Volume 07, June-July, 2016 SAMENA TRENDS EXCLUSIVELY FOR SAMENA TELECOMMUNICATIONS COUNCIL'S MEMBERS BUILDING DIGITAL ECONOMIES

A SAMENA Telecommunications Council Newsletter

Articles

Delivering Smarter SaaS Performance and Security with the Hybrid Network Page 67

SIM Boxes and Internet of Things Pose Rising Fraud Threats in The Middle East and Africa Page 80

Mr. Ahmad Farroukh CEO Mobily Page 04

Promoting market access and end-user participation in the age of digitization

www.samenacouncil.org SAMENA CONTENTS VOLUME 07, June-july, 2016 TRENDS

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Editor-in-Chief Bocar A. BA

Contributing Editors Izhar Ahmad Javaid Akhtar Malik 04. Contributing Members Orange Business Services Syniverse EXCLUSIVE

Publisher SAMENA Telecommunications Council INTERVIEW Mr. Ahmad Farroukh CEO Subscriptions Mobily [email protected]

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SAMENA TRENDS [email protected] Tel: +971.4.364.2700

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SAMENA TRENDS JUNE-JULY 2016

Promoting market access and end-user participation in the age of digitization

The availability of telecoms infrastructure and A government policy mindset that, for instance, digital access technologies not only promotes would encourage investments by telecom intra-sectoral development and market entry operators, provide level-playing field for all and access by players directly involved in digital players within the telecoms and the digital value communications and ICT development, but also chain, provide incentives for intra and inter-sector assists entities from other sectors to enter and participation across all economic sectors, promote participate in the global marketplace. services that require the citizen to participate in and benefit from digital platforms such as Granted it all, fundamentally, is a game of e-government m-education platforms, etc., is the investment and business sustainability that telecom same that would would make the economy open operators carry out and require, respectively, to international trade. policymakers and regulators have to set the right visions and create the best possible environments Digitization, in all its forms and with its ability to to operate in. Ultimately, the goal for every market, impact the speed at which economies progress for every country, is to be integrated into the forward in creating a better future for their world economy, which is now being defined as citizens, is among the greatest imperatives of digital economy. This global economic integration, the modern world. It is so important that it can over the years, has been made possible by the create solutions to many of the problems that our telecommunications industry, upon to investment societies and our environment face. To accelerate efforts of which advancements and progress of digitization, however, measures to support market various other industries and economic sectors access and to encourage investment and cross- function. sectoral participation have to be set forth. Every smart, digitally-driven developing society has such Economic participation and integration, whether fundamental requirements to be fulfilled by its within a given market or across the borders, are government visionaries. directly responsible for elevating standards of living for billions of end-users across the planet who are increasingly participating in digital service adoption. Most of the developed nations and many of the developing ones are increasingly sharing in the prosperity brought forth by socio-economic integration, driven by accelerated digitization. This, as the Word Trade Organization maintains, has become important to world trade and to the opening up of markets across the borders for foreign market players.

Thus when telecom operators speak of the need to frame new regulatory frameworks that support their business needs and government policies that foster digital development, they indeed are speaking of the much larger need to making an economy open to international trade and investment, so that economic participation and integration are carried out at a faster pace. This openness, which is much easier today to achieve due to digitization and much more important given the globalized nature of the collective human endeavor, is crucial to achieving economic success.

Yours truly,

Bocar A. BA Chief Executive Officer SAMENA Telecommunications Council

3 exclusive interview

SAMENA TRENDS JUNE-JULY 2016

Mr. Farroukh began his career in 1983 as the Finance Manager for Mediterranean Investor Group. By the early 1990s he focused on audit roles, first as an Audit Supervisor for KPMG, New York and then for Deloitte Touché, Saudi Arabia. In Mr. Ahmad Farroukh 1996 he joined Investcom Holding Group as its Group Finance Controller.

CEO He then moved to Africa joining Scancom (Investcom Holding Group) in Ghana Mobily as Managing Director and Regional Manager for its West Africa operations. Following Investcom’s acquisition by MTN Group, he was appointed as CEO MTN Nigeria, which, under his leadership, grew to 40 million subscribers with EBIDTA margins of 62%. This success propelled him to the role of Vice President West and Central Africa and later Group COO at MTN. In 2014 he was appointed as CEO for MTN South Africa.

Mr. Farroukh started his role in Mobily in July 2015, and he is still managing the executives of company which has about 20 million customers.

4 exclusive interview

SAMENA TRENDS JUNE-JULY 2016

Q: What are Mobily’s latest initiatives that are Q: Under what ideal conditions would a promoting digital service adoption among telecom operator be willing to promote users? market access for non-ICT players entering the ICT market? A: There are several initiatives under Saudi 2030 vision to support digitalization, and definitely we are part of A: Facilities and regulations for non-ICT players, along it by supporting our digital services. We are working with telecom operator enablers can be used altogether on special design concepts and methodologies that to encourage promotion of market access for non-ICT encourage user adoption. For digital services, Simplicity, players. Self-care and convenient payment methods will help to encourage in adoption of digital. Meanwhile, our App will be a platform for allowing services. Q: How do you avail of the planned devel- opments of 2030 vision? Q: How can digital services such as mhealth, A: Definitely these developments have a direct impact mfinance, and others be promoted through on our sector. We are involved in several megaprojects existing telecommunications programs? in the petrochemical sector for instance with national companies, providing connectivity, disaster recoveries A: Telecom operators play a core role in promoting and all sorts of ICT services. We are ready to capitalize on mhealth in the society, and we definitely offer mhealth these opportunities and are proud to be involved in these services that meet the domestic demand. Recently, kinds of projects. Our staff base, which is 78% Saudi, is Mobily unveiled “TransforME” App for Fitness and knowledgeable and I consider they are the future of our Health, which provides intelligent diet program with an company, they are ready to meet the demands of the integrated training and exercise program at the same market. time, which allows follow-up development in achieving food goal and sports exercise plans tailored for your Q: How Mobily as a brand is aligning itself body and fitness goal. This App is the first service of its kind to be based on subscriptions in the Kingdom with the government vision, with the of Saudi Arabia and we focus now on the lifestyle and societal needs and the rest of the business fitness mhealth services because there is a high demand sector when it comes to showing the other here in the Kingdom for such services. For mfinance, it is side of Saudi Arabia to the world? still to be approved by SAMA. A: I think this is done through our participation in differ- Q: In view of digital development goals, how ent forums across the world, through the engagement of do you correlate improved market access the foreign investors. I don’t know the “right ingredients” with improved user participation? to shape international perceptions but I am absolutely sure that everybody is pushing on one direction which is definitely the betterment of Saudi Arabia. The in-country A: Increased market offerings, simplified display of forums and the delegate visits continue to confirm that those offerings, along with convenience of purchase and their experience in KSA was far above expectations. delivery options all are important elements to enhance both market access and user participation.

Q: What joint ventures within the telecoms/ ICT industry are bringing shareholder value to your business and are redefining your success as a telecom enabler?

A: ICT solutions for the business sector are a unique opportunity for telecom operator to bring value for the shareholder and expand operations. Especially, cloud computing is a cutting-edge service that witnesses a high demand because it is a secure, high-performing, enterprise-grade cloud computing platform. In addition, this service helps increase operational efficiency, ROI, and offer greater financial flexibility through the consumption- based billing model.

The service acts as a platform that allows businesses of all sizes a virtualized computing resource (memory, network, storage) on demand. As the foundation of all cloud-based managed services, it underpins the performance, availability and reliability of a wide variety of infrastructure managed services and application managed services built upon it.

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SAMENA TRENDS JUNE-JULY 2016

MEMBERS NEWS

due to deregulation of ICH. PTCL operating expenses during the period were reduced by 4% compared with same period last year due to effective cost optimization measures in place. Net profit of the Company stood PTCL’s financial performance at Rs. 5.6 billion. Although the PTCL Group’s net profit before tax was increased by 34% in half-year 2016 with 10% compared with same period last year main- ly on account of increased operational ef- cash dividend ficiency of PTCL Group, the net profit after Pakistan Telecommunication Company tax showed slight decrease of 2% due to Limited (PTCL), the country’s leading ICT increased new tax charge on account of 8% MEMBERS services provider, has announced its fi- minimum tax requirements which was ac- nancial results for half year ended June counted for in the financial results of half UPDATES 30, 2016 at its Board of Directors meet- year 2016. PTCL Group remains committed ing held in Islamabad on 19th July 2016. to provide cutting-edge ICT products and In the meeting, the Board of Directors has services to its diversified array of consumer declared 10% interim cash dividend to the base throughout the country at competi- shareholders. PTCL Group earned Rs. 58.96 tive prices using its vast communication billion revenue during the first half of 2016 infrastructure capabilities available across whereas PTCL’s revenues were Rs. 36.2 bil- Pakistan.” lion during the period. DSL broadband revenues increased compared with same period last year. However, revenues from Voice services remained suppressed mainly

AT&T and Orange collabo- rate on open source and standardization initiatives for SDN AT&T* and Orange have signed an agreement to collaborate on open source Dr. Daniel Ritz, CEO, PTCL and standardization initiatives that will

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SAMENA TRENDS JUNE-JULY 2016 accelerate the standardization of that will accelerate the adoption of first’ approach. We aim to earn our software-defined networking (SDN) SDN. Driving the industry toward a customers’ trust and enrich society and network function virtualization standardized approach will reduce with comprehensive, innovative (NFV) technologies. The companies are the cost and complexity created services and solutions. The network, aligning on a strategic vision to move by proprietary implementation of underpinned by advanced NFV and intelligence from customer hardware equipment in the network and on automation capabilities, can deliver to the network, reducing cost and the customer premise,” said Roman substantial value to our customers complexity. This effort will help the Pacewicz, Senior Vice President, Offer by providing the agility, speed and industry and business customers Management and Service Integration, simplicity that today’s businesses move faster towards a more agile, AT&T Business Solutions. “Everyone require. Juniper is an ideal partner with flexible and on-demand networking benefits when network services and the same customer-centric approach, future. Today, deploying new virtual functions are designed around a providing us with state-of-the-art network services and functions is common ecosystem that is delivered technology for our cloud-based complex. Network service providers on open platforms. Innovation can offerings,” stated Dr. Tarig M. Enaya, (NSPs) and businesses alike have happen faster and more easily, and senior vice president for enterprise at to deal with proprietary standards, this model will also help improve Saudi Telecom Company. closed architectures and multiple reliability and security,” said Didier equipment vendors that have different Duriez, Senior Vice President, Global platforms and specifications. AT&T and Orange will identify appropriate Solutions, Orange Business Services. forums for industry standardization discussions to drive standardization efforts forward. By introducing common standards and interfaces, the industry would simplify technological New Cisco research integration, increase operational efficiency and reduce costs, resulting provides digital roadmap in shorter deployment cycles and a Saudi Telecom deploys for capturing $405 faster pace of innovation. Building SDN and NFV technologies on common, Juniper Contrail SDN billion retail banking open and interoperable standards Saudi Telecom Company (STC) opportunity will help solve today’s challenges by has deployed Juniper Networks Cisco announced a new research delivering highly secure, intelligent, Contrail Networking and NFV to titled “Roadmap to Digital Value in the application-aware networking. This create automated cloud services Retail Banking Industry”, which reveals benefits both NSPs and business for its customers. With dedicated that retail banks have the potential customers by enabling them to cloud services powered by Contrail to realize $405.3 Billion from 2015 to deploy services faster, customize 2017 as the Digital Value at Stake (VaS). their infrastructures in near real-time, Yet, in 2015, financial services as a and innovate more easily within an whole captured just 29 percent of that ecosystem of interoperable service opportunity. Of the challenges slowing and equipment providers. Through a growth and innovation, cybersecurity network-centric approach, AT&T and weakness is certainly at the forefront. Orange are committed to making the Cybersecurity concerns have prevented SDN and NFV vision and benefits more retail banks from adopting digital accessible for both businesses and technologies and business models. the industry. The two companies will And this has contributed to them concentrate on the following areas: Dr. Khaled H. Biyari, CEO, STC missing out on more than 70 percent Make customer premises equipment of the potential revenue opportunity. (CPE) and services truly universal by Networking, STC now has a fully “With the pressing realities of agile creating common specifications for scalable, flexible resource to sell to premise-based devices, allowing them ‘fintech’ disruptors, digital consumer subscribers and customers on-demand demands, and complex regulatory to work in different NSP environments as their IT requirements evolve and and with different network function hurdles, the question of how retail change. Contrail Networking enables software providers. Streamline the on banks can compete and capture the full automation, better scalability, boarding process for virtual network revenue opportunity at hand has security and flexibility for STC’s NFV- functions (VNFs) by introducing come to the fore,” says Mike Weston, based cloud computing services. common guidelines and templates Vice President, Cisco Middle East. Juniper’s Contrail Networking SDN that will mature the VNF provider “As the largest segment of financial ecosystem and make VNFs more plug solution automates and orchestrates services, retail banks play a critical role and play. Develop standardized APIs the creation of highly scalable virtual in any economy. The ability for digital that will enable SDN architectures networks. It interoperates with an technologies to create and drive new from different NSPs to interoperate OpenStack cloud orchestration revenue opportunities, combined with with each other, making deployment platform, enabling the agile creation the ability to lower operational costs of virtualized network services and and dynamic scaling of service through digitized business processes, functions faster and easier. “We’re instances with high availability and brings tremendous opportunity. But, committed to defining a framework reliability. “At STC, we have a ‘customer- too many banks are moving slowly

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SAMENA TRENDS JUNE-JULY 2016 or not at all. By waiting to digitize mission-critical initiatives due to these cooperation, this time with the goal of their businesses, or by delaying new concerns. Sixty percent admitted their facilitating the lives of visually-disabled technology initiatives, banks risk not organizations are reluctant to innovate individuals. “My Dream Companion”, only missing out on the potential Value in areas such as digital products and a mobile application and service at Stake, but are actually at risk for services because of the perceived developed by Turkcell and the Young being put out of business altogether.” risks. Specific digital initiatives delayed Guru Academy (YGA), will now include The new research, “Roadmap to Digital potentially include omnichannel a beacon-powered transportation Value in the Retail Banking Industry”, capabilities, wealth management feature, live-trialed for the first time in outlines the Digital Value at Stake for and asset transfers, mobile banking Gaziantep. The feature allows visually- retail banking – as well as a digital and mobile payment capabilities, disabled individuals to use the buses roadmap for success. The study reveals self-service and virtualized delivery on the city’s public transportation digital use cases that drive the fastest models. Cisco’s economic analysis system without requiring outside help. value and return on investment for estimates that by not digitizing more The traveler can access route and bus retail banks. With the right technology fully, incumbent retail banks missed stop information on their smartphone, investments such as analytics, mobility, out on $144 billion globally from 2011 and receive alerts when their bus video, and virtualized delivery models to 2015. Bottom line – cybersecurity reaches the bus stop, and when it – and with a plan for navigating concerns do not need to be a hindrance approaches their final destination. security risks – retail banks can create to digital innovation. Retail banks can The system also allows the driver to a blueprint for capturing their share of transform cybersecurity from a liability receive a warning message if there is a the hundreds of billions in Digital Value into an asset that supports customer visually-disabled individual waiting to at Stake. Retail Banks Must Accelerate trust, innovation, and growth. All of board the bus at any specific bus stop. Digitization or Risk Extinction: these digital solutions depend on a The rare application of the beacon “Fintech” startups are disrupting retail robust cybersecurity foundation. “By technology in an outside setting banks by unbundling their products assessing, adopting and combining ensures greater precision. The feature and services. By doing this, they’re the right digital use cases for their was tested in a live trial attended by able to seize a share of the banks’ most needs, and doing it securely, retail Fatma Sahin, the Mayor of Gaziantep, profitable business while avoiding the banks will capture their share of the Kaan Terzioglu, the CEO of Turkcell, barriers to entry that naturally come Value at Stake and be in a position to members of Gaziantep’s visually- with being a full-service bank. These operate more agilely and compete. disabled community and journalists. start-ups are digitizing their offerings. By innovating and driving relevant Turkcell and the Gaziantep Municipality Retail banks that fail to drive their new products and experiences to aim to expand the service to the entire digital transformation may be put out the market quickly, they can be the city in the coming months, following of business completely. According to new disruptors,” Weston concludes. the pilot implementation. My Dream a 2015 study by the Global Center for To calculate Digital Value at Stake, Companion’s transportation feature Digital Business Transformation (DBT Cisco conducted the industry’s most is the latest addition to the award- Center), an IMD Business School and comprehensive economic analysis. winning mobile application. Other Cisco initiative, 4 out of the top 10 Spanning across the private sector, features include shopping center retail banks will be displaced by digital it includes 16 industries – financial navigation and audio-description of disruption in the next three years. services being one. The analysis is movies, which was also offered for However, only 27 percent are taking rooted in customer engagements and the first time globally on a mobile a proactive approach by disrupting evaluation of 350 private sector digital app through My Dream Companion. their own businesses. Cisco’s research use cases. Thirty of those are focused In addition to hosting the first identified key digital use cases in the on financial services. Read the full implementation of the transport retail banking industry that drive more report, including the key digital use feature, Gaziantep also became the than 90 percent of the $405.3 billion cases recommended for retail banks. second stop after Istanbul for the opportunity. These digital solutions include video-based advisors, workforce transformation, mobile payments, virtual tellers, information- based consulting, white-label services, connected ads, marketing, and more. Cybersecurity Weakness is Slowing Digital Innovation in Retail Banking: Despite the tremendous opportunity Turkey’s Smart City and competitive pressures that come Gaziantep and Turkcell with digital transformation, retail banks are still slow to digitize. A launch beacon-powered recent Cisco study, “Cybersecurity as transportation feature a Growth Advantage” surveyed 1,014 for the visually disabled senior finance and line-of-business Turkcell and the Municipality of executives globally and found that 71 expansion of the shopping center Gaziantep, which have previously percent agreed that cybersecurity risks navigation feature, also powered by joined forces to transform the city of and threats hinder digital innovation in beacon technology. Speaking at the Gaziantep into a “smart city”, have their organizations. Another 39 percent press conference held in Gaziantep, announced a new phase in their of respondents said they’ve halted Fatma Sahin, the Mayor of Gaziantep,

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SAMENA TRENDS JUNE-JULY 2016 said: “We have a long-standing its infrastructure and services across cooperation with Turkcell in employing its portfolios of data, communications technology to efficiently use our city’s and video, beginning with mobile resources and to facilitate the lives of services. The leap is meant to efficiently our citizens. Now we are expanding make telecom resources and services this cooperation into the field of more fluid, automatic and open for making our city equally accessible to Etisalat deploys its first innovation. “It’s a different world that the disabled individuals as the non- live telecom cloud we’ve embarked into,” said Esmaeel disabled. Our goal is to provide the Alhammadi, senior vice president of UAE-based Etisalat, a leading telecom means for the disabled inhabitants Network Development in Etisalat and group in the region, has activated of our city to fully and independently Sahaab program lead. “We thought its first live Network Function participate in all aspects of life. The it was a technological step, requiring Virtualization telecom cloud in Abu transportation feature of My Dream a mere upgrade of the network and Dhabi. The telco cloud platform will Companion, launched for the first services. But it turns out to be more help create a one-stop shop app/ time in Gaziantep, as well as the other than that. It’s a shift in mindsets and online portal with a fast, intuitive opportunities that this app unlocks how things get done. It’s not every and pleasing user experiences and is major steps in achieving this goal year that we have technologies like interfaces. It will also provide service for the visually-disabled.” Turkcell’s these that have the potential of capabilities, e.g. self configuration, self CEO Kaan Terzioglu emphasized the adapting to customer wishes faster optimization and self healing functions. role that mobile technologies play and opening new avenues for future in ensuring equal participation of all innovations and collaborations.” segments of society in all aspects of Etisalat has launched a corporate- life. “We serve the city of Gaziantep wide program in 2016 to “cloudify with our technology in a number the network”, dubbed Sahaab—an of ways from our fiber backbone to Arabic word that translates to ‘cloud’. machine-to-machine communication. The program aims to harmonize My Dream Companion and more between the hardware-centric telecom specifically, the launching of the services and the software-centric transportation feature in Gaziantep, cloud services across the corporation. builds on this important foundation” “Etisalat is demonstrating real vision said Terzioglu. “Our work does not stop and innovation by the speed at here: With our partners, we will find The platform brings faster time-to- which they are embracing network new ways of serving our customers market in product development, rapid function virtualization,” said Anand with life-enhancing technologies prototyping of services, collaborations Krishnan, EVP, Cloud, Canonical. “We which will eventually include artificial including rich/open ecosystems, are delighted that Etisalat has selected intelligence, augmented reality and explore new innovations with lower Canonical OpenStack as their NFV virtual reality. Joining forces with risks and cloudifying consumer and infrastructure and Juju as their generic partners like Gaziantep Municipality business connectivity. Customers VNF manager. As the global leader and the Young Guru Academy helps will also be empowered through the in OpenStack deployments, we will us design solutions that speak to automation of services and operations work closely with Etisalat to ensure real needs and function well in real with automatic capacity expansion its customers can benefit from the settings.” “My Dream Companion” and reduction. The NFV-based telco virtualization and cloudification of is a constantly-evolving service and infrastructure has been built with network functions that this will deliver.” application designed by Turkcell Quanta servers, Arista switches and and the Young Guru Academy. It has Canonical Ubuntu OpenStack , a received the GSMA’s Global Mobile multi-vendor combination integrated Award – or “Glomos’ – twice, in 2014 for production. Projects, proof of and 2016, in the category of “best concepts and various experiments and use of mobile for accessibility and tests to transform the corporation for inclusion”. It is available for free the cloud era have started as early to visually disabled customers of as 2013, with the telecom industry’s Eutelsat looking to sell all mobile operators. “My Dream fostering and adoption of Network Companion” serves all mobile phone Function Virtualization (NFV) and stake in Spain’s Hispasat users with features such as audio Software-Defined Networking (SDN), Eutelsat announced that it has initiated recordings of daily newspapers, two enabling technologies commonly the process of divesting its 33.69 percent audio books, and location-based associated with smart cities, IoT and stake in Spanish satellite operator information; and provides further the upcoming 5G future. Based on Hispasat by exercising the put option services to smartphone users through the open-source OpenStack cloud granted in 2008 by Hispasat’s majority “My Dream Companion” app which platform used by the likes of NASA, shareholder, the Abertis Group. Under includes transportation, shopping CERN and leading web companies, the terms of the put option agreement, center navigation and audio- activations are currently in progress the value of the Hispasat stake will be description. in more sites across the UAE. On top determined by an independent expert, of this telco cloud, the Middle Eastern said Eutelsat in a statement. However, telecom operator targets to virtualize Abertis subsequently replied that the

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SAMENA TRENDS JUNE-JULY 2016 process initiated by Eutelsat is not the best network in Singapore. With valid and that the company doesn’t the rise of digital content, we are recognize the put option under which seeing a rapid shift in the way media Abertis would have to buy the stake. content is being consumed, especially “The compromise to remain in the by millennials. By sharing the same company, at least until the end of July vision to bring the most compelling 2017, assumed by the shareholders PCCW and Singtel launch content to viewers anytime, anywhere via the Shareholders Agreement, premium Viu on any mobile device, Viu and Singtel are strategically aligned to focus conditions the efficacy of the put,” PCCW Media’s OTT video service, Viu, said Abertis in a statement to Spain’s on adapting to meet the needs of has launched premium subscription today’s viewers,” said Ms. Janice Lee, markets regulator CNMV. Construction service in Singapore with telco partner, Managing Director of PCCW Media. Company Abertis, which controls 57 Singtel, the largest telecommunications “86% of Singapore citizens regularly percent of Hispasat, added that, in any company in Singapore, offering stream or download video content, event, the execution of the transaction viewers unlimited downloads of their of which 60% are watching dramas+. requires the approval of Spain’s Council favorite content. Hailed as Southeast These numbers show the immense of Ministers. Asia’s first unlimited downloads* OTT potential in the OTT video streaming video service, Viu leverages on the market where we are spearheading quality network of Singtel to provide change in the way consumers engage Viu premium subscribers with priority with and consume digital content,” viewing of a vast library of content, added Ms. Lee. To assure viewers of such as the current Korean hit drama, a stable viewing experience, Viu has Uncontrollably Fond, which premiered forged strategic telco partnerships Microsoft to offer GE in- on July 6 and is aired with English with networks such as CSL in Hong subtitle right after Korean telecast Kong, Singtel in Singapore, Telekom dustrial internet capabili- for Viu premium subscribers. The fast Malaysia Berhad, Maxis, Digi and U ties turnaround with subtitles, first-ever in Mobile in Malaysia as well as Telkom the region, is also available on Viu at Indonesia in Indonesia. Ms. Lee said, GE and Microsoft announced a the same time frame in Hong Kong, “The strategic partnerships we have partnership that will make GE’s Predix Malaysia and Indonesia. Viu premium built with top broadcasters and leading platform for the Industrial Internet subscribers also get to watch the latest telcos all over Asia to deliver the best available on the Microsoft Azure cloud. Korean dramas and variety shows from Asian content at the fastest speeds The agreement, which marks the first the Big 4 Korean broadcasters and on quality networks has enabled Viu’s step in a broad strategic collaboration Japanese dramas as fast as 8 hours growing success. The recent airing of between the two companies, will allow after telecast in Korea, enjoy 1080p HD Descendants of the Sun has shown us customers to capture intelligence quality and exclusive content window that what consumers want today is fast, from their industrial assets and take of the latest content with very limited convenient access to digital content, advantage of Microsoft’s enterprise ads. Meanwhile, Viu freemium users and Viu was able to cater to that mass cloud applications. Specifically, the will continue to have access to Viu’s demand by being the first platform Azure cloud will provide Predix huge catalogue of Asian content for with such a large library of authorized customers with scalable infrastructure, free. All users can also enjoy Viu’s user- Korean content where fans could catch data sovereignty, hybrid capabilities, friendly functions such as multi-screen it in Singapore.” Viu has built a relevant and advanced developer and data access, download-to-stream capability and personalized experience with services. In addition, GE and Microsoft and multi-device synchronization exclusive unique innovative content plan to integrate Predix with Azure when streaming, providing users with based on the a freemium model and its IoT Suite and Cortana Intelligence a truly seamless viewing experience achievement is duly recognized in the Suite along with Microsoft business on-the-go. Initially launched as a industry, garnering the Gold Award for applications, such as Office 365, freemium OTT service last October, Best Mobile App at the HKICT Awards Dynamics 365 and Power BI, in Viu has seen tremendous growth in 2016, Telecom Asia’s 19th Annual order to connect industrial data with Hong Kong, Singapore, Malaysia, Award for Best OTT Video Service this year, and most recently named Asia business processes and analytics. India and Indonesia. In Hong Kong, Pacific Telco Digital Service Provider “Connecting industrial machines to Viu app downloads already surpassed of the Year by industry research group the internet through the cloud is a 1.6 million while in Singapore, it has recorded over 500,000 downloads in Frost & Sullivan at its Asia Pacific ICT huge step toward simplifying business the short span of four months following Awards 2016. “We will continue to processes and reimagining how work its January launch**. Meanwhile, Viu is leverage our research to gain insights gets done,” said Jeff Immelt, CEO of well-supported by a host of advertisers to our viewers’ preference so that our GE. “GE is helping its customers extract in the region. More importantly, users content and features are uniquely value from the vast quantities of data are actively engaged, averaging 1.82 tailored to their needs thus enabling coming out of those machines and is hours^ of viewing time daily on the continued relevance to our viewers,” building an ecosystem of industry- mobile app. “This strategic tie-up added Ms. Lee. leading partners like Microsoft that between Viu and Singtel is a win-win will allow the Industrial Internet to for consumers as they can enjoy the thrive on a global scale.” best Asian entertainment content at the most competitive offering across

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PCCW supports univer- sity research to promote innovation and tech- nology development in Hong Kong PCCW has launched a program to cooperate with local universities in ICT research projects as part of its efforts to promote innovation and technology development in Hong Kong. The landscape of the ICT sector has been rapidly changing with technology advancement. As a major player in of the PCCW Group. The independent base station in Qalhat, in the Sharqi- the ICT sector in Hong Kong, PCCW research result developed by PolyU yah South governorate, the 20,000km has over the years invested heavily in may also be useful to other network cable is being developed as a multi- product and service innovation and providers or industry practitioners, regional data superhighway that will infrastructure to be well prepared to thereby benefitting the industry as a substantially improve data transmis- serve our customers as technology whole. PCCW’s cooperation with other sion across affected regions. The SEA- continues to evolve. Nowadays, local universities in research projects ME-WE 5 submarine cable has been working together across boundaries will be announced in due course. Ms. designed with the latest upgradable is key to seizing the opportunities and Susanna Hui, Group Chief Financial 100Gbps technology, enabling an ini- addressing the challenges facing us in Officer and an Executive Director of tial system capacity of 24Tbps per sec- this interconnected world. PCCW aims PCCW, said, “PCCW’s collaboration ond on three fiber pairs. Jim Maxwell, to encourage cross-sector cooperation with PolyU signifies the first step of a Ooredoo’s chief legal, regulatory and through a series of research projects, campaign to encourage local academic wholesale officer, said the SEA ME WE bringing business and academic research and drive the development of 5 is a step towards realizing the future insights together to provide new innovation and technology in Hong of international cable systems in terms momentum for overall industry Kong. We believe that this initiative will of capacity, diversity and network ac- development. These research projects help PCCW and the industry to respond cess for valued customers. The system will cover different aspects of the to the dynamic operating environment will link East Asia, the Middle East, Af- ICT industry, including enhancement and better meet the fast-evolving rica and Europe, providing the lowest and future advancement of wireless needs of customers.” Ir Professor Ping- latency and highest data rates of any networks, optic fiber, network security kong Alexander Wai, Vice President fiber-optic system. Construction of and other information technologies. (Research Development) of PolyU, the intercontinental undersea cable The research results will be published said, “We are pleased to receive the began in September 2014 and is due for industry application and/or further support of PCCW which is a leading to be completed by the end of this research and development purposes. ICT service provider in Hong Kong. year. The project is being developed PCCW has kicked off the program Having the backing of the business through a collaboration of 19 leading with a research project focusing on sector is crucial especially for such a global players from around the world. video quality in different wireless research project which requires real transmission environments, which is network data and industry insights to a collaboration between the PCCW produce practical and useful research Group and the Department of Electronic result.” and Information Engineering (EIE), The Hong Kong Polytechnic University (PolyU). In addition to financial support, PCCW will provide PolyU with Batelco to launch super- professional advice and assistance, laboratory testing environment, fast 4G+ In Bahrain network statistics and mobile network Ooredoo Oman com- Bahrain-based telecom group Batelco data of the telecom business of the has announced plans for the rollout of PCCW Group. The project is expected pletes landing of SEA- superfast 4G+ for its customers, the to be finished in 15 months. The ME-WE 5 Cable first telecom in the Kingdom to start research result of the PolyU project is rolling out the service. LTE Advanced is Ooredoo Oman has concluded the expected to facilitate PCCW’s future the latest mobile technology launched landing of the Southeast-Middle East- resource planning for network quality to support the massive increase in Western Europe 5 (SEA-ME-WE 5) sub- enhancement of the telecom business mobile data demand and additionally marine cable system. Installed at its it will deliver super-fast data speeds.

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4G+ is about more than just speed, be interconnected with other regional rivals such as Salesforce.com Inc. as the solution will enable a smooth- submarine cables giving access to on- “LinkedIn and Microsoft really share a er service while on the go, thanks to ward connectivity to Europe and Asia mission” of helping people work more the enhanced reliability of the con- and major regional landing stations. efficiently, said Microsoft CEO Nadella nectivity. Batelco Bahrain CEO Muna Batelco CEO Muna Al Hashemi com- in a conference call with analysts. Al Hashemi said that 4G+ is the next mented: ‘Batelco is investing in the “There is no better way to realize that major step in the evolution of Batelco’s new system and also highly reliable mission than to connect the world’s mobile network; the network roll-out equipment to operate and maintain professionals.” The $196-per-share has just started and the network will it, as part of our endeavors in devel- price tag represented a premium of be growing over the coming months. oping world class networking services almost 50 percent over LinkedIn’s stock “We are very pleased to continue with to support the Kingdom’s efforts and market value as of Friday, but was still our successful LTE enhancements by promote Bahrain as a hub for innova- well below the social media company’s being first to roll out LTE Advanced. tive communications services.’ all-time high of $270. Analysts said the The new network technology equates price was rich, and Microsoft’s stock to better coverage, greater stability closed down 2.7 percent at $50.14. and faster performance. Our 4G+ ser- Still, there was cautious optimism that vice will provide the ultimate mobile this could be one of the relatively few experience with amazing download tech mega-mergers that works out speeds and it promises to significantly well. “It’s a massive growth play for boost customer experience,” she add- Microsoft,” said Forrester analyst Ted ed. Batelco CMO Mike Stanford added Schadler. The deal may also help spur that this is the perfect solution to sat- Microsoft to buy LinkedIn further mergers and acquisitions in the isfy the requirements of customers us- for $26.2 billion; LinkedIn tech sector, where a broad correction ing bandwidth-intensive applications is bringing down the prices of public noting that it will transform their digital to keep the identity and private companies even as a lifestyles tremendously. “The 4G+ net- Microsoft Corp will buy LinkedIn Corp handful of major players sit on large work also serves to enhance Bahrain’s cash piles. For LinkedIn, founded in for $26.2 billion in its biggest-ever global position in terms of providing 2002 and launched the following deal, a bold stroke by Microsoft CEO advanced telecommunications servic- year by Reid Hoffman, one of Silicon Satya Nadella in his efforts to make the es for consumers and businesses. Our Valley’s most-visible investors and venerable software company a major provisioning is the result of our ongo- entrepreneurs, the sale marks the end ing commitment and investment in force in next-generation computing. of a classic startup run: funding from the Kingdom’s infrastructure,” Stanford By connecting widely used software top-tier venture capitalists, a long said. “Our technology partner Ericsson like Microsoft Word and PowerPoint period of building the company and with their experience in implementing with LinkedIn’s network of 433 million developing a revenue base, then a cutting edge communications solu- professionals, the combination could big initial public offering, followed by tions have been invaluable attributes enable Microsoft to add a suite of a roller-coaster stock price and finally in supporting Batelco`s aspiration to sales, marketing and recruiting services an acquisition. The company makes stay in the forefront of the telecoms to its core business products and most of its $3 billion in annual revenue industry in Bahrain,” he concluded. potentially challenge cloud software from job hunters and recruiters who

Batelco, GCCIA launch BGN cable system Bahrain Telecommunications Com- pany (Batelco) has announced the launch of Batelco Gulf Network (BGN), in a venture with the Gulf Coopera- tion Council Interconnection Author- ity (GCCIA). The BGN terrestrial fibre- optic cable system spans 1,400km and runs over the GCCIA electricity power grid, offering high bandwidth and ca- pacity connectivity to all Gulf Coop- eration Council (GCC) countries, with Batelco given full responsibility for managing the network. The cable can

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SAMENA TRENDS JUNE-JULY 2016 pay a monthly fee to post resumes telecommunications company in the improves customer satisfaction. and connect with people on what’s Middle East to be awarded with ISO Batelco has achieved this by combining often known as the social network for 9001:2015 certification from the BSI the process approach with risk-based business. The company’s growth has Group (British Standards Institution). thinking, and employing the Plan- slowed recently and investors have Batelco successfully completed the Do-Check-Act cycle at all levels,” she become far more cautious on the high certification audit to the newly revised added. Commenting on the occasion valuations of many tech companies ISO 9001:2015 Standard on March 30 Mr. Kotze said that ISO 9001 outlines - both of which likely figured into surpassing the internationally agreed ways to achieve, as well as benchmark LinkedIn’s decision to sell, analysts 3-year transition period. In addition consistent performance and service, said. For Microsoft, the LinkedIn deal to being the first telecom company by putting in place processes that is a chance to reverse a terrible track in the Middle East to receive the allow companies to improve the record with acquisitions, including certification, Batelco has the honor way they operate at all levels and paying $9.4 billion for phone maker of being the first company in Bahrain place the needs of its customers as a Nokia in 2014 and $6.3 billion for ad to achieve this standard. The British priority. “This certification is evidence business aQuantive in 2007. In 2012, it Standards Institution which shaped of Batelco’s continuous effort and wrote down its aQuantive acquisition the original Quality Management commitment to best practices. I would by $6.2 billion, and its cumulative write Standard that became ISO 9001 has like to congratulate the entire project downs for Nokia total $8.55 billion. worked with Batelco since 1996, team, senior management and all staff It also paid $1.2 billion for business helping the organization to embed members who were involved in this network Yammer in 2012 and $8.5 the standard to cover all business units project.” Formed in 1901, BSI was the billion for video-calling tool Skype in of Batelco and to achieve sustainable world’s first National Standards Body 2011. The LinkedIn acquisition could performance improvements. ISO and, over 100 years later is globally help Microsoft play to its strengths 9001 was originally written with the recognized as the champion of best in analytics, machine learning and customer in mind and that remains practice. BSI is also responsible for artificial intelligence, Nadella said the priority for ISO 9001:2015; this originating many of the world’s on the investor call. LinkedIn and is in line with the strategy adopted most commonly used management Microsoft both have enormous by Batelco which addressed each systems standards and currently has amount of data about their customers layer of the organization towards 37,384 standards in their portfolio. that can potentially be mined to offer Superior Customer Centricity. The ISO BSI works with over 80,000 clients in automated suggestions and other 9001:2015 certificate was presented to 182 countries worldwide to help them features that make business processes Batelco Bahrain Chief Executive Eng. adopt and cultivate the habits of best quicker and simpler. Microsoft Muna Al Hashemi by BSI Middle East practice. noted that the deal brings in a big and Africa Regional Managing Director new customer base: after adding in Theuns Kotze at a ceremony held at LinkedIn, the total potential market Batelco’s Headquarters in Hamala on size of Microsoft’s productivity and June 9. A number of Batelco executives business-process segment sits at $315 and officials who were instrumental in billion, up from $200 billion without completing the ISO process were in LinkedIn. Microsoft Chief Financial attendance. Mrs. Al Hashemi said that Officer Amy Hood said the deal Batelco was really delighted to be the Microsoft to continue would be financed mainly with debt, first telecommunications company in a way for the cash-rich company to the Middle East and the first company building the ecosystem reduce its tax bill. The company has in Bahrain to achieve certification to ISO Back in March, Microsoft had $105 billion in cash and other liquid 9001:2015. “I extend my appreciation announced that Windows 10 has assets. Moody’s said it was reviewing to all our staff who worked so diligently surpassed 300 million active devices Microsoft’s rare AAA debt rating for a to reach this notable achievement since its launch in July 2015 and possible downgrade. LinkedIn CEO Jeff which makes us very proud.” The now the company claims it is the Weiner will remain with the company, ISO 9001 Quality Management most successful operating system which will be operated as a separate System, the world’s most popular till date. Despite the initial success, unit and retain its name. management system standard, is used Microsoft is moving away from by over one million organizations excessive dependence on Windows around the world. Batelco General to new growth areas like artificial Manager HR & Corporate Services intelligence and conversational Suhaila Alnowakhda added that the bots. At the Build Tour event in recognized Quality Management Pune, Microsoft announced how the System helps organizations to run company is realigning its strategies more efficiently and profitably by on three pillars—cognitive computing, Batelco first telco in the providing a framework for consistent augmented reality and conversational performance, reliable service and bots. Microsoft is now relying on region to achieve the long-term continuous improvement. platforms like cloud computing and new ISO 9001:2015 “Quality has always been at the heart Cortana intelligence suite for its Batelco, Bahrain’s leading digital of Batelco, and this certification is next growth verticals. At the Build communications provider has another successful step towards an Tour, the consensus was strongly in been announced as the first efficient Quality Management System favor of Windows 10. According to that improves efficiency and ultimately NetMarketShare, Windows 10 has

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SAMENA TRENDS JUNE-JULY 2016 gained lately to reach 17% of desktop APIs to developers who are building platform while Windows 7 is still new conversational bots for superior running on over 48% desktop devices. shopping experience with multilingual Technically, that might seem a small support. Microsoft’s Bhandari said, number but that market share has “The Company wants to develop a come in a matter of just 10 months. platform rather than just a product.” Microsoft says Windows 10 users Microsoft wants to do what it does Omantel confirms land- have spent over 75 billion hours best—build ecosystem. Now it wants ing of submarine cable using the operating system since the developers to cash in just like they did launch and there have been over 5 when Windows 95 was announced. system billion store visits. For Microsoft, the Oman Telecommunications Company immediate priority is to engage more (Omantel) celebrated the milestone and more developers and enrich the landing of the Asia Africa Europe-1 whole gamut of Universal Windows (AAE-1) submarine cable system in Platform. At Build 2016, Microsoft Oman at a ceremony on Monday CEO Satya Nadella had said, “Our in the Al Bustan area of Muscat. The goal is to empower every developer third longest submarine cable in the in this world.” At the recently held Orange Business Ser- world spanning approximately 25,000 Build Tour in Pune, Microsoft India GM kilometers, the AAE-1 is one of the for Developer Experience, Narendra vices wins Henkel hybrid first unique cable systems to connect Bhandari said, “Our goal is to provide 18 countries across Asia, Africa and best tools to developers and help them network, security deal Europe, all via Oman. The cable will build great apps for cross-platform Orange’s enterprise arm will supply a provide an alternative and low latency utilization.” The difference here is hybrid network covering 355 locations short route between the east and the cross-platform and not Windows. In to consumer and industrial goods west while covering 50 per cent of the the last two years under CEO Satya manufacturer Henkel after winning world’s population. Commenting on Nadella, Microsoft has opened its a five-year deal. The contract sees the historic achievement for the AAE- platform to more audience than ever. Orange Business Services provide a 1 cable landing, Omantel CEO Talal Al At Build Tour, the company showed range of services to around 50,000 staff Mamari said, “Today we are actualizing how developers can build apps using at the owner of the Persil, Schwarzkopf yet another embodiment of our new Visual Studio and run Xamarin test and Loctite brands. OBS will combine strategy Omantel 3.0 witnessing to simulate the code on Android, multiple technologies including the milestone landing of the AAE-1 Windows and iOS, all at one time. With Business VPN Internet and a managed cable in Oman. As one of the longest over 600 developers in attendance, security solution that enables Henkel submarine cables in the world, this Microsoft senior program manager to apply real-time controls to respond achievement for Omantel and the Jeffrey Burttoft said, “We will provide to emerging threats. Financial details Sultanate is undoubtedly making any of the tools developers need to a of the contract, which covers North us feel proud.” “The AAE-1 cable build scalable platform. Our effort will and South America, Central and represents another step in enhancing be to go out to developers wherever Eastern Europe, Middle East and our position as a truly international they are and bring them onboard Africa, were not disclosed. Uwe Wirtz, telecommunications player. Already with Universal WindowsPlatform.” Head of Service Delivery IT, Integrated over half of the international Microsoft, in 2016, wants consumers Business Solutions at Henkel, said: submarine cables that connect to the and developers to see Windows, Office “Seamless global communications with Arabian Gulf are connected through and Azure as intelligent platforms that outstanding security capabilities are Omantel here in Oman. In the coming work together. Microsoft, which lags vital for us.” Anne-Sophie Lotgering, years, further extending our reach Amazon’s AWS, in terms of revenue Senior Vice President, Europe, Russia internationally is a key focus for announced that over 85% of Fortune and CIS at Orange Business Services, Omantel, and a central goal of our 3.0 500 companies are using its cloud added: “This new partnership between transformation strategy,” he added. services. Narendra Bhandari said our companies will enable Henkel to Omantel’s extensive international over 50% enterprises in India rely network will provide additional on Microsoft Cloud for deploying grow their business on a global scale with confidence in our managed protection and diversity to the AAE-1 their products or services. He further cable system through other systems adds, “With three new data centers security services, while meeting their objective of reducing overall IT and like EPEG, which is another major now operating out of India, we are high-capacity system consisting of poised to reach more startups than telecommunications costs.” OBS saw revenues grow over two percent in redundant undersea cables to Iran ever before.” Microsoft is gaining and onwards terrestrial cable all the ground on cloud platform but its the first three months of the year thanks to an increase in sales of IT way via Azerbaijan and Russia to future is totally dependent on success Frankfurt avoiding existing heavily of its ‘Conversation as a platform’ bot and integration services. Last month, OBS expanded its presence in Lagos congested cable systems and crowded framework. It differs from other AI bottlenecks on the route between Asia as businesses in Nigeria, notably in majors by creating a platform rather and Europe. The cable will provide the financial sector, show high growth than a product. Microsoft wants additional capacity and diversity for rates. developers to again use its framework telecommunications capabilities in to build their own conversational bots. Oman. “Throughout history Oman has The company already has given out always been a gateway to the region,

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SAMENA TRENDS JUNE-JULY 2016 facilitating trade and commerce from East to West and West to East. At Omantel, we aim to continue our nation’s proud tradition, this time facilitating the transfer of information, in this new digital age,” continued Talal Al Mamari. Recently, Omantel landed the AAE-1 cable in the southern French city of Marseille, becoming the first GCC operator to land a submarine cable in Europe. Earlier this year the Company also joined in a consortium with several East African telecommunications providers to lay the Gulf to Africa (G2A) undersea fiber optic cable. The move represented the first phase of Omantel’s planned expansion into East Africa. In the international wholesale arena, Facebook as well as Turkish public and Turkey-based companies to benefit Omantel is considered one of the most private sectors. Turkcell’s new data from these capabilities using the state- prominent and competitive wholesale center is spread over a total area of of-the-art technology at the highest telecommunication providers in the 33,000 m2. The active area – known as global standards.” said Kaan Terzioglu, Middle East. In addition, it is one of the “white space” - consists of 20 rooms CEO of Turkcell. “With our technology the leading companies in the field of 500 m2 each. The building has 33 leadership in Turkey and international of undersea cable networks and a thousand meters of fiber connections. collaborations, we will establish a key participant in several submarine new Silk Road of information on fiber, cables, complemented by direct The infrastructure is supported by a and contribute to raising the profile terrestrial links, which link Asia, Europe 30-megawatt energy capacity and of our country as a regional hub of and America passing through Oman 25 generators of 2500 KVA each. information.” With the new data center to meet the growing international Security is maintained with retina- in Gebze, Turkcell triples its total data capacity requirements of customers scanning technology, 146 cameras center space, reaching 52000 m2. The locally and internationally, thereby and 6400 control sensors. Designed as company also announced plans to sustaining the Company’s leading a data center from the onset, Turkcell’s open two new data centers in Ankara position among its competitors. building in Gebze has a Tier III design and Izmir, the second and the third Omantel’s wholesale strategy is to be certificate as well as a Leed Gold largest cities of Turkey, in the coming a carrier of carriers and to be the link certificate - a mark of sustainability and 18 months. Upon completion of these between the East and the West for the energy efficiency. With 312 earthquake two data centers, Turkcell will have region and beyond. isolation units, the datacenter can withstand earthquakes of magnitudes 107,000 m2 of data center area. of up to 9.0 on the Richter scale. The walls and doors of the building are fire-resistant. As the leading provider of fiber services in Turkey, Turkcell cooperates with international partners like Deutche Telekom, Telecom Italia, Telekom Austria Group, KPN and Tata Turkcell opens Turkey’s Communications. Turkcell network Zain wins five prizes at largest data center supports more than 2 Tbps bandwidth in its international connections. In Global Telecoms Business Turkcell unveiled Turkey’s largest addition to the data traffic of Turkey, data center in Gebze, near Istanbul. Innovation Awards 50% of the data traffic to Georgia, Iraq With its new building, Turkcell aims Zain Group, a leading mobile telecom and Iran goes through the Turkcell to transform Istanbul into a regional innovator in eight markets across the network. In addition to serving its hub of data, and serve global internet companies such as Google and local customers, Turkcell now aims to expand its international collaborations into providing cloud services for global content companies and act as a node for international data traffic. As the global landscape of industrial production shifts to an ICT-focused mode with Industry 4.0, storing data safely and securely , and attaining the ability to analyze it become essential. With this new data center, we are providing the infrastructure for Mr. Scott Gegenheimer, CEO, Zain Group Mr. Kaan Terzioğlu, CEO, Turkcell

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Middle East and Africa, announces the special mention in two categories, the unprecedented award of five prizes at first being in recognition of its strategy the prestigious 2016 Global Telecoms to penetrate the digital world having Business (GTB) Innovation Awards held developed and introduced the touch in London last week. Zain Group Chief app on Apple watch. Created by FOO, Strategy and Business Development a mobile solutions entity that Zain Officer (CSBDO), Emre Gurkan was on recently made a strategic stake in, Ooredoo launches 1-Gbps hand to accept several of the awards, the distinctive app allows customers fiber broadband in Qatar having earlier being a key-note to check their line balance, credit and speaker at GTB Innovation Summit validity, in addition to bundles (voice, Ooredoo Qatar has launched a where he outlined Zain Group’s SMS and/or data) consumption, 1-Gbps fiber broadband offering and innovation strategy to a distinguished on-the-go and in real-time. The a new premier WiFi service designed audience of telecom executives from application is one of only a few of its to provide better coverage for across the globe. Zain’s first prize of kind in the region, and it has received customers living in large homes. The the night was for Customer Service one of the highest rankings for self- telco announced the arrival of 1-Gbps Innovation and Offerings based on care apps on Android. The application fiber at the weekend, although it has Disruptive Technological Platforms due builds on touch’s strong app not disclosed how widely available to its cooperation with UBER, which it positioning (over 850,000 downloads). the service is. “We are one of the announced in September 2015 and is The second award for the Lebanon first operators in the world to launch based on a partnership to offer Zain based operator saw Touch recognized 1-Gbps fiber home services and the customers discounted and preferential for introducing an augmented reality very first in Qatar,” said company services when using the UBER platform feature to engage customers using CEO Waleed Al Sayed, in a statement. locally and abroad. Ovum identified a unique popular mobile app, again “Ooredoo believes in future-proofing that for Zain, UBER’s continual growth created by FOO Solutions that saw our network, and we continue to across the region is a bonus having over 800,000 downloads during strive to bring our country the latest the potential to create incremental the holiday seasons. Having been technology first,” he said. The 1-Gbps revenues, attract new customers, and customized to reflect the festive service costs 1,900 riyals (€469) per increase customer loyalty, all factors period, various themed animations month, including a landline service which captivated the judging panel of were triggered by snapping the touch and access to Ooredoo TV. However, GTB. Thanking the judging panel on logo through the camera interface of customers upgrading from an existing the numerous wins at this year’s GTB the mobile app. Customers shared fiber package will be given the first Innovation Awards, Zain Group CEO, these animations along with selfies and two months at no extra charge. By Scott Gegenheimer said, “The breadth photos creating creative augmented way of comparison, Ooredoo’s 300- and depth of the prizes we have reality art. Customers also mentioned Mbps service, also including landline won this year across several of our #touchgreetings in their posts and and TV, is priced at QAR700 per operations signifies that we are not won valuable prizes Emre Gurkan, month, while its entry-level 10-Mbps just innovating for innovation’s sake, Zain Group CSBDO concluded, “The offer costs QAR250 (€62) per month. but that the services and initiatives we complexity of the telecommunications There are other packages in between. are developing are really impacting sector is ever changing and in order Alongside the 1-Gbps launch, people’s lives positively. I would like to stay abreast of it and remain Oooredoo presented its new Platinum to thank all Zain staff members for successful, it is necessary to review HomeZone product designed, in its their dedication and focus, which and adapt our innovation strategy on own words, to offer “full WiFi Internet allows us to be recognized in such a a regular basis, in order to move Zain coverage for customers with large fashion.” The life-enhancing mobile Group successfully to a digital future.” villas and mansions.” Essentially, the service was launched in partnership Gurkan added, “We established the service provides additional Internet with eServGlobal. Zain’s operation in Zain Digital Frontier and Innovation points in large houses, ensuring a Jordan received further accolades as (ZDFI) business unit to thrust Zain into better WiFi signal in-building and it was recognized for the launch of the digital space by identifying new throughout the grounds. “Customers its “Al-Basmah” prepaid line tailored business areas, value-adding strategic can even enjoy WiFi coverage in their specially for the deaf. The line was partnerships, accretive acquisition gardens and swimming pools by launched in collaboration with the opportunities and synergistic deploying the service,” the telco said. Higher Council for Special Needs and corporate venturing investments. “We heard from our VIP customers the Public Security Directorate. The Collectively, these activities look that they wanted comprehensive “Al-Basmah” line, a name meaning to create new revenue streams to WiFi coverage in their villas, and “smile” in Arabic, includes several maximize the group’s high-speed have partnered with companies who features that assist deaf people, 4G-LTE broadband networks, customer can deliver the additional hardware providing them a bundle of on- assets, network intelligence and and ensure it blends seamlessly into network video calls, voice calls, SMS payment and billing frameworks. ZDFI their home environments,” Al Sayed and internet access on its 4G network. focuses on the areas of innovation; said. Ooredoo worked with wireless Touch the mobile operation managed digital services; corporate venturing; networking specialist HPE Aruba on by Zain in Lebanon, was drawn out for and smart cities.” the service, as well as IT solutions firm GBM, which will handle installation and operation on its behalf.

