabilities and digital company’s website or by downloading Oman and Myanmar. In addition, know-how can deliver the Smart City the app for both Android or iOS-based Ooredoo’s success in the greenfield ecosystem Dubai needs. We will not digital devices. market of Myanmar and the launch stop in Dubai, our deployment will of Ooredoo Business, a dedicated unit continue country-wide throughout the focusing on innovative services for UAE.” To implement its IoT network, Ooredoo wins Best companies, were cited as key success du has chosen LoRa, a technology Operator and Best factors. Ooredoo has continued to promoted by the LoRa Alliance, an add to its tally of awards in 2015, with open, non-profit association initiated Telecom CEO operations across its footprint winning to standardize networks globally to enable IoT, machine-to-machine Ooredoo is celebrating a double success a range of commendations. Most (M2M), Smart City and industrial this week, winning “Best Operator” recently, Ooredoo Myanmar won an ‘Honorary Mention Award’ in the ‘Best applications. LoRa adds to du ‘s

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SAMENA TRENDS _ SEPT 2015 SAMENA TRENDS _ SEPT 2015 growing portfolio of advanced network Ooredoo is an important milestone Middle East. Ciena’s 6500 Packet- technology, developed through an for Huawei as a Managed Services Optical platform, equipped with the ongoing commitment to invest in provider rapidly investing in the IT new WaveLogic 3 Extreme chipset, innovation. Earlier this year, du became field. Huawei has become a global combined with GeoMesh submarine one of the few operators in the world strategic outsourcing partner for solutions and E-Suite integrated packet to deploy LTE Advanced (LTE-A) across operators working to achieve digital switching, will add more intelligence to its network. In August last year, du also transformation. To date, Huawei the GBI network, as well as improved announced that VoLTE technology had has accumulated more than 40 ITO ease of operations, maintenance and successfully been installed and tested contracts, serving over 20 operators future capacity expansions, including over its commercial LTE network. in more than 20 countries. Huawei is an option to perform future upgrades. now a strategic outsourcing partner More importantly, GBI’s latest for operators around the world. infrastructure investment validates the Huawei signs five-year organization’s results-oriented vision “FMO” IT operation and mission to meet the demands of GBI extends relationship contract with Ooredoo customers and partners and to deliver with Ciena on the company’s promises to deploy Kuwait state-of-the-art technology and high- Gulf Bridge International (GBI), a bandwidth services. Ooredoo Kuwait and Huawei have service provider that operates an signed a “Future Mode of Operation integrated network connecting the (FMO)” IT and Network Managed world to the Middle East, signed an Zain crowned ‘Best Services contract at the 2015 Huawei agreement with Ciena® (NYSE: CIEN) Telecom Brand’ at Global Service Forum. Under the terms to deploy its Converged Packet-Optical of the contract, Huawei will provide Networking solutions that will support Telecom World Middle managed IT and network operations, the region’s increasing demand for East Awards 2015 network performance management connectivity. Speaking on the occasion and service quality improvement of the deal, Abdulla Al Rwaili Executive Zain Group, a leading innovator of for Ooredoo Kuwait. Huawei will Vice-Chairman and Managing Director mobile telecoms in eight markets provide an ICT Converged Operation of GBI said, “We have recognized that across the Middle East and Africa solution to manage IT and telecom the ever-increasing bandwidth usage region, is proud to announce that equipment through converged in the region has created a demand its brand has been identified as the operation processes, resources and for customized services and greater telecom ‘Best Brand’ for 2015 at the tools. The aim is to help Ooredoo network upgrades. The investments prestigious Telecoms World Middle Kuwait achieve digital transformation, in greater network intelligence will East Awards held at a gala event in operational excellence and to improve help us deliver on the current and Dubai this week. Additionally, Zain’s the customer experience. “The FMO future needs of our customers and market leading operation in Jordan project is significant for Ooredoo,” said partners.” Ed McCormack, Vice was awarded two accolades as the Prabjit Singh Panesar, Ooredoo Kuwait President and General Manager ‘Best Operator Network’ for its recent Deputy CTO & Director of Service of Submarine Systems at Ciena, Assurance. “It will accelerate the comments, “With Ciena’s solutions speed of our response to the market, underpinning GBI’s submarine and improve network performance and terrestrial cables, GBI will have a fully quality of service, and enhance the optimized end-to-end network. This end-user experience. We are pleased massive capacity enhancement also to be working with Huawei as their means that GBI is well positioned products and service capabilities in the to accommodate growth and help IT and telecommunications fields will its customers facilitate the demand help us achieve ICT transformation.” for high-bandwidth applications, “For us, Huawei’s ICT infrastructure such as those needed for video and transformation service has been cloud services.” Deploying Ciena’s one of the company’s key strategic solutions will enforce GBI’s advanced investments, which will strengthen portfolio of enterprise and wholesale our position as a strategic partner services and will enable for operators,” said Dr. Howard Liang, network flexibility and scalability. The rollout of 4G LTE in the Kingdom Senior Vice President, President of deployment of upgrades of 100G and ‘Best Customer Experience’ Global Technical Services, Huawei. “It is and 200G wavelengths on GBI’s service. Impressively, for a second an honor for Huawei to be selected as submarine segments, is believed consecutive year the honor of the the FMO project supplier for Ooredoo to be the first deployment of such ‘Best Brand’ was bestowed on Zain Kuwait. The cooperation between technology in the region which will Group by a panel of judges assembled Ooredoo and Huawei now extends enable unprecedented capacity by Terrapinn, the organizers of the from purely CT to encompass IT, and and will increase GBI’s network annual Telecoms World Middle East we are committed to delivering the capacity twenty-fold. This capacity Conference and Awards. The awards ICT converged operation Ooredoo enhancement will enable GBI to offer recognize outstanding performance Kuwait needs to achieve operational differentiated, premium business in 10 key areas throughout the Middle excellence and digital transformation.” and wholesale services across the East telecommunications industry and The cooperation between Huawei and region, connecting the world to the place a spotlight on key players that

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have contributed to making the sector Omantel voted the most concluded. Over the last few years, one of the most dynamic and vibrant Omantel brand received a number in the world. Zain Group CEO Scott trusted brand in the of regional and international awards. Gegenheimer was the keynote speaker telecom sector Besides maintaining its position as the at the event where he elaborated on most valuable brand in Oman since Zain’s strategy for delivering a digital Omantel, the Sultanate’s most 2010, the brand has been selected as lifestyle to its customers. Zain has valuable brand in Oman according the best brand in the telecom sector been a recipient of the ‘Best Brand’ to the annual brand survey of Brand as per the outcomes of the annual award on numerous occasions since Finance, has been voted as the Most survey conducted by Business Today the introduction of its inspiring brand Trusted Brand in the telecom sector magazine. Omantel also captured a in 2007. This year’s success has been in the Sultanate. The selection was number of other prestigious regional driven by the tangible developments announced by Oman Economic and international awards. occurring at the company, where Review, a renowned local English heavy investment in network and magazine in its September issue as upgrades, and technology innovation part of the brand survey conducted PCCW to launch VOD is positively impacting customer by the magazine in collaboration with service in South Africa mobile experience. Additionally, Zain’s the Arab Research Bureau. Moreover, Corporate Sustainability programs and all the participating categories have Hong Kong’s PCCW has confirmed its eye-catching marketing campaigns named Omantel as the most trusted international operating division will have captured the attention of the brand in the telecom sector. The launch a video-on-demand (VOD) whole region, reflecting the company’s participants at the survey have been service for South Africa to compete aspirations. Commenting on the award divided into two main groups (senior with Nasper’s recently launched of the latest accolade, Zain Group CEO management and executives) and six ShowMax. The service will complement Scott Gegenheimer said, “We would sub groups. The senior management PCCW’s connectivity services in like to express our gratitude to the group included two categories namely Africa, and more information will be judges for their belief in and support the Omanis and expats. The executive provided at a press conference in of the Zain brand. To us, our brand is group included four main categories , the company said in a living, breathing entity that needs namely Omanis, expats, males and a statement. PCCW Global already to be nurtured and preserved, and females. When it comes to telecom manages satellite capacity over Africa we are always appreciative when we services, there has been a consensus and provides access to multiple cable receive positive confirmation from among all groups that Omantel is the landing stations, providing fibre our industry on the work we are most trusted brand in the Sultanate; connectivity to 40 African countries. By doing.” Gegenheimer continued, “Our up to 10 points higher than the first entering the VOD space, the Richard brand represents a promise that we runner up. The selection reflects the Li-controlled telco will take on the are offering the best solutions to our confidence vested by more than 3 recently launched ShowMax service, customers and are looking to deal million customers in Omantel products which delivers a range of international with all of our various stakeholders and services. Commenting on this and local TV shows and films across in a professional and highly effective achievement, Talal Said al Mamari, CEO multiple connected devices for ZAR manner. Being recognized as the ‘Best Omantel said ‘This is another milestone 99 a month. Netflix also plans to Brand’ drives us to re-commit to our achievement that reiterates Omantel’s launch in South Africa before the brand promises and look to continue leadership of telecom sector in the end of 2016. South Africa has been to foster a ‘Wonderful World’.” In May, Sultanate. The achievement is s result plagued with unreliable broadband Zain operations in Kuwait, Bahrain, of accumulation of confidence that has connectivity; however companies such Jordan, and its managed operation been reinforced and integrated over as Naspers and PCCW are getting in Lebanon, scooped three major the past decades. ‘We are delighted to ready for Internet improvements and a innovation prizes at the well-respected learn that there has been a consensus subsequent a growth in the country’s 2015 Global Telecoms Business (GTB) among all groups that Omantel is appetite for VOD. This month Telkom Innovation Awards held in London. the most trusted brand in telecom. SA unveiled plans to connect one In 2014, Zain’s flagship operation in This is itself a strong evidence of our million South African homes with fiber Kuwait was recognized as the ‘Best customers’ confidence in our products which, says ShowMax spokesperson Telecom Operator for 2014’ from and service. The selection will urge Richard Boorman, “is exactly the industry journal CommsMEA and us to double our efforts to ensure kind of development that will spur business weekly Arabian Business, that all our customers enjoy good a change in viewing habits and a while Zain Iraq was awarded the experience with us”. he furthered. move to on-demand viewing”. PCCW, ‘Telecom Operator of the Year’ ‘Our new strategy is focused around which operates IPTV service nowTV distinction at the 2013 Arabian capitalizing on the opportunities in Hong Kong, bought a majority Business Achievement Awards and generated by digital transformation stake in mobile VOD service Vuclip in at the 2013 CommsMEA Awards. to provide an experience that exceeds March. The company includes Africa These awards highlight the scope our customers’ expectations. Omantel in its expansion plans and currently of success Zain Group operations has already launched a number of operates in six countries in Asia and continue to generate, as they follow initiatives that contributed to the the Middle East. a strategy to deliver a sway of digital enhancement of the services provided lifestyle products and services to to Omantel customers”. Al Mamari their customers, while helping uplift communities and economic development across the region.

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Etisalat launches solutions, as it does not require bank Money customers create their account or credit card information. fundon Orange Collecte by dialling enhanced “managed Amr Qanadilo, CEO at Arab Mobile #144*8# on a mobile or going to services portal” to offer Content commented, “Partnering collecte.orange.com. A charity that with SLA Mobile presents us with the wants to start a fundraising campaign businesses real time opportunity to widen our customer must have created an Orange Money base by exposing our products account dedicated to the charity. network information and and services to Mobile Operator As for contributors, they choose a support subscribers via Direct Operator Billing.” campaign, indicate how much they Amr went on to add, “By initially want to pledge and then confirm it. Etisalat’s managed services business connecting to Zain subscribers in the In turn, they can invite their contacts customers can now enjoy an Middle East, Direct Operator Billing to also take part in the collection. At enhanced experience with seamless will drive new revenue streams for the end of the collection, the amount access, real time information of their Arab Mobile Content.” raised is directly transferred to the networks and support, as the telco user’s Orange Money account. In sub- revamps its managed services portal Saharan Africa, where less than 24 % (managedservices.etisalat.ae) and adds Orange launches of the population has a bank account, dynamic new features. Etisalat’s new the first ever mobile whilst more than 80% of inhabitants managed services portal is designed have a , Orange Money to provide business customers an crowdfunding platform offers mobile financial services that around-the-clock 360-degree visibility in Africa can be used with simplicity and ease to with geolocation, providing a constant carry out remote transactions securely. flow of information and support for Orange is launching Africa’s first mobile Opening an Orange Money account is their networks. . Constant business crowdfunding platform in Côte d’Ivoire: free for Orange mobile customers. The growth and expansion demands that Orange Collecte. With this platform, system is very easy to use: deposits IT Heads have real time updates of private individuals and charities can or money transfers are made via the their network and services in order to finance their personal (weddings, standard GSM network. With more make informed ICT decisions. Etisalat birthdays, etc.) and charitable projects than 15 million customers and more has therefore enhanced the managed (fundraising, events, projects, etc.) than €4.5 transferred in 2014 in 13 services portal to help IT decision by making an appeal through their countries, Orange Money is a great makers gain insight into their business’ mobile network. This novel solution is success. network performance, outage updates open to all Orange Money customers and consequently manage network in Côte d’Ivoire. Contributors will issues efficiently.

Arab mobile content delivers mobile payments to customers with SLA Mobile’s Direct Operator Billing Solution Arab Mobile Content, an end-to-end value-added service (VAS) solutions and content provider, focused on the Middle East and North Africa regions, has partnered with SLA Mobile, a global provider of managed Digital Service solutions, to deliver Direct be able to make their donations Qualcomm Announces Operator Billing to customers. “Arab using their Orange Money electronic Mobile Content sources, creates and Mobile Anti-malware wallet. The Orange Collecte platform develops content for mobile operators was developed in partnership with Technology Utilizing and as such this partnership provides HelloAsso. Through this partnership, the unique opportunity to satisfy Orange is getting involved with the Cognitive Computing subscriber content needs through social innovation approach instigated Qualcomm says that its forthcoming Direct Operator Billing”, said Amelia by HelloAsso. The Orange Collecte chips will include a real time, on device Power, Head of Sales and Marketing initiative embodies the Group’s desire machine learning designed to support at SLA Mobile. Direct Operator to support innovative solutions that detection of zero day malware threats. Billing allows users to pay for digital meet its customer’s basic needs, while Snapdragon Smart Protect is also the goods and services by charging the also illustrating the issue of developing first application to utilize Qualcomm amount to their monthly phone bill or innovative financial services in Africa, Zeroth technology, augmenting prepaid credit. Direct Operator Billing which is part of the operator’s strategy. is one of the safest online payment

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conventional anti-malware solutions Asia, realizing growing returns in a SMS, and internet for businesses with by supporting on device real-time diverse range of markets, from Algeria ten employees or fewer. malware detection, classification and through to Indonesia and Myanmar. In cause analysis using an advanced December 2014, the Group announced cognitive computing behavioral a strategy to invest significantly in PTCL promotes research engine. Snapdragon Smart Protect the competencies and resources and invention in sports complements existing signature- necessary to build its position in the based anti-malware solutions by business-to-business (B2B) segment. engineering analyzing and identifying new threats With B2B services now representing Pakistan Telecommunication Company prior to new signature updates. OEMs a record 16 percent of total Group Limited (PTCL) senior management and mobile anti-malware application turnover, as of its most recent financial visited the NUST School of Electrical providers can also use Snapdragon results, it’s a strategy that is returning Engineering and Computer Science Smart Protect API’s to perform valuable significant dividends. Dr. Nasser (SEECS), Islamabad to appreciate the causal analysis, offering users and the Marafih, Group CEO, Ooredoo, said: achievement of three brilliant students mobile industry real-time information “Ooredoo positions itself to be the of the university, who presented their of identified threats. “With consumers partner of choice for a full range research paper at MIT USA - one of storing more personal information on of businesses, from home offices the most prestigious universities of the their devices, data leakage incidents through to the largest enterprises, world. Abdullah Ahmed, Muhammad and malware are on the rise. Qualcomm and we are offering an innovative Jazib Khan and Muhammad Asawal Technologies is uniquely equipped to range of mobile and fixed solutions have developed a device for cricketers address these issues with our ability to support business customers. With to regularly gauge their body to access lower layers of the software an estimated potential of nine million movements and angles while bowling. stack and dedicated security hardware, companies across our footprint, we are The creative device will provide an to create a device-based, behavioral developing significant experience and accurate, easy and affordable solution analysis approach for mobile a deeper understanding of business for the cricketers to monitor and security,” said Asaf Ashkenazi, director, needs, which in turn is driving the improve their bowling actions. These product management, Qualcomm development of a new range of smart students were supported by PTCL to Technologies, Inc. “Snapdragon Smart services.” In particular, Ooredoo has present their research paper in USA. Protect supports deep on-device seen significant returns from the The delegation, which was led by monitoring for nearly instantaneous small and medium enterprise SME Syed Mazhar Hussain, Chief Human notifications of detected privacy sector, which provides the backbone Resource Officer PTCL included Amjad violations and malicious activity of many economies across Asia Iqbal, EVP Talent Management & while also providing great system and the Middle East. Building on its Learning PTCL and Ahmed Jalal GM performance and battery life.” QTI is experience in this area, Ooredoo has Training & Development PTCL. At the working in close collaboration with launched a range of special packages ceremony held at NUST, Syed Mazhar OEMs and mobile security providers and services specifically designed for Hussain, CHRO PTCL said that PTCL like Avast, AVG and Lookout to make smaller companies. In Ooredoo’s home is striving to provide new learning Snapdragon Smart Protect capabilities market of Qatar, the company has opportunities and capacity building available within commercial anti- pioneered a range of services aimed at for the talented youth of the country malware apps. Snapdragon Smart the SME market, including its Ooredoo through various initiatives. He added Protect is a feature within the Web Builder solution, which enables that development of youth is the single Qualcomm Haven security suite, which companies to develop mobile-friendly most contributing factor towards also offers Qualcomm SecureMSM websites using high quality templates, national prosperity and growth technology, a hardware-based security with no design or technical knowledge and PTCL is committed to extend protection technology designed to required. In addition, Ooredoo Business full support to the institutions and make Snapdragon processors resistant Fibre service, which enables smaller students for unleashing their potential. to targeted attacks. Qualcomm Haven companies to connect to the internet Dr. Syed Mohammad Zaidi, Principal also features Qualcomm Snapdragon at speeds that were traditionally SEECS, NUST while acknowledging Sense ID 3D fingerprint technology, restricted to large corporations, has PTCL’s contribution said, “This initiative Qualcomm Snapdragon StudioAccess delivered strong results. In Kuwait, that PTCL undertook is motivating for content protection and Qualcomm Ooredoo has launched the Shamel other organizations and shall serve as SafeSwitch technology. Snapdragon Business Plans, a market-changing a step towards enhancing the capacity Smart Protect is expected be available service that is designed to meet the of our youth and provide much in consumer devices in 2016, in needs of different business segments. needed international exposure. These conjunction with the Snapdragon 820 Through this offer, business owners collaborations also broaden the vision processor. and entrepreneurs can ensure of students and expose them to real uninterrupted communication with time market situations.” PTCL team Ooredoo Expands free calls throughout business hours, also visited the state-of-the-art labs and benefit from outstanding value and research facilities of NUST. The Business Offering Across on roaming, data, international calling, event concluded with a commitment its Global Footprint and a large variety of the latest mobile to continue the journey for opening handsets. Ooredoo Kuwait has also up new vistas and knowledge creation. Ooredoo continues to see strong launched Ooredoo Business and PTCL is engaged in promoting the returns from its focus on providing Ooredoo Business Pro, which are sports facilities in the country and innovative business services across special packs that include discounts encourages the youth introducing the Middle East, North Africa and on calls, and bundles of free minutes, revolutionary inventions and bringing good name for Pakistan.

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REGIONAL NEWS

Ooredoo completes Big Data is receiving national fiber backbone investigation and across Oman investment Ooredoo Oman has announced Due to several more recent the completion of its national fiber- developments, Big Data is experiencing optic backbone, which spans almost a surge in popularity and is receiving 5,500km, to provide high speed reliable investigation and investment. In fact, as connectivity to residential and businesses many enterprises embark on a digital customers across the Sultanate. The transformation of their organizations, company says it is able to offer a it has become clear that factoring in robust, cost-effective data highway, the capabilities to safely, accurately and REGIONAL which connects all regions of Oman and productively store, process, manage, complements its international submarine analyze and leverage data is a crucial UPDATES fiber-optic links and the ‘Superfast Fiber’ element. Nine out of ten C-suite fiber-to-the-home (FTTH) service, as well executives today consider data to be the as its range of solutions for connecting fourth factor of production, as important businesses. ‘This is not simply an upgrade as the traditional three pillars of land, to legacy technology, it is an entirely new labor and capital. It, therefore, comes as and unparalleled network development,’ little surprise that global investment in noted Ooredoo Oman’s CEO Greg Young, Big Data is expected to grow by 17 per adding: ‘We are no longer dependent cent CAGR to reach $76bn by the end of on using the fiber or transmission from 2020. Organizations are turning to the other operators and can single-handedly masses of information available to them ensure that we are able to avoid network to improve the customer experience, outages or interruptions to service, which minimize risk, optimize operations, could impact the country significantly. enhance business models and, more Oman is no longer dependent on just accurately, track market trends. But a single fiber network and this will where has all this underlying data come bring huge benefits to the country in from? The answer is largely unsurprising. terms of security, dependability and More people than ever before have attractiveness to foreign investors, as access to the internet, or own a mobile or well as government organizations and computing device, and many have several established businesses.’ Ooredoo says devices transmitting data all at once. that its total investment in network At the same time, data storage options modernization has reached OMR124 offer ever-greater capacity at lower million (USD320.9 million) and covers cost, assisted by the advent of advances 99% of the population. such as data lakes and the Cloud. New

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SAMENA TRENDS _ SEPT 2015 SAMENA TRENDS _ SEPT 2015 regulation has also had a role to play. Egypt has largest hands of consumers, with the Saudi In the financial sector, for example, market accounting for over 50% of the being able to identify, capture and customer base in Arab mobile-connected devices shipped leverage data is vital if reporting region electronics across the GCC in Q1 2015, and the requirements are to be met. In all region’s own mobile devices market industries, customer expectations for market expected to increase by almost 30 tailored and personalized services A report by PAYFORT considered percent by 2019. Thankfully that have soared, alongside heightened Egypt the largest market for gap is less daunting as we approach demand for visibility over their electronics trade in the Arab region another historic leap in mobile accounts, transactions, delivery of in terms of the number of online innovation. Expected to be launched goods and convenience of use. This buyers. The number of Egyptian in 2016, the commercialization of 4.5G means companies need to store online buyers exceeded 15.2 million mobile broadband will inaugurate and quickly access vast amounts people, according to the company, the Gigabit era--enabling people to of data around these services, while Saudi Arabia came in second enjoy increasingly connected and effectively in real-time. At the same place with 10.6 million online buyers, intelligent lives. Yet are we ready for time, banks and corporate may find followed by Emirates with 6.8 million this technological leap? If so, when will themselves up against the limits online buyers. Lebanon came in it come, and what new opportunities of their legacy systems - requiring fourth place with 2.6 million buyers, will it bring to local communities? In further technological investment. then Kuwait with 2.4 million buyers its simplest form, 4.5G represents the These drivers and challenges through the Internet, while Jordan necessary bridge between today’s are contributing significantly to took the last place with 1.6 million 4G mobile services and a long-term corporate’ and banks’ intensified buyers. According to the report, vision for 5G connectivity. Real 5G focus on Big Data, but so, too, is the Egypt is the largest Arab country with is still far away from commercial potential for reward. For example, Big access to the Internet, where there are availability. We’re talking a decade out, Data has the potential to improve more than 40.7 million Internet users. most likely to emerge between 2020 business performance by an average After that, Saudi Arabia comes in and 2030. As the public’s thirst for of 41 per cent. With such a clear with 17.4 million users, then Emirates mobile is rapidly expanding, the 4.5G incentive, adoption rates are higher with 8.2 million users. The report standard is the only solution to meet than ever, with adoption typically said that the three countries will these demands. In specific, the Saudi broken down into four stages: lead the change in the e-commerce public will be able to enjoy enhanced education - focusing on knowledge industry in the Arab world during the mobile services marked by three key gathering and market observations; coming period. As for the payment upgrades on connections, capacity exploration - developing strategy methods, 72% of the Egyptians who and latency. As local industries begin and roadmaps based on business buy through Internet prefer to pay to reap the benefits of machine- needs and challenges; engagement in cash and only 22% prefer to pay to-machine communication, 4.5G - piloting big data initiatives to through credit cards, while 2% use will open the door to the Internet validate value and requirements; and CashU services, and 1% use PayPal of Things by increasing the number execution - deploying two or more services. Meanwhile, the majority of possible connections to around big data initiatives, and continuing of the customers who buy online in 100,000 connections in a single square to apply advanced analytics. When Egypt are low-income people, where kilometer. That’s 100 times more surveyed, 47 per cent of respondents the clients with monthly income of connections than most 4G networks. felt that they were in stage two, less than $286 represent 21% of the Moreover, 4.5G actually seeks to (exploring and strategizing), with only total online buyers, while people increase the throughput rate of today’s six per cent positioned to execute Big with a monthly income of $286-799 4G networks by a factor of 50. This gives Data initiatives. However, the coming represent 37% of Egyptians. consumers the chance to experience years should see most corporate things like 4K video and virtual reality attempting to understand and utilize in their true form. Third, mobile Big Data to improve their businesses. Saudi Arabia is leaping connections will become accessible In the Middle East in particular, faster. Network responsiveness--or as it cements its position as an into Gigabit era “latency”--on 4.5G will be reduced international financial hub, Big Data Following the first 4G LTE mobile to just 10 milliseconds. Applications capabilities should prove to be a key networks launched in 2011, Saudi for remote education, banking, differentiator of trade performance Arabia has seen these high-speed healthcare, even automatic driving can and financial services in years to services adopted as the standard literally be processed faster than the come, from tackling cybercrime and of choice for mobile connectivity. blink of an eye. Within Saudi Arabia, money laundering to improving Since then the Kingdom has stayed the advancement of 4.5G technology KPIs. In addition, the Middle East on the forefront of technological is perhaps no more apparent than is a gateway to Africa in terms of transformation. That benchmark in the parallel development of the both trade and banking, where is moving swiftly, however. Many Kingdom’s “Economic Cities” agenda- many developing nations - free of experts predict that mobile traffic -diversifying the local economy legacy systems - will be in a position could swell by a factor of 10 by with an emphasis on knowledge- to leapfrog developed countries’ 2018. This will introduce a significant driven industries. It’s no surprise technologies thanks to quickly- gap between the public’s mobile that these connected and intelligent implemented access to internet and needs and the ability of current urban landscapes will hinge on the mobile devices. technologies to support that breadth availability of mobile broadband. It of connectivity. That will in part is estimated that 90% of cars will be be driven by more devices in the connected to the Internet by 2020. By 2025, 100 billion connections will

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be generated globally due to learning, affordability, and regional demonstrating the latest educational enterprises becoming enabled competitiveness, industry experts developments using 3D printers in the by the Internet. Experts predict announced today in the build-up classroom. “3D printing technology is that smart homes and smart to GITEX Technology Week 2015. A at the forefront of providing students commercial buildings alone will recent GCC education industry report with a competitive advantage by represent 45% of total connected by Alpen Capital reveals the region fuelling creative ideas, developing their things in use in 2015, with that has an annual spend of USD 150 design skills, and bringing concepts to number rising to 81% by 2020. billion towards the education sector, life. GITEX Technology Week serves as One of the immeasurable values of with technology-driven education an ideal platform for us to showcase the birth of 4.5G is that it also gives a priority for boosting innovation, the most sophisticated 3D innovations clear direction to organizations as meeting students’ demands and from leading 3D printing companies. they grow their digital footprint. tackling unemployment. With Middle East educators can use this It’s one standard that builds on the region digitizing and seeing technology in the classroom allowing existing investments and paves strong broadband connectivity, key students to gain experiential learning the way for future innovations. educational technologies include through prototypes from science The enhanced capacity, number free Massive Online Open Courses models to industrial design,” said of connections, and latency of (MOOCs), which provide access Ashish Panjabi, COO, Jacky’s Business 4.5G will be essential in meeting to educational seminars beyond Solutions. Complementing the these new urban realities. Huawei’s geographical borders; 3D printing exhibition will be the GTX TechVerticals own Center of Excellence for for in-classroom prototypes; virtual conference on education, at which Smart Cities & IoT is currently and augmented reality classroom international education visionaries will assisting governing bodies and laboratories; and wearables, according discuss the latest trends in technology telecom operators to drive new to a new Frost & Sullivan report. in education. Global academic 4.5G initiatives from concept to On the back end, institutions are institutions attending include the reality. What many people don’t deploying complex learning analytics University of London, the UK’s Cedars realize today is just how soon for individualized learning strategies, School of Excellence UK, King’s College this transformation could take and utilising cloud campuses to host London and Leeds Beckett University place. It is estimated that 4.5G will electronic resources and mobile- take off around 2016. Numerous enabled projects. “Youth across the trials are already under way in Middle East are integrating technology Emirates Data Clearing both mature and developing into their daily lives, and the next countries worldwide. Leading five years will be the make-or-break House launches first operators in the Kingdom are moment for the region’s educational GSM-Architecture based already announcing plans for 4.5G institutions to harness students’ networks to be commercialized as potential with technology,” said Trixie Wi-Fi hub in the region soon as the standards are released LohMirmand, Senior Vice President, Emirates Data Clearing House (EDCH), by industry regulators. Huawei Exhibitions & Events Management, the region’s largest mobile services has been working with these Dubai World Trade Centre (DWTC). Data Clearing House provider, regulators and local operators “From smart content sharing to announced a partnership with Accuris on a 4.5G vision that leverages real-time evaluation, educators and Networks to launch the region’s first experiences in LTE systems and training providers attending GITEX WRiX-capable (Wireless Roaming which taps the $600 million that Technology Week 2015 can discover Intermediary Exchange) Wi-Fi Hub we’ve already allocated for 5G technologies that allow for greater for International Wi-Fi roaming and research by 2018. To address the personalization, more affordable domestic mobile data offload services. challenges brought about by our learning and training the next Service providers worldwide are society’s digital transformation, generation of leaders in the Smart adding Wi-Fi access to their roaming mobile networks must be able to tech and Internet of Things-based packages to enhance user experience facilitate broader capacity, more workforce,” added Trixie LohMirmand. and lower costs for subscribers as connections, and instant service The GCC has taken the regional lead they travel globally. By adding a Wi- access. It is with this ambition in in the Middle East region. Technology- Fi Roaming Hub, EDCH will be able to mind that we can look forward driven education initiatives include offer its service provider customers a to 4.5G services in the very near the UAE’s Smart Learning Initiative, seamless and cost-effective method future. which aims to provide personal to access global Wi-Fi connectivity. tablets to all K-12 government The EDCH Wi-Fi Hub, built on Accuris schools by 2017, and Qatar’s Supreme Networks’ AccuROAM Platform, Education Council’s e-Bag project, Etisalat sells more addresses key issues faced by which provides students and teachers service providers in delivering Wi-Fi Nigeria towers to IHS with tablets to enhance learning and roaming services, such as the time- reduce school bag weight. Already, Next Five Years to Be ‘Make or intensive process of identifying Wi-Fi over 90 per cent of GCC educational Break’ Moment for Technology providers, negotiation of terms, and institutions use laptops and tablets, Adoption, from Smart Content implementation of Wi-Fi services. while 60 per cent have Bring Your Own Sharing to Real-Time Evaluation, Crucially, the solution also provides Device policies for students, according says GITEX Technology Week 2015 a GSM-architecture-based Wi-Fi to IDC. Jacky’s Business Solutions LLC, Dubai, United Arab Emirates - service using seamless SIM-based an end-to-end solutions provider for The next five years will be pivotal authentication, largest range of user major corporations in the region, as for GCC educators to adopt the equipment & multi-vendor Wi-Fi the 3D Printing Headline Sponsor next generation technology network support, carrier wholesale that can enhance student for GITEX Technology Week 2015, is

