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Vol: 07 Issue: 06ABC CertifiedPublisher & Chief EditorBureau Chiefs:Khalid AtharDubai: Khawar Nehalwww.teletimesinternational.comThe only tri-regional magazine focused towardsthe ICT & Telecom sectorsof The Middle East, Asia and AfricaE-mail: info@teletimesinternational.com7th year of publicationRecipient of“International Arch of Europe Award for Quality”and“Teradata ICT Execellence Award for Media”ADVISORY BOARDDr. Alaa Bader HindawiDr. Zafar Khan MBE Iqtidar ZaidiProf. Nasreen Khalid Haroon RashidMedia Partner to:Executive EditorRaheela AnjumAssociate EditorsIzhar AhmadQutubuddinAssistant EditorsNasir M. KharlGulraiz KhalidSub EditorsMuhammad Awais HanifAslam MumtazArt EditorKhurram ShahzadLegal AdvisorHashmat HabibPrinter: Khursheed Printers (Pvt) Ltd.International OfficeBuilding No, 211,Street Al-Inshirah,Madinat Al Sultan Qaboos,Sultanate of Oman,Muscat,Tel: (+968) 22043911,Asia OfficesIslamabad# 6, St - 39, G-6/2, Islamabad, PakistanTel: (+92) 51 2874225, 2279830,Fax: (+92) 51 2272405Cell: (+92) 300 9559879London: Moazzam ShahidIstanbul: Zümrüt TanriövenJeddah: Akram AsadCorrespondents:Abu Dhabi: Bashir AnjumParis: Aslam AnsariBrussels: Nadeem AhmedTokyo: Tanveer QureshiMelborne: Javeria HashmatCasablanca: Dr. Khadija ArabanyKarachi: Syed Babar AliLahore: Azeezur RehmanKarachiQutubuddin63/1, 6th Commercial Street,Phase IV, Defence Housing Authority Karachi.Cell.(+92) 345 2215050Lahore1st Floor, 43-K,Commercial Area, DHA, Lahore Cantt. PakistanTel: (+92) 42 35709964, Cell: (+92) 300 8106199Regional OfficesKingdom of Saudi ArabiaKing Fahad Road, opposite Kingdom Souqe,RiyadhTel: (+966) 12 153200, Fax: (+966) 14606463Sole Distributor for GCC countries:Malik News Agency, P.O. Box 5449, Dubai.US$ AED PKR € GBPPrice per copy 8 25 300 7 5One year subscription 80 250 3000 70 50Egypt5, Tanta St. Al Mohandsein, GizaCell: (+20) 12 2175185UAEBuilding T1, International City,P.O.Box 242512, Dubai.Cell: (+971) 0556396386U.K.235a, Old Brompton Road. London SW5 0EATel: (+44) 07831418072France7 Rue Ernest Roche, Escalier-C, 75017 ParisTel: (+33) 698990821A PROJECT OF PPA PUBLICATIONS


In this edition19Research & Analyses2237394757Special Reports0813Let the shop come to you - mCommerce becomes a businessArthur D. LittleAt home in the cloudBahjat El-DarwicheThe hidden costs of cloudDave PauldingReinventing TVHadi Raad and Mahmoud MakkiEffect of Spectrum Management on 3G TechnologyMuhammad Amir MalikGlobal IT Report <strong>2012</strong> –Living in a Hyperconneted WorldAnalysis of Asia, Africa and Middle East regionsNaveed Ul HaqCommunicAsia, EnterpriseIT andBroadcastAsia reinforce the convergence connection281926Building sustainable Internet business model -SAMENA and ETNO organized seminar in Hong KongRola OsseiranPrincess Sumaya bint El Hassan inauguratedArab Advisors Group 9th Convergence Summit in AmmanLeen Hammadand much more ....56<strong>June</strong> <strong>2012</strong>www.teletimesinternational.com05


Letter to readersKhalid AtharChief EditorDear Reader,Welcome to the <strong>June</strong> edition of <strong>Teletimes</strong>International.In less than thirty years of its inception, theInternet has now become an indispensablereality of economic growth, social renewaland cultural enrichment. It is not an easy taskto calculate its value, however the presenteconomic models such as contribution to GDPare available to somehow predict and quantifythe Web’s impact on economical growth. In ourlast edition, we presented a research reporton transformation of economical growth overthe Internet. The amazing truth behind thistransformation is that it is not limited to thedeveloped economies only and as a matterof fact Internet has brought almost sameeconomical impact on developing and underdevelopedcountries as well. For example,in countries like Indonesia, the Internetcontributes 123 trillion IDR to the Indonesianeconomy today. In Vietnam, it is contributingup to 1% of GDP, for Malaysia the figure goesto 4.1% of GDP, higher than the US, Germany,and China. All these statistics surely reveal apromising future of economical prosperityfor economies that are going to include theInternet adoption, usage and services amongtheir top priorities.Over the last 4 years, <strong>Teletimes</strong> Internationalhas enjoyed a remarkable working relationshipwith Saudi Telecom Company (STC) underthe kind endorsement of its departing GroupCEO, Eng. Saud Al Daweesh. We at <strong>Teletimes</strong>would like to extend our recognition to hiswork while presenting our best wishes to himin his future endeavors. STC has announced Dr.Khaled bin Adbulaziz Al Ghuniem as the newGroup CEO. Dr. Khaled is considered as one ofthe most qualified and competent leaders forhis numerous achievements and subsequentrole at various senior level positions at STC.He holds both Masters and Ph.D degrees inElectrical and Computer Sciences from CarnegieMellon University, USA. <strong>Teletimes</strong> Internationalwould like to submit its salutation to the newGroup CEO as we look forward to continue andstrengthen our engagements with STC.This month we are presenting one exclusiveinterview featuring Mr. Walid Irshaid, Presidentand Group Chief Executive Officer, PTCL. Theinterview brings insight of his thoughts over theprobable introduction of 3G services in Pakistan.An important regional event heading itsway during later part of this month isCommunicAsia<strong>2012</strong> to be held on 19-22 <strong>June</strong>at Singapore. <strong>Teletimes</strong> International is themedia partner of the event over the past 2years and will be attending this year’s eventas well. This edition provides a pre-eventbackground details and major highlights of theevent. We will also include a post event reportfor CommunicAsia<strong>2012</strong> highlighting the mainsessions in our next edition. The issue alsoencompasses two post-event reports featuringthe 9th Arab Advisors Group ConvergenceSummit held in Amman (Jordan) and the annualSAMENA Chairmen and CEO meeting jointlyorganized by SAMENA and ETNO at Hong Kong.This event was sponsored by HKT and PCCWGlobal.This edition also features an exclusive articleon Cloud Computing written for <strong>Teletimes</strong>International by Mr. Viktor Kovacs (Founder ofCE On-Demand, UK) and Ms. Sophie Papasavva(Partner at EM Finance Consulting, Hungary).We are also publishing articles on mCommerceby Arthur D Little, Fiber-based broadbandby Mr. Hartwig Tauber, Efforts of spectrummanagement on 3G technology byMr. Muhammad Amir Malik and summaryreport on Global IT report <strong>2012</strong> by Mr. NaveedUl Haq. Readers will also enjoy latest newsand reports from SingTel, du, Thuraya,Huawei, Comptel, DragonWave, GlassHousetechnologies, Booz&Co, ZTE, Qtel, MTN Ghana,Vodafone, PTCL, Ericsson, Bharti Airtel, Gartnerand Telenor. As a regular feature, the editionalso present "Teletoons" and upcoming eventscalendar for Global ICT and Telecom events.We always look forward and encourage yourcomments and suggestions to assist us inbringing more improvements to <strong>Teletimes</strong>International.Enjoy your reading.<strong>June</strong> <strong>2012</strong>www.teletimesinternational.com07