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REGIONAL NEWS

Telecom Egypt, Etisalat Mideast digitization of negotiating €500m-plus governments services on loans for 4G licenses the rise Telecom Egypt and rival Etisalat Egypt As global organizations are digitizing are reportedly in talks with financial faster and moving online and mobile institutions with a view to securing loans to conduct business, the Middle East to cover the cost of their 4G licenses. Both is catching up with the rest of world in operators are holding discussions with terms of data growth and digitization, banks for loans of 5 billion Egyptian pounds according to Deloitte’s latest report “Are (€511 million) each, Reuters reported on you a date driven organization?” “There Thursday, citing unnamed sources from are several initiatives underway in the REGIONAL the banking community. The newswire did Middle East towards greater digitization not provide further information. A month of the Government Services. For example, UPDATES ago Orange’s Egyptian unit revealed as a part of the preparation for Expo 2020, that it had been asked to pay EGP3.54 the UAE government is working towards billion for a 4G concession. At the time delivering world-class smart services and Reuters quoted the Egyptian regulator, the infrastructure to its citizens” said Rajeev National Telecom Regulatory Authority, as Lalwani, consulting partner and technology confirming that it has approached all three leader at Deloitte in the Middle East. of the country’s mobile network operators “The UAE Smart Government is another regarding 4G licenses. However, the license initiative that will drive digitization of terms and conditions, including price, are all essential services for its citizens and not the same for all three. Telecom Egypt residents and will result in tremendous is not currently a mobile network operator data growth.”Organizations that harness in Egypt, but has been working towards data to gain insights of their customers becoming a unified player. It holds a unified will position themselves for better success services license that, once activated, in the long haul. And while the market is will enable it to offer mobile services in going through a hype cycle particularly its own right, as opposed to its current around the big data and internet of MVNO arrangement with Vodafone’s local things it is critical to note that a strong unit. Reuters said Telecom Egypt has been data foundation is required to handle the granted a 4G license, but did not specify future data growth” he added. According how much it has agreed to pay. to the Deloitte report, the data foundation of any organization is laid out by enabling many data management functions as

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SAMENA TRENDS JUNE-JULY 2016 outlined below: Data governance: it is able to offer any better services. In fact, where mobile penetration is over 100 a discipline originating from enterprise they will be in no position to address per cent because operators are looking information management. A typical subscribers’ grievances about poor at newer ways to attract new customers. data governance framework will have services, since they have no control India’s market penetration stands at four guiding principles including: over the physical infrastructure of around 75 per cent, which is different viewing data as a strategic asset, the host operator. Two, while most from the global scenario. But in mature linking to strategic initiatives, enabling markets where MVNOs have been markets like Delhi and Mumbai, it has a comprehensive change management successful have four to five operators, crossed 100 per cent. Striking the right program, and being driven by business at best, in India, most states have partnership with carriers is crucial as value. Data quality: it is typically up to 12 operators. Besides, since MVNOs can ensure that their wholesale measured in terms of accuracy, they sell lower-priced voice and data airtime rates are low enough to prevent consistency, relevance, integrity, packs, MVNOs will have a tough time the host network from reducing its own accessibility and serviceability. A creating a market for themselves. The customer-facing prices. On an average, typical data quality framework will average revenue per user (ARPUs) in a host network takes away around 30 address the data quality issues of India are already among the lowest in per cent of MVNOs’ revenues for using an organization from three angles: the world. Undercutting that will either their network. Globally, there are over people, process, and technology. extend MVNOs’ gestation period or 1,000 MVNOs; the largest multinational Data architecture: it is an important leave them deep in the red. As per players being Lycamobile, Lebara and part of information management as a McKinsey & Co 2014 report titled Virgin Mobile. Walmart, WhatsApp, it allows data integration across the Virtually Mobile: What drives MVNO Xiaomi, Alibaba and Tesco also enterprise. Laying the foundation success, “depending on the MVNO have MVNO services. As per GSMA for data architecture enables data operational model and the segment Intelligence, around 9 per cent of modeling, master data management of the target market, investment MVNOs offer data-only services via and metadata management. payback can usually be expected in dongles and Mi-Fis. The international “Establishing data-management four to six years”. Also, historically, MVNO market has gone through capabilities requires significant carriers have refrained from entering several phases. The first dates back investment in financial, organizational into agreements with MVNOs fearing to the start of the millennium when and human resources, and the benefits they may lose premium customers to players offered basic products. The will be realized over a longer term them. In France, for instance, some next phase began in mid-2000s, when as opposed to immediate results,” carriers have resisted renting 3G the voice market got saturated and 3G concluded Lalwani. “Companies that airwaves to MVNOs. The scenario is technology was taking off. By the end invest proportionally to manage changing, though. Telecom players of the last decade, most players folded data as a strategic asset will stand a may not give the same attention to up due to over-segmentation of the greater chance of success in today’s their potential customer groups, markets. Players with a focus on budget competitive global economy.” because these niche markets lie prepaid segment and sub-brands beyond the traditional marketing of some telcos - Virgin Mobile and Challenges for MVNOs approaches or are too costly to serve. Boost Mobile - survived. Since 2012, MVNOs have had a rough experience the market is seeing a sudden rush of to deliver quality in the in India. In 2008, Virgin Mobile tied players setting up MVNO operations. South-Asian market up with Tata Teleservices to launch Why now? Till a few years ago, telecom With the telecom regulator issuing its MVNO service targeted towards players adopted prohibitive pricing for guidelines for mobile virtual network the youth. Like Tata Teleservices’ core MVNOs, making their business models operators (MVNOs, or VNOs) earlier business, the venture did not do well unsustainable. However, they have this month, India is set to herald an era and was merged with Tata DoCoMo become flexible of late. According to of no-frills telecom services. Consider last year. Managing costs seems to Transparency Market Research, the them the low-cost airlines of the be the key. MVNOs have to work on global MVNO market is projected telecom industry. MVNOs buy airtime multiple fronts - for instance, decide on to expand at a CAGR of 7.4 per cent in bulk from existing telecom operators which services should be outsourced between 2015 and 2023. In 2014, the and sell branded SIMs to users in niche and which have to be managed in- value of this market was pegged at $39.1 markets, which could include specific house. “Winning MVNOs minimize billion. In developed countries, MVNOs user groups - low-paying users, data- costs by selecting the right mobile typically capture between 10 and 40 per only users, roaming users (for both virtual network enablers to assist with cent of the total market. It takes about calls and data), non-roaming users, key operations such as billing and $0.7 million to start MVNO operations. migrants and youth. In mature markets, administration,” says the McKinsey Meanwhile, this space is witnessing they’ve captured as much as 10 per & Co report. Almost 80 per cent of deals. In April, telecom and mobile cent of the subscriber base. In India, MVNOs’ costs such as wholesale payments technology provider XIUS Future Group, Datawind and Paytm airtime costs, customer acquisition joined hands with UK-based MVNO have expressed interest in MVNO and marketing expenses are variable. management consulting firm Hebitel operations. However, India may have The success of MVNOs like Telmore to help companies launch MVNOs in mistimed its MVNO foray. For one, in (Denmark), Simyo (Germany) and India. The new norms may have some a market where the primary telecom TracFone (US) suggests that they can takers early on and will certainly add operators themselves are offering achieve commercial viability by being depth to the telecom market. However, sub-standard voice and data services, innovative with the cost structure. For given the changes in the telecom sector MVNOs - who buy connections from instance, TracFone has kept acquisition currently, the scenario looks slightly networks, such as Airtel, Vodafone, costs low by relying on neighborhood hostile for MVNOs. Reliance, Idea, etc. - are unlikely to be grocery stores. As per GSMA research, MVNOs largely operate in markets

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UAE’s mobile phone soon, in addition to strengthening our Zain Kuwait launches partnerships with other players such as market estimated at “Omantil” and “Zein”.” He mentioned VoLTE $1.8 billion that his company expects 3 per cent Zain Kuwait has announced the commercial launch of voice-over-LTE Mobile phone sales in the UAE count growth in the smart phone market (VoLTE) technology on its LTE-Advanced for 700 to 800 thousand phones per this year compared to 2015 after the (LTE-A) network, reports Zawya. After month, of which 80 to 85 per cent is market has achieved significant growth completing ‘extensive research to test smart phones, while the value of the rates over the past few years. He made the readiness of its network’, the cellco market is estimated at $1.8 billion, clear that “Fast Telecom” tends to start has confirmed VoLTE as currently being according to Ali Salem, Founder, Fast the distribution of tablet devices in compatible with the following devices: Telecom, the UAE prominent group schools and higher education sector iPhone 6/6s, iPhone 6 Plus/6s Plus, specializing in smart devices and through signing agreements that iPhone SE, Galaxy S6, and Galaxy S6 tablets. “The smart phone market in ensure the supply of devices within the UAE is supported by several factors the smart education initiatives adopted Edge. that contribute to the continued by schools and growth of the market,” Salem said universities in the in a press briefing recently in Dubai. UAE market. Salem The use of more than one device per pointed out that user, the local culture of replacement “Fast Telecom” and users shifting from traditional to has also repair smart phones as prices have dropped and maintenance to reasonable levels are among other centers in the UAE, reasons.” He noted that mobile phone with high efficient market in the UAE is robust and vital, staff. They received as the country is an ideal platform awards from global to launch the state-of-art devices brands in this and a global hub for launching new regard, the latest brands and distribution of devices in of which was from the Gulf and regional markets, it also “Samsung” for has the momentum of a large tourist the high quality attraction as well as high purchasing maintenance and power. Salem also pointed out to the repair of devices. fierce competition between “Etisalat” He believed that mid-priced smart VimpelCom to make and “du” in offering packages of free phones harvested a very large share $1 billion investment in data and calls for the customers who of the market which encouraged the buy a selected smart phone, thus spread of smart phones in the market Pakistan over five years encouraging users to buy smart in general. One billion dollars investment would phones without down payments be made in Pakistan during the next and benefit from packages of data Ooredoo Algeria an- five years, Chief Executive Officer of and calls, as well as purchasing gifts VimpelCom Jean-Yves Charlier said for residents and visitors as well. nounces ‘pre-commer- here. Addressing a press conference, he Established in 2002, Fast Telecom has cial’ 4G launch said, “Mobilink and Warid will benefit currently eight outlets to distribute Ooredoo Algeria has announced a from VimpelCom’s $1 billion investment devices in the UAE and 12 branches pre-commercial launch of 4G LTE in building one of the largest and in all Arab countries, most notably in Tlemcen, one of three provinces most ambitious IT infrastructures in in the UAE, Saudi Arabia, and a (wilayas) chosen for its first-phase 4G the industry. The new digital systems large number of countries in the deployment alongside Tizi-Ouzou and will enable faster roll-out of new local region including Egypt, Iraq, Tunisia, Bechar. A pre-commercial launch event products and services, particularly in Morocco and Jordan. The Group is was held on 11 July in the presence of the areas of mobile entertainment, also the agent of 21 brands covering local authorities, director general of communications, the Internet of things most of the smart phones and the Ooredoo Joseph Ged, and the press. and mobile financial services. He said most famous devices around the Ooredoo received its 4G LTE operating that 50,000 new jobs across Pakistan world. As for “Fast Telecom” plans to concession in late-May alongside rivals would also be created in next five years. provide projects and ideas related to Algerie Telecom Mobile (Mobilis) and He added: “Over 50 million customers the “government” and “Smart Dubai”, Optimum Telecom Algerie (Djezzy), in Pakistan will benefit from high-speed Salem made sure his group offers a and that month also completed mobile telecommunications and a best- range of innovative ideas and projects LTE tests in partnership with Nokia, in-class digital mobile network. The that relate to the Dubai transformation reaching a maximum mobile data combined Mobilink and Warid entity of smart government initiatives “We speed of 75Mbps. Regarding the will be the leading telecommunications plan to the expand the distribution upcoming commercial 4G launch, provider of 2G, 3G and LTE services work with telecom operators in the Ooredoo stressed that 4G prices for in Pakistan, providing higher quality Gulf countries and the region through users will be the same as 3G, and that national voice and data coverage, faster partnerships. We began with signing network coverage of 48 provinces can downloads, and a wider portfolio of an agreement with the “Emirates be achieved ‘very quickly’. products and services. He said around Telecommunications” nine months 1500 Mobilink-Warid franchisee ago, and planning to sign with “Etisalat” shops would be opened across the

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SAMENA TRENDS JUNE-JULY 2016 country. The CEO said, “Our focus in Mobilink, Warid merger “I have worked closely with Aamir and future will be to improve and provide the team over the last two years and better services to the customers. He deal closes as I hand over the baton, I have full said that 38 million of customers of Aamir Ibrahim takes over as CEO of confidence that Mobilink and Warid Mobilink will be provided 4G while both companies following completion will grow from strength to strength,” 12 million consumers of Warid will of financial transaction; legal merger Hedberg said, of his replacement. be given 3G services. “We have made due to be completed within six Al Nahyan becomes chairman of a commitment with Prime Minister months. The parent companies of Mobilink, with Jon Eddy, VimpelCom’s Muhammad Nawaz Sharif during Mobilink and Warid Telecom on Friday head of emerging markets, serving as a meeting to provide our services announced they have completed his vice chair. Mobilink finance chief in remote areas,” he added. To a the transaction that will enable Andrew Kemp also assumes the role question, he said, “Pakistan has quality them to merge the two companies, of Warid CFO. The legal merger of and dynamic workforce”. consolidating the former’s position the two companies is expected to be as Pakistan’s largest mobile operator. completed within around six months. Nepal’s Ncell requests A deal announced in November made Mobilink and Warid will file a petition provision for VimpelCom-owned to the Islamabad High Court in order new spectrum Mobilink to acquire 100% of Warid’s to commence the process of a legal Nepal’s largest mobile operator by shares, in return for Warid owner the merger in the near future. subscribers, Ncell, has requested Dhabi Group buying 15% of Mobilink’s additional wireless frequencies shares, with Warid then to be merged from the regulator, the Nepal into Mobilink. The companies did Etisalat demands fair Telecommunication Authority not place a value on the deal. Those market regulations (NTA). Ncell is looking to boost its share transactions have now taken before 4th operator TE frequencies so that its holdings match place, VimpelCom and the Dhabi those of rival operator Nepal Telecom Group confirmed. Regulatory body enters (NT). According to a report from the the Pakistan Telecommunication CEO of Etisalat Egypt Hazem Metwali Kathmandu Post, Axiata subsidiary Authority (PTA) approved the merger called for putting forth fair market Ncell has requested 1.6MHz in the just over a month ago, subject to regulations for the mobile market in 900MHz band to give it 9.6MHz, certain conditions geared towards Egypt, as Telecom Egypt (TE) gets ready 4MHz at 1800MHz to give it 15MHz, protecting competition in the market. to launch as the country’s fourth mobile 5MHz in the 2100MHz range to give it Together the two operators had 50.1 service operator. Metwali directed his 15MHz, and a brand new allocation of million mobile customers at the end call to the National Telecommunications 30MHz in the 2300MHz band to match of May, according to the PTA, giving Regulatory Authority (NTRA), as fourth the frequencies that NT currently the combined entity a 37.5% market generation (4G) frequencies are being holds for WiMAX-based services. share; there are 133.5 million mobile introduced to the Egyptian market. The NTA says it will look at awarding customers in Pakistan. The completion With TE owning the telecommunication the spectrum once the country’s of the deal is “very positive news” infrastructure in Egypt, Metwali stated radio frequency policy has been for the Pakistan economy, Dhabi that negotiations regarding trade amended; a new draft of the policy Group Chairman Nahayan Mabarak agreements of infrastructure rental has been submitted to the Ministry Al Nahayan said, thanking the prices with TE had been ongoing for a of Information and Communication relevant authorities for supporting few years. However, a final agreement (MoIC) for review and approval. It is the transaction.”I am confident that with the company has not been being altered to allow for technology together, the combined businesses reached until now. “Etisalat is looking neutrality, enabling operators to use will continue to deliver excellence to into the trade agreements with TE, but their existing 1800MHz spectrum for their customers while contributing everything is still pending,” Metwali 4G services. positively to the business environment said. He added that there were no clear in Pakistan,” he said. VimpelCom said details about letters sent by the NTRA the merged entity will benefit from about the availability of frequencies Etisalat launches VoLTE its US$1 billion IT transformation for the 4G licenses. It is expected that United Arab Emirates (UAE) telco project, announced last month. Etisalat will pay EGP 4.5bn in exchange Etisalat has launched voice-over-LTE The upgrade of its BSS systems will for a 4G license. Metwali noted that the (VoLTE) services for both pre-paid enable it to roll out local products and company has had several meetings with and post-paid mobile customers. The services more quickly, particularly in the NTRA, looking into the technical, company says it expects the technology the areas of mobile entertainment, financial, and regulatory conditions of to bring ‘major improvements’ to the communications, the Internet of Things offering 4G services. Clear regulatory quality of voice and video calls, while (IoT) and mobile financial services. frameworks need to be put in place, also reducing call set-up time. Etisalat “Through this, Pakistan’s digital regarding the advantages, services, Group’s chief executive officer Saleh development will be elevated to the licenses, and frequencies that the Al Abdooli commented: ‘Although next level, further reducing the digital company will obtain, Metwali stated. internet-based chat apps and divide,” the telco said. The integration He added that equality, justice, fair messengers have gained popularity of the two mobile operators will be competition amongst operators, and in recent years, voice calls continue overseen by a new CEO. Mobilink chief a general growth in the sector are key to matter most when people want executive Jeffrey Hedberg will step pillars for this framework, assuring that real-time, interactive and instantly aside, effective immediately, handing the service users are the ones who will gratifying connection with their the reins to Aamir Ibrahim, who mainly benefit from these regulations. families, friends or colleagues.’ currently serves as chief commercial Etisalat Egypt has invested more than officer and deputy CEO of Mobilink. EGP 37bn in the local market since

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SAMENA TRENDS JUNE-JULY 2016 entering it in 2006. An official in one to its end users a much improved said NT would start commercial use of of the mobile operator companies, quality of service experience for our the fiber cable soon. As a result of this wishing to remain anonymous, said customers. “Transworld is dedicated to Nepal now can be directly linked with that pending issues in the Egyptian providing high-speed, cost-effective, Hong Kong Data Centre, which is one telecommunications sector must be reliable international bandwidth. The of the two biggest global date centers resolved before approving the 4G 100G upgrade will increase system in Asia, through the Chinese mainland, licenses and allowing TE to offer 4G capacity to meet the expectations for he said. “The use of the Chinese route as a competitor. He added that TE is high-quality international connectivity to connect with Hong Kong Data the sole owner of the infrastructure services for our customers,” said Centre will help enhancing quality of in the Egyptian market, which will Kamran Malik (President of TWA). He internet services in Nepal because of allow it to monopolize the sector. further added “The flexible upgrade shorter distance,” he said. Following Moreover, it will be offering mobile solution will provide options for us the setting up of the Chinese optical and 4G services once it is provided to upgrade 400G or 1 Terabit in the fiber, Nepal can now purchase Internet with the license, which will harm future, allowing greater flexibility, while bandwidth from Chinese firms. The the competition in the market. The enabling us to maintain our quality and fiber network brings Nepal Internet source wondered why TE was allowed reliability commitments to our valued services under the ambit of Chinese to become a competitor in the customers.” telecom networks. At present, Nepal’s mobile market, while monopolizing Internet service providers purchase the sector’s infrastructure, and also bandwidth from companies from owning 45% of Vodafone Egypt. This Batelco aiming for King- India and other countries. “This will results in unfair market competition. dom’s fastest ‘4G+’ create a competitive environment for Bahraini telecoms group Batelco has purchasing internet services which Maroc Telecom ex- announced plans for the rollout of ‘4G+’ could reduce the cost of Internet LTE-Advanced (LTE-A) upgrades across service here,” Adhikari said. China pands FTTH footprint its 4G network, which it claims will be has been ramping up its rail and road Maroc Telecom has extended its the first of its type in the Kingdom. connectivity with Nepal and backing fiber-to-the-home (FTTH) network Rival cellco Viva Bahrain last month Prime Minister KP Oli’s government in to every major city in Morocco, fol- announced the completion of a 4G LTE dealing with the Madhesis, largely of lowing trials in selected districts of network upgrade boosting maximum Indian-origin, who has been protesting Casablanca and Rabat. The operator theoretical end-user mobile data against the new Constitution claiming currently offers two fiber subscrip- speeds from 100Mbps to 150Mbps, but a raw deal for them. Their months-long tion plans: a 50Mbps connection Trade Arabia quotes Batelco’s Bahrain protests, blocking Nepal-India border with unlimited data allowance costs CEO Muna Al Hashemi as saying that trade points had created a severe MAD600 (USD61), while the premi- her company will be the first to roll crunch of essential supplies in the um 100Mbps subscription is charged out LTE-A in the market, giving ‘better landlocked Himalayan nation. Besides at MAD1,000. According to TeleGe- coverage, greater stability and faster restarting previously damaged roads ography’s GlobalComms Database, performance’. According to Batelco, to Nepal via Tibet, China in a strategic Maroc Telecom launched FTTH ser- the 4G+ network rollout has started move last month opened combined vices in selected areas on May 20, and will accelerate over the coming road-and-rail services to Kathmandu 2014. months in partnership with Swedish to speed up supplies. The two have technology vendor Ericsson. also beefed up their military relations. Admiral Sun Jianguo, deputy chief of Transworld Completes the Joint Staff Department of China’s 100G Upgrade of its China links Nepal with Central Military Commission, and Chief TW1 Undersea Cable optical fiber via Tibet of Army Staff of the Nepalese Army For the first time, China and Nepal Rajendra Chhetri discussed military-to- Transworld Associates Private Limited have been connected with an optical military and bilateral ties during Sun’s (TWA) has successfully completed fiber network via Tibet as infrastructure visit to Kathmandu two days ago. the 100G upgrade of its undersea between the two countries is being cable TW1, said a statement issued firmed up to extend high-speed moments ago. The 100G upgrade will Batelco, GCCIA launch Internet services to Nepal and end its combine submarine and company’s “sole dependence” on India, Chinese BGN cable system terrestrial systems into a unified state media reported today. China Bahrain Telecommunications Company network to ultimately enhance has extended its optical fiber network (Batelco) has announced the launch the operational and management to Nepal via Geelong (Keyrong)- of Batelco Gulf Network (BGN), in a capabilities of the TW1 system. Using Rasuwgadhi border point, “which has venture with the Gulf Cooperation the state of the art 100G transmission ended Nepal’s sole dependence on Council Interconnection Authority technology, original system design India”, Xinhua news agency reported. (GCCIA). The BGN terrestrial fiber- capacity has been increased by six State-owned Nepal Telecom (NT) optic cable system spans 1,400km times; adding 36 x 100G wavelength said its optical fiber network has and runs over the GCCIA electricity on each fiber pair and total of 72 x been connected to China Telecom power grid, offering high bandwidth 100G wavelengths which will boost Corporation Limited. “After establishing and capacity connectivity to all Gulf the network assets and enhance connection, we conducted technical Cooperation Council (GCC) countries, the life of the overall cable system. test about two weeks ago,” Dilliram with Batelco given full responsibility Through this cutting-edge system Adhikari, joint spokesperson of NT was for managing the network. The cable upgrade Transworld has accelerated quoted as saying in the report. Adhikari can be interconnected with other and expanded the capability to deliver regional submarine cables giving

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SAMENA TRENDS JUNE-JULY 2016 access to onward connectivity to (close to 550 estimated to be operating auction in Pakistan. Following were the Europe and Asia and major regional in Qatar) have largely benefited from details shared by the Chairman PTA landing stations. Batelco CEO Muna ICT-related government projects and of entire 850 MHz Spectrum Auction Al Hashemi commented: ‘Batelco view the government as a key driver 2016: Broadband is investing in the new system and in the future growth of the sector. A also highly reliable equipment to total of 83% of the ICT enterprises in Proliferation plays major role in socio- operate and maintain it, as part of Qatar reported having worked with economic development of a country our endeavors in developing world government organizations at least in the modern world. Government class networking services to support once between 2012 and 2014, and of Pakistan has always taken steps the Kingdom’s efforts and promote about one-quarter reported working for the growth of telecommunication Bahrain as a hub for innovative on more than 10 government projects. sector keeping in view the future communications services.’ Moving forward, the economic growth market trends and technological of Qatar (27%) and the increasing use of advancements. The NGMSA spectrum Qatar’s commercial sec- IT solutions in all industries (25%) were auction held in 2014 is a testament of cited by the ICT industries interviewed government’s commitment to bring the tor to spend $2.8 billion as the top two drivers of ICT industry latest technologies for proliferation of on ICT by 2019 expansion in Qatar. In addition, nearly mobile broadband in the country. 3G Total ICT (information and 40% of the ICT enterprises also reported and 4G services usage trends show communications technology) that government initiatives, the FIFA the appetite for high data rates in the spending by Qatar’s “commercial World Cup and the Qatar National market. Pakistan Mobile Broadband sector” is projected to increase to Vision 2030 also played a critical role percentage is now more than India, nearly $2.8bn by 2019, shows a new in driving the ICT market. These and Nepal and Bangladesh. At the end report by the Ministry of Transport other findings are part of this broad- of April 2016 the Mobile Broadband and Communications. The total ICT based research study that examines Subscribers were 28.7 Million. PTA spending by the country’s commercial the current levels of ICT access and hired a UK based consultant, Inter sector stood at $1.9bn in 2015, usage among businesses in Qatar and Connect Communications (ICC), for according to “Qatar’s ICT Landscape measures the development of the ICT market assessment on October 31, 2016: Business”. For more than a sector. The study, based on a survey of 2015. Subsequent to the consultation, decade now, Qatar’s investments in some 1,093 business establishments MoIT&T issued a Policy Directive for state-of-the art ICT infrastructure, spread across industry sectors, was the “Unsold Next Generation Mobile skills development and e-government conducted between March 2015 and Services (Spectrum) in Pakistan”. The have created a positive impact on May 2015. In addition, in-depth, face- policy directive identified one block of all sectors in the state. In 2014, the to-face interviews were conducted 10 MHz in 850 MHz band i.e. UL: 824 total revenue generated by the ICT with 300 ICT providers during that – 834 MHz/DL: 869 – 879 MHz with providers in Qatar was estimated same period. The report estimates a base price of USD 395 Million. The to be close to QR9bn, reflecting that in Qatar there are 44,439 business Information Memorandum (IM) was a compound annual growth rate establishments (excluding specific prepared and published on PTA website (CAGR) of 15.4% for the period 2012- government bodies) employing followed by advertisements both in 2014. In addition, ICT investments 1,233,110 people. Overall, a review local and foreign print media. The IM are transforming businesses of all of the ICT landscape showed that contained all the necessary details from kinds. ICT has improved the quality since 2010, Internet penetration had submission of applications to award of of products and services, provided shown a steady increase and stood at the license. Salient features of the IM access to new geographic markets, 70% among business establishments are listed below: allowed better customer relationship in 2015, while computer penetration management and provided access remained flat and was at 76% last year. • One block of 10 MHz paired to better quality raw materials and The web presence nearly doubled from spectrum UL: 824 – 834 MHz/ services. The report shows that 83% 20% in 2010 to 39% in 2015; however it DL: 869 – 879 MHz is offered for of establishments who were surveyed has remained relatively flat since 2012. auction. believe their businesses have benefited • The base price is USD 395 Million. from ICT, with nearly half saying that • Existing licensees as well as new ICT helps them access customers in entrants are encouraged to new geographies and expand their Pakistan Transparency participate. potential market. Improved quality & Fairness Recognized • Applicants shall apply as per the of products and services was cited provided checklist. as a key benefit by 37% of surveyed by World in Spectrum • Interested parties can raise queries businesses, followed by faster Award: Anusha (if any) within 15 days from 2nd delivery (30%) and better customer The recent award of 850 MHz to Telenor May 2016. relationship management (23%). In by Government of Pakistan is again a • An information session will be held addition, following the worldwide success story as its transparency and with the prospective applicants for trend, the ICT industry is helping to fairness is recognized by the global ICT further clarifications. fuel the growth and diversification Industry-said by Anusha Rehman in a • In case of one applicant, spectrum of Qatar’s economy. While the ICT post award press briefing at Pakistan will be awarded at the base price. industry in Qatar is still mainly import Telecommunication Authority dependent, all leading ICT products (PTA) Headquarters. PTA has earlier In accordance with the IM, an and services are currently available announced “Telenor Pakistan” as information session was held on 23rd in Qatar, mainly through resellers and the winner of its 850 MHz spectrum May 2016 to clarify any queries by service providers. The ICT enterprises the prospective bidders. Chairman

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PTA, Dr. Syed Ismail Shah chaired most anticipated events of the year in the two companies plan to introduce the session whereas representatives the Mena region within the signage, another foreign investor, with Sistema from Mobilink, Telenor, WorldCall, digital signage, retail signage solutions, – whose Sistema Shyam Teleservices Multinet and senior officers from PTA outdoor media, screen and digital Limited (SSTL) is due to be rolled into attended the session. The participants printing industries. To address the RCOM via a separate deal beforehand were briefed about different aspects growth in this demand the company – and US investors reportedly amongst of upcoming auction process and aims to bring in exhibitors from across those under consideration. The merger arrangements. The information the globe within touch, multi touch, is expected to generate costs savings session provided professional analysis gesture control, mobile, signage with of around INR25 billion (USD372.6 on the whole bidding process as per augmented reality and social media million) annually, and the combined PTA’s Information Memorandum (IM) integration, animated displays, digital entity is anticipating EBITDA of INR50 and for the successful completion of score cards, display panel technologies, billion to INR60 billion in the financial auction in a transparent manner. The video walls and other state-of-the- year ending 31 March 2018. application of Telenor was evaluated art mounting systems. “The need in accordance with the terms and for digital signage in organizations conditions of the IM and found includes navigation, point of sale, point Operator to consider complete in all respects. The applicant of transit, communication, promotion launch digital health ini- has been notified accordingly. and advertising and infotainment. Since only one applicant, Telenor, has Competition between prominent tiative in Pakistan applied, hence in NGMS spectrum of vendors and new players is anticipated Telenor will consider launching its digi- 850 MHz band it will be awarded: to effect in product innovation for tal health service ‘Tonic’ in Pakistan if UL: 824 – 834 MHz attaining diversity in digital signage. it succeeds in Bangladesh, Daily Times DL: 869 – 879 MHz There has been a surge in demand has learnt. Recently, Telenor unveiled Telenor will be awarded this spectrum in niche segments like healthcare its first move to improve healthcare in on base price of USD 395 million in services and educational institutions emerging markets, with the introduc- accordance with the schedule given which has contributed to this particular tion of its digital health service Tonic in the IM. The license will be awarded technology implementation,” added in Bangladesh. Sajid Rahman, Chief to Telenor within 30 days of payment. Sharif Rahman, CEO, International Executive Officer (CEO) Telenor Health, Expo Consults. There are several responding to a question, said ‘We distinct advantages of employing have decided to focus on Bangladesh Qatar could further pro- digital signage over static displays. in the initial phase. However if this is pel global $23 billion The attention can be diverted and the a success in Bangladesh, we will con- purchasing decision right at the point sider launching it in other countries as digital signage industry of purchase can be encouraged by the well, including other Telenor markets’. Qatar will play a significant role within means of the digital signage content. In Pakistan, Telenor is already looking the $23bn global digital signage The related costs of creating and into some smaller scale Health initia- sector. The major driving force for this distributing print-ad campaigns can tives, added Rahman. Tonic is one of growing demand is expected to come be excluded by the implementation of the first digital offerings to connect from retail, commercial, healthcare, digital signage. The capacity to change the dots across the healthcare ecosys- tourism, education and the massive promotions immediately for different tem and address the full spectrum of infrastructure development sectors, customers or various products is quick wellness and health needs through a says a top official of a UAE-based as it offers immediate results. Digital mobile-based integrated digital ser- consulting firm. Abdul Rahman signage has come across not as just vice. From prevention-focused digital Falaknaz, Chairman of International another option but a vital tool within content to phone-based primary care Expo Consults (IEC), referring to a the marketing mix as the industry information to financial assistance report by Global Market Insights Inc, unveils innovative offerings. (discounts and insurance) for hospital said that the global digital signage care, Tonic focuses on each member’s industry is expected to touch $23.02bn unique health needs and is designed by year 2023. “Investments within RCOM and Aircel to agree to provide incentives that promote the government and educational greater health over the long term. “Har- sector and the need for enriched user on merger terms in early nessing technology in order to address experience and subsidized prices for July basic health challenges is an area of display panels will all facilitate the Reliance Communications (RCOM) and growing interest for Telenor, especially growth of this sector. Several mega Aircel are expected to finalise a merger in countries like Bangladesh,” said Sigve projects in the GCC region are in agreement in early July, the Economic Brekke, President and CEO of Telenor various stages of construction. With Times reports, citing officials with Group. Currently, Telenor serves more global mega events, particularly knowledge of the matter. According than 185 million customers across FIFA World Cup 2022 in Qatar and to the sources, negotiations are in Asia. Tonic Doctor enables members the World Expo 2020 in the UAE their advanced stages and the duo are to access high quality and immediate and the will also trigger the need finalizing various legal and commercial medical advice on basic health topics for high-end digital sign ages in this terms of the agreement. Under the deal, via phone at any time, any day, at an af- region. Despite the oil and market RCOM will spin off its wireless operations fordable rate of BTk 5 per minute, with- conditions, the retail establishments into a new company which would then out the traditional barriers of distance, in the middle east market are upbeat be merged with Aircel. The enlarged cost, or safety concerns. Tonic Doctor on this digital signage technology,” cellco will operate under a new brand is designed to decrease the healthcare said Falaknaz. IEC is the organizer name and will be split 50:50 between burden on the brick and mortar sys- of ‘The SGI Dubai show’, one of the the two partners. Following the merger, tem. Tonic Discounts offers exclusive

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SAMENA TRENDS JUNE-JULY 2016 discounts up to 40% on key services at more than 50 popular hospitals across Bangladesh. Via a quick SMS with the partner code to 789, Tonic members can access care at a lower cost. Tonic Cash provides members Tk 500 if they have been hospitalised for three consecutive nights or more, paid directly to a member’s mobile banking wallet. Members can claim Tonic Cash up to four times a year, and this facility can be availed for any disease or ailment. It is in part- nership with local insurance partner Pragati Life Insurance Limited. The United States Agency for Interna- tional Development (USAID) and Telenor had signed a Memorandum of Understanding (MoU) to work for the socio-economic progress of Pakistan. Their main aim would be to support initiatives in the fields of health, governance, education and agriculture.

telecom infrastructures in Africa; and a fees and services available to them. State of digital pay- remarkably high mobile penetration The informal economy - or business rate which is as high as 130 percent activities that are not reported to the ments in Morocco according to the ANRT. Morocco government - could also be a barrier According to the 2015 annual report boasts regulations around banking and to the adoption of digital payment from Morocco’s central bank, Bank Al- financial services as complex as that of more generally, rather than mobile Maghrib, electronic payments such more developed European countries, payments specifically. According to as in-store credit card payments and and that’s its problem. Most successful the last report, published in 2008, online transactions in the country mobile payment solutions in the world by Moroccan government statistics were worth $2 billion per year and have been launched by telephone department the Higher Planning averaged 600,000 transactions per operators such as SafariCom, which is Commission, the informal sector made day. But, as an example of how behind M-Pesa in Kenya, and Orange up over 14 percent of Morocco’s GDP in absent digital payments are from the which is behind Orange Money in 2007. One should add to that number, Moroccan market, the report had no Senegal. In Morocco, the law bans the registered shops that accept cash discussion around mobile payments any organization that is not a bank payments in addition to their declared at all. A 2015 study on mobile to seek deposits from individuals and income. The financial flexibility that money in Africa by consulting firm companies and offer payment options. undeclared cash provides could BCG (formerly Boston Consulting So, from a legal point of view a solution mean that some businesses might Group) argues that over the last like M-Pesa, which is based on phone be reluctant to adopt more traceable 10 years, 52 percent of the active companies facilitating payments, methods of payment. The last obstacle population in Sudan uses mobile cannot exist in Morocco. For example, is related to the Moroccan dirham. The banking services, 50 percent in before 2014 only Maroc Telecommerce dirham is a non-convertible currency, Gabon, and 42 percent in Algeria. was authorized to process online credit meaning it can’t be exchanged for In the same year in Kenya, mobile card payments in the country. Since this an international currency such as payment transactions accounted for monopoly nominally came to an end the US dollar or the euro outside of 60 percent of GDP, a country with in 2014 three other providers have Morocco. Further, Moroccans can’t pay an economy and population close appeared: AmanPay (disclosure: the in dirhams abroad - they have to do to that of Morocco. Further, one writer works for AmanPay), PayZone, so in foreign currencies - and getting in every three Kenyans - that’s 18 and F-Pay. With these new players the dirhams out of the country is forbidden million people - use mobile money to number of e-shops has doubled and by the state. This means all modes of pay for items both online and offline the quality of ecommerce services payment must be operated by an entity in grocery stores, supermarkets and is improving. But, while the online based in Morocco. It is therefore very souks, according to French business payments sector has been opened difficult for foreign investors to invest in journal LesEchos. Yet Morocco has up to competition, payment via credit payment methods targeting Morocco. advantages that should make mobile cards is still controlled by the Centre Therefore, modes of payment such as money and payments more popular: Monetique Interbancaire (CMI - which Paypal are pretty much absent from a young population with an average also owns Maroc Telecommerce), a the Moroccan market. It’s almost age of 28; a bancarization rate - or private company created and owned impossible to transact in Bitcoin the number of people with bank by all but two of the country’s banks. and it’s time-consuming for services accounts - within the world average The CMI is still the only active entity that such Airbnb and Uber to get into the of 64 percent, according to Bank Al- provides shop owners with payment country partly because they have to Maghrib; one of the most developed terminals and therefore decides the find ways to work around the currency

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SAMENA TRENDS JUNE-JULY 2016 issue. The government is working on will enable the rapid rollout of new with traditional bands accounting finding solutions to these problems services for Nepal Telecom’s 14 million for 70 percent. “Our collaboration such as modifying banking laws subscriber base. The Tecnotree Agility™ with Ooredoo Oman showcases the and the legal framework around Mediation and Interconnect system benefits of microwave backhaul for the payment services and methods. will replace Nepal Telecom’s existing operators around the region. It also Digital payments regulations and systems for GSM and other networks empowers Ooredoo Oman to pave the technology in Morocco are still - and supports mobile, fixed line and way for innovative traffic management well behind those in other African broadband lines of business as well as solutions.” Network demands and countries. While the government is future services. The solution will be maturity vary around the world, and taking some steps towards allowing delivered as a turnkey project, including differences exist even within individual the country’s entrepreneurs push complete hardware and third party countries. Regardless of the situation, payments in the 21st century, there software implementation. “By enabling operators want to achieve the same is a long way to go yet. the integration of new and legacy goal – to provide the best possible network components we are pleased performance and quality of experience to help Nepal Telecom to execute its in the most cost-efficient way. Pakistan doubles 3G/4G convergence strategy and achieve Microwave is an important backhaul users in 9 months its objective of complete optimized solution to address an increase in traffic Business Support Systems,” said Padma for both mobile and fixed networks for Pakistan’s 3G and 4G subscriber Ravichander, CEO, Tecnotree. Ooredoo Oman. base more than doubled over the past nine months to 27.87 million as the country’s nine operators added Oman tests microwave Telecom imports in Paki- more than one million high-speed backhaul, eyes multi- stan fall 1.83% mobile connections per month. To The imports of telecom sector related expand and upgrade their networks gigabit capacity items into the country fell by 1.83 operators invested $589 million Ericsson and Ooredoo Oman have percent in first 10 months (July-April) during the July-March period, with joined forces to demonstrate the of current fiscal year compared to the cellular networks accounting for viability of microwave backhaul to same period last year. The telecom 95 per cent of the investment, the provide multi-gigabit capacity for imports decreased to $1.157 billion Pakistan Observer reported. The fixed and mobile networks. Ooredoo during the period July-April (2015-16) total number of mobile subscribers Oman and Ericsson trialed a range from $1.18 billion during same period fell to 131.4 million, a decrease of of solutions that can deliver gigabit of the year 2014-15. According to latest about 7 per cent, due to the country’s backhaul capacity, supported by data released by Pakistan Bureau of biometric re-verification of SIMs last the availability of new radio access Statistics (PBS), on month-on-month year, which has culled millions of users spectrum. E-band (70/80GHz) spectrum basis, the telecom imports fell by 9.38 from operators’ books. The country’s is the key to supporting microwave percent from $122.201 million in March telecoms sector generated PKR333.2 and meeting increased capacity 2016 to $110.715 million in April 2016. billion ($3.18 billion) in revenue in the requirements for both backhaul and However, the telecom imports posted a first three quarters of fiscal year, with fronthaul. The world’s highest-capacity growth of 1.84 percent on yearly basis, operators paying PKR106 billion to E-band radio, the new Ericsson MINI- as it went up to $110.715 million from the government in duties and taxes, LINK 6352 was successfully trialed, $108.713 million in April 2015. The or 32 per cent of their total turnover. providing 5.7Gbps over one carrier. import of mobile phone during first 10 Operators also collected PKR31.2 Four carriers in traditional frequency months of current year posted a growth billion in GST during the nine months bands and narrower channels were of 6.64 percent from $595.778 million from July 2015 to March, according to bonded together to provide 1.6Gbps. last year to $635.342 million during the government’s Economic Survey. The success of the trial proves the the period of current fiscal year. On Revenue growth has picked up since capability of microwave to address last fiscal year when revenue fell growing data traffic demands and 3 per cent to PKR450 billion from support operators in offering superior the previous year. The Pakistan mobile broadband experiences to their Telecommunication Authority (PTA) customers. Wolfgang Wemhoff, Chief and mobile operators have long Technology Officer, Ooredoo Oman, called on the central and state says: “Ooredoo is constantly working governments to reduce taxes on the toward responding to changes in telecoms sector to spur growth. customer needs and providing them with the products, services and offers they want, through both mobile and year-on-year basis the mobile phone Tecnotree selected by fixed offerings. “Our partnership import increased from $56.196 million with Ericsson allows us to inspire and Nepal Telecom to deploy in April 2015 to 62.059 million, showing innovate new methods to meet the a growth of 10.43 per cent. However convergent mediation ever-changing needs of our customers on month-on-month basis, the mobile and businesses in all sectors across the and interconnect system phone import posted a negative growth Sultanate of Oman.” Rafiah Ibrahim, Tecnotree, a global provider of of 18.44 percent as the import during Head of Region Middle East and East telecom IT solutions, has been the month of March was recorded at Africa, Ericsson, says: “Microwave selected by Nepal Telecom to $76.094 million. supply its Agility™ Mediation and backhaul will represent up to 20 Interconnect system. The new system percent of new deployments in 2020,

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SAMENA TRENDS JUNE-JULY 2016

Telenor Boosts Radio oral test and eligible candidates will be ITU and GSM Association (organizer selected for training so they can avail of Mobile World Congress) to bring Spectrum Holdings themselves of the other facilities and the launch date forward,” Waleed Al Telenor has provisionally won a services. Those who qualify for training Sayed, CEO of Ooredoo Qatar told The radio spectrum auction in Pakistan should be between 18 and 60 years of Peninsula. He added: “Although this that will let it expand its 3G services. age and should agree to repay the is not in our hands but we are trying The telecoms regulator, the Pakistan loans given by the respective banks. our level best for this. We also want to Telecommunication Authority (PTA) The Ministry of Labor recently directed promise the people of Qatar that we said that Telenor Pakistan was the that non-Saudis should not work in will be the first in the world to launch sole bidder for the 10-MHZ block of the mobile and telecommunications 5G services.” He said that the company 850-MHZ band spectrum. Telenor industry in the Kingdom after always strives to provide a very high currently operates its 3G services on September2. Spokesman for the bandwidth on mobile broadband. And a 5-MHZ block of 2.1 GHz spectrum. Ministry of Labor Khalid Aba Al Khail in this regard, Ooredoo signed an “In case where the auction is not said that the rule applied to all agreement with Huawei in Barcelona required due to no-excess demand, expatriates without exception. “We to build the region’s first 5G R&D the applicant that submits a pre-bid need the sector to be fully Saudized Centre in Qatar, aiming to conduct offer, supported by a correct pre- at the beginning of September.” He all kinds of possible research studies bid deposit, is awarded the amount said inspection campaigns would be related to the future technology and of spectrum stated in their pre-bid carried out in all sectors in the mobile innovation. The works on the Centre, deposit form,” the regulator stated. industry beginning in Ramadan. ” We according to Al Sayed, is progressing in The reserve price for the spectrum are very keen to employ our young full swing in a very high security area. had been set at USD395 million, a Saudi men and women in this sector,” Once ready Ooredoo will announced third higher than similar blocks sold he added. The training program will about it in a media gathering. He said in 2014. The higher reserve price is cover areas such as customer service, that the local engineers and students thought to be why none of the other sales management, the basics of from Qatar-based universities will also companies which had showed an mobile maintenance and maintenance be allowed to have access to the R&D interest went forward with bids. of advanced mobile phones. The new Centre for experiments. “We are doing plan is to create jobs for Saudi men and everything possible for people, things, Women want to invest women that will give them financial and organizations in Qatar to get stability and minimize cover-up connected with the rest of the world. in telecommunications activities. The decision will be enforced Being the only telecom service provider in KSA across the country and will include with high bandwidth capability, we are A total of 380 Saudi women have small, medium and large businesses. also working as a catalysts to attract expressed their willingness to invest in The HRDF will provide employment businesses to invest in the country,” the telecommunications and mobile support services to enterprises and Al Sayed added. “Our company has industry. The announcement was job-seekers in the telecommunications signed agreements with scores of made by the Ministry of Labor and industry; the services are accessible at organizations in Qatar, including the Social Development. According to an www.taqat.sa. There will also be support Ministry of Foreign Affairs to connect official from the ministry, the women provided in paying part of the salaries all the embassies. We have also signed have applied for entrepreneurship of the Saudis employed. The ministry agreements with Al Jazeera Network through a program called “Start Your has warned that violators, particularly and beIN (sports TV network) to Small Business” introduced by the businesspeople and their employees connect their offices across the world.” National Entrepreneurship Institute. involved in cover-up businesses would Asked about the impact of the pervasive It is carried out by the institute in be subject to heavy penalties. use of Internet Protocol Mode, such as cooperation with the Saudi Credit and WhatsApp, Skype and Viber, to make Savings Bank. The program conducts voice calls, especially overseas, on four training sessions with each one Qatar may be first to the Company’s revenue, he said that lasting five days. The program aims launch 5G services initially Ooredoo was worried about it to tell trainees how they should Qatar is expected to become the first as the demand for traditional voice call invest and develop small enterprises country in the world to launch 5G and SMS services started going down which will lead to successful projects. mobile network services, said a top significantly, but the Company adapted The training session seeks to give a official of Ooredoo Qatar, country’s the situation instead of fighting against comprehensive experience to enable leading telecom services provider. it, by transforming the challenge into the successful trainees to conduct In this regard, Ooredoo, the Qatar- an opportunity. “We at Ooredoo do their small businesses in their own based telecom giant, is negotiating not see these apps as a threat. Nearly ways in the telecommunication with various stakeholders and two years ago we started working on and mobile industry. The program organizations, including the Geneva- it taking it as a new opportunity. We will also help the participants get based International Telecommunication have migrated our business to become SR200,000 to encourage them to Union (ITU), to advance the launch date a data enabler. And today we sell enter the mobile industry which will of 5G services. The 5G technology is more data than selling voice and SMS in turn help the government reduce expected to go on trial by the end of services. By the end of this year, the the unemployment problem among 2018, which is slated to be launched share of revenues from data is expected women in the Kingdom. The institute commercially by 2020 worldwide. to be more than 60 percent,” he said. Al receives project funding requests “We believe 2020 is very far away. Sayed cautioned that companies that electronically through the website of So we are trying with manufacturers are continuing to stick with voice and the institute at www.riyadah.com.sa . and other concerned entities such as SMS services are going to face a very The requests will be followed by an big failure in the future.

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SAMENA TRENDS JUNE-JULY 2016

Qualcomm Adds Snap- Initial Services foreseen by end of 2016. prototype system will closely track The Galileo signal has demonstrated 3GPP progress to help achieve timely dragon Support for Eu- high performance and we believe will 5G NR trials with mobile operators, rope’s GPS Service, Galileo enhance user experience with more infrastructure vendors, and other Qualcomm says that it is adding accurate and robust positioning,” industry players, as well as future 5G support for Europe’s own GPS said Carlo des Dorides, executive NR commercial network launches. The location system, Galileo into its director, European GNSS Agency. The new prototype adds to Qualcomm chips. While Qualcomm began Snapdragon modem and application Technologies’ existing 5G mmWave implementing hardware support processor platforms’ widespread prototype system, operating at 28 for Galileo several years ago in ecosystem reach can accelerate mobile GHz and capable of robust mobile select chipsets, this announcement industry support for Galileo. To date, broadband communications in non- signals the mobile industry’s first over 200 Galileo-enabled Qualcomm line-of-sight environment, utilizing pervasive, end-to-end location- Technologies-based designs are already advanced beamforming and beam- services platform for smartphone, planned, and Qualcomm Technologies steering techniques. The 5G NR computing, infotainment, telematics, expects general availability of the prototype system consists of a base and IoT applications. With these required software in the 3rd quarter of station and user equipment (UE), optimized software enhancements, 2016. IZat location solutions have been serving as a testbed for verifying 5G the Qualcomm IZat location services shipped in more than 5 Billion devices NR capabilities. It supports wide RF platform now utilizes up to six satellite globally. bandwidths over 100 MHz, capable constellations concurrently without of delivering multi-gigabit per incremental device hardware or cost. second data rates. It also supports a Users now benefit from more than 80 Qualcomm Technologies new integrated subframe design for different satellites when calculating prototype system to test, significantly lower over-the-air latency global position for navigation or demonstrate and trial 5G than what is possible in today’s 4G location-based applications. The designs to drive 3GPP 5G LTE network. The prototype system addition of another GNSS is intended continues Qualcomm Technologies’ to provide more accurate location NR standardization development and testing of their performance faster time-to-first-fix, Qualcomm products mentioned innovative 5G designs, which they and improved robustness all over within this press release are offered are actively contributing to 5G NR the world, particularly in challenging by Qualcomm Technologies, Inc. 3GPP standardization. The 3GPP 5G urban environments where the and/or its subsidiaries. Qualcomm NR study item has begun as part of combination of narrow streets and Incorporated along with its subsidiary, Release 14 and will feed into Release tall buildings can reduce accuracy. Qualcomm Technologies, Inc., 15 work items. “The 5G NR prototype “Accurate, reliable, and rapid position announced Qualcomm Technologies’ further demonstrates our leadership location is an important part of 5G New Radio (NR) prototype in developing a unified, more capable the mobile experience,” said Alex system and trial platform. The 5G 5G air interface, building upon our Katouzian, senior vice president, NR prototype system operates in long-standing expertise in delivering product management, Qualcomm the sub-6 GHz spectrum bands and OFDM chips and technology with LTE Technologies, Inc. “Qualcomm is being utilized to showcase the and Wi-Fi,” said Matt Grob, executive Technologies is helping to improve Company’s innovative 5G designs to vice president and chief technology consumers’ experiences with location- efficiently achieve multi-gigabit per officer, Qualcomm Technologies, Inc. based services by adding Galileo second data rates and low latency. “We are excited to collaborate with support to our IZat location platform 5G will make the best use of a wide leading network operators like China and deploying it broadly across our range of spectrum bands, and Mobile Communications Corporation modem and application processor utilizing spectrum bands below 6 GHz on 5G technology development and portfolios.” This feature is integrated is a critical part of allowing for flexible testing to support the work required in the latest Qualcomm Snapdragon deployments with ubiquitous network for 3GPP 5G standardization.” “We are 800, 600, and 400 processors and coverage and a wide range of use happy to be working with Qualcomm modems. Galileo will be supported on to showcase smartphones and compute devices the sub-6 GHz with the appropriate software release 5G prototype on Snapdragon 820, 652, 650, 625, system at 617, and 435 processors, automotive Mobile World infotainment solutions utilizing Congress Snapdragon 820A, and telematics Shanghai,” said and IoT solutions with Snapdragon Madam Huang X16, X12, X7, and X5 LTE Modems, Yuhong, the and Qualcomm 9x15 and MDM6x00 DGM of China modems. “The Galileo constellation Mobile Research relies on 14 satellites in orbit today. Institute. “This is Following our cooperation on a great example Galileo integration, we welcome cases. Designs implemented on the of the 5G technology collaboration the announcement that Qualcomm prototype system are being utilized to we set out to accomplish when we Technologies is contributing to the drive 3GPP standardization for a new, announced the 5G Joint Innovation rapid adoption of Galileo, in view of the OFDM-based 5G NR air interface. The Center earlier this year.”