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SAMENA TRENDS _ SEPT 2015 SAMENA TRENDS _ SEPT 2015 rates, and GSM-based clearing & three companies from their current look to sell surplus to the rest of the settlement. This facilitates quick eight, growing LPTIC’s holdings to Africa at a later stage,” he says. There service provider setup, swift in excess of $10bn. LPTIC intends to are also plans to resurrect the tender service delivery, and a simplified develop the portfolio by expanding for a management services contract user experience. “Offering existing operations, opening up the related to Libya’s two main mobile the Hub in this region and domestic sector to foreign investment operators. This was something Etisalat connectivity to other Wi-Fi Hubs and acquiring new operations as time had been involved in until the process in other regions will allow EDCH goes on. LPTIC’s portfolio includes the was halted in 2013 amid escalating to extend our footprint towards two state-owned mobile operators, political instability. true seamless and cost-effective Libyana and Al Madar; four fixed-line global Wi-Fi connectivity”, said operators, Hatif Libya, Al Jeel, Libya Nassir Salim, General Manager International Telecoms Company Kuwait telco Zain eyes of EDCH. “We chose to build our and Libya Telecoms & Technology Wi-Fi Roaming service on Accuris Company; a real estate operator technology investments Networks’ Platform to benefit called Al Bouniya, and the Libyan - CEO from the company’s deep industry Post company. Libyan assets generate knowledge and connection “EDCH around $2bn a year of revenue, says Kuwait’s Zain will investment more in is the regional leader in providing Gergab. Beyond this, LPTIC has technology firms in parallel industries innovative cloud-based solutions shareholdings in two of the region’s and is considering buying into two for more than 50 carriers. This biggest subterranean cable companies digital advertising companies, the partnership is strategic to Accuris — EIG, which delivers services across telecom operator’s chief executive Networks towards delivering the Mediterranean between Europe said . Zain, like many Gulf telecoms regional Wi-Fi service using and Africa, and WIOCC, which delivers operators, has suffered as subscriber our globally proven solution capacity around Africa. There is also growth stagnated and replacement architecture and carrier-grade a portfolio of investments, mainly services such as instant messaging service characteristics”, said Jeff in private equity, across Canada, the and Internet-based calls replaced Brown, CEO of Accuris Networks. UK, the Middle East and Europe. They higher-margin text messages and “In using the AccuROAM Platform, include shares in Dubai-based satellite conventional phone calls. These trends EDCH extends our growing communications firm Thuraya, Borsa prompted Zain to seek partnerships number of service providers Italiana-listed Retelit, Measat in the UK and stakes in web-based companies. taking advantage of a worldwide and a majority share in a telematics Last week, it announced a link-up operator-based Wi-Fi roaming company in Canada. Investments with Uber Technologies Inc and has network.” The signing of this outside Libya represent around 5 also invested in three venture capital partnership took place at the percent of the total portfolio. The first funds focusing on digital services. Telecom World’s Middle East event, plank of the strategy is to improve “It’s not about financial gain, (these) which is being held on September service provision in Libya. Projects that give us easier access to see what 14-15 in Ritz Carlton, Dubai. have already commenced are work to the new business models look like,” upgrade the two mobile operators to Scott Gegenheimer, Zain Group chief 4G — “Contracts have been signed and executive, told a conference in Dubai. Libya plans to rebuild we are in the final stages of mobilising “They’re more agile than a lot of the vendors,” says Gergab — and a telecom operators. We don’t have the economy through partnership with UAE telecoms giant time and skill sets to do this in house.” broadband Etisalat to build an ‘iCity academy’ He said Zain was interested in “smart in Libya for up to 10,000 people. It city” initiatives, online advertising and Libya plans to rebuild its economy will be similar to Etisalat’s facility in television services. “Digital advertising one broadband cable at a time, Dubai that provides training across a could be interesting - we’re looking according to the chairman of its range of telecoms-related business, at two companies right now,” said state-owned telecoms company. technical and consultancy services to Gegenheimer. Data provides about As talks continue between United build expertise. The company is also a fifth of Zain’s revenue and this Nations peacekeepers and rival rolling out a fibre to the home (FTTH) proportion is likely to increase. “The factions battling for power, the network. It envisages connecting up amount of data we’re giving away in country is already paving the way every home, office and other building our packages is not sustainable in for the estimated $3bn sector in Libya with the country’s extensive the long run. In Europe, the U.S., the to thrive. Last month, a deal was subterranean broadband network. price for 1 or 2 gigabytes is the same completed to transfer more than a This is a key part of LPTIC’s strategy to as you pay in Saudi Arabia for 500 billion dollars’ worth of telecoms shift mobile penetration from being 95 gigabytes,” said Gegenheimer. “We assets from the country’s sovereign percent voice and 5 percent data, to have to get some of these packages wealth fund, the Libyan Investment 70 percent voice and 30 percent data, under control ... because (otherwise) Authority (LIA), to the Libyan Gergab says, and increase internet you’re not going to be able to Post, Telecommunications and speeds. According to a report by monetise the data.” Zain, Kuwait’s top Information Technology Company Akamai last July, Libya had one of the mobile company by subscribers, has (LPTIC). Under the restructuring, slowest average internet speeds in the operations in eight countries including the country’s shareholdings in world, at 0.5 Mbps. “The [broadband] Sudan, Iraq and Saudi Arabia. Its mobile and fixed-line network fiber infrastructure of Libya covers the Sudan division, which accounts for a operators across Libya and Sub- entire country — around 20,000km of quarter of Zain’s customers and a fifth Saharan Africa — most held within fibers connecting all the main cities. of revenue, made a half-year profit LAP Green, the LIA’s $1bn-plus We have huge capacity through these of $78 million, up 30 percent year-on- telecoms subsidiary — will be underground cables, more than we year. That ended a sustained earnings consolidated into a portfolio of can absorb in Libya, so we would slump and Gegenheimer attributed

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the turnaround to a more stable Yasser Shaker, Mobinil Technology and highly competitive, and is thus full Sudanese pound and easing local VP; Thierry Balouka, Head of Orange of investment opportunities that will inflation. “We’ve hedged a lot of Global Customer Business Team at enable companies to provide multiple our loans so don’t have as much Nokia Networks; Mounir El Aichaoui, services that benefit consumers. problem as before,” Gegenheimer Head of North Africa Market Unit At Etisalat, we seek to provide the said. Sudan’s inflation rate slowed at Nokia Networks; and Hani Adel, latest technologies that add to our to 11.3 percent in August from Head of Mobinil Customer Team at customers and meet their needs. 14.1 percent in July. Nokia Networks. On this occasion, We are leading the market in the Eng. Yasser Shaker, Mobinil Chief field of data, in which the company Technology Officer, said: “We are sought to intensively invest since it Around 75% of UAE proud to host this global center as started its operations in the market. part of Mobinil in Egypt, and thanks Recently, we have invested in the area residents have a to our long-term partner Nokia of cloud computing, to be the first Networks for the excellent support of company in the Egyptian market that 4Mbps connection its committed experts and services. offers this service to its customers. The UAE has the fastest Internet The launch is a testimony to the The telecommunications market is speeds in the Arab world. world-class indigenous talent pool currently highly competitive, and this is According to the latest Akamai we have here locally that supports the a positive factor as it falls in the interest State of the Internet report, introduction of advanced 2G, 3G, 4G/ of consumers. The most important three out of four UAE residents LTE broadband technologies, not only thing the Egyptian market needs right (75 per cent) with broadband for our network in Egypt, but also for now is the improvement in the level connectivity now have a 4Mbps Orange’s networks across the world. of services provided. There are several or better connection, ranking it Thierry Balouka, Head of Orange Global challenges in the sector that must be among the Top 50 in the world Customer Business Team at Nokia eliminated. The most important of (#44). The UAE is at a par with Networks, said: “The Orange Global these challenges is the presence of the US, where 76 per cent have Skill Center is not only a testimony disputes between companies working broadband speeds of 4Mbps or to our support of the Orange Group in the sector, especially in the area above (ranked at #43), and ahead and its affiliates around the world, of infrastructure, and the issues that of countries like Ireland (#48), but also to the long-term strategic arose from steps taken by Telecom France (#49), Australia (#50), Italy partnership between Nokia and the Egypt (TE) towards improving it. (#52) and India (#99). The 4Mbps Orange Group. We provided our most The company has already obtained adoption rate in the UAE surged advanced broadband infrastructure, a new credit facility, in addition to by 73 per cent year-on-year in the software and services to the lab and the current one, worth EGP 7bn, in first quarter of 2015 compared to will continue to provide full support order to cover our growing needs the same quarter last year. In fact, in joint tests and validations to ensure for the development and continuous the UAE led the Europe, Middle that Orange Group operators get the expansions of our networks. The East and Africa (Emea) region in best service delivery possible.” required amount to finance the quarterly growth rates of 4Mbps company’s expansion plans is linked to Broadband Adoption, with a 21 per the size of continuous developments cent increase in the first quarter of Etisalat Egypt targets and the need for them, especially 2015 compared with the fourth in the field of technology. There is a quarter of the year. 10% growth next year: growing need for new financing with CEO the launch of new services, such as the 4G services. It is expected that at Orange Launches Etisalat Egypt aims to achieve growth least EGP 10bn would be invested over rates of up to 10% in the Egyptian the next five years, and this amount Global Lab in Egypt market over the next year, according may increase if attractive investment with Nokia Networks to Engineer Saeed Al-Hamli, CEO of conditions were available, supported Etisalat Egypt. In an interview Al-Hamli by encouraging laws and legislations. Mobinil, part of Orange Group, has said that the growth rate targets come Etisalat Egypt is one of the best models hosted Orange Global Operational as the company plans to invest at least of third entrants in the world, in terms Skill Center for the deployment of EGP 10bn over the next five years. of operational results achieved. The Nokia’s radio technologies. Within Al-Hamli revealed that his company company is seeking to achieve high this role, Mobinil will test and will invest approximately EGP 2.5bn growth rates that guarantee it an validate Nokia’s new products for annually to modernize its networks influential presence in the Egyptian all affiliates of Orange worldwide, infrastructure. This move seeks to market, which is part of the group’s and help them ensure superior improve the level of service provided strategy. We aim to reach a growth voice and data services for their to customers, while the company rate of 10% next year. customers. For this purpose plans to raise its investments in the Mobinil has launched a global local market to EGP 5bn annually. lab in Cairo that includes Nokia’s The Emirates Communications Omantel maintains latest network hardware and Group considers its branch in Egypt, software. This lab will perform all represented in Etisalat Egypt, as one position as sultanate’s the needed testing for Nokia’s new of the most important companies most valuable brand technologies. The two companies in the group that owns operators celebrated the launch of this new in 19 countries across the world. Omantel has seen remarkable growth start-of-the-art center recently Etisalat Egypt is one of the best three that helped the company maintain in Cairo in the presence of Yves companies in the group. The Egyptian its position as Oman’s most valuable Gauthier, Mobinil CEO; Eng. market is a big one. It is diversified brand, according to a recent study by

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Brand Finance, a leading brand Libya investing USD56m director general said: “The concept valuation consultancy. Omantel of the Internet of Things, machine to moved up eight positions to 33rd in Uganda’s UTL machine communication, and big data among the 50 most valuable analysis as part of the important issues The Libyan government is to pump brands in MENA region, a press that will affect vital sectors including USD56 billion into the Ugandan fixed release said on Tuesday. As per the health, education, transport and other and broadband provider Uganda annual survey published recently sectors. As such, it will be one of the Telecom Ltd (UTL) in order to shore by Gulf Marketing Review, the most important pillars of the shift up its ailing business. Libya owns a value of the Omantel brand stood to smart and sustainable cities.” The 69% stake in UTL via the Libya Africa at US$479mn with a growth by name of the new research committee Portfolio Green Network (LAP GreenN), more than 50 per cent compared which is the 20th research committee while the Ugandan government holds to last year when the brand value in the field of telecommunication the remaining 31%. A report from local was estimated at US$319mn. The standardization is “Internet of Things news portal New Vision quotes Libyan growth reflects the improvement and its applications, including smart Foreign Affairs minister Mohamed in the Omantel brand and its ability cities and communities”. It is expected Dayri as saying: ‘Since 2010, we have to be among the top growing that the application of the Internet injected in USD72 million, but we are brands in the region. Omantel of Things’ technology will lead to the going to pump in an additional USD56 also received a ‘very strong’ (AA-) interconnecting of an estimated 50 million in the next two months to be rating in terms of brand strength. billion devices to the web by 2020. in a position to compete fairly.’ He This achievement sheds light This will affect almost all aspects added: ‘I admit a wide range of issues, on the status of Omantel as the of daily life The Internet of Things such as good governance [and] lack leading telecom service provider will contribute to the convergence of state of the art modern equipment in the sultanate and the biggest between the industrial, public utilities, like our competitors … are some of Muscat Securities Market (MSM) health care and transport industries the issues affecting UTL operations.’ listed company. It also comes in amongst many other industries that UTL has been struggling to keep pace recognition of the high quality represent the pillars of Internet of with rival broadband operators such telecom services provided by Things’ technologies and its various as MTN, Smile Communications and Omantel to its individual and applications. Vodafone/Afrimax. corporate customers as well as its wide footprint in the country. Commenting on the achievement, Talal al Mamari, CEO of Omantel, UAE heads global PTA Takes Initiative to said, “We are pleased with this Save WLL Industry achievement, which proves the ‘Internet of Things’ company’s leadership not only in expert group At last, we see a ray of hope as the telecom but in the business sector, Telecom regulatory body Pakistan in general.” “This achievement The UAE was elected as the head Telecommunication Authority not only reiterates Omantel’s of a new research committee for (PTA) spun into action to revive the leadership as a brand, but gives an the Internet of Things (IoT) that was drowning Wireless Local Loop (WLL) indicator of customer satisfaction formed during a recent meeting of industry that was poised to die leaving and loyalty,” he added. “Being the International Telecommunication behind not only people jobless but the leading brand in Oman puts Union (ITU) in Geneva. The group also government loosing over billion further responsibility on us to focus is on implementing the Rupees in bad debt never to be continue improving our services Internet of Things to smart cities and recovered as was in the case of the to ensure that our customers are communities in order to meet the banks a decade back. The icing on the enjoying better experience,” he needs of standardization of the IoT cake is that it will give some breathing added. As per Brand Finance, the technologies. This will be achieved by calculation of the brand value is creating a single platform combining done by using the royalty relief engineers and experts from industry, methodology, which determines telecom operators, ITU Member the value a company would States and concerned organizations, be willing to pay to license its to exchange visuals, examine the brand as if it did not own it. This challenges and solutions while approach involves estimating the coming up with recommendations future revenue attributable to a and unified global standards in this brand and calculating a royalty field. The United Arab Emirates was rate that would be charged for the nominated for the presidency of the use of the brand. The monetary committee, with Nasser Al Marzouqi, value of the brand is calculated representative of the UAE at the ITU as in terms of: Brand strength the chairman of the committee. Saudi index; royalty rate; and, future Arabia, Russia, Japan, Spain, South space to the struggling national brand revenues. This method is Korea, Argentina, Italy, and China company PTCL who will take over considered as the most reliable were all nominated as vice-chairmen management of the company that as it is consistent with the tax and of the Committee, reflecting the great also needed spectrum to survive in the judiciary uses as the calculation interest by ITU Member States in the highly competitive mobile broadband is carried out by an independent work of the new research committee. market. The PTA decision also paves agency. The assessment process is Hamad Obaid Al Mansouri, UAE way for spectrum re-farming making also consistent with ISO standards. TRA (Telecom Regulatory Authority) precious spectrum available for future

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SAMENA TRENDS _ SEPT 2015 SAMENA TRENDS _ SEPT 2015 auction to the current mobile operators to have more spectrum which were being held by state-run operators. In short it is a win-win available to them in near future in view Ziraat Bank as collateral for a loan to for all- specially the consumers, of the fast growing 3G/4G subscribers Cukurova. TeleGeography notes that the government and most of all in the country. It is also important to the USD2.8 billion bid represents a the industry which is crying hoarse note that some rouge elements in significant premium on the USD1.56 on the inflated taxation regime by the industry that are not happy with billion price previously attached to the Federal Board of Revenue. This is the current positive developments on stake. a historic moment for the industry the ICT scene have tried to make this and the country that finally some development like the last year 3G/4G Government body took upon auction look controversial and leaked itself and decided to revive a uncooked stories in the press. Telecom Egypt cuts costs sick Industry using its mind and to replace to fibre optic power vested to it for good cables rather it’s mechanical process and Alfa Group applies lethargic attitude to do nothing Telecom Egypt, the country’s landline as is the trend with government for indirect control of monopoly, considers slashing the total run institutions. The decision to investment cost to replace the copper revive the WLL is a ray of hope Turkcell cables with fiber optic cables below for other struggling telecom Russian-backed Alfa Group has 6 billion Egyptian pounds (US$766.5 industry and maybe a lesson for applied to Turkey’s Competition million). The plan to replace copper regulatory bodies such as PMDC, Authority (RK) to take indirect cables with fiber optic cables aims HEC, NEPRA, OGRA etc., that control of Turkish mobile operator to raise the network efficiency and they need to do more than just Turkcell from Cukurova Holding, provide high-quality communication sit back in their posh offices and reports Hurriyet Daily News, citing a services. The budget of the project will let consumers and industry suffer statement from RK, in a move which be re-studied once so as to reduce the at the cost of their ineptness. The continues a long-run feud between costs. WLL operator DVcom litigation Alfa and Cukurova for ownership of remained pending before different the company. An unnamed source is courts of law for over a decade. said to have informed Reuters that STC planning to invest Finally, the Honorable Islamabad the battling companies have been High Court remanded the case in discussions regarding the matter: US$1bn in networks in back to PTA, with the directions to ‘This latest move must be a tactical or H2 2015 decide the matter afresh and give formal application. Alfa made an offer opportunity of hearing to DVCom. to Cukurova last March … Cukurova Saudi Telecom Company (STC) is It is important to note that due to said the [offer could not be evaluated] planning to spend SAR3.9 billion minor issues in roll-out obligations as it has applied to an international (USD1.04 billion) on enhancing its with PTA and the ministry in the last arbitrator in London.’ However, the networks in the second half of 2015, 6-7 years the company was forced same source disclosed that in order STC’s chief executive Khaled al-Biyari to accumulate huge debt as late to take control of the Turkish cellco, told Reuters. The outlay mirrors STC‘s payment charges that exceeded Alfa also needs to acquire permissions capital expenditure in the first six even the principal amount to be from public authorities, including months of 2015, while also bringing paid in lieu of Spectrum acquired. the RK, the market watchdog (SPK) full-year CAPEX to a four-year peak. PTA quite recently in a post remand and the communication board (BTK). ‘STC is continuing to invest in both hearing restored license of DVCom Arbitration sessions are now expected mobile and fixed [networks] and that completed its obligations and to take place next spring. As at modernizing our IT systems – we want cleared outstanding dues amount August 2015 Turkcell’s shareholder to ensure our network is second to to the tune of around Rs1.43 structure was reported as follows: none … The growth in data traffic we’re billion. PTA also allowed change Turkcell Holding owns a 51.00% experiencing is unmatched … which is in management of a licensee/ stake, TeliaSonera owns 14.02%, putting stress on the network.’ Biyari telecom company under the Cukurova Holding owns 0.05%, and also confirmed that STC’s 35%-owned regulatory framework so that the the remaining 34.93% of shares are subsidiary Oger Telecom was seeking spectrum given is put to good use. publicly traded on the New York Stock to sell its majority holding in South PTCL- the State owned company Exchange (NYSE) and the Istanbul African mobile operator Cell C. is reportedly taking over the Menkul Kiymetler Borsasi (IMKB). ‘Optimizing the portfolio is something company and its asset and also Turkcell Holding is itself owned by that is at the top of my agenda,’ future liabilities. PTCL has also TeliaSonera (47.09%, giving it a 37.09% said Biyari. ‘We want to ensure our shown interest to acquire some overall stake in Turkcell) and Cukurova investment portfolio brings in value.’ As other WLL companies that are Holding (52.91%, for a 26.98% overall previously reported by CommsUpdate, struggling to survive that could interest). Cukurova Holding is majority in February 2015 it emerged that Oger provide a very healthy trend for controlled by the Turkish Cukurova was planning to divest its stake in Cell companies to avoid possible Group (51%, or a 13.76% overall C, though the valuation of the cellco defaults on their obligations. stake in Turkcell), with 18.5% held by and its current debt were cited as the Meanwhile, the PTA is also reported Alfa Group (4.99% overall stake in main issues blocking Oger’s exit from to make arrangement that the Turkcell). As previously reported by the company. TeleGeography notes WLL industry re-farm the existing CommsUpdate, in March 2015 Alfa that in January 2015 Oger’s parent STC spectrum given to them sometime reportedly bid USD2.8 billion for the wrote down a ZAR1.2 billion (US$102 back that is globally used for disputed 13.76% Turkcell stake. Alfa million) investment in Oger Telecom, 3G/4G Services that shall pave way offered USD54.9 million per share attributing the impairment to its for the current mobile network for 51 of Turkcell’s Class B shares, investment in Cell C.

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Regulatory NEWS

RCom edges closer to Telcos miss out on $18bn towers sale due to inefficient WiFi use Reliance Communications is closing in XCellAir claims better spectrum utilisation, on a sale of its towers business Reliance interference management could help Infratel, with four bidders still in the operators attract new customers More frame, it emerged this week. Unnamed efficient use of WiFi spectrum and smarter interference management sources cited by the Economic Times on could yield a US$17.9 billion windfall for Thursday claimed the Indian operator is mobile operators, claimed WiFi quality- holding final talks with private equity firms of-experience (QoE) specialist XCellAir Farallon Capital, Carlyle, Tillman Capital, as on Thursday. “It’s in operators’ interest well as American Tower. According to the to take more control of WiFi, especially Regulatory report two suitors want to acquire Infratel in locations where they want to provide outright, while the other two want to buy more of a service as opposed to just Updates 51%. “RCom would prefer to completely purely offloading customers,” said Todd exit the tower business even if the deal Mersch, co-founder of XCellAir. “Not comes at a slightly lower valuation as only does that make sense, in that your customers will have a better experience, it needs the funds to reduce its debt,” but it also can deliver revenue.” XCellAir said the ET’s source. At the end of June, set about illustrating just how inefficiently Reliance Communications’ net debt stood WiFi is being used today by recreating at 385.96 billion rupees (€5.15 billion). a typical urban public WiFi deployment Reliance Infratel is 96% owned by RCom using 250 access points around its offices and is reportedly valued at INR200 billion- in Montreal, Canada. Analysing the INR240 billion (€2.67 billion-€3.2 billion). performance of the hotspots revealed that It boasts 45,000 cell towers. According 92% of them do not switch to a different to the ET’s source, the due diligence channel despite performance degradation process is expected to be complete in two caused by interference from neighboring hotspots. Furthermore, on average, two weeks, followed by final binding bids and channels worth of bandwidth remain financial commitments in a further two unused at any given time, resulting in weeks. around 100 Mbps of untapped capacity. XCellAir then commissioned Real Wireless to work out the potential cost-savings and revenue opportunity for a mobile operator that addressed these inefficiencies. The research firm modeled its calculation on

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an hypothetical mobile operator with in the 1400MHz band to Vodafone approvals for the deal. The Italian a 25% share of the market, a limited UK and Hutchison 3G UK (Three government may have given the go- amount of LTE spectrum, and an UK), respectively. In late-August this ahead, but the companies still need extensive WiFi footprint in New York year Ofcom received a notice of the to win over European competition City. “We were pleasantly surprised proposed spectrum transfer from commissioner Margrethe Vestager, how much financial benefit there was,” Qualcomm, in which the latter said it who recently succeeded in preventing said Mersch. Real Wireless found that was looking to hand over the rights and a mobile merger in Denmark on the over five years, the operator would obligations related to the 1452MHz- save $71 million by delivering capacity 1472MHz block to Vodafone UK, while grounds that the market needs four at a lower cost. “Another $303 million doing the same for the 1472MHz- mobile network operators to remain essentially comes from being able to 1492MHz block to Three UK. As part of competitive. The situation in Italy is generate new revenue,” said Mersch. its examination of the proposal Ofcom more akin to the the U.K. than it is “A large percentage of that was being launched a consultation which ended Denmark though. The Wind/3 Italia able to capture more price sensitive on 11 September 2015. It was revealed tie-up will leave three players of users” attracted to services like voice that just a single submission had been roughly equal size; the market’s third over WiFi (VoWiFi). This would have made, expressing ‘the view that the operator, Vodafone, had 24.9 million the effect of increasing the operator’s transfers would not harm competition customers at mid-year. And Canning market share by 3% over the five-year and had the potential to make good Fok, co-CEO of CK Hutchison is period, he explained. Scaling Real use of the spectrum’. As such, the confident of seeing through both his Wireless’ model to the world’s top regulator has said it does not consider Italy and U.K. deals – the company is 10 financial centres – London, Tokyo, the spectrum transfers ‘raise sufficient in the process of buying O2 UK from Singapore, Hong Kong, Shanghai, competition concerns to justify further Paris, Frankfurt, Beijing, Chicago, and analysis’, in light of which it will grant Telefonica – to completion. He told the of course New York – that combined its consent to each of the proposed FT recently that, when it comes to the cost saving and revenue opportunity trades and will issue the relevant new regulatory situation, he is confident of comes to $17.9 billion. Unsurprisingly, licences to Vodafone UK and Three coming up with a solution “in which XCellAir claims to hold the key to UK once Qualcomm surrenders its everyone is comfortable.” making WiFi work harder for operators. concession. Its cloud-based software-as-a-service (SaaS) enables any service provider Russian telcos line up for with WiFi assets – be it an ISP, telco, or Italian government will cableco – to monitor interference and spectrum auction spectrum utilization across its WiFi not veto Wind, 3 merger footprint. It can automatically make Regulator announces names of the adjustments necessary – such as Mobile merger still requires regulatory participants for 1800 MHz sale that switching channels or tweaking power backing, but shape of market could act is due to get underway next week. levels – to improve performance. in its favor. The Italian government will Russia’s four main mobile operators will XCellAir has struck up relationships not stand in the way of the planned take part in the auction of 1800-MHz with unnamed cablecos in the U.S. and merger between Wind and 3 Italia. The spectrum due to take place next week, has met with operators and cablecos cabinet agreed to a proposal by the the regulator announced on Tuesday. in Europe, as well as telcos and ISPs in Ministry of Economic Development Roscomnadzor said it has processed India and the Far East. “We’re starting not to exercise its right of veto in the applications from MTS, Vimpelcom, trials right now with a view to starting case, the government announced on MegaFon and , and all four will commercial deployments in the Tuesday. However, the state has asked be able to participate in the auction. It middle of next year,” said Mersch. the companies to provide certain also revealed that the auction will be information regarding the impact of carried out electronically. In July the their tie-up. Amongst other things, the regulator announced that the auction Ofcom gives nod for firms must confirm that they do not of airwaves in the 1710-1785 MHz and Qualcomm 1400MHz have plans that would compromise 1805-1880 MHz bands will take place national security or the continuity of on 29 September, and shared reserve spectrum trade to services, such as moving management prices for the available frequencies. Vodafone UK, Three UK functions overseas, for example. The state is selling off spectrum in Vimpelcom’s Wind and CK Hutchison- nine regions and has divided the UK telecoms regulator Ofcom has owned 3 Italia signed a €21.8 billion bandwidth into 10 lots, all at different published a decision confirming it will merger agreement in August. The pair price points. The lowest starting price allow the UK subsidiary of Qualcomm intend to create a 50:50 joint venture is half a million roubles (just under to transfer two tranches of spectrum to create a stronger competitor in the €8,000 at July exchange rates) for 1 Italian mobile market. Together the MHz of paired spectrum in the Komi- pair have around 31 million mobile Permyak Okrug of Perm Krai, while 15 customers which could put them MHz of spectrum in the republic of ahead of market leader TIM, with 30.1 Dagestan starts at RUB240.4 million million as of the end of June. The firms (€3.8 million). There are no restrictions are much smaller than Telecom Italia on what type of mobile services the on the fixed-line side though, which spectrum can be used for. While the could be an area of focus for the new 1800 MHz band was previously set entity on completion of the merger, aside for voice communications, given the growing trend towards Roscomnadzor expects the winning bundled and converged service bidders in this auction will use the offerings. In the meantime though, the frequencies for LTE. operators need to secure regulatory

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Telenor drops Uninor TRAI to firm up position Policy proposes storage brand in India on net neutrality of all messages on Norwegian operator targets India’s Amid continuing debate over net WhatsApp, SMSs et al unconnected population, reaffirming neutrality, TRAI Chairman R S Sharma its position as a value player. Telenor today said the regulator would for 90 days announced that it is rebranding its firm up its position on the issue in Government of India has proposed Indian operations as part of a renewed a couple of months. The telecom to make storage of all encrypted focus on positioning the company regulator is now processing nearly messages, including SMSes and as a low-cost player. The operation, 1.8 million comments received on the emails, sent from any mobile device consultation paper pertaining to the or computer mandatory for 90 days regulatory framework for OTT (Over under the New Encryption Policy. the Top) players like WhatsApp and The draft of New Encryption Policy Skype as well as on net neutrality. proposes that users of encrypted Against the backdrop of debate on messaging service on demand should net neutrality, the government had reproduce same text, transacted said that it would take a structured view on the matter after getting the TRAI report. “We had a large number of comments, 1.8 million to be precise, and these comments are being processed. Simultaneously, the Department of Telecom also brought out a paper on net neutrality on which some comments were received. “So, essentially we will take which has sported the Uninor brand this entire debate forward and in a since it launched services in late 2009, couple of months we will be able to will become Telenor India. Essentially, firm up the position on net neutrality,” it appears that Telenor is going after Sharma said here. He was speaking people who have yet to sign up for to reporters on the sidelines of a mobile services, who will therefore be Skoch summit. Net neutrality implies low-ARPU users. “This is about more that equal treatment be accorded to than changing a brand name,” said all Internet traffic and no priority be during a communication, in plain Telenor CEO Sigve Brekke. “By taking given to an entity or company based format before law enforcement a broader, value-driven position, on payment to content or service agencies and failing to do so may Telenor India will appeal to new providers such as telecom companies, lead to imprisonment of the user as audiences with innovative services which is seen as discriminatory. The per the provisions. The proposed and a customer-first approach,” Brekke debate on net neutrality was sparked policy, issued by the Department said, adding that a large proportion off a few months ago after some of Electronics and Information of the Indian population remains telecom operators and Internet Technology, would apply on everyone unconnected to “modern” telecom companies came up with plans that including government departments, services. Teledensity in India stood at offer preferential treatment in using academic institutions, citizens and almost 80% at the end of June, falling the Internet. Earlier, a Department of for all kind of communications -- to just 48.7% in rural areas, according Telecom (DoT) panel had suggested be it official or personal. Generally, to the latest figures from the Telecom a ‘regulatory framework’ for Internet all the modern messaging services Regulatory Authority of India (TRAI). calls. The suggestions of the panel, like WhatsApp, Viber, Line, Google There were just over 1 billion telephone if implemented, may lead to free Chat, yahoo messenger etc, come subscribers in the country at that date, calls offered by apps like Skype and with high level of encryption and the regulator’s numbers show, the vast WhatsApp coming to an end. The many a time security agencies find majority being mobile customers. With panel has proposed regulation of it hard to intercept these messages. a population of around 1.25 billion, domestic calls on Internet-based apps “All information shall be stored by and taking into account that official like Skype, WhatsApp and Viber by the concerned B/C entity for 90 days figures do not factor in multiple SIM putting them on par with services from the date of transaction and ownership, that leaves a significant offered by telecom operators. In July, made available to Law Enforcement market to aim for, in volume terms Telecom Minister Ravi Shankar Prasad Agencies as and when demanded in at least. “Two decades in Asia and six had said that DoT panel report was line with the provisions of the laws years in India have taught us how to not the final view of the government of the country,” the draft said. The make mobile communication services and a “structured” decision would be draft has defined ‘B category’ as all available to even more people,” taken only after looking into views statutory organizations, executive Brekke said. “Our colleagues in India of all stakeholders. “After the TRAI bodies, business and commercial have shown the way and it feels both report, we will take a structured view. establishments, including all Public natural and like a pleasure to attach Thereafter, Cabinet will take a final Sector Undertakings, Academic the Telenor name directly to the local decision,” he had said. institutions. The ‘C category’ as per operations,” he added, pledging to the draft are all citizens including “continue to deliver value for money,” personnel of government and business in the market.’