Naveed Ul HaqGlobal IT Report <strong>2012</strong> –Living in a Hyperconneted WorldAnalysis of Asia, Africa and Middle East regionsOver the past one decade,The Global InformationTechnology Report seriesis known as the mostcomprehensive and respectedinternational assessmentof the preparedness ofeconomies to leverage thenetworked economy. TheGlobal Information TechnologyReport <strong>2012</strong> released byWorld Economic Forum incollaboration with INSEADmeasures the extent to which142 economies take advantageof ICT and other newtechnologies to increase theirgrowth and well-being.The report under the theme“Living in a HyperconnectedWorld” features expertcontributions that explore thecauses and consequences ofliving in an environment wherethe Internet is accessible andimmediate, where people andbusinesses can communicateinstantly, and where machinesare interconnected.According to the reportanalysis, the world has becomeincreasingly hyperconnected.We live in an environmentwhere the Internet andits associated services areaccessible and immediate,where people and businessescan communicate witheach other instantly, andwhere machines are equallyinterconnected with eachother. This hyperconnectivity isdeeply redefining relationshipsbetween individuals,consumers and enterprises,and citizens and governments;it is introducing newopportunities but also newchallenges and risks in termsof individual rights and privacy,security, cybercrime, the flowof personal data, and accessto information. As a result,our economies and societiesare undergoing fundamentaltransformations.Countries everywhere—fromEurope, Africa, and Asia tothe United States and China—have been unveiling theirinnovative strategies for theICT industry. These strategiesare intended to make theindustry an “enabler” of futureeconomic growth. ConvergedICT technologies will bringdramatic changes to ourlives. For individuals, smartdevices and cloud serviceswill have far-reaching effectsand become an essentialpart of daily life and work.Ubiquitous super-broadbandwill make almost everythingfaster and better whiledelivering an improved userexperience. Subscribers willnot have to wait to stream ordownload videos, pictures,or other data files from thenetwork. The benefits willalso make people’s livesmuch more convenient as ICTtechnologies are applied tobuilding e-government modelsand improving e-commerce,e-learning, and online medicalservices, as well as other webbasedintelligent services.The report also features adetail region-wise analysisdepicting the state ofvarious economies withrespect to Information andCommunication Technologies.This summary brings the detailreport analysis for Asia, MiddleEast and Africa regions.Asia And The PacificThe report states Asia andthe Pacific region as a hometo some of the world’swealthiest, most innovative,and most digitized nations aswell as to some of its poorest,least-connected countries.Taiwan and China are rankedat 11th place for Global ITranking. In the NetworkReadiness Index (NRI),Taiwan, China ranks 3rd in thegovernment usage pillar, 7thin the economic impacts pillar,and 2nd in the social impactspillar. Yet, unlike Singaporeand Hong Kong, which featureprominently in this category,Taiwan, China suffers fromweaknesses in its political andregulatory framework. Forthe Republic of Korea whichis ranked 12th globally, theregulatory framework alsorepresents the main area ofconcern. In particular, Koreashows the way in terms ofmobile broadband access,with close to 80 subscriptionsper 100 inhabit-ants. At home,a staggering 97 percent ofhouseholds have access tothe Internet. Furthermore,Korea leads the governmentusage and social impactspillars. Hong Kong boaststhe world’s largest Internetbandwidth per user (780kilobytes per second). NewZealand offers one of the mostconducive environments forthe successful developmentand leveraging of ICT.Its public institutions areparticularly well functioningand efficient. One of the worldmost prominent innovationpowerhouses, Japan ranksonly 18th, owing to a numberof important shortcomings inthe environment sub-index ofthe NRI, including red tape.The biggest competitiveadvantage of Japan is, withoutcontest, its innovative andsophisticated business sector.Technology and innovation08 www.teletimesinternational.com<strong>June</strong> <strong>2012</strong>


have greatly contributedto making Japan one of themost productive economiesin the world. In 29th position,Malaysia is the top-rankedcountry from the DevelopingAsia region. Trying to emulatethe success of Korea and otherAsian Tigers, the Malaysiangovernment has been pursuinga long-term plan with theambition of achieving highincomestatus by the end ofthe decade, with ICT playinga critical role. India at 69thplace overall delivers a verymixed performance, withencouraging results in a fewareas and a lot of room forimprovement elsewhere,notably in the political andregulatory environmentand the business andinnovation environment.One of the weakest aspectsof India’s performance liesin its low penetration ofICT. Coming in at a low 77thrank, Thailand presents anumber of shortcomings inall dimensions of the NRI.Thailand is followed closelyby three fellow Associationof Southeast Asian Nation(ASEAN) members: Indonesiaat 80th position, Vietnamat 83rd, and the Philippinesat 86th. The performancesof these four countries,which together are home toalmost 500 million people,are remarkably similar acrossthe different components ofthe Index, and disappointing,too. Some differences existin the environment sub-indexand to some extent thereadiness sub-index. When itcomes to ICT usage, all fourcountries display very limiteduptake among the population,especially Indonesia wherethe Internet, for instance, isused by less than 10 percentof the population. Businessesare generally prompter atadopting technology inIndonesia, but even thenfigures are low by internationalstandards. As for the efforts ofthe respective governments inusing and promoting ICT, theyremain very timid, with theexception of Vietnam.Sub-Saharan AfricaThe report states