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Regulatory NEWS

BEREC launches net rated services once the customer has used up their data allowance would contravene neutrality consultation EU net neutrality rules. Regulators would European regulator group proposes also be advised to review the market that telco watchdogs judge zero-rating, strength of the ISP offering the zero-rated ‘specialized services’ on case-by-case tariff and that of the service being zero- basis. The Body of European Regulators rated, and consider the impact that it for Electronic Communications (BEREC) could have on competition and end-user on Monday launched a consultation choice. BEREC’s consultation also contains seeking feedback on proposals for how to potentially good news for advertisers. implement the EU’s net neutrality law. The The section about prohibited traffic legislation, rubber-stamped in June 2015, management practices specifically states prevents unfair blocking and connection- that “ISPs should not block, slow down, Regulatory speed throttling, and the paid prioritization alter, restrict, interfere with, degrade or of Web traffic. However, telcos are still discriminate advertising when providing Updates allowed to provide so-called ‘specialized an IAS (Internet access service).” Ad- services’ like Internet TV, provided it does blocking would be permitted if carried out not degrade the performance of the to prevent the spread of illegal content, public Internet. BEREC’s consultation aims viruses, or to mitigate temporary network to hammer out the details, proposing, congestion. Ad-blockers installed by users for instance, in the case of specialized on their handsets would not break the services, that regulators should consider rules, BEREC said. However, it means that whether said service could be provided action taken by the likes of 3UK, which adequately using a best-effort connection. plans to trial network-level ad-blocking Furthermore, a service that is deemed to next week, could be breaking the rules. require special treatment today, might not qualify as a specialized service in future, once the general quality of the TIA Issues Comments on Internet has improved, BEREC said. The consultation also addresses zero-rating, IoT Regulation where the data traffic generated by a The Telecommunications Industry specific service or category of services, Association (TIA), the leading association such as video, is free and does not count representing the manufacturers and towards the customer’s data allowance. suppliers of high-tech communications Under BEREC’s proposed guidelines, networks, today issued comments continuing to provide access to zero- regarding the Internet of Things (IoT) to

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SAMENA TRENDS JUNE-JULY 2016 the U.S. Department of Commerce big guns at this year’s planned simpler than deciding whether offering (DOC) National Telecommunications spectrum auction. In a Financial Times content for free, such as Facebook and and Information Administration (NTIA). report on Sunday, he warned that BT in Spotify, breaches the principle of net In its comments, TIA says, “Network particular has the means and incentive neutrality, Sebastien Soriano, head of technology and interoperability to bid strategically to prevent a France’s telecoms regulator ARCEP, standards are vital elements of smaller player like 3UK from acquiring told Reuters. “This is really in the grey fostering IoT growth…Policymakers frequencies that would improve its area of the regulation,” Soriano, who should employ a technology-neutral competitiveness. “OFCOM wants will preside over BEREC next year, said. approach in order to promote the full credible operators. But to be credible The EU’s net neutrality rules, agreed spectrum of IoT offerings. The U.S. you need enough spectrum,” Dyson last year, neither explicitly allow the Government should adopt policies that said, in the report. “Hopefully OFCOM practice of zero-rating - exempting incentivize research and development will make some pro-competition certain applications from a customer’s on how to enhance underlying choices in the design of the auction.” data allowances - nor forbid it, leaving network capabilities and to maximize This could include requiring BT to hand regulators in a bind. Some countries, the use of limited resources such as back spectrum before allowing it to such as the Netherlands, Slovenia and spectrum.” TIA also warns against bid for more, he said. OFCOM plans to India, have banned zero-rating on the ignoring the connection between IoT auction 40 MHz of spectrum in the 2.3 grounds that it violates the principle verticals, saying, “Policymakers should GHz band and 150 MHz in the 3.4 GHz of net neutrality and gives some adopt a coordinated, horizontal policy band later this year. It has set a reserve applications an unfair competitive approach whenever possible, followed price of £70 million (€97 million) for advantage. “Zero-rating allows ISPs by tailoring for specific vertical the airwaves. OFCOM had planned (Internet service providers) to make applications. Past policy discussions to conduct the auction in 2015, but certain applications more attractive have developed in a vertical market it was put on hold until the European than others, thereby picking winners silos and have overlooked the relation Commission issued its decision on and losers online,” the European Digital of connected devices to the larger 3UK’s proposed merger with rival O2. Rights association said. Telecoms Internet of Things.” With that merger having now been operators argue that zero-rating is blocked, and with BT being allowed to beneficial for consumers and can be acquire EE without making significant used to give low-income customers TIA calls-out three key elements of concessions, 3UK is under intense improved Internet access, much like government policy that will allow IoT pressure to remain competitive. Dyson Facebook Inc’s attempt to offer its own to meet its immense potential: told the FT that this means improving social network and messaging service • Incentivize investment and quality by adding more base stations for free in India. BEREC’s guidelines say development of the multiple and refarming 3G spectrum for 4G that regulators should decide whether components of the IoT system; services, and focusing on being the zero-rating is allowed depending on • Adhere to technology-neutral and U.K.’s best mobile-only operator. “You the market share of both the operator competition-neutral principles have to move forward and make the and the company providing the free and; most of the cards you’re dealt even content. Soriano said that as a result, • Involve collaboration with global if you disagree with the decision,” he the issue will have to be treated on partners. said. a case-by-case basis. “Maybe in one country, one practice of zero-rating On the important issues of will be OK considering the market cybersecurity and global cooperation, EU telecom regulators shares of the operators or the partners TIA says, “Policymakers should avoid heavy-handed regulation that see free Internet services cannot keep pace with the constantly as next battle evolving threat and risk landscape Exempting some online applications, and should instead work in public- such as Facebook, from consumers’ private partnerships to collaborate on monthly data caps and treating identifying and addressing threats…. them as free is seen as the next All regulatory efforts should attempt front in a battle over how telecoms to include cross-border coordination operators can manage the traffic on and alignment with policies of their networks as regulators prepare foreign entities as the marketplace to enforce Europe’s first-ever “net for IoT goods and services will not neutrality” rules. BEREC, the body be cordoned off by geographic or comprising the European Union’s country borders.” 28 telecoms regulators, on Monday produced a set of draft guidelines ... and in other countries it will raise 3UK seeks limits to BT’s on implementing the net neutrality many problems.” For example, treating rules which require operators such a music service such as Spotify as free spectrum-buying power as Orange, Deutsche Telekom and and therefore exempting it from a Mobile operator calls on OFCOM to Telefonica to treat all Internet traffic customer’s data allowance “creates an impose restrictions on U.K. incumbent equally. Deciding whether operators economic incentive to use that music at this year’s auction. 3UK chief Dave should be allowed to devote part of application instead of competing Dyson has called on OFCOM to their network to certain services, such ones,” the guidelines say. BEREC said impose restrictions on the country’s as remote healthcare, will be much that blocking access to all content

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SAMENA TRENDS JUNE-JULY 2016 except that which is treated as free over-the-top (OTT) communication Allocation Board will ensure that the once a customer hits his data cap will providers to be subject to the same situation is addressed and that the be forbidden. But sponsored data, rules as telcos, something that the sources of interference are removed. whereby content providers such as OTTs disagree with. “Both consumers In the unlikely case that FAB is Spotify or Netflix pay operators to and the digital ecosystem will benefit unable to remove interference from a deliver their services for free, raises from more telecom innovation,” ETNO significant part of city or a region, the more difficult issues because no said. “For this to happen, the current 850 MHz operator can expect that the content is actually being blocked. sector-specific approach to service same principles will apply to it as we “Technically all the traffic is treated regulation should be abandoned to saw in the past when Zong had faced in the same way, but at the tariff the benefit of a horizontal, principle- issues for the spectrum it had bought. level, some services are untariffed based one.” The Commission is due In such cases, 850 MHz operator and others are,” Soriano said. “This to present its telecom framework may be offered compensatory question is open. This is at the heart proposals later this year. spectrum in the city or region where of the grey area of what is allowed or significant and persistent interference not.” cannot be removed. “The 850 MHz 3G/4G Auction: 850MHz must, however, expect some degree Spectrum Might Carry of co-channel interference along European telco CEOs con- Co-Channel Interference borders with neighboring countries”, front EU officials about confirmed the Auction Committee. It regulation Government may not be able to won’t be out of place to mention that offer clean (clear from interference) PTA is planning to auction a block in The CEOs of several major European spectrum in the 850 MHz range that 850MHz spectrum at a base price of telcos along with lobby group ETNO it is planning to auction next month in $395 million. met with a number of EU commissioners the upcoming Next Generation Mobile on Tuesday to advocate for a pro- Services auction. Cellular operators investment approach to regulation. “At will have to face interference issues in China Pushes for Phone a time in which Europe moves towards the 850 MHz range as some degree of Registration by Cut-Off a 5G society, ETNO companies believe co-channel interference along borders that an unequivocal pro-investment with neighboring countries will persist, Deadline stance in the upcoming telecoms documents available with ProPakistani Chinese authorities have started reminding framework review is a pre-requisite to revealed. Pakistan Telecommunication mobile users that they have to register massive network deployment,” said a Authority (PTA) on May 23 arranged their phone, or face being disconnected. statement from ETNO. The delegation an information session for prospective All numbers have to be registered by the included Eelco Blok, CEO of Dutch bidders to explain the auction 30th June 2017. Although a year away, incumbent KPN; Deutsche Telekom process, rules and other details. The a registration drive has been under way CEO Tim Hoettges; Dominique Leroy, meeting was attended by Mobilink, since 2013 and the uptake has not been CEO of Belgium’s Proximus; BT chief Telenor, World Call and Multi Net. promising. Telecom companies will start Gavin Patterson; Alejandro Plater, Stakeholders presented and raised contacting phone numbers being used CEO of Telekom Austria; and Telenor a number of questions with respect by people who have not registered using Norway CEO Berit Svendsen. ETNO’s to upcoming spectrum auction. The their real names or whose registered executive chairman Steven Tas, and Auction committee of PTA after information is incomplete or incorrect, director general Lise Fuhr, were also preparing the responses to proposals/ urging them to finish the process by the in attendance. They met with digital demands of telecom operators on deadline. If the phones are cut off, they economy and society commissioner Information Memorandum (IM) and will still be able to make emergency calls, Günther Oettinger; competition license template and shared with all and if a final notice is ignored next July, commissioner Margrethe Vestager; stakeholders. Telecom stakeholders then they will be completely shut-down. and Jyrki Katainen, vice president had raised questions with respect to As the registration for existing users has for jobs, growth, investment and 850 MHz / 900 MHz coexistence and been going slowly, the Ministry of Industry competitiveness. The European stated that Pakistan has had a mixed Commission is in the process of band plan for a long time. They said drawing up proposals to update its that co-existence between 850 MHz approach to telecoms regulation. and 900 MHz networks typically Respondents to an EU consultation requires transmit filters on the 850 on the subject earlier this year MHz base stations and receive filters on said the current framework has at least some 900 MHz base stations. stimulated competition, leading to a They further stated that 900 MHz broad choice of affordable services operators may have benefited from for consumers. However, they said the absence of a 850 MHz operator the rules need overhauling in order and omitted external receive filters on to promote investment in next- their base stations. However, with the generation networks. They also called auction of 850MHz band, the situation for a more coordinated approach to will change as operators may need to developing new standards, including install receive filters (for their 900MHz 5G, and highlighted the need for bands) in order to coexist with the 850 and Information Technology released a more flexible use of spectrum. MHz network in future. In cases where a notice on May 24 asking all telecom Unsurprisingly, operators also want interference is discovered, Frequency companies to ensure that at least 95

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SAMENA TRENDS JUNE-JULY 2016 percent of their users have registered CEO of Mobilink Aamir Ibrahim. Competition Law does not prohibit with accurate information by the end of The cellco had previously expressed bigness, monopoly or duopoly but this year and 100 percent before June its reservations over the auction prohibits abuse of dominant position.’ 30, 2017. with sector regulator the Pakistan Balisacan confirmed that Section 20 Telecommunication Authority (PTA), of the Competition Law on Mergers but its merger with Warid will also and Acquisitions states that ’merger Belgium frees up spectrum reduce Mobilink’s need for additional and acquisition agreements that for 5G testing airwaves and bar it from competing. substantially prevent, restrict or lessen The Belgian government has given Ufone, meanwhile, has also reportedly competition in the relevant market or the go-ahead to the country’s decided not to take part in the tender, in the market for goods or services telecoms regulator to open up high- leaving just Telenor and Zong of the [as] determined by the Commission bandwidth spectrum to companies incumbents to vie for the airwaves. shall be prohibited’. That being said, seeking to conduct trials of 5G mobile he conceded that the details of the technology. Alexander De Croo, whose SMC asset sale had still to be fully role includes serving as minister of Stockholm court rules ratified as the PCC is waiting for telecoms and the digital agenda, in favor of Tele2 in the National Telecommunications confirmed to Belgian newspaper ADSL case; Telia to pay Commission (NTC) to forward the L’Echo that the state instructed the relevant documents for review before Belgian Institute for Postal services USD28.7m plus interest it is signed off. and Telecommunications (BIPT) to find The Stockholm District Court has ruled spectrum that could be temporarily in favor of Tele2 in a court case over alleged market abuse in the ADSL Orange in talks with MIC sector by Telia, ordering the latter over potential takeovers to pay out SEK240 million (USD28.7 in Africa million) plus interest in compensation. In the case, Tele2 had argued that its France’s Orange Group has begun rival abused its dominant position informal talks with Millicom in the supply of broadband ADSL International Cellular (MIC) regarding connections in the early 2000s, a potential takeover of the latter’s leading it to submit a claim for losses mobile operations in Senegal, Chad amounting to a little over SEK700 and Ghana, Bloomberg writes, citing million for price squeezing in its two people familiar with the matter. wholesale rates, which Tele2 claimed The unnamed sources were quoted as were prejudicial to its ability to make saying that MIC is looking to discard a profit. The Stockholm District Court its assets in West and Central Africa, upheld its claim – in part – awarding it where it has come under pressure from regulators to extend its network allocated to businesses and research damages plus interest on the amount into rural areas. The development centers looking to undertake 5G trials. from a period starting 2005. Telia now follows Orange’s acquisition of MIC’s BIPT is already working with Ericsson have a maximum three weeks in which subsidiary in the Democratic Republic to analyze the best frequency bands to submit an appeal. of Congo (DRC), Tigo DRC, which for 5G, concentrating primarily on high was completed in late April this band spectrum, the paper explained. year. According to TeleGeography’s The state has set out a number of Competition commission GlobalComms Database, Tigo Ghana is conditions governing the temporary claims Filipino duopoly the third largest cellco in the country, licenses, including requiring that not anti-competitive with a market share of 14.0% at end- Belgian researchers or start-ups must The Manila Bulletin quotes the March 2016, behind Vodafone Ghana be involved in any project. It has yet Philippine Competition Commission (21.8%) and MTN Ghana (47.1%). In to be established how investment (PCC) as reasserting its claim that, Chad, meanwhile, Tigo has a market in 5G will be financed, but methods under current telecoms legislation, share of approximately 56.2%, whilst exist to avoid the entire burden falling the recent move by PLDT and Globe its main competitor Airtel Chad claims on operators, the report said. In line Telecom to buy out the PHP69.1 around 43.0% of the space, with state- with current thinking elsewhere in billion (USD1.48 billion) telecoms owned Groupe Sotel Tchad taking the the world, the paper added that assets of San Miguel Corp (SMC) does remaining 0.8%. Orange already has a commercial 5G deployments are not constitute an ‘abuse of dominant presence in Senegal, where it leads the unlikely to emerge before 2020. market position’. With calls growing for market by a substantial margin. The a greater examination of competition cellco already controls approximately in the Filipino mobile market – only 56.1% of the market, and a merger Mobilink confirms it last week president-elect Rodrigo with Tigo Senegal would boost that will not bid for 850MHz Duterte described the mobile market figure to around 79%. spectrum as a ‘cartel’ and called for an urgent improvement in its performance Pakistan’s largest cellco by subscribers, – PCC chairman Arsenio Balisacan Mobilink, has confirmed that it will told reporters that the Law does not not be participating in the upcoming prohibit either a monopoly or duopoly auction of 850MHz spectrum, developing, adding: ‘Let me clarify, the ProPakistani writes, citing deputy

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A snapshot of regulatory activities in samena region

Regulatory Authority (TRA), as part of Algeria the plan, is developing a mast permitting President: Mr. Mohamed project, which would also makes the Ahmed Nacer [Regulatory Authority for Post Kingdom first in the MENA region to & Telecommunication (ARPT)] establish a complete regulatory and Algerian cellcos Optimum Telecom Algerie permitting framework in this regard. This, (OTA, operating as Djezzy) and Algerie according to TRA, should enable state- Telecom Mobile (Mobilis) have applied of-the-art telecommunications wireless Regulatory for extensions of their GSM licenses, networks and facilitating innovative and which will expire on July 31 and August environment friendly small cells for paving Updates 4 respectively. Both operators have the deployment of future technologies requested a renewal of their authorizations and services. TRA is also working to for 15 years. In its 2015 annual report, introduce a centralized mast information the Regulatory Authority for Post and system to maintain all masts information Telecommunications (ARPT) said that it and automate the permitting processes. has started work on a recommendation The system is expected to speed up the for extension, as the two applications permitting process and provide on line were in line with the requirements for performance monitoring dashboards. This was revealed during a workshop held from renewal. (July 18, 2016) Agence Ecofin 15 to 16 June 2016 at TRA’s headquarters with the participation of stakeholders to commence the permitting of new and Bahrain existing masts and towers. The workshop Chairman: Dr. Mohammed was attended by representatives from Alamer [Telecommunication the Ministry of Transportation and Regulatory Authority (TRA)] Telecommunications, the Ministry of Bahrain is preparing to bring a big change Municipalities, the Supreme Council for in the telecom sector by permitting the Environment, the Civil Aviation Affairs and establishment of environment friendly the Bahrain Defense Force. Commenting masts and towers in the Kingdom, it on the move, TRA’s Director of Technical was announced. Telecommunications and Operations Mohamed Alnoaimi

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SAMENA TRENDS JUNE-JULY 2016 stated, “Since assigning the responsibility of governing web browse for the 1st quarter has reached 6.9 Mbps and permitting telecommunications masts and towers by for ADSL packages and 7.0 Mbps for Fixed wireless the new Prime Ministerial decision number 45 of 2015, packages; this translates to the time it takes for websites TRA has worked closely with the government planning to load when browsing. (June 12, 2016) www.tra.bh authorities to design necessary permitting processes and engineering specifications. It is expected that the new The Ministry of Transportation and Telecommunications processes and specifications will enable the deployment (MTT)’s Assistant Undersecretary for Bahrain Post, of environment friendly towers while ensuring the Shaikh Badr bin Khalifa Al Khalifa, headed Bahrain’s availability of latest wireless technologies.” Explaining delegation to the 27th Meeting of GCC Posts and further, Alnoaimi said, “In order to ensure the seamless Telecommunication Ministries in the Saudi capital, implementation of the permitting process, TRA will Riyadh. The meeting was opened by Saudi Arabia’s sign a memorandum of understanding with the related Deputy Governor of Telecommunication and IT Affairs government planning authorities.” The Project Manager, Authority, Dhaif-Allah bin Ahmed Al Zahrani. During Adel Alshowaikh, outlined that “In collaboration with the their meeting, the officials discussed the meeting’s planning authorities, TRA has completed the design of business agenda items, including future work plan of all necessary business processes that should be used for Gulf posts, ways of boosting cooperation in this vital permitting new and existing masts.” sector and various topics to develop the postal services (June 28, 2016) newsofbahrain.com that support government services and e-business before submission of their recommendations to the A Public Consultation Paper on Consumer Protection GCC Telecommunications Ministerial Committee. Regulation was issued by Telecommunications They also discussed several topics related to the Regulatory Authority (TRA) last week to further enhance telecommunications sector in the Gulf Cooperation coverage of consumer rights. Its necessity comes from Council (GCC) states, and topics pertaining to reviewing the need to define in detail a set of legal and regulatory the duties of the sector’s relevant committees inside the tools to ensure the protection of consumers within Secretariat, the protection of telecommunication service the Kingdom of Bahrain. “The regulation is a proactive beneficiaries in the GCC countries, the GCC indicators approach to increasing obligations to safeguard rights for the telecommunications sector as well as dialogue which the consumer will benefit from and should be with regional and international blocs to enhance the aware of”, Says Ms. Taiba Albinali, TRA’s Acting Director sector’s services and reap the benefit to users of the of Consumer Affairs and Media. “We believe that this will telecommunication services. (June 1, 2016) bahrainbiznews.com lead to a significantly improved consumer experience in the industry, and that people will have more peace of mind in using their telecom services.” The scope of the Bangladesh regulation will address misleading advertising, unfair Chairman: Sahjahan Mahmud [Bangladesh Telecommunication Regulatory contract terms, comparative advertising, billing, service Commission (BTRC)] quality levels, standard contract terms, and several other aspects. The proposed regulation presents the Telecoms groups Bharti Airtel of India and Malaysia’s opportunity to promote consumer rights and increase Axiata have deferred their agreement for merging their consumer welfare and raise awareness of the obligations Bangladeshi mobile operations until September 26, 2016 set by the regulation on service providers. TRA urges ‘or such other date as the parties may agree’, a statement stakeholders and consumers to review and provide their from Bharti disclosed on Friday evening. The merger of comments by the 3rd of July 2016 to ensure that the Airtel Bangladesh and Robi Axiata – agreed in January final regulation addresses all stakeholders input. 2016 – had originally been expected to be completed (June 16, 2016) www.tra.bh within the first half of the year.(June 27, 2016) telegeography.com

Eighty Six percent of broadband speeds are performing Telecom regulator has decided to roll out mobile as advertised, according to the latest broadband analysis number portability services this year in an effort to make report by the Telecommunications Regulatory Authority the market more competitive and improve quality, The (TRA). The report was performed based on 8Mbps, the Daily Star reported online. This will empower customers average package subscribed to by consumers for fixed to switch operators anytime without changing their broadband. The maximum speed offered by ISP’s was 11-digit number, Chairman of BTRC told reporters. If also tested to measure fixed wireless broadband. “We a subscriber becomes dissatisfied with an operator’s perform this analysis report to give consumers much services, they can immediately switch to another for a needed insight which lets them decide which broadband charge of BDT 30. They, however, will have to stick with service to choose.” Says Eng. Mohammed Al Noaimi, the new operator for at least 90 days. The services will be TRA Director of Technical Operations “We perform this licensed to only one company, which will be determined report quarterly to monitor the latest changes and through an open auction on September 21. Applications ensure the consumer has the right information available for the tender must be submitted to the regulator by to them at all times.” The TRA has published the August 11, after attending the pre-bid meetings. The quarterly Broadband Quality of Service (QoS) Report for telecom regulator fixed the price of an application form the 1ST quarter of 2016 with further enhancements and at BDT 0.1 million and BDT 1 million as earnest money new introductions to the report such as mobile voice to be paid to attend the auction. In the auction, the floor and data testing, Internet application testing as well as price will be BDT 10 million. The winning company, business broadband services. The report revealed that which will have to pay BDT 10 million as bank guarantee, the average download speed to access websites and will get the license for 15 years. It will also have to share

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5.5 percent of its revenues with the government from TE had been ongoing for a few years. However, a final the second year onwards. The operator must provide agreement with the company has not been reached the service within 180 days of getting the license or until now. “Etisalat is looking into the trade agreements face penalty. Any company owned by Bangladeshi with TE, but everything is still pending,” Metwali said. He nationals, resident or non-resident, that are registered added that there were no clear details about letters sent in the country will be eligible to bid in the auction. by the NTRA about the availability of frequencies for Foreign companies with a partnership with Bangladeshi the 4G licenses. It is expected that Etisalat will pay EGP nationals can also take part. A foreign company can 4.5bn in exchange for a 4G license. Metwali noted that hold a maximum of 51 percent shares but must invest the company has had several meetings with the NTRA, in foreign currency and they will not be able to mobilize looking into the technical, financial, and regulatory the funds from Bangladesh. (June 16, 2016) telecompaper.com conditions of offering 4G services. Clear regulatory frameworks need to be put in place, regarding the Bangladesh’s government has decided to charge cellco advantages, services, licenses, and frequencies that the Robi Axiata a total of BDT6.07 billion (US$75.7 million) company will obtain, Metwali stated. He added that in merger fees and additional spectrum charges as equality, justice, fair competition amongst operators, a condition of approval for the planned merger with and a general growth in the sector are key pillars for rival Airtel Bangladesh under the Robi name. The this framework, assuring that the service users are the Dhaka Tribune reports that the decision was taken at ones who will mainly benefit from these regulations. a meeting attended by Finance Minister AMA Muhith, Etisalat Egypt has invested more than EGP 37bn in the State Minister for Posts &Telecommunication Tarana local market since entering it in 2006. An official in one Halim, and Bangladesh Telecommunication Regulatory of the mobile operator companies, wishing to remain Commission (BTRC) Chairman Shahjahan Mahmood. anonymous, said that pending issues in the Egyptian The total amount includes BDT5.07 billion in spectrum telecommunications sector must be resolved before charges and BDT1.00 billion merger fees. The BTRC chair approving the 4G licenses and allowing TE to offer 4G as told the Tribune: ‘The figure is reasonable. Hope this a competitor. He added that TE is the sole owner of the will be satisfactory to the operators.’ Airtel’s 1800MHz infrastructure in the Egyptian market, which will allow it frequencies were awarded in 2005 for 15 years at a cost to monopolies the sector. Moreover, it will be offering equivalent to BDT15.1 million per year, compared to mobile and 4G services once it is provided with the spectrum issued in the same band in 2011 to Robi and license, which will harm the competition in the market. other operators which cost the equivalent of BDT100 The source wondered why TE was allowed to become a million per year. The government indicated in April that competitor in the mobile market, while monopolizing the if the merged Robi-Airtel intends to retain both portions sector’s infrastructure, and also owning 45% of Vodafone of 1800MHz spectrum, it will have to pay fees to match Egypt. This results in unfair market competition. the 2011 price. Bharti Airtel of India and Malaysia’s (June 28, 2016) dailynewsegypt.com Axiata signed a definitive agreement to merge their respective Bangladeshi mobile subsidiaries in January, Egypt said it will offer 4G mobile licenses in an to overtake Banglalink as the country’s second largest international auction if they are not taken up by carriers operator behind GrameenPhone, whilst reducing the already operating in the country. The sale of 4G licenses is number of market players to five. Under the agreement part of a long-awaited plan to reform Egyptian telecoms of undisclosed value, Axiata will take a 68.3% controlling and the regulator has approached the three companies stake in the combined entity, while Bharti will hold 25%, currently offering mobile services - Orange Egypt, and the remaining 6.7% will be held by Robi’s existing Vodafone Egypt, and Etisalat about buying them. Egypt’s minority shareholder NTT DOCOMO of Japan. The government will finalize technical negotiations with merger had originally been expected to be completed telecoms groups over the licenses next week and start within the first half of the year, but with approval still financial negotiations the week after, Communications pending, Bharti and Axiata have deferred the deadline and Information Technology Minister Yasser al-Kadi told for finalization of the deal until 26 September. Reuters. “If any of the companies say they don’t want the (July 13, 2016) telegeography.com 4G license we will offer it in an international auction,” he said. The reforms will enable landline monopoly Telecom Egypt to enter the mobile phone market directly, while Egypt allowing the mobile operators to offer fixed line services, Acting Executive President: Eng. Mustafa ending Telecom Egypt’s domination of the sector. Abdul Wahid Telecom Egypt will not be required to sell its stake in [National Telecommunication Regulatory Vodafone Egypt but will eventually dispose of it when Authority (NTRA)] it gets a good offer, telecommunication sources told CEO of Etisalat Egypt Hazem Metwali called for putting Reuters. The state-owned company owns a 45 percent forth fair market regulations for the mobile market in stake in Vodafone Egypt but hopes to offer mobile phone Egypt, as Telecom Egypt (TE) gets ready to launch as services itself following the introduction of high-speed the country’s fourth mobile service operator. Metwali 4G technology. Telecom Egypt said earlier this week it directed his call to the National Telecommunications was studying the terms in detail ahead of applying for Regulatory Authority (NTRA), as fourth generation (4G) the 4G license. Egypt said in 2014 when it laid out the frequencies are being introduced to the Egyptian market. 4G plan that Telecom Egypt would be allowed to offer With TE owning the telecommunication infrastructure mobile services if it paid 2.5 billion Egyptian pounds in Egypt, Metwali stated that negotiations regarding ($282 million) and sold its Vodafone stake within a year trade agreements of infrastructure rental prices with of offering the services. The government says a unified

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SAMENA TRENDS JUNE-JULY 2016 license will put all four telecoms companies on an equal next Iranian year (staring March 21, 2017). “Iran aims to footing and end a monopoly, it also hopes to collect a launch satellites to higher altitudes, which would enable total of 22.3 billion Egyptian pounds from license fees, the agency to capture more precise imaging,” he said. which will be collected in a lump sum and not over (June 28, 2016) financialtribune.com installments, Kadi said. All four companies have to submit applications for the license by the first week of The International Telecommunication Union (ITU) has August. The mobile operators will also be able to apply reinstated Iran’s license on two orbital slots, Deputy for landline and international gateway licenses. Head of Iranian Space Agency (ISA) said on June 27. (June 24, 2016) Reuters Homayoun Sadr said that at the moment, the ITU has reinstated two orbital slots for Iran, located at 34 degrees Orange Egypt said that Egypt’s telecommunications east and 24.19 degrees; “these two slots are reserved regulator has set the price of a license to provide 4G for national telecommunication satellite and a radio mobile services at EGP 3.54 billion (EUR 342.6 million), and television broadcasting satellite,” he said, adding half of which must be paid in dollars. It said in a “we can make use of the slots as soon as programs for statement on the Egyptian stock exchange that the constructing these satellites have begun.” Sadr went on regulator had set the cost of acquiring a fixed line license to add that Iran also holds rights to a number of orbital at EGP 100 million and the cost of a license to offer positions so that it will be able to make use of them customers international calls at EGP 1.8 billion. Orange one day; “the condition on being able to use an orbital said it was looking into the license offers and had yet position is to having placed a satellite there,” he said. to make a decision, Reuters reported. A spokesman According to Sadr, the ITU regulations no longer allows for the regulator has confirmed that it approached the a country to permanently keep an orbital slot; “once a three companies that currently offer mobile services in satellite’s useful life ends, countries must start planning Egypt about applying to buy 4G licenses but did not give for the next satellite to take its place,” he said. If countries details or prices. The other mobile operators in Egypt are do not intend to place a satellite in their orbital slot, the Vodafone and Etisalat. Telecom Egypt (TE) also said it had rights will be temporarily given to other countries under received a letter from the National Telecommunications an MoU, he added. “Right now, we are on our way to Regulatory Authority (NTRA) concerning its right to obtain the right to make use of our orbital slots,” he obtain a license to provide 4G services. The final terms said. The International Telecommunication Union (ITU) and conditions of the license must be decided by the headquartered in Geneva, Switzerland, is part of the first week of August, the operator said. The spectrum United Nations system. The ITU has 193 Member States award will allow TE to realize its goal of becoming an and almost 800 Sector Members and Associates and integrated operator, offering both fixed and mobile acts as a forum for governments and the private sector services. (June 20, 2016) telecompaper.com to coordinate technical and policy matters related to global telecommunications networks and services. (June 26, 2016) Mehr Iran Chairman: Dr. Ali Asghar Amidian Iran’s dominant fixed line operator, Telecommunication [Communication Regulatory Authority (CRA)] Company of Iran (TCI), has signed a EUR1 billion (US$1.13 billion) finance agreement with an unnamed overseas vendor for the expansion and upgrade of its Iran has purchased the rights to two geostationary orbit networks. The deal follows the lifting of international positions from the International Telecommunications trade sanctions against Iran earlier this year after the Union, the deputy director of Iran’s Space Agency country promised to restrict its nuclear testing program. announced. In an interview with Mehr News Agency, Alongside the new financing deal, TCI recently signed Mohammad Homayoun Sadr added that the two cooperation agreements with foreign telcos KT Corp of registered positions at 24.19 and 34 degrees will be South Korea and Kazakhtelecom of Kazakhstan, as well as used for nationwide telecommunications, TV and radio Italian equipment supplier Italtel. TCI and its subsidiaries transmissions. He also explained procedures regarding hold a virtual monopoly in Iran’s fixed telephony sector registering and maintaining positions on geostationary and it is also the largest broadband internet provider, orbit positions. According to Sadr, regulations for while sister company MCI is the country’s leading cellco utilizing geostationary orbit positions have changed in by subscribers. (June 14, 2016) IRNA recent years with lifespan and replacement of satellites being key areas of change. He added that the right to Iran is in the process of reclaiming its Mesbah satellite utilize these two positions will be granted immediately from Italy which refused to hand it over to Iran under the after Iran starts its satellite manufacturing program pretext of international sanctions on Iran, said Head of that will occupy the slots mentioned above. The the Iranian Space Agency (ISA) Mohsen Bahrami on June official underlined that Iran aims to launch indigenous 6. “Iranian researchers are now estimating the options geosynchronous satellites into orbit by 2025. “A 10-year to decide over the launch of Mesbah satellite into the plan has been put on the agenda for the construction of orbit,” he added. Iran’s Mesbah satellite was built in two remote sensing and telecommunications satellites; collaboration with Italy’s Carlo Gavazzi Space S.p.A in the remote sensing device aims to localize a satellite 1998 and was unveiled in 2005. Mesbah, a low earth capable of producing professional high precision images, orbit telecommunication satellite, was never launched while the telecommunications satellite seeks to be as both Russia and Italy refused to continue cooperation ‘world-class’, an objective that will hopefully be achieved with Iran on space projects due to the sanctions regime by 2025,” he said. Sadr mentioned the possibility of against Iran. (June 7, 2016) Mehr launching a prototype remote sensing satellite in the

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users at March 14, up from 28.2 million in February, Jordan according to data from the Nepal Telecommunications Chairman of the Board of Commissioners/ Authority (NTA). The total includes 27.26 million GSM CEO: Eng. Ghazi Al-Jobor [Telecommunication Regulatory Commission users in March, up from 26.89 million in the previous (TRC)] month, with the remaining 1.38 million use Nepal Investors have shown strong interest in starting up Telecom’s CDMA service, up from 1.36 in February. new projects in the information and communication NDCL led the country’s voice telephony services market technology (ICT) sector, the Jordan Investment in March, with a total of 14.43 million subscribers, Commission (JIC) said. In a statement, JIC President followed by Ncell with 13.63 million. Nepal had a mobile Thabet Al Wir said ICT investors have applied to build up teledensity of 106.66 percent at mid-March, while fixed projects, worth JD20 million. The projects are expected teledensity reached 3.20 percent. Nepal also had 13.2 to provide around 900 job opportunities. The JIC million data/internet services users at March 14, and an attributed the growing interest to fresh incentives and internet penetration of 50.11 percent. recent tax cuts granted to ICT investors, in pursuance (July 18, 2016) telecompaper.com of a Cabinet decision. Wir said the projects will create The Nepal Telecommunications Authority (NTA) has – as no less than 894 job opportunities for Jordanians, requested by the government last week – submitted an explaining that this month the JIC received applications amended frequency policy to the Ministry of Information for 16 ICT projects. Investors’ envisaged projects cover and Communications to allow the country’s mobile different ICT business areas, including the development operators to utilize their existing 1800MHz spectrum of software, different mobile and Internet apps, digital holdings for 4G LTE services. The annual spectrum fee for services and electronic games, Wir noted, underscoring the 1800MHz band will be increased from NPR8 million the importance of the ICT sector for the economy. Goods (USD75,500) per MHz to NPR19 million, according to a needed to facilitate the ICT projects, whether imported report from the Kathmandu Post. 1800MHz frequencies or purchased from the local market, will benefit from a are currently being used for 2G services in Nepal, but zero per cent sales tax. Wir urged investors to benefit the government is looking to encourage operators to from current incentives and start up ICT projects that can launch 4G technology. Alongside the 1800MHz plan, the create jobs and provide a chance to make use of and NTA has also amended the policy to allow existing 2G further build young people’s innovative skills. In April, 900MHz spectrum to be opened for 3G services, with the government endorsed a set of incentives to boost the annual spectrum fee rising from NPR12 million growth in the ICT sector, whose contribution is deemed per MHz to NPR24 million. The changes only apply vital to the country’s gross domestic product. The ICT to those operators holding unified licenses, i.e. Ncell, sector’s revenues dropped by 14 per cent in 2014 Nepal Telecom (NT) and Smart Telecom. According to compared to 2013, down to JD546 million, according TeleGeography’s GlobalComms Database, Nepal was to figures of the ICT Association of Jordan (int@j). The home to around 26.6 million mobile subscribers at the decline was attributed to several local and external end of March 2016, split between Ncell and NT, while factors, including lack of incentives in previous years to Smart offers GSM-based limited mobility services (LMS) boost the sector. (July 17, 2016) zawya.com to around 1.4 million users. (July 8, 2016) telegeography.com

Kuwait The government of Nepal has begun the process of Chairman and CEO: Salim Alozainah converting existing wireless licenses to technology [Communication and Information Technology neutral permits, enabling operators to use their current Regulatory Authority (CITRA)] 1800MHz frequency holdings to offer 4G LTE services. A report from the Kathmandu Post says the Ministry of Kuwait’s Zain has reached out to Egypt’s Information and Communications (MoIC) has already telecommunications regulator to register a preliminary decided to adopt a technology neutral approach interest in obtaining a 4G mobile concession, according and has called on the industry regulator, the Nepal to a report from Reuters, which cites a bourse filing made Telecommunications Authority (NTA), to devise an by the operator. In this, the Kuwaiti company confirmed action plan for the conversion of licenses. The Ministry it ‘is studying a number of investment opportunities is expecting that the country’s two mobile operators – available in the region, one of which is the Egyptian Ncell and Nepal Telecom (NT) – will be free to launch 4G telecommunications market as a strategic market in services as early as the middle of next month. Separately, the Middle East and Africa’. It is understood that the the MoIC has also asked the NTA to prepare a detailed approach by Zain to the Egyptian authorities has been work plan on how best to spend money held in the Rural made through one of its subsidiaries. Telecom Development Fund (RTDF), which is contributed (July 18, 2016) telegeography.com by telcos and supports infrastructure rollouts in rural areas. In August 2015 the government unveiled plans Nepal to spend NPR1.48 billion (US$14 million) from the Chairman: Mr. Digambar Jha RTDF in the fiscal year to mid-July 2016. The planned [Nepal Telecommunication Authority (NTA)] investment represented just 14% of the funds available under the RTDF at that time. The investment has gone towards four main projects: the District Optical Fiber Nepal reached 30.3 million voice telephony subscribers Project (NPR1 billion of the total spend); broadband at March 14, up from 29.9 on February 13. The country’s infrastructure development in 14 earthquake-affected mobile voice subscriber base amounted to 28.6 million districts (NPR330 million); the establishment of one

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SAMENA TRENDS JUNE-JULY 2016 model e-village development committee in each of the telephone lines, including post and prepaid, public, WLL, country’s 75 districts (NPR75 million); and the extension and ISDN channels registered a growth of 3.6 per cent, as of internet services to 500 rural community schools and of the end of April, compared with the end of 2015. The colleges (NPR75 million). (June 27, 2016) telegeography.com fixed telephone subscriber base stood at 450,443 at the end of April, up from the end of 2015, while the number Cadres of a hardline Maoist group in Nepal today set on of telephone lines was pegged at 446,918 last March, fire five towers of a private telecommunication company according to the figures issued by the National Centre across the country. As some leaflets, published by the for Statistics and Information (NCSI). Among fixed lines, Netra Bikram Chand-led CPN-Maoist, were recovered fixed prepaid (card fixed) telephones witnessed a growth from some sites, police suspected that the party of 8 per cent, taking the total to 60,475 lines, while post- made the multiple attacks on the telecom company. paid connections stood at 336,175. The Sultanate had a According to the Nepal Police Headquarters, the towers total of 6,801 public telephones by the end of April this in Shivasatakshi of Jhapa, Kubhinde Daha of Salyan, year. The number of integrated services digital networks Laxmipur of Dang, Ashrang of Gorkha and Yangsila of (ISDN) stood at 45,238, whereas the number of wireless Morang districts were set on fire by the Maoist cadres. fixed lines slipped 1 per cent.(June 18, 2016) world.einnews.com Equipment worth thousands of rupees were destroyed in the arson attacks, police said. The Ncell has recently come under attack from various corners for refusing Pakistan to pay the capital gains tax it owed to the government Chairman: Dr. Syed Ismail Shah when TeliaSonera sold Ncell for Rs 143 billion equivalent [Pakistan Telecommunication Authority (PTA)] to 1.40 billion US Dollar to Axiata Group. (June 24, 2016) telecom.economictimes.indiatimes.com ITU-PTA Asia-Pacific Regulators’ Roundtable” and the Nepal reached 29.9 million voice telephony subscribers “ITU-PTA International Training Program (ITP) 2016” at February 13. 2016, up from 29.2 in December 2015. started in Islamabad under the aegis of Pakistan The country’s mobile voice subscriber base amounted Telecommunication Authority (PTA) and International to 28.2 million users at February 13, 2016, up from 27.51 Telecommunication Union (ITU). Representatives from million in December 2015, according to data from the more than 20 countries from Asia Pacific Region are Nepal Telecommunications Authority (NTA). The total participating in the events. The Chief Guests of the includes 26.89 million GSM users in February this year, inaugural ceremony of this event were Anusha Rahman up from 26.18 million at end-2015, with the remaining Khan, Minister of State for Information Technology and 1.36 million use Nepal Telecom’s CDMA service, up from Telecommunication and Houlin Zhao, Secretary-General, 1.33 in December 2015. (June 20, 2016) telecompaper.com ITU. Chairman PTA Dr. Syed Ismail Shah welcomed the guests. Members of PTA, Members of Ministry of IT, and regulatory heads of different countries, Oman representatives from telecom mobile operators, internet Executive President: Dr. Hamed Al-Rawahi service providers, academic institutions, banks, ICT [Telecommunication Regulatory Authority entrepreneurs, and commercial companies attended the (TRA)] event. On this occasion Secretary General ITU said that it is a great pleasure and a privilege to be at the Asia- Oman is going totally mobile and it now has 2,235,488 Pacific Regulator’s Roundtable jointly organized by the more mobile subscriptions than the number of people in PTA and the ITU with support from the Department of the Sultanate, according to the latest statistics from the Communications and the Arts, Government of Australia. Telecom Regulatory Authority (TRA). There are 6,661,166 “At this esteemed Roundtable, we are greatly honored mobile subscribers in Oman, a country with population by the presence of high level regulatory and policy of 4,425,678. That is around 1.5 mobile subscriptions decision makers from more than 20 countries from the per capita. The penetration of mobile subscriptions Asia-Pacific region and beyond”, said Secretary General (155% per inhabitants) surpassed fixed line (10.11% of ITU. He further said that this Regulators’ Roundtable inhabitants) and fixed Internet (41.04% of households) for Asia-Pacific 2016 is of particular importance as it penetration in 2015 end, according to the Report for is the first Symposium in this region since the United the Indicators of Telecom Sector of Oman, issued by the Nations General Assembly adopted the Sustainable Telecommunication Regulatory Authority (TRA). Prepaid Development Goals (SDGs), otherwise referred to as the mobile subscribers by the end of April 2016 stood at 2030 Agenda for Sustainable Development. He said that 6,063,434, up from 6,045,312 in March last year, while ICTs are the foundation upon which economic and social post-paid mobile connections stood at 597,732 by development can grow. “ICTs have incredible potential to the end of April, up slightly from 597,558 subscribers improve development outcomes in both the developing at the end of March last year. The number of internet and the developed world. All three pillars of sustainable subscribers at the end of April rose to 256,834, from development — economic development, social inclusion 252,886, a year ago in March. The number of subscribers and environmental protection — need ICTs as key for fixed broadband, including DSL and WiMAX-leased catalysts, and ICTs will be absolutely crucial for achieving lines experienced a 9 per cent fillip at the end of April the SDGs”. He said that the Asia-Pacific Region took to reach 254,178 subscribers. NCSI data also showed its own initiative to organize this annual roundtable to a growth of 4 per cent in the number of active mobile provide telecommunication/ICT regulators in the region broadband subscribers to over 3,385,544 at the end of with a platform that fosters dynamic and strategic April, up from 2015. The Sultanate’s total number of fixed discussions, as well as sharing of information, relevant

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SAMENA TRENDS JUNE-JULY 2016 experiences and practices and to conclusively debate ignore a Memorandum of Understanding sent to Kabul on possible solutions and opportunities for potential in this regard. In their continuing efforts to curb terrorist collaboration to address emerging regulatory issues and activity, Chairman Pakistan Telecommunication Authority challenges. He said that ITU will also like to contribute (PTA), Dr. Ismail Shah said: “Yes, we will raise the issue of to Pakistan telecom sector and would sponsor more spillover effects of mobile signals in the bordering areas ITU training programs in future in Pakistan to further with Afghanistan during the upcoming international develop the capacity of telecom sector. On this occasion, conference of regulators in which representatives of Anusha Rahman Khan said that presence of Secretary 23 countries belonging to Asia Pacific will participate.” General of ITU is a big achievement for the telecom Representatives from several countries of the region sector of Pakistan. She also appreciated the role PTA will be attending the conference including China, India, in organizing Asia-Pacific Regulators’ Roundtable” and Iran, Afghanistan, Bangladesh and others. PTA is also International Training Program. The Minister said that organizing the Asia-Pacific Regulators Roundtable for the traditional regulatory rules have diminished and the the first time in Pakistan. The conference will serve as telecom regulators are now emerging in the new digital a platform for telecommunication/ICT regulators in the era. Pakistan is passing through telecom revolution and region that fosters dynamic and strategic discussions, this revolution is witnessed everyday when telecom sharing information, relevant experiences, and practices. companies get more and more subscribers in the (July 18, 2016) The News 3G/4G segment. ICTs have become a way of life for Pakistan. She said that potential of ICTs is to be used Norwegian-backed cellco Telenor Pakistan has for innovation and technological advancements. For this challenged the government’s imposition of a 10% sale we need to review the policies all the time and we need tax on its recent award of 850MHz spectrum, ProPakistani to look at regulatory paradigms that control the frame reports, citing a petition filed by the operator with the works. She said that the government of Pakistan fully Islamabad High Court. The spectrum was auctioned realizes the potential of ICTs which is to be used to spur earlier this month and, as the only operator to submit socio economic growth and now the time has come the an offer, Telenor won the tender with a bid of USD395 digital Pakistan is the only way forward. She said that million. The cellco has deposited half of the spectrum 3G/4G/LTE services had started from November 2014 fee and had agreed to pay the remainder in five equal and around 32 million mobile broadband subscriptions installments, but the Pakistan Telecommunication have been added. She said that people of unserved/ Authority (PTA) has withheld the concession until Telenor underserved areas are benefiting with the technological pays advance income tax of US$39.5 million, or 10% of advancement in the country. The Minister praised the the total auction price. According to the Norwegian- role of PTA in organizing Regulators’ Roundtable” and owned provider, the Federal Board of Revenue (FBR) International Training Program. Chairman PTA Dr. Syed has ‘grossly misinterpreted and twisted the law’ and the Ismail Shah — in his welcome speech — said that the deduction of withholding tax of 10% of the gross sale theme of this conference is “collaborating regulations price is unlawful. In its petition, the cellco explained that for smart digital society”. Chairman said that our vision the transaction cannot be called a ‘sale’ as there has is vibrant telecom market with affordable access to been no transfer or property, pointing out that: there services for consumers of all strata. This is fully aligned is no property to transfer, no current owner (it states with the vision of ITU. We all have benefited from the that the government does not own the frequencies, principles and standards of ITU like IT advanced, IT 2020 only the right to control the resource) and no transfer most popularly known as 3G/4G and 5G technologies of title. Further, the license does not grant Telenor by providing meaningful input into all other areas. “I any proprietary rights, only permission to use radio am sure that every regulator of the region is playing its spectrum. (June 29, 2016) telegeography.com crucial role for the provision of better telecom services to the consumers. However, we the regulators need to PTA’s latest report for the month of May demonstrate re-imagine our regulatory approach in the wake of new Pakistan’s over-all Cellular Subscribers. Indicators for trends and challenges”, Chairman PTA further added. It increase in May-16 are under observation according may be mentioned that, ITU-PTA Asia-Pacific Regulators’ to the PTA’s statistics. The number of mobile subscriber Roundtable” and the “ITU-PTA International Training improved from 132 Million in April to 133 Million in Program (ITP) 2016”are being held for the first time in May. The number of 3G & 4G mobile users stretched 29 Pakistan. (July 18, 2016) propakistani.pk million. The cellular Teledensity reached 69.34%. In May- 16, Ufone again lost its 388,067 subscribers. At the same Pakistan has decided to take up the issue of spillover place Warid increases 0.1% as was in the previous month. effects of mobile signals coming from Afghanistan at the Here are the graphs that are showing increase/decrease upcoming Roundtable International Conference to be in cellular subscribers. According to PTA’s statistics, here held in Islamabad from July 18 – July 22. Pakistan has long are the details for 5 Pakistani 3G/4G operators. Namely been trying to block mobile signals from Afghanistan in Telenor, Ufone, Mobilink, Warid and Zong by May 2016. order to control terrorist activity. The PTA has blocked • Mobilink: With 38.5 million at the end of April-16 several Afghani SIMs after they were linked to suspicious Mobilink reached at 38.9 million at the end of May- activities in the country. However, those SIMs still work 16. along the Pak-Afghan border due to the spillover effect • Telenor: With 37.4 million at the end of April-16, of mobile signals. Following the Peshawar APS Massacre, Telenor reached at 37.9 million at the end of May- PTA raised concerns that Afghan telecom companies 16. should block their signals along the border. There have • Zong: With 24.9 million at the end of April-16, Zong been no optimistic turnouts as Afghanistan continues to reached at 25.1 million at the end of May-16.

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• Ufone: With 20.7 million at the end of April-16, fiscal year, but revenues continued to decline. The Ufone decreased and reached at 20.3 million at the sector’s monthly revenue has declined by Rs1.6 billion end of May-16. per month in the outgoing fiscal year compared to the • Warid: With 11.0 million at the end of April-16, previous fiscal year. From the month July to March, Warid reached at 11.1 million at the end of May-16. the total investment observed was $589. It covers the (June 17, 2016) phoneworld.com.pk investment from entire sector which includes Long Distance and International and Local Loop segments. The government may not be able to present clean (clear The survey says that: “…operators are adding back from interference) spectrum in the 850 MHz range (3G) customers that were lost due to blocking of SIMs during for auction to the Cellular Operators in the upcoming biometric re-verification drive last year.” One of the Next Generation Mobile Services process, it is learnt. major reasons for the decline in the investment is the Cellular operators will have to face interference issues heavy taxes paid by the cellular companies. Telecom in the 850 MHz range as some degree of co-channel sector has paid a sum of Rs105.92 billion in duties, taxes interference along borders with neighboring countries and levies to the national exchequer in 9MFY16. This will persist, official sources revealed to Business Recorder calculation suggests that full-year tax payment to the on Saturday. Pakistan Telecommunication Authority government would surpass previous fiscal year’s taxes of (PTA) on May 23 arranged an information session for Rs.126.26 billion with the addition of last quarter (Apr- prospective bidders to explain the auction process, rules June 2016) taxes – estimated to be Rs. 35.30 billion. The and other details. The meeting was attended by Mobilink, survey suggests that Pakistan’s telecom industry can Telenor, World Call and Multi Net. The stakeholders improve its revenue generation by expanding their value presented and raised a number of questions with respect added services and entering into new avenues of growth to upcoming spectrum auction. The auction committee such as branchless/ mobile financial services and other of PTA has prepared response to proposals/demands of ICT enabled services in collaboration with other service Telecom Operators on Information Memorandum (IM) providers in the economy. PTA survey also gives the ray and license template and shared with all stakeholders. of hope by proving the increased number of people Telecom stakeholders raised questions with respect to from the last year. At the end of April 2016, the number 850 MHz /900 MHz coexistence and stated that Pakistan of mobile phone users has surged to 132.65 million as has had a mixed band plan for a long time. Further co- compared to 114.65 million at the end of the previous existence between 850 MHz and 900 MHz networks fiscal year on June 30, 2015. Telecom Policy 2015 is typically requires transmit filters on the 850 MHz aimed at facilitating the attainment of an all-embracing base stations and receive filters on at least some 900 national agenda and to transform Pakistan into an MHz base stations. They further stated that 900 MHz economically vibrant, knowledge-based, middle-income operators may have benefited from the absence of an country by 2025. (June 3, 2016) phoneworld.com.pk 850 MHz operator and omitted external receive filters on their base stations. This situation will persist, and may The Pakistan Telecommunication Authority (PTA) has need to install receive filters in order to coexist with the received a single bid for 3G/4G compatible spectrum 850 MHz network in future. In cases where interference is in the 850MHz band, the regulator announced today. discovered, Frequency Allocation Board (FAB) will ensure Norwegian-owned cellco Telenor Pakistan was the only that the situation is addressed and that the sources of provider to submit an offer by the deadline, which closed interference are removed. In the unlikely case that FAB is yesterday. The sole concession consists of 2×10MHz at unable to remove interference from a significant part of 824MHz-834MHz/869MHz-879MHz and is valid for city or a region, the 850 MHz operator can expect that 15 years, with a reserve price of US$395 million. In its the same principles will apply to it as have applied eg to statement, the PTA notes that on May 23 it held an Zong in the 900 MHz and 2100 MHz band. This means ‘information session’ with prospective bidders including that under some circumstances, the 850 MHz operator Mobilink, WorldCall and Multinet.(June 2, 2016) telegeography.com may be offered compensatory spectrum in the city or region where significant and persistent interference cannot be removed. “The 850 MHz must, however, expect Qatar some degree of co-channel interference along borders President: Mr. Mohammed bin Ali with neighboring countries”, operators added. The PTA Al Mannai auction committee responded that their understanding [Communications Regulatory Authority (CRA)] about the discussion was correct. The spectrum in the Qatar’s mobile subscriber base may end 2016 with 850 MHZ range, the government is going for auction will 4.86mn mobile subscribers, and rise to 5.42mn by 2020, have interference issues, especially in the borders areas, BMI Research has said in its latest report. The Fitch the official added. China Mobile Pakistan (CMPak) had Group company maintains its prediction that broadband sent a legal notice last year to the PTA demanding that subscriber numbers will grow steadily from an estimated it be allocated a substitute band of spectrum as well as 527,000 at the end of 2015 to more than 803,000 by a partial refund of its spectrum costs and $40 million in end-2020. This will be equivalent to a penetration rate damages for loss of market share and loss of revenues. of 32.7%, up from 23.6% in 2015. BMI has left its 3G (June 3, 2016) Business Recorder and 4G subscriber forecasts unchanged this quarter (Q3, 2016). Growth has historically been strong and BMI According to the Pakistan economic survey 2015-16, predicts that 3G/4G penetration will reach 60.8% in 2016; cellular mobile operators invested US$557.3 million to jumping to over 3.98mn 3G and 4G enabled phones by upgrade their 3G/4G broadband networks in the first 2020, with a market penetration of 73.5%. “There are nine months (July 2015 to March 2016) of the outgoing many upsides to our 3G forecast as heavy infrastructure

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SAMENA TRENDS JUNE-JULY 2016 developments by Ooredoo in the 3G, 4G and 5G sector, retail level to encourage service providers to develop such as Ooredoo Qatar and Nokia Networks launching better services and innovative products, said the an LTE-advanced (LTE-A) network in Qatar in December,” report. “As the report outlines, the hallmarks of Qatar’s BMI said. The Fitch Group company maintains a “positive regulatory framework will remain predictability and outlook” for Qatar’s telecommunications sector. A clarity, ensuring that Qatar continually enhances its rich booming construction sector fuelled by infrastructure landscape of services. We will continue to analyze the investments linked to the 2022 FIFA world cup buoyed state of competition in the telecommunications market the telecoms sector growth in 2014 and 2015. Migrant and determine where further measures are needed to workers and their families have buoyed the adoption develop communications services, including in the fixed of mobile and wireline broadband subscriptions over market,” said Mohammed Ali Al Mannai, President of the past two years. This trend is expected to continue CRA, while releasing the report. The report indicates throughout BMI’s 2015-2020 forecast period. BMI that the telecom market is healthy and growing, and expects the increase in competition in Qatar’s 4G market investment remains strong, with increased revenues, to stimulate aggressive network expansion and service new products, and overall net profits. Both Ooredoo pricing strategies by the country’s service providers. This and Vodafone Qatar invested in their networks with the development, along with the proliferation of affordable launch of LTE/LTE+ networks in 2014–15. Competition smartphones, will drive mobile data subscriptions in mobile has developed, although competition in fixed in the country. By 2020, there will be 3.98mn 3G/4G lines has yet to fully emerge, which will impact the future subscriptions, or 73.5% of the overall mobile market. BMI growth of that sector. Consumers are benefiting from has based its forecast on a number of industry-specific wide-ranging consumer protection efforts, including a and macroeconomic factors, notably price competition, dispute resolution mechanism, a new advertising code aggressive network expansion, declining average selling of conduct, the Consumer Protection Policy (CPP), and a price (ASP) of smartphones, and Qatar’s strong private mobile app—Arsel—that allows dissatisfied consumers consumption growth outlook over its forecast period. to send instant comments and feedback to CRA directly. “We believe that lower tariffs and cheaper smartphones “While a great deal of work has been done in the area will drive uptake among migrant workers, arguably the of consumer rights, CRA is continuing to strengthen fastest growing consumer segment owing to the influx the codes and frameworks that will protect consumers of construction workers and other expatriates involved in the future,” said the report. A robust regulatory and in the country’s preparation to host the 2022 FIFA World legal framework that supports the development of the Cup,” BMI said. BMI believes the rising take-up of mobile sector continues to be put in place. A recently developed data services will also help sustain Qatar’s ARPU levels competition policy framework is aimed at creating during its forecast period. Although competition has a certain and stable environment in which market forced Ooredoo’s ARPU down nearly to the same level participants understand under what circumstances as Vodafone’s over the last year, BMI expects neither CRA will undertake investigations into anti-competitive operator will be interested in pushing these down much behavior—targeted at segments that pose challenges in further than the present level. “The duopoly in the the delivery of effective competition and good outcomes market will therefore act as another important buffer for consumers. Terms and conditions for access to and/ against faster ARPU depreciation in Qatar throughout or sharing of civil infrastructure have been put in place. A our forecast period. We do highlight the risk that large-scale survey of consumers in 2014 found that while devices such as tablets, with a lower ARPU, might dilute a majority of telecommunications users in the country are the overall figure should uptake continue to increase. generally satisfied with the quality of service offered by Vodafone could also use price competition to attract their service providers, pricing, rate plans, and complaint users onto its network,” BMI said. (July 17, 2016) zawya.com resolution were cited as key areas for improvement. From February 2014 to December 2015, CRA resolved 99 The telecommunications market in Qatar is witnessing percent complaints and inquires (3,586) that consumers a steady growth with around 5 million fixed line and couldn’t resolve with their service providers. CRA issued mobile subscriptions (including broadband) and market 5,492 spectrum licenses, 2,278 Type Approvals for revenue of over QR10m last year, says the first annual Radio and Telecommunications Terminal Equipment report of the Communications Regulatory Authority (RTTE), 1,839 frequency assignments, and 1,233 new (CRA). Fiber broadband connection speeds in Qatar reach Import Authorization licenses for RTTE, investigated 115 up to 100Mbps. Qatar has one of the highest mobile interference cases, and conducted 18 QoS investigations. SIM penetration rates in the world, and competition has A total of 75,044 customs clearance applications were brought significant uptake in mobile data services, says also processed. The number of registered domains in the report. The report highlights the progress CRA has Qatar reached 21,113. (June 14, 2016) thepeninsulaqatar.com made in promoting competition and safeguarding the interest of consumers, contributing to Qatar’s transition to a smart, digitally connected nation with a growing, Saudi Arabia diversified economy. CRA is developing a quality of Governor, Deputy Chairman of the BoD: service (QoS) framework that will make the performance Dr. Abdulaziz Bin Salem Al Ruwais obligations of networks and service providers clear. It [Communication & Information Technology is also focusing on regulation in wholesale markets to Commission (CITC)] decrease retail regulation, which is expected to benefit Saudi Arabia’s regulators plan to inspect local mobile fixed lines in particular, and to reproduce some of the phone retailers to ensure that at least half the employees steady growth in mobile. The intent is to gradually are native Saudis. The government announced earlier remove, where possible, intrusive regulation at the this year that it will ban foreign staff from working in