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performing non-official or personal Geocell in Georgia, Kazakhstan’s Kcell after which that spectrum is auctioned functions. In case of the user has and Moldovan operator Moldcell. The afresh) or because the government communicated with foreigner or entity announcement came after TeliaSonera refarmed the bands and made abroad then the primary responsibility revealed that it plans to exit its Eurasian available unused (and unsold) bits and of providing readable plain text along operations with a view to focusing pieces. Thanks to the change in these with the corresponding encrypted on the European market. TeliaSonera two policies, telecom operators can information would be that of the user holds a 58.55% stake in Fintur, with now beef up their holdings to offer in the country. Besides this all service Turkcell owning the remaining 41.45%. better, and new, services. One band providers located within and outside Fintur owns the four aforementioned that nearly all operators are likely to India that use encryption technology mobile firms, which all effectively want more of its 1800MHz—that’s the for providing any type of services in operate as TeliaSonera subsidiaries; band on which they can offer both 2G India must register themselves with their results are consolidated under and 4G (FD-LTE) services. That apart, the government, as per the draft. The TeliaSonera’s and they follow the these companies may also go after draft proposes to introduce the New Swedish telco’s branding style. “In individual bands in specific circles and Encryption Policy under section 84 A order to explore our strategic options fill up the gaps in their current basket, of Information Technology Act 2000. to acquire the remaining stake in across technologies and circles. (2G This section was introduced through Fintur, we have initiated the process technology allows basic voice services, amendment in 2008. The sub-section to appoint a strategic and financial and the subsequent 3G- and 4G-based 84 C that was also introduced through advisor,” Turkcell said. It noted that technologies allow for increased data the amendment has provision of taking over the four mobile operators capacity and speeds.) For instance, imprisonment for violation of the is “in line with [its] growth strategy Ltd, India’s largest telco act. “Encryption products may be in the region.” In June the Turkish by subscribers, revenue and total exported but with prior intimation to operator took sole control of Ukrainian spectrum holding, could get the the designated agency of Government mobile operator life:), agreeing to pay 2300MHz in circles where it does not of India. Users in India are allowed to US$100 million for 44.96% stake in have the airwaves to offer 4G (TD-LTE) use only the products registered in Euroasia Telecommunications Holding based wireless data services. Bharti India. Government reserves the right that it did not already own; Euroasia has a block (20MHz) of 2300MHz in to take appropriate action as per Law owns 100% of Astelit, which operates nine circles, compared to Reliance of the country for any violation of this under the life:) brand. At the time, new Jio Infocomm Ltd that holds 20MHz Policy,” the draft said. CEO Kaan Terzioglu said the Ukraine of that band in all 22 circles. In key would serve as a test bed as Turkcell markets like Gujarat and Western Uttar moves to strengthen its international Pradesh, the telco has no 2300MHz or Turkcell looking to operations. TeliaSonera, meanwhile, 900MHz spectrum, while in the Kerala is also a Turkcell shareholder. Earlier and Punjab circles, the telco has no acquire some TeliaSonera this year Turkcell’s shareholders finally 3G (2100MHz) spectrum. However, Eurasia assets reached agreement on the payment of Bharti could run the risk of hitting the dividends for the five years between spectrum cap limits for cumulative Turkish telco keen to buy Swedish 2010 and 2014, something that helped holdings across the country, if it does partner out of Fintur, which controls TeliaSonera improve its free cash flow acquire the necessary spectrum in four mobile operators in the region. in the second quarter. all these bands. Telcos like Vodafone Turkcell on Wednesday announced India Ltd and Idea Cellular Ltd are that it is looking at its options mainly focused on 3G services, and regarding the possible acquisition India government policy analysts expect them to increase their of some of TeliaSonera’s assets in spectrum holding in the 2100MHz the Eurasia region, assets in which on spectrum trading, band, either via the next auction or by it already holds a stake. The Turkish sharing could boost pooling resources (sharing) with each mobile operator said that it is working other and Bharti. The 3G based services on taking control of Fintur, the holding service quality are fast becoming the minimum norm company through which it and With the government approving of data services across the country, spectrum trading and spectrum making it increasingly important to sharing policies, the country’s telcos be available in every circle. Vodafone finally have other avenues to acquire has the necessary 2100MHz spectrum the much needed radiowaves outside in 15 circles while Idea has it in 11 of the auction mechanism—a move circles. The government is expected expected to significantly improve to auction 15MHz of 3G spectrum the quality of services as well as the across most parts of the country next financial health of the sector. So far year. R-Com’s right to use its mainstay the only way a company could get 800MHz band spectrum is due to more spectrum was by bidding for start expiring in 2021, just six years it in an auction that the government from now, potentially reducing its conducts. The problem with that appeal to possible sharers. RComm system has been long waits for has also announced it is in talks with the telcos for significant chunks of Sistema Shyam Teleservices (that runs airwaves to be up for grabs—either the MTS brand in nine circles). This is TeliaSonera own four mobile operators because a current holder’s lease on it mainly to ensure business continuity in the region: Azercell in Azerbaijan, expired (licenses typically last 20 years for the company that failed to get

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SAMENA TRENDS _ SEPT 2015 SAMENA TRENDS _ SEPT 2015 replacement spectrum in the last whether or not it should be referred directors approved the new rules auction. Another option for R-Com for an in-depth investigation under governing ownership, according to a to get access to the 800MHz band the provisions of the Enterprise Act statement on Sunday. Government- is via a share deal with Jio, which 2002,” the CMA said. CK Hutchison run Etisalat is worth nearly twice as has that spectrum in that band in 10 agreed to acquire Telefonica’s O2 much as the second biggest listed circles that do not overlap with MTS. unit in the U.K. in March for £10.25 UAE company, but its publicly- Aircel could also enter the mix with billion and submitted the proposed traded shares can only be owned its 2300MHz spectrum in eight circles deal to the European Commission by UAE nationals and all institutions and 3G spectrum (2100MHz) in 13 for examination late last week. The are excluded. In June, Etisalat said it circles, either by selling or sharing. Commission’s competition department would loosen these rules to permit Analysts do not expect the telco to be has set a provisional deadline of 16 foreign and institutional investors to a net buyer. Videocon is also expected October to make a ruling on the own shares worth up to 20 percent to be a net seller of its 1800MHz case. The submission coincided with of the company, but said last month spectrum in six circles with efficiencies the collapse of the planned merger that these shareholders would not be in combining with all the four major between Telenor and TeliaSonera granted voting rights. operators. Uninor is expected to be a in Denmark. The telcos pulled out net acquirer. There are, however, some of their deal having failed to reach China achieves challenges to sharing and trading, agreement on competition remedies albeit minor. These include the fact with the European Commission. New broadband development that the spectrum in question needs competition commissioner Margrethe goals ahead of schedule to be liberalized (meaning, the market Vestager insists that Denmark requires price is paid to the government four mobile operators in order to China has already achieved most and the telco is not restricted from protect competition, something that of its broadband development deploying any technology it wishes could be bad news for Hutchison, goals for 2015, Chen Jiachun, the on the airwaves). Then there are the since the 3UK/O2 tie-up also deputy director of information and spectrum caps, which could mean the reduces the number of players in communication development at the telcos may prefer to share spectrum the U.K. market to three. However, Ministry of Industry and Information rather than trading it. In sharing, only the competitive dynamics of the two Technology (MIIT), was quoted as 50% of the airwaves shared by each markets are different – following the saying. C114 writes that the targets telco is considered. But that may not 3UK/O2 merger the U.K. would be left included signing up 40 million new reduce the impact of a higher outgo with three strong players of roughly fiber-optic broadband subscribers and (in terms of revenue share with the equal size, for example – and Vestager 200 million LTE users, and increasing government) due to trading. Market herself has been keen to note that she the proportion of customers utilizing leaders like Bharti Airtel, Vodafone will judge each consolidation case on download speeds of at least 8Mbps and Idea have been clamoring for its own merits. to 55%. Coverage of fiber-optic more spectrum and are expected to networks, meanwhile, was scheduled be the likely buyers. to be rolled out to 80 million more UAE’s Etisalat to open homes and businesses, whilst 600,000 new base stations were also lined UK competition body shares to foreign, up. Commenting on the progress, the official explained that 94 million may ask to oversee 3UK/ institutional buyers broadband subscribers used fiber- O2 merger September 15 to-the-home (FTTH) connections at The U.K. competition watchdog is considering asking the European Commission for the right to examine CK Hutchison’s proposed acquisition of O2 UK. The Competition and Markets Authority (CMA) on Wednesday invited comments on the proposed merger of 3UK and O2. It is seeking views on the impact of the deal on competition in the U.K. market and on whether it would be appropriate for the case to be referred to the CMA for investigation. The invitation to comment closes on 24 September. The CMA did not say when it will make a decision on the European Commission request. “If any such request were United Arab Emirates made by the U.K. and the Commission end-July – an increase of 75% year- telecommunications firm Etisalat decided to grant such a request, the on-year – whilst the proportion of will allow foreign and institutional CMA would examine the proposed 8Mbps connections passed hit the investors to own its shares from merger further with a view to deciding 56% mark at that date. In terms of September 15 after its board of infrastructure, by the end of June 2015

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9.7 million kilometers of fiber-optic Free Wins Regulatory Takorn Tantasith as saying that the cabling had been installed, including regulator ‘will have to auction only five terrestrial cables connecting Battle with Orange two licenses of 25MHz of bandwidth, to Association of Southeast Asian with each license of 12.5MHz, instead Orange, -SFR get green Nations (ASEAN) countries, and three of two licenses of 15MHz each.’ Mr. As part of a dispute between Free international submarine cable routes. Takorn explained that the approved and Orange, the French telecoms Mr. Jiachun also noted that the rapid auction plan to include an additional regulator, Arcep is ordering Orange to pace of the broadband infrastructure 5MHz of spectrum currently allocated lift unfounded restriction measures on development in China was helping to Digital Total Access Communication its unbundling services. In response to promote the country’s booming (DTAC) requires amendments to to an application by Free, Arcep e-commerce sector, with Lu Wei, the DTAC’s build-transfer-operate (BTO) has settled a dispute over the price director of China’s national information mobile concession issued by state- charged for active equipment hosting office, adding that the e-commerce owned CAT Telecom, which will solutions at Orange “NRA” subscriber transactions exceeded CNY16 trillion take several months to complete connection points and “NRO” fiber (USD2.51 trillion) in 2014, up nearly before being submitted to the Thai concentration points (FCP), and for 60% year-on-year. cabinet for approval. The concession “LFO” fiber backhaul solutions when amendment is necessary in order to they are used to relay traffic from comply with the Public-Private Joint mobile base stations connected to Venture Act. The Post’s report adds Japan PM’s policy telco networks over . that Sanpachai Huvanandana, acting Arcep concluded that Orange cannot statement for lower president of CAT Telecom, admitted he charge Free an addition fee for this learned only last week that the return mobile bills affects new application. Indeed, current of the 5MHz would need concession regulation[ stipulates that the prices telco’s shares amendments. DTAC nominally holds charged for hosting solutions at 50MHz of 1800MHz bandwidth under The Japanese Prime Minister Shinzo Orange subscriber connection points the 2G BTO concession with CAT, due Abe’s recent call to the Ministry of and fiber concentration points to to expire in 2018, although it only uses Internal Affairs and Communications relay traffic from mobile base stations 25MHz; the 5MHz portion is part of (MIC) to consider ways of lowering connected to a fiber network must the unused 25MHz. mobile phone bills in the country, be cost-based. Arcep concluded that which he sees as becoming an Orange could not charge Free an increasing burden for householders, additional fee when the latter was has sparked a sell-off in shares of employing its “LFO” fiber backhaul Japanese mobile carriers and a solution to backhaul traffic from dramatic slide in share prices. The PM’s cellular towers connected to telco intervention came during a Cabinet networks over optical fiber, in addition Office panel on economic policy last to fixed network traffic. In particular, Friday when he declared: ‘Lightening the Authority concluded, on the one the burden of cellphone bills and hand, that charging different prices for other expenses on household budgets passive fiber backhaul links depending is a critical task.’ The policy aim was on the use being made of them and met coolly by investors though, and the type of network connection being share prices began tumbling on used by cellular sites, runs counter Monday, with the three leading cellcos to the objectives of fair and effective – NTT DOCOMO, KDDI and Softbank competition that is beneficial to Group – plus fixed line operator NTT users, and of fostering innovation and Corp losing a combined JPY4 trillion technological neutrality and, on the (USD32.8 billion) over just two days. other hand, that there was no evidence The Nikkei reports that KDDI fell 6% to justify Orange’s appropriation of on Tuesday to its lowest price since the value derived from its competitor’s February, while Softbank sank to a own investments. year-to-date low and DOCOMO shed 4% on Tuesday after dropping 10% the previous day. The three cellular giants Full 1800MHz bandwidth have pulled the Nikkei Stock Average down roughly 160 points this week so not available at auction far, while concerns are mounting that in Thailand investors are unlikely to return until the full details and impact of Prime The full amount of 4G 1800MHz Minister Abe’s cost-cutting policies are spectrum promised for auction this made clear. November is unlikely to be available, Thailand’s National Broadcasting & Telecommunications Commission (NBTC) has admitted. The Bangkok Post quotes NBTC secretary-general

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A snapshot of regulatory activities in samena region

the fifth, Afghan Telecom, was almost Afghanistan irrelevant at that stage with less than 1% Chairman: Dr. Mohammad of the mobile subscriber base. Indeed Najib Azizi [Afghanistan Telecom Afghanistan has a highly competitive Regulatory Authority (ATRA)] mobile market that continues to flourish Afghanistan continues to be confronted despite the background of the ongoing on the widest possible front by the conflict throughout the country. Not challenges of moving from a fragile surprisingly the mobile sector has been Regulatory present into a more stable and positive boosted by the absence of effective future. By 2015 despite the positive fixed-line alternatives. In the meantime, Updates signs of a civil society taking shape, internet penetration remained generally the country was still suffering from the low throughout Afghanistan. With ongoing conflict. After many years of war internet access initially relying heavily and civil strife, an encouraging aspect of on dial-up services and an extremely the country’s efforts to rebuild has been low number of broadband subscribers in the considerable success evident in the place, the online segment of the market creating a functional telecommunications was looking for a boost. That boost came sector virtually from nothing. According in the form of 3G mobile licenses. The to the Ministry of Communications 3G services being offered by the various and Information Technology (MCIT), operators had been launched in 2013 the telecommunications networks and were providing a special opportunity covered almost 90% of the population for delivering mobile broadband to by 2015. Efforts were made to roll out Afghanistan’s population. By mid-2015 fixed-line services, but the country’s there were around two million 3G mobile telecommunications services rely heavily broadband subscribers in the country; on its mobile infrastructure. There were however, this was only 8% of the total five mobile operators competing in mobile subscriber base. The political and Afghanistan’s telecom sector by 2015. civil stability of the country is a dark cloud Between them they claimed a total of hanging over the country; it is of course almost 24 million subscribers, with an a particular threat to the effectiveness overall mobile penetration of 75% by of the telecommunications network and that stage. Four of the five were carrying the viability of the telecommunications market shares in excess of 20%, while sector. Nevertheless, there does appear to

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be a will to secure the future of telecommunications in of Transportation and Telecommunications Kamal bin Afghanistan. (September 7, 2015) budde.com.au Ahmed Mohammed stressed, during the visit, his support and appreciation for CITRA’s initiative to be briefed on TRA’s experience in developing the telecommunications Algeria sector in Bahrain. The Kuwaiti delegation was briefed President: Mr. Toufik Bessai on a range of subjects, such as mobile and high-speed [Regulatory Authority for Post & broadband services, international supply, digital security Telecommunication (ARPT)] and Internet ecosystem. The delegation included CITRA’s chairman and CEO Salim Muthaib Alozainah, vice Telecom regulator ARPT has approved the draft chairman Khalid Alkandari and two CITRA’s executive interconnection offers submitted by domestic mobile board members Waleed Alqallaf and Saud Alzaid. operators Ooredoo Algeria (Wataniya), Mobilis and (September 20, 2015) arabianindustry.com Optimum Telecom Algeria (OTA, Djezzy), and fixed line provider Algerie Telecom (AT) for the period 1 July Telecommunications Regulatory Authority (TRA) in 2015 to 30 June 2016. According to Decision 52/SP/PC/ cooperation with Bond University Australia held a ARPT/2015, Mobilis Algeria will charge DZD2.2 (US$0.02) four day workshop on “Culture Transformation” at per minute for termination of mobile traffic in 2015- the Four Seasons Hotel in Manama, which began on 16, while SMS and MMS will be priced at DZD1.8 and September 6, 2015 and attended by a number of TRA’s DZD15.0, respectively. OTA’s interconnection offer for the staff from different specializations and experiences. The aforementioned period, meanwhile, was adopted with workshop is the latest in a long standing effort by the Decision 54/SP/PC/ARPT/2015; the operator will now TRA in changing the organizational culture of TRA staff charge DZD1.10 per minute for termination of mobile members, and considered the second phase of Bond traffic over its 2G/3G networks, while termination of SMS University’s collaboration towards the same goal. The and MMS will be priced at DZD1.80 and DZD5.0. For its findings concluded by Professor James Carlopio from part, fixed line incumbent AT will charge DZD3.0 per Bond University who presented the workshop, on the TRA minute for terminating local calls over its fixed network, from a series of staff interviews which were conducted while international long-distance (ILD) calls will cost in April were shared with the TRA last week which DZD4.0 per minute. International VoIP calls will be priced resulted in forming a committee with representatives at DZD6.0 per minute, with termination of national VoIP across the TRA. The committee will be dedicated in the calls costing DZD3.0 per minute. continuous formulation and execution of projects which (September 23, 2015) telegeography.com will help transform the TRA to an improved culture, with the professor’s findings and discussions in mind. TRA Telecom regulator ARPT has agreed in principle to Director of Finance and Human Resources, Mr. Faisal accelerate the deployment of 3G networks, according Al- Jalahma stated that “This journey towards a culture to Minister of Posts, IT and Communications Imane of excellence began in 2012 and we have now reached Houda Feraoun. The Algerie Presse Service (APS) reports our peak. We have handed the task of transforming that the telecoms ministry recently asked the ARPT to our culture to a committee of young directors and examine the possibility of fast-tracking 3G rollouts champions who will drive these changes.” Mr. Al Jalahma across the country’s 48 provinces, as several regions continued, “Transforming our culture is important are still only covered by 2G networks. ARPT awarded 3G to the Authority, as it will create a high performance licenses to all three domestic cellcos – Mobilis, Nedjma/ mentality within TRA. As TRA always operates in a lean Ooredoo and Djezzy – in December 2013; according to and efficient structure where we execute projects and the rollout obligations, the three operators must cover initiatives, and giving our young cadres the opportunity the entire national territory with 3G services by end- to demonstrate and continuously practice the values 2018. Meanwhile, the Algerian government is planning of good leadership.” Professor James Carlopio was also to raise VAT on 3G mobile data services from 7% to quoted in saying that “It’s nice to have goals, but how 17% in its 2016 budget, while telecoms operators will to get there is an important aspect many organizations be liable to pay 2% of their turnover in tax. ICT Minister miss or disagree upon. You need to know where to start Imane Houda Feraoun said that due to falling oil prices in order to reach your goals and I hope to do that here. several ICT investment programs would be frozen, One of the objectives for the attendants or “Champions” though she disclosed that the cuts are not expected to here under Cultural Transformation is to understand affect Algeria’s national fiber rollout. TRA’s values, believe in them and live them.” (September 15, 2015) Agence Ecofin (September 16, 2015) tra.org.bh

Telecommunications Regulatory Authority (TRA) Director of Cyber Security Dr. Khalid Bin Duaij Al Khalifa headed Bahrain Bahrain’s delegation to the US-GCC Cyber Security Chairman: Dr. Mohammed Al Amer Strategic Cooperation Forum at the Secretariat- General [Telecommunication Regulatory Authority (TRA)] Headquarters in Riyadh, which took place on August 31 to the September 1, 2015. The Cyber Working Group, The Telecommunications Regulatory Authority which is made up of US and GCC Delegations from of Bahrain (TRA) has received delegates from the multiple agencies that have a role in Cyber Security, Communication and Information Technology Regulatory was established after the May 14 Camp David Summit Authority (CITRA) from the Kuwait to gain knowledge with GCC leaders, where the United States and Gulf and information about TRA’s experience in developing Cooperation Council Countries agreed to several lines the telecommunications sector in Bahrain. Minister of effort related to improving cyber security in the GCC. The forum provided a platform to discuss and assess

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GCC countries’ cyber security readiness and to explore Standard. Bharti reportedly aims to firstly sell its cellular possible areas of cooperation in developing policies tower businesses in the two countries followed by the and plans to protect critical infrastructure against cyber mobile operating divisions. Airtel currently operates threats, to promote information sharing on cyber issues around 4,000 towers in Bangladesh and 2,500 towers and to provide cyber security assistance. The forum in Sri Lanka. Airtel’s quarterly revenue in Sri Lanka also facilitated government wide discussions on cyber and Bangladesh fell 11% in April-June 2015 to INR3.8 issues, and the multilateral consultations for regional billion (US$57.3 million), while its mobile subscriber cooperation against cyber threats. After the working market share stands at roughly 7% in both South Asian group’s meetings were concluded, Dr. Khalid Bin Duaij countries. (September 1, 2015) telegeography.com Al Khalifa said in a statement that “Cyber Security is a matter that requires international cooperation and knowledge sharing. It is a high priority for the Kingdom Egypt of Bahrain from a security and economic standpoint, Acting Executive President: thus adopting the standards observed by the US and Eng. Mustafa Abdul Wahid [National Telecommunication Regulatory GCC is key to bolstering the nation’s critical infrastructure Authority (NTRA)] industries. The working group is an important step The National Telecommunications Regulatory Authority towards maximizing efforts multilaterally across the (NTRA) report on the quality of mobile services during GCC in defending against cyber threats effectively and August 2015 has shown a relative improvement in the cooperatively” Dr. Khalid went on to say that “We have performance of Egypt’s three mobile telecommunications all witnessed the damage that cyber vulnerabilities can companies. The report showed that Mobinil excelled in cause, such as national scale economic convulsions, the data transfer services in Cairo, where more than 2,100 disruption of tactical military operations, and system connections were attempted, of which only 28 failed. wide computer malfunction as we witnessed in Aramco. Etisalat followed in second, with over 1,900 connections These are all complex threats that can’t be dealt with attempted, of which only 15 failed. Vodafone came in isolation, which is why at this intersection of policy in third, with 671 failed operations of a total of 2,300 & technology; we seek to strengthen our cooperative connection attempts. Vodafone topped the rankings mechanisms, as we simply cannot afford to have our for quality of mobile internet services, with only 12 key national infrastructures & systems to be exposed failed connections of the more than 3,600 attempted or to become fragile.” The agenda for the Cyber connections. Etisalat came in second place, with 14 Working Group included topics such as the basics and failed times to establish connections out of a total 4,100 importance of national cyber strategy, approaches to connections. In third place came Mobinil, with 17 failed critical infrastructure security and resilience related to attempts of 3,600 connections. The report outlined cyber security, cyber incident management, cyber threat Mobinil’s superiority in terms of video calls, with only information sharing and law enforcement cooperation, five failed connections for video calls out of a total of and exchange of cyber security best practices. 2,100 attempts. (September 26, 2015) dailynewsegypt.com (September 14, 2015) tra.org.bh

Bangladesh Iran Chairman: Dr. Mohammad Ali Forghani Chairman: Sunil Kanti Bose [Communication Regulatory Authority (CRA)] [Bangladesh Telecommunication Regulatory Commission (BTRC)] Iranian mobile operator MTN Irancell has revealed the Indian telecoms giant Bharti Airtel is negotiating latest details of its 3G and 4G network rollouts. The firm with Malaysia’s Axiata on proposals to merge the two says its 3G network now covers 35.8% of the population group’s respective Bangladeshi mobile subsidiaries, in 427 cities and towns and 56 main roads across all Airtel Bangladesh and Robi Axiata, noting that the 31 provinces, while its 4G Long Term Evolution (LTE) potential merger would boost the enlarged cellco to network reaches 11.6% of the population with coverage take second market place from Banglalink. However, a in 82 cities. Irancell has constructed 4,250 3G base joint statement from the two groups said: ‘There is no stations and 1,750 4G sites, and is claiming 12.5 million certainty that this discussion will lead into the execution 3G subscribers and around one million 4G users. MTN of binding definitive agreements between the parties Irancell launched 3G services at the start of September … This announcement is to facilitate the ongoing 2014 while 4G services were added two months later. discussions and exchanges of information between the parties, including but not limited to discussions with (September 2, 2015) telegeography.com the relevant regulatory authorities.’ The newspaper also quoted an Airtel spokesperson as saying: ‘We remain Jordan committed to Bangladesh,’ referencing recent reports Chairman of the Board of Commissioners/ that the Indian group was considering pulling out of the CEO: Eng. Ghazi Al-Jobor market altogether. The negotiations with Axiata come [Telecommunication Regulatory Commission as part of Bharti’s initiative to restructure operations in (TRC)] all countries where it has a relatively low market share. Jordan’s Umniah Telecom says that it has paid USD100 (September 10, 2015) Economic Times million for a 4G license, covering the 1800MHz spectrum band. The company added that its investment in the Indian telecoms giant Bharti Airtel is mulling the sale expansion and modernization of its will of its Bangladeshi and Sri Lankan mobile operations, reach $500 million, including the launch of its 4G fixed having appointed two bankers to lead the sale, according broadband services. Commenting on the company’s to Mobile World Live citing a report by the Business latest achievement, Uminah CEO Ihab Hinnawi explained

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“Umniah will make investments of up to $300 million this The net profit eased to 2.074 million Bahrain dinar (BD) year, including the 4G fixed and mobile license fees, as from BD 2.224mn indicating 6.7 percent drop for the well as build a new network and expand its existing 3G first six months. Zain is revamping its data packages network.” He stressed that the company’s strategy aims including price structure to monetize in a better way. to provide access to broadband Internet services to all Considering the high volatility in the forex market, Zain segments of society, and that the total volume of this has hedged its loans to avoid any unforeseen impact of investment is expected to reach up to $500 million by forex fluctuation.(September 15, 2015) moneytimes.com the end of 2017. Umniah has begun construction of its 4G networks and will launch them in early 2016, with comprehensive coverage of all populated areas in the Morocco Kingdom. Furthermore, the upgrade and expansion Director General: M. Azdine El of its 3G network will be completed by the end of Mountassir Billah November 2015. During the press conference, the [Agence Nationale de Reglementation des company also announced that it will continue to invest Telecommunications (ANRT)] in strengthening its basic infrastructure, its fiber optic Maroc Telecom (IAM) is yet to publish a new wholesale network, as well as its supporting systems in order to offer for access to its copper local loop and passive fiber provide its customers with the high quality of service infrastructure, despite being given a deadline of January they have come to expect. (September 17, 2015) cellular-news.com 20, 2015 to incorporate all of the telecom regulator ANRT’s recommendations. In an interview with Media24, Michel Paulin, the CEO of Meditel, has confirmed that Kuwait the publication of the approved wholesale offer – Chairman and CEO: Salim Alozainah which must cover shared cabinet access, full and partial [Communication and Information Technology unbundling and bitstream access – is still pending, Regulatory Authority (CITRA)] thus preventing alternative operators from access to Kuwait telecom major Zain has decided to invest in IAM’s infrastructure. In June 2014 the ANRT published technology firms that boost the weakening margins the rules governing local loop unbundling (LLU) in following the sluggish subscriber numbers and drop Morocco. Under the new regulations, Maroc Telecom is in revenues. As part of its investment strategy to boost required to provide colocation for third-party operators’ margins, Zain will invest in two digital advertising equipment in its existing cabinets, install multi-operator companies. Zain is also focusing on smart city cabinets for part of their future nodes and establish an projects, online advertising, and television services. active wholesale offer for third-party operators under a The advanced technology applications in the telecom virtual unbundled local access (VULA) model. Although sector are changing business dynamics in the industry. the incumbent telco was initially required to provide a For instance, instant messaging and internet-based technical and tariff wholesale offer for passive access to calls are replacing higher margin text messages and its fixed local loop by August 1, it was accused of failing conventional phone calls. As a result, margins of to publish the required documents on several occasions. telecom operators such as Zain are dwindling by the (September 28, 2015) Agence Ecofin day. This has pushed Zain to forge an alliance with technology companies that support in strengthening business operations. Towards this, recently, it has tied Nepal Chairman: Mr. Digambar Jha up with Uber Technologies Inc in addition to investing [Nepal Telecommunication Authority (NTR)] in three venture capital (VC) funds. Zain believes that these initiatives will enable it digital services segment. Considering the changing industry dynamics, Zain The Nepalese government says it is hoping to turned to digital advertising. Since it consumes a lot have awarded a unified communications license to of time in developing technology expertise in-house, United Telecom Ltd (UTL) within the next few weeks. the company has decided to team up with those who According to a report from The Himalayan, the Nepal offer what it needs, according to Scott Gegenheimer, Telecommunications Authority (NTA) has confirmed Zain Group Chief Executive. He said: “Zain’s interested that UTL has paid the third installment of the required in smart city projects, online advertising, and television license fees, though it still owes more than NPR1 billion services. It’s not about financial gain. These initiatives (US$9.3 million) which must be paid in installments give us easier access to see what the new business over the next five years. There are still some issues to models look like.” “They’re more agile than a lot of the clear up, the report suggests, including questions over telecom operators. We don’t have the time and skill sets fee payments and the operator’s rollout plan, but the to do this in house.” Despite odds in the telecom market, paper quotes an NTA source as saying: ‘Hopefully we Zain made a profit during the first half the year. Zain will be able to issue the unified license to UTL within posted net profit of 80,354,008 Kuwait dinars (KD) for two weeks by resolving the complexities.’ UTL is a fixed- the first half of 2015. The earnings per share (EPS) stand wireless and limited mobility CDMA network operator in at 21 fils. The data package pricing needs to be changed, Nepal. In April 2013 it was given approval to upgrade its feels Gegenheimer. The price for one or two gigabytes in operating concession to a unified license which would the US and Europe, one can get 500 gigabytes in Saudi enable it to introduce full-blown cellular services. Since Arabia. Zain has telecom operations in eight countries. then, however, the company has undergone a number It has a strong presence in Sudan, Iraq and Saudi Arabia. of disruptions, with its Indian shareholders seeking to Sudan contributes 25 percent of Zain’s customer base exit the company, leaving domestic firm Nepal Ventures and 20 percent of revenues. Zain’s Sudan division made Private Ltd (NVL) to take over all investment, while the $78million net profit for the first half of this year. Zain announcement of a job-cutting program has seen a Bahrain suffered a drop in net profit for the first half. backlash from employees which has led to strikes and

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service disruptions. (September 23, 2015) telegeography.com for hiring a consultant company that could advise the regulator on auctioning of 3G/4G spectrum in the country, however, no one is finalized for the job as of Oman yet. It is yet unclear as to what amount and magnitude Executive President: Dr. Hamed Al-Rawahi of spectrum, and from which band Pakistan may auction [Telecommunication Regulatory Authority now, as already operating mobile phone companies with (TRA)] 3G and 4G spectrum, particularly Ufone and Telenor, are nearing their capacities and may need more spectrum The telecom sector witnessed a growth of seven per cent during months to come. Such decisions will be taken by last year, generating total revenue of RO803.544mn as MoIT and a policy will be drafted to specify the spectrum compared to RO749.252mn in 2013. Revenue generated that government may intend to sell. Based on this policy from mobile services made up for the major portion from MoIT, Pakistan Telecommunication Authority of the earnings - 76 per cent, while the remaining was will prepare Information Memorandum (IM) that will contributed by fixed and Internet services. Investments constitute detailed specification of the auction including in the sector also grew by 40 per cent over 2013, the base price, auction mode and other modalities of according to the Telecom Regulatory Authority’s (TRA) the auction. This whole process should require least six Annual Report 2014. Total telecom investment grew months if not more. (September 15, 2015) propakistani.pk from RO156.5mn in 2013 to RO219.71mn last year. The composition of investment in mobile, fixed and fixed Pakistan’s Minister of State for IT and Telecom, Anusha broadband networks was 62 per cent, 29 per cent and Rehman, has revealed that the government is looking eight per cent respectively, stated the report. According to hold another round of spectrum auctions in the near to the report, the average revenue per mobile subscribers future. The minister made the announcement during rose from RO7.6 in 2013 to RO10.8 in 2014. However, a meeting with the Turkish ambassador, in which she the average revenue per unit (ARPU) from fixed services also noted that a tranche of 850MHz spectrum would experienced constant reduction reaching RO6.1 in 2014 be reserved for a new operator. The official explained from RO7.1 in 2013, RO8.8 in 2012 and RO13.9 in 2011. that ‘market forces have already expressed their ARPU for fixed Internet services reached RO35.5 with appetite for more spectrum,’ following greater than 24 per cent increase during 2014 from RO28.6 in 2013. expected demand for 3G/4G services. The number of 3G The number of mobile subscribers reached 6.194mn subscribers reached 13.287 million in June 2015, a little by the end of 2014 from 5.617mn in 2013, an increase over a year since the introduction of the service in late of 577,000 subscribers. The mobile penetration rate May 2014. Whilst no schedule for the auction has been remained constant at 155 per cent during 2013 and set out, the Pakistan Telecommunication Authority (PTA) 2014. “Even though mobile subscriptions were steadily has begun looking for a consultant to advice on the sale. growing during the last five years, the drop in the mobile (September 4, 2015) ProPakistani penetration rate in years 2012 and 2013 was due to re- evaluation of population estimates. “From 173 per cent in 2011 it dropped to 160 per cent in 2012 and to 155 Qatar per cent in 2013,” the report said. It remained the same President: Mr. Mohammed bin Ali Al Mannai during 2014. Prepaid mobile represented 91.5 per cent of [Communications Regulatory Authority (CRA)] the total mobile subscriptions with 5.665mn subscribers, while post-paid mobile subscribers reached 529,000 by A consumer survey commissioned by the end of 2014. Oman mobile had 47 per cent of the market Communications Regulatory Authority (CRA) shows share, while Ooredoo and mobile resellers possessed 41 that a majority of telecom users in the country are per cent and 12 per cent respectively. TRA has said in the generally satisfied with the quality of services provided report that the telecom sector contributes to the general by their service provider, the survey indicates key areas economy through the payment of royalty it receives at of focus for improvement, including pricing, rate plans, seven per cent on gross revenues, which is transferred and complaint resolution. The survey also found that in full to the Ministry of Finance after collection by TRA. about one-fifth (22 percent) of consumers surveyed Total royalty collected from active licensees for the year believe prices of various services in Qatar are priced low 2014 was RO 47, 674,369.435, accruing to six per cent or very low. Among all aspects of pricing, consumers increase in the royalty collected in 2013, where more particularly believe international calling and roaming than 98 per cent came from Class I licensees. Additionally, charges to be expensive. These are some of the many TRA collected RO3.1mn in arrear royalties from Ooredoo findings in a survey conducted by AMRB LLC, a market for the years 2005-2011 in 2014. (September 14, 2015) zawya.com research firm, for the CRA. This comprehensive research survey evaluates consumers’ level of satisfaction regarding the delivery of telecommunication services, Pakistan prices charged, services provided, and satisfaction with Chairman: Dr. Syed Ismail Shah the complaint resolution mechanism, among others. For [Pakistan Telecommunication Authority (PTA)] the survey, 2,526 face-to-face interviews and nine focus groups were conducted among Ooredoo and Vodafone The Government of Pakistan is preparing for the next customers in Qatar, including all demographic groups spectrum auction and has budgeted the revenues and geographic locations throughout the country. “This from spectrum auction for the current financial year. survey was commissioned as part of our mandate as the Therefore, the auction must be completed before the communications sector regulator to ensure a competitive end of fiscal year. Pakistan Telecommunication Authority marketplace and protect consumer rights,” said Amel has already advertised the RFPs (request for proposals) Salem Al-Hanawi, Consumer Affairs Manager. “The

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survey findings have been shared with both Ooredoo • While consumers do not find the SMS promotions and Vodafone and we are pleased that they are willing to be misleading, they are less satisfied with ‘options to work with CRA to address challenges and concerns to opt out of promotional messages’. highlighted by consumers in the survey,” she added. The survey findings will be used by CRA to improve The survey shows that 15-24 year olds, and Al Daayen services and protect consumers. In addition, CRA has residents are less satisfied than overall consumers with initiated another study to better understand the levels the quality of their telecom service. Overall quality of of satisfaction of telecom services among the business service (QoS) satisfaction levels is slightly higher than the consumers. The full Consumer Satisfaction Survey report global average (84 percent) and slightly lower than those is available on the CRA website. (September 22, 2015) in North America (91 percent). When consumers were cra.gov.qa asked about their rate plan, they were least satisfied with the ‘variety of rate plans’, with the highest dissatisfaction Sweden’s Ericsson has been selected by Qatar’s among males, non-Qataris, 15-44 year olds, and prepaid Communications Regulatory Authority (CRA) to provide users. Generally, customers were more satisfied with solutions and services to support the implementation the clarity of rate plans (93 percent), clear terms and and management of new telecommunication duct conditions (90 percent) and competitiveness of tariffs infrastructure in the Middle Eastern state. Patrik (89 percent). This reflects positively on the impact and Melander, vice president and head of Ericsson’s GCC & effectiveness of the Consumer Protection Policy issued Pakistan division, said: ‘through this partnership, we are by CRA in 2013. In terms of consumers’ perceptions spurring an increasingly Networked Society in Qatar as of whether Qatar’s telecom market is competitive, for we expand our services to support the needs of Industry services, 32 percent said the market was extremely/very and Society customers. This deal marks a key milestone competitive, 46 percent said somewhat competitive, and in our partnership with CRA Qatar.’ The company added: 22 percent said not very/not at all competitive. In terms ‘By using Ericsson Network Engineer, the regulator has a of prices, 29 percent rated the market as extremely/very GIS-based mapping tool that supports keeping records competitive, 45 percent said somewhat competitive, of the new telecommunication duct infrastructure which and 26 percent said not very/not at all competitive. will be established as a result between the cooperation Dissatisfaction was highest among males, non-Qataris, between the Ministry of Information and Communication 25-44 year olds and prepaid users. Customers’ wish list Technology (MICT), the CRA and the Public Works for the sector included more competition in the market, Authority.’ (September 8, 2015) CommsMEA better services at affordable rates, better Internet facilities, and protection of consumer rights. Other major findings include: Saudi Arabia • Network coverage is rated high across all services Acting Governor: Eng. Habeeb K. Alshankiti offered – mobile voice, mobile voice and data, [Communication & Information Technology mobile broadband, and data specific SIM—and Commission (CITC)] across all regions. International Data Corporation (IDC) has said it expects • Satisfaction on network availability is relatively weak ICT spending in Saudi Arabia to top the $36 billion among Internet (copper users) at 60 percent and mark this year, as organizations gear up for a whole those residing in Al Daayen at 67 percent. new era of enterprise computing by ramping up their • While overall satisfaction with ‘voice and SMS investments in emerging technologies such as cloud, services’ is high – including voice quality and clarity, mobility, big data analytics, and the Internet of Things. lack of call drops, and SMS delivery – improvement These pronouncements were made as the research and can be made in the Al Shamal and Al Wakra regions. consulting firm hosted the latest edition of its Saudi • Users of most of the data services (other than Arabia CIO Summit under the theme “Where IT Meets copper Internet) are satisfied with the services Business” at the Four Seasons Hotel in Riyadh. Held over provided, with quality of data services at 93 percent, two days, the event was hosted under the patronage data network coverage at 94 percent, speed at 93 of the Ministry of Communication and Information percent, and video access/streaming quality at 92 Technology and attracted over 150 of Saudi Arabia’s percent. most influential CIOs, technology decision makers, and • Dissatisfaction on ‘ease of activation’ is higher government advisors from across the Kingdom’s entire among mobile broadband, mobile voice, and fiber vertical spectrum. Summit discussed the importance broadband users. of closely aligning IT and business functions at a time • More than 90 percent of consumers are satisfied when organizations across the region are facing up with the switch from copper to fiber (94 percent) to the challenge of implementing emerging products and also with the quality of broadband after the and services while simultaneously trying to improve switch, with 90 percent rating quality of broadband operational efficiency. “While warnings of impending after the switch very much or much better. change have been heard for as long as the IT industry • Only 32 percent of those surveyed are aware of itself has existed, the realities facing today’s businesses mobile number portability (MNP) and of those who represent a whole new ballgame,” said Jyoti Lalchandani, are aware, 9 percent took advantage of this service. IDC’s group vice president and regional managing Of those with experience with MNP, 72 percent were director for the Middle East, Africa, and Turkey. “Users satisfied and 48 percent claimed that porting took are having to wrestle with a rate of change that has between 1-5 days. never been seen before. With this, the focus of CIOs • While there is low incidence of consumers raising across the region is beginning to shift to the new wave complaints with service providers (7 percent during of disruptive technologies that are heading their way, the time of the survey), 25 percent of customers are with unprecedented opportunities to drive innovation dissatisfied with the speed of resolution.