that thelevel of ICT readiness in sub-Saharan Africa is still verylow, with most countriesevidencing strong lags inconnectivity because of aninsufficient developmentof ICT infrastructure, whichremains too costly. Low levelsof skills that do not allow foran efficient use of the availabletechnology add to thechallenges these countriesface if they are to increaseICT uptake. Moreover, mostcountries still suffer frompoor framework conditionsfor business activity that,coupled with the aboveexplainedweaknesses, resultin poor economic impactsthat hinder the much-neededtransformation of theregion toward less resourceextraction–oriented activitiesand higher- value-addedproduction. Mauritius, in 53rdposition, leads the regionalclassification and is the onlyeconomy in the top half ofglobal rankings. By meansof a process decisively ledby the government that hasidentified ICT developmentas one of its three pillarsfor economic development,the country has managed tocreate a fairly sophisticatedenabling environmentfor ICT development,,with a stable political andregulatory frameworkand fairly good conditionsfor entrepreneurship andinnovation, although therate of tertiary educationenrollment is low. SouthAfrica, at 72nd place, is notyet leveraging the potentialbenefits associated with ICT.Important shortcomings interms of basic skills availabilityin large segmentsof the population and thehigh costs of accessing theinsufficiently developedICT infrastructure resultin poor rates of ICT usage,despite efforts on the partof the business communityto use ICT and integrate itin a broader, firm- basedinnovation system. As a result,the economic impacts accruingfrom ICT are patchy and thesocial impacts disappointing.Upgrading the overall skillsat all layers of society andincreasing efforts to buildaffordable infrastructure forall would allow the country toincrease its ICT readiness anduptake and, in turn, spreadits impacts across society.Rwanda, in 82nd position,evidences important problemsof connectivity associatedwith a poor deployment of anexpensive ICT infrastructureand very low levels of basicskills that hinder the capacityof the population to makeeffective use of ICT. As a result,levels of ICT usage are verylow, especially for individualsand businesses. Similar toRwanda, Kenya and Ghana,in 93rd and 97th position,respectively, suffer from lowlevels of ICT readiness due tothe underdevelopment of ICTinfra-structure and the lack ofa widespread skill base thatwould enable society to makean optimal use of technology.In the case of Kenya, as forRwanda, in addition the cost ofaccessing these technologiesis still high for a large shareof the population. Othercountries in East Africa, suchas Zambia, Uganda, andTanzania—in 109th, 110th, and123rd position, respectively—depict a similar profile andface similar challenges toboosting the developmentand uptake of ICT. Finally, alast tier of countries in Westand South Africa, includingZimbabwe, Cameroon,Lesotho, Madagascar, BurkinaFaso, Swaziland, Burundi,Chad, Mauritania, Angola,and Yemen—ranging from124th to 141st position sufferfrom severe weaknesses inall components of our Index,from poor connectivity causedby expensive and poor-qualityICT infrastructure to very lowlevels of basic skills and weakframework conditions fortechnology-rich activities toflourish. Not surprisingly, thesecountries also present theweakest results in terms of ICTimpacts.Middle East And North AfricaThe analysis of Global ITreport <strong>2012</strong> depict that thereare large differences in ICTuse and impacts acrossthis region, with countriesgrouping around three subregions:Israel and the GulfCooperation Council states;the Levantine nations; and,finally, the countries in NorthAfrica. While Israel and most ofthe Gulf Cooperation Councilstates seem to have embracedICT uptake and have startedto gain from the associatedbenefits, countries in the lattertwo groups still suffer fromimportant weaknesses thathinder their capacity to fullyleverage the use of ICT toincrease competitiveness andaccelerate the positive socialimpacts that are associatedwith technology. Israel, in20th position in the rankings,epitomizes the success of an<strong>June</strong> <strong>2012</strong>www.teletimesinternational.com09


economy that—despite notcounting on vast endowmentsof natural resources—hassucceed in securing a high levelof development thanks to ICTand innovation. Leading theArab World, Bahrain, in 27thplace, as in the case of Israel,creates a fairly sophisticatedenabling environmentfor entrepreneurship andinnovation that, coupledwith a good ICT readinessin terms of infrastructure,affordability, and overall skills,has brought the country tothis good position. However,un-like Israel, this processhas been led mainly by astrong commitment fromthe government that hasnot yet been followed bythe rest of the agents withthe same intensity, notablythe business community.As a result, the positiveeconomic impacts reflectinghigher rates of innovationand the shift toward moreknowledge- based activitieshave not yet taken off. Effortsto integrate ICT in a moregeneral innovation ecosystemat the corporate level shouldhelp to boost the desiredeconomic impacts of ICT andtechnology more broadly.Closely following Bahrain,Qatar appears in 28th position.As in the case of Bahrain, theemirate has managed to createone of the best environmentsfor entrepreneurship andinnovation worldwide.This, coupled with thegovernment’s strongcommitment to boostingICT-related infrastructure andspilling over the effects acrossthe economy and society,has allowed the countryto rank in the top quarterof our sample. On a lesspositive note, the low levelsof competition existing in theICT and telecommunicationssectors are affecting theoverall affordability ofaccessing ICT, especially interms of broadband, hinderinga wider diffusion and usageof ICT across the differentagents in the country, suchas broadband Internetsubscriptions. The UnitedArab Emirates, at 30th place,presents a profile similar toneighboring Qatar’s. Withthe government’s strongcommitment to develop andprioritize ICT as one of thekey engines to diversify itsstill oil dependent economy,the country has managed todevelop a good ICT-relatedinfrastructure and a favorableframework for business andinnovation that result infairly good innovation ratesin the form of both newproducts and services andnew organizational models.Notwithstanding these efforts,the country would benefitfurther from expanding itsoverall skill base, especiallyeradicating adult illiteracy andincreasing tertiary educationparticipation. As in the case ofQatar, liberalizing the ICT