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SAMENA TRENDS JUNE-JULY 2016 the mobile phone retail sector, and set a deadline of this week for at no more than half of staff to be foreign Sudan Director General: Dr. Yahia Abdalla nationals. By the September 3, all staff will have to Mohamed be Saudi nationals. The Ministry of Commerce and [National Telecommunication Corporation Investment (MCI) said that will start inspections of (NTC)] stores this week to ensure they have complied with the Sudan’s Bank of Khartoum has agreed to buy Abu first deadline. Businesses not complying with the new Dhabi-listed Etisalat Group’s 92.3 percent shareholding regulation will face penalties under the provisions of in Sudanese fixed line operator Canar for 349.6 million the Anti-Commercial Concealment Law. If found guilty, dirhams ($95.2 million), Etisalat said. The deal comes the business owner could face up to two years in jail, after Bank of Khartoum, which already owns 3.7 percent and if a foreign national, would be deported from the of Canar, exercised its right as a shareholder to block country afterwards. Saudi nationals would be banned an agreement by Etisalat to sell its stake to Kuwaiti from operating a phone retail store for five years. telecommunications firm Zain, Etisalat said. Etisalat (June 7, 2016) cellular-news.com had announced the agreement with Zain at the same price on May 2, subject to approval from Sudanese authorities. A spokesman for Zain told Reuters that the Sri Lanka company had nothing to add beyond Etisalat’s statement Director General: Mr. Sunil S. Sirisena and that Zain’s offer remained valid until any deal with [Telecommunication Regulatory Commission another party was concluded. Etisalat’s deal with Bank (TRC)] of Khartoum, Sudan’s biggest privately owned bank, Sri Lankan mobile operators Dialog Axiata and remains subject to certain conditions, including the Mobitel recently carried out trials of LTE-Advanced Pro approval of Sudanese authorities, Etisalat said. The Abu technology. The test was carried out on its LTE network in Dhabi firm took a stake in Canar in 2004 and three years partnership with Chinese vendor Huawei, Dialog Axiata later spent 584 million dirhams to more than double its said. “The demonstration established the capability holding. But in 2012 it took an impairment charge of 459 of the network to deliver throughputs in excess of 1 million dirhams on its investment because of inflation, [gigabit per second] on the LTE Radio (Air) Interface, currency moves and difficult economic and political setting a solid foundation for the future evolution of conditions in Sudan. Mobile phone penetration in Sudan the nation’s 4G services to a technology generation well was 72 percent in 2014, according to the International ahead of neighboring markets,” Dialog Axiata said in a Telecommunication Union, placing the country 165th statement. “Following the ‘4.5G’ technology capability globally and indicating substantial growth potential. test, Sri Lanka joins a select circle of 20 countries where (June 13, 2016) arabianbusiness.com 4.5G capabilities have been demonstrated,” the operator, which initially launched commercial 4G LTE services in 2014, said. Mobitel also confirmed it has reached Tunisia speeds exceeding 1 gigabit per second in its trials of President: Prof. Hichem Besbes LTE-Advanced Pro technology with partners Huawei [National Telecommunication Commission and ZTE; tests were conducted in a Mobitel facility. (INTT)] “Having successfully tested the 4.5G LTE-Advanced Pro Tunisia and India have signed agreement for technology, Sri Lanka telecom Mobitel is looking forward strengthening bilateral cooperation in the field of IT, to commercially deploy the 4.5G services to the nation telecom and digital economy. “The Union Cabinet for further strengthening the evolving [information and under the Chairmanship of Prime Minister has been communications technology] industry,” Mobitel said in apprised of a Memorandum of Understanding (MoU) a release. However, the telco did not provide further signed between India and Tunisia on June 2, 2016 for information on the future launch. ZTE partners with strengthening bilateral cooperation in the field of China Mobile Research Institute to complete 5G high- Information and Communications Technology (ICT) frequency technology phase test. In other APAC news, and Digital Economy,” an official statement said today. Chinese ICT services provider ZTE has completed its The agreement intends to foster active cooperation prototype verification and performance testing of key and exchange between private entities, governments, “5G” high-frequency technology in partnership with the institutions involved in enhancing capacity building China Mobile Research Institute in Shanghai. The joint and other public and private organizations of the two test verified multiple technical performance indicators, countries in the field of ICT and Digital Economy, it including indoor transmission performance of the 5G added. (July 21, 2016) telecom.economictimes.indiatimes.com high-frequency prototype in the 15 GHz band, single- user peak rate, transmission rate in line-of-sight/ The Tunisian government is planning to list a portion of non line-of-sight scenarios and indoor penetration loss its 65% stake in incumbent telco Tunisie Telecom (TT) on and coverage. The test achieved a single-user peak rate the local bourse. Minister of Information Technologies over 3.7 gigabits per second and service transmission and Communication Noomane Fehri announced the performance for direct wave, reflection and transmission plan but did not specify how much of the government’s scenarios were deemed good. “High-frequency stake would be sold off. The funds will be used to help communication is one of the key 5G technologies. It drive international expansion, with the operator set to takes advantage of broadband transmission to multiply acquire GO Malta, as well as its domestic development system capacity and can be applied in hot-spot large- plans. Mr. Fehri explained that the state’s resources alone capacity scenarios,” the vendor said.(June 22, 2016) rcrwireless.com would be insufficient to support the telco’s plans, so the decision was taken to expand the company’s ownership. (June 6, 2016), Agence Ecofin

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Department and TRA spokesperson, Khaled Al Awadhi, United Arab Emirates said, “The UAE’s participation in the seminar as official Director General: Hamad Obaid Al speaker is a significant step for the country as a trusted Mansoori [Telecommunication Regulatory Authority nation capable of leading such events and confirms our (TRA)] established partnership with the ITU in various initiatives Telecommunications Regulatory Authority (TRA) has for the sector.” This is not the first time the UAE has been launched ‘Erteqa’ a new initiative which aims to increase invited to lead as an official speaker in global seminars the level of customer services across the telecoms and this reflects upon our ability to discern the weak sector in the country. It will adopt six major standards and strong points and present ideas transparently, he for the evaluation of customer service centers and said. “The UAE’s leadership in telecommunications is several minor criteria including rating the ease and central to the TRA’s strategic goals and we are working smoothness of service delivery and the customer’s to achieve this through technical and infrastructure experience with employees in terms of professionalism, developments as well as strategic partnerships. Leading efficiency and interaction. The ratings standards will also the Preparatory Meeting for WRC-19 is another assess the service centers’ facilities, prominent display testament of the country’s position globally as a trusted of products and services, as well their innovativeness. partner in telecommunications.” Al Awadhi added Hamad Obaid Al Mansoori, the Director General of the “The TRA has proposed various technical aspects that TRA, said: “At the TRA, we believe that the customer require close collaboration between the telecoms and should be at the heart and priority of our services to space sectors, especially in terms of enhancing the achieve excellence and promote leadership.” The UAE, quality of telecommunications services and providing he stated, puts its own touch when it comes to quality customers with easy access and reach as our way of and excellence. “This unique effort makes our standards helping our customers achieve happiness.”The TRA has different from anywhere else in the world, as we work to discussed the importance of using space services and always become number one in our initiatives – having providing new frequencies that can accommodate 5th learned from our wise leadership to not compromise generation mobile devices, which will require expanding on excellence,” remarked Al Mansoori. Saleh Al Abdooli, broadband services or improving the efficiency of the CEO of Etisalat Group, said: “It is our honor to be current capabilities. The TRA has discussed broadband part of the ‘Erteqa’ initiative, which reflects the strategic application using satellites to serve the aviation sector orientation of the UAE Government to promote which will allow airlines to easily provide high-speed happiness for individuals and society.” “In response to internet connection in-flight. At present, there are some this initiative, Etisalat will mobilize our resources and technical challenges to fully offer Internet connection human abilities towards innovation in the various fields while onboard flights because of lack of capabilities to promote our services to a level where we can achieve and high cost. Al Awadhi stated that the federal agency the highest customer satisfaction and happiness,” he was invited to become part of an initiative to develop added. Osman Sultan, the chief executive of Du, said: the Global Maritime Distress and Safety System, an “We are fully committed to following the methodology electronic identification technology which will track set forth by the TRA, and we are proud to play our role in ships navigating across oceans to ensure their safety developing services that enhance the happiness levels of from pirates and immediately get a response during individuals and communities in our society.” “As we grow emergencies. The project can be done by allocating our Smart City, we have come to the realization that new spectrum bands. “Emirati engineers are very telecom services play a key role in day-to-day life and much capable of contributing significant innovation in we are completely dedicated to steadfastly digitizing the space sector as we have seen them launch many and developing smart telecommunications services projects under the sponsorship of technology firms and throughout the UAE. We are working hand in hand with service providers. The TRA is continuously working to our partners in this initiative, TRA and Etisalat, for the meet the requirements of those projects which may benefit our country and its progress,” he added. need to be tested and applied internationally. This is (June 24, 2016) TradeArabia News Service where we come in - to facilitate their implementation through coordination with ITU,” Al Awadhi emphasized. Telecommunications Regulatory Authority (TRA) is The TRA won the chairmanship of the WRC 2019 discussing plans to allocate new bandwidth frequencies Preparatory Meeting during its participation at the Radio compatible with 5G mobile networks, enable airlines Communication Assemblies meetings held in October to provide high-speed broadband internet connection 2015. (June 15, 2016) emirates247.com during flights at lower costs, and develop a global maritime distress system. These initiatives were revealed during its The UAE’s Telecommunications Regulatory Authority participation at a recently-held seminar organized by the (TRA) says it has held a high-level meeting with a International Telecommunications Union (ITU) in Geneva. delegation from the Communication and Information The TRA, which is heading the Preparatory Meeting for Technology Regulatory Authority (CITRA) of Kuwait World Radiocommunication Conference (WRC), raised to present TRA’s advanced strategies and latest several important clauses about the event, which will approaches in corporate communication. The exchange take place in 2019. It reviewed the suggested clauses of experiences and knowledge was part of the TRA’s on using space telecommunications in terms of current commitment to promote joint initiatives among the capabilities, considering that space telecoms is a major federal entity’s counterparts in the region and the world. aspect of the space sector along with satellites and other The Kuwait delegation reviewed the TRA Corporate related space communication technologies. Manager Communications Department’s current practices and for International Organizations, Corporate Development commended its communications plan, which aims to

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SAMENA TRENDS JUNE-JULY 2016 strengthen effective communication with its target partnership program with telecoms regulatory audience and achieve the desired outcome. The parties authorities worldwide to share best practices in the outlined ideas and suggestions focused on crafting press sector. The MOU was signed on the sidelines of the and media content, brochures and leaflets, campaigns 2016 session of the International Telecommunications and website content. Ahlam Abdulrahman Al Feel, Union (ITU) Council being held in Geneva from May 25 Director for Corporate Communication at the Corporate to June 2, 2016. The MOU aims to provide a general Communication Department of the TRA, presented its framework of collaboration for sharing best practices strategic annual plan and explained the communication in information and communications technology (ICT) strategies being used by the TRA to communicate with between the two countries, including the regulatory these audiences using social media channels. tools being developed in countries, the development (June 7, 2016) q8dailynews.com of human resources, research and development, and the promotion of commercial activities in the sector. The Telecommunications Regulatory Authority (TRA) has Under the terms of the MOU, both parties will establish issued a directive ordering the region’s operators Etisalat a yearly calendar to identify the mutual programs and and du to place a hard cap on mobile data bundles to activities to spotlight on the work plan and the means protect consumers from additional charges. The Directive of implementation to achieve the goals set in the (1) of 2016 applies to all mobile data bundles, whether agreement. The two countries seek to develop the ICT included as part of the main subscription or purchased sector to meet current industry demand and keep pace as an optional add-on. The directive obligates the with new technologies, as well as enable their respective operators to limit the supply of mobile data to the size Authorities to address the challenges faced by the sector. of the bundle, once the bundle is exhausted, the licensee Mr. Hamad Obaid Al Mansoori, TRA’s Director General, cannot supply further mobile data unless the consumer said: “The TRA continues to play its role in advancing the gives express consent. The directive serves as a safety UAE’s development in the telecoms sector. As an elected net measure to protect mobile data subscribers from member of the ITU Council, we strive to promote the that the TRA calls “bill shock”. TRA Director General, said: country’s willingness to participate in joint initiatives “We are concerned with the potential for consumers to which will contribute to ICT development in the region receive larger-than-expected charges for their out-of- and the world.” “It is our pleasure to sign the MOU with bundle mobile data usage. We acknowledge that both Senegal in our joint efforts to develop and improve Etisalat and du have provided various tools to enable the ICT sector. This agreement signifies the importance their customers to monitor their data usage and manage we assign to information exchange and the sharing of their costs. However, we note that not all consumers use experiences as we face common challenges, as well as such tools. It is also inherently difficult to estimate how keep pace with the fast speed of development in the much data is actually being consumed while, for example, sector,” H.E. added. The TRA is participating in Geneva browsing the internet or sending e-mails.” “Consumers to represent UAE at the ITU Council annual session as an may not be aware of the actual costs associated with elected member in the Council. The TRA has nominated such mobile data usage and this could lead to ‘bill a number of initiatives during the meeting, including an shock.’ We aim to address the issue once and for all innovative white paper for ITU to shift to an electronic through this new directive,” Director General added. The system of electing council members, ITU Chairman, and TRA was concerned about the current arrangements as Radio Regulations Board members. (June 1, 2016) albawaba.com consumers may or may not know when their bundle has been exhausted and when the over-bundle rates are being charged. Furthermore, the TRA considers it to be unfair to consumers for operators to price the over bundle rate at the same level as the no bundle rate. Both Etisalat and du can only supply additional data to consumers during this out-of-bundle period if they subscribe to another mobile data bundle, opt-in to be charged at an over-bundle rate; or specifically instruct their service provider to remove the hard cap. As such, the operators must at all times, record the consent and instructions of their subscribers. According to the TRA, consumers who are currently subscribed to any alternative usage cap mechanisms for mobile data must be migrated to the hard cap mechanism. However, those subscribers may be provided with an option to opt-out of the hard cap in favor of their existing cap mechanism. The TRA also urged Etisalat and du to design and introduce pricing plans that are fairer to the consumer by charging lower rates for over bundle data than the rates charged for no bundle data. (June 1, 2016) itp.net

Telecommunications Regulatory Authority (TRA) has signed a Memorandum of Understanding (The MOU) with the Regulatory Authority for Telecommunications and Posts of Senegal as part of TRA’s strategic

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SAMENA TRENDS JUNE-JULY 2016

REGULATORY ACTIVITIES BEYOND THE SAMENA REGION

Argentina MHz band for mobile-phone use. Macri’s Argentinean President presentation followed the announcement Mauricio Macri announced of two decrees, one calling for improved a plan to encourage take- telecoms services in rural areas and up of 4G handsets via another for better mobile services. subsidies and payment in installments. (July 20, 2016) telecompaper.com The initiative will require telecoms operators and equipment makers to The government has said that it will let invest a total of US$ 5 billion as part of telecoms operators have access to state Regulatory a plan also encompassing new mobile owned properties at no charge in order antennas and fiber networks, he said. to make it easier for them to expand Updates Macri said the 4G programme, which will their network coverage. According to a run until 30 October, sets a unit price of decree published by the government, ARS 2,200 for handsets, which will be private telecoms networks will be granted available with interest-free credit and is reasonable access to “terraces, roofs, aimed at helping the country make up towers or any other facility, plant or lost ground following a decade of under- property of the state that seems suitable,” investment. There are currently 7.7 million The aim is to speed up the expansion of 4G handsets in Argentina, compared to mobile phone coverage and increase 8 million 2G devices and 8 million near- competitiveness of the market. It comes obsolete 3G phones and Macri is aiming after a report suggesting that mobile for sales of 16 million 4G units over the networks were struggling to find suitable coming year. The subsidy programme sites for their antennas. In related news, concerns the following models: Huawei Y3 the mobile networks have also been II, LG Leon K120 K4, Samsung J1 ACE, BGH offered the opportunity to expand their Joy A20, Microsoft Lumia 640, Noblex N licenses by up to four years if they agree 453 and the Hyundai Ultra Dream. Public to share some elements of their network partners in the programme will include infrastructure. (June 23, 2016) cellular-news.com the communications and production ministries and telecoms regulator Enacom, which he said was making Nextel Argentina has reportedly acquired important progress in freeing up the 700 five wireless broadband operators for a

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SAMENA TRENDS JUNE-JULY 2016 total of US$138.2 million. The companies in question issues. In a press release the regulator noted that the have been named as Netizen, Trixco, Skyonline Argentina, main proposed changes to the SAU are to incorporate Infotel and Callbi, which between them hold radio fiber-to-the-node (FTTN), fiber-to-the-basement (FTTB) spectrum in the 900MHz and 2.5GHz bands. 900MHz and HFC technologies into the undertaking. In addition, frequency holder Trixco was bought from Gridley nbn is also seeking to: expand the service description Investments, while the other four companies were to reflect the additional technologies; add new clauses acquired from co-owners WX Telecommunications and to address specific matters relating to FTTN and FTTB Greenmax Telecommunications. A Nextel spokesperson services during the NBN rollout; and change the nature commented: ‘This transaction marks the beginning of and extent of commitments to report rollout progress a process of investment in technology and networks information. With a closing date for submissions set as that will enable Nextel enhance their existing services 26 August 2016, ACCC commissioner Roger Featherston and incorporate new value-added services such as was cited as saying of the matter: ‘The ACCC is especially mobile data. With these acquisitions, Nextel aims to interested in receiving feedback on industry’s experience complement its existing spectrum capacity, a necessary in accessing and re-supplying NBN services to date … step to remain competitive in the field of mobile Changes to the Special Access Undertaking are needed communications.’ Media conglomerate Grupo Clarin to accommodate services under the multi-technology acquired 51% of Nextel Argentina in January this year, NBN model. We want to be sure the commitments in after agreeing to buy an initial 49% stake in September the undertaking continue to promote competition in 2015. (June 24, 2016) Clarin NBN markets and remain in the long-term interests of consumers.’ (July 21, 2016) telegeography.com Argentina’s National Entity for Communications (ENACOM) has issued Resolution 2531/16, which seeks The Australian Competition and Consumer Commission to vacate spectrum in the 512MHz-698MHz (600MHz) (ACCC) has published nbn’s (formerly NBN Co’s) proposed band, as currently held by pay-TV operators, with a view variation to its Special Access Undertaking (SAU), the to repurposing the frequencies for mobile use. As such, framework which governs the price and other terms on pay-TV providers will be migrated onto the 12.2GHz- which the company will supply wholesale services over 12.7GHz band within the next two years. According to the National Broadband Network (NBN). The regulator the watchdog the plan ‘will allow more efficient radio noted that nbn is looking to vary its existing SAU, spectrum management, stimulating the development of which has been in operation since it was accepted by services according to demand’. (June 1, 2016) telegeography.com the ACCC in December 2013. According to the ACCC, the main purpose of the SAU variation is to incorporate Australia fiber-to-the-node (FTTN), fiber-to-the-basement (FTTB) and HFC as technologies to which the SAU will apply, Telstra’s varied Migration Plan, which in order to reflect the current NBN model. Doing so, it details the way in which it will progressively has been claimed, will ensure that the SAU applies to migrate voice and broadband services to all network technologies that have been introduced by the National Broadband Network (NBN) nbn. Although FTTN, FTTB and HFC are not reflected in as it is rolled out, has been approved by the Australian the existing SAU, it was noted that nbn has so far been Competition and Consumer Commission (ACCC). offering these services in a way that is consistent with the Confirming its decision in a press release, the ACCC’s SAU. As such, the SAU variation will seek to formalize the chairman Rod Sims said: ‘The changes to the Migration arrangements that are currently in operation but have Plan offer further safeguards for telecommunications not yet been incorporated into the SAU. Meanwhile, nbn customers so they can maintain access to the services is also proposing to make a number of other changes they value during migration to the NBN … These to the SAU including changes to the nature and extent changes will allow retail service providers more time of rollout progress information that it would be obliged to complete their migration activities before managed to provide to NBN access seekers and minor changes disconnection, and are intended to promote a more to dispute resolution arrangements. Submissions on the positive experience for customers as they move to NBN proposals have been invited by a deadline of August 26, services.’ The variation to the Migration Plan will provide 2016. (June 1, 2016) telegeography.com for improved disconnection arrangements based on current, practical experience of migrating services to the multi-technology mix NBN, and includes further changes Bahamas to accommodate the migration of business services by The Bahamian government has NBN access technology. (July 21, 2016) telegeography.com instructed telecoms watchdog the Utilities Regulation and Competition Feedback has been invited on the proposed variation to Authority (URCA) to proceed with the nbn’s Special Access Undertaking (SAU), which is a key allocation of the country’s second wireless license to part of the regulatory framework for governing prices and Cable Bahamas Ltd (CBL). The announcement follows other terms upon which the company will supply services the completion of certain conditions of the license, over the National Broadband Network (NBN) to retailers including the establishment of a new entity – ‘NewCo’ until 2040. With nbn having lodged a proposed variation – to utilize the license, which will be 49%-owned by CBL to the SAU in May 2016, the Australian Competition and and 51%-owned by Bahamian shareholders through a Consumer Commission (ACCC) has now published a new holding company, ‘HoldingCo’. Commenting on consultation paper describing the main changes being the decision, and the company’s plans for launching proposed for the undertaking and outlining other key services, CBL’s president, Anthony Butler noted that CBL

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SAMENA TRENDS JUNE-JULY 2016 would publish a full timeline for its network rollout and Brazil activation shortly. The official added: ‘We understand TIM Brasil and Claro have both launched the market and the expectations of Bahamians. The their first LTE-Advanced (LTE-A) 4G mobile service needs to be reliable, affordable and fully networks using the recently freed support applications that customers want to use, and 700MHz band. The two operators have that is what Bahamians can look forward to from us.’ (June 1, 2016) The Bahamas Weekly begun using the 700MHz band in Rio Verde after the city became the first in Brazil – and in South America – to switch off its analogue TV signals on March 1 this Belgium year. Claro and TIM are both utilizing carrier aggregation Belgium’s parliament has voted to (CA) in the 700MHz, 1800MHz and 2600MHz bands approve the government’s plan to to boost speeds for 4G subscribers with compatible register details of all pre-paid SIM card handsets. The next Brazilian city due to switch off its users in an attempt to crack down on analogue TV transmissions is Brasilia on October 26. the anonymous use of mobile phones for terrorism and (June 17, 2016) telegeography.com criminal offences. In May this year, the legislation, which is expected to be introduced later this year, will cover both new and existing pre-paid SIM cards. New numbers British Virgin Island will not go live until the user has registered their details, The Telecoms Regulatory Commission while existing pre-paid customers will be given six (TRC) of the British Virgin Islands (BVI) months to confirm their identity or face their number has confirmed that it will re-stage last being blocked. Mobile operators will be responsible for October’s controversial 4G spectrum ensuring their users register their details and for storing tender process later this month. According to regulatory the customer information. (July 22, 2016) telegeography.com documentation, the deadline for application submissions is July 26, and successful applicants will be notified on August 16. Going forward, frequencies will be authorized The Belgian Institute for Post and Telecommunications and granted on August 23. (BIPT) has said it will allow the country’s mobile operators to begin trials of 5G technology using temporary licenses. The regulator is working with Swedish vendor Ericsson to In January this year Caribbean Cellular Telephone (CCT) determine which spectrum bands will be most suitable for confirmed that the Eastern Caribbean Supreme Court tests. Belgium’s Minister of Development Cooperation, had backed its legal case against the TRC regarding Digital Agenda, Telecom and Postal Services, Alexander the cellco’s exclusion from last year’s ‘Spectrum Award De Croo, has said that 5G is expected to bring a 2015’ process. In October 2015 TRC chief executive Guy ‘paradigm shift’ to the communications market, and the Malone announced that only two of the country’s three early release of spectrum for trials will benefit telcos and mobile operators – Digicel and LIME (now Flow) – had application developers. The first commercial 5G services applied for 4G spectrum, prompting locally-owned CCT are expected to be launched in Europe around 2022. to take legal action. CCT claimed that its application (June 2, 2016) L’Echo had been unfairly rejected by the TRC, resulting in it being prevented from bidding for 4G-suitable 700MHz Benin spectrum. (July 19, 2016) telegeography.com The Republic’s Interior Minister Sacca Lafia said that mobile subscribers will Cameroon once again be required to register their Ministry of Posts and Telecommunications identities alongside their phone number/ has announced it will deactivate all SIM card with their network operators, for national unregistered SIMs from June 30, 2016, security reasons. The minister made the statement on in accordance with Law No. 2010/13 July 10 during a broadcast on private radio station Frisson of December 21, 2010 and amendments made via Radio, adding that alongside the requirements for a user Decree No. 2015/3759 of September 3, 2015. In a press to provide an identity card to register their name, their release, the ministry noted that: all operators had been fingerprints and photo will be stored with their SIM card ordered to commence suspension of unidentified SIMs details. The minister also said that the scheme would be as of June 10; all operators will have to use a system aimed at limiting multiple SIM ownership by individuals, to detect the MRZ code on identity cards produced whilst juveniles could own a SIM with parental consent. by their subscribers; and operators must deploy teams Benin’s previous scheme to register all mobile users nationally to ensure the registration is implemented. came into effect in June 2011, under which existing (June 16, 2016) telegeography.com subscribers were told to provide official identification to their operators, or risk the deactivation of their SIMs, whilst ID was also officially required to purchase a new China SIM card (although no deadline was set at the time for The Ministry of Industry and Information existing customers to register before disconnection). Technology (MIIT) has approved plans (July 12, 2016) ORTB for China Telecom to begin offering LTE services on the 800MHz band. The watchdog has also greenlit a request from China Unicom, allowing the cellco to carry out tests of frequency

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SAMENA TRENDS JUNE-JULY 2016 division duplex LTE (FDD-LTE) in the 900MHz band in expects further developments to ensure competition 14 provinces, including Shanghai, Jiangsu, Zhejiang and is maintained. In May the EC raised concerns about Anhui. In a related development, China Unicom has also the potential impact that the FNA’s original proposal unveiled plans to begin trialing 400G and 1T fiber-optic – which would allow TD to upgrade its network with backbone networks in H2 2016. (June 20, 2016) C114 Vectoring in areas close to its exchanges – would have on the development of competition and on longer term incentives for investment in future-oriented networks. Cyprus While recognizing that the proposal would lead to Cyprus this week published the results broadband speed gains in parts of Germany (roughly of a spectrum auction in which it sold off 1.4 million would receive download rates of above three packages of frequencies in the 800 50Mbps for the first time), the EC said it believed that MHz and 2.6 GHz bands, raising €17.5 the alternative access solutions for rivals offered by the million in total. The country’s Department of Electronic FNA were not yet sufficient to ensure safeguarding of Communications, part of the Ministry of Transport, competition. For example, virtual access to TD’s street Communications and Works, on Monday revealed that cabinets was restricted to one alternative operator per incumbent mobile operators Cyta and MTN picked cabinet, while any altnet wishing to migrate to the street up two of the available licenses, while cable operator cabinet would have to invest in their own fiber. Following Cablenet secured the third. Mobile market newcomer the EC’s opening of an in-depth investigation, the FNA Primetel, which launched services a year ago, took part agreed to address the vast majority of concerns and in the bidding, but came away with nothing. Sharing the amended its proposals accordingly, with Brussels stating provisional results of the sale, which was concluded on that the ‘revised plans constitute a clear improvement June 1, the Department of Electronic Communications … on each of the points raised in the Commission’s noted that Cyta, which offers mobile services in the serious doubts letter.’ The revised proposal removed country under a partnership deal with Vodafone, spent the limit on the number of access seekers at a street the most at €6.5 million. MTN racked up a €6 million cabinet, and granted access to ducts and dark fiber bill, while Cablenet agreed to pay €5.5 million for its for two years to altnets currently present at the local spectrum package. All three operators secured licenses exchange and wishing to use virtual access at the street comprising 2x10 MHz of 800-MHz spectrum, 2x20 cabinet. The plan will give TD’s competitors access to MHz of 2.6-GHz spectrum, and 15 MHz of unpaired Vectoring in more areas and improve the conditions frequencies also in the 2.6 GHz band. (June 7, 2016) totaltele.com for virtual access to the last mile, while the FNA also agreed to develop the conditions for an alternative ‘Layer 2 Access Product’, which will then be subject to Czech Republic EC scrutiny. Brussels expects the FNA to notify it of these The Czech Telecommunication Office conditions ‘as soon as possible after the summer break’. (CTU) has confirmed that the sale of the (July 21, 2016) telegeography.com remaining frequencies in the 1800MHz and 2600MHz bands has been completed, A group of European operators have made a pledge to with the three existing operators – O2, T-Mobile and move quickly to launch 5G services, while at the same time Vodafone – agreeing to pay a total of CZK2.643 billion calling for a change to net neutrality guidelines, Financial (US$109.967 million) for the seven blocks on offer; Times reported. The move comes as the European broken down, O2 agreed to pay CZK1.472 billion, Commission is set to discuss its “5G Manifesto for timely T-Mobile CZK729.9 million and Vodafone CZK442.0 deployment of 5G in Europe” today. BT, Deutsche Telekom, million. The sale of the frequencies is aimed at boosting Telecom Italia and Vodafone Group are among the network capacity for the trio, to meet current and future companies which have said they will launch 5G networks data needs of consumers. The CTU confirmed that in in at least one city in every European country by 2020. the 1800MHz band, O2 won two blocks of 2×2.9MHz This is broadly in line with the launch plans of operators and one of 2×5MHz, while Vodafone secured a similar in Asia and the US. But this comes with a caveat. “The 2×5MHz block. Meanwhile at 2600MHz, T-Mobile telecom industry warns that the current net neutrality snapped up 2×10MHz in the paired part of the band, guidelines create significant uncertainties around 5G and one unpaired block of 25MHz, while O2 also took return on investment,” the group cautioned, adding that an unpaired block of 25MHz – thereby concluding “investments are therefore likely to be delayed unless the sale of all blocks on offer. As per the terms of the regulators take a positive stance on innovation and stick previous auction of 4G-suitable spectrum in 2013, the to it”. The European authorities have put a lot of weight CTU has stipulated that the frequencies must be used behind 5G development plans. Not only is there a desire to support the provision of mobile internet services. not to lag Asia and the US, but there is also an appetite (June 15, 2016) telegeography.com to capitalize on other growth opportunities enabled by the technology, such as self-driving cars and advanced European Union healthcare applications. Net neutrality, on the other hand, is a complex issue, with a number of differing The European Commission (EC) has viewpoints depending on the holder’s position in the accepted a revised regulatory proposal value chain. Operators are looking for a way to protect from Germany’s telecoms regulator, the their investments in 5G, having seen a shift in value with Federal Network Agency (FNA), to allow 3G and 4G from connectivity to the services provided incumbent Telekom Deutschland (TD) to upgrade over-the-top – and often taken by infrastructure- its network with Vectoring technology, but says it light new-entrants. One of the consistent calls is for

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SAMENA TRENDS JUNE-JULY 2016 communications apps such as WhatsApp, Facebook (694-790 MHz) to wireless broadband services under Messenger and Skype to be subject to the same rules as harmonized technical conditions by June 30, 2020. telco-provided services. While conflating the two is not Member states must adopt a ‘national roadmap’ by particularly surprising, the operators are nonetheless June 30, 2018, setting out how they will implement the taking a bullish stance with the watchdogs. A statement decision. The Council position stipulates that member from the European Commission this morning said its states must ensure the availability of the sub-700 MHz 5G Manifesto “outlines the main opportunities and (470-694 MHz) band for digital television and wireless challenges linked to the deployment of 5G infrastructure microphones at least until 2030, based on national in Europe. In particular, it provides recommendations needs. The 470-790 MHz range is currently widely for a common vision and a calendar for deployment in used for digital television broadcasting and for wireless Europe, investments, standards and the synchronized microphones, for instance in theatres, concerts and introduction of services. It underlines the need for sporting events. (June 1, 2016) thefastmode.com the coordination of radio frequencies and improved regulatory conditions to support innovation.” Ahead of the meeting, Commissioner Gunther Oettinger said: “I France very much welcome the 5G Manifesto and discussions French telecoms regulator ARCEP said today with the high-level industry group. These will help that it will be given new power to settle us focus on the key levers to ensure European digital disputes between infrastructure access leadership in 5G. I will come forward with a 5G Action providers in the coming weeks, under the Plan in the autumn.” (July 7, 2016) mobileworldlive.com government’s initiative to implement European directive on ‘civil engineering’ of May 15, 2014, which was The European Commission made clear its desire to approved in France in April this year. In order to complete modernize standards setting within the EU, while the process, the French government has now proposed announcing how it intends to improve the partnership the adoption of a number of supplementing directives, between European institutions and the standardization granting operators the right to access existing civil community. “If we want the European market to have the engineering infrastructures under reasonable technical first-mover advantage, we need to speed up and better and pricing terms and conditions for the purpose of priorities standard setting across the board,” said Jyrki deploying their superfast networks. ARCEP said the Katainen, EU vice president for jobs, growth, investment directives relate to infrastructure belonging to providers and competitiveness. “With today’s standardization operating within the communications, transport, package, we are helping raise competitiveness, energy and water sectors. By encouraging synergies power innovation and create a predictable and stable between the different network industries, whenever investment framework in the EU,” added Katainen. The relevant, these new provisions will help to further fixed announcement is wide ranging, not just concerned with and mobile superfast network rollouts and to improve standards in the tech sector, although the commission connectivity and coverage in general, particularly in the previously identified ICT, along with services, as priority more sparsely populated areas and within constrained sectors. In April, the commission proposed measures to environments. In addition, more detail has been speed standards setting in five areas: 5G, cloud, Internet brought to existing provisions on coordinating civil of Things, data technologies and cybersecurity. Now engineering works, which have also been strengthened. (June 21, 2016) telegeography.com the commission is recommending a renewed focus on the services sector too. In addition, the EC announced next steps on its Joint Initiative on Standardization French telecoms watchdog the Authority of Regulation (JIS), which brings together European and national for Electronic Communications and Posts (ARCEP) has standardization bodies, as well as industry, SMEs, revealed that it received two revised network sharing consumer groups, trade unions, environmental bodies, agreements for consideration, following the publishing member states and the commission itself. The partners of its updated network sharing guidelines, which propose will commit to modernize and speeding up the delivery a gradual termination of all roaming agreements in of standards by the end of 2019. A framework for the metropolitan France. ARCEP said that the amendments JIS will be formally launched on June 13 in Amsterdam. relate to the gradual termination of the 2G/3G contract (June 1, 2016) mobileworldlive.com between Free Mobile and Orange, and the 2G/3G/4G network sharing agreement between Bouygues Telecom The EU council has published a proposal to free up and Numericable-SFR (SFR). Orange and Free signed an the 700 MHz band spectrum for wireless broadband in agreement last week to gradually terminate their national Europe by 2020, making the spectrum exclusively for 2G/3G roaming deal (inked in 2011) by the end of 2020; mobile broadband services. The low band spectrum under the plan, the phasing out of Free’s roaming over enables high speeds and good penetration, making it the networks of Orange France is scheduled to start ideal for mobile internet services and to promote the from January 2017. In regards to the Bouygues-SFR deal, take-up of 4G in Europe. Broadcasting services would Bouygues Telecom disclosed that the sharing of the two keep priority in the sub-700 MHz band at least until operators’ 4G networks is scheduled to end in late 2018, 2030. The use of 700MHz spectrum is expected to make at which date the operator pledged to offer population it easier to roll out 5G as soon as it becomes available coverage of between 98% and 99% over its own LTE (around 2020) that will allow effective deployment network. In January 2016 ARCEP opened a public of innovative services such as connected cars, smart consultation on its draft guidelines on mobile network cities and remote healthcare. According to the Council sharing by proposing a gradual termination of all position, EU countries must reassign the 700 MHz band roaming agreements in metropolitan France. Regarding

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SAMENA TRENDS JUNE-JULY 2016 the Free/Orange deal, the regulator proposed that the Germany termination process should start before the existing The German government has pledged contract expires, with 3G roaming between Orange/Free to allocate a further €1.3 billion of public scheduled to end between 2018 and 2020. For 2G (voice, funding to the rollout of high-speed SMS and data) services the termination date should be broadband networks in difficult to reach between 2020 and 2022. (June 20, 2016) telegeography.com areas. The country’s Transport and Digital Infrastructure Ministry made the announcement on Friday, noting Gabon that the new funding will take the total invested by the state in high-speed broadband to €4 billion. “The The Regulatory Authority for Electronic money will be invested specifically in underserved Communications and Posts (ARCEP) has regions where network expansion would otherwise finalized the latest phase of its universal not be economically viable,” the ministry said, in a service strategy, as it seeks to eliminate statement. “We are investing in the development of the so-called mobile coverage ‘white spots’. Rules governing gigabit society,” added Alexander Dobrindt, minister a new pilot project were presented to Pastor Ngoua for transport and digital infrastructure. “For this we N’Neme, the minister of digital economy on July 7, need superfast Internet for all, throughout Germany.” In by Serge Essongue, executive secretary of ARCEP. The October last year the government allocated €2.7 billion first area to receive improved connectivity has been for the rollout of networks capable of providing Internet named as the Ogooue-Ivindo province, which is the access at speeds in excess of 50 Mbps with a view to north-eastern-most of the nine provinces of Gabon. covering the whole country by 2018. €1.3 billion of the (July 12, 2016) TICmag.net sum came from revenue generated by the auction of mobile spectrum, in addition to €1.4 billion from the The government of Gabon has enlisted London-based state budget. There are a number of funding models international law firm Bird & Bird to redesign the available. Municipalities can apply for funding to build regulatory framework governing its telecoms sector. their own infrastructure which they would then lease to The government is keen to create a more welcoming operators, or use the funding to plug the profitability climate for potential investors; close a number of legal gap of a private operator, the ministry explained last loopholes, which complicate business matters; and ‘lay year. It said grants are available to cover up to 50% of the the foundations for an integrated regulatory and legal costs of a project, rising to 70% in particularly depressed framework consistent with the trends prevailing in the areas. The maximum grant for a single project is €15 international and regional economic communities’. The million, but it is possible to combine state funding with funding will be drawn from moneys previously allocated the support programs of the federal states, the ministry to the Central African Backbone (CAB) project, the report explained. (July 4, 2016) totaltele.com adds. The Gabonese telecoms sector is governed by Law No. 005/2001 of June 2001, which was chiefly concerned Telecoms regulator has reworked its plan to allow with reorganizing the postal and communications Deutsche Telekom to use vectoring technology to boost sectors, separating out the functions of former monopoly network speeds in a bid to address competition concerns operator l’Office des Postes et des Telecommunications from the European Commission. Bundesnetzagentur (OPT). Industry watchdog the Regulatory Authority acknowledged the Commission’s objections to the plan, for Electronic Communications and Posts (ARCEP) is which centre on the need to safeguard competition, expected to actively participate in the discussions. and said it will present an amended version of its (June 9, 2016) AfricTelegraph.com draft decision on the subject next week. The national regulator allowed Deutsche Telekom to push ahead with Georgia vectoring and sent a draft proposal on the subject to the European Commission in April. The following month Georgian telecoms operator MagtiCom the Commission launched an in-depth investigation has secured mobile spectrum in the into the proposal. “Our aim is to allow both a network 800MHz band through an auction held by upgrade and high quality access for competitors,” digital the Georgian National Communications economy commissioner Günther Oettinger said at the Commission (GNCC). The company says it will use the new time. “For this, we need sufficient safeguards to protect frequencies, for which it paid GEL25.391 million (US$11.8 sustainable competition and create incentives to invest million), in combination with its existing 1800MHz in future-oriented networks for the gigabit society, a spectrum to launch an LTE-Advanced (LTE-A) network. society where citizens and businesses benefit from ultra- In a separate announcement, MagtiCom revealed that fast connectivity (1000 Mbps),” he said. Despite efforts to it has signed an ‘Agreement on Sale of Independent make virtual unbundling offers available to rival players, Business Unit’ with Caucasus Online, after reaching a Deutsche Telekom competitors have complained about deal to acquire the ISP’s retail operating assets earlier the vectoring plan. Vodafone has been particularly this year. The process of handing over the corporate and vocal, hitting out at the regulator for supporting what retail service assets to MagtiCom is scheduled to begin it believes is a short-term stopgap technology, rather from August 1 and is expected to be completed by the than pushing for investment in fiber. The regulator is end of the year. Following the integration of Caucasus’ undeterred though. In a statement Bundesnetzagentur networks and assets, MagtiCom will be able to offer a President said he hopes the regulator’s new plans will full quad-play service comprising mobile telephony and dispel the Commission’s concerns about the competitive data, fixed telephony, broadband internet access and aspect of vectoring, enabling it to move ahead with television (satellite and IPTV). (June 1, 2016) telegeography.com determining the rules for the use of the technology. (June 17, 2016) totaltele.com

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Greece Guyana The Greek telecoms regulator, the Hellenic Recently approved Telecommunications Telecommunications & Post Commission (Amendment) Bill 2016 includes (EETT), has called for expressions of measures for the establishment of a fund interest for the granting of rights to use to bankroll the expansion of networks frequencies in the 1800MHz band. The frequencies are into unserved areas. Demerara Waves quotes Minister currently held by two of the country’s three incumbent of State Joseph Harmon as saying that: ‘Where you mobile operators, Vodafone and Wind Hellas, but their have unserved communities that do not have the usage rights are due to expire in August. The watchdog benefit of telecommunications services…where the is offering six packets of spectrum in total: three telecommunications provider[s] do not consider it 2×5MHz tranches of paired frequencies at 1735MHz- economically feasible to carry the services there, this 1750MHz/1830MHz-1845MHz (currently used by is what the fund will be used for.’ Mr Harmon did not Vodafone); and three 2×5MHz packets at 1710MHz- specify how the funds would be raised, however, nor 1725MHz/1805MHz-1820MHz (held by Wind Hellas). which ministry or agency would be responsible for Applications for the spectrum are being accepted until 5 managing the finances. The official made the comments July. (June 23, 2016) telegeography.com in response to objections that the government planned to use money earmarked for reducing emissions from deforestation and forest degradation (REDD) to finance GSMA ICT initiatives in Guyana’s hinterland. Mr. Harmon The GSMA welcomes the 3rd Generation defended the government’s plan to use money from the Partnership Project’s (3GPP) decision to Guyana REDD Investment Fund (GRIF), saying that it was standardize three Low Power, Wide Area a short term measure, until the new telecom fund could (LPWA) technologies in licensed spectrum be established: ‘We don’t believe we can postpone the in Release 13. The specifications which were completed development of these communities in any way by waiting today, address the growing IoT market and include a new on what is going to come in.’ (July 22, 2016) telegeography.com technology called Narrow-Band IoT (NB-IoT), as well as pre-existing evolved technologies, EC-GSM-IoT and LTE Guyana’s long-awaited Telecommunications MTC Cat-M1, that will cover all LPWA use cases, ensuring (Amendment) Bill has been passed into law after customer choice and helping the Internet of Things (IoT) narrowly clearing a parliamentary vote, with 33 MPs market to flourish. “The GSMA established the Mobile in favor and 32 against. The legislation is designed to IoT Initiative with the specific purpose of aligning the liberalize the fixed line market and paves the way for the mobile industry behind common and complementary government to end the monopoly of Guyana Telephone LPWA technologies in licensed spectrum and we are and Telegraph Company (GTT) on international voice and pleased that the industry has moved so quickly to adopt data transmission. In addition, the bill included reforms them and that they have now been ratified by 3GPP,” to the nation’s regulatory structure, such as the creation said Alex Sinclair, Chief Technology Officer, GSMA. of a new watchdog, the Telecommunication Agency, that “Mobile operators have already started a number would incorporate the National Frequency Management of pilots around the world and this agreement over Unit (NFMU) and oversee the sector alongside existing common standards will help accelerate the development regulator the Public Utilities Commission (PUC). Reforms of commercial solutions and ensure they are in market to the telecommunication sector have been under way much faster, providing customers with more choice.” since 2009, but have been delayed and postponed LPWA networks are an emerging, high-growth area of on numerous occasions. One of the major barriers to the IoT that complement and extend conventional wide passing the bill was a dispute between the government area networks that make use of 2G, 3G and 4G cellular and Atlantic Tele-Network (ATN), GTT’s parent company, technologies. These new standards will allow operators over the operator’s monopoly status: ATN claimed that it to optimize their existing high-quality mobile network would be entitled to damages and other compensation infrastructure through an upgrade to EC-GSM-IoT for 2G if GTT’s monopoly was ended through any means not networks and LTE-MTC for LTE networks, while NB-IoT agreed with the telco. The bill has had a mixed response, can use both 2G and 4G spectrum to deliver a secure, with opposition politicians praising the passing of the reliable and robust performance. The GSMA Mobile critical legislation but warning that it may concentrate IoT initiative is backed by 30 global mobile operators, too much power in the hands of the telecommunication device makers and chipset, module and infrastructure minister. Similarly, Digicel and GTT were cautiously companies and has helped the industry align on optimistic about the reforms. A spokesperson for the common technology standards in licensed spectrum former described the ‘laudable achievement’ as merely for the emerging LPWA market. LPWA networks are the first step towards the long overdue ending of GTT’s designed for M2M applications that have low data rates, monopolies. For its part, GTT’s stance has remained require long battery lives and operate unattended for unchanged, with the operator saying that it supported long periods of time, often in remote locations. They opening the market but adding that it would only be will be used for a wide variety of applications such possible through negotiations between the telco and as industrial asset tracking, safety monitoring, water the government. (July 21, 2016) Demerara Waves and gas metering, smart grids, city parking, vending machines and city lighting. (June 24, 2016) bahrainbiznews.com

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Haiti 3800MHz band to Vodafone Hungary and pay-TV/ broadband operator DIGI Telecommunications, which The telecoms regulator Conseil National were the sole participants in the auction process. des Telecommunications (CONATEL) According to the regulator, UK-owned mobile operator has informed the public that ‘no person Vodafone paid a total of HUF648.6 million (US$2.4 million) has been granted a concession for the for 60MHz of spectrum in the 3400MHz-3600MHz operation and marketing of 4G LTE mobile phone range, while DIGI, which is owned by Romanian cable services’ in the country, Radio Television Caraibes group RCS&RDS, bid HUF248.0 million for a 20MHz writes. According to CONATEL’s Managing Director, block in the 3600MHz-3800MHz frequency band. The Jean-Marie Altema, the general directorate of CONATEL NMHH points out that, in addition to mobile broadband is working on establishing the terms and conditions access services, the 3400MHz-3800MHz spectrum for auctioning the 4G concessions. The official also also supports wireless backhaul and high speed fixed- added that one operator – National Telecom (Natcom) wireless access (FWA). It added that the auction was – is currently authorized to trial the technology. aimed at meeting broadband demand in underserved (June 7, 2016) telegeography.com areas and boosting the available capacity in urban areas which experience intensive usage. In related news, last Honduras month, the Budapest Business Journal cited the NMHH’s chief director, Janka Borcs Aranyos, as saying that the The Honduran government has authorized regulator is also preparing to sell off licenses in a number the National Telecommunications of additional frequency bands to meet growing demand Commission (Comision Nacional de for mobile broadband and broadcasting services. Telecomunicaciones, CONATEL) to stage a Licenses up for auction include spectrum allocations in multi-band spectrum auction comprising frequencies in the 700MHz, 1400MHz-1500MHz, 2100MHz, 2300MHz- the 700MHz, 900MHz and 2500MHz bands. According 2400MHz and 2600MHz bands. (June 8, 2016) telegeography.com to local news site El Heraldo, the government has granted CONATEL HNL12 million (US$521,152) to carry out the tender, which will be geared towards attracting a fourth mobile operator to the market. The decision Iceland was confirmed by Executive Agreement 033-2016, Icelandic telecoms watchdog the Post which was published in the Official Gazette last month. and Telecom Administration (Post-og Further, the government expects the new player to Fjarskiptastofnun, PTA) has revealed that invest between USD400 million and US$700 million in its it plans to hold an auction for frequencies first four years of operation, and create as many as 3,000 in the 700MHz band by the end of 2016. The decision direct and indirect jobs. According to TeleGeography’s was prompted by an application for 2×20MHz of GlobalComms Database, Honduras is currently home to 700MHz spectrum submitted by Icelandic telecoms three mobile operators: market leader Tigo Honduras, operator Siminn in February 2016, and a subsequent Claro Honduras and state-owned Hondutel Movil. hearing involving Siminn, Vodafone Iceland (Fjarskipti), The acquisition of Digicel Honduras by Claro owner Nova, Gagnaveita Reykjavikur (GR) and Neydarlinan, America Movil (AM) back in November 2011 saw the which revealed that demand for spectrum in the market contract from a competitive four-player market. aforementioned band was equal and/or greater than (June 28, 2016) telegeography.com the supply. The PTA disclosed that it will offer three lots of 2×10MHz spectrum, with a 15-year validity each. The three blocks will also come with specific terms Honduran regulator the National Telecommunications and obligations. In addition, the PTA will consider the Commission (CONATEL) has announced that it has auctioning of spectrum in the 2100MHz and 2600MHz switched on the country’s first internet exchange bands, though the watchdog plans to consult with all point (IXP). According to a press release issued by relevant stakeholders before it makes a decision on the watchdog, the IXP-HN facility will be housed at the auction terms and conditions. In February 2016 the National Autonomous University of Honduras the PTA revoked legislation banning it from allocating (Universidad Nacional Autonoma de Honduras) in 2100MHz spectrum on a technology-neutral basis. The capital city Tegucigalpa. The executive commission regulator said at the time that it was planning to launch in charge of managing the IXP comprises CONATEL a tender for vacant frequencies in the 2100MHz band personnel, representatives from local ISPs, university later this year, in addition to auctioning spectrum for officials and other stakeholders. IXP-HN is expected to high speed mobile broadband services in the 900MHz help improve internet access in the Central American (2016), 2600MHz (2016) and 700MHz (2017/18) bands. nation by eliminating the dependence on international (July 21, 2016) telegeography.com connectivity for local internet traffic exchange. CONATEL notes that domestic users could now experience download speeds that are up to ten times faster than The Post and Telecom Administration (Post-og those available previously. (June 14, 2016) telegeography.com Fjarskiptastofnun, PTA) of Iceland has issued a decision limiting a frequency sharing agreement between domestic cellcos Vodafone Iceland (Fjarskipti) and Hungary Nova. According to the amended terms of the spectrum Hungary’s National Media & deal, the frequencies shared by Vodafone/Nova will be Infocommunications Authority (NMHH) capped at a maximum total of 20MHz, effective August has announced the award of wireless 15, 2016. In November 2013 the two companies signed broadband spectrum in the 3400MHz- an agreement to establish a common infrastructure

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SAMENA TRENDS JUNE-JULY 2016 company, with PTA authorizing the shared use of India’s cabinet has approved the nation’s largest auction frequencies in the 800MHz, 900MHz, 1800MHz and of mobile frequencies but has deferred a decision on the 2100MHz bands by the two cellcos in March 2014. spectrum usage charge (SUC) that will apply to spectrum Under the terms set out by the deal, the two companies bought through the tender and how the overall SUC will said they would provide an equal initial contribution be calculated, the Economic Times reports. The tender to the 50/50 joint venture. The deal was endorsed by will feature a combined total of more than 2,200MHz the PTA in July 2014, while the Icelandic Competition of spectrum across multiple bands, worth more than Authority (ICA) granted its approval in February 2015. INR5.44 trillion (US$D80.31 billion) – based on the The new company – dubbed Sendafelagid – commenced reserve prices for the airwaves. The upcoming tender operations in November 2015. (July 18, 2016) telegeography.com will include frequencies in the 700MHz band for the first time, although the reserve price of INR574.25 billion for 2×5MHz block of pan-India spectrum is expected to Telecoms regulator the Post and Telecom Administration limit telcos’ interest in the airwaves. Indeed, the head (Post-og Fjarskiptastofnun, PTA) has revealed that it will of industry body the Cellular Operators Association of reallocate Siminn and Vodafone’s frequencies in the India (COAI) commented that: ‘We are glad that the 900MHz band, under Decision No. 7/2016. Currently, spectrum shortage issue has been addressed but pricing the two operators could utilize their respective 2×5MHz is a concern.’ Consequently, only around 40% to 50% blocks in the band until February 13, 2017, though the of the frequencies are expected to sell, with spectrum regulator has extended the validity of the concessions in the 1800MHz, 2100MHz and 23000MHz ranges for an additional five years. Further, the spectrum will expected to be in the highest demand as operators look become technology-neutral on February 14, 2017. The to plug gaps in their existing holdings. Regarding the proposal was subject to public consultation in March SUC, the cabinet referred the matter back to the Telecom 2016. (June 24, 2016) telegeography.com Regulatory Authority of India (TRAI) for its views. The Telecom Commission had previously green-lit proposals India for the rate to be lowered from 5% of annual gross revenue to 3%, with the rate extended to 4G spectrum India shuffled its ministers, in the purchased in 2010. Spectrum from the sale would also process splitting the communications be excluded from the weighted average formula used to and IT ministry and appointing a new calculate overall SUCs for each cellco, although the TRAI custodian of the telecoms portfolio. had previously recommended the introduction of a flat Former telecoms and IT minister Ravi Shankar Prasad SUC of 3% for all airwaves. (June 23, 2016) telegeography.com takes up a new post as law and justice minister, as well as retaining control of electronics and information technology. Meanwhile, Railways Minister Manoj Sinha India’s cabinet reportedly approved a mammoth spectrum takes on communications, in addition to his existing auction plan, proposed by regulators, which is expected role. The change comes at a pivotal time for India’s to raise a record INR5.6 trillion ($85 billion). In a report telecoms sector. Six weeks ago Prasad approved plans released today, Times of India quoted an “official source” for a massive multi-band spectrum auction to take place which claims that the spectrum auction plan “has been in the coming months. If all the available frequencies cleared”, although no official confirmation has yet been sell, the process could raise 5.6 trillion rupees (€74 released. The upcoming auction, which for some time billion) for government coffers, however this week has been touted as potentially the country’s largest ever, analysts predicted that the actual sum generated from will see airwaves up for grabs in the premium 700MHz the sale will be significantly lower as telcos choose band, as well as 800MHz, 900MHz, 1800MHz, 2100MHz, carefully which frequencies to bid on. Nonetheless, 2300MHz and 2500MHz frequencies, and will be held in Crisil Research still estimated that the auction will raise September, adds the report. If estimates are correct, it around INR1 trillion (€13.3 billion), which is no small will significantly surpass the country’s last auction, held sum. The auction will take place against a backdrop of in 2015, which raised a then record INR1.1 trillion, with change in the market, with many telcos looking either eight winners in total. Spectrum in the 700MHz band will to bulk up in advance of the planned launch of Reliance cost the most, the paper added, with the reserve price Jio’s Infocomm’s nationwide 4G service, or sell out as the set at approximately INR11.5 billion per 1MHz, meaning competition heats up. Reliance Communications and a company will have to spend a minimum INR57.5 billion Aircel are working on a merger deal that will create the for a block of 5MHz. According to the report, the cost of third largest player by customers in the Indian mobile delivering services in the band is estimated to be 70 per market, while Bharti Airtel recently closed the acquisition cent lower than the 2100MHz band used for 3G. The sale of small operator Videocon’s 1800-MHz spectrum in six of 700MHz looks set to go ahead despite operators in circles. A fortnight ago Japan’s NTT DoCoMo revealed India voicing their concerns over the move, arguing that that a U.K. arbitration court ruled in its favor regarding it should be put off for two years until the 4G ecosystem its exit from the Indian mobile operator joint venture it in the country has developed more. Sources add that shares with Tata Sons, ordering the latter to pay US$1.172 a notice inviting application is likely to be issued on billion in damages for breach of the pair’s shareholder July 1, followed by preliminary bidding on July 6. agreement with regard to Tata Teleservices Ltd, known (June 22, 2016) mobileworldlive.com as Tata DoCoMo. Last year there was talk of Tata exiting the Indian mobile market altogether, and more recently Telecom Minister Ravi Shankar Prasad has rejected a there have been similar rumors regarding Telenor, which call to amend the Telecom Regulatory Authority (TRAI) arguably lacks the scale to compete effectively going Act to grant the watchdog greater powers regarding forward. (July 6, 2016) totaltele.com dropped calls. The Economic Times writes that Rajeev