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SAMENA TRENDS _ SEPT 2015 SAMENA TRENDS _ SEPT 2015 and value creation across all facets of the organization. in Sri Lanka. Airtel’s quarterly revenue in Sri Lanka This will not only require a new breed of CIO leadership, and Bangladesh fell 11% in April-June 2015 to INR3.8 but also a whole new era of collaboration right across billion (US$57.3 million), while its mobile subscriber the CIO value chain.” With the event representing the market share stands at roughly 7% in both South Asian largest gathering of CIOs in Saudi Arabia, a host of countries. (September 1, 2015) telegeography.com global ICT giants joined forces with influential local players to present their unique insights into the latest trends shaping technology adoption across the wider Sudan region, while a variety of senior line-of-business Director General: Dr. Izz Al Din Kamil Amin executives were also on hand to offer that all-important [The National Telecommunication Corporation (NTC)] non-IT perspective. For the first time, the event also included a series of vertical-focused tracks, with the Sudan now makes up the northern part of a country spotlight focusing on the Kingdom’s government, which in 2011 was separated to form the new state of banking and finance, and energy sectors, as well as on South Sudan. Three quarters of the former population the need for organizations of all kinds to embrace the live in the north, where mobile market penetration is digital revolution before they get left behind. “As the far higher. The country has a relatively well-equipped world changes beyond all previous recognition, we are telecommunications infrastructure by regional increasingly becoming a community of digital citizens standards, including a national fiber optic backbone living in a global network that is always connected,” said and international fiber connections. The chronically Abdulaziz Al-Helayyil, IDC’s regional director for Saudi poor performing economy has hindered the ability Arabia. “We engage online more than ever before, and of operators to improve revenue from services and with the world’s information at our fingertips we have sufficiently invest in infrastructure upgrades, while become significant contributors to a vast and growing social unrest in South Sudan continues to impose information ecosystem. Businesses need to keep practical difficulties for telecom operators. The national pace with this change by redefining themselves and telco, Sudatel was privatized more than a decade ago, adopting a digital mindset. That starts with digitizing with major shares and management control now held their business models and re-engineering the customer by Etisalat of the UAE and by Qatar Telecom. It is also experiences they deliver, so that they can leverage both listed on several regional stock exchanges. The company the information they own and the information that is presided over the world’s fastest growing fixed-line created by their customers.” EMC Tuesday announced its market until it started substituting traditional copper participation at the latest edition of the IDC CIO Summit lines with CDMA2000 fixed-wireless access in 2005. that brings together over 200 of the most prominent Competition in the fixed-line market comes from CIOs and IT leaders from across the Kingdom, to Canartel, which is also majority-owned by Etisalat. The exchange insights and best practices on the application operator also opted for CDMA2000 technology to cost of third platform technologies to transform business. effectively roll out fixed services and, like Sudatel, offers EMC’s participation at the event aims to help IT leaders wireless broadband services through this network, deliver the agility and performance to support the having upgraded to the EV-DO standard. The company ever changing and growing needs of their customers is lobbying for a license to offer mobile services as well in an era of hyper connectivity and digitization. The but is meeting resistance from the other operators. The announcement comes as a recent study reported that market for mobile internet services is flourishing, and 62% of respondents in the UAE and Saudi Arabia believe traffic for services such as SMS more than tripled in the that the surging adoption of mobile, social, cloud and year to June 2013. (September 2015) budde.com.au big data technologies is changing customer behavior and driving the need for organizations to adapt in order to stay competitive. Conducted by the Institute for the Turkey Future and Vanson Bourne on behalf of EMC, the study Acting Chairman: Dr. Omer Fatih Sayan titled The Information Generation: Transforming The [Information & Communication Technologies Future, also reported that while 63% of respondents in Authority (BTK)] the UAE and Saudi Arabia believed that having access to relevant information and insights would improve Turkey’s largest mobile operator by subscribers, Turkcell, decision making, 33% of respondents reported to be has declared that it is looking to appoint a strategic drowning in information overload. (September 9, 2015) zawya.com and financial advisor to explore the possibility of full acquisition of subsidiary Fintur (inclusive of mobile operations in Kazakhstan, Azerbaijan, Georgia and Sri Lanka Moldova), in which it currently holds a 41.45% stake. The D i r e c t o r G e e r a l : M r . P. B . A b e y k o o n news is pursuant to TeliaSonera’s announcement that [Telecommunication Regulatory Commission it has initiated a process to reduce, and over time fully (TRC)] exit, its presence in CIS and Asian markets; TeliaSonera is one of Turkcell’s major shareholders and also Turkcell’s Indian telecoms giant Bharti Airtel is mulling the sale partner in Fintur through a 58.55% stake. The jointly- of its Bangladeshi and Sri Lankan mobile operations, owned cellular operators under consideration are K’cell, having appointed two bankers to lead the sale, according Azercell, Geocell and Moldcell in Kazakhstan, Azerbaijan, to Mobile World Live citing a report by the Business Georgia and Moldova respectively. TeliaSonera declared Standard. Bharti reportedly aims to firstly sell its cellular that it will exit all seven countries in its ‘Eurasia’ mobile tower businesses in the two countries followed by the network operating division – Kazakhstan, Uzbekistan, mobile operating divisions. Airtel currently operates Azerbaijan, Tajikistan, Nepal, Georgia and Moldova – to around 4,000 towers in Bangladesh and 2,500 towers sharpen its focus on its Sweden and Europe divisions.

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The strategic decision follows a troubled period in which board (BTK). Arbitration sessions are now expected to the group was affected by investigations into corruption take place next spring. As at August 2015 Turkcell’s allegations in Eurasian markets, exacerbated by tough shareholder structure was reported as follows: Turkcell macroeconomic conditions and price competition Holding owns a 51.00% stake, TeliaSonera owns 14.02%, across the Eurasia footprint. (September 18, 2015) telegeography.com Cukurova Holding owns 0.05%, and the remaining 34.93% of shares are publicly traded on the New Turkey’s Telecommunications Directorate (TİB) has been York Stock Exchange (NYSE) and the Istanbul Menkul granted the authority to monitor Internet users and block Kiymetler Borsasi (IMKB). Turkcell Holding is itself owned websites and their content without court permission, by TeliaSonera (47.09%, giving it a 37.09% overall stake according to a new proposal made by the ruling party in Turkcell) and Cukurova Holding (52.91%, for a 26.98% late September 8. The proposal, which came during talks overall interest). Cukurova Holding is majority controlled on a huge omnibus bill, allows the head of the TİB to by the Turkish Cukurova Group (51%, or a 13.76% overall block websites and content in order to “protect national stake in Turkcell), with 18.5% held by Alfa Group (4.99% security and public order, as well as to prevent crime.” overall stake in Turkcell). In March 2015 Alfa reportedly The service provider will be required to shut down the bid USD2.8 billion for the disputed 13.76% Turkcell website or remove the content within four hours, if the stake. Alfa offered USD54.9 million per share for 51 omnibus bill is approved. The government changed the of Turkcell’s Class B shares, which were being held by Internet Law in early 2014 after a campaign state-run Ziraat Bank as collateral for a loan to Cukurova. targeted government members over corruption claims. The US$2.8 billion bid represents a significant premium The voice recordings of a number of Turkish officials on the US$1.56 billion price previously attached to the allegedly showing them accepting bribes, including stake. (September 9, 2015) telegeography.com former Prime Minister Recep Tayyip Erdoğan, shook Turkish politics, with the government banning the social Fitch Ratings expects that increased focus on bundled media websites Twitter and YouTube in a bid to stem the services within the Turkish telecoms market could lead leaks. While the blocks on those websites have been to an increase in content costs, especially for live football lifted, the current changes to the Internet Law through broadcast rights. Expanding pay TV services can help the omnibus bill are regarded as further measures to telecoms operators to maintain and grow mobile and monitor web users and the sites they visit. According broadband market share, but high content costs could to current regulations related to blocking websites, after erode profitability. The Turkish telecommunications issuing service providers with an initial order to block market is becoming increasingly convergent as the access to a site, the TİB must apply to court within 24 major operators begin to offer pay TV services as hours to get a legal decision. The latter has 48 hours part of their triple or quad play service bundles. Turk to respond to the TİB’s request. Last night’s proposals Telekomunikasyon launched satellite TV services in included a last minute addition on how Internet traffic July to supplement its IPTV product, and Turkcell has a would be stored. The current law authorizes service growing IPTV offering, with 16% of its fibre customers providers to store the data accumulated by web users taking up triple play services at end June 2015. Football for two years and the TIB is only able to request this rights are likely to make up an important part of pay information upon a court decision, or as part of a criminal TV operators’ content offerings. In November 2014, Turk investigation. However, the recent changes allow for Telekom acquired the rights to UEFA European football the TIB to store the data in-house and to hand over the (champions and Europe leagues) for three seasons, data to relevant institutions upon a court decision. “The beginning in 2015 2016, and although the cost was process to present information on specific web traffic not disclosed, we expect it to be sufficiently offset by data to the court used to take at least a month, which reduced direct sport sponsorship. D Smart, the second caused a serious delay. By storing this information at the largest pay TV satellite broadcaster with 1.74 million TIB, this process will be much quicker,” officials told daily subscribers, previously held the UEFA rights. The leading Hürriyet. The European Union and the United States Turkish pay TV operator is with its satellite TV have both severely criticized the Turkish government offering serving 2.7 million customers at end 1Q15. It for increasing government control over the Internet, owns the rights to broadcast the Super Lig, the country’s particularly after the blocks on Twitter and YouTube were top football league until the end of the 2016 17 season. imposed. (September 9, 2015) hurriyetdailynews.com The company’s initial four year deal, which ended with the 2014 15 season, cost USD321m per season, but this Russian-backed Alfa Group has applied to Turkey’s was extended for two more years at a reported cost of Competition Authority (RK) to take indirect control of USD450m per season an increase of 40%. In their 2Q15 Turkish mobile operator Turkcell from Cukurova Holding, investor call Turkcell stated that they are interested in reports Hurriyet Daily News, citing a statement from RK, continuing to grow their IPTV offering, and to potentially in a move which continues a long-run feud between acquire sports content to increase its attractiveness. With Alfa and Cukurova for ownership of the company. An Turk Telekom having already secured the UEFA European unnamed source is said to have informed Reuters that the football rights for three years, the Turkish Super Lig rights battling companies have been in discussions regarding could see a lot of interest when they come up for auction the matter: ‘This latest move must be a tactical or formal in 2H16. We expect Digiturk to want to retain these key application. Alfa made an offer to Cukurova last March content rights, as their ownership is a key differentiator of … Cukurova said the [offer could not be evaluated] as their satellite TV offering. Having recently been acquired it has applied to an international arbitrator in London.’ by Qatar based Al Jazeera’s sports arm, we expect that However, the same source disclosed that in order to take they will have significant resources to try to hold on to control of the Turkish cellco, Alfa also needs to acquire these rights. Turkcell, however, with a net cash position permissions from public authorities, including the RK, at end 1H15, has signalled that it is planning to run a the market watchdog (SPK) and the communication higher leverage profile. This could release significant

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resources to bid for these rights. D Smart and TT may telecom, e-government and e-services, in addition also be interested. Competition for football rights could to participating in international events and forums result in a significant increase in content costs, as seen and any other issues as may be mutually agreed. TRA in the UK. The cost of live broadcasting rights for English Director General and TRAI Secretary, signed the MOU. Premiership football has increased over 70% as BT Group Moreover, meeting attendees exchanged thoughts Plc (BBB Positive) competed against Sky Plc (BBB Stable) about the challenges facing the Telecommunications for the content. (September 4, 2015) cellular-news.com sector including broadband services, Cyber Security, and the promotion of investing in Telecommunications and ICT companies. Both parties agreed that discussing such Tunisia topics further is crucial during bilateral meetings on the President: Mr. Hassoumi Zitoune sidelines of international forums. (September 20, 2015) tra.gov.ae [National Telecommunication Commission (INTT)] The telecom regulator TRA announced that the number of registrations on the national .ae domain has increased, Tunisia will launch a tender for 4G spectrum later reaching more than 164,000. This figure position the this month with licenses to be awarded in summer UAE at the forefront among the countries in the region 2016, the Minister of Communications and Digital for the number of registrations within the nation’s Economy, Nommen Fehri, announced, AllAfrica reports. respective range. This achievement reflects UAE’s Operators will be called upon to roll out coverage government commitment to elevating the country’s to remote, ‘non-profitable’ regions as part of efforts competitiveness. It is also proof of the immense effort to improve connectivity in rural areas and promote exerted by the government to serve and develop the their development. The minister added that the internet community in UAE. Driven by its commitment implementation of 4G technology would help improve to the directives of the UAE wise leadership, the TRA internet services across the country, which are currently strives to achieve its vision of providing the optimum ‘poor and expensive’. environment for the Telecommunications sector to (September 7, 2015) telegeography.com thrive and lead. This increment indicates that the TRA has made great strides towards this vision. United Arab Emirates (September 10, 2015) tra.gov.ae Director General: H.E. Hamad Obaid Al Mansoori In collaboration with the United Arab Emirates Prime [Telecommunication Regulatory Authority Minister’s Office at the Ministry of Cabinet Affairs, (TRA)] the mGovernment team of the General Authority for The telecom regulator TRA signed a Memorandum of Regulating the Telecommunications sector (TRA), hosted Understanding (MOU) with the Telecom Regulatory a series of introductory workshops over three days on Authority of India (TRAI) on September 3, 2015 during the strategic indicators towards smart government the joint commission meetings that both countries 2014-2016. A large number of representatives attended held in India, in the presence of Sheikh Abdullah Bin the workshops from the federal government across the Zayed Al Nahyan, UAE Foreign Minister and Minister UAE. The workshops demonstrated a list of updates of State. The agreement aims at strengthening the and events, approved by mGovernment, which will be collaboration between the two countries within the implemented in Q4 2015. The mGovernment team also Telecommunications and ICT space. The MOU pledges introduced a list of measurement requirements as part both countries’ commitment to promoting closer co- of the strategic planning towards smart government operation and knowledge exchange pertaining to various that highlight the role and mission of the federal aspects of international and regional ICT. TRA’s Director authorities in this respect and present the proper General said: “This agreement falls within the framework communication tools to TRA who is responsible for of bilateral cooperation between UAE and India, and aims measuring mGovernment readiness. Director General, to secure optimum utilization of the Telecommunication TRA said: “The excellent teamwork spirit among all Sector to best serve the development efforts, economy, concerned government authorities working on the and knowledge society, which will reflect positively on mTransformation project has been a key element behind the competitiveness of both countries. The importance this remarkable achievement. This is been highlighted of the Telecommunications Sector is reflected through through the major accomplishments during the first the strategic role it plays in our contemporary society, phase of this national project launched by our wise as it contributes significantly in the economic and leadership. On this occasion I would like to extend social development. We regard taking advantage of my gratitude and appreciation to all ministries and the global expertise and strengthening the ties with government authorities for their highly appreciated and international stakeholders as necessities for the growth continuous efforts to successfully accomplish the mGov and prosperity of this sector” TRA believes that the project, which will contribute to further promote the Telecommunications sector is a strategic catalyst that UAE as a leading nation in terms of providing excellence will accelerate the UAE’s competitiveness. Moreover, TRA in the field of government services.” The workshop is always keen to exchange knowledge and experience participants were also introduced to five key indicators within the ICT field and implement best practices that including the usage of eGovernment and mGovernment contribute positively to developing a knowledge– services, customer satisfaction levels, public awareness based economy. Key areas of cooperation include levels, government services and government website’s technological developments and new technologies; commitment to quality standards. (September 2, 2015) tra.gov.ae universal services of telecommunications and Mobile Number Portability (MNP), Spectrum issues, green

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REGULATORY ACTIVITIES BEYOND THE SAMENA REGION

African Telecom Union said that Africa, whose broadband penetration rate stands at approximately (ATU) ten percent, is the lowest of any region Chinese technology firm in the world, and Huaweiwill help Huawei and the African African states develop and implement Telecommunication their national broadband strategies. Union (ATU) have inked The reports revealed that African states a Memorandum of Understanding have set a goal of achieving universal (MOU) aimed at enhancing information broadband access by the year 2020. and communication technology (ICT) Abdoulkarim said that some countries Regulatory capability and literacy in Africa. It was such as Kenya are leading the continent in revealed within the report that Huawei broadbrand connectivity through national Updates Technologies Kenya Country Manager, programs. The secretary general urged Dean Yu, told a media briefing in Nairobi governments to provide incentive for that his firm will provide technical the private sector to rollout broad band, support to African states to increase especially to the rural areas. “Through use their uptake of ICT. “We will leverage our of broadband, the education and health resources in order to introduce the most sectors can reach the level of developed innovative solutions to Africa,” Yu said on countries,” he said. the sidelines of the ICT media training (September 22, 2015) telegeography.com workshop. According to the report, under the agreement, the Chinese technology giant will share its vast technical know- Albania how in order to spur ICT development on the continent. Huawei has presence As of September 1, in most of the 54 African states where 2015, the Authority of it works closely with telecomfirms to Electronic and Postal expand coverage mobile telephony. “Our Communications (AKEP) aim is to ensure that Africa is able to of Albania has approved the abolition of bridge its digital divide,” said the country restrictions governing the use of 900MHz, manager, adding that ICT can be used to 1800 MHz and 2100MHz spectrum by improve the efficiency of all sectors of the the country’s cellcos. Going forward, the economy. “There is a positive correlation watchdog notes that operators will be between level of ICT use and the level of free to utilize their respective spectrum economicdevelopment,” he added. ATU allowances as they see fit, and can deploy Secretary General Soumalia Abdoulkarim systems based on 2G GSM, 3G UMTS, 4G

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LTE and WiMAX platforms. The decision formed part said. Applications for the auction close on October 1. of an amendment to the National Plan for Broadband Starting prices for the spectrum also function as the Development, the regulator says. TeleGeography notes reserve prices for each lot, the ACMA said, and were that Telekom Albania and Vodafone both launched calculated on the basis of $0.08/MHz/pop. Prices in commercial LTE networks in July this year, using the regional NSW start from $266,000 in the west, $421,000 2600MHz band. However, a flurry of recent licensing in the north, and $455,000 in the south. In Queensland, activity has prompted the regulator to open up other bidding will start from $199,000 in northern areas, bands for 4G use. 1800MHz licenses were awarded to $917,000 in the south, and $305,000 in central regional Albtelecom, Telekom (formerly AMC) and Vodafone areas. Bidders interested in South Australian regional on March 20, 2015, while May 11 saw all four cellcos spectrum will be asked to bid more than $137,000, (including Plus Mobile) issued with 2×5MHz blocks while those after 1800MHz in WA will need more than in the 900MHz band. Meanwhile, Vodafone and $237,000. In Canberra and parts of the NSW south coast Telekom also secured 2600MHz spectrum on May bidding will start from $565,000; in regional Victoria 11, while the distribution of paired spectrum in the prices will start at $705,000; in Tasmania, $438,000; and 1900MHz/2100MHz band was subsequently authorized in Darwin, $106,000. Adelaide prices start from $1.1 on June 22, with Albtelecom and Telekom scooping the million. The online auction will be conducted using frequencies. (September 2, 2015) telegeography.com software from Power Auctions. All lots will be open for bidding at the same time. Early this year the ACMA asked the Communications Minister for the ability to reallocate Australia regional 1800MHz spectrum by issuing new licenses, a Would-be participants in Australia’s request that was later approved. The regulatory body upcoming auction of spectrum in the had noted increasing demand for the spectrum from 1800 MHz band have until 1 October numerous interested parties, mainly due to the ability to submit their applications, the to utilize LTE technology in the band to deliver mobile government announced late last week. The Australian broadband. (September 11, 0215) itnews.com.au Communications and Media Authority (ACMA) plans to auction off 1800 MHz airwaves in regional Australia in November. It will also sell off airwaves in the same band Bahamas that were left over following the recent reissue of expiring The selection process for the Bahamas’ spectrum licenses. The available spectrum has been second mobile licence has been split into 147 lots, with reserve prices calculated on the delayed again, after a spectrum auction basis of A$0.08/MHz/pop, “a figure chosen to maximize scheduled to take place this week was the overall public benefit with a view to ensuring the postponed for a second time with ‘no indication as to efficient allocation and use of the spectrum,” the ACMA why’, Tribune Business writes, citing unnamed sources said. Starting prices for the airwaves vary by region: close to the liberalization process. The auction forms at the bottom of the list, Darwin and Regional South the second stage of the selection process, with the Australia carry reserve prices of A$106,000 (€67,000) outcome weighed-up alongside the bidders’ original and A$137,000 respectively, while in South Queensland proposals and the new concession going to the overall (Maryborough) and Adelaide prices start at A$917,000 winner. Sector watchdog the Utilities Regulation and and A$1.13 million (€715,000). Auction participants will Competition Authority (URCA) postponed the auction be able to acquire a maximum of 2 x 25 MHz of available from April this year in order to investigate the erection spectrum, a rule the ACMA says will “promote diversity of telecom towers by one of the bidders, Cable Bahamas and competition” among spectrum holders. It notes that Ltd (CBL). It was ruled earlier this month that CBL had the auction format will enable new licensees to gain indeed breached the rules of the auction by building access to the 1800 MHz band. The ACMA points out the towers, although the infraction did not warrant the that there is growing demand for 1800 MHz spectrum company’s exclusion from the competition. Whilst the in regional Australia, driven primarily by the availability reason for the most recent postponement is not known, of LTE equipment in the band for the delivery of mobile other sources close to the process told the news outlet broadband services. As such, the authority has been that the delay was ‘not material,’ and that the auction working on a plan to allocate the airwaves for the past was ‘absolutely imminent.’ Stephen Bereaux, URCA’s few years. (September 15, 2015) totaltele.com director of policy and regulation, seemed to confirm that the process had stumbled, describing the scheduling as The communications regulator has opened applications ‘a significant task,’ adding: ‘Scheduling the spectrum for participation in the country’s auction of 1800MHz auction means ensuring all the parties, and their spectrum in regional areas, releasing details of the consultants and advisers, and URCA and its consultants, starting prices for all lots to go on sale. Earlier this year are together at the same time.’ Nevertheless, the official the Australian Communications and Media Authority said that the regulator is still hoping to complete the revealed it would impose limits on the amount of auction in September. (September 17, 2015) telegeography.com spectrum able to be purchased by one entity. Bidders can only buy a maximum of 2 X 25MHz chunks of The Bahamas’ Cellular Liberalization Task Force (CLTF) has spectrum out of the 2 X 60MHz for sale. The spectrum announced that it has resumed the second phase of the - which has predominantly been used for backhaul, but selection process to allocate the nation’s second mobile for which large parts remain unused - will go to auction concession, and will hold the delayed auction later this in November. Telstra, and Vodafone presently use month. The committee postponed the selection process 1800MHz to deliver 4G services to metropolitan areas. in April this year pending an investigation by the telecom The ACMA will auction regional spectrum in the 1725- watchdog the Utilities Regulation and Competition 1785 MHz band as well as 1820–1880 MHz, alongside Authority (URCA) into the purpose of several telecom spectrum that has become available after the reissuance towers constructed, or being constructed, by one of of expiring licenses. The spectrum will be divided into the prospective bidders, Cable Bahamas Limited (CBL), 147 lots. “The ACMA expects there will be widespread in New Providence. URCA determined that CBL had interest in this band, which is internationally-harmonized breached the rules of the auction, but the infraction for mobile broadband applications,” the regulatory body did not warrant disqualification from the selection

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SAMENA TRENDS _ SEPT 2015 SAMENA TRENDS _ SEPT 2015 process, with the cable operator receiving a financial Canada penalty instead. Virgin Mobile Bahamas is CBL’s only Nationwide operators Telus and Bell competition for the country’s second mobile license, Canada were declared winners of after Digicel dropped out of the running earlier this residual AWS-3 (2100MHz/1700MHz) 4G year, without specifying the reason behind its decision, spectrum licenses at the end of August although the pan-Caribbean group had previously been in the ‘leftover’ concession auction run by Industry critical of the onerous restrictions that would be placed Canada. Telus paid CAD58 million (USD43.8 million) for on the newcomer. In a related development, Tribune 242 six additional AWS-3 license blocks covering Manitoba writes that the chief executive of the Bahamas Chamber and Saskatchewan, while Bell secured another nine of Commerce and Employers Confederations (BCCEC), AWS-3 concessions (three in each of the Far North Edison Sumner has called for the government to territories: Yukon, Northwest Territories and Nunavut) consider inviting more companies to bid on the license, costing CAD206,000. The two national operators outbid noting that the government had previously expected SaskTel (in Saskatchewan), MTS (Manitoba) and SSi at least five operators to reach this stage. Mr. Sumner Micro (Far North). There were no takers for three leftover noted that his own company, IP Solutions International 700MHz licenses. The main AWS-3 auction earlier this (IPSI) had withdrawn from the competition due to the year augmented the Canadian cellcos’ existing AWS-1 restrictions placed on the winning bidder, specifically frequencies (awarded in 2008). In March 2015 Telus paid the requirement to relinquish a majority stake in the CAD1.511 billion for 15 regional 2100MHz/1700MHz company to Bahamian investors. ‘The fact [that] only two license blocks in British Columbia, Alberta, Saskatchewan, bidders made it through this process and other serious Manitoba, Southern Ontario, Eastern Ontario, Eastern contenders, for whatever reason, dropped out, should Quebec and Southern Quebec, and following the residual give the government cause to examine this process auction Telus now has 21 AWS-3 spectrum licenses again and see if it wants others to participate at this late covering all major regions of the country. In March stage,’ Mr. Sumner said, adding: ‘A greater number of 2015 Bell bid CAD499.9 million for 13 AWS-3 regional participants creates a better level of competition, and a license blocks in Newfoundland & Labrador, Nova better chance to get good quality responses.’ Scotia, Prince Edward Island, New Brunswick, Northern (September 2, 2015) telegeography.com Quebec, Southern Ontario, Northern Ontario, Nunavut, Northwest Territories and Yukon, meaning it now holds a total of 22 blocks in the band. The March 2015 auction Belgium also saw Wind Mobile, Videotron and Eastlink buy AWS- The Belgian cellular operators Mobistar, 3 concessions set aside for newer entrants. Proximus and BASE have been successful (September 11, 2015) telegeography.com in their legal attempt to overturn a tax on mobile network towers imposed by the Wallonia region in the south of the country. Belgium’s Colombia Constitutional Court said the regional government The Ministry of Posts and had no authority to impose such a tax, De Tijd reports. Telecommunications Cambodia (MPTC) Wallonia had been taxing operators up to EUR8,000 has ruled that the country’s cellular (USD8,660) per site since implementing the levy in 2013. subscribers must register their details (July 20, 2015) telegeography.com with their mobile operator or at a police station within the next three months, or face the disconnection of their service, as the government launches a crackdown on Bulgaria unregistered SIM cards. The Phnom Penh Post reports Bulgaria’s telecoms regulator the that retailers or distributors could be arrested if they Communications Regulation Commission are found to be selling unregistered SIM cards under (CRC) has announced plans to hold a the new measures, which are aimed at curbing criminal tender for the authorization of the use activities carried out using mobile phones. ‘Telecom of frequencies in the 2500MHz-2690MHz spectrum operators must tell customers, including foreigners, band with Decision No 411 dated August 31, 2015. that they must complete ID documents within three The regulator disclosed that it aims to award three months or their numbers will be automatically deleted,’ 2×20MHz paired blocks (frequency division duplex announced the National Police’s deputy chief, Chhay [FDD]) and one 2×10MHz paired block in the 2500MHz- Sinarith, at a joint press conference with MPTC Director 2570MHz/2620MHz-2690MHz band and five 1×10MHz General Mao Chakyra. He added that up to 70% of the blocks (time division duplex [TDD]) in the 2570MHz- country’s roughly 20 million SIM cards are currently 2620MHz band. All parties are invited to submit their unregistered. Responding to the measures, Smart interest in the tender by September 15, 2015. In April Axiata’s CEO Thomas Hundt said: ‘We will work together 2013 the Bulgarian government announced that the with the industry and regulatory bodies to ensure that National Security Service (NPS) will start the release of the directive is being complied to’. He added that while frequencies in the 2500MHz-2690MHz band (occupied Smart’s dealers were already required to collect ID by the military), for terrestrial systems capable of information from customers, some retailers were not providing communications services. The CRC opened a observing the policy strictly, and said that the firm would tender (with Decision No 489 of July 9, 2013) for five take measures to ensure compliance. 2×5MHz paired blocks and three 1×5MHz blocks in the (September 28, 2015) telegeography.com band in July 2013. The licenses were to be issued for a ten year period, with operators required to establish and operate 3G and/or 4G networks covering 35% of Cote d’Ivoire the territory within two years from license award, going Cote d’Ivoire’s Autorite de Regulation des on to reach 55% coverage within five years. Citing a lack Telecommunications de CI (ARTCI) has of interest, however, the CRC cancelled the tender in invited Expressions of Interest (EoI) for a August. (September 7, 2015) telegeography.com new telecoms concession in an effort to ‘revitalise the market’. Going forward, the

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watchdog seeks to reduce the number of licensees to four ‘global’ concession holders, which will include one European Union new operator ‘capable of taking an active part in the An overarching review of EU telecoms development of the Ivorian telecoms market’, alongside regulations has been launched by the three existing operators Orange, MTN and Moov. European Commission. The Commission The ARTCI has promised an ‘optimal redistribution of said the review is aimed at understanding spectrum resources’, while the successful bidder will whether the existing rules “sufficiently incentivize” be expected to deploy networks capable of supporting businesses operating in the telecoms market to invest mobile and fixed telephony, data transmission and in the telecoms infrastructure necessary “to meet internet access. The regulator notes that the pre-selection tomorrow’s high-capacity demands across the whole of operators will be primarily ‘based on reputation’. EoI [EU]”. The views the Commission gathers during its must be submitted no later than 30 September 2015 consultations will, it said, help to inform new “regulatory and the list of shortlisted candidates will be revealed on proposals” it expects to publish for the telecoms October 10, 2015. Shortlisted operators will then have a sector in 2016. It said it wants to ensure the EU’s period of one month to finalize their submission. In June telecoms rules are sustainable, market-based, deliver this year the government reportedly ‘nationalized’ debt- a “high-performance for fixed and wireless broadband wracked mobile trio GreenN Cote d’Ivoire, Comium Cote infrastructures” and are “fit for purpose for 2020 and d’Ivoire and (the now defunct) Cafe Mobile, over unpaid beyond”. To achieve this, the Commission said there taxes and license fees, with a view to merging them into needs to be “effective spectrum coordination, and a single company. It was stated at that juncture that a common EU-wide criteria for spectrum assignment at stake in the consolidated mobile business would then be national level;” and for there to be incentives created sold to a strategic partner. India’s Bharti Airtel, Nigeria’s for “investment in high-speed broadband”. It also said Globacom and Vietnam’s Viettel Group have all been there needs to be a “level playing field for all market named as potential strategic partners. players, traditional and new” and for telecoms rules to (September 17, 2015) telegeography.com be “effective”. Telecoms law expert Diane Mullenex of Pinsent Masons, the law firm behind Out-Law.com, said the Commission’s consultation coincides with changing Cyprus consumer priorities as well as “the convergence of Cyprus’ Ministry of Communications & digital services”. She said both those issues need to be Works has opened a public consultation addressed in a policy debate. “This needs to be done for a proposed tender for communication at a European level,” Mullenex said. “From personal network licenses using the 800MHz, data requiring more up-to-date protection standards to 1470MHz, 2600MHz and 3600MHz frequency bands. the perceived barriers in switching apps and operating Under the terms set out by the document, the spectrum system, consumers do feel a need for more flexibility available for use was listed as follows: and clarity.” In its consultation on the evaluation and • 2×30MHz in the 832MHz-862MHz/791MHz- the review of the regulatory framework for electronic 821MHz band; communications networks and services, one issue the • 40MHz in the 1452MHz-1492MHz band; Commission asked for views on is on whether and • 2×70MHz paired blocks in the 2500MHz- to what extent ‘over-the-top’ (OTT) communication 2570MHz/2620MHz-2690MHz and 1×45MHz in services should be regulated. OTT service providers, like the 2570MHz-2615MHz band; and WhatsApp and Skype, rely on telecoms networks run • 400MHz in the 3400MHz-3800MHz band. by telecoms operators to deliver rival communication The regulator disclosed that four authorizations services to the ones the telecoms operators provide (three frequency division duplex [FDD] and one time to consumers. Telecoms companies have argued that division duplex [TDD]) will be offered in the 800MHz it is unfair that the OTT providers are subject to fewer and 2600MHz bands – most suitable for Long Term regulations than they are despite the end services Evolution (LTE) services – with geographical coverage delivered to consumers being essentially the same. obligation of 60% by end-2018 and 75% (2020). A The Commission’s consultation has asked stakeholders total of six concessions – three TDD and three FDD – for their views on whether it is necessary to alter how in the 3600MHz band (suitable for WiMAX services) will ‘electronic communications services’ is defined within be offered to existing mobile network providers and the EU telecoms regulatory framework to ensure a “level newcomers. All authorizations will be valid for 15 years. regulatory playing field”. Stakeholders have been asked The ministry has invited all interested parties to submit if they think that “traditional electronic communications their comments on the proposed auction provisions by services (such as voice or video telephony, SMS/text October 2, 2015, while also requesting comments on the messages, e-mails operated by telecoms providers, potential use of spectrum in the 1470MHz band. other services) can be functionally substituted by OTT (September 7, 2015) telegeography.com services or platforms with communication elements (e.g. internet telephony services, web messaging services, webmail services, social media platforms, other)”. If so, El Salvador should those OTT services “fall under a new common The government of El Salvador has definition” for ‘electronic communications services’, presented a bill to Congress proposing the Commission asked. Among the other issues that the introduction of a 10% tax on the Commission has asked for stakeholders’ views telecommunications services, according on is whether allocation of radio spectrum across to El Nuevo Diario. Entitled ‘Special Contribution for Europe should be more harmonized and whether any Citizen Security and Coexistence’, the tax is intended “barriers” to the access of harmonized spectrum need to earn an annual contribution of US$140 million to to be removed “in order to foster economies of scale for security, specifically for the implementation of measures wireless innovations and to promote competition and envisaged under the El Salvador Insurance Plan. The tax investment”. The Commission also framed questions is to be paid by users and resellers of telecoms services; a around the sharing of spectrum. It said spectrum sharing date has not been given for its possible implementation. “should enhance competition from additional users (September 21, 2015) telegeography.com and in particular should not create undue competitive