andtelecommunications marketswould help reduce the highcosts of accessing the Internet(94th). Saudi Arabia, in 34thplace, has equally recognizedthe importance of ICT as akey driver of its economictransformation. A committedand strong governmentledeffort to prioritize ICTcoupled with a very favorableenvironment for businessdevelopment has yieldedfairly good results to get thecountry ready for the ICTrevolution, especially in termsof infrastructure development.However, as in the case ofthe United Arab Emirates andQatar, boosting higher levelsof com-petition to reducethe costs of communications,improving the skill base byreducing adult illiteracy, andincreasing tertiary educationparticipation should bethe immediate priorities tofurther increase ICT uptakeby all agents in the country.Kuwait, in 62nd position, is thelaggard in the region in termsof embracing ICT. Despitea fairly good ICT-relatedinfrastructure development,the high costs of accessing itand the population’s relativelylow level of skills are affectingthe ICT readiness of thecountry. As a result, Kuwaitdepicts fairly poor rates of ICTusage that, coupled with a lessbusiness friendly environmentfor entrepreneurship thanother Gulf CooperationCouncil states, result in lowlevels of ICT impacts. Jordan,in 47th position, leads theICT race by far in the groupof Levantine states. Despitethe need to improve its ICTinfrastructure, especially interms of getting access to awider international Internetband-width, the country—ledby a strong commitment of thegovernment—has managedto liberalize the marketsand provide affordableaccess to ICT and improveits business and innovationenvironment, although someweaknesses remain. Lebanonand Syria, in 95th and 125thposition, respectively, onthe other hand, still sufferfrom important weaknessesin terms of ICT developmentthat hinder their capacity totake full advantage of thebenefits accruing from thedeployment and use of theseand other technologies.Tunisia, ranked in 50th place,leads the rankings in NorthAfrica. ICT development inthe country has been led bya strong commitment of thegovernment to boost ICTuptake. This commitment,coupled with a fairly goodeducational performance—despite a high rate of adultilliteracy —allows the countryto position itself ahead itsNorth African neighbors.Improving affordableaccess to a more robust ICTinfrastructure and digitalcontent would help improvethe still-low uptake of ICT byindividuals and businesses.ICT development in Egypthas been traditionally led bythe government that in thepast years has made a strongeffort to make ICT accessaffordable and enlarge thenumber of services it offersonline. However, despite theseefforts, neither the individualsnor especially the businesscommunity have managedto match this effort, and as aresult the country is placedat 79th place. Upgradingthe ICT infra-structure,developing more digitalcontent in Arabic, improvingthe general environmentfor entrepreneurship andinnovation, and enhancing theavail-able skill base shouldbe the four priorities for thecountry to encourage higherand more homogeneous usagerates and achieve increasedpositive impacts.The rapid changes that the ICTindustry has experienced inthe last decade have broughtabout deep transformations inthe way our economic activityand society are organized.We live in a hyperconnectedworld where the sense ofimmediateness and constantaccessibility is redefining therelationships between andacross individuals, businesses,and governments.10 www.teletimesinternational.com<strong>June</strong> <strong>2012</strong>


Market analysts concur that theenormous potential for SaaShas yet to be realised in the SMEsegment. Often SMEs may notbe aware of the potential andvalue that cloud services couldbring to their business yet itis SMEs that are most likely tovalue a trusted advisor to steerthem through the hype andinto the cloud. Most telecomoperators have a significantSME subscriber base, which hasincreasingly been demandingmore advanced IT solutions. Itis obvious therefore, that thegreatest strategic fit for telecomoperators is the ability to offerSMEs communications and collaborationsolutions from thecloud.Many companies across theemerged and the emergingworld have developed welldefinedand clearly expressedcloud strategies. Several ofthese are telecom operators orsystems integrators and othersare large enterprises with anapparent view as to the benefitsof moving IT to the cloud.However, whereas many mayhave a clear strategy, few havebeen successful in deployingtheir cloud vision to the market.Fewer still have effectivelycaptured a significant portionof cloud revenues that marketanalysts tell us on a daily basisare there to be made.In a recently published report,Informa Telecom & Mediastates that using cloud services,telecom operators havea multi-billion dollar opportunityto change the dynamicsof ICT wallet share. However,whilst US$14 billion was spentby telecom operators on cloudpursuits in 2011, only a handfulgenerate more than 5% ofrevenues from cloud services.The report recommends thatthrough strategic partnershipwith expert cloud enablers whocan offer a lifecycle of servicesto them, telecoms operators canabsolutely expedite their successin the cloud.3. Partnerships - The BusinessRationaleTelecom operators make idealcandidates to successfully deploya cloud provider businessmodel; this is due to:● Having direct access to andrelationship with end users;● Owning extensive broadbandnetwork infrastructure;● Consistently experiencingloss of voice revenues;● In the mobile context, tryingto find ways of pushingsubscribers towards smartphones;● Seeking to augment datarevenues with VAS;● Having significant sales andmarketing resources; and● Having dedicated channels tolaunch VAS to their subscribers.The above imply that each andevery telecom operator hasthe basic elements of becominga successful cloud provideroffering value added services, tohelp keep ‘stickier’ subscribersand stemming revenue declines.However, several costs (both interms of money and time) havebeen associated with deployinga cloud strategy, thus impedingthe wide implementation by prospectivetelco cloud providers.Some of these include:● The capital investment associatedwith building theplatform;● The cost of platform deploymentversus short termuptake of service;● The costs associated withlaunching cloud services tomarket in a timely manner;● An inability to achievevolumes required to driveeconomies of scale;● The time of platform deployment(on average 9 to 18months) versus services timeto market; and● The focus on technologydeployment rather than timeto market.On average, a hosted platformprovisioning