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Chandrasekhar, a member of the Rayja Sabha (India’s to consumers but to take services from the contracted Upper House), had written to the minister, expressing service provider,” it said. “There is a requirement to the need for the TRAI to have ‘broad power to protect evolve a framework applicable to in-building facilities to consumers,’ adding that ‘[the] entire technology sector enable the telecom operators to obtain efficient access has changed since the time the TRAI Act was made’ on reasonable terms,” it added. “It is important to ensure and that the regulator needs more power. The minster that all service providers are able to provide mobile rejected the call, however, stating that the TRAI already and landline services to all the subscribers without any has ‘wide ranging powers’ and as such, ‘the need to artificial restrictions or hindrance. The choice of service change the TRAI Act is not felt at this juncture.’ Mr. provider should be made by the subscriber, not by the Prasad’s dismissal may not be the final word, though, building owner,” it said. Sharing telecom infrastructure as the paper cites a source within the Department of will not only reduce the cost involved, but also spare Telecommunications (DoT) as saying that the ministry multiplication of network. To provide equal access inside is ‘taking a relook’ at the matter, having received a buildings, the TRAI has suggested disallowing service similar request from the TRAI itself. In a letter earlier providers and infrastructure providers from entering this month, the TRAI requested power to levy financial into exclusive contracts. Another possible option, the penalties of up to INR100 million (US$1.48 million) on TRAI said, could be that the local administration made companies and custodial sentences of up to two years it mandatory to have adequate provision for ducts, for executives of companies that fail to comply with optical fiber and in-building solutions while approving regulations. The request has already met resistance, the construction of multiplexes, malls and hotels. These with operators describing the plans as ‘draconian,’ facilities should not be seen as a “revenue source, but whilst Telecom Secretary J S Deepak commented: ‘in my as essential infrastructure, therefore, no charges should personal opinion I do not think an executive should be levied by the building owner”, the TRAI said. The sent to jail for every call drop.’ (June 15, 2016) telegeography.com regulatory body has sought suggestions on provisions to facilitate common telecom infrastructure that can be included in the National Building Code, which is The Telecom Regulatory Authority of India (TRAI) issued in process of being framed by the Bureau of Indian a consultation paper to improve telecom services inside Standards. (June 7, 2016).business-standard.com buildings by providing companies unhindered access and encouraging them to use shared infrastructure. The paper has sought stakeholders’ responses on whether The telecoms regulator is calling for more powers to the sharing of telecom infrastructure should be made impose fines on mobile networks that miss its quality mandatory and what practices should be included of service tests, after a drive test found almost all the in the National Building Code to facilitate equal and mobile networks missed its minimum standards. The unrestricted access for all telecom service providers. regulator, the TRAI conducts drive tests in Delhi early This comes at a time when tension between the telecom last month and says that all the companies missed its regulator and service providers has peaked, following drop call standard of no more than 2 percent of calls the TRAI’s recent test drive in Delhi to assess quality of being dropped. The only exceptions were RCom’s 2G service. Last week, the TRAI said all operators except network and Vodafone’s 3G network. The regulator Reliance 2G (second generation) and Vodafone 3G failed tested 2G, 3G and CDMA services, with drive test its call drop test, while the telecom industry accused the routes covering approximately 600 km across the city. regulator of deliberately conducting the test in problem “All operators are performing below the CDR and it has areas. With this consultation paper, the regulator seeks degraded further compared to previous tests,” said TRAI to enhance the quality of the telecom service inside advisor Robert A Ravi. However, although the regulator residential buildings, malls, hotels and commercial has imposed a below 2 percent failure rate, it lacks any complexes as well as providing telecom companies equal legal footing to enforce the regulation. It now plans to in-building access. At present, in-building deployment seek an amendment to the law governing the regulator is achieved through commercial agreements between to add drop calls to the list of QoS areas where it can the mobile operators and the building owner or impose penalties on the mobile networks. The mobile developer or resident welfare association. “It has network’s own representative, the COAI claims that come to the notice of the authority that in many areas the drop call tests were carried out in a small part of there are problems in getting the access to buildings. New Delhi where problems are known to exist, and Generally, an infrastructure group or builder enters that city-wide, the networks are not under performing. into an exclusive agreement with one of the service (June 2, 2016).cellular-news.com providers for providing telecom services to consumers living or doing business from a particular location,” the Ministry of Defense (MoD) has agreed to return spectrum TRAI noted. “However, in such cases, only that service in the 1800MHz and 2100MHz bands worth a total of provider is allowed to lay the telecom infrastructure in INR300 billion (US$4.46 billion), based on the current the premises and other service providers are denied reserve prices for the airwaves,. The MoD will exchange access, thus creating an artificial barrier,” it added. Only its 15MHz of spectrum in the 2100MHz band in all 22 contracted service providers were allowed to install circles for the same amount in the 1900MHz band, and in-building solutions but those service providers, in will also return 201MHz of spectrum in the 1800MHz turn, did not allow others to share them or demanded band. The frequencies will be included in the upcoming prohibitively high prices for sharing them, noted TRAI. auction, increasing the total value of spectrum on offer In some cases, building owners allow access to the to INR5.66 trillion. The tender will feature spectrum in service providers at exorbitant rates. “Such practices the 700MHz, 800MHz, 900MHz, 1800MHz, 2100MHz, not only limit competition, they also leave no choice 2300MHz and 2500MHz bands. (June 1, 2016) The Economic Times

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Italy Jamaica Telecoms regulator AGCOM has The launch of Jamaica’s prospective published the results of its study into third cellular network has been put in electronic communications services, and doubt after the Office of the Contractor in particular over-the-top (OTT) social General (OCG) released a study which messaging tools such as WhatsApp, Skype, iMessage and recommended that the government should not sign Facebook Messenger. The watchdog says it is considering off on its mobile license. Kingston-based Symbiote introducing regulations for such apps which will help to Investments announced earlier this year that it planned create a more level playing field to compensate network to launch wireless services under the ‘Caricel’ brand to operators for the lost voice traffic on their own networks. compete with incumbent operators Digicel and Flow. The It plans to examine regulations – both at a national and OCG report finds, however, that there are links between an EU-wide level – to see where changes can be made Symbiote and local businessman George Neil, who has to benefit operators whose networks support the OTT ‘adverse traces’ linked to his name following an earlier apps with little financial benefit for themselves. AGCOM OCG investigation in 2009 which related to the granting adds, however, that it is still too early to discuss factors of a telecoms license to a firm trading as Gotel. Gotel such as implementing charges on OTT operators. later merged with a company called NewGen and began (June 29, 2016) telegeography.com trading as Symbiote. For its part, Symbiote says it was not contacted for comment prior to the publication of the OCG report, and it claims that several of the queries ITU raised by the study could easily have been clarified using The ITU’s Focus Group on Digital Financial documents already in the possession of regulators. A Services (DFS) has published new reports report from the Jamaica Gleaner cites Symbiote’s lawyer on regulation in the DFS ecosystem and Patrick Bailey as saying that there are several findings in on consumer protection. The UN body the report ‘which require legal advice and consultation’. is seeking to develop an international framework of Symbiote is calling for the government to proceed as good practice guidelines for regulators, operators planned with its license award. (July 22, 2016) telegeography.com and providers in the telecoms and financial services sectors. The paper on ‘Regulation in the Digital Financial Kenya Services Ecosystem’ identifies categories of regulation The technical committee of the and addresses a number of issues relating to managing Communications Authority of Kenya the regulatory environment. It includes an analysis of (CA) has approved the issuance of 4G how regulators currently work together and provides spectrum licenses to the country’s three a model memorandum of understanding that national incumbent mobile operators, the regulator’s director regulators can adopt to formalize their collaboration and general Francis Wangusi told. Safaricom, Airtel Kenya interaction in view of co-regulating the DFS marketplace. and Telkom Kenya will each be required to pay a fee of “Both telecom and financial services regulators have US$25 million for the 800MHz concessions, which will be a crucial role to play in rolling out digital financial awarded next month following final approval from the services that are accessible to everyone around the CA’s board. The trio will also be obliged to share at least world. Collaboration between the telecom and financial 30% of their 4G network capacity with smaller players, services regulators can therefore ensure a conducive including MVNOs and tier-two infrastructure providers. regulatory environment for digital financial services Mobile market leader Safaricom is currently the market’s to flourish,” said Chaesub Lee, director of the ITU’s sole provider of LTE services, which were launched on Standardization Bureau. Meanwhile, the paper entitled a limited basis in Nairobi and Mombasa in December ‘Commonly identified Consumer Protection themes 2014. (June 28, 2016) Business Daily for Digital Financial Services’ identifies four common themes that policy makers or regulators may want to consider when developing laws, regulations or guidelines The Communications Authority (CA) has announced that around consumer protection. This includes provision of it has reviewed the procedures and guidelines for mobile information and transparency, fraud prevention, dispute number portability (MNP), following a consultation with resolution and data privacy and protection. “Trust is industry stakeholders and the general public. Under the an essential ingredient for digital financial services to revised guidelines, consumers will no longer have to succeed. The move away from cash will only work if the pay porting fees if they wish to transfer their number solutions and processes being put in place to replace to a different mobile service provider. The CA has also it are reliable, trustable and easy to use. This is why shortened the porting process to no more than four consumer protection is an essential part of the work we hours, in a move aimed at encouraging take-up by have been doing,” commented Sacha Polverini, Chairman simplifying the procedure, which was first introduced in of the Focus Group and Senior Program Officer of the Bill Kenya on April 1, 2011. Under the previous guidelines, & Melinda Gates Foundation’s Financial Services for the any subscriber wishing to port their number to a different Poor program. ITU Secretary- General Houlin Zhao said network was required to pay a one-off fee of KES199.80 regulation must nurture the development of a strong and (US$1.9), while the maximum execution and porting healthy digital finance sector. “Given the complexity of period was 48 hours between Monday and Friday the regulatory environment, it can often be a challenge excluding public holidays. The plan moves the contract for telecom and financial services regulatory bodies in into ICANN’s hands and so removes the US government many emerging markets to collaborate in developing from its position of direct control – an important change national guidelines,” he said. (July 18, 2016) telecomasia.net in an ever more global internet. Following the formal

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SAMENA TRENDS JUNE-JULY 2016 approval, the transition is in line to be completed by the 24, 2016, although results of this auction were not end of the current IANA contract –September 30, 2016. announced. (June 7, 2016) Tazabek (June 14, 2016) telegeography.com Lesotho France’s Orange Group has completed the sale of The Lesotho Communications Authority Telkom Kenya to UK-based, Africa-focused private (LCA) is examining the potential equity firm Helios Investment Partners, after the deal introduction of SIM card registration received approval from the relevant authorities. The in the country, in a bid to curb crime agreement was announced by Orange in November committed using mobile phones. ‘The regulator in 2015, twelve months after a deal to sell its entire 70% Lesotho has recently commenced engagement with stake to Vietnamese telecoms firm Viettel Group fell the sector on the proposed introduction of customer through. The French company reiterated that the Africa registration regulations in that country,’ Chairman of and Middle East region remains a strategic priority for South Africa-based telecoms firm Vodacom Group the group, adding that the divestment reflects Orange’s said. Lesotho remains one of only a handful of African ‘constant focus on optimizing its portfolio of assets’. countries without any form of SIM registration Kenya’s National Treasury Cabinet Secretary said that legislation in place. Vodacom has also revealed that under the terms of the deal, Helios acquired a 60% stake its local unit’s mobile service license was extended on in Telkom Kenya through its wholly-owned subsidiary June 1, 2016 for a further 20 years. Vodacom is Lesotho’s Jamhuri Holdings Limited, while at the same time the largest mobile operator by subscribers, with a total user Kenyan government increased its holding in the firm base of 1.399 million at the end of March 2016, well from 30% to 40%.(June 13, 2016) Capital FM ahead of sole rival Econet Telecom Lesotho (ETL) with around 512,000 cellular customers at the same date. Kyrgyzstan (June 24, 2016) telegeography.com The auction for 100% of shares in Kyrgyzstan government-owned Alfa Macedonia Telecom (Megacom) – scheduled to Telecoms regulator, the Agency for take place on 16 June 2016 – has been Electronic Communications (AEK), is declared invalid due to lack of bids, cited in a statement reportedly planning to ‘create conditions’ from the State Property Management Fund. In May this for the entry of a new mobile network year the government had postponed the auction of operator and an MVNO in Macedonia, following a 15% its Megacom shares from a previously mooted date of rise in mobile tariffs. AEK Director Saso Dimitrijoski said May 10, 2016, setting a new deadline for applications that competition in the Macedonian market has been to participate in the tender to June 15. The change of negatively affected following the merger of Makedonski date was reportedly to allow potential investors more Telecom (MakTel) and T-Mobile (completed in July 2015) time to examine the company up for privatization. and the convergence of Macedonian cable operator (June 17, 2016) Tazabek Blizoo and its sister company One.Vip – which was itself established after Telekom Slovenije’s subsidiary ONE and Kyrgyzstan will complete the transition from analogue Telekom Austria’s domestic unit Vip Operator agreed to to digital terrestrial television (DTT) by July 31, 2016; combine their operations in October 2015 – on May 11, according to reports citing information announced by 2016. He added that the regulator will not allow citizens the Ministry of Culture, Information and Tourism on June to pay more for the same services following the market 9. It is understood that the third phase of the migration changes. As a result, the AEK has sent over 70 letters has taken place, taking DTT coverage to 85% of the of interest to leading global operators regarding the Kyrgyz population. The fourth and final phase, which has new conditions for the opening of the market for new been allocated KGS37 million (US$544,000), will increase entrants. (June 10, 2016) Daily Verec coverage to 95%. Tariffs for DTT services have reportedly been approved by the National Communications Agency (NCA). The analogue TV switch-off will free up Malaysia additional frequencies suitable for 4G mobile broadband. A nationwide pre-paid registration audit (June 10, 2016) Tazabek on dealers and agents of communication companies offering mobile cellular Kyrgyzstan is relaunching an auction for defunct CDMA services is currently being conducted, the Company Zheti Mobile, which until last month operated Malaysian Communications and Multimedia Commission small-scale CDMA services under the 7Mobile banner, (MCMC) has announced. In a press release the regulator based on the restructured assets of bankrupt CDMA said that the purpose of the audit is to ‘check on the operator Aktel (Fonex). The auction will take place on accuracy and validity of the records of subscribers taken June 13, 2016 with an initial price for an ownership stake by dealers and agents at the point of registration’, while it quoted as US$2.295 million. Previous sale attempts for also aims to ensure that customers’ personal information the former Aktel assets failed in June-July 2015, whilst is protected. According to the MCMC, the results of the on May 7, 2016 the Kyrgyz economy ministry posted a audit will be used to strengthen and support the review notice on its website announcing a new public auction of both the ‘Guidelines on Registration of the End-Users for the sale of Aktel’s former base stations and other of Prepaid Public Cellular Services’ and the ‘Dealers telecommunications equipment with a starting price and Agents Code of Ethics’, which are scheduled to be of KGS47.664 million (US$697,000), scheduled for May completed by the end of 2016 and in 2017, respectively.

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The audit is already underway, having started in the permission to swap its AWS-3 spectrum with its rival’s Northern region, in the states of Perlis, Kedah, Penang allocation, in order to secure contiguous blocks of and Perak, with data being checked at some 9,513 spectrum in the 1710MHz-1755MHz and 2110MHz- registered dealers. Audits for other regions in Malaysia 2155MHz bands. This request was approved on May meanwhile are expected to be completed by the end of 25, in an extraordinary session, as it is perceived to this year. (June 27, 2016) telegeography.com encourage more efficient use of the resources. the full cost of the concessions will be spread over the course of the licenses’ 15-year lifespans, while initial payments Mexico have been set at MXN2.1 billion (US$117.4 million) for Telcel and MXN1.0 billion for AT&T. In total, the Mexico’s Federal Telecommunications process will generate MXN43.7 billion for the Mexican Institute (Instituto Federal de government, of which Telcel will pay MXN31.0 billion Telecomunicaciones, Ifetel) will delay and AT&T MXN12.7 billion. (June 1, 2016) telegeography.com its announcement of the winners of its nationwide 700MHz open access network tender until November 17, 2016, citing the complexity of some 900 queries submitted by the bidders, as well as Myanmar certain requests from international financial institutions Myanmar’s internet user base has interested in backing the project. The Secretariat increased from 2 million in 2014 to more of Communications and Transport (Secretario de than 39 million in mid-2016. The number of Comunicaciones y Transportes, SCT) was initially SIM cards in circulation has also increased expected to declare the tender winners on August 24. by almost 400 percent in the period. Myanmar ended In light of the postponement, interested applicants now May with 43.72 million SIM cards sold by Myanmar’s four have until October 20 to submit bids. Final contracts will operators Telenor, Ooredoo, state-owned Myanma Posts be signed on or before January 27, 2017. The shared and Telecommunications (MPT), and MECtel, a subsidiary network, which will have exclusive use of a 90MHz of military-run Myanmar Economic Corporation. block of spectrum in the 700MHz band, was written into The figure represents a mobile penetration of 89.38 Mexico’s constitution in 2013 as part of a sector overhaul percent of the country’s population, said U Soe Thein, designed to curb the dominance of America Movil director general at the Posts and Telecommunications (AM)-backed Telcel. The plan calls for groups of private Department. This compares to a mobile penetration of companies to bid for the right to build and run the 6.99 percent at end-2012. According to U Soe Thein, network, which would rent capacity to mobile providers. most internet users in Myanmar go online using 3G Current government assumptions price the overall mobile broadband connections. “Before we initiated project at around US$7 billion, down from an original telecoms reforms, less than 2 million people used the US$10 billion ten-year projection, with the number of internet. By 2015-16, there were 39 million internet users cell towers likely to be closer to 12,000 than the initially in Myanmar,” he said. The number of towers deployed forecast 20,000. (July 21, 2016) telegeography.com across the country also increased from 3,000 in 2013 to 11,700 in 2016, while the national fiber backbone has expanded from 7600 kilometers in 2013 to 31,000 km in Telecoms regulator has officially granted 4G licenses that mid-2016. (July 21, 2016) Myanmar Times were won by AT&T and America Movil at auction earlier this year. In total, 80 MHz of AWS-1 and AWS-3 spectrum were tendered. AT&T picked up two blocks of AWS-1 The establishment of Myanmar’s fourth cellco has been spectrum with a bid of 1.87 billion pesos (€90.61 million), delayed by prolonged negotiations between the three while America Movil, which offers mobile services in stakeholders in the new firm: government shareholder Mexico under the Telcel brand, bid MXN2.13 billion Star High Public Company Ltd, Vietnamese operator for six 5 MHz blocks, two in the AWS-1 band and four Viettel and Myanmar National Telecom Holding, a in the AWS-3 band. Some AWS-3 spectrum remained consortium of local companies. The Myanmar Times unsold. The auction ended in February, and the results cites a source familiar with the matter as saying that talks were confirmed by telco watchdog the Instituto Federal between the trio have encountered a number of sticking de Telecomunicaciones (IFT) in March. In a statement points, particularly around decision-making and the role released over the weekend, the IFT said AT&T and Telcel of the future CEO, and financing. Commenting on the each paid the first installment of their license fee on talks, U Zaw Oo, the chair of the joint venture formation time. (June 1, 2016) totaltele.com and tender selection committee said: ‘We are going into very detailed negotiations. The stakeholders think it is important to get everything onto the table and try to get Mexico’s Federal Telecommunications Institute (IFETEL) an agreement rather than wait and see.’ Meanwhile, the has confirmed that it has formally handed over the unnamed source also stated that the new company could Advanced Wireless Services (AWS) spectrum blocks incorporate the existing business of MECTel, which, along that were awarded to America Movil (AM)-backed Telcel with Star High Public Company Ltd, is owned by military- (registered as Radiomovil Dipsa) and AT&T Mexico controlled Myanmar Economic Corporation (MEC). (registered as AT&T Comunicaciones Digitales), in MECTel currently operates as an MVNO over the network February this year. AT&T initially bid on paired AWS- of Myanmar Post and Telecommunications (MPT). ‘As 1 spectrum in the 1730MHz-1755MHz/2130MHz- a general principle, the idea is to leverage MECTel’s 2155MHz bands, while Telcel was allocated spectrum assets – at least those ones that can be commercially at 1710MHz-1730MHz/2110MHz-2130MHz, as well as used – as well as the existing subscriber base, to make AWS-3 spectrum in the 1760MHz-1780MHz/2160MHz- sure there [are] four operators, not five,’ the source 2180MHz bands. On 17 May, however, Telecel requested explained, adding: ‘The idea is also that MECTel, through

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Star High, together with an international operator and rivals to compete effectively. The commission presented the local consortium, becomes a full part of the licensed these points in its Statement of Preliminary Issues late telecom landscape consisting of four telecom operators.’ last week. Interested parties have until July 28 to submit (July 14, 2016) telegeography.com comments on the statement. The regulator will make a decision in the case by November 11 or possibly sooner, if its investigation does not uncover any major issues. Netherland (July 18, 2016) totaltele.com The Authority for Consumers and Markets (ACM) is proposing a relaxation New Zealand’s Ministry of Business, Innovation and of regulation in the country’s residential Employment (MBIE) has opened a consultation into fixed telephony market. The watchdog proposed changes to the country’s Telecommunications says that no one company has a dominant position Act to introduce a ‘utility-style’ regulatory framework for in terms of fixed voice services for home users, with fixed line communication services. The options paper incumbent telco KPN having seen its market share also discusses the future of mobile regulation, as well whittled away by the likes of cableco Ziggo and smaller as digital convergence and net neutrality issues, and operators such as Tele2 and Caiway. ACM says that the improving the handling of consumer complaints by the traditional PSTN sector has declined in recent years; telecommunications sector. John Wesley-Smith, General 85% of connections are now via IP-based access and Manager for Regulation at dominant fixed line provider the regulator expects this figure to rise to 95% by 2019. Spark, has welcomed the review, saying: ‘We see this as Most fixed lines are now taken as part of multi-play another step towards the provision of certainty to the bundles with internet and/or TV services. The business industry and, ultimately, ensuring that New Zealand services sector will remain regulated, however, as KPN telecommunications regulation is fit for purpose in the retains its dominant position in that market. ACM is digital age and will support investment and innovation, calling for comments on its plans before it submits a final as well as a healthy, competitive market for the benefit proposal to the European Commission (EC) for approval. of consumers. We are especially pleased to see the (July 19, 2016) telegeography.com importance of network quality regulation recognized in the paper, considering the high level of consumer and industry frustration we are seeing in the current model.’ New Zealand (July 12, 2016) telegeography.com New Zealand’s Commerce Commission is opening an investigation into the New Zealand’s mobile market leader Vodafone NZ prospective competition issues arising is to merge with local pay-TV operator Sky Network from Vodafone and Sky’s merger plan, Television. Sky, which is New Zealand owned and not with a particular focus on whether the merged entity part of the European satellite TV group of the same would be able to push out rivals or make them less name, says it is looking to create a ‘leading integrated able to compete. Vodafone New Zealand and Sky telecommunications and media group’ which will offer Network Television announced their NZ$3.44 billion ‘New Zealand’s best entertainment content across all tie-up six weeks ago and submitted separate merger platforms and devices in a rapidly evolving media and clearance applications to the Commerce Commission telecommunications market’. Sky will acquire all of the in late June; both insisted that the transaction will not shares in Vodafone NZ for a total purchase price of lessen competition in the residential broadband or pay NZD3.437 billion (US$2.33 billion) through the issue TV sectors, where they do not currently compete. The of new Sky shares – giving UK-based Vodafone Group regulator seems inclined to agree, to a certain extent. The a 51% interest in the merged company – plus a cash Commerce Commission said it will look at the unilateral consideration of NZD1.250 billion, to be funded through effects of the deal – whether the merged entity will be new debt. The combined group is expected to deliver able to raise prices or reduce quality – but notes that this cost, capital expenditure and revenue synergies with is an unlikely outcome, given that the firms operate in a net present value of approximately NZD850 million. different markets. It “appears to be the case,” that there Vodafone NZ is New Zealand’s leading cellco and is no meaningful competitive overlap between the two number two broadband provider, with over 2.35 million operators at present, it said. However, “we will consider mobile connections and more than 500,000 fixed line whether the parties would become more meaningful customers, while Sky is the country’s largest pay-TV competitors without the merger,” it added, noting that operator, with over 830,000 subscribers. Vodafone the investigation will consider whether, in absence of recently announced the completion of its rollout of the merger, Vodafone might start providing content on wireless broadband networks under the government- a standalone basis to compete with Sky, or whether Sky backed Rural Broadband Initiative (RBI), with 154 new could launch telecoms services, for example. “If such cell sites deployed under the NZD300 million schemes. expansion would be likely without the merger, then any (June 9, 2016) telegeography.com potential competitive constraint from this would be lost as a result of the proposed merger,” the regulator said. “This could result in higher prices or decreased service Nigeria levels relative to the ‘without the merger’ scenario.” The The Nigerian Communications Commerce Commission explained that the main focus of Commission (NCC) has announced that its investigation will be on “the vertical and conglomerate MTN Nigeria, the country’s largest mobile effects” of the merger; that is, it will consider whether operator by subscribers, emerged as the combined business would make it more difficult for the sole approved bidder in the recently concluded

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2600MHz spectrum allocation process. The regulator has year to effect an improvement in their mobile internet provisionally awarded 2×30MHz blocks of frequencies services and to expand coverage. The regulator’s ruling in the 2600MHz range to the South Africa-based firm, comes in the wake of the recent decision to approve which has 21 days from the date of provisional award the joint use of mobile frequencies – including precious (June 13, 2016) to pay the US$96 million fee for the ten- 700MHz spectrum – previously controlled by a number year nationwide license. If it fails to do so, MTN will lose of San Miguel Corp (SMC) telecoms subsidiaries. With the license and also forfeit the intention-to-bid deposit. the NTC currently reviewing the PHP69.1 billion (US$1.48 NCC resumed the procedure for its 2600MHz spectrum billion) deal for SMC’s assets, its Deputy Commissioner auction in March, after the process was postponed twice Edgardo Cabarios has urged PLDT and Globe Telecom last year ‘for administrative reasons’. A total of 14 lots to begin using the additional bandwidth immediately, of paired 2×5MHz frequency division duplex (FDD) warning that failure to comply will mean the recall of spectrum in the 2500MHz-2570MHz and 2620MHz- the frequencies. Further, the watchdog has told the pair 2690MHz bands (totaling 2×70MHz) was offered up, that in the next 60 days they must each submit a three- with each lot having a reserve price of US$16 million. year network rollout program detailing how they intend Last month it was announced that MTN, the sole to cover a minimum 90% of all cities and municipalities qualified bidder, had expressed an interest to bid for six after gaining access to the so-called valuable spectrum of the lots on offer, equivalent to 2×30MHz of spectrum. frequency (VSF) 700MHz band. On May 27 the NTC According to the rules of the auction, ‘if the aggregate approved the use by both operators of certain radio demand from approved bidders is less than, or equal frequencies in the 700MHz, 900MHz, 1800MHz, 2300MHz to the number of lots on offer … the Commission will and 2500MHz bands. Cabarios notes that approval for provisionally award the license to the party/parties at use of the 700MHz and 1800MHz frequencies means the reserve price’, totaling US$96 million for the six lots. that PLDT and Globe will not necessarily need to build (June 23, 2016) telegeography.com more cell sites to improve services in the short term. Given that a cell site takes an average of six months to MTN Group has announced that it has agreed to pay one year to build, with the spectrum available for their the federal government of Nigeria a total of NGN330 immediate use, the two companies now need only to billion (US$1.7 billion) over three years, in a full and final install radio equipment at existing sites. It is understood settlement of the fine it received last year for failing to that as part of the SMC deal, PLDT and Globe acquired disconnect around 5.1 million incompletely registered a total of 2,000 cell sites spanning from Pampanga to subscribers. The NGN50 billion ‘good faith’ payment Batangas. (June 2, 2016) telegeography.com made by MTN Nigeria on February 24, 2016 forms part of the monetary component of the settlement, leaving a balance of NGN280 billion outstanding, which will be Poland discharged as follows: NGN30 billion on July 8, 2016, Poland’s telecom regulator has finalized NGN30 billion on March 31, 2017, NGN55 billion on the allocation of spectrum suitable for LTE 31 March 2018, NGN55 billion on December 31, 2018, services, resolving a situation that was NGN55 billion on March 31, 2019, and finally NGN55 created when one of the license winners billion on 31 May 2019. In addition to the fine, South pulled out of the process earlier this year. Regulatory Africa-based MTN Group said it would ‘take immediate body the Office of Electronic Communications (UKE) steps to ensure the listing of its shares on the Nigerian announced the results of a long-running auction of Stock Exchange as soon as commercially and legally frequencies in the 800 MHz and 2.6 GHz bands in possible after the date of execution of the settlement October last year and in January formally allocated agreement’. MTN Chairman said that the local listing will the spectrum to the winning operators, giving them be carried out when market conditions are appropriate two weeks to pay the sums pledged. However, Netnet, and will not result in the parent company losing control which won one 5-MHz block of 800-MHz spectrum, of the unit. MTN Nigeria was initially fined a total of reneged on the deal, triggering discussions between the NGN1.04 trillion by the NCC in October 2015, based on a regulator and the remaining license winners regarding penalty of NGN200,000 for each unregistered subscriber, the destination of that spectrum block and the position although this was cut by the regulator to NGN780 billion of other frequency allocations. The UKE confirmed that in December. MTN launched legal action against the the remaining 5 MHz of 800-MHz spectrum would go fine later that month, before withdrawing its lawsuit in to T-Mobile Polska, as expected and shared details February and paying NGN50 billion to the government, of the positions awarded to the other two winning on the basis that this would be applied towards a companies, Orange and P4. T-Mobile, which initially won settlement. In a possible complication to the settlement, one 800-MHz spectrum block in the sale, was granted however, the House of Representatives has said it was two contiguous blocks at 806 MHz-816 MHz/847 MHz- surprised by the deal, as its own investigation into the 857MHz. Orange’s two blocks stand at 791 MHz-801 fine has not yet been concluded.(June 13, 2016) Bloomberg MHz/832 MHz-842 MHz, while P4 comes in between its rivals with one block at 801 MHz-806 MHz/842 MHz- 847MHz. UKE president Magdalena Gaj described the Philippines process of finalizing the spectrum allocations as the Telecoms watchdog the National most important in recent years. The process “opens a Telecommunications Commission (NTC) new stage in the development of the mobile Internet in has given the country’s two dominant Poland,” she said, in a local language statement. Allowing operators, Philippine Long Distance T-Mobile and Orange contiguous frequencies in the Telephone Company (PLDT) and Globe Telecom, one 800-MHz band will make more efficient use of the band, Gaj noted. The regulator did not change any spectrum

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SAMENA TRENDS JUNE-JULY 2016 positions in the 2.6 GHz band, which is split between said that under Article 23 of Law No. 2011-01 of February Orange and T-Mobile with three paired 5-MHz blocks 24, 2011 on Telecommunications Code, it is renewing each, and Polkomtel and P4 which each hold four blocks. the operating concessions of the telco for fixed, 2G and (June 27, 2016) totaltele.com 3G services for a period of 17 years – starting August 8, 2017 – while also licensing mobile arm Orange to offer 4G LTE for a similar period, from the date of the award. Russia According to the regulator, Sonatel will pay XOF32 billion Beeline this week issued a pessimistic for the 4G license which comprises 10MHz of spectrum forecast for Russia’s mobile market in 2016, at 1800MHz and 10MHz in the 800MHz band. The as competition between the country’s operator is obliged to begin marketing 4G within two Operators heats up. In its annual market months of the frequency assignment date – i.e. August. report, published on Monday, the Vimpelcom-owned Sonatel (Orange) is required to provide coverage of 70% operator said 2015 was the first year of declining revenue in five years (up from a 65% stipulation previously) and growth in Russia, caused by various factors, not least 85% to 90% in ten years. The ARTP also notes that it has of all the cannibalization of traditional mobile services removed rights to use the 700MHz band and trimmed by over-the-top (OTT) players, particularly WhatsApp. the duration of the operating license from the original Beeline said mobile network expansion and the 20-year term it had proposed. (June 27, 2016) telegeography.com depreciation of the rouble have squeezed margins, while Senegal’s industry watchdog, the Regulation Authority increasing competition forced operators to constantly of Post and Telecoms (Autorite de Regulation des review their price plans. Russia is home to four major Telecoms et des Postes, ARTP), has confirmed that it has mobile operators: MTS, MegaFon, Beeline and Tele2, the renewed the operating licenses of state-owned fixed last of which has embarked on an aggressive rollout plan and mobile operator Sonatel, for a total consideration following its 2014 merger with Rostelecom. According of XOF100 billion (US$171 million), including the to Beeline, SIM-card penetration stands at nearly 190%. ‘extension of its scope’ to offer 4G.ARTP said that under In 2015, Beeline said the big four saw combined service Article 23 of Law No. 2011-01 of February 24, 2011 on revenue fall 0.1%, compared to growth of 2% in 2014. Telecommunications Code, it is renewing the operating Beeline said it expects this trend to continue for the next concessions of the telco for fixed, 2G and 3G services one to two years, with competition ramping up further for a period of 17 years – starting 8 August 2017 – while in 2016 as players copy each other’s initiatives in a bid to also licensing mobile arm Orange to offer 4G LTE for a steal market share. The “Russian market has moved into similar period, from the date of the award. According a phase of stagnation,” Beeline said, predicting that it will to the regulator, Sonatel will pay XOF32 billion for contract by 0.3% this year. (June 2, 2016) totaltele.com the 4G license which comprises 10MHz of spectrum at 1800MHz and 10MHz in the 800MHz band. The operator is obliged to begin marketing 4G within two Yekaterinburg-based regional operator MOTIV months of the frequency assignment date – i.e. August. (registered as Ekaterinburg-2000) has been given Sonatel (Orange) is required to provide coverage of 70% permission to introduce voice-over-LTE (VoLTE) in five years (up from a 65% stipulation previously) and technology by the Russian regulatory authorities. 85% to 90% in ten years. The ARTP also notes that it has MOTIV technical director Alex Artemas commented: removed rights to use the 700MHz band and trimmed ‘VoLTE guarantees high voice quality … subscribers the duration of the operating license from the original will definitely feel the difference’. Ericsson rolled out 20-year term it had proposed. in January 2016 the ARTP MOTIV’s 1800MHz LTE network, which was commercially announced that the call for applications for fourth- launched in December 2014 in the main population generation mobile licenses had received no bids from settlements within its network footprint. In February the three incumbents – the other two being Tigo, a unit 2016 MOTIV increased its 4G resources by winning a of Millicom International Cellular (MIC), and Sudatel’s time division duplex LTE (TD-LTE)-suitable (2600MHz) Expresso Telecom – suggesting they may have boycotted license in the 2570MHz-2595MHz band. The concession the process over a disagreement on the license fee. covers Sverdlovsk, Kurgan, Tyumen, Ugra and Yamal. With the regulator refusing to revise its reserve price (June 2, 2016) ComNews.ru of XOF30 billion for the 20-year concessions, the ARTP confirmed that on December 17. 2015 it received ‘in open violation of the Public Procurement Code and the Senegal consultation regulations (Article 3.4 and Article 7.14 of Senegalese mobile network operators the Regulations of Call for Candidacy) … a signed letter (MNOs) Tigo and Expresso Telecom have [from the] three operators to report their concern about opened talks with the country’s telecoms the license reserve price’. At the time, ARTP Director regulator the Regulation Authority of Post reiterated that the watchdog considered the license fee and Telecoms (Autorite de Regulation des Telecoms et to be appropriate, adding that it was set as a result of des Postes, ARTP) to secure 4G operating licenses. The ‘a benchmark of over 20 countries in the world, taking move comes hard on the heels of the recent award of into account the quality and quantity of available a next generation concession to Sonatel – operator frequency bands (700MHz, 800MHz and 1800MHz), of the Orange brand in the country. Last week ARTP the population, income of the telecom market in confirmed the renewal of the operating licenses of Senegal and obligations of the license for 4G coverage. state-owned fixed and mobile operator Sonatel, for a (June 23, 2016) telegeography.com total consideration of XOF100 billion (US$171 million), including the ‘extension of its scope’ to offer 4G. ARTP

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Serbia country’s existing mobile network operators, Singtel, StarHub and M1; the new entrant, presuming it exists at The European Bank for Reconstruction that stage, will also be permitted to take part. The main and Development (EBRD) has reiterated auction will include 175 MHz of spectrum across the 700 its interest in investing in Serbia’s state- MHz, 900 MHz, 2.3 GHz and 2.5 GHz bands. The 700- owned telco Telekom Srbija, which MHz and 900-MHz frequencies will be split into lots of offers services under the MTS brand. EBRD’s Director 2x5 MHz and will carry a minimum price of S$20 million for Serbia, Daniel Berg said that the bank is planning per lot. 5-MHz lots of 2.3-GHz and 2.5-GHz frequencies to invest more than EUR300 million (US$341.4 million) have a reserve price of S$3 million. Licenses in the in Serbia, as part of a program to channel over EUR1 700 MHz band will start from January 1. 2018 and will billion into the western Balkans. During the most recent have duration of 15 years. All other bands are available attempt to privatize the telco, the EBRD was one of six from April 1, 2017 and licenses will last for 16 years. bidders to submit an offer for the government’s majority (July 15, 2016) totaltele.com stake. None of the bids reached the government’s minimum price of around EUR1.4 billion, however, and in December 2015 Belgrade confirmed that MTS would Telecoms regulator, the Infocomm Development remain in state hands. (June 9, 2016) News Portal Vesti Authority (IDA), has laid down strict 4G rollout targets for the city-state’s mobile operators, requiring that they provide coverage of more than 95% of outdoor areas Singapore from July this year, rising to over 99% in July 2017 and The Infocomm Development Authority of more than 99% of tunnels by July 2018. The IDA has Singapore (IDA) has issued clarifications announced its rollout guidelines amid growing calls for to queries relating to the 700 MHz, 900 strengthened regulation, noting that by January 2019 it MHz, 2.3 GHz, and 2.5 GHz spectrum expects 4G licensees to have boosted in-building signal rights auction. IDA has also issued the final Information coverage to more than 85%. Furthermore, the watchdog Memorandum and Auction Rules. Interested bidders can says that any new network operators will also have to submit the Expression of Interest Document to IDA by adhere to the new standards, although they will be September 1. The auction will determine Singapore’s given more time to deploy their networks. As at March fourth mobile network operator. Interested companies 31, 2016, between them the country’s three incumbent should submit their application forms, including cellcos – Singtel, StarHub and M1 – had a total of 4.242 supporting documentation to prove they have sufficient million 4G subscribers, of which 3.771 million were on funds. The regulator will take 20 days to assess their post-paid contracts. (June 1, 2016) telegeography.com Expression of Interest applications and provide the necessary training to participants on how to use the IDA’s computerized auction system. IDA plans to start Slovenia the sale of frequencies in early October, and award The Agency for Communications the fourth MNO license in Singapore in April 2017. Networks & Services (Agencija za (July 18, 2016) telecompaper.com komunikacijska omrezja in storitve, AKOS) has cancelled its tender for 1800MHz IDA issues updated rules for forthcoming auction of and 2100MHz spectrum and relaunched the sale. The mobile frequencies in 700 MHz, 900 MHz, 2.3 GHz and regulator says it received two bids for frequencies by the 2.5 GHz bands, including reserved airwaves for market July 4 deadline, from Telekom Slovenije and Telemach, newcomer. Would-be new entrants to Singapore’s but under the conditions of the sale it must receive at mobile market have until 1 September to file documents least two competing bids for each block. A new auction expressing their interest in taking part in the upcoming has been launched and will run until August 8. At the spectrum auction, the country’s telecoms regulator start of June, AKOS is offering 2×10MHz in the 1800MHz announced. In an amended auction rules paper, the band (1775MHz-1785MHz paired with 1870MHz- Infocomm Development Authority of Singapore (IDA) 1880MHz) valid until 2031, plus 2×5MHz at 2100MHz said it will make a decision within 20 business days of the (1955MHz-1960MHz paired with 2145MHz-2150MHz) deadline on whether or not to qualify prospective bidders valid until 2021. The 1800MHz spectrum carries a reserve for the new entrant auction. It did not specify exactly price of EUR2.6 million (US$2.95 million) per 2×5MHz when the auction will take place. It is likely to happen block, while the 2100MHz block has a reserve price of before the end of the year though, with the spectrum EUR1.3 million. (July 12, 2016) telegeography.com up for grabs having a start date of April 1, 2017. As previously announced, the IDA has reserved a package of 60 MHz of spectrum in the 900 MHz and 2.3 GHz bands The Agency for Communications Networks & Services for a newcomer, setting a reserve price of S$35 million (AKOS) has opened a tender for spare spectrum in (€22.5 million). Companies that do not already operate a the 1800MHz and 2100MHz bands. The regulator is nationwide mobile network in Singapore will be able to offering 2×10MHz in the 1800MHz band (1775MHz- take part in the new entrant auction, provided they pass 1785MHz paired with 1870MHz-1880MHz) valid until the prequalification phase, the regulator said earlier this 2031, plus 2×5MHz at 2100MHz (1955MHz-1960MHz year, noting that it has witnessed strong interest in the paired with 2145MHz-2150MHz) valid until 2021. The process. Indeed, there appear to be a number of names 1800MHz spectrum carries a reserve price of EUR2.6 in the frame, including OMGTel and MyRepublic. Once million (US$2.95 million) per 2×5MHz block, while the the new entrant auction has taken place, the IDA will 2100MHz block has a reserve price of EUR1.3 million. sell off the remainder of its available spectrum to the The deadline for submission of tenders is 4 July. (June 6, 2016) telegeography.com

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South Africa SK Telecom said it would respect the decision, adding that it would ‘do its best to help the domestic media South Africa’s telecom regulator has industry leap one step further in the global arena’. formally invited applications to take part Nonetheless, the mobile market leader said it regretted in an upcoming auction of spectrum that it had been unable to persuade the authorities to in the 700 MHz, 800 MHz and 2.6 GHz allow the transaction, adding: ‘Global media companies bands. The Independent Communications Authority of are waging ‘’borderless warfare’’ in the over-the-top South Africa (ICASA) made the announcement late last content business [delivery of audio and video content week, bringing to an end years of debate over spectrum over the internet], and changes and innovations are allocations in the country. “The main aim of licensing 700- urgent when Korea cannot be an exception in the MHz, 800-MHz and 2600-MHz is to ensure nationwide competition.’ SK Telecoms rivals have – as might be broadband access for all citizens by 2020 in line with expected – proved happier with the ruling, with a joint the National Development Plan (NDP) and SA Connect statement issued by KT Corp and LG Uplus stating: ‘We Policy,” ICASA said. The allocation of more spectrum greatly feared more monopoly in the broadcasting will help boost affordability and quality of services, as and telecom markets and the loss of consumer welfare well as promoting investment in the telecoms sector caused by SK Telecom’s acquisition of CJ HelloVision and thereby facilitating economic growth, the regulator … So we have been expressing the view that the M&A added. Like many markets, South Africa’s operators need should be banned, and the FTC’s decision reflects this.’ more spectrum to keep up with the growing demand (July 19, 2016) The Korea JoongAng Daily for mobile data. “The lack of availability of spectrum for IMT brings constraints and challenges in the provision of broadband services,” ICASA said. “In order Sweden to address South Africa’s bandwidth deficiency, the Sweden’s telecoms regulator has invited current allocated bandwidth of 567 MHz IMT spectrum bidders to submit applications for two needs to be increased.” The regulator did not provide mobile spectrum auctions that will take further details of the auction in its official statement, but place before the end of the year. Most Bloomberg secured additional comment. The state is significantly, the Swedish Post and Telecom Authority selling five spectrum blocks at a reserve price of 3 billion (PTS) plans to auction off 700-MHz frequencies on rand (€189 million) each, the newswire said. It has invited December 1 and has given would-be bidders until major telcos, including Vodacom and MTN, to take part 1 November to apply to take part. It has 30 MHz of in the process. (July 19, 2016) totaltele.com paired spectrum available, which it has split into four 5-MHz blocks and one 10-MHz block; the latter carries Sipho Maseko, CEO of South African telecoms operator a coverage obligation for the rollout of voice and Telkom, has disclosed that his company is planning broadband services in hard-to-reach areas. Bidders will to refarm a portion of its spectrum holding in the be restricted to a maximum of 2x20 MHz each. This 1800MHz band for 4G LTE technology. Telkom’s decision guarantees that at least two winners will emerge, but follows the collapse of its proposed network sharing not preclude more players walking away with spectrum, and infrastructure outsourcing deal with MTN South the PTS explained, in a statement. The licenses will run Africa in August 2015; the agreement was opposed by from April 1 next year until the end of 2039. The PTS local antitrust authority the Competition Commission made a new announcement, inviting interested parties (CompCom). Telkom applied for 2×12MHz of spectrum to apply to participate in a separate auction of spectrum in the 1800MHz band from market regulator the in the 1800 MHz band that will take place in the autumn. Independent Communications Authority of South Africa It is auctioning off a single 5-MHz block of paired 1800- (ICASA) in February 2008, and launched 2G services in MHz spectrum on October 24 and has set an application the band in October 2010. (June 8, 2016) telegeography.com deadline of 10 October. The spectrum in question is currently held by Net4Mobility, a joint venture between Telenor and Telenor, but the license is due to expire at South Korea the end of May next year. The new license will run from South Korea’s Fair Trade Commission June 1, 2017 to December 31, 2027. The regulator has (FTC) has reconfirmed that it will not set a reserve price of 40 million kronor (€4.2 million) give its approval for the controversial (July 5, 2016) totaltele.com planned acquisition of cableco CJ HelloVision by SK Telecom. Speaking at a press briefing Sweden’s parliament has adopted a law which aims Shin Young-sun, Secretary General of the antitrust to promote broadband deployment, based on an EU watchdog, explained the reasoning behind the decision, directive. The new law is designed to lower costs for the saying: ‘After reviewing SK Telecom’s acquisition of CJ expansion of broadband and to support the coordination HelloVision and merger between SK Broadband and CJ of various parties involved in deploying, accessing, Hellovision, we concluded that the deal may effectively providing or sharing fixed and wireless broadband limit competition in the paid broadcasting market as well infrastructure, regulator PTS reports. as the telecom retail and wholesale markets.’ Meanwhile, responding to questions over why the FTC had opted to The Act gives rights to those who want to develop oppose the merger, rather than demand a partial stake broadband, including: sale or impose a ban on the enlarged entity raising cable • the right to access information about the TV subscription rates, Shin argued that such measures infrastructure and construction projects would not be sufficient to limit the repercussions of the • the right to request access to other infrastructure tie-up. In response to the FTC’s latest announcement,

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• the right to coordinate construction projects with Mobile operators in Tanzania will now pay excise other building owners (‘the right applies if the latter duty on all ‘M-Pesa’ mobile financial services (MFS) is a public body, or if the project is financed by commissions. Unveiling his 2016/17 national budget, public funds’). finance and planning minister Dr. Philip Mpango said Similarly, obligations are imposed on infrastructure a new 10% excise duty on mobile money transactions owners, including obligations to provide information, will apply for both sending and receiving transactions. provide access to infrastructure and to coordinate According to the report, commission is currently only deployment. However, there are opportunities for the taken from senders. The Minister hopes that the plan will broadband system operator, under certain conditions, plug tax evasion loopholes in the ever-expanding MFS to deny access, the PTS adds. The regulator notes business, where billions of shillings are moved annually. that when the law comes into force on July 1, 2016, The country is home to 37.64 million mobile users, of new procedures will be needed for dealing with whom around 16 million are believed to utilize mobile dispute resolution and enforcement, whilst a new cash transfers. (June 10, 2016) All Africa portal is being launched for coordinating/sharing infrastructure. Besides telecoms infrastructure itself, the new rules under the ‘Law on Measures for the Thailand Development of Broadband Networks’ also cover access Thailand Jas Mobile has been fined to/information on civil/other infrastructure in areas almost THB200 million (US$5.6 million) such as transport, sewerage, electricity and heating. by the National Broadcasting & (June 10, 2016) telegeography.com Telecommunications Commission (NBTC) for its failure to pay for the technology-neutral (4G) 900MHz mobile license it won at auction in December. Tanzania Jas has the right to file an appeal with the Civil Court if The Tanzania Communications it disagrees with the decision. Meanwhile, it has been Regulatory Authority (TCRA) switched confirmed that the authorities will not revoke fixed off 1,713,337 invalid International Mobile broadband or digital TV licenses held by Jas Mobile’s Equipment Identity (IMEs) numbers on parent company Jasmine International Public Company June 16. Innocent Mungy, TCRA’s Head of Corporate as punishment, with NBTC Secretary General Takorn Communications, clarified that it is not that 1.7 million Tantasith cited as saying that the regulator had no handsets have been switched off. It is IMEIs that have authority to revoke such concessions as it could violate been switched off. One mobile phone handset can telecom laws and regulations. With regard to the fine have up to four IMEIs. A reported 117,389 IMEIs were itself, Takorn noted this had been calculated based on found to be duplicates, equating to 0.09% of all IMEIs, three elements: compensation for operating expenses with 2.96% of the total said to be invalid, and 96.95% incurred during the auction in December 2015; the believed to be genuine. TCRA acting Director General cost of the re-auction of the spectrum last month; and James Kilaba warned that users caught duplicating IMEIs interest starting from the date of Jas Mobile’s default on risk a fine of TZS10 million (US$13,362), 30 years in jail, payment in March 2015. Specifically, interest of THB169 or both, in accordance with the Electronic and Postal million was said to be based on an interest rate of 7.5% Communications Act. Six operators have been fined a applied to the first installment of THB8.04 billion that total TZS651.5 million for violating SIM card registration had been due by 21 March, with interest calculated from regulations, namely Benson Informatics, Zantel and the this date until 30 June, when Advanced Info Service (AIS), local units of Airtel, Millicom, Viettel and Vodacom. which acquired the 900MHz spectrum forfeited by Jas (July 7, 2016) The Citizen Mobile, is due to make its first payment. (June 3, 2016) telegeography.com The Telecom Regulatory Authority of India (TRAI) is seeking greater powers to penalize The Tanzanian government and Bharti Airtel of India cellcos for missing quality of service (QoS) standards, have signed a Memorandum of Understanding (MoU) after the Supreme Court overturned its order obliging to complete the state’s full takeover of national PTO providers to compensate consumers for dropped calls. Tanzania Telecommunications Company Limited (TTCL). The Economic Times quotes TRAI secretary Sudhir The MoU, which was signed in Dar es Salaam on June 23 Gupta as saying that the watchdog will write to the by the Treasury Registrar, Mr. Lawrence Mafuru, and the Department of Telecommunications (DoT) to request CEO of Bharti Airtel Africa, Mr. Christian De Fariasees, has an amendment to the TRAI Act to give the authority seen Airtel transfer its 35% stake in TTCL to the state. more powers: ‘We have sought powers to levy penalties TTCL’s Board Chairman, Professor Tolly Mbwette, is cited for consumer redressal’. The announcement follows as saying that the repossession of shares will allow the a QoS test carried out by the regulator in the capital operator to implement its business strategy, while it is which found that most carriers had not met the 2% noted that TTCL plans to list on the Dar es Salaam Stock threshold for dropped calls, and that service quality for Exchange as part of its five-year plan to raise USD330 several operators had degraded since the previous test. million to improve and expand its operations. The 35% Further, according to the regulator, Radio Link Timeout stake has been valued at around TZS14.6 billion (US$6.7 (RLT) technology is being used to mask dropped calls, million), with Bharti Airtel having rejected a former TZS5 by keeping calls connected even when service quality billion offer from the government in November 2014. drops. In these cases, calls are ended by the user and (June 27, 2016) The Daily News are not counted as dropped calls. The Cellular Operators Association of India (COAI) rejected the claims that RLT

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SAMENA TRENDS JUNE-JULY 2016 manipulation was being used to hide dropped calls. The United States DoT’s monitoring arm, Telecom Enforcement, Resource Some of the U.S.’s biggest mobile and Monitoring (TERM) Cells is investigating the claim, a operators and TV providers are among TRAI official added.(June 3, 2016) The Bangkok Post the 62 bidders to have qualified to take part in phase two of the country’s 600- The regulator, National Broadcasting and MHz spectrum sale, with bidding due to kick off in one Telecommunications Commission (NBTC) is reportedly month’s time, the Federal Communications Commission mulling plans to allocate up to 10MHz of spectrum in the (FCC) announced late last week. The qualified bidders 800MHz band to support the development of wireless include AT&T, Verizon and T-Mobile US; as expected, broadband internet both in high speed trains and the Sprint does not appear on the list, having announced wider telecoms sector. The NBTC and the Transport last year that it has no need for additional spectrum. Ministry have signed a Memorandum of Understanding The list also includes CC Wireless Investment, which (MoU) on ‘allocating the bandwidth for wireless railway according to the FCC’s database is an entity controlled communication under the high speed rail projects, using by cable operator Comcast, while satellite player Dish Global System for Mobile Communications-Railway Network is bidding as ParkerB.com Wireless. The U.S. (GSM-R) technology’. Confusing the issue, however, regulator plans to open bidding in the second part of Thai telcos are petitioning to use the 800MHz spectrum the auction, the forward auction, on 16 August. Part to beef up their mobile services – particularly in more one, or the reverse auction, was completed in late June rural areas where the lower band provides wider service after almost three months. Under the reverse auction, coverage. The paper notes that the spectrum in question the broadcasters holding 600-MHz airwaves committed is currently being used by Total Access Communication to freeing them up for mobile use...albeit at a price. (DTAC) under a CAT Telecom concession that will expire The reverse auction placed a US$86.4 billion price tag in September 2018. Although the regulator auctioned on the forward auction, naturally raising questions over off two licenses for 900MHz services in December last the telecoms industry’s ability and willingness to commit year – True Corp and Jasmine International subsidiary Jas such a hefty sum to more spectrum. Should cumulative Mobile Broadband each winning a concession, although bids in the second phase of the sale not reach that level; the latter has since had its application rescinded for non- the FCC will be forced to reopen the reverse auction in payment of the first installment, with it instead being order to bring the minimum price down. Such a move issued to Advanced Info Service subsidiary Advanced would also reduce the volume of spectrum available in Wireless Network – the 800MHz band is seen as vital the forward auction. As it stands, operators are being given the paucity of available lower-band spectrum. asked to pay around $2.15 per MHz per capita; on (June 1, 2016) The Nation balance analysts think it unlikely they will do so. Which means the so-called incentive auction is likely far from over. Bidding could well start in a month, but the end is Trinidad & Tobago not really in sight. (July 18, 2016) totaltele.com The Telecommunications Authority of Trinidad & Tobago (TATT) intends to issue The US Federal Communications Commission (FCC) has long-delayed 4G LTE mobile licenses completed the arrangements for the reverse auction in September this year, according to stage of repackaging the 600MHz spectrum. It is currently the regulator’s director Gilbert Petersen, quoted by used for TV broadcasting, but the intention is to convert TeleSemana. With licensing having been delayed from it for mobile wireless internet use. The FCC has calculated an original 2014 schedule, two concessions are now the minimum cash-out that broadcasters would accept reportedly earmarked for existing mobile operator in order for the auctions process to end. The amount Digicel T&T and cable/fiber operator Flow T&T. The is $86,422,558,704. The FCC has cleared 126 MHz of licensing of the latter is complicated, however, by the 600-MHz spectrum. According to auction regulations, fact that Cable & Wireless Communications (CWC) is operators’ cumulative bids in the forthcoming forward still yet to offload its 49% stake in government-backed auction must hit that $86.4 billion figure in order for the quadruple-play operator Telecommunications Services spectrum to be sold. At $86.4 billion, or approximately of Trinidad & Tobago (TSTT) to fulfill the conditions of $2.15 per MHz per capita, the FCC will almost certainly its March 2015 takeover of Flow, which itself does not have to conduct more rounds of the reverse auction in yet possess a mobile operating license. To date, TSTT order to lower the price. This will also have the effect provides the only LTE-based service in Trinidad & of reducing the volume of spectrum available. The last Tobago, based on a TD-LTE 2600MHz wireless broadband major U.S. spectrum auction concluded in January 2015, platform, whilst the TATT’s delayed LTE license tender and saw bidding for 65 MHz of spectrum in the 1700 includes spectrum in the 700MHz, 850MHz and MHz and 2.1 GHz bands reach almost $45 billion. The 1900MHz ranges. Mr. Peterson as saysaiding that he last time sub-1GHz spectrum went under the hammer does not expect to implement number portability (NP) was in 2008, when the FCC sold off 84 MHz of 700-MHz in August this year as had previously been proposed spectrum, and raised $18.6 billion. Many US analysts (following the postponement of an earlier schedule of and commentators are skeptical that the money will March). According to the regulator, neither TSTT nor be available from even the wealthiest carriers to afford Digicel have yet completed the necessary technical tests these prices. The forward auction is expected to begin for NP. (July 18, 2016) TeleSemana late in July or early August. (July 3, 2016) globaltelecomsbusiness.com