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SAMENA TRENDS _ SEPT 2015 SAMENA TRENDS _ SEPT 2015 advantages for current or future right-holders or result Iliad-owned telco will hold 15MHz duplex in France’s in unjustified restrictions of competition”. “In principle, highly pressurized mobile marketplace. ARCEP said the beneficial sharing opportunities (BSO) can be identified, decision is the result of terms laid out in April 2013 and in both licensed and license-exempt frequency bands, July this year for the re-farming of 4G spectrum from wherever the combined net socio-economic benefit of Bouygues Telecom, Orange and SFR so that some of it multiple applications sharing a band is greater than the can be relinquished to Free Mobile. Bouygues, Orange net socio-economic benefit of a single application, taking and SFR will each hold 20MHz following the changes. into account additional costs resulting from shared use,” France’s mobile marketplace has undergone significant it said. The Commission’s consultations are open until turbulence following Free’s arrival, with Bouygues December 7. EU commissioner for the digital single experiencing ongoing losses and Orange having only market Andrus Ansip said: “The internet is the oxygen of just returned to growth. Meanwhile, Free’s financials our digital economy and society. We are more and more continue on the up. The operator saw sales grow seven connected, at every moment, everywhere. This means percent to €2.16 billion between January and June, while that access to high-speed and high-quality internet has profits rose 16.4 percent to €163 million. According to become essential to every European: people, companies, Iliad, Free now holds a 16 percent share of the country’s organizations or public bodies.” (September 11, 0215) out-law.com mobile market with nearly 11 million subscribers. (September 14, 2015) mobileeurope.co.uk Finland Almost a quarter of Finnish households Guam now have a fixed broadband connection Guam’s Public Utilities Commission (PUC) that offers downlink speeds of more has approved the acquisition of full- than 100Mbps, according to new data service telecoms operator GTA by PT published by the Finnish Communications Regulatory Telekomunikasi Indonesia (Telkom), Pacific Authority (FICORA). In total, of the 1.730 million fixed Daily News reports. The Indonesian company revealed broadband accesses in the country at end-June 2015, in June that it had reached a definitive agreement to 23% of these were capable of a downlink rate in excess of acquire GTA from funds serviced by Japanese private 100Mbps, compared to 20% at the end of 2014 and 18% equity firm Advantage Partners. Under the terms of a year earlier. Meanwhile, the proportion of customers the transaction, Telkom USA (established in December connecting at slower speeds continued to diminish, 2013 as an international arm of Telkom) will acquire with just 2% of all customers signed up to a service GTA’s parent company TeleGuam Holdings. The deal also offering a downlink rate of 2Mbps or below, compared requires approval from the US Federal Communications to 3% at mid-2014. In terms of access types, although Commission (FCC). Telkom noted that Guam’s xDSL remained the most popular, the proportion of geographically strategic location – numerous submarine customers connecting via the technology fell to 895,000 cables between Asia and the US land on the island – will at 30 June 2015, down from 963,000 six months earlier improve its position in the Asia Pacific region as a hub and 996,000 at mid-2014. By comparison, Ethernet and for international traffic. The acquisition will strengthen fiber-to-the-x (FTTX) connections combined to total the Indonesian firm’s portfolio of international 412,000 at end-June 2015, up from 347,000 twelve operations, which includes Telin Singapore, Telin Hong months previously, with cable broadband accesses also Kong, Telkom Australia, Telkom Taiwan, Telkom USA, rising, from 351,000 to 401,000 over the same period. Telin Malaysia, Telkom Macau, Telin Timor-Leste and a Meanwhile, with regard to pricing, the FICORA said that branch in Myanmar. TeleGeography’s GlobalComms telephone and data transfer services were becoming Database states that Advantage Partners acquired GTA increasingly less expensive when measured in terms of from Shamrock Capital Advisors in June 2011. The latter the average monthly price paid by consumers. As an had bought GTA from the government in January 2005. example, the regulator said that while the average price (September 1, 2015) telegeography.com for a broadband connection was EUR21 (USD23.8) per month in 2014, in the first half of this year that figure had declined to EUR19. (September 18, 2015) telegeography.comm India India’s Department of Telecommunications (DoT) expects to complete a spectrum France swap with the Ministry of Defense (MoD) Starting on May 25, 2016, Free Mobile will that will free up 15MHz of 2100MHz band have a 15 MHz duplex in the 1800MHz frequencies for commercial use by end-December this band. ARCEP has adopted a decision year, the Economic Times writes. The two ministries assigning the operator an additional 10 agreed earlier this year to a spectrum swap, through MHz duplex on that date, to supplement the 5 MHz which the MoD would return its 15MHz of frequencies in duplex which it has already been assigned in this band. the 2100MHz band in exchange for the same amount of This decision follows through on the decisions adopted spectrum in a dedicated ‘Defense Band’ in the 1900MHz on 4 April 2013 and 30 July 2015, which set the terms range. According to a senior DoT official, the ministry and conditions for Bouygues Telecom, Orange and SFR is in the final stages of harmonizing the spectrum and refarming the band for 4G, and which plans on having expects to complete the process by December 2015, these three operators relinquish a portion of their at which point the DoT ‘will be in a position to decide frequencies so that they might be assigned to Free who will go where and what will be the time frame.’ The Mobile. This marks the final stage in implementing the process will increase spectrum efficiency and free up guidelines on introducing technological neutrality in additional frequencies for commercial use, the official the 1800 MHz band, which were published on 12 March added. (September 29 2015) telegeography.com 2013. (September 16, 2015) cellular-news.com

The telecom regulator ARCEP has awarded the operator The Indian government’s recent rulings on spectrum an additional 10MHz in the 1800MHz band, adding to trading and sharing is expected to complicate the its pre-existing 5MHz holding. From May next year, the proposed merger of Reliance Communications (RCOM)

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and Sistema Shyam TeleServices (SSTL), as the Russian- owned operator would be required to pay out an Italy additional INR30 billion (USD450.5 million) to the The Italian government’s finance government, the Economic Times reports. Under the committee, the Comitato interministeriale new rules for trading spectrum, if an operator wishes to per la programmazione economica trade 800MHz frequencies awarded in the March 2013 (CIPE), has said it will be releasing the auction it must pay the government the difference of the first EUR300 million (US$D336 million) funding for the original price and the most recently discovered price (i.e. country’s ultra-broadband rollout program in 2016. The the March 2015 price). The additional charge is based body says that a further EUR450 million will be made on the fact that the airwaves awarded in March 2013 available in 2017, EUR500 million in 2018 and 2019, were non-contiguous, whilst the most recent allocation and EUR450 million in 2020, taking the total funding to of 800MHz frequencies were contiguous, and therefore EUR2.2 billion. The government monies will go towards more valuable, as they can be used for 4G services. deploying high speed infrastructure in unserved and Commenting on the issue, a spokesperson for SSTL underserved areas, which are home to around 35% of was quoted as saying: ‘Regarding the issue relating to Italy’s population. Further capital will come from the EU, payout of any kind on account of spectrum contiguity, taking public funding to around EUR7 billion, while the the matter is sub-judice with TDSAT [Telecom Dispute private sector is expected to come up with around EUR5 Settlement and Appellate Tribunal] since February 2015 billion as part a wider 20-year broadband development and the company is hopeful of a favorable judgment in scheme. Under the Italian government’s plan, 85% of all this regard.’ The spokesperson also stressed that talks households will have access to a 100Mbps connection regarding a tie-up with RCOM are ‘indicative and non- by 2020, with the remaining homes being offered a binding in nature.’ (September 11, 2015) telegeography.com minimum 30Mbps service. Tenders for the first phase of the network rollouts are expected to be launched before Spectrum trading is expected to reduce the number of the end of the year. (September 29, 2015) telegeography.com telecom operators leading to a higher market share as well as curb aggressive bids in the upcoming auction The Italian telecoms regulator Agcom has announced of mobile airwaves, credit rating firms Fitch and Ind- that four of the country’s dominant ‘full’ MVNOs must Ra today said. With the new norms that allow telecom apply the same mobile termination rate (MTR) as operators to sell spectrum, the industry could see network operators TIM, Vodafone, Wind and 3 Italia. The emergence of four pan-India players -- Bharti Airtel, watchdog has completed an analysis of the market for Vodafone India, Idea Cellular and Reliance Jio Infocomm voice call termination on individual mobile networks, -- while others may exit, according to India Ratings and and now says that resellers Poste Mobile, BT Italia, Research (Ind-Ra). The agency expects Aircel, Reliance Lycamobile and Noverca should be subject to an MTR of Communications and Tata Teleservices to head to the EUR0.0098 (US$0.0128) per minute, covering the period exit door. “Aircel may consider exit in Gujarat, Haryana, 2014-2017. While not owning any wireless spectrum, the Kerala and Madhya Pradesh. Reliance Communications four full MVNOs do provide voice termination to other may look to monetize its under-utilized spectrum in operators using their own infrastructure. Italy was home Jammu and Kashmir, the North-East, and similarly, Tata to an estimated 6.6 million MVNO customers at the end Teleservices may evaluate exit options for Himachal of June 2015, according to Database, with Poste Mobile Pradesh and Rajasthan,” Ind-Ra said. “The top three accounting for more than 52% of the overall MVNO telcos, including market leader Bharti Airtel, have market by subscribers. (September 15, 2015) telegeography.com increased their combined revenue market share to 73 per cent... their ability to trade spectrum may curtail Italy’s Ministry of Economic Development has raised excessive bidding in future spectrum auctions,” Fitch EUR462 million (US$518 million) from the sale of said. The government received the highest bid of over L-Band spectrum in the 1452MHz-1492MHz range. TIM Rs 1.1 lakh crore in spectrum auction held in March. Idea (formerly Telecom Italia) paid EUR230.3 million for its Cellular made a bid worth Rs 30,307 crore to purchase 20MHz allocation (1452MHz-1472MHz), while Vodafone spectrum. Fitch Ratings is of the view that the top paid EUR231.9 million for frequencies between 1472MHz three telecom operators -- Bharti Airtel, Vodafone and and 1492MHz. The spectrum is currently designated for Idea Cellular -- may further consolidate their market digital radio broadcasts in Italy but is largely unused. share by acquiring additional spectrum from smaller The European Union is pushing for the L-Band to be telcos, decongest their network, and support their fast- harmonized for mobile broadband use. growing 3G/4G services. Spectrum trading coupled (September 11, 2015) telegeography.com with sharing will spur consolidation as it provides an exit route to smaller loss-making telcos that have struggled to generate positive operating cash flows, the International Telecom Union agency said. “Smaller telcos -- including Tata Telecom, The ITU’s latest broadband report made Videocon Telecom and Aircel -- suffer operating losses, for disappointing reading on Monday, are struggling to gain market share, and are saddled as the UN telco body revealed it has with high debt. These businesses could trade their missed its 2015 broadband targets and under-utilized spectrum assets with larger telcos in loss- admitted those same targets are unlikely to be met by making Indian circles to focus only on profitable ones,” 2020. The ITU and UNESCO’s Broadband Commission Fitch said. Reacting to Fitch observations, Videocon for Digital Development announced on Monday that Telecommunications Director and CEO Arvind Bali said: global broadband uptake will reach 3.2 billion in 2015. “I think it’s too early for anyone to comment on our This equates to around 43.4% of the world’s population, financial and business health. We are a long-term and some way off the target of 60% set by the UN in 2011. serious player, and we are here to stay.” Additionally, Broadband penetration in developed economies is Fitch Ratings said, the spectrum trading and sharing nearing saturation, with 82.2% of people online as of guidelines are likely to reduce regulatory uncertainty 2015. The picture is somewhat different in developing and ease network congestion that can help in reducing countries though, where Internet penetration is set call drops. (September 10, 2015) newindianexpress.com to surpass 35.3% by the end of the year, below the Broadband Commission’s 50% target. In so-called least

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SAMENA TRENDS _ SEPT 2015 SAMENA TRENDS _ SEPT 2015 developed countries (LDCs), penetration will reach but the regulator is considering setting a cap on the 9.5%, missing a target of 15%. “The UN Broadband amount of spectrum any one player can acquire in order Commission’s 2011 targets have not been achieved to facilitate the entry of new players. It proposes to by the target date of 2015 and seem unlikely to be carry out a combinatorial clock auction (CCA), a format achieved before 2020,” the ITU said. Around 57% of the commonly used in Europe and elsewhere, for what it says world’s population, some 4 billion people, still have no is the first time in Latin America. “This format generates access to the Internet. The ITU described the situation results that improve efficiency in the use of spectrum in the world’s 48 LDCs as “critical”, with more than 90% and therefore improve competition in the long term in of people in those countries still lacking any kind of the mobile market” the IFT said. (September 21, 2015) totaltele.com connectivity. “The market has done its work connecting the world’s wealthier nations, where a strong business case for network rollout can easily be made,” said ITU Moldova secretary-general Houlin Zhao, in a statement. “Our Moldovan telecoms regulator the important challenge now is to find ways of getting National Regulatory Agency for Electronic online the 4 billion people who still lack the benefits Communications and Information of Internet connectivity, and this will be a primary Technology (ANRCETI) has invited focus of the Broadband Commission going forward.” applications from local and international companies The Broadband Commission also said that by 2015 interested in participating in an upcoming auction for every country should have a , public mobile spectrum licenses. A total of 16 spectrum and that entry-level broadband services in developing licenses will go under the hammer, including one license countries should cost less than 5% of average monthly for frequencies in the 800MHz band, two for the 900MHz income. They were described back in 2011 as “ambitious band, two concessions in the 2100MHz range, three in but achievable targets”. The ITU said on Monday that the 2600MHz band, and eight licenses in the 3400MHz- the world has made progress on affordability and 3800MHz range. Potential bidders are required to broadband policy, but has still not achieved its targets. submit applications to the ANRCETI by November 13. By the end of 2014, broadband cost more than 5% of (September 25, 2015) telegeography.com the average monthly income in 85 of the world’s 196 countries. In addition, 42 countries still did not have any form of national broadband plan. “We need to measure Nigeria global development by the number of those being left Nigerian telecom operators have behind,” Zhao said. (September 21, 2015) totaltele.com been ordered by Nigeria’s president, Muhammadu Buhari, to deactivate 37.79 million mobile phone lines as part Kyrgzstan of a move to eradicate the Boko Haram insurgency Kyrgyzstan’s State Property Management within three months. The move is designed to hit the Fund has reportedly concluded an auction terrorist group, which uses mobiles to co-ordinate mass of LTE-suitable spectrum in the 800MHz atrocities. This is according to a report by TechForge via band, local news source Tazabek reports. Telecompaper. The report reveals that four of the biggest With the sale process having offered up three lots of mobile operators in the country, MTN, Airtel, Glo, and frequencies in the aforementioned band, these were Etisalat, all deactivated mobile lines with unregistered, split as follows: 806MHz-811MHz/847MHz-852MHz, or improperly registered, subscriber information 811MHz-816MHz/852MHz-857MHz and 816MHz- since 7 September, resulting in a NGN 251.94 million 821MHz/857MHz-862MHz. Having set a price of (USD 1.25 mln) daily loss of revenue. Etisalat had the KGS238.803 million (US$3.48 million) per concession, the most improperly-registered lines and 19.46 million three winning bidders have been named as Nur Telecom deactivations, followed by MTN (18.6 mln), Airtel (7.4 (O!), Sky Mobile () and Megacom (Kyrgyzstan). mln) and Glo (2.33 mln). The report reveals that the The report did not, however, note which concession decision to deactivate mobile lines was made after a had been awarded to which company. (September 29, 2015) meeting between network operators, telecom regulator telegeography.com NCC, the Office of the National Security Adviser (ONSA) and Department of State Service (DSS). (September 18, 2015) itnewsafrica.com Mexico Mexico’s telecoms regulator on Sunday The National Broadcasting Commission (NBC) has announced that it will auction off 80 reportedly awarded spectrum in the 700MHz band to MHz of mobile spectrum in the AWS- MTN Nigeria, the country’s largest mobile operator by 1 and AWS-3 bands in January, and subscribers. the NBC’s director general, Emeka Mba, as called for public comments on its plans. The Federal saying that the licensing would help fund the digital Telecommunications Institute, known as IFT or Ifetel, switchover process, which would lead to more spectrum said it will sell 30 MHz of AWS-1 spectrum (1710-1725 being freed up and reallocated. In response to criticism MHz/2110-2125 MHz) and 50 MHz of AWS-3 spectrum that telecoms regulator the Nigerian Communications (1755-1780 MHz/2155-2180 MHz). The spectrum is Commission (NCC) was not informed of or involved in suitable for the provision of LTE services, the regulator the spectrum deal, Mba said that the NBC is responsible said in a statement. The contest will be open to Mexico’s for frequencies in the 700MHz band, as it is broadcasting existing mobile operators as well as newcomers wishing spectrum. ‘The NBC and the NCC regulate separate to roll out a Mexican mobile network. IFT will make and clearly demarcated sections of the spectrum. Each auction documentation available in November with a administers its own bundle without interference from view to start the bidding process in January 2016. In the the other. The basis for prior notification of the NCC meantime, it is calling for comment on the format of the ahead of the licensing of MTN does not arise at all, sale, including on the size of available spectrum blocks, constitutionally, legally and by regulatory practice. The reserve prices, and the issue of contiguous spectrum. IFT license issued was for a converged digital broadcasting proposes selling off 5 MHz blocks of paired spectrum. license based on the existing National Frequency Participants will be permitted to bid for multiple blocks, Management Commission (NFMC) protocol for broadcast,’ he said. (September 17, 2015) Daily This Day

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Peru UKE, has told Reuters: ‘Every frequency sale process in Peruvian telecoms regulator Organismo Poland was subject to legal quarrels and this one will Supervisor de Inversion Privada en surely not be any different … In no way does it (Halicki’s Telecommuniciones (Osiptel) has decision) limit the rights of auction participants. And published proposals for the introduction there will always be winners and losers.’ of regulations governing net neutrality. ‘These rules (September 25, 2015) telegeography.com protect the rights of customers to use any type of traffic, protocol, application or service of their choice Ministry of Administration and Digitization (MAC) has – within legal limits – and use internet access services,’ begun a week-long consultation into the possibility of Osiptel president Gonzalo Ruiz Diaz explained, noting: ending the country’s ongoing 4G wireless spectrum ‘In addition, these proposals establish a predictable auction. According to a report from Rzeczpospolita, the framework conducive to the development of new MAC is considering imposing a 115-day limit on the internet-related products and services.’ The proposed bidding process, which would force the sale to a halt regulations would prohibit internet service providers next month. Although the auction began more than six (ISPs) from using measures to arbitrarily manage months ago, there have been several pauses to enable bandwidth, or prioritize, degrade or limit particular types operators to make deposit payments, meaning that so of traffic. Further, providers may not block ports, domain far there have been around 100 days of actual bidding. names, IP addresses or applications arbitrarily. In certain The six firms in the running for frequencies have to cases, however, Osiptel may permit the implementation date entered offers totaling PLN6.68 billion (US$1.77 of the measures listed above. Similarly, operators will be billion), well above the PLN1.6 billion reserve price. permitted to establish measures blocking applications While authorities are worried that the winning bidders and services that are deemed to be illegal. Interested will be forced to recoup the hefty license fees by passing parties have until October 9, 2015 to submit their the charges on to consumers in the shape of higher comments. (September 9, 2015) telegeography.com tariffs, there has been speculation that any government interference in the auction could result in legal action being taken by cellcos unhappy with the final results. Poland There have been suggestions that the auction should Poland has been running an auction of be cancelled altogether and restarted in a different mobile spectrum for more than seven format. The bidders include existing cellcos Orange months, but the process may finally come Polska, T-Mobile Poland, Polkomtel and P4 (Play), plus to an end in the coming weeks following a company associated with Emitel, and NetNet, which is government intervention. The state will allow regulatory owned by Szymon Ruta, who has links to body the Office of Electronic Communications (UKE) to and Polkomtel. (September 4, 2015) telegeography.com speed up the sale by setting a deadline for its conclusion, Reuters reported. The auction could be brought to a close in the first 10 days of October; the newswire Romania quoted the head of Poland’s Ministry of Administration Romanian regulator ANCOM has and Digitisation, Andrzej Halicki, as saying. He added launched the selection procedure for the that facilitating the distribution of the spectrum is in upcoming 3.4GHz-3.8GHz broadband the best interests of the population. Poland is selling wireless access (BWA) license auction, off spectrum in the 800 MHz and 2.6 GHz bands. On with a deadline for applications set as October 5. Thursday bidding had reached 7.6 billion zloty (€1.8 Qualified bidders will be announced by October 12. billion), according to the UKE. The bulk of the spend is If demand exceeds the available spectrum resources, in the 800 MHz band, which accounts for almost PLN7.1 a primary auction round is scheduled to begin on 26 October 2015. New concessions in the band – currently billion of the total. (September 25, 2015) totaltele.com occupied by Radiocom, 2K Telecom, Orange, Vodafone and UPC – will take effect on January 1, 2016 for ten The government initially aimed to raise upwards of years. (September 11, 2015) telegeography.com PLN1.6 billion, Bloomberg reported at the start of the year, although analysts predicted the final total would Romania’s National Authority for Management and come in at around twice that amount. The Polish Regulation in Communications (ANCOM) has confirmed government has approved measures which will allow the details relating to its upcoming tender for spectrum in ongoing 4G spectrum auction to be brought to an early the 3410MHz-3600MHz and 3600MHz-3800MHz bands. close. The Minister of Administration and Digitization, By year-end the regulator expects to auction off 16 Andrzej Halicki, has given the Office of Electronic paired blocks (2×5MHz) of spectrum in the 3410MHz- Communications (UKE) legal power to end the bidding, 3600MHz band, alongside 36 unpaired 5MHz blocks of which has been running since February and shows no 3600MHz-3800MHz spectrum; all frequencies will be signs of ending. Authorities are concerned that the high available on a nationwide basis, and be made available cost of spectrum – bids already total PLN7.39 billion for wireless broadband use. As per a government (US$1.95 billion) – will be passed on to consumers in decision dated 26 August 2015, starting bids for the form of tariff hikes. UKE had previously tabled a blocks of 3410MHz-3600MHz spectrum will begin at plan to end the auction after 115 days of bidding, which EUR370,000 (US$414,000), with a 50% reduction for the is expected to see an end to the sale by mid-October. 3600MHz-3800MHz frequencies (EUR185,000). The new Olympia Development, the Greece-based owner of spectrum usage rights will enter into force from January Poland’s fourth largest cellco P4/Play, is threatening to 1, 2016 and be valid for a ten-year period. According to sue for up to EUR500 million (US$557 million) in ‘tangible ANCOM, there are seven 3410MHz-3600MHz licenses damages’ and an ‘irreversible infringement of interests’ currently in circulation, held by Orange Romania, UPC should the sale be interrupted. Other bidders, including Romania, and 2K Telecom. The sole number three player Polkomtel and market leader 3600MHz-3800MHz concession is held by the National T-Mobile, have also criticized the plans to cut short the Broadcasting Company; all eight licenses are valid until auction process. However, Magdalena Gaj, the head of December 31, 2015. (September 4, 2015) telegeography.com

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Russia South Africa Russia’s four main mobile operators will JSE-listed Allied Electronics Corporation take part in the auction of 1800-MHz (Altron) is planning to sell off the mobile spectrum due to take place next week, subscriber base of its wholly-owned the regulator announced on Tuesday. subsidiary Altech Autopage Cellular, Roscomnadzor said it has processed applications from estimated at roughly one million, to Vodacom, MTN and MTS, Vimpelcom, MegaFon and Tele2, and all four will Cell C for a combined total of ZAR1.5 billion (USD107.7 be able to participate in the auction. It also revealed million), TechCentral reports. In addition, MTN has that the auction will be carried out electronically. In July agreed to purchase Autopage’s handset receivables the regulator announced that the auction of airwaves book pertaining to its subscriber base for a purchase in the 1710-1785 MHz and 1805-1880 MHz bands will price of approximately ZAR219 million. Altron said take place on 29 September, and shared reserve prices that his mobile unit experienced a tough market and for the available frequencies. The state is selling off the ongoing mobile termination rate (MTR) reductions spectrum in nine regions and has divided the bandwidth compelled it to make the decision to dispose of the GSM into 10 lots, all at different price points. The lowest subscriber base and shut down the business. The deals starting price is half a million roubles (just under €8,000 are subject to customary regulatory approvals. at July exchange rates) for 1 MHz of paired spectrum in (September 24, 2015) telegeography.com the Komi-Permyak Okrug of Perm Krai, while 15 MHz of spectrum in the republic of Dagestan starts at RUB240.4 million (€3.8 million). There are no restrictions on what Spain type of mobile services the spectrum can be used for. Spain is on the verge of launching a While the 1800 MHz band was previously set aside licensing process for spectrum in the for voice communications, Roscomnadzor expects the 2.6 GHz band with a view to boost 4G winning bidders in this auction will use the frequencies coverage, it emerged this week. Speaking for LTE. (September 23, 2015) totaltele.com at an event in Santander on Monday, telecommunications and information society minister Víctor Calvo-Sotelo Ministry of Telecom & Mass Communications (Minsvyaz) said the country will start the 2.6 GHz process “in the has begun accepting applications for federal subsidies coming weeks.” Calvo-Sotelo’s opening speech at a to deploy telecoms networks in the Crimea peninsula in telecoms and digital economy meeting was reported in the three-year period 2015-17. Subsidize are expected to an announcement by Spain’s Ministry of Industry, Energy cover 20%-80% of expenses in projects to interconnect and Tourism. The event was organized by business infrastructure in the Crimea region (including the association AMETIC and the Telefonica Foundation. separately administered city of Sevastopol) with the The minister noted that 4G networks in Spain currently Russian federal telecommunications network. cover 76% of the population, and that the use of digital (September 22, 2015) Telecompaper dividend spectrum for mobile will help boost that figure. Spain carried out a previous auction of 800-MHz and 2.6-GHz airwaves in mid-2011. That sale raised €1.65 Senegal billion. Calvo-Sotelo also addressed the issue of fiber Senegal’s telecoms regulator L’Autorite rollout in Spain. 61% of the population has access to de Regulation des Telecoms et des Postes speeds of 100 Mbps, while 65% has access to 30 Mbps (ARTP) has launched mobile number broadband, he said. (September 2, 2015) totaltele.com portability (MNP), enabling the country’s consumers to retain their phone number if they switch wireless service provider. The transfer of a mobile number Thailand to a different operator is free of charge for consumers. Six companies, including the country’s main At the end of last year the ARTP said it had pushed mobile operators, have collected bidding back plans to launch MNP to 2015, despite previous documents for Thailand’s upcoming 4G assurances that it would go live in October 2014. Tests spectrum auctions, but the state is still relating to the introduction of the MNP system began vacillating over the timing of the sale. AIS’s Advanced on 22 July, ahead of a full-blown launch on September 1, Wireless Network, DTAC subsidiaries DTAC TriNet and 2015. (September 2, 2015) telegeography.com DTAC Broadband, True Move’s True Move H Universal Communication and Hutchison Telecommunications (Thailand), and Jas Mobile Broadband picked up papers Serbia for the 900-MHz auction earlier this week, as soon as Serbia’s telecoms regulator the Regulatory they became available, the Bangkok Post reported. Agency for Electronic Communications The same six also collected bidding documents for the (RATEL) has opened a tender for licenses 1800-MHz sale last month, the paper said. Thailand to utilize spectrum in the 791MHz- has scheduled its 1800-MHz and 900-MHz auctions to 821MHz/832MHz-862MHz range. The nationwide take place a month apart, in November and December concessions will be technology neutral. The auction respectively. However, regulatory body the National comes at a poor time for state-owned incumbent Broadcasting and Telecommunications Commission – operating in the wireless market (NBTC) is now considering holding both auctions at the under the Mobile Telephony of Serbia (MTS) banner same time, on November 11, or rescheduling the 900- – which is currently in the process of being privatized. MHz sale to take place first. The Bangkok Post quoted The government received non-binding bids from eight NBTC secretary general Takorn Tantasith as saying that companies for the state’s 58.11% stake in the telco in the regulator will finalize the date for the 900-MHz sale mid-August. (September 3, 2015) telegeography.com by October 15. Would-be bidders will be able to acquire bidding documents until October 21 and have until October 22 to submit their applications. Whenever the auction happens, the state has four 4G licenses available, two at 900 MHz and two at 1800 MHz. (September 24, 2015) totaltele.com

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National Broadcasting and Telecommunications and 900-MHz spectrum in November and December Commission (NBTC) has confirmed that the auction respectively. In April, it emerged that CAT had earmarked of two technology-neutral 900MHz mobile spectrum THB30 billion for 4G spectrum. It was hoped the auction licenses will go ahead on December 15, 2015, under would foster greater competition in a market dominated a resolution approved by the watchdog’s telecom by AIS, True Corp and DTAC, but with CAT’s withdrawal, committee, the Bangkok Post reports. ‘We decided to that chance might been lost. (September 1, 2015) totaltele.com sell the 900MHz licenses on December 15 in line with the original plan, which the cabinet had approved in March,’ a statement from the NBTC said. An earlier proposal from Timor-Leste the regulator had mooted a 900MHz auction on or near Timor-Leste’s General Directorate of to the upcoming 1800MHz 4G auction set for November Statistics has reported that the country 11, but an NBTC spokesperson was quoted by the Post ended June 2015 with a total of 1.25 as saying: ‘We don’t want to face any possible legal million mobile customers, including backlash if we hold the 900MHz auction together with 145,085 3G network users. Timor Telecom (TT), which the 1800MHz spectrum,’. The NBTC telecom committee held a monopoly on the provision of wireless services has also approved the reserve price for a 900MHz from its launch on March 1, 2003 until the licensing (10MHz bandwidth) license at THB12.9 billion (US$356.4 of two new players in mid-2012, remained the market million) or ‘80% of the estimated real spectrum value.’ leader with a total of 620,204 subscribers at the end of Q2 A previous proposed reserve price of THB11.26 billion 2015 (down slightly from 624,312 three months earlier), had been criticized as too low. Winners of the 900MHz including 7,592 3G customers. Vietnamese-owned cellco licenses will have to roll out 4G networks covering half Viettel Timor-Leste (operating as Telemor) had signed of the population within four years, increasing to 80% up 470,730 mobile users since its launch in April 2013, of within eight years. (September 11, 2015) telegeography.com which 87,493 were 3G network users, while Indonesian- owned Telin Timor-Leste (Telkomcel) reported a total of The full amount of 4G 1800MHz spectrum promised 160,000 customers at mid-2015, including 50,000 3G for auction this November is unlikely to be available, subscribers. (September 10, 2015) telegeography.com Thailand’s National Broadcasting & Telecommunications Commission (NBTC) has admitted. The Bangkok Post quotes NBTC secretary-general Takorn Tantasith as Ukraine saying that the regulator ‘will have to auction only The Ukrainian State Centre of Radio two licenses of 25MHz of bandwidth, with each license Frequencies (UCRF) has launched a public of 12.5MHz, instead of two licenses of 15MHz each.’ tender for the design, development Mr. Takorn explained that the approved auction plan and implementation of the required to include an additional 5MHz of spectrum currently automated information system for a centralized number allocated to Digital Total Access Communication (DTAC) portability database. The procurement notice posted requires amendments to DTAC’s build-transfer-operate on the UCRF website indicates that applications from (BTO) mobile concession issued by state-owned CAT potential hardware and software providers should be Telecom, which will take several months to complete processed next month. The UCRF’s executive director before being submitted to the Thai cabinet for approval. Jaroslav Yanushevich has set a target of launching The concession amendment is necessary in order mobile number portability (MNP) by the end of the first to comply with the Public-Private Joint Venture Act. quarter of 2016. (September 18, 2015) telegeography.com The Post’s report adds that Sanpachai Huvanandana, acting president of CAT Telecom, admitted he learned only last week that the return of the 5MHz would need United Kingdom concession amendments. DTAC nominally holds 50MHz The telecoms regulator has given the of 1800MHz bandwidth under the 2G BTO concession go-ahead to the transfer of Qualcomm’s with CAT, due to expire in 2018, although it only uses L-band spectrum to Vodafone and 3UK. 25MHz; the 5MHz portion is part of the unused 25MHz. “We do not consider that either of the (September 7, 2015) telegeography.com proposed transfers raises sufficient competition issues to justify further analysis,” OFCOM said. The regulator said Thailand’s hopes of stimulating competition in the mobile it reached its decision after conducting an initial analysis market via its upcoming 4G auction were dealt a blow on of the two deals. Qualcomm last month confirmed that Monday when CAT Telecom reportedly cancelled its plan it had agreed to sell 40 MHz of spectrum to the mobile to participate. According to the Bangkok Post, the state- operators, but did not disclose further details of the owned telco failed to find a strategic foreign partner. The deals, including the price. There was no indication of the company had been in talks with Japan’s NTT DoCoMo value of the deal from Ofcom either, but the regulator and South Korea’s SK Telecom over a possible 4G MVNO fleshed out the details a little, noting that Vodafone will deal, and the latter had allegedly agreed to bid with CAT take ownership of the 1542 MHz-1772 MHz frequencies in the auction. However, “with the degree of uncertainty and 3UK the 1472 MHz-1492 MHz. The operators regarding the auction delay and the unclear auction bought the spectrum after the EU decided to allocate design, negotiations between the parties collapsed,” said the L-band for use as supplemental downlink (SDL) to Colonel Sanpachai Huvanandana, acting president of boost 4G capacity. As part of its investigation, Ofcom CAT Telecom, in the report. Indeed, Thailand’s 4G auction looked at whether the deals would create asymmetries has been subject to repeated delay, not least because of in the allocation of spectrum in the U.K., but concluded the military coup in April 2014. Meanwhile, the Bangkok that they would not, given that on completion of the Post said Monday that CAT was also put off by having deals both Vodafone and 3UK would still have less to disclose its budget and have it approved by the spectrum than rival EE (see chart). The regulator noted government ahead of the auction. “This is impractical, as that a case can be made for the L band to be considered other bidders would know our maximum bid. It’s barring as low-frequency spectrum, since it is similar to the us from competing in an auction,” Sanpachai said. In 800 MHz and 900 MHz bands. This could be an issue, March Thailand revealed that it hopes to raise more than since Vodafone already holds the maximum permitted 61 billion baht (€1.5 billion) by auctioning 1800 MHz amount of sub-1 GHz spectrum, Ofcom said. However, it