for 10,000 cloudusers implemented in-houseby a telecoms operator couldbear a capital investment of€2.25 million. In addition, thetelecoms operator would haveoverheads to facilitate theprovision of services as theirown IT resources are geared forinternal service delivery, not forexternal subscribers. The servicedelivery would require additionalheadcount that is often acomplete replica of their internalIT messaging staff. Further goto-marketchallenges includea primary focus on technologyversus product developmentand marketing, a long timeto market and, as often seen,extremely low success withrespect to market penetration.Partnerships with cloud serviceenablers can address all of thesechallenges. Such cloud expertsare able to:● Use economies of scale andmulti-tenancy to significantlyreduce infrastructure coststo a minimum;● Deploy IT solutions extremelyquickly and manage,maintain, patch and upgradesoftware remotely;● Successfully execute OSSand BSS integration for anynumber of cloud services in aflexible manner;● Easily and quickly createcustomer environments withminimal disruption to thetelco’s operations;● Technically support on a 24/7basis, thus reducing the burdenon the telco’s in-house ITstaff;● Offer experienced anddedicated channel marketingresources that offer specificknowledge and expertise inmarketing software applications;and● Offer the flexibility of managed,bespoke and localsubscriptions.The time to assist emergingmarkets SMEs to grow andmanage their business on thecloud is here and who best toenable them to do so, than theirtrusted telecoms operator?Between the software providerand the telecom operator,specialist cloud enablers such asCE On-Demand effectively act asa reseller of SaaS subscriptions,but provide so much more.These partners offer additionalvalue with crucial servicesrelated to integration withthe telecom operator’s coresystems, white-labelling of thecloud services and seamlesscustomization for the end user.The right cloud enabler has boththe data integration solutionsand the expertise to workthrough technical issues. Theright cloud enabler assists thetelco to monetise the cloud byimplementing the best solutionand launching white-labelledcloud services to market in aneffective and timely manner.12 www.teletimesinternational.com<strong>June</strong> <strong>2012</strong>


<strong>Teletimes</strong> ReportCommunicAsia, EnterpriseIT andBroadcastAsia reinforce the convergence connectionAsia’s most established global event for the ICT, Digital Multimedia andEntertainment industries serves as springboard to growth opportunities in the regionCommunicAsia, EnterpriseITand BroadcastAsia – theworld’s leading event forthe increasingly convergingDigital Multimedia,Entertainment, Infocommand Telecommunicationsarena – is experiencing recordpre-show visitor registrationsand exhibitor figures hittingclose to 2,000 as the industry,its business leaders andinfluencers turn their attentiontowards opening day on 19<strong>June</strong>.Based once again at thehighly successful downtownvenues of Marina Bay Sandsand nearby Suntec City,CommunicAsia, EnterpriseITand BroadcastAsia, together,are Asia’s most uniqueevents highlighting currentdebate and demonstrationsacross the latest technologybreakthroughs andapplications, ranging from film,audio and TV to cloud, mobileapps and services, satellite,M2M and vertical solutions. It isa premier launch pad for manycompanies from around theworld to showcase the latestand best technology has tooffer, and is also Asia’s largestand most successful event ofits kind in the industry.“International tradeattendees to Singapore nextmonth will have the uniqueopportunity to not only seethe latest developments anddebate around telecoms andbroadcast, but also to seehow dramatically this worldis converging and what thatconvergence means in thehome, in the office, on themove and the implications forservice providers and vendorseverywhere,” said Mr. VictorWong, Project Director ofCommunications Events, fromshow organiser SingaporeExhibition Services (SES).“Simply through a singleregistration they can movefreely across both events,gathering key informationat this critical time for theindustry, learning all they needto know to move forward<strong>June</strong> <strong>2012</strong>www.teletimesinternational.com13


within the offerings of theirown organisation. There isnowhere else on the planetwhere they can make justone visit and get such anappreciation of our fastintegratingenvironment”.The converging trend showeditself clearly in 2011, wheremore than 17 percent of visitorsattended both events – whichalso individually experiencedhigher visitor levels than in2010. Mr. Wong expects thoselevels to increase further nextmonth.Apart from sheer visitornumbers and registrations,the event already has closeto 300 first time exhibitors –with many of them alreadyreflecting the aggregationof technologies in a rapidlyevolving market.A typical example is IPTV – theprimary global application fromthe integration of broadcastand telecommunicationstechnology. Among theleading players usingCommunicAsia<strong>2012</strong>,EnterpriseIT<strong>2012</strong> andBroadcastAsia<strong>2012</strong> as a vitalcomponent of their marketingmix are AppearTV, Conax,Envivio, Exset, Harmonic,Huawei, KIT Digital, Irdeto,Pace, Verimatrix, Viaccess andZTE.Earlier this month, leadingbroadband analyst firm PointTopic reported that globalIPTV subscriptions wereapproaching 60 million, withthe last yearly quarter seeingthe biggest three monthgrowth increase ever.“IPTV led the way in showingconvergence in the marketand as well as sheer numberswe are seeing a welcomeboost in ARPU (AverageRevenue Per User) for serviceproviders. At events likeCommunicAsia, EnterpriseITand BroadcastAsia, they willbe looking for new platformsto repeat that success andso will their suppliers, so I’msure Singapore will once againbe an important event forthe industry,” said Mr. OliverJohnson, CEO of Point Topic.Mr. Johnson will be giving apresentation on “Value AddedServices: Broadband DrivenRevenues, Who, How Muchand Where”, which is partof the CommunicAsia<strong>2012</strong>Summit’s Next GenerationBroadband Business Modelstrack. The topic will examinethe current and project thefuture performance andopportunity for the VAS onoffer, globally and locally,and what it could mean foroperators to survive andflourish.Cloud Broadcasting and OverThe Top Technology are furtherexamples, where the prolificgrowth of portable deviceshas created new businessopportunities and has impelledbroadcasters and contentproducers to look for means tomonetise content. As the worldpopulation