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The U.S completed the reverse auction stage of its two- The U.S. Federal Communications Commission said part incentive auction, placing a hefty US$86.4 billion the price of 126 MHz of television airwaves taken from (€77.8 billion) price tag on clearing TV airwaves so they broadcasters to be sold for wireless use in an ongoing can be reused for mobile services. In total, the Federal auction is $86.4 billion. But analysts said wireless Communications Commission (FCC) cleared 126 MHz providers may not be willing to pay the staggering of 600-MHz spectrum. According to the auction rules, amount for the airwaves to expand their networks, operators’ cumulative bids in the forthcoming forward which could prompt the FCC to hold another round of auction must hit that $86.4 billion figure in order for the auctions. The FCC disclosed the price in a statement after spectrum to be sold. If that target is not met – and at completing the first part of an auction to repurpose low- $86.4 billion, or approximately $2.15 per MHz per capita, frequency wireless spectrum relinquished by television that seems a highly likely outcome – then the FCC will broadcasters. “Strong participation from broadcast have to conduct further rounds of the reverse auction stations made this initial clearing target possible,” Gary in order to lower the price, which will have the effect of M. Epstein, chair of the FCC’s incentive auction task reducing the volume of spectrum available in the forward force, said in a statement. The so-called “broadcast auction. “Broadcasters have done our part; now it’s up incentive” spectrum auction is one of the commission’s to the wireless industry to demonstrate the demand is most complex and ambitious to date. In this round, there for low-band TV spectrum,” said Dennis Wharton, called a reverse auction, broadcasters competed to EVP of the National Association of Broadcasters (NAB). give up spectrum to the FCC for the lowest price. In The last major U.S. spectrum auction concluded in the next stage, the forward auction, wireless and other January 2015, and saw bidding for 65 MHz of spectrum companies will bid to buy the airwaves for the highest in the 1700 MHz and 2.1 GHz bands reach almost $45 price. If wireless companies are unwilling to pay $86.4 billion. The last time sub-1-GHz spectrum went under billion, the FCC may have to hold another round of the hammer was in 2008, when the FCC auctioned 84 bidding by broadcasters and sell less spectrum than had MHz of 700-MHz spectrum, raising $18.6 billion. One been expected, analysts said. Recon Analytics analyst could argue that the price of spectrum is bound to Roger Entner said the results confirm that broadcasters increase, what with the ongoing growth in data demand have “significantly inflated expectations.” “In an election and the fact that 126 MHz is a very large amount of year, with a lot of uncertainty with Brexit making the spectrum; however, $86.4 billion will be a stretch for even debt markets jittery,” it is unlikely that wireless operators the wealthiest U.S. telcos. “No one in their right mind with deeps pockets, such as AT&T Inc (T.N) and Verizon can think the carriers and whatever others are going to Communications Inc (VZ.N), would raise more debt come up with $86 billion,” said Roger Entner, founder to bid in the auction, Entner said. A second round of of Recon Analytics, in a Bloomberg report. In April the reverse auction later this year is likely, Dan Hays, 2015, the U.S. Congressional Budget Office estimated principal at audit firm PwC’s consulting arm Strategy&, that the incentive auction would raise $10 billion-$40 said in an email statement. “Indeed, we could well billion; however, it confessed that it was hard to predict see the proceedings drag on into early 2017 before an outcome because the FCC had never carried out an coming to a final conclusion,” Hays said. “Now it’s up incentive auction before. Wells Fargo analysts polled by to the wireless industry to demonstrate the demand is Bloomberg in January predicted that bids would total there for low-band TV spectrum,” National Association $33 billion, with AT&T, Verizon and T-Mobile accounting of Broadcasters spokesman Dennis Wharton said in for approximately $23 billion. Those three nationwide a statement. Companies that have applied to bid for operators are among the 104 companies that applied spectrum include wireless providers Verizon, AT&T to participate, but the fourth, cash-strapped Sprint, and T-Mobile US Inc (TMUS.O); and pay-TV providers ruled itself out early on. So did Google, while cablecos Comcast Corp (CMCSA.O) and Dish Network Corp Charter and Cablevision – the latter of which was (DISH.O). S&P Global Market Intelligence estimated recently bought by acquisitive cable group Altice – are in April that a dozen broadcasters, such as Univision not expected to bid either. However, some other big Communications Inc [UVN.UL], CBS Corp (CBS.N), names are likely to be involved. Cable giant Comcast is Sinclair Broadcast Group Inc (SBGI.O) and Media expected to take part, as is satellite provider Dish. Buying General Inc (MEG.N), could generate up to $13 billion up more spectrum and launching mobile services is seen in the spectrum auction at the high end of participation. as a logical way for TV providers to defend themselves (June 29, 2016) reuters.com against the likes of AT&T and Verizon, which has been muscling in on the TV market lately. Telcos themselves Federal Communications Commission (FCC) Chairman have kept quiet, while their lobby group the CTIA, Tom Wheeler this week talked up the role of the U.S. played it cool. “We are pleased to see the 600 MHz in the development of the fifth generation of mobile incentive auction move closer to delivering spectrum for technology and proposed new rules designed to free wireless providers so they can meet Americans’ mobile- up more spectrum for 5G. FCC commissioners will vote first lifestyles,” said CTIA chief Meredith Attwell Baker, in on the proposal on 14 July, Wheeler said in a speech a statement. “With mobile data usage expected to rise delivered to the National Press Club, and reproduced on six-fold by 2020, we will need to use all tools, including the U.S. regulator’s Website. “5G is a national priority,” an effective incentive auction process and high band Wheeler said, having waxed lyrical about the possible spectrum, to meet consumer demand and continue our applications for high-bandwidth, low-latency mobile, wireless leadership.” Will telcos ‘do their part’ as NAB’s touching on healthcare, education, connected cars, Wharton demands, or will they try to avoid ruining their smart energy and other areas. “This Thursday, I am balance sheets by spending less than $86.4 billion? I’m circulating to my colleagues proposed new rules that pretty confident that even I can guess the answer to that will identify and open up vast amounts of spectrum one. (July 1, 2016) totaltele.com

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SAMENA TRENDS JUNE-JULY 2016 for 5G applications,” Wheeler said. Operators have the government’s efforts to liberalize the telecoms and opportunity to gain more low-band spectrum suited for other sectors. (June 21, 2016) telecomasia.net wide-area coverage at the ongoing incentive auction that will free up frequencies in the 600 MHz band. The US Court of Appeals for the District of Columbia Meanwhile, the FCC has put rules in place for spectrum- Circuit upheld the Federal Communications Commission sharing in the 3.5 MHz band and is looking for other (FCC’s) Open Internet (net neutrality) rules, effectively opportunities in the mid-band. But the focus of next handing a defeat to telecoms operators trying to fend month’s vote is on high-band spectrum. According to off tighter oversight of the consumer broadband sector. Wheeler, the proposal he has circulated to his colleagues The ruling is likely to be considered a major victory will make the U.S. the first country in the world to open up for the Obama administration and companies such as high-band spectrum for 5G. “Unlike some countries, we Netflix and Google, and potentially paves the way for do not believe we should spend the next couple of years further pending regulatory steps that telecoms players studying what 5G should be, how it should operate, and have resisted thus far. The lawsuit against the FCC was how to allocate spectrum, based on those assumptions,” filed by a mix of broadband industry lobby groups and Wheeler said. “Turning innovators loose is far preferable ISPs, and follows the regulator’s controversial February to expecting committees and regulators to define the 2015 introduction of the 2015 Open Internet Order, in future,” he insisted. “We won’t wait for the standards to which it reclassified broadband as a telecoms service, be first developed in the sometimes arduous standards- subject to common carrier regulation under Title II of the setting process or in a government-led activity. Instead, Communications Act. Previously, the Court of Appeals we will make ample spectrum available and then rely had weighed in on Comcast Vs. FCC (2010) and Verizon on a private sector-led process for producing technical Vs. FCC (2014). FCC chairman Tom Wheeler commented: standards best suited for those frequencies and use ‘Today’s ruling is a victory for consumers and innovators cases.” Technological advances mean that high-band, who deserve unfettered access to the entire web, and it millimeter wave (mmWave) spectrum can be used in ensures the internet remains a platform for unparalleled 5G rollouts in dense urban areas served by sizeable innovation, free expression and economic growth. After numbers of small cells. Use of high-band frequencies a decade of debate and legal battles, today’s ruling means bigger blocks of spectrum will be available, affirms the Commission’s ability to enforce the strongest Wheeler said. Rather than blocks of 5 MHz and 10 MHz possible internet protections – both on fixed and mobile that are currently licensed to mobile operators, with 5G networks – that will ensure the internet remains open, “we are looking at blocks of at least 200 MHz in width,” now and in the future.’ (June 15, 2016) telegeography.com he explained. “This will allow networks to carry much more traffic per user – gigabits of throughput instead of megabits.” Wheeler also noted that commissioners will The US Commerce Department’s National consider unlicensed spectrum, which he said will play a Telecommunications and Information Administration “critical role” in 5G. He proposes the creation of a 14-GHz (NTIA) has approved the global internet multistakeholder band of unlicensed spectrum with flexible usage rules. community’s proposal to transition the US government’s Spectrum-sharing is also on the agenda for Wheeler, stewardship role for the Internet domain systems (DNS) as are planning rules that will govern the positioning technical functions, known as the Internet Assigned of small cell antennas, and the importance of backhaul. Numbers Authority (IANA) functions. The announcement (June 22, 2016) totaltele.com marks an important milestone in the US government’s effort to transition the internet’s domain name system and ensure that the internet remains a platform for US government development finance institution the innovation, economic growth, and free speech. NTIA Overseas Private Investment Corporation (OPIC) has said the transition proposal must have broad community announced its first investment in Myanmar’s burgeoning backing and maintain the openness of the internet. The telecoms sector with a $250 million loan to Apollo organization said it would not accept a plan that replaced Towers Myanmar. Apollo has built around 1,800 towers its role with a government-led or intergovernmental to support Myanmar’s mobile sector since its launch organization solution. For the last 18 years, the United in 2014, and plans to build more than 2,000 additional States has worked with businesses, technical experts, towers in the next phase of its development. Existing governments, and civil society groups to establish a Apollo investors TPG Growth, Tillman Global Holdings multistakeholder, private-sector led system for the and Myanmar Investments International facilitated global coordination of the DNS. To accomplish this goal, the loan process and plan to continue to partner with in 1998, NTIA partnered with the Internet Corporation Apollo on its expansion, OPIC said in a statement. for Assigned Names and Numbers (ICANN) to transition “Apollo has been able to capitalize on a buoyant technical DNS coordination and management functions demand for mobile and telecommunications services, to the private sector. In 2014, NTIA initiated the final step working closely with global network operators such as in the privatization process by asking ICANN to convene Telenor and Ooredoo, as well as locally based Myanmar global stakeholders to develop a plan to complete the Posts and Telecommunications,” Apollo founder Sanjiv transition away from NTIA’s remaining legacy role. In Ahuja said. “This watershed OPIC financing, a unique March 2016, ICANN submitted a proposal that addresses collaboration between the private and public sectors, both the technical performance of the IANA functions helps expand the critical infrastructure needed to bring as well as enhancements to ICANN’s accountability. The telecommunications services to a larger portion of the proposal replaces NTIA’s stewardship for these functions Myanmar population.” TPG Growth’s 2014 investment with direct agreements between the operator of the in Apollo was the first ever investment in Myanmar IANA functions and the customers specifying the terms by a major Western private equity firm, following the for performance. ICANN has run the IANA functions –

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SAMENA TRENDS JUNE-JULY 2016 which cover the highest level of internet: the DNS, IP legal case against POTRAZ, claiming the regulator had addresses, and internet protocols – since the day it was no authority to order mobile operators to reduce tariffs incorporated in 1999, but through a contract awarded by 30% from January 1, 2015 and suing for lost profits. repeatedly to it by the NTIA. (June 10, 2016) telecompaper.com In addition, Econet said that while it paid a US$137.5 million fee to renew its operating license in mid-2013, NetOne, Telecel and TelOne failed to pay for their own Zimbabwe license renewals, and this action was ‘discriminatory’. The government of Zimbabwe has (June 8, 2016) TechZim stepped in to force the Postal and Telecommunications Regulatory Authority (POTRAZ) to withdraw plans to allow Zambia telcos to renew their licenses using long-term annual Hot on the heels of the announcement payment plans. According to a reportd, wholesale carrier earlier this week that UK telecoms giant Liquid Telecom – part of the Econet Wireless group – Vodafone Group and sub-Saharan Africa was offered a concessionary ten-year installment plan 4G operator Afrimax Group had inked a to pay for its license renewal, which the Ministry of ICT, new Partner Market agreement for Zambia, the local Postal and Courier Services (MICTPCS) says contravenes telecoms regulator has stressed that it has not issued a the country’s Postal and Telecommunications Act. ICT new mobile voice concession. In a statement the Zambia Minister Supa Mandiwanzira has written to POTRAZ to Information and Communication Technology Authority express his disapproval for the payment plan. He said: (ZICTA) has clarified that Mobile Broadband Zambia ‘The MICTPCS understands that POTRAZ is currently Limited, which will trade as Vodafone Zambia, has not considering authorizing a framework for license renewal been granted a mobile voice license. Head of Public payments that gives operators access to flexible Relations at the ZICTA, Ngabo Nankonde, confirmed payment terms. It has also come to our attention that the company’s license restricts it to offering internet that, in anticipation of the board’s approval, POTRAZ services only, saying: ‘In light of the rising speculation management has already entered into an agreement from the general public and other stakeholders … the with another operator under a concessionary ten-year Authority wishes to dispel the perception that Mobile payment plan for their license renewal. Mandiwanzira Broadband Zambia Limited, trading as Vodafone Zambia, then added: ‘We wish to alert you to the Ministry’s grave is entering the market as a voice provider … Mobile reservations of such considerations and actions. We Broadband Zambia Limited currently only holds the consider such an approach unacceptable given the need following licenses: 1. A class Network (wireless internet) to urgently support central Government efforts to raise license; and 2. A class Service (internet) license.’ These money for the Treasury.’ The Herald says that POTRAZ concessions, it was noted, will only enable the operator acting director general Cecilia Nyamutswa has now to construct a data network and to provide data services written to Liquid Telecom to say: ‘We refer to previous to the public. Stressing once more that the new player’s correspondences on this matter and advise that the service offerings are restricted, Mrs. Nankonde added: renewal fees are payable in advance before the license ‘Mobile Broadband Zambia Limited’s scope of operations is issued … We trust that this clears any expectations and service offering are therefore strictly limited to the of a different arrangement with the authority.’ POTRAZ provision of mobile data services and not voice services.’ had previously been criticized by the government for Under the non-equity agreement previously announced offering struggling mobile operator Telecel a seven- by Vodafone Group and Afrimax Group the companies year plan of annual installments to pay off its US$137.5 themselves had, in fact, confirmed their intentions in million license renewal fee in 2013. The government said line with regulatory restrictions. As such, the duo had in 2015 that the regulator had no authority to offer such revealed that they plan to offer customers high speed payment plans to telcos. (June 16, 2016) The Herald 4G data services under the Vodafone Zambia brand, with the service roll out including the opening of Vodafone The Postal and Telecommunications Regulatory Authority branded retail stores and kiosks in key locations, with of Zimbabwe (POTRAZ) has responded to criticism from the operator’s presence to be bolstered by a network the country’s largest mobile operator, Econet Wireless, of distributors and resellers offering a full range of that it is not treating all operators equally. Econet’s Chief 4G handsets and devices. Vodafone Zambia will offer Executive Officer, Douglas Mboweni, has been quoted businesses of all sizes a range of connectivity products by local news portal TechZim as saying that there is an at retail and through direct sales channels, including 4G ‘uneven playing field when it comes to competition and Wi-Fi mobile data services, fixed internet and a suite in the Zimbabwean telecoms industry’, going on to of office solutions.(June 7, 2016) The Lusaka Times highlight the fact that some operators have not renewed their licences. But POTRAZ has hit back by saying that all four of the country’s mobile licensees – Econet, NetOne, Telecel and TelOne – are operating under valid Javaid Akhtar Malik concessions. It says that while Econet and Telecel have Regulatory Affairs renewed their permits, NetOne and TelOne are still using SAMENA Telecommunications Council old licenses which are not yet due for renewal. Econet is the only fully independent cellco in Zimbabwe, with the other three wholly or partially owned by the state. “Information contained in Member News updates, Regional News updates, Policy & Regulatory updates, Satellite News updates, Technology News updates, Regulatory News Snapshot of SAMENA Countries, January this year Econet launched a US$132 million Regulatory News beyond SAMENA region and Wholesale News updates have been obtained from sources, which we deem reliable. SAMENA Telecommunications Council is not liable for any misinformed decisions that the reader may reach by being solely reliant on information contained herein. Expert advice should be sought.”

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SAMENA TRENDS JUNE-JULY 2016

Delivering Smarter SaaS Performance and Security with the Hybrid Network

Cloud services growth shows no sign and other SaaS solutions store customer of abating as businesses continue to data in a data center closest to where the flock to on-demand technology to drive IT team registered for the service. If you their digital transformation initiatives. work on the other side of the world, this Gartner, the analyst group, predicts that is a problem. the worldwide market for public cloud services will hit $204 billion in 2016, up The speed of light is finite and application 16.5% from last year. Infrastructure as a latency increases with the distance to the service (IaaS) is up 38.4%, followed cloud end user. This means simple tasks, such as management and security, up 24.7%, and opening a large PowerPoint file, can take software as a service (SaaS), which has minutes if you are in Australia and being grown by 20.3%. provisioned from Europe or the US. As a “best effort network” the Internet can’t Companies see SaaS as an ideal solution even be relied on to deliver predictable to help them reduce spending on data cloud application performance if you’re centers and software, while increasing local. In addition, cloud data security flexibility and scalability. Although over public links is also a major concern there’s little doubt of these benefits for everywhere in the world. companies, the cloud also creates new Spyros Salpeas security and performance challenges. Lack of visibility and control Head of Global Services, Middle While consumers can directly access Although the IT department is held East, North Africa and Turkey, Orange Business Services cloud applications seamlessly in their accountable for poor application homes via their broadband internet performance, it’s hindered by a lack of connection with little trouble, the visibility into what is actually running on situation with enterprises is far more their network. IT teams are unable to see complex. Microsoft Office 365, Salesforce the end-to-end SaaS workflows from the

67 TECHNOLOGY UPDATES

SAMENA TRENDS JUNE-JULY 2016 data center, across the network and to the end-users in Your choice of Internet gateway to and from your private their global branch offices. This makes it difficult to gain a corporate network and the Internet has a big role to play true picture of response times for users and pinpoint the here. Enterprises have three choices depending on the components that cause delays or interrupt processing. risk profile of the data. Increasing adoption of shadow IT by line-of-business departments is also a problem. A cloud-based security platform – provisioned from regional distributed Internet gateways – can inspect this The first step, therefore, is to understand what is running encrypted traffic at high speed. It protects smartphones, on the network and what impact each application, tablets, PCs and servers with continuous updates in including SaaS, is having on the infrastructure and each response to emerging threats. In contrast, traditional other. This then allows IT departments to prioritize branch office appliances are unable to support deep business-critical applications and determine the best content inspection due to the latency created by the approach for optimization. distance to the data center. These legacy solutions leave mobile devices vulnerable to attack and are time In addition, some “chatty” cloud applications are not consuming to update and scale. architected particularly well for over-the-Internet delivery, which means that latency can make performance grind Dedicated gateways eliminate the risks associated with to a halt. By optimizing these transmission and receipt shared infrastructures. While local Internet gateways keep messages, such as by eliminating redundant information, low-risk traffic private until it reaches cost-effective, local you can reduce network latency significantly. break-out points using secure IPSec tunneling. Sensitive data, such as customer records in Salesforce, can also Dynamically choosing networks be encrypted and tokenized before being moved across It’s now possible to enhance Internet performance and Internet network and stored in private sovereign data make it faster and more reliable for SaaS traffic in a centers or a virtual private cloud for added security. variety of ways. For example, Orange Business Services uses the global Akamai Intelligent Platform, which is an The key in all of this is to have the flexibility to choose overlay network that includes nearly 200,000 servers the best network dynamically based on the application, across more than 110 countries and includes advanced network performance and criticality. Enterprises should optimization technologies. The servers are able to test no longer see their security as separate from the network. the performance of different Internet routes and send Instead they need to consider a hybrid network strategy the traffic down the one with the least congestion and that secures enterprise networks, the Internet and latency. This can increase cloud application performance cloud holistically. In addition, this needs to be centrally by up to 10x in the most extreme cases. managed, so that consistent policies and updates can be applied across the entire infrastructure. Another option is SD-WAN, which Orange offers using Cisco SP-IWAN platform, enhanced with best-in-breed Ultimately, cloud transformation has the potential Riverbed and Zscaler optimization and security plug-ins. deliver massive benefits to companies. However, without This enables multiple Internet links – or an Internet link adequate attention paid to both performance and and a MPLS and Internet link – to be used dynamically as security, cloud initiatives will fail. Employees demand one circuit, depending on real-time traffic. at least as good performance from the cloud as from existing on-premise applications. Without adequate In some cases, it might even be preferable for SaaS traffic visibility and control this will be impossible to deliver for not leave the corporate network at all with direct, private multinational companies. connectivity into the cloud data center. This is possible via Business VPN Galerie, which offers a private high speed direct link into over 50 leading cloud services, meaning that no Internet transport at all is required. This also provides the highest level of security for business- critical traffic.

Plugging security gaps In addition to creating performance challenges, the growing use of cloud and Internet applications also demands a rethink of traditional IT security. Enterprises no longer have a “front door” that they can defend against attack using appliances such as firewalls and intrusion presentation. By assessing cloud applications and allowing potentially confidential information to travel over the Internet, users are essentially punching large holes in the perimeter of their network.

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SAMENA TRENDS JUNE-JULY 2016

Technology NEWS

Docomo targets 1 GB/s GSMA manages one more speeds before 5G in 2020 bang on the RCS drum While NTT Docomo has announced Industry group insists there is end-user ambitious plans for 5G, it is also demand for operators to offer rival versions continuing its LTE investment and is of WhatsApp, WeChat. There is still time for targeting 1Gb/s speeds before it rolls out the GSMA’s Rich Communications Services its 5G network from 2020. NTT Docomo (RCS) to mount an unlikely comeback, if a CTO Seizo Onoe (pictured) told Mobile new report published by the industry group World Live in an interview that 4G will of this week is anything to go by. According to a course be important until the launch of survey of 4,045 mobile users in China, India, 5G service. The company has described its Spain and the U.S. carried out by Context investment and commitment in LTE as a Consulting on behalf of the GSMA, there Technology “solid step forward” in paving the way for is still end-user demand for operators to 5G services in 2020. With plans to move to provide their own versions of WhatsApp, Updates 1Gb/s speeds on 4G networks, he said “we Facebook Messenger, WeChat, and so on. need 5G speeds over 1Gb/s beyond 2020”. 79% of respondents said that rich, IP-based The operator, Japan’s largest with a 37 per communication services that support in-call cent market share, already offers 375Mb/s media and file-sharing - on offer from their service and plans to upgrade to 500Mb/s operator - would be relevant to them. The before the end of the current financial report said that respondents are particularly year (March 2017). Onoe said that 5G will interested in being able to carry out financial certainly create “unexpected new services transactions from within a messaging app, – that always happens”. He noted that or being able to indicate the importance and the most important thing at this stage of subject matter of a phone call. “Although 5G development is standardization. “I’m Internet-based messaging services are sure 3GPP will release Release 15 in 2018, incredibly popular, they are siloed and closed, and then we can launch 5G in 2020.” The requiring users to download an app that their operator said last year it wants to launch contacts might not be on. Mobile operators the technology in time for the 2020 have an important role to play in offering Olympics in Tokyo. Docomo carried out evolved, secure and reliable messaging a variety of 5G trials with five equipment services that are interoperable, universal vendors in the last quarter of 2015. and work directly from any device and on any network,” said Alex Sinclair, the GSMA’s chief technology officer, in a statement on Tuesday. However, according to the GSMA, only 47

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SAMENA TRENDS JUNE-JULY 2016 operators in 34 countries have launched many potential industrial “internet of into slices, each supporting separate RCS services to date. By comparison, the things” applications. By publishing a industrial and consumer services while vast majority of operators offer a means 5G manifesto endorsed by 17 CEOs, still using a shared infrastructure and of downloading and installing an OTT telcos are stepping up their efforts benefitting from economies of scale. communications app. The GSMA talks to negotiate a better regulatory deal But balancing all the competing of OTT services being siloed, with closed at a time when their revenue is being demands for connectivity won’t be user groups, but when only a minority squeezed by more agile internet-based easy and telcos say they need to be of operators deploy RCS, and then an players. As European policymakers are able to optimize their own networks, even smaller minority go to the effort of desperately keen for the region to be a rather than having to follow a rigid interconnecting their RCS infrastructure global leader in 5G, the telcos now have rulebook. The manifesto contends that with one another, they are left with an a potentially strong bargaining chip. BEREC’s draft implementation rules, even smaller, closed user group. That The telcos’ main argument boils down which are due to be finalized at the end hasn’t deterred the GSMA though: to this: Not all IP traffic is equal and of August, are “excessively prescriptive its new report claims that operators connectivity isn’t a commodity; some and could make telcos risk-averse, in developed markets that leverage 5G applications will need a fast lane, thus hampering the exploitation of 5G, advanced communication services a secure lane or an ultra-reliable lane. ignoring the fundamental agility and could add US$5 billion to their revenue “The current net neutrality guidelines, elastic nature of 5G network slicing to between 2015 and 2020. “Operators as put forward by BEREC (a pan EU adapt in real time to changes in end- must meet this demand for advanced group of national regulators), create user/application and traffic demand.” communications services by deploying significant uncertainties around 5G Another potential regulatory sticking RCS and VoLTE, which, when connected return on investment,” the manifesto point for 5G is the difficulty in with other operators, allows users to reach says. “Investments are, therefore, likely deploying new cell sites: In densely anybody on any network and provides to be delayed unless regulators take populated Europe, local governments incredible messaging experiences,” said a positive stance on innovation and often seek to block or delay the rollout Sinclair. stick to it.” of telecom infrastructure on aesthetic, environmental or health grounds. The manifesto called for the removal of 5G: A bargaining chip Trying to make 5G attractive for these deployment barriers. investors for Europe’s telecom How much of this is posturing? Would industry European telcos really hold back Carrots as well as sticks on 5G investment if they can’t get a The manifesto also dangled a carrot Are telcos bluffing or will the better regulatory deal? Although that in front of EU policymakers. Telcos development of 5G depend on the would be a bleak scenario for Europe’s are targeting launching 5G in at least regulatory agenda? telecom industry and the wider one city in each of the 28 European Last week, Europe’s telecom industry economy, it could happen. Investors member nations by 2020, adding warned policymakers that the business aren’t going to let telcos roll out new that “these smart cities will be strong case for “5G” is hanging in the infrastructure unless they can achieve and tangible innovation platforms for balance. Ensuring the elephant in the an ROI equivalent to that available Europe, as hubs of social and economic 5G room was well and truly visible, the elsewhere. Telcos are effectively activities.” Launching 5G in all 28 member CEOs of leading European telcos and competing for investors’ money with nations by 2020 is ambitious, but the their suppliers contended that strict other sectors, such as pharmaceuticals, statement reflects the realpolitik of net neutrality rules could scupper energy and retail. In the EU – investment really needs to be their 5G manifesto, the spread right across the member nations telcos rightly note that to win support across the three key 5G will require significant EU institutions – the Commission, the investments in a new Parliament and the Council. Responding radio access layer, high to the manifesto in a blog post, Günther bandwidth backhaul links, Oettinger, European Commissioner for core network upgrades the Digital Economy and Society, again and, for certain scenarios, emphasized the importance of 5G to denser cell sites. To pay Europe’s competitiveness and the speed for these investments, with which the U.S., South Korea and China the manifesto argues are moving. But he didn’t comment on that Europe’s new net the industry’s call for more flexible net neutrality laws need to be neutrality and network deployment rules. implemented in a way that Commissioner Oettinger continues to allows for both innovative prod the European telecom industry to industrial services, such work with other key European industries to as automated driving, test how new technologies can transform smart grid control and these sectors. Last week, various telecom public safety services, and and automotive trade bodies launched quality internet access for a joint project to test automated driving, consumers. The telecom road safety and traffic efficiency, and industry envisions that 5G greater digitalization of transports networks will be divided and logistics. The project promises

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SAMENA TRENDS JUNE-JULY 2016 to explore high-density platooning, demonstrated for the first time of 5G device, radio, core network, cooperative collision avoidance, remote- in the world ‘Software Defined and SDTI - by the end of 2016, and control parking, local-hazard warnings Telecommunications Infrastructure verify the technical feasibility and and traffic flow optimization using 4G (SDTI)’ based on Hyperscale performance of the 5G system. “SDTI technologies between 2017 and 2019, Datacenter System 8000 on June 20, is an innovative technology that followed by a combination of 4G and 5G 2016 at ‘5G Playground,’ the company’s enhances network efficiency by flexibly technologies thereafter. Europe’s telcos 5G technology innovation center constructing hardware components to are participating in such projects, but are located in Bundang, Korea. SDTI refers satisfy the infrastructure performance looking for the public sector to share the to an infrastructure platform where requirements of diverse 5G services,” risk. In the manifesto, they called for EU all mobile network infrastructure said Park Jin-hyo, Senior Vice President grants of between 500 million euros and components, such as CPU, memory and Head of Network Technology 1 billion euros ($554.32 million and $1.10 and storage, are disaggregated as R&D Center of SK Telecom. “SK billion) to incentivize vertical industries customizable modules that can be Telecom will continue to work closely to experiment with new services that flexibly and dynamically recomposed with Ericsson to develop and verify are enabled or enhanced by 5G. They together to provide the optimal innovative virtualization technologies also asked for the EU to establish a 1 level of infrastructure scale for to optimally support both new and billion euro EU venture fund to invest in various 5G services based on their existing services over the 5G network.” startups developing 5G technologies and requirements. Based on the concept applications across verticals. As it already of infrastructure slicing, it allows for spends billions of euros on research and the dynamic composition and lifecycle Five Personal Technolo- development, the European Commission management of infrastructure at the gies That Will Disrupt will probably stump up these funds. But physical hardware layer, ranging from European telcos’ call for less regulation ultra-mini servers for personalized Your Business and more freedom will be greeted with services such as individual Personal technologies such as suspicion by many EU policymakers. In broadcasting and personal blogs to wearables, immersive virtual and fact, it seems likely that the development massive scale servers for services such augmented reality, sensors such as of 5G in Europe is going to be subject to as mobile telecommunications and those found in Internet of Things (IoT) an elaborate game of poker between the OTT services. Moreover, SDTI enhances applications and the next wave of public and private sectors. Last week, the efficiency in network infrastructure mobile apps will soon have a major telecom industry put a bid on the table. upgrades as the disaggregated impact on every business. Speaking at When the final net neutrality guidelines module of the server can be the Gartner Business Transformation arrive at the end of the summer, it will be separately upgraded. It also offers & Process Management Summit clearer whether EU policymakers believe strengthened security by physically in Sydney, Brian Blau, research vice the industry is bluffing. separating each user’s infrastructure. president at Gartner, gave his top five Through the demonstration of SDTI, picks for personal technologies that a key technology for end-to-end will break away from the hype and SK Telecom and Ericsson 5G Network Slicing, the companies prove to be an integral component in Demonstrate Software- showed that network slicing concept business over the coming years. may as well be applied at the physical Defined Infrastructure infrastructure domain to best support for 5G their slicing counterparts in the 1. Immersive Augmented and virtualized network functions and Virtual Reality South Korea’s SK Telecom announced network domain, thus completing As was apparent at major technology that it, together with Ericsson, the missing puzzle piece in the end- shows like CES this year, device vendors to-end network slicing technology. and big platform owners such as End-to-End 5G Network Slicing is a Google and Microsoft are investigating virtualized and logically separated how to exploit immersive technologies network, tailored and optimized for like augmented reality (AR) and virtual a particular user or service, consisting reality (VR) to expand the experiences of network slices of different domains associated with existing device in the mobile network including categories (notably smartphones) radio access network, IP transport and to find opportunities among new network, core network, and physical ones (like head-mounted displays). infrastructure. SK Telecom expects While consumer adoption of VR that, as there are active discussions outpaces enterprise adoption, AR is on virtualized infrastructure platform seeing business adoption first. “The for 5G by international organizations potential is huge in both consumer such as Open Compute Project and enterprise environments,” (OCP) and Telco Infra Project (TIP), Mr. Blau said. “An immersive user the world’s first demonstration of experience enables deeper workplace SDTI is expected to draw a lot of engagement and can open the door attention from both industry and to behavior change,” Mr. Blau said. For standardization communities. Building example, logistics giant DHL has been on this milestone, SK Telecom and able to improve warehouse operations Ericsson plan to jointly build end-to- through the use of advanced wearable end 5G pilot system - which consists displays and augmented reality. Head

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SAMENA TRENDS JUNE-JULY 2016 mounted displays (HMDs) replace priority for smartphone vendors. 5G subscriptions by the same year; the use of handheld scanners and The incorporation of advanced however, Ovum says that its forecast paper pick lists, improving efficiency, autofocus, wide-angle lens and, concerns 5G broadband connections, reducing errors and making the above all, multilens capabilities to be and doesn’t include other types of workplace more enjoyable. a key trend this year, delivering new 5G connection, such as narrowband experiences. There are many potential IoT, for example. “The main use case applications in the enterprise. For for 5G through 2021 will be enhanced 2. Wearable Devices example, customer digital assistants in mobile broadband services, although From head-worn cameras and retail outlets will recognize individuals fixed [wireless] broadband services will displays, sensors and activity trackers by face and voice across channels also be supported, especially in the to smart shoes and socks, wearables and partners, proving opportunities U.S.,” predicted Mike Roberts, Ovum are expanding the body’s potential in to enhance the in-store experience. practice leader for carrier strategy business. The smartwatch will become At the same time, consumer video and technology. “Over time 5G will mainstream and new solutions consumption is at all-time high, support a host of use cases including and platforms will drive enterprise especially on mobile devices. For Internet of Things and mission-critical adoption. Gartner forecasts that the enterprise, the revolution in communications, but Ovum does annual sales of wearable devices will 360-degree and multilens cameras not believe those use cases will be exceed 227 million by 2020, up from could improve collaboration through supported by standardized 5G services 88 million this year. Form factors will shared virtual surfaces and immersive through 2021,” Roberts said. Then move from bulky to inconspicuous remote meetings, while video and there is the issue of what counts as and usability will improve as devices scene analytics will decode meaning 5G. For Ericsson, devices must support begin to anticipate user needs and and add more value to video content. ‘LTE Evolved’ – comprised of upgrades wants. Instead of seeing consumerization of to access technology that use existing technology as a force happening to mobile spectrum – and/or ‘NX’ – new the organization, Gartner recommends access technologies that use spectrum 3. Personal IoT Sensors taking a proactive approach. where LTE has not been previously By the year 2021, one million new Set up a process for evaluating deployed. Ovum’s definition appears IoT sensor devices will be purchased personal technologies and identify to be narrower, excluding any pre- every hour of every day. New devices opportunities to improve workplace standard 5G technology from its will open up new opportunities for process and actions. forecast. The analyst firm defines a 5G business, for example, predictive subscription as an active connection maintenance and support for by a 5G device to a 5G network, both autonomous “things”. Gartner predicts Global 5G subscriptions of which have to comply with 3GPP’s that by 2018, six billion connected LTE Release 15 standards. Roberts said “things” will be requesting support. to reach 24m in 2021 Ovum plans to update its 5G forecast Ovum predicts networks will be up every six months due to the fact that and running in 20 markets in five 4. Virtual Personal Assistants and “5G is at an early stage and there is a years. Global 5G subscriptions will Bots high degree of uncertainty around 5G reach 24 million by the end of 2021, deployment and adoption.” Mobile app usage is stabilizing. predicted Ovum. By then, the analyst Downloads have plateaued as users firm expects 5G services to have stick with tried-and-tested apps. Apps launched in 20 markets worldwide. 3GPP completes NB-IoT won’t vanish anytime soon. However, North America and Asia will each their interfaces will fade and new account for more than 40% of global standardization interaction techniques will take their subscriptions, with the vast majority 3GPP revealed this week it has place. Apps currently offer siloed concentrated in the U.S., Japan, China, completed the standardization of interactions, but the next wave will and South Korea. Meanwhile, Ovum narrowband Internet of Things (NB- offer an integrated experience, Mr. expects Europe will make up more IoT), a cellular technology for low Blau said. Future apps will report to us power, wide area via our virtual personal assistant (VPA), (LPWA) networking. or apps will simply be hidden in the NB-IoT can provide background, and their interfaces will coverage to hard- be more seamlessly integrated into an to-reach places, overall flow of content. The VPA will supporting two- become the vital link for consumers way communication and, later, business users to simplify with large numbers access to their apps, data and content. of low throughput, Businesses should evaluate VPAs low cost devices for their potential to provide better that consume very customer experience. little power. It uses licensed spectrum, 5. Advanced Camera and Vision than 10%, while Africa and the Middle which holds the promise of assured Technologies East will account for the remainder. reliability and quality compared In 2016 and 2017, Gartner expects Ovum has issued a more conservative to standards that use unlicensed cameras to remain a top differentiation outlook than Ericsson, which last spectrum. “It took us only nine months November predicted 150 million to standardize the new technology

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SAMENA TRENDS JUNE-JULY 2016 after the study phase,” said Dino Flore, connections 5G will need to deliver Global Innovation Center in order to chairman of the 3GPP RAN group. means the current cellular network develop relevant technologies and “Once again 3GPP demonstrated needs overhauling. strengthen cooperation with startup the ability to quickly respond to the companies. The firm did not elaborate emerging market needs.” Vodafone on its plans. is one of the more vocal backers of Telenor tests Wi-Fi NB-IoT. The U.K.-based telco’s R&D Calling in Denmark chief R&D Director Luke Ibbetson is Sri Lankan operators trial chairman of the NB-IoT Forum, and Danish telecoms provider Telenor has 4.5G technology, achieve the company has carried out pre- embarked on a trial of Wi-Fi Calling, standard trials in Australia, Spain which bypasses the cellular network 1Gbps speeds and uses the Wi-Fi connection for and Turkey. Vodafone aims to begin Sri Lankan operators Dialog Axiata voice calls and SMS messages. The rolling out NB-IoT in various markets and Mobitel have each announced cellco claims that the technology will during 2017. NB-IoT is one of three successful trials of 4.5G technology, be particularly beneficial to subscribers LPWA technologies included within demonstrating download speeds in currently experiencing indoor LTE-Release 13, also known as LTE- excess of 1Gbps. In a press release, coverage issues. During the pilot Advanced Pro. The other two are Dialog confirmed that its test was period, Wi-Fi Calling will be available extended coverage GSM IoT (EC- carried out over its LTE infrastructure to users using the Apple iPhone 6, 6 GSM-IoT) for 2G networks, and LTE in partnership with Huawei, with the Plus, 6S and 6S Plus handsets, with Cat-M1 for 4G networks. “We are throughput delivered via the LTE more compatible devices to follow. pleased that the industry has moved Radio (Air) Interface. Dialog notes Telenor’s network director Peter Ditlev so quickly to adopt them and that that following the test, it has joined Nodbak said: ‘We are close to having they have now been ratified by 3GPP,” 20 countries where 4.5G capabilities the technology ready, although there said Alex Sinclair, CTO of the GSMA, have been demonstrated. Rival cellco are many different factors that can on Thursday. “Mobile operators have Mobitel, meanwhile, announced affect the use and experience of Wi-Fi already started a number of pilots on the same day the trial of what Calling. Therefore, we are now testing around the world and this agreement it termed 4.5G LTE-Advanced Pro the technology among our customers, over common standards will help (LTE-A Pro) technology, achieving top so we can gain experience before the accelerate the development of download rates of more than 1Gbps. actual launch later this year.’ Telenor commercial solutions and ensure they The operator partnered with Huawei also said that it now covers 94% of are in market much faster, providing and ZTE to test the speeds in its lab, all Danish households with LTE and customers with more choice,” he said. and claims that the 4.5G LTE-A Pro is continuously expanding its 4G technology is capable of utilising coverage. a combination of 4×4 MIMO, 256 Huawei and Telefónica QAM and up to ’5CC [component begin work on ‘no-cell’ carrier]’ to provide the gigabyte Samsung Electronics to speeds. According to TeleGeography’s 5G RAN invest about $1.2 billion GlobalComms Database, both Dialog Huawei and Telefónica have in the US over the next (Sri Lanka’s largest mobile service announced a joint effort to explore provider in terms of subscribers) and the requirements and potential four years on internet of Mobitel (the country’s second largest solutions for the 5G RAN, including things (IoT) cellco), launched LTE networks in 2013, a “no cell” approach. Focusing on 5G while Dialog moved on to initiate and the next generation radio access Samsung Electronics, the world’s top customer trials over an LTE-A network smartphone maker, said on Tuesday it in July 2015, with a commercial launch expected this year.

FET and Ericsson sign MOU to establish 5G laboratory Taiwanese multi-service operator Far EasTone (FET) has signed a memorandum of understanding (MOU) with Sweden’s Ericsson under which it will establish what it claims will be the nation’s first 5G laboratory. According to the Taipei Times, the network (NG-RAN), the agreement collaboration between the two plans to invest about $1.2 billion in the will look to create new solutions to companies is part of FET’s efforts to US over the next four years on so-called manage the bandwidth requirements create an open 5G ecosystem, while internet of things (IoT) technologies. In of data heavy mobile applications, it is looking to begin trials of next a statement, Samsung said it will make internet and IoT services. According generation mobile technology in the investments through its Silicon to Huawei, the ultra-high throughput, 2018, ahead of a commercial launch Valley arms such as the Samsung low latency and massive number of in 2020. Under the terms of the MOU,

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FET will set up its 5G laboratory in providing the most suitable resources Riverbed is a fully-managed service New Taipei City’s Banciao District and network topology to different from Orange Business Services that in the next quarter, and, with a view types of services. In the PoC, ‘a slice- delivers application acceleration and to accelerating research progress, management function and network WAN optimization. It can significantly the facility will be open to hardware slices based on service requirements improve application response times makers, software developers and were autonomously created, enabling thereby improving the end user platform developers. ‘We are seeking widely varying services to be delivered experience. EAM Riverbed also a clearer picture of the 5G business. simultaneously via multiple logical delivers traffic optimization using The cooperation with Ericsson will networks. The PoC shows how 5G protocol optimization, caching help us be better prepared to offer 5G services could be connected flexibly and traffic compression, which can services,’ FET chairman Douglas Hsu between networks according to set increase throughput by three times or was cited as saying. policies in order to meet specific more. As of today, with Business VPN service requirements for latency, Galerie and EAM Riverbed, enterprise security or capacity.’ Commenting on users can benefit from better SaaS and Huawei Opens Global the trial, Hiroshima Nakamura, GM IaaS response time through the hub, Research Center in of R&D strategy at DOCOMO, said: thereby supporting the roll-out of ‘Network slicing has the potential to an effective organization-wide cloud France simultaneously deliver diverse cutting- strategy. Huawei has opened a mathematics edge 5G services, for enhanced research center in France. Xu entertainment as well as further Key step in SDN/NFV network Wenwei, director of Huawei strategic effective and secure communication. evolution marketing, said choosing Paris to We expect the results of our PoC with host its second global research center Ericsson will play an important role in This service also benefits from software was due to France’s rich academic the realisation of highly efficient and defined network (SDN) deployment experience in mathematics. “We plan secure 5G networking technologies.’ and is a key step in the evolution of to continue our investment program the Orange infrastructure. Riverbed’s over the long term and to develop application performance optimization other partnerships,” he said. Directed Orange Business Services solution is deployed as network by Merouane Debbah, a professor and accelerates cloud function virtualization (NFV), providing mathematics researcher, the center enterprises with more flexibility than a aims to find an answer to global services in Business VPN traditional device. It allows customers technological challenges, such as Galerie with Riverbed to rapidly deploy cloud optimization challenging the limit of Moore’s law services and adapt them to their and extending the human imagination technology changing needs. This service is a result on what the Internet can bring, the Orange Business Services announced of the strong partnership between company said. The Paris Huawei center that it has integrated its acceleration Orange and Riverbed, which has is the second one to be set up after a service Enterprise Application been in place since 2005. Through center in Russia. Management (EAM) Riverbed into strategic and technical collaboration, Business VPN Galerie to significantly the two partners are able to provide improve the user experience for customers with new services in a very DOCOMO, Ericsson claim cloud users at remote sites. The agile way. “Customers need to boost service boosts the performance of all end-user application experience with success in 5G network major cloud services in Business VPN faster response times to increase slicing trial Galerie over enterprise customers’ productivity at a global scale, enable business-critical migration projects Swedish equipment vendor Ericsson VPNs. Enterprises moving from on- and improve the corporate image. By and Japanese mobile operator NTT site applications to software as a integrating Riverbed’s best-of-breed DOCOMO have announced success of service (SaaS) and Infrastructure as a technology in our secure and fully- a joint Proof of Concept (PoC) dynamic Service (IaaS) models need their data managed solution we can deliver this network slicing technology for 5G to be secure and expect the same promise,” said Pierre-Louis Biaggi, vice networks, marking a milestone in the experience as if their data were stored president connectivity business unit, development of the next generation locally. Cloud acceleration allows Orange Business Services. “Application of cellular technologies. According them to eliminate the frustration performance and agility are key to Ericsson, the trial demonstrates of a slow and unpredictable cloud in today’s cloud computing world how to virtually partition a physical application experience that can sometimes affect users in remote and we’re pleased to further extend sites. Business VPN Galerie extends the Orange and Riverbed strategic the Orange corporate VPN to the partnership to offer customers a cloud via fully-secured gateways. It compelling solution,” said Phil Harris, allows enterprises to access best-of- Chief Strategy Officer at Riverbed breed IaaS and SaaS cloud service Technology. Currently 1,600 customers providers, including Orange, while use Business VPN Galerie to access benefitting from the advantages of Orange and other leading cloud the Orange Business Services cloud- services, including Google, Microsoft ready network – including end-to-end and Salesforce.com. network into multiple co-existing management and support, reliability, logical networks which are capable of security and high performance. EAM

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Ericsson and Ooredoo NEC Develops Real-time Over 645 million LTE subscriptions worldwide were gained during the past Oman Demonstrate Control of IoT Devices in year, representing 100 percent annual Multi-gigabit Microwave Factories growth. The Asia region, with over 734 million LTE subscriptions, further grew NEC has announced the development Backhaul its share of global LTE subscriptions of a network technology that enables Ericsson and Ooredoo Oman have quarter on quarter to reach 56.9 production lines to be flexibly adapted joined forces to demonstrate the percent. Asia was second with 56.9, through real time remote control of viability of microwave backhaul to ahead of North America 19.6 percent, devices such as sensors, displays, provide multi gigabit capacity for fixed Europe 14 percent, Latin American and robots at manufacturing sites and mobile networks. Ooredoo Oman and Caribbean 5.2 percent, and MEA and other locations. The spread of 4.3 percent. A total of 503 operators the Internet of Things (IoT) in have commercially launched LTE recent years has led to demand systems in 167 countries, according in manufacturing sites and other to GSA data announced at the end locations for vast numbers of of May. GSA also said that more than sensors and manufacturing 1 in 3 operators are investing in LTE- equipment to be connected Advanced system deployments. in a wireless network and for these devices to be controlled in real-time. Factories can be Globe fires up first 700- challenging environments for communications owing to radio MHz site wave reflections and attenuation Globe Telecom revealed that it from the presence of robots has activated what it claims is the and metal. NEC’s new network Philippines’ first 700-MHz LTE site technology creates a stable following last week’s acquisition of wireless connection between 50% of San Miguel Corp’s (SMC’s) telco computers and manufacturing assets. The Filipino operator said the equipment in challenging switch-on took place over the weekend environments such as these. and Ericsson trialed a range of solutions in the Diliman area of Quezon City, the “This technology achieves stable that can deliver gigabit backhaul country’s biggest city by population, connections in wireless network capacity, supported by the availability and part of the National Capital environments inside factories, where of new radio access spectrum. E-band Region. In a statement, Globe said the communications are frequently lost, (70/80GHz) spectrum is the key to site has a coverage radius of 2.2 km through the application of ‘non- supporting microwave and meeting and that almost 100 customers are retransmission model redundancy increased capacity requirements for already connected to it. It is the first of encoding,’ which transmits both backhaul and fronthaul. The 200 700-MHz sites the company plans information accurately, without the world’s highest-capacity E-band to roll out. “The first batch of the 200 need for retransmission. NEC aims to radio, the new Ericsson MINI- sites we plan to roll out will be in areas commercialize the technology in FY LINK 6352, was successfully trialed, where connectivity matters most to our 2017,” said Yuichi Nakamura, General providing 5.7Gbps over one carrier. customers as well as in locations with Manager, System Platform Research Four carriers in traditional frequency high convergence of users like here in Laboratories, NEC Corporation. bands and narrower channels were the National Capital Region,” said Joel bonded together to provide 1.6Gbps. Agustin, SVP of program governance The success of the trial proves the at Globe’s network technical group. capability of microwave to address LTE subscriber numbers “About 70% to 80% of our customers growing data traffic demands and double to 1.29 billion in are transacting data indoors and support operators in offering superior Q1 we need the 700-MHz spectrum to mobile broadband experiences to provide better coverage and stable their customers. Wolfgang Wemhoff, LTE gained 182 million connections connectivity inside their homes. Indoor Chief Technology Officer, Ooredoo in Q1, that’s almost 4 times faster connectivity is one issue that the 700- Oman, says: “Ooredoo is constantly than 3G/HSPA systems, according MHz spectrum addresses,” he added. working toward responding to to a report by the Global mobile Globe Telecom acquired the 700-MHz changes in customer needs and Suppliers Association (GSA). 3G/HSPA spectrum as part of a deal to purchase providing them with the products, subscriptions grew by 48 million while 50% of SMC’s telecom business. The services and offers they want, through GSM subscriptions fell by 120 million other 50% was bought by incumbent both mobile and fixed offerings.Our in the same quarter. The number of PLDT. Together the telcos agreed to partnership with Ericsson allows us to LTE and LTE-Advanced subscriptions pay 52.85 billion pesos (€1.02 billion). inspire and innovate to meet the ever- is expected to pass the 3G/WCDMA- SMC had planned to launch mobile changing needs of our customers and HSPA global total in 2020, and possibly services in the Philippines, but it came businesses in all sectors across the sooner. Analysing mobile subscriptions to nothing after it tried unsuccessfully Sultanate of Oman.” data provided to GSA by Ovum for Q1, to form a mobile joint venture with GSA said that the number of LTE and Australia’s Telstra. As well as 700-MHz LTE-Advanced subscriptions reached spectrum, Globe also acquired a share 1.29 billion worldwide by 31 March. of frequencies in the 850 MHz, 2.5

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GHz and 3.5 GHz bands. According to the PC market and perhaps assumed Internet of Things to a report by Reuters, the Philippines’ it would rightfully be theirs to capture. telco regulator, the National Now they find themselves in head- Overtake Mobile Phones Telecommunications Commission to-head competition with a slew of by 2018 (NTC) has warned that Globe and new manufacturers that have created The Internet of Things (IoT) is set to PLDT could be forced to cede their their market off of Smartphone and overtake mobile phones as the largest newly-acquired spectrum if they fail slate tablet growth. This brings new category of connected device by 2018. to improve the performance of their channel dynamics and lower prices Between 2015 and 2021, the number mobile networks. to a brand new category with an of IoT connected devices is expected abundance of upside. “The detachable to grow 23 percent annually, of which tablet segment is also considered by cellular IoT is forecast to have the Tablets Set to Return some manufacturers, like Apple, as a highest growth rate. Of the 28 billion way to spur replacement cycles of the to Growth in 2018 total devices that will be connected existing slate tablet installed base,” by 2021, close to 16 billion will be IoT Driven by Emergence of said Jean Philippe Bouchard, research devices. Western Europe will lead the director, Tablets. “One reason why the Detachables way in adding IoT connections - the slate tablet market is experiencing number of IoT devices in this market Worldwide tablet shipments are a decline is because end-users don’t is projected to grow 400 percent by expected to decline for the second have a good enough reason to replace 2021. This will principally be driven by straight year in 2016, dropping them, and that’s why productivity- regulatory requirements, for example 9.6% compared to 2015 volumes, centric devices like detachable tablets for intelligent utility meters, and a according to a new International are considered replacement devices growing demand for connected cars Data Corporation (IDC) Worldwide for high-end larger slate tablets.” including the EU e-call directive to be Quarterly Tablet Tracker forecast. The Despite all of the negativity around implemented in 2018. Rima Qureshi, tablet market in totality has seen slates, most of which is driven by the Senior Vice President & Chief Strategy its peak and will face down years in forecasted negative year-over-year Officer, Ericsson, says: “IoT is now 2016 and 2017, followed by a slight growth, IDC still expects well over accelerating as device costs fall and rebound in 2018 and beyond driven by 100 million slates to ship annually innovative applications emerge. From detachable tablet growth. Right now through 2020. The main driver for this 2020, commercial deployment of the detachable category only accounts is the low cost associated with smaller 5G networks will provide additional for 16% of the market and IDC expects screen slate devices. Slate tablets with capabilities that are critical for IoT, it to reach 31% in 2020. Tablet life screen sizes less than 9 inches had an such as network slicing and the cycles have proven to be more like PCs average selling price of $183 in 2015 capacity to connect exponentially a few years back, which is likely to be and IDC expects this to decline to more devices than is possible today.” somewhere around four years. Tablet $157 in 2020. Despite the small screen Smartphone subscriptions continue to manufacturers, both large and small, and typically lower configurations, increase and are forecast to surpass are slowly shifting focus toward the for many this still provides a fairly those for basic phones in Q3 this year. detachable tablet market segment, decent computing experience. By 2021, Smartphone subscriptions Especially within will almost double from 3.4 billion emerging markets, to 6.3 billion. Also revealed in the “It wasn’t long ago report, there are now 5 billion mobile the industry talked subscribers - unique users - in the about one PC per world today, which is testament to person and to some the phenomenal growth of mobile extent that theory technology in a relatively short period has vanished,” said of time. Detailed in the report is a Ryan Reith, Program dramatic shift in teen viewing habits: Vice President with use of cellular data for Smartphone IDC’s Worldwide video grew 127 percent in just 15 Quarterly Mobile months (2014-15). Over a period of Device Trackers. “I’d four years (2011-15) there has been rather look at it and a 50 percent drop in the time teens say the PC we were spend watching TV/video on a TV referencing six to screen, and in contrast an 85 percent eight years ago has increase in those viewing TV/video on changed, drastically. a Smartphone. This, and the fact that In many emerging the upcoming generation of mobile markets the only users are the heaviest consumers of which has quickly resulted in increased computing device for many will be a data for Smartphone video streaming product offerings, lower average mobile device, whether that is a small (Wi-Fi and cellular combined), makes selling prices (ASPs), and broadened screen tablet, Smartphone, or both. them the most important group consumer awareness for the category. This is the main reason why, despite all for cellular operators to monitor. In Many traditional PC manufacturers the hype that the detachable category 2016, a long anticipated milestone have assumed the detachable receives, we believe cheaper slate is being passed with commercial LTE category to be a natural extension of tablets fill an important void.” networks supporting downlink peak