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SAMENA TRENDS _ SEPT 2015 SAMENA TRENDS _ SEPT 2015 ruled that in either case the spectrum transfer would not the reliability of the service is as good as our current distort competition and therefore elected to refrain from voice service. We’re currently maintaining a dropped call making a decision on the classification of the L band. rate of 0.4% and CS fall back is performing very well – (September 24, 2015) totaltele.com we’ll only launch a new voice service when it’s on a par with, or better than, what customers are currently using.’ British mobile network operators will be required to pay (September 9, 2015) telegeography.com significantly higher fees to use spectrum in the 900MHz and 2100MHz bands following a final ruling from sector regulator OFCOM. The telecoms watchdog has United States published revised annual fees, concluding that the UK’s Sprint will not participate in the US cellcos should pay a combined annual total of GBP80.3 incentive auction of 600MHz, scheduled million (US$D123 million) for the 900MHz band and for early 2016, claiming it already has GBP119.3 million for the 1800MHz band. While the total enough spectrum, plus the means to make – GBP199.6 million – represents a significant increase its existing supply run more efficiently. The operator is from the GBP64.4 million the operators currently pay, in the midst of a turnaround inspired by CEO Marcelo Ofcom noted that it is 13% lower than the proposals it Claure. “Sprint’s focus and overarching imperative must put forward in February this year. Explaining its decision be on improving its network and market position in the to revise its original plans, Ofcom said that the final immediate term so we can remain a powerful force in levy for the 1800MHz band was 3% lower, reflecting fostering competition, consumer benefits and innovation a reduction in the ‘discount rate’ used to convert a in the wireless broadband world,” he stated. Instead ‘lump-sum value’ (of the type paid by licensees when of splashing out on what is likely to be a billion-dollar they acquire a license in an auction) into an equivalent contest, the operator will concentrate on improving annual payment. Meanwhile, the final charges for the coverage and capacity by densifying its network and 900MHz band, which are 24% lower than the February increasing cell sites. Sprint pointed to new technologies, 2015 proposals, reflect the discount rate reduction and including carrier aggregation that will squeeze more the prices paid in Germany’s spectrum auction, which usage out of its 2.5GHz holdings. It claims its strategy concluded in June 2015. These new fees come into effect is already bearing fruit, based on RootMetrics’ surveys. in two phases: one half of the increase, from the current The operator also stated its support for reform of so- to the new rates, is applicable from October 31, 2015, called special access, the last-mile fixed connections that while the full fees will subsequently be payable annually are overwhelmingly controlled by AT&T and Verizon. from October 31, 2016. Additionally, despite the nation’s Sprint and others are unhappy about the pricing, terms operators having previously paid their respective and conditions associated with these connections. FCC charges at different points in the year, in the future chief Tom Wheeler has been looking to drum up interest there will be a single common payment date set by in next year’s incentive auction for some time. So far, the regulator. Commenting on the development, Philip AT&T has shown the most enthusiasm, while T-Mobile Marnick, Ofcom’s Group Director of Spectrum, was cited US and Dish have also said they would take part in as saying: ‘We have listened carefully to the arguments the contest. Wheeler recently suggested that 600MHz and evidence put forward by industry, and conducted a would be key to future deployment of 5G. The auction complex and comprehensive analysis to determine the is unusual in that the regulator is buying back spectrum new fees … The mobile industry has not previously had from TV broadcasters, and then selling it to the mobile to pay market value for access to this spectrum, which is industry. The National Association of Broadcasters (NAB) a valuable and finite resource, and the new fees reflect mounted a legal challenge to the auction but lost the that value.’ (September 24, 2015) telegeography.com case. (September 15, 2015) mobileworldlive.com

EE will begin utilizing the 800MHz frequencies it acquired The smart city era is just beginning. After years of in the February 2013 4G spectrum auction by the end of communities experimenting individually with new smart this year, according to Telecoms.com, citing comments city technologies, the White House has declared it will made by the cellco’s Director of Network Services and invest more than $160 million in an effort to turn those Devices, Tom Bennett. Alongside acquiring 2×35MHz in experiments -- and new ones -- into joint initiatives and the 2.6GHz band, EE secured a 2×5MHz block of spectrum projects with the potential to benefit the entire country. in the 800MHz band, paying GBP588.876 million (around In an announcement at the White House Smart Cities US$890 million) in total. With local telecoms regulator Forum, held in conjunction with Smart Cities Week, the OFCOM having recently introduced a 90% geographical Obama Administration outlined how it plans to allocate coverage obligation, EE is expected to utilize its 800MHz funds for smart city research. The dollars break down holdings to meet this requirement. Commenting on the into two categories, with more than $45 million in grants matter, Mr. Bennett said: ‘Our focus from launch was to and investments going towards building a research cover as much of the UK as possible using our 1800MHz infrastructure for smart city development and about spectrum, ensuring a fantastic experience for customers $115 million in proposed spending and investments who expect fast downloads … We’re at 93% population dedicated to creating specific new solutions in the areas coverage now, and more than 75% indoor coverage – of “safety, energy, climate preparedness, transportation, 800MHz will help us lift these metrics, complementing healthcare and more.” While the largest chunk of money our 1800 base layer.’ One other development expected in the White House effort will come from individual to be linked to the utilization of its 800MHz spectrum federal agencies like the Department of Homeland is the commercial deployment of voice-over-LTE Security and the Department of Energy for topical (VoLTE) technology. EE has been conducting trials of 4G research and development, more than $35 million will over 800MHz during the course of this year, covering come in grants from the National Science Foundation urban and rural areas and it is expected that the initial (NSF) to support smart city programs and, in many rollout focus will be on rural regions. While EE had cases, collaborative efforts to weave those programs previously indicated it was aiming for a ‘summer’ launch together. Gigabit Cities will play a large role in the newly of VoLTE, a concrete date has yet to be confirmed for funded smart-city research. The NSF is committing $11.5 the technology’s introduction, with Mr. Bennett noting: million to US Ignite and the Mozilla Foundation to create ‘We will make VoLTE available to our customers when “Living Labs” in several gigabit communities that are

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using high-speed broadband to develop and scale smart mobile market. In October 2014 however Vietnamobile city application prototypes. The goal is ultimately to and state-owned GTel Mobile (Gmobile) asked the MIC create a “smart city app store” with interoperable gigabit to postpone the introduction of MNP to the end of 2018. applications contributed by multiple communities and The two operators argued that they require more time to offering smart city solutions. The rollout of gigabit prepare for the launch of MNP as their businesses have broadband access networks is spreading. The idea of been undergoing a restructuring. connecting individual community efforts is important for (September 14, 2015) telegeography.com several reasons. First, changes in political leadership can disrupt smart city projects. But if the scale of an initiative extends beyond a single community, than it’s more likely Zimbabwe to survive and flourish. (See Smart Cities Need Long- The Postal and Telecommunications Term Goals to Thrive.) Second, different cities have a lot Regulatory Authority of Zimbabwe that they can learn from each other -- from fundamentals (POTRAZ) says new regulations like how to pool assets to support gigabit network covering infrastructure sharing among expansion to specific application use cases, like how the country’s telecoms operators will be sent to the to integrate a gigabit network with power distribution ICT Ministry by the end of this week. It has emerged, and management. Connecting Gigabit Cities together however, that Zimbabwe’s largest cellular operator, also creates new opportunities to implement New IP Econet Wireless, and its Liquid Telecom subsidiary strategies like the use of software-defined networking have withdrawn from the consultation process and to deliver network resources where they’re needed most. have not signed off on the final draft of the new policy. Building on work that’s already been done by Internet There has been some speculation that Econet could be 2, along with state and regional networks, communities preparing to challenge the legislation, which will force will be able to experiment with prioritizing network it to open up its networks on a wholesale basis. Last resources for throughput, latency and more in the long- year the government called on domestic operators to haul pipes connecting individual cities, depending on share their network infrastructure such as mobile phone what an application needs. “Building a critical mass of towers in order to reduce rollout costs and allow them communities with next-generation Internet capabilities to cut charges for end users. Econet, which controls will have ripple effects: if networks are fast, reliable and 80% of equipment already in place across the country, widely available, companies produce more capable responded by saying the move would be a ‘disguised, applications to run on those networks, which in turn unconstitutional form of compulsory acquisition’ of its brings new users online and increases use among infrastructure, since its closest rival – and the likely main those who already subscribe to broadband services,” beneficiary of mobile network sharing – is state-owned said US Ignite Principal Investigator Glenn Ricart in a cellco NetOne. (September 2, 2015) telegeography.com statement. He added that “many smart city applications are enabled by the kinds of advanced technology and civic partnerships that [the grant from NSF] will build in US Ignite Smart Gigabit Communities.” Communities participating in the new Living Labs initiative include many familiar Gigabit Cities. They are: Burlington, Vt.; Chattanooga, Tenn.; Cleveland, Ohio; Flint, Mich.; Kansas City, Kan. & Mo.; Madison, Wis.; the North Carolina Next Generation Network (NCNGN); Richardson, Texas; Utah Wasatch Front cities, including Salt Lake City and Provo, Utah; Lafayette, La.; Urbana-Champaign, Ill.; and Austin, Texas. US Ignite membership includes more than 40 communities around the country, so that list could grow in the future. The NSF has also said it is planning new investments in smart cities in 2016. (September 15, 2015) lightreading.com

Vietnam Vietnam’s three largest mobile operators – Viettel Telecom, MobiFone Telecommunications Corporation and VNPT-Vinaphone – are set to trial the implementation of mobile number portability (MNP) in December this year, six months later than planned, Viet Nam News reports. Despite the delay, the Ministry of Information and Communications (MIC) disclosed that the full launch of the service will take place on 1 January 2017, in line with the initial rollout schedule. At a meeting held last week, MIC Deputy Minister Pham Hong Hai highlighted that there would be no more delays in testing the MNP service. Further, the official disclosed that the ministry is planning to propose appropriate Javaid Akhtar Malik regulations to ensure the rights of both providers and Regulatory Affairs subscribers and prevent switching en masse when there SAMENA Telecommunications Council are promotional programs. The MIC signed a decision in September 2013 approving the introduction of

MNP from the start of 2017, with the aim of improving “Information contained herein has been obtained from sources, which we deem reliable. SAMENA Telecommunications Council is not liable for any misinformed decisions that the reader may reach by competition and promoting the development of the being solely reliant on information contained herein. Expert advice should be sought.”

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Emerging trends in regulatory and investment landscape in the regional markets

During the past few decades, the prevalent and be prepared for the future. advancement of telecommunications Advancements in technologies are not changed not only technologies, networks, predictable on long term basis which are services and applications, but the behavior likely to reshape the sector in the coming of consumer of telecommunication years on continuous basis, especially services globally as well as in the with an upsurge in wireless technologies region. The emergence of Information- including broadband, 3G, 4G (LTE) and Communication Technology (ICT) has beyond. given a paradigm shift to the expectation of customers of ICT. During 1990s, the The telecom issues that are currently sector was characterized by state-owned unattended in the region have been national companies in monopolistic given prime importance and are situation; however, in early part of carefully being contemplated for better 21st century the telecommunication tomorrow. These include development landscape has witnessed beginning of a and promotion of suitable policies and competitive environment, withdrawal of regulatory frameworks for new scenarios. the state ownership, emergence of new The rapid pace of change in technology is service providers, transnational service posing a challenge to policy-makers and providers and service providers’ alliances, regulators to tackle the issues related to and the continuous rearrangement of consumer privacy and data protection. their ownership structure, especially in Government entities across the region SAMENA region. are working on legislation on cybercrimes related issues. The implementation Sikandar Naqi The process of change is often volatile of these statutory provisions may be Chief Business Development and responsive to intervention and a challenge to regulators; however, Officer regional circumstances impacting it. It this challenged is being addressed by Pakistan Telecommunication has been thus felt that the regulators having industry level consultation and Company Limited should now need to be more streamlined discussions before promulgating the

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necessary regulations. The ICT is technologies yet for the transition regions has around 25% of world’s encroaching in each and every way of to be smooth & effective, the policy population and ICT sector has to play life providing lot of conveniences to makers and the regulators have to its part to improve the lives of each of masses, however, at the same time the intervene and establish a working one-fourth person living in this planet. looming threats of misuse of the same environment to resolve the following technology are ubiquitous. Therefore, issues: to seek a robust regulatory framework is the prime objective of policy makers • Renewed level of obligations and regulators. on all licensees providing similar services using different The intellectual property right (IPR) technologies regulations are also very critical • Future of telephony and its subject that has been emerged. The numbering regulatory bodies are also working • Spectrum availability through for the development a regulatory digital dividend, etc, keeping framework that balances the interests in view the growth in wireless of suppliers and users in areas of IPRs broadband services without disadvantaging innovation. • Removing overlap between Other important aspect is the different licensing regimes convergence of technology/platform • Resolving interconnect issues and services. Regulatory regimes between the infrastructure which discriminate among service providers and content service providers on account of services are a providers big bottleneck in way of convergence. • Bring OTTs (Over the top service Traditionally, the licensing was carried providers) in regulatory regime. out on services/technology basis. However, it is evident that technology The work in region on reforms has provided options that non- to take care of convergence in licensees have started infringing to telecommunications and broadcasting the revenues of licensed operators. markets is already in progress. The aim The regulators have already started of this effort is to support provision of consultation on convergence issues. converged services with the objective The current licenses were issued of promoting the innovation, the for 15-20 years span, therefore the reduction of prices and an increase of effectiveness of this consultation efficiency in the provision of services. cannot be achieved until licensees Given the state of technological proactively pursue the matter and developments and future trends, show willingness to bring change in it would require a concerted effort prevalent regulatory environment. from all quarters ranging from policy- makers, regulator, service providers In other related areas, market forces and other stakeholders besides generally guide the transition from improvement in the socio-economic conventional to next generation landscape of the region. The SEMENA

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wholesale NEWS

NTT Communications technology options within the region,” Mr. Wheeler added. A major trend for Discusses Growth and the Latin American market continues Opportunities in Latin to be the growth in broadband access despite uncertain economic conditions. American Wholesale Mr. Wheeler said in an interview with Telecom Markets Capacity magazine that this growth is fuelled by the continued modernization NTT Communications Corporation (NTT of the infrastructure which in turn spurs Com), the global data and IP services increased demand. Not surprisingly arm of Fortune Global 500 telecom Brazil, hosting the FIFA World Cup last leader NTT (NTT), announced today year and the upcoming 2016 Summer that the company is sponsoring and Olympic Games, is experiencing much WHOLESALE participating in two major events for the of this investment and growth, but Latin American wholesale IP industry in Mexico, Colombia, Chile, Peru, and other Updates Bogota, Colombia: LACNIC 24 – LACNOG countries are seeing significant industry- 2015 (September 28 to October 02) and related growth as well. Other major trends Capacity Central America & Andean 2015 include the growing concern for security (October 13-14). Even before establishing and ability to mitigate DDoS attacks, a Point-of-Presence (PoP) in Sao Paulo in the investment in software-enabled 2011, NTT Com has been actively working connectivity to support flexible and with regional Latin American providers scalable networks in a fully automated of Internet services (ISPs), content (ICPs) SDN environment, and the transition to and Internet-centric businesses offering 100G technologies. best in class connectivity to international markets through its leading Tier-1 Global IP Network. “The Latin American market Price war, what is it good is very important to NTT Com and among our highest strategic priorities for? Absolutely nothing, when evaluating our network growth and say Myanmar cellcos demand driven expansion,” said Michael Wheeler, executive vice president of the Competition in Myanmar’s nascent NTT Communications Global IP Network mobile market is threatening to drive at NTT America. “Most countries in the prices to unsustainably low levels, region are making a concerted effort the Myanmar Times cites Ooredoo to expand access while simultaneously Myanmar’s chief executive, Rene Meza, seeking to increase innovation and as saying. The price level of services has

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been driven down to the extent that been more consistent, increasing from Voxbone. The draft proposal is open to ‘there will be question marks around USD5.67 to USD5.85 over the same public comment until 15 October. the quality of service for consumers period. going forward and how much we will continue to invest in the market,’ Syniverse Extends LTE the official commented, adding ‘I MTN Uganda slashes call think we reached a certain level too Roaming Reach for quickly… We probably already crossed rates by 45% Dialog Axiata the line between affordability and MTN Uganda has revealed a new tariff Syniverse has expanded its decade sustainable prices.’ Mr. Meza went on for calls across all networks in Uganda. long relationship with Dialog Axiata to say that prices in Myanmar were According to the company, the new by providing the Sri Lankan operator on par with those of more developed rate of UGX 3 per second takes effect with single connection access to markets, where operators had already immediately. MTN Uganda revealed the Syniverse IPX Network Solution. stabilized their investments. Clarifying that the new tariff has reduced its call Through a single carrier-grade the company’s position, the executive rates by 45.45 percent from UGX 5.5 connection to Syniverse’s network, explained that Ooredoo would indeed per second. MTN stated that existing Dialog’s reach has been expanded continue to invest in the market, customers will have to dial *151*2# across the world’s LTE networks. The but there would be pressure on to receive the new call rate while new the industry to remain sustainable, Syniverse IPX Network especially in light of the planned currently serves more introduction of a fourth mobile than 1,000 LTE roaming operator: ‘When the industry stops routes and includes being sustainable then everybody more than 100 LTE loses.’ Takashi Nagashima, the CEO of direct connections that KDDI Summit Global Myanmar, the make it possible for Japanese partner of Myanmar Post and Syniverse to deploy Telecommunications (MPT), echoed LTE and VoLTE around Mr. Menza’s comments, warning that the globe. Syniverse pricing would need to be balanced recently contributed carefully with investment: ‘We have to major industry to expand our network coverage. milestones in LTE by However, to do so we have to invest enabling the world’s a huge amount of money in Myanmar, first transoceanic and those investment will be [made VoLTE roaming call and using] revenue from our services.’ MPT supporting the world’s must react to the changes in the market, first VoLTE roaming service. Recent LTE achievements but the company cannot afford to get customers will receive the new rates also include enabling LTE roaming for involved in a price war, Mr. Nagashima immediately, upon activation of their Saudi Telecom Company and Ooredoo noted: ‘To be honest, we don’t have SIM cards. The rate has also been Qatar. “The agreement with Dialog enough spare money to [engage in] a reduced from UGX 300 down to UGX builds on our long relationship to price war right now. We have to invest 180 per minute for postpaid customers. make mobile work for the operator in the expansion of the network and MTN further stated that it will offer with multiple solutions, including data quality improvement at this stage.’ 7 minutes of free on-net calls for a 7 clearing, roaming fraud protection, Norwegian-backed operator Telenor day period, for all new customers that text and multimedia messaging, Myanmar, which currently offers the activate a new MTN SIM card. lowest rates in the country for basic and Wi-Fi roaming,” said Sanjay voice and data services, has shrugged Kasturia, Vice President and Managing off accusations of sparking a price war Watchdog proposes 37% Director, Sales, India, Syniverse. “These after it responded to price cuts from solutions, combined with the Syniverse Ooredoo by lowering its own tariffs cut to mobile termination IPX Network, set the foundation for further. The cellco’s chief executive, rate Dialog to deploy advanced IP-based Petter Furberg, explained that the services in the future, including Voice company had built its business around The Belgian Institute for Post and over LTE and Video over LTE, as well as a mass-market approach, and had Telecommunications (BIPT) has Rich Communication Services.” expected revenue per customer to be published its draft decision on mobile low. The official went on to confirm that termination rates (MTRs). The regulator Telenor’s intention is to position itself is proposing a 37% cut to MTRs to Sprint expands global as the market leader on price: ‘We have EUR0.0074 per minute based on the roaming to 33 more definitely not been leading in terms of Long Run Incremental Cost (LRIC) driving a price war, but …we are very model. The new pricing will apply to countries, mostly in the clear – we want to be affordable. We seven mobile service providers which want people to see Telenor as the have been found to have significant Caribbean most affordable operator.’ According market power (SMP) in Market 2 for the Sprint added 33 destinations, mainly to TeleGeography’s GlobalComms termination of voice calls on individual islands in the Caribbean but also Database, Ooredoo Myanmar’s mobile networks. These are: mobile France, where customers can get free monthly ARPU has fallen from network operators Proximus, Mobistar texting and low rates on calls and USD7.46 in Q4 2014 to USD6.48 in Q2 and BASE; MVNOs , Lycamobile data under its “Open World” program. 2015, whilst for Telenor the rate has and Join Experience; and VoIP operator Meanwhile, in other international

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SAMENA TRENDS _ SEPT 2015 SAMENA TRENDS _ SEPT 2015 coverage expansion news, Verizon service in Cuba is significantly pricier worldwide, including all of Europe Wireless said it became the first than Sprint and T-Mobile’s similar and South America. The Simple Global U.S.-based wireless company to offerings for service in Caribbean program was first launched in the offer roaming in Cuba. The Sprint nations. Verizon said customers using fall of 2013 and had 115 countries at expansion came just after T-Mobile US a global “World Device” who are launch. T-Mobile said the program (NYSE:TMUS) added 20 new countries traveling to Cuba can opt-in to add the now covers more than 90 percent of and destinations to its “Simple Global” “Pay-As-You-Go International Travel” the trips Americans take abroad each global roaming program, which lets option. While in Cuba, voice calls are year. The carrier added that the most T-Mobile “Simple Choice” postpaid $2.99 per minute, data is $2.05 per MB notable addition that it is bringing customers access unlimited 2G data and standard international messaging into the fold today is the Bahamas, and calling at 20 cents per minute. rates apply. where more than 2 million Americans The program now covers a total of 145 travel each year. Since 2013, T-Mobile countries and destinations worldwide, said its customers have been using including all of Europe and South Nkom plans tougher 140 times more data abroad, global America. In August Sprint unveiled texting has increased more than 10- its new “Open World” international price regulation for fold and customers are making more roaming service that makes unlimited Telenor Norway in calling and texting to Canada, Mexico and other Latin American countries mobile sector free for its U.S.-based customers. The Norway’s telecoms regulator, the offering also gives Sprint customers National Communications Authority free calls and texts and 1 GB of high- (Nkom), has said it will continue to speed data when they are traveling in impose specific obligations on mobile those countries. Countries included market leader Telenor Norway. In a in the offering are Mexico, Canada, press release the watchdog noted Dominican Republic, Argentina, Brazil, that the operator still holds significant Chile, Colombia, Costa Rica, El Salvador, market power (SMP) with regards to Guatemala, Honduras, Nicaragua, the wholesale sector for Market 15 Panama and Paraguay. Sprint also said (access and call origination on mobile that it will offer free texting, calling networks). Telenor Norway accounts for 20 cents per minute and $30 per for more than half of the nation’s GB pricing to customers who travel mobile subscribers, meaning that the in more than 40 other countries. That operator will continue to be required list of countries now includes France, to allow access to its infrastructure Anguilla, Antigua and Barbuda, Aruba, under specific terms. Moreover, the than six times as many voice calls. Bahamas, Barbados, Bermuda, Bonaire, Nkom has also signaled its intent Under Simple Global, customers’ data British Virgin Islands, Cayman Islands, to impose ‘tougher regulation of rates are capped at EDGE speeds of Curacao, Dominica, Fiji, Gibraltar, price terms for accesses, given what around 128 Kbps, though T-Mobile Grenada, Guadeloupe, Guyana, Haiti, it termed ‘persistent competition offers various levels of speed boosts Jamaica, Martinique, Montserrat, problems’. Arguing that operators to customers who want faster speeds. Nauru, Papua New Guinea, Seychelles, relying on national roaming or MVNO The company prices those speed St. Barthelemy, Saint Kitts and Nevis, access should be able to compete bumps at $15 for 100 MB per day; $25 Saint Lucia, St. Vincent and The effectively in the retail market, the for 200 MB per week or $50 for 500 MB Grenadines, Suriname, Tonga, Trinidad Nkom said it was necessary to impose for two weeks. Sprint sought to answer and Tobago, Turks and Caicos Islands, an explicit requirement that the price T-Mobile and in August unveiled and Vanuatu. Other destinations where terms for accessing the market leader’s its new “Open World” international Sprint customers can get the offer of network should not mean alternative roaming service that makes unlimited free texting, calling for 20 cents per operators face a margin squeeze. calling and texting to Canada, Mexico minute and $30 per GB pricing include Having published its proposals, the and other Latin American countries Australia, Denmark, Germany, Ireland, regulator is now seeking responses free for its U.S.-based customers. The Israel, Italy, Japan, New Zealand, the on the matter, setting a deadline of 19 offering also gives Sprint customers Palestinian territories, Russia, South October for submissions. free calls and texts and 1 GB of high- Korea, Spain, Sweden and the United speed data when they are traveling in Kingdom. “When our customers those countries. Countries included are vacationing in the Caribbean or T-Mobile expands in the offering are Mexico, Canada, traveling abroad, we know they want Dominican Republic, Argentina, Brazil, to be able to communicate with friends ‘Simple Global’ roaming Chile, Colombia, Costa Rica, El Salvador, and family free from worry about Guatemala, Honduras, Nicaragua, surprising costs to text, make a call program to all of Europe, Panama and Paraguay. Sprint also said home or send a photo,” Sprint CMO South America that it will offer free texting, calling Kevin Crull said in a statement. “We are for 20 cents per minute and $30 per T-Mobile US added 20 new countries continuing to add more destinations GB pricing to customers who travel in and destinations to its “Simple Global” and enabling our customers to stay more than 40 other countries, including global roaming program, which lets connected virtually wherever they go.” Australia, Denmark, Germany, Ireland, T-Mobile “Simple Choice” postpaid Verizon’s offer of roaming for Cuba Israel, Italy, Japan, New Zealand, the customers access unlimited 2G data comes about a month after the United Palestinian territories, Russia, South and calling at 20 cents per minute. States and Cuba formally restored Korea, Spain, Sweden and the United The program now covers a total diplomatic ties. However, Verizon’s Kingdom. T-Mobile argues that its of 145 countries and destinations

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offering will save customers money has been fueled by key partnerships. global 4G networks covered by Telenor compared to similar international “Our relationship with Metaswitch direct peering agreements. The service offerings from Sprint, as well Networks has been fantastic and critical Ooredoo Oman agreement will using as Verizon Wireless and AT&T Mobility. to our success. Metaswitch allows us the Norway-headquartered operator’s AT&T’s Cricket Wireless prepaid brand to seamlessly deploy, manage and Diameter Routing Agent (DRA) to said that as of yesterday it is offering troubleshoot our wholesale customers” provide 4G voice and data roaming unlimited voice and SMS messaging adds Napoletano. Chris Carabello, services, the operator said. Telenor’s to and from Mexico. AT&T has Senior Director of Product Marketing international wholesale operating emphasized that it is creating a single for Metaswitch Networks, the world’s business Global Wholesale will fulfil network between its operations in the leading network software provider the roaming exchange agreement. U.S. and Mexico, following its $4.4 offers “We are pleased that network Bjørn Iversen, CMO of Global billion worth of purchases of Mexican operators like Re-Invent Telecom are Wholesale, said the agreement offers wireless operators Iusacell and Nextel leveraging Metaswitch to effectively benefits to the subscribers of Telenor’s Mexico earlier this year. AT&T aims to meet the growing demand for direct peering partners in addition deploy LTE to 40 million POPs in Mexico innovative Business Communications to Ooredoo Oman’s customers, by year-end, but has highlighted that services.” including improved call quality. Iversen its calling and texting between the two explained that the roaming exchange countries is seamless. deal also offers direct 4G access to 13 Sri Lankan Operator of Telenor’s own global 4G networks. Ooredoo Oman chief legal, regulatory ReInvent Telecom Dialog Connects to and wholesale officer, Jim Maxell, said Syniverse IPX Network the operator has a “long-standing and Expands Wholesale important relationship with Telenor, Business VoIP Solutions for LTE Roaming and we are very satisfied with their Syniverse has been selected by Sri ability to understand our needs and Nationwide Lankan operator Dialog Axiata to complex challenges in deploying Re-Invent Telecom, a leader in provide carrier-grade connection to LTE roaming.” Maxell added that wholesale cloud based Voice/ its IPX Network Solution, enabling the Telenor “has been a pioneer with LTE VOIP services, and a subsidiary of operator to expand its LTE roaming Roaming, both globally and in many Scottsdale-based ILEC Saddleback service. Besides the standard data local markets,” and said that Telenor’s Communications, has announced a mobile roaming and clearing, the direct “extensive global 4G coverage is of connection will enable the operator to significant importance” by enabling deploy advanced IP-based services “quality roaming in both our networks.” in the future, including Voice-over- The Ooredoo Oman deal extends LTE(VoLTE) and Video-over-LTE(ViLTE), Telenor Global Wholesale’s reach into as well as Rich Communication the Middle East market and follows a Services. Dialog become the first similar deal with Telekom Austria that South East Asian country to launch was signed in May and opened the mobile 4G LTE service in 2013 and has door to markets in Central and Eastern recently started conducting a pilot on Europe, the Nordic region and Asia. the LTE-Advanced service. Syniverse Telenor and Ooredoo are also credited said that its IPX Network currently with boosting mobile penetration serves more than 1,000 LTE roaming in Myanmar, where the pair operate routes and includes more than 100 competing 3G mobile networks. In LTE direct connections that make May, Telenor Myanmar CEO Petter it possible for Syniverse to deploy Borre Furberg said the entry of both LTE and VoLTE around the globe. In companies had contributed to an addition, Syniverse has recently made increase in penetration from around possible the world’s first transoceanic 10 per cent prior to their launch, to successful nationwide expansion of VoLTE roaming call, supporting the around 42 per cent by the end of the its wholesale VoIP Solutions. Building world’s first VoLTE roaming service. first quarter of 2015. on this momentum, the company will exhibit at the premier cloud business event, Cloud Partners 2015. “Re- Telenor agrees LTE Invent is very excited to participate in the Cloud Partners show in Boston. Roaming Exchange deal We have had great success with new with Ooredoo Oman partners on the east coast and we look forward to reconnecting with them Telenor signed an LTE Roaming as well as meet potential new ones” Exchange agreement with Ooredoo says Ray Napoletano, Senior Manager, Oman that it said will deliver industry- Business Development for Re-Invent leading 4G roaming and customer Telecom. Re-Invent has invested experience to the Middle East-based heavily in people and infrastructure operator’s subscribers. The roaming since forming in 2009 and are poised deal provides Ooredoo Oman’s 2 for continued growth, much of which million customers with access to 270

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The role of telecom operators in building digital ecosystems

Although most of the developed world • Digital content ecosystem have today is enjoying the digitization four distinct stages of evolution: revolution, its potential is only partially The first stage involves building a realized in the Middle East and North content foundation. The second Africa (MENA), where Internet penetration stage is when the number of users is 39% (compared with 85% in North reaches critical mass as the “network America). In Sub-Saharan Africa the effect” is leveraged; content and penetration rate is 16%. Bringing these services become more valuable as substantial numbers of unconnected more people use them. The third online represents a significant revenue stage is when there are enough opportunity for telecom operators, worth users so that content developers can an additional $400 billion globally from monetize their offerings. The fourth 2015 to 2020. stage is when the user base continues to expand as content becomes more One of the main barriers to bringing diversified and sustainable. people online, beyond the well-known issues surrounding connectivity and • Monetization models play a key affordability, is the availability of local, role in ecosystem development: relevant content. In the broader Middle Most emerging markets have a East and Africa region, only 25% of the structural economic challenge in population has enough relevant content monetizing and sustaining digital to consider going online. ecosystems. Emerging markets have found it very difficult to develop A key question across emerging markets deep digital content ecosystems, is the divergence in the maturity of local unlike developed markets where content ecosystems, irrespective of the content developers were able to level of development of the Internet rely on either subscriber propensity Milind Singh Principal user base. In our analysis of the stages to pay (e.g. e-commerce) or rely Strategy& (formerly Booz & of evolution of digital ecosystems in 75 on advertising dollars (e.g. social Company) markets, three key themes emerged: networking) to develop content

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platforms. Beyond these two While these challenges are significant, sources of monetization, risk- a concerted effort by stakeholders, taking by patient investors and telecom operators in particular, led to creation of large digital can catalyze the development platforms, which have ultimately of digital ecosystems. Operators been monetized as a part of a can encourage more people to shareholder exit (e.g. messaging discover the Internet and to adopt platforms). By contrast, in digital services by promoting new emerging markets the limited content developers, either through propensity of subscribers to pay investments or by promoting local for content, still small advertising content providers in their marketing markets, and a lack of patient campaigns. They can also better investors are creating challenges articulate the benefits of connectivity to both start-up and scale-up and content together by using the companies. content-bundling approaches that have succeeded in some markets. This • Non-global network content is important because many of those categories are the weakest in who are unconnected or barely use emerging markets: Content does the Internet are discouraged from not develop uniformly across the doing so by the cost involved with six most content categories in first buying connectivity and then digital ecosystems—business deciding if there is relevant content to services, communications, consumer. Finally, operators can fill the

entertainment, information, role of the patient investor in some of sharing platforms, and utilities these content categories. (including government services). Certain categories, such as sharing platforms and communication platforms, which can be of global scale, are well developed and built across most emerging markets and languages. However, the utility and information content categories, for example education, health and local news, tend to be less well developed. Indeed, the gap in content availability between developed and emerging markets is at its widest in the utility category.