progresses into adigitally connected domain,broadcasters are driven toadd value by customisingcontent to specific audienceinterests, and communicatingwith viewers across variousplatforms. Broadcasting is nolonger about just transmitting,but also about interactionbetween content providers andusers.A new feature area atBroadcastAsia<strong>2012</strong> willilluminate ground-breakingOTT technologies, a must-seefor industry professionals asOTT delivery promulgate inthe coming years; with cloudbroadcasting setting newstandards in video ContentDelivery Network (videoCDN). Solutions for DigitalRadio, DVB-T2, File-basedand Digital Media AssetManagement will also beshowcased. Concurrently,CommunicAsia<strong>2012</strong> will featurea Cloud Services and SecurityTechzone – a dedicated areafor showcasing the latestproducts and services relatedto the entire cloud spectrum,from cloud infrastructureand platform, services andapplications, to cloud security.CommunicAsia andBroadcastAsia have beenrunning together for morethan 20 editions and are widelyacknowledged as one of theworld’s leading technologyshowcases.14 www.teletimesinternational.com<strong>June</strong> <strong>2012</strong>


Juliet TsengGoogle Joins Global Innovators at CommunicAsia<strong>2012</strong> SummitIndustry giant Google, is set tojoin a host of industry expertsand thought leaders at theMarina Bay Sands this month forthe leading global event in convergingbroadcast and telecommunications.CommunicAsia<strong>2012</strong>organisers have announced thatMs. Aliza Knox, Managing Directorof Commerce for Google AsiaPacific, will deliver the VisionaryAddress on 20 <strong>June</strong>, at the CommunicAsia<strong>2012</strong>Summit, focusingon how ‘Asia defines the Internet’by following the trajectoryof the smartphone across Asiaand how it can lead to a betterunderstanding of the region’scurrent and future growth.Until recently mobile-internetinnovations in one Asian countryhad little impact on its immediateneighbours, which effectivelymeant the region was growingapart. Now that's changing andAsia is growing together. Ms.Knox, who joined Google in2007, has been responsible forcreating a major brand presencein Singapore and for drivingthe company’s strategy andgrowth across APAC. Ms. Knoxcomments, “CommunicAsia<strong>2012</strong>Summit is an exciting space todiscuss the latest technologicaldevelopments taking place inthe Asia Pacific region. It is mygreat pleasure to present theVisionary Address at this internationalplatform. I am excitedto share my views on thesedevelopments, especially of thesmartphone, with fellow colleaguesfrom the industry, andhow technology has changedand enabled businesses in Asiato grow?”Delegates at the CommunicAsia<strong>2012</strong>Summit can look forwardto over 170 conference sessions,workshops, and panel discussionsthat will foster dialogueamong industry and governmentleaders, and provide executiveinsights and analysis on the excitingICT developments acrossthe globe.A wide range of topics fromcloud computing to mobilemarketing will be presented byprominent speakers such as Mr.Simone Brunozzi, TechnologyEvangelist, Asia Pacific, AmazonWeb Services; Mr. Dan Scoffer,Vice President, Marketing andBusiness Development, Veri-Fone; Mr. Vivek Jhamb, SeniorVice-President, Vodafone GlobalEnterprise, India; Mr. ChristianGeissendoerfer, CEO of Yoose;Mr. Wayne Purboo, President,CEO & Co-Founder, QuickPlayMedia; Mr. Rodrigo Donazzolo,Head of IP Interoperability, BTGlobal Telecom Markets AsiaPacific, and many more.Mobile technology will be akey focus at the CommunicAsia<strong>2012</strong>Summit and will featurededicated workshops on mobilemarketing strategies and mobilesecurity. Other tracks includenext-generation broadband,satellite communications,cloud computing, Over the TopTechnologies (OTT), customerexperience management andaugmented reality strategies.SkyWave to introduce new products atCommunicAsia <strong>2012</strong> - Invitation to meetSkyWave has some excitingnews about new M2Msolutions at CommunicAsia<strong>2012</strong>.Introducing innovationsIsatData Pro Satellite-CellularDevice: Targeting land mobileapplications, the IDP-780offers the efficiency ofcellular networks combinedwith the reliable, ubiquitousbreadth of satellite networks.With continuous coveragefor critical information, theIDP-780 provides real-timeconnectivity extending outsideGSM coverage.IP SCADA: We are pleasedto announce the availabilityof IP SCADA, a new satelliteservice within our IsatData Proportfolio which is specificallytargeted to address theremote monitoring markets.IP SCADA uses SkyWaveIDP 600 series terminalswhich are designed for lowpower, reliability and ease ofinstallation. For the oil & gasindustry, IP SCADA providesModbus capability and C1D2approved terminals.A customer application:Kemilinks InternationalIntegrates IsatData Pro intoMaritime Proprietary FuelMonitoring Solution. Byintegrating the IsatData Prosatellite service with Kemilinks’proprietary Fuel MonitoringSystem, the cost of maritimeM2M applications requiringhigher bandwidth is no longera problem.Broadband and IPTV growth report to be released at CommunicAsiaWHO: The BroadbandForum is a global consortiumdedicated to the developmentof broadband network,architecture, management andtesting specifications.WHAT: In a special regionalupdate, The BroadbandForum’s news conference willhighlight the latest regional andglobal deployment statisticsand trends– giving a clearview of how the industry isdeveloping, and where Asiais leading. (Report preparedby Point Topic). Robin Mersh,CEO of the Broadband Forumwill announce the figuresand discuss the technicaladvancements behind theindustry success. The technicalupdate will include thelatest news surrounding theBroadband Forum CertificationProgram, new technicalspecifications for MobileBackhaul and emerging areasbeing addressed, includingM2M and Cloud servicesupport.The Broadband Forum invitesyou to the press conference,either in person or through prearrangedbriefings.And be sure to stop by Mr.Mersh’s presentations:“Managing Those Billions ofDevices” on <strong>June</strong> 19.“The Importance of Interoperabilityto Next GenerationNetworks and Services” on 21<strong>June</strong>.WHEN: The Broadband ForumPress Conference will be heldon <strong>June</strong> 19, <strong>2012</strong>.WHERE: Press ConferenceRoom, CommunicAsia<strong>2012</strong>, MarinaBay Sands, Singapore.<strong>June</strong> <strong>2012</strong>www.teletimesinternational.com15