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SAMENA TRENDS JUNE-JULY 2016 data speeds of 1 Gbps. Devices that in Q3 2015, China is the envy of other Professor Burns halts that the tool support 1 Gbps are expected in the developing markets with over half of seems to be using the audio it collects second half of 2016, initially in markets its 2016 revenue projected to come not simply to look after users, but such as Japan, US, South Korea and from 4G LTE,” he added. might indeed be doing so to overhear China, but rapidly spreading to other discussions. She further added that in regions. Mobile users will enjoy consideration of testing her theory, extremely fast time to content thanks LTE networks exceed 500 she deliberated some topics around to this enhanced technology, which worldwide the phone and then figured out will enable up to two thirds faster that the site arose to show related download speeds compared with the Number of 4G networks will reach advertisements. Rightfully declared fastest technology available today. 550-plus by the end of 2016, on its help pages that it doesn’t save Further highlights from the Ericsson according to GSA predictions. The conversations, but that it does use the Mobility Report include: 500th LTE network in the world was hearing to find what is occurring in the commercially launched in May and vicinity of the phone. While speaking the number is growing quickly. There to The Independent a spokesperson 4G subs to reach 2billion are now 503 commercial LTE networks disclosed that: “Facebook does not globally this year in 167 countries, according to the use microphone audio to inform Global mobile Suppliers Association advertising or News Feed stories in The number of LTE subscriptions (GSA), which predicts the total, will any way. To turn off the microphone worldwide will approach 2 billion by rise to at least 550 by the end of the in a smart phone’s setting is rather the end of this year and will grow year. In addition, 25% of 4G operators quite easy, and as it can be executed almost threefold by 2022, according have launched LTE-Advanced, the at the level of the operating system, to new analyst company statistics company said. And the technology so by doing this it will signify that published this week. There will be 1.9 evolution does not stop there. “Several Facebook won’t be able to turn it on billion user-linked 4G subscriptions – LTE operators are now introducing even if it desired to do so. Privacy is that is handsets, modems, tablets and LTE-Advanced Pro technologies, an important aspect in today’s digital connected devices, but not machine- sometimes referred to as 4.5G, which world, so with Facebook willingly to-machine connections – by end- is established as a major industry offering the users the choice to turn 2016, up from 1.1 billion at the start of trend in 2016,” noted Alan Hadden, VP the feature on or off, stuff sound the year, Strategy Analytics predicts. By of research at the GSA. The number of slightly less worrying. 2022, it forecasts that figure will have LTE and LTE-Advanced subscriptions grown to 5.6 billion, equivalent to 62% reached 1.07 billion worldwide by the of all user-linked mobile subscriptions. end of last year, according to a the GSA, IoT connections to over- By that date, 5G connections will also a figure that tallies with new numbers have started to make an impact. There published by Strategy Analytics this take handsets in 2018 will be 116 million 5G subscriptions week; the analyst firm reported that Ericsson predicted that the number in 2022, up from around 2 million user-linked 4G subscriptions – which of IoT connections worldwide will in 2020, the year in which the first includes Smartphones and other overtake mobile phone connections 5G deployments are expected to devices, but not machine-to-machine in 2018. According to the company’s commence. From a revenue point of connections – totaled 1.1 billion at the latest Mobility Report, overall view, 4G will start to dominate this start of 2016. LTE accounts for one in connections will number 27.5 billion by year. 4G revenue will grow by 35% to seven mobile subscriptions worldwide, 2021, with the IoT accounting for 15.7 US$426 billion this year, accounting the GSA said. billion of that total. By comparison, the for 49% of global mobile revenues, number of mobile phone connections despite the fact that 4G represents is expected to reach 8.6 billion. Asia- just 25% of connections, Strategy Facebook Might be Pacific is expected to be the largest Analytics believes. That puts it ahead Eavesdropping to market for IoT connections, followed of 3G and 2G, which will see revenues by Western Europe and North America. decline by 19% and 21% respectively. Everything You Say on Mobile operators would do well to While the revenue share coming from Your Phone note that Ericsson expects cellular 4G will be as high as 90% in South IoT connections to make up less than Korea, 82% in Japan and 79% in North Professor Kelli Burns from the mass 10% of total IoT connections in 2021, America, there are still many markets communication department in which suggests that technologies where the technology has yet to fully University of Florida, is of the view that such as WiFi and LoRaWAN, which use take off. 4G revenue share will be as Facebook app might be overhearing unlicensed spectrum, will dominate low as 10% in the Middle East and your conversations and utilizing the IoT for the next five years at least. Africa, for example. “The advanced Smartphones to garner information “IoT is now accelerating as device markets of the USA, Japan, and South on what people are speaking about to costs fall and innovative applications Korea will see the vast majority of their exhibit pertinent ads. The social media emerge,” said Rima Qureshi, revenue come from 4G LTE services tech-giant, Facebook has accepted Ericsson’s chief strategy officer, in this year, though China will also make that its app does eavesdrop to a statement. From 2020 onwards, a significant contribution,” said Phil everything that is happening around Ericsson expects cellular networks to Kendall, executive director, wireless it, but merely as a way of observing become increasingly important to the operator strategies, at Strategy what people are heeding to or IoT as operators begin commercial Analytics. “Overtaking the USA to watching and indicating that they post 5G deployments. “5G networks will become the world’s largest 4G market about it and not alternatively. Anyhow provide additional capabilities that

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SAMENA TRENDS JUNE-JULY 2016 are critical for IoT, such as network that will detect attacks in real time, a Smartphone, and WiGig (802.11ad) slicing and the capacity to connect alerting users and disinfecting the pushes data transfer limits, allowing exponentially more devices than is phone without violating privacy. Sirin next generation features,” he said. possible today,” Qureshi said. By the Labs also partnered with KoolSpan Solarin is powered by a Qualcomm end of 2021, Ericsson expects total to integrate chip-to-chip 256-bit AES Snapdragon 810 processor, offers 5G connections to reach 150 million. encryption, the same technology used 450 Mb/s downlink and up to 150 By then, LTE connections are forecast by the military. The launch follows Mb/s uplink speeds and 24 band LTE to grow to 4.3 billion compared to 1.2 more than two years of research compatibility. It features titanium billion at the end of the first quarter. and development in Sweden and Tel panels for structural strength, Corning Meanwhile, 3G connections are Aviv. Moshe Hogeg, co-founder and Gorilla Glass 4 to protect the curved expected to grow to 3.1 billion from president, explained the high price by display screen and camera lens, and a 2.1 billion at the end of 2015, while saying that normally a firm decides technical leather back panel. 2G-only connections are expected to on its target audience and bases the fall to 1.2 billion from 3.6 billion. budget for its tech on how much it can charge, but Sirin decided to “play the KPN security chief warns game backwards”. He noticed it was on IoT vulnerabilities Singapore Increases “frightening to see how exposed” user Minimum Coverage data was, and decided to focus on The absence of standards for the quality and security, while “pushing the Internet of Things (IoT) is one of the Standards for 4G Net- boundaries of technology”. He added many challenges facing the industry works that Sirin was inspired by Tesla to build in securing today’s networks, warned something first and then determine Jaya Baloo, chief information and Singapore’s telecoms regulator its price. Tal Cohen, co- security officer at operator KPN. has issued new rules covering the founder and CEO, said minimum coverage allowed for the target audience 4G networks. The new regulations is business travelers, will require the mobile networks entrepreneurs and offering 4G services to cover 95% of partners in financial firms outdoor areas from July 1, 2016, and who are not fooled by will increase it to at least 99% from style over substance, are July 1, 2017. The regulator, the IDA short on time, and don’t added that it will also impose similar want to compromise on standards on a fourth mobile network certain features such as -- if a license is granted -- who will be voice clarity, security, provided with more lead-time to roll damage resistant screen out its network to meet the standards. and a high quality The new standards are similar to the camera. According to 3G coverage requirements that were him: “Just one attack enhanced in 2012. can severely harm reputations and Speaking to Mobile World Live at finances. Solarin is pioneering new, the GSMA’s Mobile 360 Privacy and uncompromising privacy measures Security event in The Hague recently, Sirin Labs launches $14k to provide customers with greater Baloo said it was getting to a stage “military-grade super confidence and the reassurance where operators do not know “what necessary to handle business-critical normal looks like” when it comes to Smartphone” information.” “Exceptional audio and traffic on their network, which means Sirin Labs launched Solarin, a vision capabilities feature highly on blocking something unsecure or Smartphone that focuses on security our target audience’s wish list. Sirin abnormal is becoming even more of a with business travelers as its main Labs’ audio and vision engineers challenge. She argued that the industry target audience, retailing at a fixated on exceeding expectation, is now “building new technologies whopping $13,800. Each phone will run turning to experts to develop a new with old vulnerabilities” and many two versions of Android: a regular one benchmark for Smartphone speaker of the challenges arising “are things that will let users access social media systems and unparalleled striking we should already know about”. “We and browsing, and a second which, screen intensity,” he added. Meanwhile are talking about the use of default with the flick of a security switch at the VP of product, Fredrik Oijer, said the passwords, we are talking about back, will add an extra layer of security firm focused on design and quality, privilege escalation and inappropriate with more limited functionality. The visual experience including a 24MP mechanisms for just regular coding,” phone will enter a shielded mode, camera, loud speakers, global she said. “There’s a lot of stuff for IoT presenting an “exclusive suite” of tools optimization and privacy. “At every that we should have solved before we for fully encrypted calls and messages. level, Solarin outperforms. Advanced built the product.” In the interview, The regular version is protected by carrier aggregation technology Baloo also said there was an increasing mobile security firm Zimperium, combines multiple LTE carriers for need to raise awareness among users backed by Sirin’s own cyber defense wider bandwidth, providing a faster, over growing threats to their security, team, while the second version clearer connection.” “Using 802.11ac when it comes to connected devices. comes with Koolspan’s encryption. 2×2 MU-MIMO technology provides Zuk Avraham, CEO of Zimperium, up to three times the bandwidth of said his firm has provided solutions

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Bundling Voice and taking advantage of a bundled voice and the rollout will continue across and connectivity offering. Having a the capital and in other, undisclosed Data reduces costs and single service provider means that urban areas. “We continue to look at complexity businesses have one point of contact new and innovative ways of providing for all interactions, streamlining fault improved mobile coverage in order to The Internet is no longer a ‘nice- finding and call logging. It also means meet our customers’ soaring demand to-have’, but rather, a necessary that costs are easier to analyze and for mobile data and video while utility. Much like other utilities, we understand, and therefore to manage. minimizing disruption to the general depend on it to better our daily A business sourcing all of their ICT public and improving the aesthetics lives, using it for both business needs from one service provider will of the surrounding area,” said Jorge and personal communication. It not need dozens of in-house IT staff to Fernandes, CTO of Vodafone UK, in is the foundation for a multitude manage multiple systems, so costs can a statement. “We are delighted to be of Information Communication be saved on resources. There’s also partnering with Ericsson, one of our Technology (ICT) services and less administration, no unnecessary key network suppliers, on this project products, such as telephony, email call out fees, and consolidated and look forward to further engaging and live video streaming, many of reporting which is often available with local councils and government which have become necessary for through an easy access portal. When to look at ways of reducing red tape optimal business functionality. But considering the risks of having around site planning for mobile mast when a business is using multiple ‘all one’s eggs in one basket’, any installations,” he said. Vodafone and services that are all interdependent, service provider worth their salt will Ericsson are also working together on managing and administrating them ensure measures are put in place to three-band carrier aggregation (CA), can become a laborious and costly mitigate risks and minimize downtime combining the operator’s 800-MHz, operation. Businesses today need ICT. wherever possible. Businesses who are 1800-MHz, and 2.6-GHz spectrum to They need to be able to communicate looking to consolidate their services improve download speeds. In a recent internally and externally, and to be should select a service provider who trial that took place at select sites in able to process, store and access vast can offer redundancy, and who has a London, the companies achieved a amounts of data on a daily basis. In track record of reliability and stability. maximum throughput of 240 Mbps. order to effectively manage all of their It is imperative that a company selects According to Vodafone, these same IT products and services, businesses a service provider who understands sites are now capable of delivering a need to employ a lot of resources and their needs and addresses them peak connection speed of up to 700 keep their training up to date. They also accordingly, while not adding Mbps. The briefcase-sized base stations need to deal with the administrative superfluous services to boost profits. that Vodafone is rolling out support headache of liaising with multiple A reputable service provider generally three-band CA, Vodafone said. While service providers who all depend on offers a simple but comprehensive Ericsson opted for the professional, each other’s services to function – a menu, with transparency into what business-like radio unit in a briefcase, veritable administrative nightmare. each service entails. Businesses need rival Nokia took a rugged, outdoors-y When a particular service fails, it can to do their due diligence and check approach with its mobile network in a become all too easy for that service up on potential service providers’ backpack. Based on a small cell, the provider to lay the blame at the feet references and experience. A bundled Ultra Compact Network is designed of the others, wasting a company’s voice and connectivity solution will to provide 4G ad hoc coverage for valuable time with unnecessary help businesses to save costs, mitigate high-traffic events like festivals, or in rounds of finger pointing. It can also risk and reduce overall responsibility, remote areas, or in situations where become expensive as service providers while still giving them all the ICT the macro network is compromised, who bill for their time are called out, services they need to operate such as a natural disaster. Weighing in one by one, to resolve the problem optimally. What’s not to love? at 5 kg and only requiring 100 watts, only to find that the fault is another a single unit can support up to 400 service provider’s issue. If more than connections and has a cell range of 75 one service provider is involved in km. It can connect to fixed, microwave, the provisioning of a service, fault Vodafone UK rolls out or satellite backhaul networks too. finding can become a tricky and costly Ericsson’s briefcase- “We were very impressed with the process. For example, if a business sized base station capabilities of this lightweight, easily cannot make or receive calls, they will deployable small cell system,” said call their PBX service provider who Compact, portable mobile networks Mansoor Hanif, director of RAN at EE, may investigate and discover that the appeared to be the talk of the town which trialed Nokia’s Ultra Compact PBX system is fine, then blame the this week, with two of the industries Network during May. “It is an ideal telecommunications provider, who biggest kit makers showing off their solution for disaster recovery and to may in turn find out that the fault is not latest mini base stations. Vodafone deliver temporary coverage for both theirs but a networking problem. And UK announced on Tuesday that it is public and private sector customers,” so it goes, leaving the company with a rolling out Ericsson’s briefcase-sized he said. lot of needless bills, wasted time and – radio units to improve mobile network through their own negatively impacted performance in London. Half the size service delivery – loss of revenue. It of a standard radio unit and more makes sense, then, for businesses to energy efficient, a field engineer can consider service providers who offer carry it to a rooftop, eliminating the all of these products and services disruption caused by having to use a as a single, bundled package. A crane. The first mini base station has business can save time and money by been installed in Southwark, London,

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SIM Boxes and Internet of Things Pose Rising Fraud Threats in the Middle East and Africa

As long as there have been businesses and prepare for the fraud that the future is consumers, there has been fraud. And now bringing through the IoT. For this reason, fraud is infiltrating the quickest-growing it’s imperative that mobile operators channel for business – mobile – on a develop a dedicated strategy for each. massive new scale. The Communications Fraud Control Association (CFCA), in fact, Here I would like to share some lessons now estimates that nearly 1.7 percent of from our recent work with customers global telecommunication revenue is lost in this region, through which we’ve annually to fraudulent activity. developed several approaches that offer a practical foundation to countering and, In the Middle East and Africa, this activity ultimately, minimizing this fraud. has recently been revealed through two types of fraud that are gaining SIM Box Fraud momentum and presenting a rising This fraud involves termination of threat to mobile service providers. One international traffic using illegal routes. type is one of the oldest forms of mobile Fraudsters use a device that holds fraud, SIM box fraud, and the other type stacks of SIM cards on one side and a represents one of the newest mobile connection to the internet on the other Nour Al Atassi technologies, the internet of things (IoT). side. Using this device, fraudsters can Regional Vice President and Managing make an international call appear to be Director, Middle East and Africa, Each presents a special threat to the a local call and avoid an international Syniverse future of mobile in the Middle East and calling charge. Specifically, when an Africa. Yet, as we continue to increase out-of-country call comes in through an our effort to fight the more established operator’s international gateway, the call SIM box fraud, we must at the same time can be received through the internet and

80 TECHNOLOGY UPDATES

SAMENA TRENDS JUNE-JULY 2016 then “re-originated” through SIM cards to make the call Yet, despite the known advantages of these new methods, appear as if it comes from a local location. As a result, some operators have been slow to adopt them. With SIM operators can lose the difference in fees between a local box fraud reaching a new high, we have now reached call and a substantially more costly international call. a point where operators must begin treating these methods as essential to their business, and all operators This difference can lead to severe financial repercussions, across the Middle East and Africa must begin fully costing operators almost $6 billion in 2015, according integrating them as a core component of their strategy. to the CFCA. This is especially true in Africa, a hotbed Only through this strengthened effort will we be able to for SIM box fraud. Recently, in Kenya, it was estimated begin to turn the tide in battling this fraud. that operators and government agencies were losing approximately $440,000 per month as a result of this IoT Fraud fraud. Governments can lose even more, since many Although still a small part of the total connections in countries impose taxes on international mobile services. the Middle East and Africa, the IoT is growing quickly In Ghana, for example, the government reported that and bringing a dangerous new problem. As with many SIM box fraud recently cost $5.8 million in lost taxes. technology developments, where money goes, criminals usually follow, and now criminals are infiltrating IoT Operators, though, face several challenges with SIM box technologies and exploiting new vulnerabilities. fraud. One of the biggest of these involves one of the most common methods of detection, test-call generation. This According to the GSMA, the IoT now represents over involves a process in which operators set up test numbers 23 billion global connections, including approximately on their networks and make calls to those test numbers 10 billion machine-to-machine connections, a type of from many different countries, through many different connection that in developing economies, such as in the interconnect voice routes around the world. In this way, Middle East and Africa, rose by 33 percent from the year they can find out where “grey routes” are originating and prior. And with this rise, a new generation of fraudsters the paths they use to reach SIM boxes in a particular has taken root. In South Africa, for instance, a notorious country. The test-call generation method, however, has case of IoT fraud has involved traffic lights whose SIM been weakened by new technologies that fraudsters cards have been targeted by thieves, who have swiped cards from hundreds of lights in Johannesburg.

But operators face numerous challenges with this fraud. Among them, the sheer number of IoT connections continues to multiply exponentially. Additionally, many IoT connections involve multiple partners and remain equally vulnerable at the weakest link in the system. Finally, new mobile technologies like 4G present new processes that are vulnerable to exploitation.

However, the development of basic approaches is beginning to offer more effective methods to counter this threat. These include, first, treating IoT fraud as a separate fraud type and having a dedicated strategy can use to analyze voice call traffic coming to their SIM for it distinct from other technologies. Second is having boxes. Based on usage patterns, these technologies can an IoT strategy with a predictive analysis capability that be used by fraudsters to determine which calls are real provides a scientific basis for obtaining the best data to subscriber calls and which calls are originating from a respond to fraud patterns. A third approach is using a test system, and fraudsters can then block or reroute test cloud-based solution, which is vital in being able to offer calls to legitimate routes to avoid detection. quicker and more cost-efficient solutions to respond to fraud. It’s imperative that operators integrate these In the last couple of years, however, new methods approaches as a core part of their strategy to protect have been developed that offer more accurate and against IoT fraud. sophisticated detection of fraudsters. In particular, one major advancement is the development of analytics- Mobile fraud will continue to be an ongoing battle, but based methods that use call detail records to create while we strengthen our effort to fight one of the oldest statistical usage-based profiles and detection algorithms and most common types, SIM box fraud, we must also that can identify SIM card use. These methods offer a keep an eye to the future and prepare for the newest number of advantages over test-call generation, including area for fraud, the IoT. The future of healthy mobile a more scientifically-based approach based on statistical growth in the Middle East and Africa depends on our data, a wider coverage area and more thorough search ability to develop dedicated strategies to combat these process, and near-real-time detection of SIM box activity. fraud types.

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wholesale NEWS

4G wholesaler ORN launched services over ORN’s network, while other companies permitted to changes name ahead of resell ORN’s 4G service include: GMAX, planned African expansion Intercom Technologies, 4NetAfrica, Piramie, Twinning in Corporation, Simba Olleh Rwanda Networks (ORN), the open- Supermarket, TRUCONNECT, POPCONN access 4G joint venture between South and Suku NSA. Korea’s KT Corp (51%) and the Rwandan government (49%), has announced that it has changed its name to Korea Mexico postpones whole- Telecom Rwanda Networks (KTRN), in a move designed to unify its branding sale telecoms network as it plots its entry into new markets. bidding again WHOLESALE AllAfrica quotes Han-Sung Yoon, CEO of KTRN, as saying: ‘We have just changed Mexico has postponed the bidding Updates the name, from Olleh Rwanda Networks process for a planned wholesale back to globally recognized name, Korea telecommunications network by more Telecom Rwanda Networks. Nothing than a month, the government said, in the else has been changed … All our logos latest upset to the project which has been changed on 27 June. We intend to plagued by delays since its inception. extend our operations to other parts of In a statement on Friday evening, the the region, and we thought it’s better to Communications and Transport Ministry expand as single network, with a similar said proposals must now be submitted name.’ According to TeleGeography’s by October 20, pushed back from the GlobalComms Database, the JV was September 8 deadline. The ministry said established in June 2013 and went would-be bidders needed more time on to launch in in capital Kigali on 11 to secure financing for the project. The November 2014. The telco is obliged venture, initially meant to be launched to deploy an open-access 4G network by 2014, is part of a telecommunications to 95% of the African state’s population reform aimed at curbing the dominance within three years of launch; the network of tycoon Carlos Slim’s America Movil and is currently available in 25 of Rwanda’s broaden Mexico’ s cell phone network and 30 districts. ORN offers 4G connectivity penetration. It offers the winner of the to local mobile operators and ISPs on bid cheap use of high quality spectrum in a wholesale basis. All three incumbent the 700MHz band and a 20-year public- cellcos (MTN, Tigo and Airtel) have private partnership contract to build a

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applauded the idea and agreed to provide an example of the breadth of discuss standardization of roaming ripple effects that can be expected after systems, SK Telecom said. the UK referendum result, and also of the degree to which the end results are difficult to predict with certainty. Bell’s wholesale fiber appeal The overall approach to regulation quashed for a second time of telecommunications within the UK will not necessarily change much. The by CRTC Regulatory Framework for Electronic The Canadian Radio-television and Communications (RFEC) that the Telecommunications Commission European Union enacted in 2002 4G LTE mobile network that operators (CRTC) has quashed Bell Canada’s was largely based on procompetitive and virtual network operators can rent. second attempt to challenge the UK ideas in the first place. Certain Terms of the bid were released in late regulator’s rules giving competitors international aspects are, however, January, including key deadlines in the access to its high speed networks, likely to change. The most obvious process that the government decided examples are (1) the to postpone in March. The bid’s winner relationship of the UK and will be announced on November 17 its national regulatory and the contract signed by January 27 authority (NRA) OFCOM to at the latest, the ministry said. its European counterparts; (2) the wholesale payments that UK network LoRa operators start operators make to their European counterparts work on global roaming for interconnection; and system (3) wholesale and retail South Korean operator SK Telecom arrangements between the wants to establish a global roaming the Financial Post reports. In the UK and the European Union. Our focus network for Internet of Things (IoT) ‘unsurprising’ decision published here is on roaming. If the UK were to services in partnership with overseas yesterday, the CRTC denied Bell’s become a member of the European telecom operators. SK Telecom believes application to restrict which companies Economic Area (EEA) (comprised that the global IoT roaming network can buy and resell access to large of all EU Member States plus will enable services such as luggage network operators’ fiber internet Norway, Liechtenstein, and Iceland), tracking, The Korea Times reports, connections. Bell proposed to restrict the applicability of the European citing SK Telecom’s R&D center SVP wholesale fiber access to ISPs owning regulatory framework for electronic Park Jin-hyo. “We will actively share our their own transport facilities with communications would be clear. knowhow obtained while establishing annual turnover of less than CAD500 Joining the EEA could be expected to and commercializing the LoRa network million (USD361 million), and also oblige the UK to accept most of the nationwide with partners at home and wanted to disallow reselling. With or burdens of EU membership (including abroad, contributing to a global IoT without the restrictions it proposed, freedom of movement), with fewer of ecosystem,” Jin-hyo said. SK Telecom Bell claims that the CRTC’s new rules set the privileges than the UK currently said it has recently participated in a in July 2015 ‘will reduce the incentives enjoys. In the discussion that follows, meeting in Nice, France, to discuss of both incumbents and new entrants we assume that a UK membership in partnerships for establishing an to invest in fiber-to-the-premises’, but the EEA will not happen, but it cannot international roaming system for the the federal government rejected the be categorically ruled out. The UK LoRa network connecting Korea and telco’s petition in May, before the CRTC might still selectively conclude bilateral Europe. LoRa networks are designed refused the changes after determining agreements with the EU (and also with to provide wide coverage, low energy its original ruling had no factual or legal its member states). The implications for consumption and long battery life for errors. With ISPs submitting pricing telecommunications regulation would IoT modules for small devices. The proposals to the regulator this week, depend on exactly which agreements technology was developed by the it is expected to take approximately were concluded. Since Switzerland is in LoRa Alliance, a group of global mobile a year for pricing structures to be precisely this position (having rejected carriers and network equipment finalized and commercial wholesale membership in the EEA in a referendum makers that includes Cisco and IBM. offers to be launched under the new in 1992), it is perhaps useful to draw a On 4 July, SK Telecom launched its framework. few comparisons. The Swiss choose to LoRa network in Korea, with plans to voluntarily participate in the EU’s Board connect 4 million IoT devices by 2017. of European Regulators of Electronic SK Telecom reports it has suggested to Mobile roaming, Brexit, Communications (BEREC). In this its partners, including Telefonica and and unintended conse- role, they also participate voluntarily French system integration providers in BEREC’s collection of statistics EGM and CEA, to jointly develop a quences on international mobile roaming; LoRa-based roaming system. The The impacts of Brexit on mobile however, they are not subject to the French companies, which are currently roaming are by no means large in various EU Roaming Regulations, and testing their LoRa networks in Europe, overall economic terms, but they consequently do not benefit from

83 wholesale updates

SAMENA TRENDS JUNE-JULY 2016 them. The prices that consumers seeking further market feedback on players,” added Oettinger. The EC is pay for roaming reflect wholesale the economic model to encourage the also addressing concerns from other international payments between the transition. All interested parties are industry players that it had focused mobile network operators, since the invited to submit their comments by 9 too much on retail roaming charges actual service has to be provided in September. and had not paid sufficient attention the visited country. Among EU/EEA to the wholesale roaming market. In members, these payments at wholesale May MVNO Europe, a coalition of level are subject to price caps. Since Airtel Uganda chasing UTL MVNOs and “progressive” MNOs, said Switzerland is neither an EU nor an interconnect fees regulated wholesale roaming caps EEA member, Swiss mobile operators also needed to be reduced to allow all are not entitled to the benefits of Mobile operator Airtel Uganda is operators to compete on the market. these price caps. If the EU were to “Without any further steep offer these advantageous wholesale reduction of these caps, arrangements to a third country a large number of mobile such as Switzerland or the UK in the operators may decide absence of a comprehensive free trade or be forced to impose agreement, it would likely raise WTO restrictions to users when concerns. Since the higher prices that roaming abroad through Swiss mobile operators pay are a real complex and unfriendly cost, their retail prices are also higher contractual clauses,” MVNO than for mobile network operators in Europe said at the time. EU/EEA countries, as is visible in the The coalition also warned figure below. The high price of roaming that a great deal of work in the EU has been a constant source of claiming more than UGX6.3 billion still needs to be done by the European irritation for Swiss consumers, and has (USD1.7 million) in unpaid interconnect Commission, parliament and council frequently been featured in the Swiss fees from state-backed Uganda to deliver on the political promise to press. One can argue that their retail Telecom Ltd (UTL). A report from The achieve roam-like-at-home across prices in Switzerland are elevated more Monitor says that Airtel has petitioned Europe by mid-June next year. The EC than the wholesale charges would the High Court Commercial Division to has been gradually reducing the caps strictly require; be that as it may, it is force UTL to pay the outstanding fees. on roaming fees across the EU. The clear that the prices of Swiss mobile The court has given UTL ten days to latest reduction took effect from the network operators cannot be the same respond to the petition or it says Airtel end of April 2016, with the prices that as those of mobile network operators will be entitled to the sum it is claiming. mobile operators can charge on top in EU/EEA countries. As long as Swiss In the past UTL has also been accused of their domestic offerings capped at mobile network operators (MNOs) pay of non-payment of interconnect fees €0.05 per minute on outgoing calls, more at wholesale level for roaming by another mobile market rival, MTN. €0.02 per SMS sent, and €0.05 per MB in the EU/EEA than MNOs in EU/ of data. In the meantime, operators EEA Member States, retail prices in across the EU have been introducing Switzerland for EU/EEA roaming can be EC proposes caps on “worry-free” roaming or “roam-like- expected to remain higher than those wholesale roaming charges home” services ahead of the June 2017 in EU/EEA Member States. It appears The European Commission has deadline. One of the latest offers came that the UK will shortly find itself in the adopted a proposal to set caps on from Three Austria, which introduced same position. regulated wholesale roaming charges the “3FeelLikeHome” option that in order to prepare the ground for the essentially enables domestic minutes, abolition of retail roaming charges text and data packages to be used ARCEP consults on from June 15, 2017. The commission abroad. geographical adjustment is proposing maximum wholesale roaming charges at €0.04 ($0.045) per of unbundling tariffs minute, €0.01 per SMS and €0.0085 per Ghana amends Electronic French telecoms watchdog the MB in the European Union. Günther Communications Intercon- Authority of Regulation for Electronic Oettinger, the commissioner for the Communications and Posts (Autorite digital economy and society, said the nect Clearinghouse Regu- de Regulation des Communications EC is now counting on the European lations Electroniques governing the pricing Parliament and European Council Ghana’s National Communication of the copper network, which outlines “to keep the pace and adopt [the Authority (NCA) has amended the a possible geographical adjustment proposal] swiftly.” The EC said national draft Electronic Communications et des Postes, Arcep) has launched a wholesale roaming markets must be (Interconnect Clearinghouse) public consultation on new regulation competitive if the abolition of retail Regulations of 2016, which will require to the recurring monthly price of the roaming charges is to be sustainable telcos and international carriers to copper pair. The proposed framework throughout the EU, enabling operators connect their gateways through a is aimed at encouraging users to switch to offer retail roaming services third party centralized clearinghouse. from the legacy copper network to without any charges in addition to the The bill, presented in parliament in new superfast networks. The regulator domestic price. “We want to make sure February 2016, seeks to reduce the has already conducted studies on this that the end of roaming charges works number of interconnection links transition to optical fiber and is now properly for consumers and market in Accra from 32 to 15, address

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SAMENA TRENDS JUNE-JULY 2016 insufficient interconnection capacity, TRAI changes norms at once or in a series of steps. Dan resolve interoperability issues based Blemings, director of Ethernet product on differences in telcos’ equipment in accounting separate management for AT&T mobile and types, and settle issues within call regulations business solutions, told FierceTelecom data records reconciliation which in an interview at the telco’s Dallas The Telecom Regulatory Authority have led to high interconnect debt headquarters that in developing the of India (TRAI) has issued changed rates. According to TeleGeography’s MEF 54 standard, the organization and norms for submission of accounts by GlobalComms Database, Ghanaian other providers realized they have to service providers, clubbing reports of operators originally opposed the award work with a diversity of approaches. various segments into seven heads of an Interconnect Clearing House (ICH) “One of the lessons learned in MEF from the eleven earlier. According to concession – mooted to be granted 54 is this concept of the bilingual the new changes made in accounting by 7 February 2015 for a term of ten operator,” Blemings said. “If you wanted separate regulations 2016 yesterday, years subject to renewal – describing to connect with an Ethernet service the operators will be liable to merge it as an ‘imposition and interference provider on your boundary, you needed the access service (full mobility) and in their operations’, while noting that to know their flavor of Ethernet: was it access service (WLL) as access service it would increase the cost of doing an old style NNI or an MEF-compliant (wireless). As per the statement business for value added service (VAS) E-NNI.” AT&T itself borders hundreds released by the telecom regulator, providers. Despite the opposition, the of Ethernet providers, including a mix separate reports for services like tower NCA awarded the first ICH license of cable operators, CLECs and other business, dark fiber and cable landing to Afriwave Telecom Ghana after a ILECs. The service provider said it station has been done away and are competitive bidding process against is seeing other providers adopt the now captured under other specified four other applicants later that month. MEF 54 standard and are preparing telecom services. The report added The company commenced operations their networks to better address the that separate reports for postpaid in May 2016, and now claims to have interconnection issue. “We’re seeing and prepaid segments under access successfully detected and blocked the industry really start to grow on its services have also been discontinued. over 300,000 unauthorized attempts at learning curve of taking the right steps The “Reporting System on Accounting illegal international call bypasses since they need to take, asking the right Separation Regulations, 2016” has launch. questions of who’s on their border, been issued by repealing the 2012 and start to have discussions with their regulations. It said that in order to vendors on is their equipment ready,” capture the current developments in Blemings said. “We’re starting to see Syniverse optimizes roam- the Indian telecom service sector and that unfold, which is very rewarding ing for Djibouti Telecom to eliminate the difficulties/concerns as an AT&T employee and from a MEF with regard to the requirements/ Syniverse has expanded its relationship perspective the project accomplished reporting under Accounting Separation with Djibouti Telecom through an what it set out to do.” Even as the Regulations (ASR) 2012, the authority agreement to deliver a suite of MEF helps service providers in the has notified the 2016 regulations. It solutions for performance analysis, broader Ethernet services community further said the authority is of the view forecasting and budget management, migrate to a more organized Ethernet that the present turnover criteria of Rs. and fraud protection. The services interconnection regime, there are still 100 crore should facilitate in collection offered through the agreement enable a number of challenges. “You can look of representative data from a range of Djibouti Telecom to gain visibility at it through several angles,” Blemings medium to large TSPs. Therefore, the into and manage its end-users’ said. “One angle is, MEF has standards authority now decides to continue experiences during roaming while in place that help carriers make the the ASR 2016 with the existing limit of protecting the network from fraud transition and the other angle is ‘how aggregate turnover of Rs 100 crore or and controlling costs. According to do I understand how to implement more. Syniverse, its Roaming Data Analysis- those standards and MEF 54 helps Visibility Services provide real-time kick start that process.’” Blemings said access to roaming performance data that the next step for Ethernet is to through an easy-to-use window that AT&T says Ethernet inter- mirror how service providers created aggregates all subscriber data in a connection success de- interconnection mechanisms for TDM- single view. The vendor’s Forecasting pends on understanding based networks. “Just like the world and Budget Management-Optimizer grew up in this TDM environment automates the planning, forecasting partners and that commonality enabled this and budget process to help make AT&T has been working with the internet growth that we have seen the operator’s roaming interoperator MEF to drive consensus on how over the years,” Blemings said. “Now tariff (IOT) discount negotiations service providers should interconnect we have to replicate that same sort of more profitable. At the same time, their Ethernet networks, but the rapid expansion with Ethernet where Syniverse’s Roaming Fraud Protection initial challenge is understanding we need to have everyone talk about offers Djibouti Telecom a managed what element of Ethernet each Ethernet in the same manner and service that includes an analyst team carrier partner has. In 2015, the enable the next massive growth curve and a cloud-based application that MEF addressed that issue with the of bandwidth.” monitors roaming data globally for “Ethernet Interconnect Point E-NNI suspicious behaviors 24 hours a day, Implementation Agreement – MEF seven days a week. 54.” With this new IA in place, service providers will have guidelines to create these new interconnections either all

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SATELLITE NEWS

Kacific launches rural Myanmar in Talks with satellite service in Vanuatu Aireon for Space-Based Kacific Broadband Satellites has ADS-B announced the launch of a high speed Aireon has signed a Memorandum of broadband internet connection in the Agreement (MOA) with Myanmar’s rural Lambubu area on Malekula Island Department of Civil Aviation (DCA) to in Vanuatu. The service, which is based collaboratively develop a concept of at Lambubu Primary School, provides operations and benefits analysis for maximum speeds of 17Mbps delivered the deployment of its forthcoming by satellite. A small VSAT terminal has space-based Automatic Dependent been installed to receive the signal, Surveillance-Broadcast (ADS-B) service. allowing all villagers to benefit from DCA provides air traffic control, air high speed internet connectivity. Other navigation, aeronautical information Satellite schools and healthcare centers will be and aeronautical telecommunication for connected over the next few weeks. international and domestic aircraft inside Updates The installation, which is Kacific’s first the Yangon Flight Information Region operational service, is a joint project (FIR). The organization controls an with the Vanuatu government and local increasingly busy air traffic thoroughfare ISP Telsat. ‘The broadband connectivity between Asia, Europe and the Middle from Kacific is a major step in our work to East, with some of its territory being provide universal internet access to the oceanic where terrestrial-based systems people of Vanuatu,’ commented Dalsie are limited. According to Boeing’s Baniala, head of the Telecommunications Long Term Market Outlook, Asia could and Radiocommunications Regulator become the largest travel market in the (TRR), adding: ‘The computer lab at world, growing at 6.1 percent annually Lambubu School will in future develop and adding more than 100 million new into a government service centre, passengers each year. “We have many providing internet and educational and challenges installing ground-based health services to the wider community. surveillance solutions due to the remote This connectivity will provide previously and diverse terrain in our region,” said unheard of educational opportunities for Soe Paing, director of air navigation the children, as well as improving health safety, DCA Myanmar. “We are growing outcomes for all villagers.’ at almost 10 percent annually and need to ensure that airspace safety is one of

86 satellite updates

SAMENA TRENDS JUNE-JULY 2016 our top priorities. The Aireon service for data links. WideSAT technology Space Situational Awareness (SSA) will offer us increased safety and will be incorporated in Advantech and maritime surveillance. The two visibility that exceeds the capabilities Wireless’ A-SAT-2 multi-waveform agencies also intend to develop a joint of ground-based infrastructure.” satellite networking platform as well roadmap for cooperation detailing Aireon’s space-based ADS-B service as future products. “Our new WideSAT activities of common interest. begins launching in September aboard technology has been designed the Iridium Next constellation. In the specifically for better handling of the Asia-Pacific, Aireon also has a signed new HTS GEO/MEO/LEO widebeam China Clears Inmarsat’s data service agreement with the transponders that can typically be IsatPhone 2 for Sales in Civil Aviation Authority of Singapore seven to 15 times larger than the Country (CAAS), and has a long-standing MOA traditional 36MHz GEO transponders. with the Airports Authority of India WideSAT is planned to enhance our Inmarsat has received type approval (AAI). leading A-SAT-2 multi-waveform from the government of China for satellite networking platform to its IsatPhone 2 technology. Working dramatically improve point-to- alongside local channel partners MCN Bike Channel UK Launch- multipoint broadband applications,” Beijing and China Telecom Satellite es on Freesat said Oscar Glottman, Advantech (CTS), Inmarsat is now positioned to Wireless’ CMO for satellite networks. service the Chinese market. According Freesat, the ITV and BBC subscription- to the company, it is the only free satellite TV joint venture, has international operator legally eligible signed a distribution agreement with European Defense to sell handheld satellite phones in the Bike Channel to reach viewers Agency Formalizes Co- China. A key criteria for the approval across the U.K. Through the agreement, was to have local infrastructure in the the Bike Channel is now available to operation with EU Satel- country. MCN, in partnership with more than 17 million households in lite Center Inmarsat, successfully completed its the country. The Bike Channel provides The European Defense Agency (EDA) Global Satellite Phone Service (GSPS) live and exclusive coverage of many and the European Union Satellite gateway station in China at the end top professional races, including the Center (SATCEN) have exchanged of 2014, receiving its official license Gent-Wevelgem, Tour de Romandie letters to formalize their existing earlier this year. “As the need for and Giro del Trentino, as well as cooperation, in place since 2004. The reliable and remote communications documentaries, entertainment and letters establish a more structured in China continues to grow, driven cooperation, increasing the number by strategic initiatives such as ‘One of mutually pursued activities such Belt, One Road’, Inmarsat will be well as studies, workshops, projects positioned to capture that growth,” and programs. The new enhanced said Tim Johnson, VP of Inmarsat’s relationship will also see the Enterprise Unit. “There are several nomination of points of contact on sectors such as mining and oil and both sides to facilitate communication gas, which regularly operate in remote and cooperation. Since 2004, EDA and areas of China and where currently SATCEN have collaborated on projects traditional connectivity cannot provide such as Geospatial Information the required level of reliable service to Support Decision Making in cost-effectively. This announcement Operations (GISMO) and GISMO 2 paves the way to meeting that Persistent Surveillance Long Term demand.” Analysis (SULTAN). Both organizations original programming. The channel perform complementary roles and is aimed at cyclists and cycling fans, activities in the space-based Earth What the FCC’s 5G and appeals to leisure riders, racers, Observation domain and more spectrum plan means for mountain bikers, commuters and generally in the space and security triathletes. Sky and Virgin Media also Ka-band satellite sector. Whereas the EDA’s work is distribute the channel across the U.K. The FCC voted unanimously to open focused on the harmonization of up nearly 11 GHz of high-frequency requirements and plans for future spectrum – 3.85 GHz of licensed Advantech Wireless Re- capability development, SATCEN’s spectrum and 7 GHz of unlicensed activity supports the EU by providing spectrum – for “flexible, mobile, and leases WideSAT Product products and services resulting from for GEO, MEO and LEO fixed use wireless broadband”, which the exploitation of space assets, basically means 5G. That’s potentially HTS particularly in the Common Security good news for US operators planning Advantech Wireless is now offering and Defense Policy (CSDP) field. EDA to leverage millimeter-wave bands for WideSAT, a new High Throughput and SATCEN have also identified 5G applications – but not-so-good Satellite (HTS) widebeam technology specific cooperation areas such as news for satellite operators, although for Geostationary, Medium and imagery exploitation, geospatial most satellite players outside the US Low Earth Orbits (GEO, MEO and analysis and applications, future space- probably won’t have to worry about it LEO) to increase density, versatility, based Earth observation systems, for a long time yet. The bands in the FCC and efficiency when using wide cybersecurity, big data exploitation plan include 28 GHz, 37 GHz, 39 GHz, transponders from 250MHz to 2GHz in the space and security domain, and the 64-71GHz bands. However,

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SAMENA TRENDS JUNE-JULY 2016 part of the 28-GHz band is already technology for 5G access one day, but participant in the Cube Quest Challenge being used by satellite operators for as Rethink Research has pointed out, with Miles Space. After completing the Ka-band services. And satellite players most initial 5G activities in the world challenge objectives, the satellite will have expressed severe annoyance at won’t be focused on millimeter-wave move to a storage orbit that coincides the FCC for even considering the 28- anyway – they’re more likely to be with the 2016HO3 asteroid — Earth’s GHz band as a terrestrial 5G frequency, using sub 6-GHz frequencies. So the newly discovered quasi-moon. The not least because one of the outcomes interference issue isn’t an imminent spacecraft will communicate via the of WRC-15 in November was a tacit one outside of the US. Meanwhile, Atlas ISCN at distances reaching 30 agreement to exclude the band from here’s one interesting observation million kilometers to prove deep consideration for 5G usage. FCC from Rethink’s Caroline Gabriel: when space capabilities are commercially Chairman Tom Wheeler – who hasn’t millimeter-wave 5G does start to available using Atlas. Atlas touts the been particularly sympathetic to the happen, it will herald the beginning ISCN as the world’s first commercially satellite industry’s argument that no of the end for the established MNO available deep space communications one else should be able to use the 28- business model: Some of that is network, capable of providing an GHz band – says the approved plan happening already. Facebook’s affordable, commercially available strikes the best possible balance to OpenCellular and Terragraph, and alternative to the established deep allow terrestrial and satellite players to Google’s Loon, show how open space communications capabilities share the band, reports FierceWireless: technologies can be applied to access of the world. The company chose When asked about the satellite players’ networks, breaking the stranglehold Phoenix Arizona for the first ISCN objections in a press conference after of the traditional vendors with their antenna site, with more to follow. the commission’s meeting, Wheeler closely guarded magic, but also Using advances in phased-array said there were dueling studies back lowering the barriers to new entrant technology, Atlas is installing a and forth on the issues, which were operators. MNOs from Bouygues to large array of electronically steered insufficient to go one way or another. Saudi Telecom to Deutsche Telekom apertures to achieve the performance “We are going to continue the efforts discussed the divestment of their required to detect and track the faint to study the issue, and if it’s necessary towers this week – this is just one small radio frequency signals typical of deep to re-examine it, we will.” While the step to a deconstructured market space missions. The ISCN will have satellite industry didn’t get everything where infrastructure is shared, capacity the similar performance attributes as it wanted, neither did the terrestrial flexibly allocated, and core technology NASA’s Deep Space Network (DSN), mobile industry. In announcing the placed into open source. That said, according to the company. Plans are in final rules, FCC staff noted that the she adds, the key technology enabling motion to establish operational deep commission struck a balance between this shift isn’t 5G radio but dynamic space capability from Phoenix by July new wireless services, current and bandwidth-slicing enabled by network of 2017. future fixed satellite service operations virtualization. and federal uses. The FCC said the order includes effective sharing Inmarsat, VT iDirect schemes to ensure that diverse users, Atlas Space Operations Form Joint R&D Team including satellite and terrestrial, as Commercial Deep Space Inmarsat and VT iDirect are forming well as fixed and mobile, can coexist Network Pathfinder to a joint Research and Development and expand. Tom Stroup, president Launch on NASA’s First (R&D) team, dubbed i2, to of the Satellite Industry Association support the development of next issued a diplomatic response to the SLS Mission generation satellite communications ruling: “SIA is also encouraged by Atlas Space Operations has technologies. The new venture builds the provisions pertaining to earth commissioned a pathfinder on collaboration between the two stations operating in the 28 GHz space mission to demonstrate companies during the past four years, band but still has concerns regarding which includes the Global potential aggregate interference. Xpress (GX) program. We look forward to working with The R&D project team, the FCC further and appreciate the to be based at Inmarsat’s Commission’s willingness to revisit headquarters in London, this issue as needed. There are many will focus on the proof- sophisticated technical issues posed of-concept and prototype by this rulemaking, and we are eager phases for new satcom to fully evaluate the rules that have technologies. Inmarsat and been adopted.” What this will mean for VT iDirect will jointly assess 28 GHz at WRC-19 is anyone’s guess. the commercial potential One possible outcome: if US players of each new technology actually hammer out a feasible plan before the decision is for terrestrial/satellite co-existence, taken to deploy it in the WRC-19 could conceivably decide to its Interplanetary Satellite form of a new product or service. make 28 GHz a global band for 5G Communications Network (ISCN). The Both companies’ partners and end- apps. Even it that happens, though, 6U Atlas ISCN pathfinder CubeSat is users will have privileged access to it’s important to remember that all of scheduled to launch in 2018 aboard the new technologies. Among the first this is way off in the future. Millimeter- NASA’s Space Launch System (SLS) projects the team will address are the wave will certainly be a cornerstone Exploration Mission 1 (EM1), as a creation of new solutions to support

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SAMENA TRENDS JUNE-JULY 2016 the growing integration of satcom and Two Iranian Satellites in aircraft worth $5.9 trillion. While the terrestrial networks, the requirement two airframers’ expectations over the for smaller, more powerful satcom Orbit by March next 20 years differ, both forecasts — terminals, and the boosting of Head of the Iranian Space Agency combined with recent moves by Airbus waveform performance. (ISA) announced at a presser in Tehran and Boeing as well as activity on the that Iran would launch 3 satellites first day of Farnborough — shows that in the next 8 months. “At-Sat, Nahid a significant number of the aircraft Forecast International 1, and Dousti are the satellites their delivered between now and 2035 will Expecting 1,935 New Re- design and manufacturing have been feature advanced forms of cockpit mote Sensing Satellites completed and by March 2017, we will and cabin-based satellite-powered have launched either of Nahid or At- broadband connectivity. The average by 2025 Sat as a communication satellite, and between the figures released by the Surging demand for Earth imagery Dousti as a monitoring satellite,” said two Original Equipment Manufacturers should lead satellite manufacturers Mohsen Bahrami. Saying that At-Sat (OEMs) is equal to a 20-year demand to produce some 1,935 remote is a product of Amir Kabir University, for 36,310 aircraft worth $5.5 trillion. sensing satellites over the next 10 Nahid of Elm-o-San’at University, Both companies also expect the global years, according to a recent study and Dousti of Sharif University, in-service fleet to double from today’s by Forecast International. Based on Bahrami added that Pars, which is nearly 20,000 to 40,000 new aircraft the research firm’s “The Market for a measurement satellite is the next or more by 2035. Among the most Civil & Commercial Remote Sensing project of Iran currently undergoing. important details in both reports Satellites” report, an estimated $29 “The launch of these domestic regarding satellite-based broadband is billion (in FY16 U.S. dollars) in remote satellites is in line with the ‘resistance a shared view that the largest demand sensing satellite manufacturing economy’ policies and even a contract for new jets will continue to be single- will occur during the 2016 to 2025 will be signed next week to use an aisle airliners such as the re-engined forecast period. The study covers Iranian launcher for deploying Nahid A320neo and 737 MAX. Boeing 58 satellite production programs. 1 satellites into orbit,” highlighted Mr. specifically expects low-cost carriers Bahrami. He also recounted that an within emerging markets to drive Iranian delegation has been invited growth for single-aisle aircraft, which by Italians to visit Mesbah satellite it estimates will lead to demand for and discuss returning the device to 28,140 new airplanes. Aircraft of this Iran. Italy refused to hand it over to size already account for 76 percent of Iran under the pretext of international Boeing’s current global order backlog. sanctions on Iran. “Iranian researchers Similarly, Airbus forecasts demand for need to evaluate considerations to 23,500 new single-aisle aircraft or 71 decide over the launch of Mesbah percent of expected deliveries over the satellite into the orbit,” he added next 20 years. The A320 will account saying that it may no longer be cost- for the largest number of deliveries efficient. Iran’s Mesbah satellite was over the next two decades within this built in collaboration with Italy’s Carlo segment. The company appears to be Gavazzi Space S.p.A in 1998 and was gearing up for the increased use of unveiled in 2005. Mesbah, a low earth satellite powered Internet Protocol (IP) Forecast International notes that orbit telecommunication satellite, was for both cabin and cockpit through the average launch mass of remote never launched as both Russia and a recent agreement with Cobham sensing satellites increased from 851 Italy refused to continue cooperation Satcom. At the end of June, Airbus kilograms in 2011 to 1,775 kilograms with Iran on space projects due to the selected Inmarsat’s SwiftBroadband- in 2013, followed by a substantial sanctions against Iran. Safety (SB-S) service available from decline in average launch mass in 2014 Cobham Satcom’s Aviator S series down to 301.8 kilograms. This decline terminals, as future equipment for continued in 2015, dropping to 226.1 Airbus, Boeing Outlooks its A320 and A330 families. Under kilograms. William Ostrove, author of See Strong Market for Cobham’s contract with Airbus, the the study, said in a press release that Satellite-Connected Air- company will begin to install hardware the cause for declining mass does on the two aircraft families starting in not mean that there has been a lack craft 2018, well within the 20-year outlook. of opportunities for large satellites. Airbus and Boeing both released their However, Inmarsat and Cobham aren’t Russia’s Resurs-P3, launched in March 20-year global market forecasts on the only viable players in satellite- 2016, weighed 5,920 kilograms at the first day of the 2016 Farnborough powered IP for this demand period. launch. The decline in average launch International Airshow. Airbus was Flyht Aerospace continues to evolve mass is due to an increased number less optimistic in it’s long term view and prove the capabilities and values of small satellites, not a decreased of global demand for passenger jets, provided by its’ Iridium-powered number of large satellites. The report predicting airlines will require 33,000 Automated Flight Information also notes growing commercialization new aircraft worth $5.2 trillion in Reporting System (AFIRS). On the as a major trend in the remote sensing the next two decades, while Boeing passenger side, Gogo’s 2Ku service will satellite market, with commercial increased it’s 2016 outlook by 4.1 prove its capabilities within the first companies readily adopting the small percent compared to 2015 predictions, few years of the Airbus and Boeing 20- satellite form. projecting a global demand for 39,620 year forecast periods, based on recent

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SAMENA TRENDS JUNE-JULY 2016 contracts to add the technology to recognize the put option under which experienced an anomaly that required 137 International Airlines Group (IAG) Abertis would have to buy the stake. its transfer maneuver to be temporarily aircraft, and it will also start flying “The compromise to remain in the halted. MUOS 5 was projected to on 35 Delta Airlines jets this year. company, at least until the end of July reach geosynchronous orbit and That number will be increasing to a 2017, assumed by the shareholders enter its test location 22,000 miles total of 600 Delta jets based on an via the Shareholders Agreement, above Hawaii by July 3. Following the agreement announced between the conditions the efficacy of the put,” anomaly, the Navy’s Program Executive two companies in May. said Abertis in a statement to Spain’s Office for Space Systems reconfigured markets regulator CNMV. Construction the satellite from orbital transfer into company Abertis, which controls 57 a stabilized, safe intermediate orbit Panasonic, China Tele- percent of Hispasat, added that, in any to allow the MUOS team to evaluate com Satellite Extend IFC event, the execution of the transaction the situation and determine options Trial to Chinese Airlines requires the approval of Spain’s for proceeding. MUOS 5 is an on- Council of Ministers. orbit spare for immediate redundancy Panasonic Avionics and China Telecom in the MUOS constellation. The Satellite (CTS) announced a one- Navy reports that the other four year extension of their Ku-band In- Optus Satellite, URSYS satellites in the constellation are Flight Connectivity (IFC) trial that will partner to deliver tele- performing nominally. The delay in expand connectivity to several Chinese coms solutions in rural MUOS 5 reaching its test location airlines. With the trial’s extension, all will have no impact upon current approved Chinese and international and remote areas legacy or Wideband Code Division airlines can now select Panasonic’s Optus Satellite has announced a new Multiple Access (WCDMA) satellite global communications services. wholesale relationship with URSYS, a communications operations. The Per terms of the license, more than designer and provisioner of satellite- MUOS network provides “smartphone- 20 foreign airlines with more than based voice and data communications, like” telecommunications services with 1,000 aircraft are expected to begin specifically for complex networks near-global coverage, and enables 16 operating connected flights over in remote and rural areas. In a press times more communications capacity Chinese airspace, with more in process. release it has been confirmed that than the legacy system it will eventually Initially, 12 foreign airlines with slightly under the agreement URSYS will replace. Lockheed Martin is the prime more than 200 aircraft were offering utilize dedicated satellite capacity on contractor for MUOS. “Nothing is IFC over this region. There were also Optus’ D2 satellite, while it will also more important to Lockheed Martin three Chinese-registered airlines and gain access to third party international than mission success,” the company 30 aircraft offering connected flights satellite providers. Further, URSYS commented in a statement provided in and out of China. In addition, will utilize Optus’ teleport facilities to Via Satellite. “We are working closely Panasonic’s Chinese airline customers, at Belrose, north of Sydney in NSW, with our Navy customer to determine including China Eastern Airlines, and the wider Optus infrastructure. the cause of the anomaly.” Xiamen Air, Hainan Airlines and Optus Satellite vice-president Paul China Southern Airlines have begun Sheridan claims the partnership is preparations to offer connectivity significant because it ‘focuses on joint MUOS 5 Glitch Interrupts services across their global route go-to-market opportunities within Journey to GEO structure. The announcement follows the targeted LTE, SCADA and unique The U.S. Navy reports that the fifth recent news that the leading Chinese network industries’, while Grahame satellite in the Mobile User Objective carrier, China Eastern Airlines, in Cover, chief executive at URSYS, said System (MUOS), successfully launched partnership with CTS, was the first to of the new relationship: ’[It] builds June 24 aboard an Atlas 5 rocket, has offer Wi-Fi on domestic flights. China on the deep experience of both experienced an anomaly that required Eastern Airlines installed Panasonic’s URSYS and Optus Satellite to meet eXConnect IFC system on its newest demands coming from the market for Boeing 777-300ER aircraft. a complete solution, particularly where more than just a simple broadband connection is required … URSYS and Eutelsat looking to sell Optus Satellite have proven long stake in Spain’s Hispasat term commitments to remote and Eutelsat announced that it has rural Australia, and this partnership initiated the process of divesting its combines our expertise to re-define 33.69 percent stake in Spanish satellite services and offer bespoke solutions operator Hispasat by exercising to remote business customers with the put option granted in 2008 by specific network requirements.’ Hispasat’s majority shareholder, the Abertis Group. Under the terms of the put option agreement, the MUOS 5 Glitch Interrupts value of the Hispasat stake will be Journey to GEO determined by an independent expert, The U.S. Navy reports that the fifth said Eutelsat in a statement. However, satellite in the Mobile User Objective its transfer maneuver to be temporarily Abertis subsequently replied that the System (MUOS), successfully launched halted. MUOS 5 was projected to process initiated by Eutelsat is not June 24 aboard an Atlas 5 rocket, has reach geosynchronous orbit and valid and that the company doesn’t