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Technology NEWS

Ericsson Launches 5G for strengthen the competitive position of European industry,” he says. The program’s Europe Program academic and research partners include major technical universities such as Ericsson is expanding its cross industry 5G Scuola Superiore Sant’Anna, Pisa, Italy, research and development (R&D) program Technische Universität Dresden, Germany, to a range of European markets. The 5G Universidad Carlos III of Madrid, Spain, for Europe program will bring together IMDEA Networks Institute, Madrid, Spain, major industrial players, the public sector and King’s College, London, United and leading universities across Europe. Kingdom. Among the industry partners The program will initiate cross-industry are leading enterprises such as wiseSense, research collaborations focused on the Weiss Robotics and MyOmega System integration of ICT in industry processes, Technology in Germany and Zucchetti products and services, and which leverage Centro Sistemi in Italy. In March 2015, Technology Europe’s position as the region with the Ericsson launched the 5G for Sweden world’s second largest R&D spend. The R&D program, together with partners in Updates program will also create innovation Swedish industry and academia. 5G for projects that enable smaller companies to Europe broadens this initiative to seven cooperate with a wide range of industry countries and 10 institutions, with further players, to interact with academia, and to partners to be included over time. secure early and affordable technology access. 5G for Europe will also deliver industry pilots of possible 5G solutions in areas including transport and automotive, The EU and China signed the Internet of Things, utilities, public a key partnership on safety, public infrastructure and retail. Ulf Ewaldsson, Senior Vice President and 5G, our tomorrow’s Chief Technology Officer, Ericsson, says: “5G is the next step in the evolution of communication networks mobile communication and will be a Both parties are committed to reciprocity fundamental enabler of the Networked and openness in terms of access to 5G Society. However, Ericsson needs to work networks research funding, market access together with industries to understand as well as in membership of Chinese and their specific network requirements in EU 5G associations. The EU and China order to realize the full benefits of 5G have signed a milestone agreement in technologies. “By expanding our 5G the global race to develop 5G networks, program to include major partners across during today’s EU-China High Level Europe, we will gain valuable insights Economic and Trade Dialogue in Beijing. that will enable industries to digitalize In the future, everybody and everything effectively, to create new value and to will use 5G, the next generation of

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communication networks. By 2020 Programme to support research and BlackBerry announces there will be more than 30 times as innovation in 5G. Through its Digital much mobile Internet traffic as there Single Market Strategy announced in plans for Android was in 2010. 5G won’t just be faster, May, the Commission is committed to it will also be the backbone of our improving spectrum coordination in digital future and the foundation of a the EU, particularly in view of future BlackBerry will be launching Priv, a trillion euro EU market in the Internet 5G needs. flagship slider device which will run of Things, i.e. new functionalities and on Android, later in the calendar applications ranging from connected Background year. The device will combine cars to smart homes. The joint In December 2013, the European BlackBerry security and Android for declaration was signed by Günther Commission launched a Public-Private Work on the BES12 platform. More Oettinger, European Commissioner Partnership on 5G (press release - in charge of the Digital Economy Factsheet). The EU is investing €700 details will be forthcoming closer and Society, and Miao Wei, Chinese million by 2020 in this partnership to launch. BlackBerry noted that Minister of Industry and Information through the Horizon 2020 research and while Priv will provide a choice of Technology. Commissioner Günther innovation programme. EU industry is OS to new and existing customers, Oettinger said: “5G will be the set to match this investment by up to the company remains committed to backbone of our digital economies 5 times, to more than €3 billion euros. the BlackBerry 10 OS, which it will and societies worldwide. This is why China’s IMT-2020 (5G) promotion continue to develop and enhance. we strongly support and seek a global group was jointly established by the Version 10.3.3 will be introduced consensus and cooperation on 5G. Ministry of Industry and Information in March. The company made the With today’s signature with China, the Technology (MIIT), the National announcement after releasing its fiscal EU has now teamed up with the most Development and Reform Commission second quarter results, and saying it important Asian partners in a global (NDRC) and the Ministry of Science completed its acquisition of AtHoc race to make 5G a reality by 2020. It’s and Technology (MOST) in February at the end of September and signed a crucial step in making 5G a success.” 2013 to promote 5G technology research in China and to facilitate a new agreement to acquire Good Under this Declaration, the EU and Technology for USD 425 million in China will strengthen cooperation to: international communication and cooperation. The members include the cash. The company said the deal with • reach a global understanding, main operators, vendors, universities Good will strengthen its leadership by the end of 2015, on the and research institutes in China. The in Enterprise Mobility Management concept, basic functionalities, key industrial agreement between the 5G (EMM) value added services. The technologies and time plan for 5G PPP Association of Europe and the transaction is expected to close IMT-2020 (5G) Promotion Association • explore possibilities in towards the end of the company’s ready to be signed after the signing of 2016 fiscal third quarter, subject to cooperating and implementing the Joint Declaration is as well crucial joint research actions in the area customary closing conditions and for the success of the 5G cooperation. regulatory approvals. In the second of 5G and to facilitate bilateral At the 2015 Mobile World Congress quarter to 29 August, BlackBerry raised participation of enterprises in 5G (MWC), the European Commission research projects in China and the and Europe’s tech industry presented its net profit figure to USD 51 million EU the EU’s vision of 5G technologies from a loss the year earlier of 184 • jointly promote global and infrastructure. This ambitious million. Revenues however fell to USD standardisation for 5G, in support strategy gives the EU a strong voice 490 million from 916 million the year of ongoing standardisation work in the next phase of 5G discussions before, with all regions contributing in relevant organisations such as at the global level that should lead to to the decline. Revenues slid to USD the 3rd Generation Partnership international agreements, including 176 million from 297 million in North Project (3GPP) and the on standards. (see also the speech of America, fell to USD 202 million from International Telecommunication Commissioner Oettinger at the event) 368 million in EMEA, went down to Union (ITU) Commissioner Oettinger will host a USD 33 million from 111 million in global workshop on 5G standards and • cooperate in facilitating the Latin America and weakened to USD spectrum with representatives from 79 million from 140 million in Asia identification of the most the US, South Korea, Japan and China Pacific. BlackBerry said it recognized promising radio frequency during the ICT-2015 conference in bands to meet the new spectrum Lisbon on 20 October 2015. Through hardware revenue on over 800,000 requirements for 5G its Digital Single Market Strategy, with an ASP of around USD 240 while non-GAAP software • explore jointly the possibilities the Commission is committed to for cooperative research on the improving spectrum coordination in and services revenue advanced 19 services and applications for the EU, particularly in view of future percent from the year before to USD 5G, especially in the area of the 5G needs. The Commission has just 74 million, driven by a 33 percent Internet of Things (IoT). launched a review of the EU’s telecoms growth in software licensing revenue. framework and present legislative Adjusted EBITDA went to USD 68 Both parties are committed to proposals for an ambitious overhaul million. Total cash, cash equivalents reciprocity and openness in terms of EU telecoms rules in 2016. This and short and long term investments of access to 5G networks research includes more effective spectrum amounted to USD 3.35 billion, up by funding, market access as well as in coordination, and common EU-wide USD 37 million sequentially. CEO John membership of Chinese and EU 5G criteria for spectrum assignment at associations. This joint declaration national level. Chen expressed his confidence in the builds on similar agreements with company’s strategy and continued South Korea and Japan signed with progress and said the company the Commission in recent months. would continue to invest strategically, The European Commission is investing organically through new products and €700 million through the Horizon 2020

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SAMENA TRENDS _ SEPT 2015 SAMENA TRENDS _ SEPT 2015 services based on the BES platform, functionality,” said Djuphammar. of information from sensors among and through acquisitions like AtHoc In September Ericsson and mobile other uses. The company has also and Good. For its fiscal third quarter, telco Entel Chile demonstrated Latin gained feedback in order to boost BlackBerry expects modest sequential America’s first data transmission over service quality. revenue growth and a positive free combined 2600 MHz and 700 MHz cash flow. The company is targeting a spectrum bands in a commercial “sustainable” non-GAAP profitability network. The trial proved that Ericsson launches multi- for its fiscal fourth quarter. over-the-air LTE-Advanced Carrier Aggregation can run at 250Mbps. device WiFi calling “Mobile broadband is opening up a Ericsson has bolstered their existing Ericsson and Alcatel- world of opportunities,” said Nicolas WiFi calling solution with new multi- Brancoli, VP of Ericsson Latin America. device functionality in response to an Lucent to show Ericsson claims forty per cent of the increasing appetite from operators Broadband World Forum world’s mobile traffic now runs over and consumers. The enhanced service how virtualization is Ericsson equipment. will allow customers to switch between their WiFi-enabled mobile devices done whilst retaining a full voice service. The new solution will offer better value Kit vendors Ericsson and Alcatel- Orange to install Low to consumers, whilst opening new Lucent are to use Broadband World Power Wide Area business opportunities to operators. Forum in London’s Excel Centre According to a recent Ericsson to demonstrate the practicalities network for IoT in France ConsumerLab report, 61 percent of of SDN and virtualized functions. Orange is the latest telco to target the respondents claim they now make Ericsson will exemplify, in a series the Internet of Things (IoT) after more frequent and longer voice calls of demonstrations and interactive announcing plans to install a new Low and half say they have replaced some exercises, how the virtualization of Power , running over-the-top app communication end-to-end network infrastructure will on long range technology, across with voice calls utilizing WiFi calling. create the right foundation for Wi-Fi metropolitan France. Orange is looking Many operators around the globe Calling. Meanwhile, at the same show, to bring in 600 million Euros in revenue offer different levels of WiFi calling Alcatel-Lucent will set out to demystify by 2018 from the Internet of Things services – including Vodafone who concepts like Universal TWDM (time (IoT) in line with its Essentials 2020 launched their service this week – and wavelength division ), strategy. The development will foster but not all will allow for the use of G.fast, Vplus, Gigabit home systems connectivity among sensors in smart multiple devices regardless of whether and end-to-end services. Their joint cities and will be initiated in the first the customer is on WiFi or cellular. As mission is to bring the abstracts quarter of 2016 progressively across such, multi-device WiFi calling remains behind NFV to life for an audience of France. Orange Chief Executive Officer, a ripe opportunity for an operator to both technical and commercial buyers. Stéphane Richard, said, “By 2020, we differentiate. Smartphone and tablet As virtualized networks become a believe that there will be more than maker, Apple, debuted native WiFi commercial reality, it will become 25 billion objects connected in the calling across multiple devices as increasingly important to popularise world. Beyond connectivity, Orange part of their iOS 8 operating system the concept, according to Ben Agnew, is also involved in the distribution of – although it’s listed as “T-Mobile the director of the Broadband World connected objects, in the aggregation only” in the US. Customers will be Forum: “The Proof of Concept zone and data processing stemming from hoping that more operators adopt will be bigger than ever before,” said these objects as well as proposing multi-device WiFi calling solutions Agnew. Though the virtualization of value-added services in the field of like Ericsson’s to benefit from the telecoms is inevitable, work needs to health and well-being, the connected increased seamlessness and coverage be done to make it easier to respond home and smart cities.” In order it provides whilst in areas of poor to the demands of interoperability, the to cater to meet the requirements cellular signal. Anders Olin, Head technical challenges operators face of varying objects and technology, of Product Area Network Functions and the dynamic needs of traffic and Orange is planning to invest in a line at Ericsson, says: “While natively- services, according to Agnew. As cloud of solutions to build its IoT capability. integrated WiFi calling in smartphones computing and telecoms merge, the Connection requirements for objects has been commercially available for event will set out to show the more hinge upon speeds, criticality some time, both consumers and technically minded the practicalities and frequency of the information operators can benefit from extending of getting the most out of NFV, while communicated. The company will also this functionality to multiple devices. commercial staff will benefit from a provide its mass market and business We are excited to launch WiFi calling roadmap for mainstream adoption, customers with services and platforms for multi-device, which is a clear according to Håkan Djuphammar, that are compatible and interoperable example of how Ericsson’s technology head of technology at Ericsson’s with these varying networks. Orange leadership is helping to create Business Unit for Cloud & IP. The has been trialing a network based differentiated user experiences.” goal is to accelerate the use of real, on LoRa technology in Grenoble, in Ericsson’s latest offering comprises deployable virtualization systems, he collaboration with over 30 businesses. of; Product support in Evolved Packet argues. “The Ericsson demo shows The experimentation was utilized to Core (EPC), IP Multimedia Subsystem how NFV opens up new deployment test the main use of the networks that (IMS), User Data Management (UDM) options, since NFV adds scalability include frequent location of objects, and OSS/BSS, as well as integration and geographical distribution of controlling objects and collection services. The WiFi calling solution also

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caters for call management scenarios You could do a strand mount, but then deploy in a cost-effective manner. by the customer including support for you need to verify the strength of simultaneous calls on various devices, the strand. Strand is straight forward Fiber Accessibility and transfer of existing calls to another because it’s just a piece of steel cable. Most times the backhaul will have device. Once the tinsel strength is verified, a fiber connection somewhere. You look at the connection to the pole and might have one at each location, make sure it’s secure enough to hold or you might choose to connect Issues faced with the additional weight that is being wirelessly back to a common point added. Don’t forget about permitting which will need fiber. In this case, you Small Cell & CRAN and zoning. This is going to determine will need to make sure that a fiber deployments – and how how and where you mount; with the connection is available where you’re municipalities blessing. Remember installing. If you need dark fiber, then to overcome them they have the power to fine you or you need to be careful where you Many people believe you can just make you rip it out. If you think you can locate the site. Some carriers prefer go and install a small cell or a RRH just slap-up the equipment on a pole dark fiber for the backhaul and many (Remote Radio Head) on a pole and without getting the proper permits, need dark fiber fronthaul. Running you’re done. Well, there is a lot more guess again. You need to be sure fiber can be expensive if you have to to it. The real deployment problems zoning will allow your unit and antenna trench, pull permits, hire traffic control, begin when you are selecting your to be there. Follow the permitting and perform construction. The key is sites. Here are some of the most rules for installation! Know the local to be cost-effective and mount close common issues: ordinances prior to installation, as it to a fiber ring or send wireless back to will save you a lot of headaches. This a building where you should have easy Selecting Mounting Assets is why site acquisition teams earn access to fiber. If you are new to deployment then their money. So now you’re ready maybe you believe you can mount the to mount the radio and the antenna, Power smaller units anywhere. However, you but wait, there’s more! You need to Many people think that if a light pole need to go through several hurdles consider all of the following prior to has a light on it, then it would have before you deploy. First, you need mounting anything… power available. Well, when I deployed to find out who owns or manages street WiFi I learned that nothing Backhaul Solutions the asset. This is where you might could be farther from the truth. A lot work with a tower company that has This is another issue when selecting a of pole lights run on a higher voltage small cell assets because they have site. Even though you have the poles like 220 or 300VAC+ which belongs to places for you to go. All you need to or buildings selected, you need to be the owner of the lights. If they don’t do is make sure the location fits the sure there is a backhaul solution at the want to power your small cell or RRH, RF design. Ownership is a real issue site. If you decide to go wireless, then then you need to get your own power. because there are so many assets; make sure you have a good link to the You need to know what is available, identifying the pole owner could be nearest fiber location. This is critical but you will probably end up running problematic. In a city, the pole could for you to make sure you have the your own power as even utility poles be owned by the city or a utility, or it backhaul connection you need. This don’t have power accessible. If they could be managed by someone else. could also apply to fronthaul if you are have power on the pole, it doesn’t You then need to make sure that the deploying CRAN. If you are deploying mean that you can tap it and bring structure will hold your radio, antenna, CRAN, the BBU (baseband unit) will power to your radio. The first thing and mounting gear. You might also need to connect to the backhaul and to look at is how to get power there need to install a cabinet at the base the fronthaul as the CRNA RRH will as it could be from a greater distance and the antenna near the top. The need to connect to the fronthaul. What than anticipated, and it might not be owner could also require you to have is the solution? Well you could use a cheap. Even in a building there could a structural analysis done on the pole. combination of wireless and fiber, and be an issue running power where it is You don’t want the pole blowing over maybe even copper. This should all be needed. There might be core drilling in a storm, right? Your mounting asset planned out before the installation, involved, there could be additional could be the pole, but let’s say you but a survey of the site could reveal an permitting needed, and it could be want to go on a building. On some issue that you were not aware of when against the landlord’s policy to have occasions the building roof might looking at the site design. I believe power run to your location. Once not be the best solution, so what can that surveys are invaluable because again, this issue should be worked out you do? You could mount on the side they identify all the issues that didn’t prior to installation. of the building, or even in an office show up on paper. You may think facing out of a window (assuming it’s your wireless link has line-of-site to a Cost to Deploy not lead-lined.) Get creative when building, or that fiber is on your side of There was a time when the you have to, otherwise try to keep the street, just to find out that neither equipment was the limiting factor it simple. When mounting in an odd is true. Don’t be afraid to get creative when calculating costs. Now it is the location in the building you might on backhaul and fronthaul designs. It services, backhaul, and lease pricing. have to work a lease with someone might be a good idea to use a mix of Hardware got cheaper, but services else; like the tenant of that office. I fiber and wireless to connect. Look at add up. The costs might not be known know that when mounting low and the system on a map and see if there until the research is done; which is on the side of a building it’s possible is a method of connecting back to a something that will take planning and you will have to get permission from macro site, then all of the rest will be experience. When the early adopters another management company, and taken care of. Offer solutions to your of small cells and CRAN started their not the group which manages the roof. customers that will allow them to deployments, this is something found

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SAMENA TRENDS _ SEPT 2015 SAMENA TRENDS _ SEPT 2015 at their expense. Experience is the best the Altair FourGee-1160 Cat-1 chipset. SK Telecom conducted lab testing of teacher, and the others just sat back to Altair will showcase the provision of the key functionalities of LTE device see what they did. In the US, Verizon an LTE connection with a battery life Category 0 and Category M (Machine Wireless deployed and ran trials to that lasts for a decade by putting Type Communication) in Ericsson radio see where they could become more on display LTE’s Release 12 PSM labs in Kista, Sweden at the early of efficient. Verizon had to weigh out functionality at the CTIA conference in September. Field trials are planned in the time-to-market versus the cost Las Vegas, Nevada, US. The potential SK Telecom’s network in Korea later this effectiveness of backhaul like running of Altair’s PSM-capable chipsets will year. LTE Cat-0 has been standardized wireless versus fiber. Leasing prices be demonstrated at Ericsson’s Super in 3GPP LTE Release 12 and is the first also need to be considered, as some Mobility Week Booth #4322 at the device category specifically targeting leases include power and backhaul conference. As defined by 3GPP reduced complexity and thus reduced whilst others don’t. They worked with Release 12, PSM allows terminals to cost for IoT. LTE Category M is a key site acquisition teams to find a process hibernate for extended periods of theme in LTE Release 13, representing that would allow them to save on time after informing the base station. further cost savings and improving leasing and design work up front. All As a result, devices benefit from lower battery lifetime. Izumi Kawanishi, EVP, of this began to drive the costs down power consumption. PSM is extremely Product Business Group, Sony Mobile, for the other carriers to deploy. Live useful where the relay of small says: “Sony Mobile regards the push and learn, but it’s nice when someone messages to the network by devices is into the realm of IoT and our strategies else foots the bill for learning! This intermittent. Altair co-founder and VP for diving into this market are critically should prepare you for some of the marketing and business development important. There can be little doubt problems you might encounter. Until Eran Eshed, said, “Our collaboration that the market for network-connected you start the deployment, you don’t with Verizon Wireless demonstrates devices - of every shape, size and know all the problems. When you to us that North America’s largest type - will explode at breakneck pace think you have seen it all then you run communication service provider sees going forwards. We believe that the into something new. There is always the value of our LTE Cat-1/0 chipsets trials with Ericsson and SK Telecom are a challenge, so make sure to exercise for IoT applications.” Verizon Wireless important steps towards the IoT world, risk management and proceed with vice president Ro McNally said, realizing solutions that will strengthen caution. What should you do? Plan, “Altair’s low-cost, long battery life LTE user experiences.” Wearable devices plan, and plan even more. I don’t want Cat-1 solution, being demonstrated at and related applications were to stifle the actual deployment, but the Ericsson booth, is a great example selected for the user scenarios being if you have a good plan and remain of the innovation happening in this tested and trialed. The wearable flexible then you should be set. It pays space.” device test use cases are focused to stop and look around when picking on consumer lifestyle and wellness the sites, and it pays to weigh-up your applications enabled through multiple options on the backhaul. Be open and Ericsson, Sony Mobile sensors providing accelerometer, be flexible, then do the installation identification, pulse meter and GPS and enjoy a successful deployment! and SK Telecom Trial IoT functionality. IoT wearables are Wearables over LTE miniaturized, low-cost, low-power IoT devices with specific network The Internet of Things, or IoT, is and device performance criteria. In Altair to collaborate with driving new use cases for wearables, testing, LTE has proven to support including lifestyle and wellness apps, Verizon on LTE-based the ubiquitous and secure uplink and requiring more diverse device support downlink connections that wearable IoT products on mobile networks. With cellular lifestyle and wellness applications LTE chipset provider Altair networks already covering 90 percent require. Arun Bansal, Senior Vice is collaborating of the world’s population, consumers President and Head of Business Unit with Verizon Wireless on the expect their wearables to benefit from Radio, Ericsson, says: “We are working commercialization of LTE-based the same ubiquitous connectivity as with our leading ecosystem partners, Internet of Things (IoT) products, their feature phones and smartphones. including SK Telecom and Sony Mobile, with Altair preparing to roll out To address growing consumer demand to accelerate the adoption of new Cat-1/0 commercial products soon. and the proliferation of such new IoT IoT applications for both consumers applications, Ericsson, Sony Mobile and industry. The test and trials that and SK Telecom are testing and trialing we have undertaken, leveraging new new device and network innovations Sony Mobile devices and the mobile to support secure and ubiquitous LTE network technology in our radio labs network connectivity for new lower and in SK Telecom’s live commercial cost, lower power IoT devices. Park Jin- network, focus on lifestyle and hyo, Senior Vice President and Head wellness applications that really benefit of Network R&D Center, SK Telecom, from the secure, ubiquitous mobile says: “We are working with Ericsson connectivity that cellular technologies and Sony Mobile to trial both mobile support.” Ericsson recently announced network technologies and new IoT new Networks Software 16B features devices that improve our customer’s focused on accelerating IoT adoption lives, at home and work. These latest by leveraging the extensive footprint, Smart meters, car telematics, security tests and trials reflect our commitment high reliability, security and broad systems and smart home devices to establish a stronger IoT ecosystem eco-system support of LTE and GSM among other gadgets can make use of globally.” Ericsson, Sony Mobile and networks to provide a platform for

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IoT growth. Features include support with NB-LTE,” said Stefan Wolff, vice in Italy, the Mobile Robotics 5G Use for lower cost IoT devices, extending president, Platform Engineering Case has already identified several device battery life to more than 10 Group and general manager of the ways in which cloud-connected years and improving coverage for both Multi-Comms Business Unit, Intel. robots will improve performance indoor and remote IoT applications “Cellular networks already cover 90 in industry. “Mobile technologies percent of the world’s population so will enable the robots to exchange it makes sense to leverage this global considerable amounts of information Intel, Ericsson, Nokia footprint to support and drive IoT with the cloud at low latency, which adoption through the standardization will allow the robot system to do its Work on Next-gen of Narrow-Band LTE. Working with job at the desired performance level,” Wireless Connectivity for Intel and Nokia, Ericsson is driving the says Roberto Sabella, Research and ecosystem to accelerate IoT growth Innovation Manager. “The speed and IoT and ensuring a global foundation for a extra capacity provided by 5G radio Intel has announced its support for vast range of new IoT applications for systems are essential to enable cloud Narrow Band Long Term Evolution (NB consumers, industry and government,” robotics.” In this 5G use case, the LTE) technology as the ideal wireless said Thomas Norén, vice president intelligence is located in the cloud and connectivity solution for the growing and Head of Product Management, the robots can be operated remotely Internet of Things (IoT) market Business Unit Radio, Ericsson. “We using a laptop or a mobile device. The segment. NB-LTE is an optimized believe in building an ecosystem intelligence in the cloud processes variant of the widely deployed 4G around NB-LTE to speed up the take- the requests, and controls the proper LTE technology, and is well-suited up of the Internet of Things. This robots to accomplish the services. The for the IoT market segment because development will bring consumers robots act in real time and are subject benefits, such as enhanced and to dynamic changes. “In terms of improved connectivity of devices and manufacturing, mobile robots could at lower cost. This is another extension be used to optimize logistics, shuttling of Nokia’s aim to improve people’s materials between workcells and to or lives through a programmable world from warehouses,” Sabella explains. where billions of people, things, “The robots can move in any flexible sensors and devices are connected,” sequence of places to take materials said Stephan Litjens, vice president, to the right place at the right time. The Portfolio Strategy & Analytics, Nokia healthcare sector could enjoy similar Networks. flexibility, with the robots shuttling specimens, medicines and other medical materials between wards and How 5G Mobile labs, pharmacies and warehouses. By offloading repetitive low-level tasks Cloud Robotics Will to mobile robots, hospital staff can Revolutionize Industry devote more of their time to patient care. In agriculture, robotic mobility Next generation mobile networks will allows for shuttling operations have a massive impact on industry between fields, stalls and warehouses. and society, and mobile cloud robotics of its low implementation cost, ease Robots can be used in the fields for will be a game changer in how we of use and power efficiency. Intel operations like monitoring, spraying, manage manufacturing and industrial plans to work closely with Ericsson pruning and harvesting, increasing tasks. The rollout of 5G mobile and Nokia to develop and bring to productivity and reducing costs. networks may still be some way off, market the products needed for the “The mobile robots will include only but Ericsson researchers are already commercialization of NB-LTE timed low-level control functions, sensors testing scenarios such as mobile cloud with market demand. Intel intends to and actuators, with the robot and robotics, where the technology has support commercial roll-out of the the network being linked via 5G the potential to revolutionize both technology with a roadmap for NB- connections,” Sabella says. “The robot industry and society. As 5G networks LTE chipsets and product upgrades can also be equipped with a video are rolled out, traditional robots beginning in 2016 that will enable camera, sending streaming video programmed to carry out specific slim form factors. The products will to the remote control, providing functions will be replaced by new add to Intel’s growing LTE portfolio. the control system with additional models connected to the cloud. These Nokia and Ericsson will provide the information that may be useful in the new robots will have access to almost required network upgrades to support decision-making process.” The mobile unlimited computing power, making an extension of existing LTE networks cloud robotics use cases described them more flexible, more usable with NB-LTE optimized for low power are just a few of the many exciting and more profitable to own and Machine-to-Machine communication. 5G opportunities being investigated operate. Cloud-connected robots will “We are excited to collaborate by Ericsson and its research and operate on smart systems, reducing with two leading network vendors development partners. “As we move the need for hardware and requiring Ericsson and Nokia on the next wave deeper into the Networked Society, less power to operate. Developed of wireless innovation to connect the where everything that can benefit from by Ericsson R&D in cooperation growing IoT market segment, and being connected will be connected, with the Biorobotics Institute (part to further grow the momentum for Ericsson will continue to be at the of Sant’Anna School of Advanced Intel’s LTE portfolio and roadmap forefront of developing, standardizing Studies) and Zucchetti Centro Sistemi

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SAMENA TRENDS _ SEPT 2015 SAMENA TRENDS _ SEPT 2015 and testing 5G technology,” Sabella that require the app coverage, voice Anixter and working with leading says. services, and full mobility provided by real estate developers and property cellular. Now, as we move toward 5G, managers, including Skanska, helping both cellular and Wi-Fi will need to work to create new business opportunities. Ericsson Software together to offer differentiated and Unlocks Indoor seamless service.” Increases in video and media uploads by businesses and Ericsson and Altair Performance for the consumers via apps like Instagram and Mobile Era Facebook call for better uplink speeds. Demonstrate First Cat-1 Ericsson Networks Software 16A Deep-Sleep Power save Over the last few years a major shift in includes two uplink enhancements connectivity has been gaining speed that will enable mobile operators Mode for LTE we have moved away from a lap top to utilize 64 Quadrature Amplitude Altair Semiconductor has carried era and into a fully mobile era, where Modulation (QAM) on uplink to out a demonstration with Ericsson, we connect to our friends, family, and provide 50-percent better peak speeds designed to illustrate LTE’s Release colleagues through multiple devices of 75 Mbps. In addition, it enables 12 Power Save Mode (PSM) attributes growing to 4.3 devices per user by uplink carrier aggregation, which can of Altair’s FourGee 1160 Cat 1 0 2020 and where business transactions double uplink data speeds. Combined, chipset within an Ericsson populated are often made over the cellular these improvements provide peak infrastructure. “PSM is an excellent network. The resulting influx of uplink data rates up to 150 Mbps, optimization tool for a variety of LTE devices, users, and applications trying which is a 200 percent improvement. power-conscious IoT applications,” to access the network can result in poor Further enhancements focused on said Eran Eshed, VP of Marketing and indoor coverage and performance. the indoor space boost download Business Development at Altair. “We’re And with the coming growth in the speeds by 30 percent using 256 QAM trailblazing along with our ecosystem Internet of Things contributing to 26 encoding. Earlier this year, in a live partners to bring these solutions to billion connected devices in 2020, demonstration with Ericsson, Telstra market. The FourGee-1160 is the only providing the right coverage to achieved the world’s first download true Cat-1 chipset in the market today. indoor spaces will become a greater peak rates of 600 Mbps using this new It is now also the first to offer the PSM challenge. To support these changes feature. Devices that support these capability.” PSM, as specified by 3GPP in connectivity, Ericsson (NASDAQ: advances become available this year, Release 12, enables terminals to enter ERIC), long recognized for high- in line with commercial availability of a deep-sleep mode for long periods of performance, innovative hardware, the Ericsson Networks Software 16A. time after notifying the base station. is pushing performance further by Networks Software 16A also includes This reduces significantly the amount adding capacity and functionality LTE-U, to drive higher performance. of power associated with frequent with software-only upgrades. Today, LTE-U enables operators to combine communication requests normally sent it announces its next major software the reliability of licensed spectrum with by the base station. “Long battery life release, Ericsson Networks Software indoor data speed boosts provided is a key enabler for large-scale Internet 16A, which will feature a new suite of by unlicensed spectrum. Arun Bansal, of Things (IoT) adoption, and what’s LTE software upgrades targeting the Senior Vice President and Head of typically being asked for is battery indoor space. Among the hundreds of Business Unit Radio, Ericsson, says: durations of 10 years or more. PSM is new and enhanced software feature “To keep pace with mobile broadband effectively addressing the challenge of options in Network Software 16A, the demand from both consumers and battery life, enabling and optimizing new suite features advances in uplink industry, operators need solutions that a multitude of IoT use cases with and downlink performance - boosting deliver both high performance and relatively infrequent communication network uplink speeds by up to 200 efficiency. Ericsson’s indoor software requirements between end points and percent, downlink speeds by up to 30 innovations deliver both. And, these the network. It is a software upgrade percent and adding LTE Unlicensed new features combined with Ericsson’s only on the existing LTE network,” (LTE-U), the first commercial step in end-to-end solutions, flexible go- said Sebastian Tolstoy, Head of Radio Licensed Assisted Access - as well as to-market and business models and Marketing and Communications at features to support greater energy proactive relationships with key device Ericsson. “This demo between Ericsson efficiency of small cells. To achieve ecosystem partners, ensure that our and Altair will highlight the dramatic these gains, Ericsson has been leading operators not only keep pace, gains PSM enables, in terms of battery working with leading customers on but set the pace.” Ericsson Networks time for applications like alarms, smart lab tests and trial activities. Mike Software 16A builds on energy- gas/water meters and other sensors.” Sapien, Principal Analyst Enterprise efficiency capabilities in previous Services, Ovum, says: “While operators releases and now includes Cell Sleep have understood that they need to mode. This feature enables individual design mobile networks for increasing carriers to automatically switch off By subscription only: amounts of data now, Wi-Fi networks during periods of low traffic demand, The future of traditional have traditionally been the solution ensuring greater energy efficiency of of choice for indoor connectivity small cells. Indoor is the new hub of telecoms services? for enterprise customers. However, mobile activity and operators will need Among the sweeping changes taking Wi-Fi cannot service the need for strategic models and services to cover place within the telecommunications reliable and mobile voice services this huge footprint. To complement industry, the popularity of subscription or text messaging, much less handle operator efforts, Ericsson is expanding based business models seems to the business-critical applications its use of channel partners, such as consistently resonate as one of

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the top concerns for all involved. in the T&Cs. So in the end, you have developed at INRS will help create With new players entering the field to meter access anyway. And herein low cost, high performance; energy on a weekly basis, the business lies both the opportunity and the efficient technologies.­ Integrating model of communication service challenge. The current popularity optical components on chips providers (CSPs) will never be the of subscriptions makes it easy to compatible with electronic circuits same again. Despite a number of experiment on different variations of is a key requirement for future variations introduced over the years, the theme as consumers are receptive telecommunication networks. Dr. telecommunication services have to the idea at large. However, there Morandotti’s team is quickly advancing traditionally been charged on a is a fine line between simplicity and this powerful technology. They have pay per use basis. This has meant granularity - the service providers recently designed a stable ultrafast that operators have put in place have to walk in order to find the right laser based on an integrated microring sophisticated methods of metering model for each service. They are not resonator. They are now working on the traffic – whether that’s minutes all created equal. Just comparing the maximizing the control of photon and of voice, bytes of data or some popular music streaming services light beam properties to increase the combination of these, plus the likes with more communication oriented functions and applications of their of location. This increasing level of offerings reveals material differences innovations. As mentioned, using the sophistication is today applied to in the way the subscriptions are polarization of light in this context to traffic in real-time, enabling very structured. In the former category, the its full potential has not been possible fine control of how services are likes of Spotify, with a 25% conversion so far. Dr. Morandotti has achieved consumed and charged for. The new rate, and Deezer, who are possibly very promising results by using the entrants swarming to the party, on doing even better in converting nonlinear optical effect called four- the other hand, often do not have the users to premium, seem to be able wave mixing. The experimental device financial means or even motivation to to create a decent conversion rate devised by Dr. Morandotti’s team deploy such sophisticated controls. to their premium offering, while the produces photon pairs with orthogonal Hence, as we all know, the vast likes of Skype with a conversion rate polarization while eliminating photons majority of so-called OTT services of less than 10% are struggling to with undesirable frequencies. The rely on a subscription-based model move customers beyond the basic free wide variety of complex quantum for generating revenue. This often service in any significant numbers. states that can be generated by this manifests itself as a two-tiered model Not to mention that many of the device has the potential to offer a with a free, ad-funded, basic service, competing communication services , tremendous advantage for optical and a premium offering with no ads such as WhatsApp and Snapchat, do communication and applications such that in many instances includes extra not have a premium offering at all. This as signal processing and spectroscopy. toppings for the consumers ready to difference is certainly in part to do with spend money on a monthly basis. For the products offered, but nevertheless a long time, it has been easy to dismiss it offers an interesting insight into the Qualcomm Agrees to freemium business models as just a possible future of telecommunication quick method of bringing together a services. And while consumer services Sell UK L-Band Spectrum number of customers to companies are where the action is today, they to Vodafone and Three that have been designed as a quick may well prove to be merely the tip of Qualcomm is selling the entirety of flip. But as the model matures and the iceberg as far as the possibilities its UK based L Band radio spectrum companies start to get to grips with of subscriptions are concerned. It is in (1452-1492 MHz) in two separate what really drives their conversion the much hyped area of the Internet transactions. Under a transaction rates, subscription based business of Things (IoT) where the real action is between Qualcomm and Vodafone models are beginning to look viable going to be. UK, Vodafone agreed to purchase for even the traditional stronghold of 20 MHz of the spectrum. Under metered access: telecommunication a separate transaction between services. The consumer attraction is An Even More Versatile Qualcomm and Hutchinson 3G UK easy to understand. Simplicity and Limited, Three has agreed to purchase transparency make the monthly Optical Chip 20 MHz of the spectrum. Harmonized subscription model a crowd favorite. Telecommunication networks will soon and mandated for mobile broadband Certainly over the historically difficult reach the physical limits of current by the European Union in May 2015, to decipher metered plans of CSPs. technology and in order to overcome L-Band spectrum can be used for And as more and more companies the current bottleneck, they will have Supplemental Downlink (SDL), helping enter the game with variations of to exploit the quantum properties Mobile Network Operators to meet the subscription model, its march to of light. Roberto Morandotti and glory seems unstoppable. But can it his INRS team are paving the way really be so simple? If you read the to this technological revolution by fine print, you will find that in addition removing the technical barriers of to the sometimes rather glaring quantum photonics through the use compromises on privacy, subscription of their optical chips. Recently they contracts often contain a number of directly generated cross polarized other limitations as well. Especially (orthogonal) photon pairs on a chip, when the service involves utilising a a first in quantum optics. Polarization limited resource such as storage space will now be among the controllable or bandwidth, where you are likely parameters for harnessing light in a to find the usual fair use conditions host of applications. The new device