to attract more subscriberswhile global operators havelearnt the hard lessons of suchofferings. Moreover, operatorshave not been realistic withthe advertised speeds, withsome promising speeds upto 150 Mbps, a propositionthat is evidently not seenanywhere in the world. Pricesare not competitive either. Forexample, a 10GB offering inSaudi Arabia is 2.4x to 4x moreexpensive than comparabledata plans offered in someUS, European and Asianmarkets. Saudi operators viewLTE as a premium offering,thus premium charges applyover their HSPA+ prices whileEtisalat’s offering at no extracharge is an intended move toencourage LTE adoption.In the broader global context,the scenario is different asoffers are simpler and aretargeted to subscribers’needs. Operators are moretransparent with advertisedLTE speeds and provide fallbackto HSPA+ in areas whereLTE is not available.Differentiated LTE pricingstrategies in theUS, Europe andAsia are drivenby the operator’sintent. For example,Verizon’s LTEpricing without apremium is gearedtowards encouragingsubscribers tomigrate from itscongested 3Gnetwork. It hasrecently doubled thedata allowance whilemaintaining the priceto further encouragemigration. Most operatorshave moved away fromunlimited mobile broadbandoffers with customized offerplans tailored to subscribers’usage.LTE spectrum: Relevant to anoperator’s successHaving said that, we doacknowledge the lack of acohesive regulatory regime<strong>June</strong> <strong>2012</strong>www.teletimesinternational.com17


with coordinated spectrumplanning in managing LTEdeployments. The diversityin the choice of spectrumused for LTE launches in theMiddle East makes roamingand network sharing verydifficult. Operators haverushed to deploy LTE basedon their current frequencyallocations since no properlicensing process took placeand since no coordinatedtimelines have been set byGCC regulators with regards tofrequency planning and digitalswitchover.Saudi Arabia: No clearregulatory plan for action2 out of 3 LTE launches inSaudi Arabia were based onTD-LTE. Mobily deployed thistechnology in the 2.5 GHz bandto which it has access throughits subsidiary Bayanat Al Oula.The other TD-LTE network waslaunched by STC in the 2.3 GHzband. The third LTE network(FDD LTE) was launched byZain using its 1,800 MHz 2Gspectrum. It is still a long wayfor the 2,600 MHz used by theMilitary to be freed or for thedigital dividend to be plannedwith no date set for analogueswitch off. CITC had plannedto look at the possibility offreeing the TV broadcastingfrequencies but no progresshas been witnessed till date.While further nation-wide LTErollout was expected to beobserved in Saudi, Khaled AlKaf, Mobily CEO announcedthat the operator lacked thenecessary spectrum to deployLTE 8.UAE: Regulatory will for actionUAE’s Etisalat has deployedLTE using 2,600 MHz andcomplemented it with 1,800MHz for better coverage. Thecountry has set December2013 as a date for analogueswitch-off. This is howeversubject to change dependingon switchover plans adoptedby other GCC countries, andreadiness of the operatorsand the public to switch todigital TV. The 790-862 MHzband has been designated as apriority band for switch-off (byDecember <strong>2012</strong>) in order for itto be used for mobile services,in line with the decisions takenat regional level 10.Oman and Bahrain: Regulatorsin actionA glimpse of hope in the regionhas emerged in Oman andBahrain. As the demand fordata soared, Omani operatorshave engaged in active talkswith the regulator to releasethe 800 MHz spectrum.The Omani Transport andCommunications Ministryannounced a few months afterthese discussions that it isplanning to allocate OMR 50million to release spectrum inthe country 9.Bahrain rises as the star ofregulatory best practice inthe region. The regulator isplanning to award licensesin the 2.6 GHz band which issuitable for 4G technology. 40MHz of paired spectrum willbe freed by the end of <strong>2012</strong>while further 30 MHz of pairedspectrum in the same band willbe available by the end of 2014.The TRA is also offering 40MHz (paired) in the 2.1 GHz, 15MHz (paired) in the 1,800 MHz,5.6 MHz (paired) in the 900MHz, and 15 MHz (unpaired)in the 1,900 MHz. The licenseaward process is expected tobe finalized by the first quarterof 2013 11.Developed markets: Activeregulatory engagementThe global context whenit comes to regulatoryengagement in LTE is againdifferent. Launches inEuropean countries havefollowed a regulated processcompared to the GCCcounterparts. Licenses wereawarded in auctions that sawoperators gain frequencies in800 MHz, 1,800 MHz and 2,600MHz, all suitable for a goodLTE deployment. Harmonizedfrequencies enabled operatorsto engage in network sharingdeals to speed up LTEdeployment. This was the casein Denmark where Telenorand Telia signed a radio accessnetwork sharing deal for 2G, 3Gand 4G.Moreover, license obligationshave pushed operators tocommit to their rollout plans.For example, the Germanregulator has enforced ruralcoverage as a priority while theFrench regulator has imposedcoverage targets for MainlandFrance and specific regions andhad the operators commit tohost MVNOs on their networks.Active regulatory managementand engagement with theoperators has played asignificant role in speeding upand regulating the processin developed markets. GCCregulators could step upand adopt a coordinatedaction plan to speed up LTEdeployment within the region.Regulatory bodies: Thecatalyst for changeThe lack of regulatoryuniformity on LTE hascompelled GCC operatorsto go ahead with LTEdeployment within thecurrent frequency allocationuntil suitable spectrum isreleased. The key contentionis spectrum managementand harmonization ratherthan spectrum shortage.Regulatory bodies in theregion are encouraged to actupon this and adopt a promarketapproach to fosterinnovation and encourage realcompetition.In light of increased churnlevels observed by manyoperators, active regulatorymanagement will ensurethat customer experience issustained with the introductionof latest technologies andservices.GCC operators can emulatethe innovative achievementsof their global peers if regionalregulators pro-activelypush forward to engage intheir own race to promotetechnological, social andeconomic development. Inessence, the GCC regulatorshold the key to further LTEsuccess.18 www.teletimesinternational.com<strong>June</strong> <strong>2012</strong>