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SAMENA TRENDS JUNE-JULY 2016 enter its test location 22,000 miles marketing, business unit radio at a significant impact on the IoT above Hawaii by July 3. Following the Ericsson, today there are more than market. “EU regulations and policy anomaly, the Navy’s Program Executive 15 billion connected devices, including recommendation are driving adoption Office for Space Systems reconfigured smartphones, the connected car and of [Original Equipment Manufacturer] the satellite from orbital transfer into wearable devices, which ultimately OEM telematics and smart meters,” a stabilized, safe intermediate orbit bring humans into the IoT web, said Cerwall, providing one example to allow the MUOS team to evaluate among others. While mobile phones of regulatory-driven IoT. He noted the situation and determine options currently make up the largest segment that automotive and utilities are the for proceeding. MUOS 5 is an on- of connected devices, with 7.2 billion two most dynamic vertical market orbit spare for immediate redundancy mobile phones currently connected, segments in Western Europe, for which in the MUOS constellation. The by 2018 the company predicts that IoT connected devices are expected Navy reports that the other four IoT-connected devices, currently at to spike 400 percent through 2021, satellites in the constellation are 4.6 billion devices, will dwarf mobile accounting for the lions-share of the performing nominally. The delay in phones as the largest segment. volume growth in the coming years. MUOS 5 reaching its test location “Looking forward, we expect mobile Cerwall believes that a mandatory will have no impact upon current phones to grow at an average of 3 directive requiring e-call features on legacy or Wideband Code Division percent annually over the next six all cars sold, beginning in 2018, will Multiple Access (WCDMA) satellite years, which is vastly overshadowed drive the enormous growth. National communications operations. The by the growth we expect in IoT,” said programs for connected utility meters MUOS network provides “smartphone- Cerwall. According to the report, will also play a part in the massive like” telecommunications services with between 2015 and 2021, the number increase in devices. As consumers and near-global coverage, and enables 16 of IoT-connected devices is expected companies alike begin to turn to IoT- times more communications capacity to grow 23 percent annually. Of connected devices to optimize use of than the legacy system it will eventually the 28 billion total devices that will various technologies, and IoT enabling replace. Lockheed Martin is the prime be connected by 2021, close to 16 technologies become more reliable contractor for MUOS. “Nothing is billion will be IoT enabled. While IoT and affordable, satellite companies more important to Lockheed Martin will overtake cellular devices as the will have a large role to play in the than mission success,” the company most heavily connected, among the exploding market. “The same drivers commented in a statement provided different categories of IoT-connected for IoT will exist where there is no to Via Satellite. “We are working closely devices — including tele-health terrestrial coverage,” said Cerwall, with our Navy customer to determine devices, remote utility monitoring and pointing to satellite as the obvious the cause of the anomaly.” others — cellular IoT is expected to solution to drive connectivity in these have the highest growth rate between areas. He notes that satellite-connected 2015 and 2021. “This growth is due devices will differ from terrestrially IoT Set to Overtake Mo- to increased industry focus and [Third connected devices, however, in both bile Phones as Largest Generation Partnership Project] use case and pricing. “There are likely Connectivity Market 3GPP standardization of cellular to be differences in some use cases IoT technologies,” said Cerwall. The due to, for instance, latency impacts The Internet of Things (IoT) will growing maturity of IoT-enabling on process control. There will be a overtake mobile phones as the largest technologies and the emerging larger number of satellite-enabled category of connected devices by applications and business models are devices, although many devices will 2018, a new report by Ericsson finds, driving the uptick in IoT-connected have lower average bit rates compared creating a burgeoning opportunity devices, according to Cerwall. The to many current applications such as increased interest broadcast media. Satellite-enabled and capability is devices are likely to remain somewhat supported by falling more expensive than the same costs for chipsets devices connected terrestrially due to and devices, making the relative size of the ecosystems,” it more affordable to Cerwall said. Due to these differences, enable IoT. Consumer IoT may prove to be an additional readiness also plays a driver in pushing terrestrial networks big part in the rapid geographical boundaries further, as IoT adoption as the IoT-connected devices become more public is displaying critical to business operations. Cerwall an inclination to also warns that the traffic generated begin adopting smart by IoT will differ from the current homes, connected leader in connectivity demand, and cars and wearables, that providers should be careful to while companies cater to the changing environment. are keeping their “While the number of connected IoT eyes on IoT to devices is growing dramatically, the increase efficiency traffic generated from those devices across businesses. Additionally, is much less than that from mobile for satellite companies. According regulatory requirements are having broadband. Evolving architectures to Patrik Cerwall, head of strategic

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SAMENA TRENDS JUNE-JULY 2016 for mobile infrastructure should cater earlier. Analyzing the channels carried even been placed into orbit. ESA is for all the connectivity needs,” said on seven satellites targeting the Arab seeking ways to cultivate ideas that Cerwall, noting that there is ongoing world – namely Arabsat, Es’hailsat, use the multicast capability of satellite work in many of the areas that Eutelsat, Gulfsat, Nilesat, Noorsat and to reach devices outside the range of currently present challenges, including Yahlive – Arab Advisors Group found terrestrial telecommunications. “This is enhancements in provisioning, device the number of HD channels by May a very innovative community, but one management, service enablement and 2016 represented around 18% of the not yet active in the satcoms market,” security. total number of satellite channels said ESA’s Frank Zeppenfeldt, who was carried. “Arab Advisors research and instrumental in launching the new ITT. analysis shows that the number of “We would like to engage with it and ITU Releases new High HD TV channels has grown by around help it develop innovative satcoms Dynamic Range TV Stan- 9% between March 2015 and May solutions. Through this tender, we’d dard 2016,” said the report’s author, Noor like to see a kind of makerspace for Asmar, Arab Advisors’ Senior Research satcoms community emerges.” The ITT The International Telecommunications Analyst. “By May 2016, Arabsat had the closes on 5 September 2016. Union’s Radiocommunications largest number of HD channels with Sector (ITU-R) has announced a new 83 channels available on the platform. standard for High Dynamic Range Nilesat followed,” she added. Thuraya Supports First (HDR). The recommendation, created Telemedicine Expedition in collaboration with experts from the television industry, broadcasting European Space Agency to K2 organizations and regulatory Reaches out to IoT Sec- The first telemedicine expedition to institutions in its Study Group 6, the mountain K2 is underway, after complements the ITU’s Ultra-HD tor successful trials in the Himalayas TV Recommendation BT.2020. The The European Space Agency (ESA) in March. The WiCis-Sports app, HDR-TV Recommendation allows recently launched an Invitation to running on Thuraya’s SatSleeve+, TV programs to take full advantage Tender (ITT) through its Advanced will monitor the #K2Adventure16 of new, more luminous display Research in Telecommunications Madison Mountaineering trip. The technologies. HDR-TV can bring out Systems (ARTES) program to encourage #K2Adventure16 project began June more detail in bright or dim scenes, prototyping of low data rate satellite 12, and is set to reach the summit giving TV producers the ability to communications concepts that would in mid-August. Garrett Madison is reveal texture and subtle colors that be suitable for diverse Machine-to- leading the team of 10, accompanied are usually lost with existing Standard Machine (M2M) and Internet of Things by porters from Pakistan and Sherpas Dynamic Range TV. The HDR-TV (IoT) applications. With this new from Nepal. One of the most remote Recommendation details two options places on Earth, for producing High Dynamic Range with only 46 TV images: Perceptual Quantization permits issued (PQ) specification, which achieves a in 2016, K2 is wide range of brightness levels using the second a transfer function that is finely tuned highest and to match the human visual system, arguably the and the Hybrid Log-Gamma (HLG) world’s most specification, which offers a degree of intimidating compatibility with legacy displays by mountain. more closely matching the previously Select established television transfer curves. adventurers The recommendation also outlines a will wear simple conversion process between lightweight, the two HDR-TV options. The ITU-R funding opportunity, ESA is targeting breathable, Bluetooth-enabled Recommendation BT.2100 also allows a sector that does not normally work garments featuring embedded TV producers to choose from three on satellite communications, namely or integrated sensors, under levels of detail or resolution: HDTV maker communities throughout normal climbing gear. The sensors (1920 by 1080), 4K (3840 by 2160) Europe that focus on, among other continuously monitor heart rate, and 8K (7680 by 4320) — all of which things, consumer-oriented terrestrial oxygen saturation, skin temperature, use the progressive imaging system communications projects. These geo-location, altitude, speed and with extended color gamut and groups have generated numerous bearing. Data will be streamed to range of frame-rates in ITU’s UHDTV hardware products and concepts the WiCis-Sports internet platform Recommendation BT.2020. based on small embedded systems using Thuraya SatSleeve+, and will be (such as Raspberry PI, Arduino), available within one to two seconds software defined radio (like HackRF, on any internet-enabled device on the HD satellite channels on GNU Radio, URSP, LimeSDR), and planet. Leo Montejo, CEO of WiCis, the rise in MENA open source Field-Programmable will keep track of the party’s progress High definition (HD) television Gate Array (FPGA) programming from California. WiCis-Sports is also channels serving the Middle East boards. A number of such products combining and analyzing vital sign data and North Africa (MENA) via satellite or concepts are already used within to provide a snapshot of the climbers now number 212, up from 195 a year various ARTES projects and some have overall health status. Should a medical

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SAMENA TRENDS JUNE-JULY 2016 or other emergency arise, rescue teams between 10:30 a.m. and 11:14 a.m. global position for navigation or will have immediate access to the EDT. For the Navy, MUOS 5 completes location-based applications. The data needed to assess the climbers’ a network of orbiting satellites and addition of another GNSS is intended condition and the exact location. relay ground stations aimed at to provide more accurate location Mountain climbers underwent two improving secure communications performance faster time-to-first-fix, successful trial expeditions earlier this for mobile military forces. Users and improved robustness all over year in the Himalayas. Montejo, a team with MUOS terminals will be able to the world, particularly in challenging leader in the first of the two, tested the seamlessly connect beyond line-of- urban environments where the Thuraya SatSleeve+ and WiCis-Sports sight around the world and into the combination of narrow streets and App. Three expedition members were Global Information Grid, as well as into tall buildings can reduce accuracy. forced to withdraw through illness; the Defense Switching Network. “Users This feature is integrated in the latest one acute mountain sickness case was of the legacy satellite communications Qualcomm Snapdragon 800, 600, and so serious that a rescue helicopter was system can talk, but they are limited 400 processors and modems. Galileo called for, using Thuraya SatSleeve+. to conversations between users under will be supported on Smartphones and the footprint of the same satellite,” compute devices with the appropriate explains Mark Woempner, director software release on Snapdragon ViaSat Supports FCC of Lockheed Martin’s Narrowband 820, 652, 650, 625, 617, and 435 Chairman Remarks on Communications Systems. “MUOS processors, automotive infotainment Spectrum Sharing for 5G is a game-changer for our forces, solutions using Snapdragon 820A, establishing a global military cellular and telematics and IoT solutions with and Satellite Broadband network through which they can reach Snapdragon X16, X12, X7, and X5 LTE ViaSat is supporting comments out to each other — and exchange Modems, and Qualcomm 9×15 and made earlier this week by Federal mission data — almost anywhere MDM6x00 modems. These enhanced Communications Commission (FCC) around the world.” MUOS 5 joins a processors and modems are designed Chairman Tom Wheeler in an address network of four already-on-orbit MUOS to enable infotainment and telematics titled, “The Future of U.S. Leadership in satellites and four operational relay solution providers to satisfy an a 5G World.” “We are encouraged by ground stations, providing near-global important component of the European the chairman’s emphasis on finding a coverage, including communications eCall mandate ahead of the March balanced solution providing terrestrial reach deep into Polar Regions. Like 2018 deadline. wireless providers with access for its predecessors, the MUOS 5 satellite new 5G services while protecting the has two payloads to support both continued access to this spectrum these new Wideband Code Division Embratel Star One Sees for next-generation high-speed Multiple Access (WCDMA) waveform Ka-Band as Boon in satellite broadband services. This capabilities, as well as the legacy Brazil type of sharing would enable both Ultra High Frequency (UHF) satellite to coexist and play an important system. MUOS 5 will augment the Gustavo Silbert, president of Brazilian role in providing faster speed, higher constellation as a WCDMA spare, while satellite operator Embratel Star One, quality internet and video streaming actively supporting the legacy UHF says the company is looking to the to consumers across the country,” said system, currently used by many mobile launch of its Star One D1 satellite Mark Dankberg, ViaSat chairman and forces today. Once fully operational, to expand capacity for Direct-to- CEO. “In addition to sharing spectrum, the MUOS network will provide users Home (DTH) and cellular backhaul we are pleased the commission will with 16 times more communications in the region, as well as expand into look at adding 5G spectrum access in capacity than the legacy system it will the North American market. The additional bands — recognizing the eventually replace. More than 55,000 company plans to launch the Ka-band future of 5G wireless will not be a ‘one- currently fielded radio terminals can satellite — its largest satellite to date size-fits-all’ environment.” Wheeler’s be upgraded to be MUOS-compatible, — by the end of 2016, offering some speech comes on the heels of the FCC’s with many of them requiring just a much-needed relief to its satellite recent decision to allow all internet software upgrade. network. Silbert told Via Satellite services, including ViaSat’s satellite the company sees Ka-band as the broadband service Exede, to compete “new band in the region,” which will for universal service funds under the Qualcomm Enhanc- greatly expand both traditional and Connect America Fund (CAF) program. es Support for Galileo new operations, including Ka-band consumer broadband access to the across Product Portfolios internet, which will likely grow satellite US Navy, Lockheed Mar- Qualcomm Technologies is supporting demand for Brazil in the next two the European Galileo Global Navigation years, in addition to DTH and cellular tin Ready to Launch Satellite System (GNSS) broadly in backhaul. “The current use of Ka-band MUOS 5 Satellite its product portfolios. With these has been very limited in quantity, but The U.S. Navy and Lockheed Martin optimized software enhancements, will increase very fast with the new are ready to launch the fifth Mobile the Qualcomm IZat location services capacities that are planned to be User Objective System (MUOS) secure platform now uses up to six satellite deployed between now and by the communications satellite, MUOS 5, at constellations concurrently without end of 2017. This includes our Star Cape Canaveral, Florida on Friday, June incremental device hardware or cost. One D1 satellite that will provide Ka- 24, aboard a United Launch Alliance Users now benefit from more than 80 band services over Brazil. Our current Atlas 5 rocket. The launch window is different satellites when calculating model is to use Ka-band mainly for

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SAMENA TRENDS JUNE-JULY 2016 cellular backhaul and some video. data. The Olympic network will much-needed relief to its satellite The use for consumer broadband is have the capacity of 40 gigabytes network. Silbert told Via Satellite still under evaluation.” According to per second, connecting more than the company sees Ka-band as the Silbert, video and cellular backhaul 60,000 access points spread in more “new band in the region,” which will are the current drivers of satellite than 100 venues, including places of greatly expand both traditional and communications in Brazil, with the competition and non-competition new operations, including Ka-band majority of Star One’s current revenue related to the event. Aside from consumer broadband access to the coming from video. To support the the preparation necessary to host internet, which will likely grow satellite current level of cellular backhaul and broadcast the event, Embratel’s demand for Brazil in the next two demand, the company is presently data centers are also responsible years, in addition to DTH and cellular relying on some of its transponders for hosting the ticket sales website, backhaul. “The current use of Ka-band from Star One C4 satellite, launched which the country estimates will see 8 has been very limited in quantity, but in 2015, as well as the collocated Star million tickets sold through the online will increase very fast with the new One C2 satellite. After 2019, however, platform. Silbert originally told Via capacities that are planned to be much of the cellular backhaul will Satellite that the Olympic Games would deployed between now and by the migrate to Star One D1, freeing up usher in a new era of 4K into Latin end of 2017. This includes our Star more transponders on these satellites America, and while Star One is ready One D1 satellite that will provide Ka- to grow DTH operations in both Brazil to transmit 4K and 8K within Central band services over Brazil. Our current and Central America. Claro Mobile and South America, it is thus far on a model is to use Ka-band mainly for Network started to use Star One’s Ku- limited basis. “For sure the Olympics cellular backhaul and some video. band capacity for cellular backhaul will confirm the use of 4K, but it will be The use for consumer broadband is this year and it has already announced o a limited basis. There will be some 4K still under evaluation.” According to plans to use the company’s Ka-band transmissions,” said Silbert. “There will Silbert, video and cellular backhaul capacity to expand the service the also be 8K transmissions, but in this are the current drivers of satellite Star One D1 satellite launches. Once case they will be sent to Japan as part communications in Brazil, with the Star One D1 is launched, the company of an experiment with them.” After the majority of Star One’s current revenue hopes to free up some capacity to Olympic games, however, the executive coming from video. To support the move into the North American market notes that oversupply and Brazil’s current level of cellular backhaul as well. “We have switchable capacity current economic downturn could demand, the company is presently over North America in both Star One pose an issue for the operator, should relying on some of its transponders C4 and D1. As the needs of our current the recession persist. “We have been from Star One C4 satellite, launched Brazilian, Central and South American noting a certain oversupply taking in 2015, as well as the collocated Star customers have been very demanding, place in Latin America. Together with One C2 satellite. After 2019, however, making us operate with high fill rates some devaluation of local currency much of the cellular backhaul will within our fleet, so far there has not in relation to the dollar, this may migrate to Star One D1, freeing up been available capacity to switch to bring a combination that may cause more transponders on these satellites North America s we had done in the a mismatch in the business for some to grow DTH operations in both Brazil past. With the arrival of the new D1, players,” Silbert said. While Silbert and Central America. Claro Mobile however, we hope to initiate some says the company could see an impact Network started to use Star One’s Ku- operation there,” Silbert said. For providing the economic situation band capacity for cellular backhaul now, the company is gearing up to doesn’t buoy back shortly, he hasn’t this year and it has already announced broadcast and hosts the 2016 Olympic expressed any reservations about the plans to use the company’s Ka-band Games in Rio de Janeiro, which are set viability of the satellite market in the capacity to expand the service the to begin in early August. Embratel is region, even if the issue persists. “Even Star One D1 satellite launches. Once one of four official telecom supporters if a slowdown occurs in the demand, Star One D1 is launched, the company for the 2016 Olympic Games, along there is a market [in Brazil] to be hopes to free up some capacity to with Claro, Net, and America Movil served. There are still thousands of move into the North American market Group. While Silbert told Via Satellite unattended areas that need telecom as well. “We have switchable capacity the telecom supporters had a “good infrastructure,” he noted. over North America in both Star One rehearsal” with the World Cup in C4 and D1. As the needs of our current 2014, the telecom infrastructure has Brazilian, Central and South American become much more complex than Embratel Star One Sees customers have been very demanding, it was at the time of the world cup. Ka-Band as Boon in making us operate with high fill rates Alongside its telecom cohorts, the Brazil within our fleet, so far there has not company has been busy readying been available capacity to switch to the infrastructure required for the Gustavo Silbert, president of Brazilian North America s we had done in the mega event, which includes deploying satellite operator Embratel Star One, past. With the arrival of the new D1, and operating datacenters as well as says the company is looking to the however, we hope to initiate some equipping several venues with a “high launch of its Star One D1 satellite operation there,” Silbert said. For quality and secure telecom network.” to expand capacity for Direct-to- now, the company is gearing up to The telecommunication base of Rio Home (DTH) and cellular backhaul broadcast and hosts the 2016 Olympic 2016 will be the Backbone Olímpico in the region, as well as expand into Games in Rio de Janeiro, which are set Embratel, a modern network with the North American market. The to begin in early August. Embratel is 370 kilometers of optical fiber, triply company plans to launch the Ka-band one of four official telecom supporters redundant, to guarantee the high satellite — its largest satellite to date for the 2016 Olympic Games, along transmission availability of games — by the end of 2016, offering some

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SAMENA TRENDS JUNE-JULY 2016 with Claro, Net, and America Movil if a slowdown occurs in the demand, than 20 years in Europe and has now Group. While Silbert told Via Satellite there is a market [in Brazil] to be been replicated in Nigeria. “SES is the telecom supporters had a “good served. There are still thousands of committed to helping economic and rehearsal” with the World Cup in unattended areas that need telecom sustainable growth in Nigeria and 2014, the telecom infrastructure has infrastructure,” he noted. accelerating the digital switchover become much more complex than process in the region. We aim to it was at the time of the world cup. connect the entire Nigerian population Alongside its telecom cohorts, the Spaceflight Successfully with our satellites, by developing the company has been busy readying Launches 12 Planet Dove broadcasting landscape in partnership the infrastructure required for the Satellites on ISRO’s PSLV with our local partners and in close mega event, which includes deploying coordination with broadcasters,” and operating datacenters as well as Spaceflight, the leading provider of said Eric Lecocq, general manager equipping several venues with a “high integrated launch services for small of North, West and Central Africa quality and secure telecom network.” satellites, has successfully launched at SES. “Nigeria is currently in the The telecommunication base of Rio a flock of 12 Planet Dove satellites process of migrating from analogue 2016 will be the Backbone Olímpico from the Indian Space Research to digital and, through the study, SES Embratel, a modern network with Organization’s (ISRO) Polar Satellite has established a market benchmark 370 kilometers of optical fiber, triply Launch Vehicle (PSLV). The 12 for the Nigerian TV viewing choices redundant, to guarantee the high spacecraft are shoebox-sized satellites that will directly support the digital transmission availability of games that will be delivered into Low-Earth switchover and independently track data. The Olympic network will Orbit (LEO) to provide imaging data. the progress of the project. Going have the capacity of 40 gigabytes Spaceflight previously arranged for the forward, this annual research will also per second, connecting more than launch of Planet’s Dove 1 and Dove 2 enable us to start monitoring trends in 60,000 access points spread in more satellites in April 2013, as well as its first the market,” Lecocq concluded. than 100 venues, including places of flock of satellites from the International competition and non-competition Space Station (ISS) in January 2014 related to the event. Aside from with partner NanoRacks. Spaceflight InfraMed Backs Eutelsat’s the preparation necessary to host then arranged for the launch of 11 Broadband for Africa and broadcast the event, Embratel’s more Dove satellites, known as Flock Satellite Venture data centers are also responsible 1c, from the Dnepr launch vehicle for hosting the ticket sales website, through partner Innovative Solutions Eutelsat Communications and which the country estimates will see 8 in Space. Spaceflight has negotiated InfraMed have entered into an million tickets sold through the online the launch of 81 satellites on behalf agreement whereby InfraMed platform. Silbert originally told Via of its customers and has contracts becomes a c.21 percent shareholder Satellite that the Olympic Games would to deploy more than 150 satellites in Broadband for Africa, the venture usher in a new era of 4K into Latin through 2018. The company plans to set up by Eutelsat to provide satellite America, and while Star One is ready coordinate its largest launch to date broadband services on the African to transmit 4K and 8K within Central — 89 spacecraft — to be deployed continent. By investing in Broadband and South America, it is thus far on a by Spaceflight’s Sherpa tug from a for Africa, InfraMed is pursuing its limited basis. “For sure the Olympics SpaceX Falcon 9 later this year. strategy to focus on opportunities will confirm the use of 4K, but it will be in regions characterized by dynamic demographics and infrastructure o a limited basis. There will be some 4K SES Releases Satellite transmissions,” said Silbert. “There will insufficiency. “Broadband for Africa will also be 8K transmissions, but in this Monitory Study Focused offer telcos, Internet Service Providers case they will be sent to Japan as part on Nigeria and government agencies a quality of an experiment with them.” After the solution that enables more Africans SES announced the results of its first to get online,” said Laurent Grimaldi, Olympic games, however, the executive Satellite Monitor study on the Nigerian notes that oversupply and Brazil’s CEO of Broadband for Africa. Set up by market, which provides insight on Eutelsat in 2015, Broadband for Africa current economic downturn could the country’s satellite television pose an issue for the operator, should aims to deploy affordable, high-quality penetration. The study highlights that broadband connectivity in Africa the recession persist. “We have been SES reaches 2.81 million TV homes noting a certain oversupply taking using, in the first phase, leased Ka- across the country, of which 1.69 band capacity on Spacecom’s Amos place in Latin America. Together with million are reached directly by SES some devaluation of local currency 6 satellite, and in the second phase, satellites, and 1.12 million cable TV resources on its own dedicated High in relation to the dollar, this may homes are fed indirectly by the SES bring a combination that may cause Throughput Satellite (HTS) that will be fleet. In total, there are 33.9 million TV launched in 2019. Broadband for Africa a mismatch in the business for some homes in Nigeria, with 8.98 million of players,” Silbert said. While Silbert will develop direct-to-user consumer them being served by satellites directly and enterprise broadband services says the company could see an impact and the rest by terrestrial and cable providing the economic situation and address the market for community networks. The Satellite Monitor study networks connected to Wi-Fi hotspots, doesn’t buoy back shortly, he hasn’t is an annual market research study expressed any reservations about the mobile phone backhauling and rural commissioned by SES and carried out connectivity. InfraMed is a 385 million viability of the satellite market in the by various independent institutes. The region, even if the issue persists. “Even euro long-term investment vehicle study has been conducted for more dedicated to infrastructure in the

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Southern and Eastern Mediterranean. assets are being underutilized and so commercial and support vessels. The InfraMed was jointly created in we can return them and cut costs.” antenna measures approximately 75cm 2010 by five major investors: Cassa in diameter, and weighs 35Kg. Skytech Depositi e Prestiti, Caisse des Deìpôts developed the product specifically for et de Consignations, the European beIN, Technicolor Ship use with Telenor Satellite’s Ka-band Investment Bank, Caisse de Deìpôts et Ultra-HD Satellite Re- maritime spot beams. de Gestion, and EFG Hermes. ceivers to MENA beIN Media Group has integrated NASA, UAE Space Agency Shell Selects Globalstar Technicolor’s 4K Ultra-HD technology Agree to Collaborate on Satellite Asset Tracking into its broadcast platform for the Middle East and North Africa (MENA). Air and Space Projects Solution The 4K rollout — touted as the first NASA Administrator Charles Bolden Globalstar Europe Satellite Services ever in the MENA region — comes just and UAE Space Agency Chairman announced that global oil giant in time for the UEFA Euro 2016 football Khalifa Al Romaithi formalized and Shell has deployed a satellite-based tournament. Video in 4K Ultra-HD signed an agreement Sunday June asset management solution in the displays images using more than 8 12 in Abu Dhabi for cooperation in Netherlands to securely manage million pixels (3,840 x 2,160), providing areas of aeronautics research, and the its movable assets on land and at pictures with an ultra-high resolution. exploration and use of airspace and sea. By more closely and efficiently beIN is broadcasting UEFA Euro’s four outer space for peaceful purposes. managing its high value assets and quarter-final matches, the semi-final The agreement covers cooperation their associated test certification, matches, and the final championship and collaboration in space science, Shell has achieved a positive Return match in 4K by integrating operational Earth observation on Investment (ROI) on the solution Technicolor’s 4K media server Set- and Earth science, aeronautics, in just three months. The Alltrack Top-Box (STB) technology into its 4K space operations and exploration, track and trace solution, provided by Ultra-HD receiver. The company will education, technology, safety and Globalstar’s Dutch-based Value Added broadcast 4K matches on a dedicated mission assurance, and other areas Reseller Improvement-IT, incorporates channel called beIN 4K. Plans are QR codes, Globalstar’s SmartOne already in motion for beIN to deliver satellite asset managers and a cloud- a steady supply of 4K content through based content management system. partnerships with other entertainment Alltrack has been integrated with and sports entities. Technicolor’s 4K Shell’s internal mapping software technology also includes a single layer utility to make it easy to precisely transmission technology that uses 10- locate assets, while geo-fencing bit High Efficiency Video Codec (HEVC) confirms that items are in the right encode/decode so content can be place. The solution ensures that rendered on any television, whether it equipment test certificates are valid, is 4K capable or not. In addition, there eliminating paperwork while cutting is built-in Wi-Fi and satellite support time and costs as well as speeding up as well as an integrated hard disk supply chain operations. To date, Shell that optimizes beIN’s 4K Ultra-HD with potential benefits to all nations. has deployed 250 SmartOne devices receivers. According to NASA, the two countries attached to a variety of high value will seek to identify additional areas assets including pumps, tools, power of mutual interest for possible future supplies and generators, which may Telenor Satellite Ap- cooperative programs or joint activities be on land, in containers, in transit proves Skytech’s BB75 on Earth, in airspace, or in outer space. or offshore. With terrestrial mobile Ka-band Antenna for These activities may include the joint communications networks being use of aircraft, scientific instruments incomplete, unreliable or non-existent Thor 7 aboard spacecraft, ground-based in these locations, satellite was the only Telenor Satellite has approved research facilities, spacecraft and reliable communications option. “This the BB75 Ka-band antenna from space research platforms, as well as new satellite-based solution ensures telecommunications company Skytech ground-based antennas for tracking, we get the full picture of where our for use with the operator’s new telemetry, and data acquisition. NASA assets are even if they are on a rig in Thor 7 Ka-band payload. Skytech, a and the UAE Space Agency formalized the North Sea. We have gone from a specialist in satcom-on-the-move is cooperation in the exploration of paperwork-intensive environment to the latest antenna supplier to receive Mars as the first field of collaboration a hosted asset management system approval from Telenor Satellite to between the agencies by signing an that makes decision-making quick supply antennas for the operator’s Implementing Arrangement under and easy,” said Albert Bos, team first Ka-band High throughput the framework. The Implementing leader for Well Services Workshop Satellite (HTS) services. With up to Arrangement establishes a joint at Shell. “When a container arrives 20Mbps of bandwidth, the BB75 Ka- steering group to guide discussions at the warehouse, security officers band model is a mid-sized antenna about potential future projects that now already know what’s inside and designed for maritime Ka-band users contribute to exploring the Red Planet. the test certificates are automatically that require high-speed connections Additionally, the two countries will validated, saving significant time. We and large quantities of bandwidth on aim to collaborate on education and can also easily see which of our rented board yachts, passenger ferries, and public outreach programs and joint

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SAMENA TRENDS JUNE-JULY 2016 workshops, with the goal of facilitating opportunity to partner with WiCis satellite-enabled wearable technology. the exchange of scientific data, came in while we were searching “We are in discussions with ultra scientists, engineers, and views and for portable solutions that make runners and other ultra athletes. We experiences on relevant regulatory it possible to create dynamic data will be beginning to make the solution frameworks and standards. feeds from remote locations. WiCis available to the marketplace in about was looking to use small form factor a month. We are also in contact with products that would help stream coaches and companies such as Optus Satellite signs NZ data from remote locations; Thuraya Hypoxico which prepare the athlete for broadband deal was able to offer them exactly what their endeavor in an optimal way,” she Australia’s Optus Satellite has signed they were looking for,” he said. “The said. “Using wearables will definitely a deal to deliver satellite-based in- synergies matched perfectly.” For allow for users to have a safer climb ternet services to rural parts of New WiCis, satellite-enabled wearables are since we can measure parameters that Zealand’s South Island. ZDNet reports a new technology. President of WiCis can predict AMS (Acute Mountain that the New Zealand firm Farmside, Carlota Fenes said the company tested Sickness),” added WiCis CEO Leo which is a subsidiary of local compa- the devices with Thuraya connectivity Montejo “We are measuring heart ny TeamTalk, aims to serve farms and for almost seven weeks, with extensive rate, oxygen saturation and body rural businesses on the island’s east trialing in Upper Mustang and then temperature. The wearables are easy coast where conventional broadband Upper Dolpo. She said the company to use and do not interfere with the networks have little coverage. was very happy with the results and trekker or climber … I think that within that the Madison Mountaineering five years these will be standard.” team has made regular use of the Fenes said WiCis’ system is designed to Thuraya-WiCis Partner- devices. “The adventurers were able to connect with any wearable/Internet of stream their location and vitals daily, Things (IoT) device. As more wearables ship Could Jumpstart so in America we always knew where and IoT devices come along, the more Satellite-Enabled Wear- they were and if they were safe. The data will need integration. This is, she ables Spotcast weather forecasting feature said, will provide an opportunity for was used also daily and proved very WiCis to gather all this information Thuraya and WiCis Sports are useful in predicting bad weather twice. and make it available in real time, pioneering the use of satellite Chat is also possible from anywhere,” anywhere. Thuraya also sees this communications for wearable she told Via Satellite. Climbers used as a major opportunity. “What we devices by supporting a team the Thuraya IP+ terminal to send are seeing today are early adopters on a climbing expedition in the and receive emails and photos, and using these solutions, because the Himalayas. Adventurists with Madison the Thuraya SatSleeve organized a global wearables market is still in its Mountaineering are currently in the helicopter rescue quickly through early stages. Having said that, the middle of the six-month trip, using Global Rescue, Fenes said. “Vital sign wearables market today is already Thuraya’s IP+ terminal, SatSleeve+ measurement is more useful than we worth more than $1.15 billion. The and SatSleeve Hotspot to stay ever imagined, so this means that the potential opportunity is considerable, connected. Wearables are anticipated blind approach that the market has though, since that figure is expected to be a major market in the next few now needs education,” she added. to surge to more than $25 to 30 billion, years, as devices like smart watches Thuraya’s primary market is connecting according to various estimates. This and fitness monitors achieve greater people and devices in remote will certainly have a positive impact on market adoption. These devices’ need locations, which gave the company the demand for satellite wearables,” for connectivity is also creating a new the experience to pursue this project. said Marwan Joudeh, product manager market for satellite. The Thuraya- Raouf Khalife, director of marketing, for Machine-to-Machine (M2M) and supported mountaineers are using communications and branding, Product Lifecycle Management (PLM) WiCis’ Adventure Sports Solution to told Via Satellite that Thuraya has at Thuraya. S.K. added that Thuraya track the heart rate, body temperature, worked on numerous other “extreme” has four other projects for third party oxygen saturation, location, altitude adventure projects ranging from app development underway that and speed of each climber. This mountain climbing and Alpine racing could lead to more unique use cases data, along with the general ability to solar car racing in the Australian for Thuraya products. Joudeh expects to communicate, is changing the outback and desert expeditions. “If we not only adventurers will make use of way mountaineering is done, and stay with the mountain theme to begin satellite wearables, but also enterprises could lead to the use of satellite for with, professional traveler Aleksey seeking to enhance the safety and wearables on a regular basis. Goutham Yakovlev has used Thuraya equipment improve the efficiency of their remote S.K, senior manager for products and for more than a year now. His many workers. He said Thuraya is confident solution development at Thuraya, trips include a ski mountain expedition that growing numbers of businesses told Via Satellite that the idea to in eastern Siberia. Then there’s Daniele in the oil and gas, mining, utilities support wearable devices by satellite Nardi, a human rights ambassador who and government sectors will deploy surfaced through the introduction of supports solidarity projects in Nepal wearable technology for their remote a supporting Application Program and Pakistan. When he set out on his workers.“Wherever it is important to Interface (API) for the SatSleeve. The winter expedition at Nanga Parbat in raise safety standards and enhance API lets developers build applications the Himalayas in December, he did so efficiency, our technology can add real for unconventional environments with a Thuraya IP and antenna and the value,” he said. where only satellite communications support of Intermatica,” he said. Fenes would otherwise be available. “The said WiCis is eager to find new uses of

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Proton SSTO Launch NASA Funds Aerospace of capacity on Eutelsat 172A and 172B, we’ve simply outgrown it,” said Lofts Intelsat 31 Satellite Corporation for Super- David Bruner, vice president of global for Latin America light Debris Removing communications services at Panasonic International Launch Services (ILS) MiniSats Avionics. Panasonic leases capacity on four other Eutelsat satellites — successfully orbited the Intelsat 31 NASA has awarded The Aerospace Eutelsat 10A, Eutelsat 70B, Eutelsat satellite for Intelsat June 9 aboard a Corporation a grant to investigate the 115 West B, and Eutelsat 117 West A Proton Breeze M rocket. The mission possibility of developing an extremely — and has already secured capacity for design consisted of a 5-burn Breeze thin spacecraft that would wrap future growth at this orbital location M Supersynchronous Transfer Orbit around debris and remove it from as the anchor customer on the high Earth’s orbit. The throughput payload on Eutelsat 172B, concept, called which is scheduled to launch next year. Brane Craft, is a 1-square meter spacecraft that Es’hailSat Signs Satel- is less than half the thickness of lite Pact with Qatar Civil a human hair. Aviation Authority The Brane Craft Qatari satellite company Es’hailSat, would only weigh has signed a Memorandum of about 50 grams, Understanding (MOU) with the Qatar significantly Civil Aviation Authority (QCAA) to less than even jointly develop satellite services. a standard The cooperation agreement will see CubeSat weight Es’hailSat providing satellite services of about 1 kg. to the meteorological department The 30-micron- under QCAA. Es’hailSat and QCAA thick spacecraft also agreed to cooperate in joint would have a very investments in Earth observation high thrust-to- satellites and the dissemination of data weight ratio, and would be capable and information to stakeholders and (SSTO) — a method of increasing heavy- of travelling long distances, which other relevant local and international lift performance over Geostationary opens up other possibilities beyond organizations. The agreement enables Transfer Orbit (GTO) mission designs. just the removal of space debris. “The both parties to provide satellite The first three stages of the Proton Brane Craft concept is based on the communications in disaster warning used a standard ascent profile to one-dimensional compression of a and disaster management during place the orbital unit (the Breeze complete spacecraft and upper stage emergencies. “We are delighted to be M upper stage and the Intelsat 31 into an essentially two-dimensional working with QCAA to jointly develop satellite) into a sub-orbital trajectory. object in order to maximize power-to- Earth observation capabilities within From this point in the mission, the weight and aperture-to-weight ratios,” Qatar and across the region. As a Breeze M performed planned mission said Siegfried Janson, Aerospace new satellite operator in the region maneuvers to insert the orbital unit Corporation’s senior scientist of the we are always looking to build scale first to a circular parking orbit, then to microsatellite systems department and and increase the portfolio of services intermediate and transfer orbits, and the lead investigator on the project. to support our stakeholders, partners finally to a Supersynchronous Transfer and customers. This agreement with Orbit where Intelsat 31 separated QCAA also enhances our efforts in after a 15-hour, 31-minute mission. Panasonic Increases Eu- supporting Qatar National Vision SSTO missions allow operators to telsat Capacity Commit- 2030,” said Ali Ahmed Al Kuwari, maximize spacecraft operational president and CEO of Es’hailSat. lifetime. The Space Systems Loral ment (SSL)-built satellite is a 20-kilowatt Panasonic Avionics has booked class spacecraft with both Ku- and additional capacity on the Eutelsat Bangladesh’s First DTH C-band capabilities. The satellite will 172A satellite to deliver broadband be collocated with Intelsat 30 at 95 connectivity and TV services to Operator Shares Plans degrees west longitude for services commercial airlines over the Pacific for Market over Latin America. The Ku-band Ocean region. Located at 172 degrees Two months ago Bangladesh got its payload, known as DLA-2, is designed east, the satellite enables Panasonic first Direct-to-Home (DTH) satellite to provide redundancy for DirecTV to bridge the West Coast of North television service through Beximco Latin America’s distribution services in America to Asia, and down to Australia Communications, a joint venture South America and the Caribbean. The and Pacific islands, supporting rapid air between Beximco Holdings and GS C-band portion enhances Intelsat’s traffic growth in the region. “We have Group. Beximco Communications’ existing C-band service infrastructure experienced unprecedented growth RealVU DTH service is active in three serving Latin America. across our aero, energy and maritime divisions of Bangladesh today and has markets in Asia. Even though Panasonic plans to expand throughout the rest has already contracted a large amount of the country. Dmitry Lapitskiy, CEO

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SAMENA TRENDS JUNE-JULY 2016 of Beximco Communications, told Via TV market and will reach rural areas rely on high bandwidth technologies, Satellite that the company plans to take where cable was not able to penetrate of which fiber is a key infrastructure,” RealVU nationwide by the end of the easily, and enable viewers to enjoy she said. Clark said she expects year, and sees now as the opportune more TV channels with digital quality,” some continents may see ubiquitous time to launch satellite television. he said. Chow added that digitization deployment of FTTH, whereas “Bangladesh is a growing market of cable headends across the country others will require hybrid solutions where potential is endless, and as we will increase the supply of bandwidth to ensure that underserved areas have entered the era of digitalization and allow channel numbers to are connected. She also anticipates — keeping government’s vision 2020 increase. He estimated the number that the perception of FTTH as in mind — this is the right time,” he of channels analog cable headend “connectivity for the elite” will fade as said. Cable TV is not fully digitized in operators can provide to be about 90. it is deployed in smaller towns and the Bangladesh today. Lapitskiy said he ABS anticipates digitization will spark countryside. Satellite will have a big would not refer to cable as competition consumer demand for more content role to play in connecting rural Africa, to RealVU, but does see the satellite and more choices, prompting the however, as already demonstrated service as having an advantage. As market to adapt and compete. Chow by the numerous satellites from the first mover for DTH in the country, also noted a trend in other emerging more than a dozen operators. Clark he cited the combination of strengths pay-TV markets of hybrid solutions said both satellite and fiber will be from Beximco Communication’s parent such as DTH combined with cable, or needed to improve connectivity for companies as a key enabler. “Beximco DTH combined with Digital Terrestrial a continent with such scale as Africa. Holdings limited is one of the largest Television (DTT) gaining popularity as “As an African, it is important that we conglomerates in Bangladesh and has ways to attract more subscribers and distinguish between rural Europe and been running successfully for years. extend coverage. Of RealVU’s 105 rural Africa. The sheer vastness of the Having a strong local backbone gives channels, five are currently offered in continent means that many people us enough exposure to experiment High Definition (HD). Lapitskiy said in extreme rural areas will not have being a start up in Bangladesh. Beximco Communications plans to access to FTTH and will always rely On the other hand, GS Group is an bring HD sound and picture quality to on alternative technologies to ensure international investment and industry all of Bangladesh by the end of next that they are connected,” she said. “I holding company operating in TV year, following this year’s completion believe that satellite has a big role to broadcasting projects implementation of nationwide service. play and will be an important enabler and management across the globe. for many communities.” Historically GS Group acts as a provider and she said satellite and FTTH tend to technological integrator for RealVU. By FTTH Council Africa Talks take siloed approaches to the market, possessing significant expertise in the Fiber and Satellite but she believes that as the demand field of implementing and managing There is a major push to extend internet for bandwidth increases, there will national digital TV projects, GS Group access and general connectivity across be more collaboration. The number helps us have the best service,” he Africa which, being the second largest one obstacle to FTTH remains the said. RealVU started in April with 105 continent in size and population, is a challenge of physically deploying channels, of which Lapitskiy said 26 big task. While satellite companies the infrastructure. Clark said that, in are Bangladeshi, constituting almost have many current and existing some countries, getting access to 99 percent of the local channels. The efforts to provide connectivity, fiber legal right of way to build fiber is a rest are neighboring and international growth is advancing as well. Fiber- slow and cumbersome process that channels. Beximco Communications is to-the-Home (FTTH) constitutes a though improving, still slows down broadcasting RealVU on ABS’ satellite small but growing percentage of fixed infrastructure deployments. “Education ABS 2 at 75 degrees east. Lapitskiy broadband connections. According remains critical,” she explained. described having high power C- and to the FTTH Council Africa, Roland “We need strong engagement with Ku-band beams as optimal for South Montagne, principal analyst and governments and regulators to ensure East Asia’s connectivity requirements. director of market development at that they understand the importance For ABS, Bangladesh is a market with Idate, pegs the global number of of fiber optic infrastructure and remove significant potential. Raymond Chow, Fiber-to-the-Home/Business (FTTH/B) barriers to entry. We would also like to ABS managing director for Asia and at 232.8 million subscribers at the engage more investors to stimulate deputy COO, told Via Satellite that end of 2015. Juanita Clark, chief the market. Africa has so many the operator would look to capture executive of FTTH Council Africa, told opportunities and possibilities and business there with ABS 2, along Via Satellite that the developing world we want to take these to people that with the upcoming ABS 2A, which is lags behind in FTTH deployments are looking to invest elsewhere.” Clark currently scheduled to launch June today, but there is a groundswell of listed Kenya and South Africa as the 14 aboard a SpaceX Falcon 9 rocket. efforts to connect more people, which frontrunners for FTTH, with South Africa “Bangladesh has a population of over may soon boost these numbers. “As getting speeds of 100Mbps. Namibia 150 million and a TV household of more countries appreciate the impact and Mauritius have also announced about 35 million. Cable TV penetration that effective broadband can have FTTH plans. “To our knowledge there is around 20 percent of the market and on their economies, they are making are small deployments in parts of the is mainly concentrated in major cities. great attempts to ensure that their largest cities in Algeria, Egypt, Kenya, The majority is still in analog. Therefore, countries are not left behind. Today, Mauritius, Morocco, Nigeria, and there is a huge growth potential for almost every country in the world has South Africa, and not very much at digital TV distribution. DTH platforms a broadband strategy, and these are all elsewhere,” Philip Bates, principal will speed up the digitization of the all very ambitious strategies that will at Analysys Mason, told Via Satellite.

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“The fundamental issue is lack of of connectivity solutions that prove to Thet said: ‘Over the past few years, affordability, which means that the reach the most people. Furthermore Myanmar has made significant strides take-up in covered area tends to the debate between one technology in expanding access to faster and be low and turn-over of customers over the other is more of an internal more reliable broadband connectivity (churn) is high. Other major cities industry discussion, she said, rather throughout the country. With the help have metro networks, which aim to than among consumers. End users of Intelsat’s Globalised Network, we connect up mobile base stations, large are more inclined to view the different will leverage their satellite solutions enterprises and gated communities of technologies as complementary based to extend 2G and 3G communications high-end homes, but there’s no mass on purpose and place. “As a society we services beyond urban centers market deployment. The fundamental will need to ensure that we provide all and ensure that all of our citizens issue is that mobile broadband is people with connectivity. In Africa one have access to higher bandwidth, much cheaper to deploy, particularly is struck by such great need in so many superior quality and more affordable when take-up is low and churn is areas, and if I insisted that each person mobile broadband connectivity.’ In a high.” According to Bates, FTTH in Africa must have FTTH connectivity related development, KBZ Gateway, represents only 4 to 5 percent of these that makes me ‘umphuphe’ (Zulu word a subsidiary of Myanmar-based connections in Sub-Saharan Africa, meaning fool). Consider the hundreds KBZ Group, has partnered with Asia along with Latin America, compared of thousands of Maasai people that Satellite Telecommunications (AsiaSat) to nearly 60 percent of those in the are nomadic. See, each area is different and Hughes Network Systems to emerging Asia Pacific, 8 percent in and has different needs; these needs provide high speed broadband Western Europe and 12 percent in require unique solutions tailor-made services for government, business and North America. Bates said that the to the region it is supposed to serve. consumer customers, the Myanmar business case for FTTH improves if you There is no one size fits all. However, Times reports. Under the deal, Hughes can use aerial deployment, but that we need clear and open dialogue will build KBZ’s new earth station in in Africa the duct networks are poor about what is best in a particular Bago and install antennas and other or non-existent. Therefore, it is only area. This dialogue needs to include elements of its terrestrial network, economic to build in areas where there governments and regulators as we whilst AsiaSat will provide satellite is a high concentration of enterprise come together find solutions for all connectivity. KBZ claims that the new networks. When FTTH is present, Bates our people,” Clark said. system will be capable of providing does not expect satellite will be used download speeds of up to 100Mbps, in the same area because once the with the rate set to increase in 2017, high fixed cost is overcome, there is Algerian DTV Channel when a third AsiaSat orbiter enters typically a low variable cost. However, Launches on Arabsat’s service. Finally, Southeastasianet he said the introduction of fiber Badr 5 Satellite Technologies Myanmar (Seanet) could create new opportunities for has also signed a pact with Hughes, satellite. “There is potential for fiber Arabsat and Algerian channel DTV have enlisting the company to provide with satellite for last mile and satellite signed a contract today to broadcast its Jupiter System satellite solution. broadband in rural areas. I could see the DTV channel over the Maghreb Seanet plans to use the solution to more of that happening in the future. geographic region and Northwest provide VSAT broadband services to Clearly a lot has happened on the Africa on the Badr 5 satellite. DTV businesses nationwide, particularly international connectivity side in the is a general entertainment channel in underserved areas. ‘There here last five years,” he said. “Even inland that includes many prominent West is a large pool of pent-up demand countries are getting fiber from the Algerian editors. Programming will for internet service in Myanmar’s coast. But typically those networks are also include entertainment, music, business community,’ Chairman Pyone targeting enterprises — hotels, a few soap operas, and Arab and Western Maung Maung explained, adding: high-end data communities — but not films for all age groups. The channel ‘The Hughes Jupiter System gives us a the majority of homes. [Those] still will will be viewable to viewers in the powerful tool for tapping into it with be wireless last mile because copper Maghreb and Northwest African cost-effective plans that deliver high networks are poor or nonexistent.” countries around the clock speeds and bandwidth allowances. Bates added that satellite can be used Partnering with Hughes also gives us to extend the coverage of broadband Myanmar boosts sat- access to a broad and deep source of networks in areas where the customer satellite networking experience that density is too low to support a fixed ellite connectivity with will prove invaluable in our expansion roll-out, or potentially to test the Hughes, AsiaSat, Intelsat throughout Myanmar.’ market for future fixed deployments. deals Satellite also has a role in backhaul, Myanmar’s Ministry of Transport and though he said this is more likely to be DISA Awards $73 Million Communications (MoTC) has signed mobile backhaul than fixed backhaul. an agreement with Intelsat to use two In-Flight Connectivity Clark said there is huge demand for of its satellites to aid the expansion of Contract to ViaSat high speed internet, but connectivity wireless networks. Under the terms of and affordability are critically linked. The United States Defense Information the deal, the MoTC will use C-band In Africa the cost to communicate is Systems Agency (DISA) has awarded satellite services on Intelsat 902 and still very high, she said. Clark notes ViaSat a non-competitive, firm-fixed- Ku-band services on Intelsat 906 for that fiber costs have come down price contract to provide senior leaders VSAT and cellular backhaul services. dramatically in the past few years, and and their support staff with Ku-band Commenting on the pact, permanent she expects they will continue to drop, and Ka-band communications using secretary at the MoTC Khin Maung but ultimately believes it will be a mix the company’s subscription service

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SAMENA TRENDS JUNE-JULY 2016 while travelling via aircraft. Fiscal iDirect, SpeedCast LTE 108.2 degrees East where it has joined 2016 operations and maintenance SES-7 and will replace NSS-11. SES- funding is approximately $33 million, Cellular Backhaul Test 9, built by Boeing Satellite Systems and the total cumulative face value of Tops 400 Mbps International, is the largest SES satellite the contract is roughly $73.2 million. VT iDirect and SpeedCast International to serve the Asia-Pacific region, with 57 According to DISA, performance will have demonstrated GTP/LTE traffic high-power Ku-band transponders – be primarily at the ViaSat Carlsbad being transmitted at speeds above equivalent to 81x36MHz transponders, location, Denver Networks Operation 350Mbps on the downstream and out of which 53 are incremental. The Center (NOC), and government care new spacecraft will provide significant centers. The period of performance is expansion capacity to serve the fast- June 1, 2016, through May 31, 2017, growing video and mobility sectors with two six-month option periods. across Northeast Asia, South Asia, The Defense Information Technology India, Indonesia and the Philippines. Contracting Organization, Scott Air The satellite will also be capable of Force Base, Ill., is the contracting supporting a range of Enterprise activity. DISA said the U.S. government and Government applications. SES- posted the synopsis/notice of intent 9 has already secured business in on the federal business opportunities advance of the satellite’s entry in website, and while proposals were commercial service. SES will co- solicited, only one proposal was market SES-9 capacity with Indonesia’s received. largest satellite telecommunications 90Mbps on the upstream in lab tests services company, PT Telekomunikasi with a single iDirect SatHaul terminal. Indonesia, to the Indonesian market. Lockheed Martin Com- This proof-of-concept demonstrates In addition, Sky Cable, the largest pletes Critical Design Re- how satellite can help Mobile Network cable television provider in the view of Arabsat 6A and Operators (MNOs) extend the reach Philippines, signed a multi-year, Hellas-Sat 4/SaudiGeo- of their services. Cellular backhaul multi-transponder agreement for enables MNOs to scale their networks broadcasting direct-to-home (DTH) Sat 1 to cover larger geographic regions. satellite TV channels. This week SES Lockheed Martin, Arabsat and King With test results hitting 350Mbps on also partnered with Gilat Satellite Abdulaziz City for Science and the downstream, iDirect’s Digital Video Networks Ltd., a worldwide leader in Technology (KACST) have successfully Broadcast-Satellite Second Generation satellite networking technology, to completed a comprehensive X (DVB-S2X) technology provides launch the SES Enterprise+ Hybrid technical review of the commercial a proof-of-concept that essentially Broadband in Asia. This innovative, communications satellites Arabsat doubles previous levels of speed hybrid broadband solution will use 6A and Hellas-Sat 4/SaudiGeoSat 1. achieved in the market, according capacity from SES-9. The spacecraft To achieve this milestone, Lockheed to the company. “After witnessing was successfully launched by a Martin completed the Critical Design a new throughput record for GTP/ SpaceX Falcon 9 rocket from the Cape Review (CDR) of the satellites and LTE traffic being transmitted over a Canaveral Air Force Station, Florida each subsystem, demonstrating the single iDirect terminal, we are excited on 4 March 2016. Since then, the satellites meet technical specifications about the benefits it can provide to satellite has used both its chemical and are ready for the next phase our customers in terms of speed and and electric propulsion systems to of production. With CDR complete efficiency. We continue to see growing reach its assigned geostationary orbit. and manufacturing underway, the demand from mobile operators and The satellite’s platform and payload Lockheed Martin team will now such technological advancements have since undergone extensive in- move further into the production will be key to ensure our continuous orbit tests. “SES-9 is key to expanding process. The two satellites will provide success in meeting operators’ needs,” our capabilities for DTH video television, Internet, telephone and said Pierre-Jean Beylier, CEO of broadcasting and services in Northeast secure communications to customers SpeedCast. Asia, South Asia and Indonesia,” said in the Middle East, Africa and Europe. Martin Halliwell, Chief Technology Arabsat 6A will be located at 30.5 Officer, SES. “Equipped with dedicated degrees east and Hellas-Sat 4/ SES-9 ready to enter mobility beams, SES-9 is also well SaudiGeoSat 1 will be located at 39 commercial service positioned to serve the fast-growing maritime and aeronautical sectors. degrees east. Both spacecraft will be SES’s largest satellite over Asia- The improved performance of the designed for a 15-year service life, Pacific, adding a total payload of 81 Falcon 9 launcher shortened the orbit and will be manufactured in Denver, 36MHz transponder equivalents of raising phase and, in combination with Colorado. Lockheed Martin is building which 53 in Ku-band are incremental, the use of the highly efficient SES-9 the satellites based on the company’s expanding SES’s scale in global video electric propulsion system, resulted modernized A2100 platform. The and mobility verticals with important in remaining fuel on board to support company has five modernized A2100 anchor customers already secured. services well beyond its 15 years satellites currently under contract, SES S.A. announced today that its design life. I congratulate the Boeing, which are designed for a host of new SES-9 spacecraft is entering SpaceX and SES teams, who together missions and customers around the commercial service. SES-9 has have done an excellent job.” globe. successfully completed its testing and reached its orbital position at around

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