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the global demand for increased An application of this technology losses associated with magnetic field mobile data traffic. SDL can help meet would be a wireless sensor network human body communication are the demand for more downlink centric for full-body health monitoring. “In upwards of 10 million times lower services, such as video on-demand, the future, people are going to be than those associated with Bluetooth to be delivered seamlessly to mobile wearing more electronics, such as radios. “This technique, to our devices over a cellular data connection, smart watches, fitness trackers and knowledge, achieves the lowest path even as data traffic levels continue to health monitors. All of these devices losses out of any wireless human body increase. It also delivers increases in will need to communicate information communication system that’s been downlink user experience through with each other. Currently, these demonstrated so far. This technique aggregation with licensed Frequency- devices transmit information using will allow us to build much lower Division Duplexing (FDD) spectrum. Bluetooth radios, which use a lot of power wearable devices,” said Mercier. Both sales are subject to regulatory power to communicate. We’re trying Lower power consumption also leads approval and other customary closing to find new ways to communicate to longer battery life. “A problem with conditions. Both Qualcomm and information around the human body wearable devices like smart watches is Vodafone and H3G will shortly submit that use much less power,” said Patrick that they have short operating times respective applications to transfer Mercier, a professor in the Department because they are limited to using the spectrum for UK communications of Electrical and Computer Engineering small batteries. With this magnetic regulator Ofcom approval. Details of at UC San Diego who led the study. field human body communication the terms of the sales are not disclosed. Mercier also serves as the co-director system, we hope to significantly of the UC San Diego Center­ for reduce power consumption as well Wearable Sensors. as how frequently users need to Magnetic Fields recharge their devices,” said Jiwoong Provide a New Way to Park, a Ph.D student in Mercier’s Communicating magnetic signals Energy-Efficient Microsystems Lab at Communicate Wirelessly through the human body the UC San Diego Jacobs School of Engineering and first author of the Electrical engineers at the University The new study presents a solution to study. The researchers also pointed of California, San Diego demonstrated some of the main barriers of other out that this technique does not pose a new wireless communication wireless communication systems: in any serious health risks. Since this technique that works by sending order to reduce power consumption technique is intended for applications magnetic signals through the human when transmitting and receiving in ultra low power communication body. The new technology could offer information, wireless systems need to systems, the transmitting power of a lower power and more secure way send signals that can easily travel from the magnetic signals sent through the to communicate information between one side of the human body to another. body is expected to be many times Bluetooth technology lower than that of MRI scanners and uses electromagnetic wireless implant devices. Another radiation to transmit potential advantage of magnetic data, however these field human body communication radio signals do not is that it could offer more security easily pass through than Bluetooth networks. Because the human body and Bluetooth radio communicates data therefore require a over the air, anyone standing within power boost to help 30 feet can potentially eavesdrop on overcome this signal that communication link obstruction, or “path loss.” In this study, electrical engineers demonstrated a technique called magnetic field human body communication, which uses the body as a vehicle to deliver wearable electronic devices, providing magnetic energy between electronic an improved alternative to existing devices. An advantage of this system wireless communication systems, is that magnetic fields are able to pass researchers said. They presented freely through biological tissues, so their findings August 26 at the 37th signals are communicated with much Annual International Conference of lower path losses and potentially, the IEEE Engineering in Medicine and much lower power consumption. Biology Society in Milan, Italy. While In their experiments, researchers this work is still a proof-of-concept demonstrated that the magnetic demonstration, researchers envision communication link works well on developing it into an ultra low power the body, but they did not test the wireless system that can easily transmit technique’s power consumption. information around the human body. Researchers showed that the path

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Recent IoT investments show telecoms operators (gradually) moving up the value

chain In mid-2014, when Analysys Mason made by telecoms operators are hard reviewed more than 100 Internet of to classify, with no obvious common Things (IoT) investments and M&A theme emerging. Investments have deals , only 5 of these involved telecoms been made in horizontal capabilities operators (and 4 of these were Vodafone (e.g. investments in Actility and investments). At the time, we discussed Springworks are essentially about the gap between telecoms operators’ gaining capabilities that can be stated ambition to move up the value applied to multiple vertical markets). chain and their actions (or lack of them). Investments by Telstra (in health), In 2015, however, the picture is changing. Orange (in fleet management) In the first half of 2015 alone, at least and before them by Vodafone and eight telecoms operators have made one Verizon (in automotive) illustrate or more investments in an IoT company the diversity of opinion over what (with notable activity summarised in position to take in the value chain, or the table below). So, what do the latest which verticals to focus on. investments tell us about telecoms • Telecoms operators are still marginal operators’ involvement in IoT? players in IoT investment and M&A. According to some estimates, over • Telecoms operators are cautiously USD10 billion has been invested exploring a different role in the value in IoT companies or acquisitions chain. Investments in SIGFOX look in 2015 (though some of these like defensive moves by telecoms estimates include deals in which operators trying to shore up future IoT was only a small part). Telecoms connectivity revenue. All other operator investment in IoT over the investments (and arguably even the same period was SIGFOX deal) look like an attempt to branch out from commodity Tom Rebbeck Research Director – Digital connectivity revenues. Economy • There is still no standard approach for Analysys Mason telecoms operators in IoT or digital economy initiatives. The investments

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Telecoms operator Target Investment details Notes investor(s) KPN, Orange, Swisscom Actility USD25 million funding Actility is developing a platform of services round2 around the LoRa low-power wide area network- ing technology3 Telstra Ocean Acquisition by Orange5 Fleet management company with over 2000 clients Fleet management company SIGFOX USD115 million funding The telecoms operators invested alongside with over 2000 clients round6 other industrial and pure financial investors TeliaSonera Spring works Equity investment (with Springworks has developed interfaces for IoT TeliaSonera reportedly tak- and has an IoT data analytics platform ing a 30% stake). No pricing information provided7

Figure 1: Notable M2M and IoT investments by telecoms operators in 2015 [Source: Analysys Mason, 2015]

The absence of more significant poor track record of purchasing investment in IoT from telecoms or investing in non-network operators is due to various reasons. companies. For example: The extent of telecoms operators’ • Many telecoms operators lack involvement in IoT cannot be a clear vision for their role in judged purely on the basis of their IoT. As we said in a recent paper M&A or investment activity: other , many telecoms operators still activity, such as partnerships and appear to be taking a tactical and internal developments, also need to ad-hoc approach to M2M and IoT. be considered. However, with the • In comparison to the core exception of a handful of telecoms business of basic voice, data operators, the lack of investment and messaging, IoT and M2M activity indicates an unwillingness to are still relatively small. Few commit to strategies that generate operators earn more than 5% more than connectivity revenues. of their total revenue from IoT The recent investments by telecoms and M2M services. As a result, operators are encouraging indications, IoT and M2M teams may have but more are needed for operators little management attention and to make significant moves along the access to only limited resources. value chain. • As well as the obvious financial cost, M&A and investment activities are time consuming and can be a distraction from operators’ day-to-day business. • Operators have been unsuccessful at M&A in the past and want to avoid repeating their mistakes. Although successful M&A activity between telecoms operators is relatively common, many of them have a

1 See http://www.analysysmason.com/About-Us/News/Insight/M2M-operator-acquisitions-Jul2014/ 2 See http://www.thingpark.com/en/news/internet-things-specialist-actility-announces-25-million-funding-round-led-ginko-ventures--0 3 See http://lora-alliance.org/What-Is-LoRa/Technology for more information on the LoRa Alliance and technology. 4 See http://www.telstra.com.au/aboutus/media/media-releases/telstra-health-secures-operation-of-medibanks-anywhere-healthcare.xml 5 See http://www.orange.com/en/press/Press-releases/press-releases-2015/Orange-Business-Services-acquires-Ocean-to-strengthen-its-vehicle-fleet-management-activities 6 See http://www.businesswire.com/news/home/20150211005248/en/SIGFOX-Global-Leader-Internet-Connectivity-Secures-Record#.VYvZLvlViko 7 See http://www.teliasonera.com/en/newsroom/news/2015/teliasonera-invests-in-renowned-swedish-iot-firm-springworks-/ 8 See http://www.analysysmason.com/Templates/Pages/KnowledgeCentreArticle1.aspx?id=16387

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SATELLITE NEWS

Arabsat-6B and GSat-15 has released a fully industrialized product to deliver launch set for November key communications functionality and Flight VA227 will carry the Arabsat- connectivity required at sea. Maritime 6B and GSat-15 telecommunications Connect allows shipping companies to satellites, and is set for a November integrate their fleet into the corporate launch date. Both payloads on Flight network and provide Internet access for VA227 in November are for long-time crew and applications. Maritime Connect Arianespace customers, continuing delivers voice, VoIP, data and Internet the company’s relationships with Arab access in one solution, independent of nations and India. Arabsat-6B is a the communication technology used. sixth-generation satellite for Arabsat Shipping companies, IT managers, – the inter-governmental organization captains and the crew can control access founded by the Arab League in 1976. to data and voice services on board The spacecraft was built in a consortium vessels or remotely from shore. It can be Satellite led by Airbus Defense and Space, used on ships equipped with any type supplier of the Eurostar E3000 platform of satellite communications systems. Updates and the satellite’s integrator; along with The solution was developed over a year Thales Alenia Space, which designed as part of a European Union initiative and built the communications payload. dedicated to improving communications Weighing in at a liftoff mass estimated on vessels at sea. at 6,100 kg., Arabsat-6B will provide telecommunications and TV broadcasting services for the Middle East and Africa. Sentech Extends Intelsat Flight VA227’s other payload, GSat- 20 Contract for DTH and 15, was developed by the Indian Space Research Organization and will deliver DTT in Africa C- and Ku-band telecommunications Sentech, a broadcasting signal distributor services. GSat-15 will have a liftoff mass in Africa, has extended its contract with of approximately 3,150 kg. Intelsat for multiple years. Sentech will continue to leverage Ku-band capacity on Intelsat 20 at 68.5 degrees east to Orange Business Solution cost-effectively expand and enhance Integrates Ships into the its Direct-to-Home (DTH) and Digital Terrestrial Television (DTT) services in Corporate Network Africa. The Intelsat 20 satellite will provide Sentech with an expansive selection of

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nearly 500 channels, 31 of which are NBN Co satellites, making HTS the next APSCC Confident Asian High Definition. Sentech will maximize “PrideSat,” or patriotically motivated its efficiency as it distributes DTH as satellite, for Asia. Governments Will well as national DTT programming to Protect C-band South African viewers using a single, multiplexed transmission.. “As the Asian governments will likely stand rest of the continent continues the NASA Inaugurates with the satellite industry in defending migration to DTT, the power of Intelsat SmallSat Technology a “no change” stance toward the 20 will enable us to efficiently deliver reallocation of C-band — such is the digital services to the largest number with CYGNSS Mission hopeful expectation of the Asia Pacific of viewers as well as expand our The University of Michigan recently Satellite Communications Council customer base. Most importantly, it started building a constellation of (APSCC), a non-profit international will enable us to enhance our channel eight microsatellites for use on NASA’s association of public and private selection and deliver more affordable, Cyclone Global Navigation Satellite satellite entities. The pressing return entertaining programming to viewers System (CYGNSS) mission, which aims of the World Radiocommunication across multiple channels throughout to improve hurricane forecasting. The Conference this year, designated South Africa,” said Leago Takalani, mission, when launched in October WRC-15, will bring together industry, executive: technology at Sentech. governments and regulators to decide on spectrum issues, Asia’s Connectivity with conclusions regarding C-band Needs to Drive HTS (3.4 to 4.2 GHz) Adoption forming the crux of satellite industry The demands of a “wired” culture, concerns. WRC- strategic military pivots toward 15 takes place in Asia, and a rise in targeted satellite Geneva, Switzerland programs are catalyzing High this November Throughput Satellite (HTS) demand in but leaders from Asia, according to a recent Northern around the world Sky Research (NSR) study. The firm’s have already “Global Satellite Capacity Supply & held numerous Demand, 12th Edition” report finds regional meetings that though O3b Networks Medium in preparation for Earth Orbit (MEO) constellation and the conference. Thaicom’s Ipstar satellites are the only 2016, will be the first in NASA’s history The Inter-American HTS supply alternatives over Asia right to make use of a constellation of Telecommunication Commission now — with both targeting distinctly small satellites, which have taken (CITEL) recently proposed allocating different markets — the region is off in the commercial sector and are a portion of C-band from 3.4 poised for many new entrants. Intelsat, often affiliated with the “NewSpace” to 3.6 GHz to the International SES, Eutelsat, ABS, and Kacific have arena, but have seen little activity Mobile Telecommunications (IMT) all announced GEO missions for this in government programs. With the industry, which says it needs more decade, all for a region that has been technology seeing rapid maturation in spectrum to accommodate the slow to adopt HTS thus far. “Asia’s the last five years, federal organizations rapid growth of mobile services. The need for connectivity will increase now feel secure enough to employ European Conference of Postal and exponentially over the next decade, SmallSat technology, which may Telecommunications Administrations’ and satellite’s role will be vital to this offer major benefits to certain types (CEPT) final WRC-prep meeting this expansion. Applications like backhaul of government missions. “Because year suggested 3.4 to 3.8GHz be and enterprise data will propel growth you can fly a lot of them, things that dedicated to mobile broadband. These in the future,” said Blaine Curcio, senior change quickly are amenable to dispositions add weight to the belief analyst at NSR and co-author of the CubeSat science,” explained Chris Ruf, that the satellite industry will likely report. NSR expects enterprise data CYGNSS principal investigator at the have to compromise on C-band at demand alone to grow to near 50 Gbps University of Michigan, which won the this year’s WRC, compared to 2007’s of Geostationary Earth Orbit (GEO) NASA contract to design and build conference when the industry was HTS capacity, on top of an additional the constellation in December 2012. able to keep the band largely intact. 375 Transponder Equivalents (TPEs) “Extreme weather, storms, earthquakes, The Asia Pacific could offer more hope, of Fixed Satellite Service (FSS) flooding, [and] hurricanes are all things however, for defense of the spectrum. capacity demand by 2024. “In Asia, an that are getting looked at right now for Paul Brown-Kenyon, president of enormous demand for connectivity future mission architecture studies.” APSCC and CEO of Measat, told Via is emerging, with a distinct role for According to Ruf, the Department of Satellite that regulators in the region satellite. When all summed up, we will Defense (DOD) and National Oceanic are largely in support of keeping see nearly $900 million in revenues Atmospheric Administration (NOAA) C-band as is. “The recent 5th Meeting by 2024. That’s nearly 5 percent of are also looking into how to use of the APT Conference Preparatory all global capacity leasing revenues satellites to lower costs and increase Group for WRC-15 (APG15-5) in in 2024 — just for data and just in revisit time on satellite missions. Seoul, Korea from July 27 to August Asia,” added Curcio. NSR also believes 1, concluded to a view of ‘no change’ countries such as China and India will on the C-band allocation for satellite follow in the footsteps of Australia’s

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SAMENA TRENDS _ SEPT 2015 SAMENA TRENDS _ SEPT 2015 services. Although a minority of LTE-based ground network of around (ATG) network will be combined with countries supported IMT allocation in 300 sites developed and run by DT. satellite connectivity. Lufthansa will the C-band, the meeting forwarded In early summer 2016 Lufthansa will be the first European hub airline to to APT members a ‘Preliminary APT offer satellite-based connectivity on use the network, starting with satellite Common Proposal for ‘No Change’ board its European flights and has service in 2016 and progressing to a in the C-band.’ We are now waiting committed to a flight test programme flight trial program of the European for the member administrations to for the European Aviation Network Aviation Network from 2017. endorse this Asian Common Proposal,” from 2017 onwards. he said. Brown-Kenyon warned, ‘This bold step will make Deutsche though, that the industry will need to Telekom the first telecommunications Chinese Small Satellite continue to voice its concerns with APT operator to take the advantages of LTE countries to obtain a confirmed APT Launcher Completes technology to the European airspace, Common Proposal in support of no and fits perfectly into our strategy to First Mission change. APSCC members are actively become the leading European telco,’ working to inform regulators about China’s Xinhua News Agency has commented Tim Hoettges, CEO of C-band and it’s importance both to reported the successful launch of the DT. ‘As a groundbreaking innovation the satellite industry and overall Long March 6 rocket from the Taiyuan we will roll out a powerful terrestrial telecommunications services. Among Satellite Launch Center in north China’s network based on LTE within the supporters of APSCC in this mission are Shanxi Province. The new carrier European Aviation Network. This the Cable and Satellite Broadcasting rocket, designed mainly for the launch will be the first aviation connectivity Association of Asia (CASBAA), the of micro-satellites, orbited 20-such network in Europe powered by both Global VSAT Forum (GVF), and spacecraft during the mission. Xinhua LTE and satellite combined. Our the European Satellite Operator’s said the satellites will be used for space technology leadership provides a Association (ESOA). John Medeiros, tests. The launch tested the feasibility solid foundation for the best customer chief policy officer at CASBAA, told and accuracy of the rocket’s design, experience possible – be that on the Via Satellite that C-band is of the along with other new technologies. ground or in the skies – and enables utmost importance in Asia. “C-band The Long March 6 uses us to work with the finest partners in transmissions are vital — literally the and kerosene as propellants, and is the Europe and beyond.’ arteries through which our blood country’s first carrier rocket to use fuel flows — and there are no available free of pollutants. substitutes,” he said. Brown-Kenyon reaffirmed this point, stating that Asia Inmarsat, Deutsche has such diverse communications Telekom Team up on Afrikanet Gears up for needs that C-band becomes arguably Ka-band Broadband more important for this continent than European Aviation other parts of the world. “Highlighting Network Boom C-band’s importance in Asia are the Afrikanet, a satellite Internet Service latest estimates indicating that half of Inmarsat and Deutsche Telekom have Provider (ISP) dedicated to African satellite bandwidth utilized over Asia is formed a strategic partnership to markets, expects to see a surge in in C-band compared to approximately develop a hybrid terrestrial-satellite In- business as more Ka-band High 35 percent in other regions,” he said. Flight Connectivity (IFC) system called Throughout Satellites (HTS) are Asia, being home to more than 4 billion the European Aviation Network. The launched over its primary market. people, has a variety of geographies system will employ 300 LTE sites across The company, formed and communications needs. In in 1999 to provide many areas C-band is favored for its last-mile connectivity, resilience against rain fade, compared started offering satellite to Ka or Ku frequencies. Euroconsult broadband in 2005. conducted a study released in June Now, with several 2014 that described C-band in the satellites soon to launch, Asia-Pacific as inimitable. the company is planning a push into residential markets where satellite DT partners with broadband was largely Inmarsat to offer in- unaffordable in the past. “We recently flight LTE in Europe started successful Ka- German telecoms giant Deutsche Europe combined with a new S-band band testing,” Casimir Berthier Fotso Telekom (DT) and UK-based Inmarsat satellite from Inmarsat. Last year Chatue, CEO of Afrikanet, told Via have unveiled a strategic partnership Inmarsat announced a joint satellite Satellite. “We are starting to target designed to deliver in-flight internet with Hellas Sat, with its half called East Africa, but our next phase is connectivity to European travellers via a Europasat, that will use the company’s preparing for 2016-2017 when big combined LTE-based ground network/ 30 MHz of S-band spectrum allocation players like Avanti and Yahsat will satellite network. DT and Inmarsat across the European Union (EU). The launch high throughput satellites. Each are working together to develop LTE sites will have a range of more is launching one or two big satellites the European Aviation Network, than 80 km, compared to the 10 km to cover West Africa. That’s when combining satellite connectivity from a or less range of conventional LTE sites. we are going to really capitalize and new Inmarsat S-band satellite with an Once an aircraft has reached 10,000ft, bring satellite broadband to different Deutsche Telekom’s Air-to-Ground households and directly target

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growing middle class African end users additional kit. The SatSleeve Hotspot the remote areas of Mozambique and in mass markets.” Though based in creates a portable satellite Wi-Fi ensure that our network infrastructure Oxford in the U.K., Afrikanet is created hotspot, giving people connectivity is robust enough to retain and, as and run by Africans, with personnel without physically docking their needed, quickly restore service to local in Africa to be close to customers. smartphone to a unit, and freedom cellular operators and their customers The company has operations in to move indoors. A SatSleeve Hotspot throughout the country.” 14 countries primarily in the Sub- user can leave the stand outside, Saharan portion of the continent. stay indoors or in their vehicle, and Fotso Chatue said Ka-band will enable use their smartphone in satellite Skynet 5A Satellite satellite broadband similar to Direct- mode inside. Both models enable to-Home (DTH) broadcasts, further users to make calls, use messaging Arrives at Asia-Pacific boosting connectivity in the region. applications, update social networks, Orbital Slot He estimates broadband penetration send and receive email and SMS, was around 2 or 3 percent penetration and access apps. They also come Airbus Defence and Space’s Skynet 5A when the company started, and is now with a programmable SOS button satellite has completed its 67,000km around 14 to 15 in some countries. In that works even if no smartphone relocation from 6 degrees east to 95 more advanced countries the number is connected. Thuraya believes the degrees east, the company announced is closer to 25 percent, he said. As SatSleeve+ and SatSleeve Hotspot Sept. 15. Skynet 5A began its transition more HTS systems come online, this will appeal to travelers, adventurers, on June 17. Airbus Defence and Space number is expected to rise. Africa is outdoor sportspeople, and consumers moved the satellite to extend Skynet a market of considerable interest for who want ubiquitous connectivity, constellation’s coverage and services many satellite operators to add new alongside core government, media, from 178 degrees west to 163 degrees capacity. In the Ka-band space, Avanti energy, and Non-Governmental east, including the Indian Ocean and is launching the Hylas 3 steerable HTS Organization (NGO) sectors. The Western Pacific region. With the payload in 2017, along with the Hylas operator plans to market both devices transition now complete, the Skynet 4 satellite the same year. Yahsat’s Al through existing distribution partners, network offers near-global military Yah 3 is scheduled to launch in 2016. new agreements with Mobile Network X-band and Ultra High-Frequency Earlier this Month, Fibersat announced Operators (MNOs) in key markets, (UHF) coverage, expanding core a new hosted payload known as and new channels generated through service reach for the U.K. military and Fibersat 1 that will also bring Ka-band online retailer Expansys. augmenting coalition capabilities in capacity to Africa in 2018. the region. Airbus Defence and Space owns and operates the hardened Skynet X-band satellite constellation Thuraya Reaches for Intelsat to Reinforce of eight satellites and the ground and Extend Broadband network to provide all Beyond Line of More Smartphone Users Sight (BLOS) communications to the with Two New SatSleeve Services in Mozambique U.K. Ministry of Defence. The contract Mozambique’s telecommunications also allows other North Atlantic Products company, Empresa Nacional de Treaty Organization (NATO) and allied governments, such as members of the Thuraya Telecommunications Telecomunicacoes de Mocambique, five-eyes community (besides U.K., has released a new generation of has renewed its relationship with the U.S., Australia, New Zealand and SatSleeve models, the SatSleeve+ and Intelsat for satellite solutions that will Canada), to use the Skynet system to the SatSleeve Hotspot. The SatSleeve+ help the company deliver broadband augment their existing services. Airbus features a new voice routing system connectivity to corporate networks Defence and Space also leases the that improves on sound quality, and and provide cellular backhaul services X-band hosted payload on Telesat’s can be used with a wider range of to support residents in remote areas Anik G1 satellite, which covers the smartphone models than before. of the country. Under the multi-year agreement, Empresa Nacional de Americas and parts of the Pacific Telecomunicacoes de Mocambique including Hawaii and Easter Island. will use C-band capacity on Intelsat 902 at 62 degrees east to provide dual band connectivity for its own Eutelsat Inks new transport network and use with local Broadcast and IoT Deals cellular operators. For a country that is susceptible to heavy rainfall Eutelsat Communications has signed and flooding, C-band spectrum is up a number of customers in Africa particularly useful given its known and in Europe for broadcast services, performance and durability in adverse and also tightened it’s collaboration weather conditions. “Our customers with Internet of Things (IoT) pioneer expect and deserve fast, reliable and Sigfox. New broadcast customers continuous broadband connectivity are planning to launch collectively The device comes with a universal regardless of location or weather,” said more than 175 channels, with the smartphone adaptor to reach a larger Zainadin Dalsuco, CEO at Empresa transition from analogue to digital number of smartphone owners than Nacional de Telecomunicacoes opening up new doors for satellite. was previously possible. The adaptor Mocambique. “By partnering United Business Machines EG (UBM), also allows users to switch between with Intelsat, we can quickly scale an IT specialist company in Equatorial handsets, so owners of more than our existing network to meet the Guinea purchased capacity for a one smartphone do not need to buy increasing broadband demands in new pay-TV platform called EG SAT,

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SAMENA TRENDS _ SEPT 2015 SAMENA TRENDS _ SEPT 2015 which will broadcast more than 60 ESA. “By steadily boosting the number VSAT terminals. The company has channels. Telekom Austria Group of satellites in space, together with already signed significant pre-launch doubled the number of transponders new stations on the ground across orders with telecommunications leased on Eutelsat 16A from four the world, Galileo will soon have a operators providing network services to eight to support Antik Telekom’s global reach. The day of Galileo’s full in the Africa region. “Fibersat has now upcoming platform with more than operational capability is approaching.” taken the first step in realizing the 90 channels, of which one third will be dream of ultra low cost broadband in High Definition (HD). Canal+ is also in Africa,” said Christof Kern, CEO of launching a new pay-TV service by , Orange, Fibersat. “By combining the benefits the end of the year with 25 channels, of a power-optimized HTS design contracting a 72MHz transponder Deutsche Telekom and and leveraging a hybrid satellite on Eutelsat 3B, and Arqiva in the Telefonica Unite Startup architecture, Fibersat will be able to U.K. inked an agreement for a 14th offer customers unprecedented price transponder for the country’s Direct- Groups levels for satellite services which is to-Home (DTH) market. Singtel, Orange, Deutsche Telekom, key in price-sensitive markets like and Telefonica have teamed up their Africa. This is the only way to meet startup arms, Singtel Innov8, Orange the exploding demand for Internet in Galileo Launch Grows Fab, hub:raum, and Telefonica Open Africa, the fastest growing market in Constellation to 10 Future, respectively, to link the startup the world.” ecosystems across Southeast Asia, Satellites Africa, Europe, Latin America and Turksat Selects Arris’ the Middle East. The partnership will Two Full Operational Capability E6000 CER for Future enable selected startups to tap into (FOC) Galileo satellites for Europe’s the resources and networks of the four Broadband Services Global Navigation Satellite System telecommunications companies in (GNSS) launched Sept. 10 aboard an Turksat has selected Arris Group’s order to catalyze growth and to reach Arianespace rocket. Galileo E6000 Converged Edge Router (CER) beyond their respective home markets. 9 and 10, also known as Alba and to prepare for future IP interactivity The benefits of this partnership for Oriana, entered their target orbit close and higher speed broadband services. startup companies include market to 23,500-km altitude approximately 3 The router will support today’s Cable insights, introductions to partners, hours and 48 minutes after liftoff. Two Modem Termination System (CMTS) the use of co-working spaces and further Galileo satellites are scheduled requirements as well as the company’s access to the larger companies’ for launch by end of this year. OHB of transition to a Converged Cable operating businesses. The four telcos Germany is building the satellites, with Access Platform (CCAP). Turksat will be may also offer the opportunity for able to reach broadband speeds of up selected startups to access their to 500Mbps and 1 Gbps while future- collective mobile customer base of proofing its headend for service more than 1 billion people across expansion. Turksat manages and four continents. “With the partnership operates three satellites — Turksat 2A, between Deutsche Telekom, Orange, Turksat 3A, and Turksat 4A— and has Singtel, and Telefonica, we see a huge its next satellite, Turksat 4B, slated to opportunity to develop the bridges launch on a rocket in October. between the ecosystems in Asia, The company provides cable and Africa, Europe and Latin America, wireless broadcasting, high-speed and to provide startups with critical Internet, and Direct-to-Home (DTH) market access, funding and expertise broadcasting services. Additional to become more successful with their satellites are planned for integration international expansion,” said Min- into the operator’s growing satellite Kin Mak, VP of hub:raum at Deutsche fleet. Telekom. Surrey Satellite Technology Ltd. (SSTL) in the U.K. providing the navigation Fibersat Signs Hosted Arabsat, EMC Launch payloads. The completed constellation Triple-Play Joint Venture will consist of 30 satellites and their Payload Deal with associated ground infrastructure. Arabsat and Emerging Markets For Arianespace, the mission was Arabsat Communications (EMC) have number eight of a planned 12 for the Burgeoning satellite operator Fibersat established a Joint Venture (JV), called year, which would be a new record. has signed a framework agreement Trio, dedicated to offering triple-play The launch company is set to launch with Arabsat for the acquisition of services over satellite. The Trio platform two more satellites with Soyuz this a high throughput Ka-band hosted is built on EMC’s SATLink technology, year, before switching to the payload on an upcoming satellite. and will launch on Arabsat’s upcoming rocket in 2016 with a launch carrying The payload, known has Fibersat 1, Badr 7 satellite. The JV will provide a four satellites. One more Soyuz and will provide High Throughput Satellite Set-Top-Box (STB) that bundles 10 two more Ariane 5s will continue (HTS) capacity for markets in Africa Mb broadband connectivity, Free- Galileo launches in 2017 to 2018. “The starting in 2018. At launch, Fibersat to-Air (FTA) and pay-TV reception deployment of Europe’s Galileo system will provide Internet access services to and Video-on-Demand (VOD) with is rapidly gathering pace”, said Johann- remote locations across the continent smart algorithms and large recording Dietrich Woerner, director general of using low cost, commercially available capability for national and international

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content. The service will also act as a is one of the main challenges that aimed at reducing the amount of Wi-Fi bridge for households so that aerospace engineers have to face, due propellant needed, and hence the handheld devices can be connected to the danger it poses to satellites. In associated cost”. The researchers to Internet and television. Badr 7 this context, members of the Scientific have undertaken their study, which is scheduled to launch through Computing Group (GRUCACI) at they have published in the journal Arianespace in early November 2015. University of La Rioja have developed Advances in Space Research, as a The spacecraft’s high throughput Ka- a method to eliminate satellites in mathematical optimization problem band payload is designed to support Highly Elliptical Orbits (HEO) when in which several objectives have Trio solutions for the Middle East and they finish their mission. HEO orbits to be simultaneously fulfilled, and North Africa (MENA) and other select are very eccentric (the farthest position they have solved it by means of an African markets. The service will be can be ten times farther from the Earth evolutionary algorithm -based on formally launched upon readiness of than the nearest) and inclined (60 biological evolution-. They have also the satellite for commercial operations. degrees or more with respect to the used their own orbit propagator Trio will have also an enterprise version equator); their evolution is strongly software, which is designed to for broadband over satellite and will influenced by the gravitational effects propagate the evolution of an orbiter be able to support 4K content. “Under of the Earth’s equatorial bulge and during 100 years in just a few seconds. the current JV, the assets and know- the pull from the Moon and the Sun. This program allows finding the best how of SATLink have been transferred Both effects can cause satellites placed conditions and instants for satellites to into Trio to allow for an autonomous in this type of orbits to cross two re-enter into the Earth’s atmosphere, operation and to serve the needs of ‘protected’ regions (Low Earth Orbits, where they can safely disintegrate both Arabsat and EMC and support LEO, and Geostationary Orbits, GEO) with minimum risk for other satellites. their big database of customers,” said during long periods of time, thus In order to prove the effectiveness of Santiago Rossi, general manager of increasing the risk of collisions with their methodology, the researchers the newly established Trio. the numerous satellites operating have applied it to the European Space in them. In addition, the probability Agency (ESA) INTEGRAL mission, of an uncontrolled re-entry into the an advanced gamma-ray space How to Get Rid of lower layers of the Earth’s atmosphere observatory launched in 2002. “The also increases. “Our research has simulation results suggest designing a Satellite After its focused on taking advantage of the manoeuvres so that the INTEGRAL Retirement same gravitational effects that affect satellite re-enters into the Earth’s HEO orbits so as to reduce the cost atmosphere, and subsequently Researchers at University of La Rioja of eliminating the satellites which disintegrates, during the period of time (Spain) have developed a new method operate in them once they have from September 2028 to July 2029, in to eliminate artificial satellites in reached retirement”, Roberto Armellin, a controlled way and with a cost which Highly Elliptical Orbits when they finish co-author of the work, explains to is reduced by the amplification of their mission. The methodology, which Sinc. “Some propellant needs to natural gravitational effects”, Armellin allows for a reduction of both cost and be reserved in order to perform points out. This solution coincides risk, has been tested with the European the satellite disposal manoeuvres, with the real strategy adopted by Space Agency INTEGRAL mission, so it cannot be used to extend the ESA to eliminate INTEGRAL, which which will re enter into the Earth’s mission duration, which makes it more has fired its engines four times this atmosphere in order to disintegrate expensive”, the researcher adds, “so year so as to re-enter safely and with in 2029. The problem of space debris we have developed a methodology a reduced cost on February 2029. The latest regulations of ESA about space debris require that, once the end of life has been reached, if a satellite continues to cross the LEO protected region it must re-enter into the Earth’s atmosphere and disintegrate before 25 years. INTEGRAL is going to comply with these regulations, even though it was not obliged to, due to its launch date. The study of the GRUCACI team also proves that it is possible to select some latitude regions such that the satellite re-entry takes place with minimum risk to cause damage to populated areas of the Earth.

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