Rola OsseiranBuilding sustainable Internet business model -SAMENA and ETNO organized seminar in Hong KongJointly sponsored by HKT and PCCW GlobalSAMENA TelecommunicationsCouncil and EuropeanTelecommunications NetworkOperators’ Association (ETNO)held the annual SAMENA Chairmenand CEOs dinner meetingin Hong Kong under the theme“Internet Policy Dynamics:Shaping the Future - Howconsensus between The PolicyMakers, Content Providersand Operators can lead us toSustainable Digital Economies".More than 65 chief executivesand chairmen from leadingtelecom operators discussedand debated the importance ofcollaborative efforts in buildingsustainable Internet businessmodels.HKT, Hong Kong’s premiertelecommunications serviceprovider, and PCCW Global, anoperating division of HKT whichprovides international connectivityto enterprises and serviceproviders worldwide, were cosponsorsand hosts.SAMENA and ENTO stressedthat generating additionalincome is important for globaltelecom operators, consideringflat revenues from traditionalservices, ever-increasing competition,very high CAPEX costs,and regulatory pressures. Telecomoperators need to rethinktheir Internet business modelsin light of the recent trendswhich illustrate that Internettraffic has experienced exponentialgrowth and is expectedto continue in the foreseeablefuture.SAMENA TelecommunicationsCouncil’s Content Committeehas been exploring a numberof possible future models thatcan assist operators to potentiallyoffset the great imbalancebetween their CAPEX and ROI.The Council released a positionpaper on “Perspectiveson Meeting Massive Growthon Bandwidth Demands” toprovide operators with a collectiveframework conducive tobuilding a sustainable Internetbusiness model jointly.Mr. Sheikh Mohamed Isa AlKhalifa, Group CEO of Batelcoand Chairman of SAMENATelecommunications Council,said, “The ICT ecosystem isvery dynamic and the telecomoperators should unite to addressthe changing elements inthe industry, specifically in areassuch as International TelecommunicationsRegulations (ITRs)as well as the building of thenew sustainable Internet businessmodel. The telecom operatorsare facing a critical point inthe evaluation of requirementsfor additional CAPEX investmentversus the potential realistictimely return on the sameinvestment from broadbandmargins.”Luigi Gambardella, Chairman ofETNO's Executive Board, said,“It is essential that both SA-MENA and ETNO work togetherto encourage the developmentof policies that support investmentin new infrastructure bystimulating the emergenceof a new Internet eco-systemthat encourages commercialagreements on specific qualityTelecom Operators’ collaborationrequired to build sustainable Internetbusiness models.Mohamed Isa Al Khalifaof service levels in order to meetcustomers’ needs. Differentiatedoffers based on QoS wouldfoster investment by telecomsoperators while providing fora better user experience forInternet services.”Mr. Alex Arena, Group ManagingDirector of HKT, said, “Telecomservice providers face commoditizationin their core accessbusinesses, and have thereforelooked to content, applications,and other transactional servicesto find new revenue growthopportunities. Simultaneously,many content providers areseeking other means of distributionusing OTT (“Over-The-Top”)Internet hoping to maximizetheir revenues.”Mr. Arena added, “The SAMENATelecommunications Councilis actively working towardsthe development of a viableframework which contemplatesa number of forward lookingcollaborative business modelsto achieve a successful andmutually valuable working relationshipamong the parties. HKTis much honored to be hostingthis year’s SAMENA Chairmenand CEOs Dinner in Hong Kong,bringing a significant number ofkey telecommunications executivesfrom around the world todiscuss and debate these frameworkproposals. HKT welcomeseveryone to participate in theevent while leveraging HongKong’s global ICT leadershipposition as a platform for newbusiness.”<strong>June</strong> <strong>2012</strong>www.teletimesinternational.com19


Shaahima FahimOver 62 telecom operators debate SAMENA Council’sframework on sustainable Internet Business ModelSAMENA TelecommunicationsCouncil has announcedthat over 62 seniorexecutives from leadingtelecom operators attendedthe annual SAMENA Chairmenand CEOs Dinner Meeting inHong Kong. Held under thetheme “Internet Policy Dynamics:Shaping the Future - Howconsensus between The PolicyMakers, Content Providersand Operators can lead us toSustainable Digital Economies".The meeting was very successfuland attendees discussed theimportance of collaborativeefforts in building sustainableInternet business models.The SAMENA Council’s ContentCommittee has been exploringa number of possible futuremodels that can help operatorsoffset the imbalance betweentheir CAPEX and ROI. The meetingalso provided the attendeeswith an opportunity to debatethe framework on “Perspectiveson Meeting MassiveGrowth on Bandwidth Demands”proposed by the Committeefor building a SustainableInternet Business Model.Thomas Wilson, CEO andExecutive Managing Director ofSAMENA TelecommunicationsCouncil said, “The SAMENAChairmen and CEO's DinnerMeeting was deemed a greatsuccess by all attendees, andwe look forward to work withthem closely going forward. It isdefinitely in the interest of theSAMENA Council and its membersthat the framework wasactively addressed and its translationinto a working documentwas also explored. Addressingthe commercial viability issue ofthe current internet models viathe multiple options laid out inthe SAMENA Content Frameworkdocument and not froma regulatory perspective, wasalso highlighted multiple timesduring the meeting.”SAMENA Council submits its contributionto ITU’s council working group on ITRsIn response to the ITU’s openinvitation to submit feedbackand contributions in support ofthe ongoing International TelecommunicationsRegulations(ITRs) revision process, theSAMENA TelecommunicationsCouncil presented its Contributionto the Council WorkingGroup on ITRs.As an ITU-D Sector Member,the SAMENA Council has madeits contribution on behalf ofthe telecoms operator communityof South Asia, the MiddleEast, and North Africa. Viewsexpressed in the SAMENACouncil’s Contribution, whichconsists of qualitative representationof 12 key industrygoals that the SAMENA Councilbelieves the ITRs Treaty shouldbe attentive to, have beenaimed at drawing the ITU’skind consideration on variousdimensions of the ITRs Treaty ina qualitative manner.Having played an integral rolein the global telecommunicationsindustry in critical timesof transformation over twodecades ago, the existing ITRstreaty is being revised potentiallyto act as a sustainableand effective guideline in theInternet-driven communicationsenvironment of the 21stcentury.The revision of the 1988’s ITRsserves as an opportunity forboth the governments and thetelecom community to embracechange by treading throughthe process of explorationand deliberation. According toIzhar AhmadMr. Thomas Wilson, CEO andExecutive Managing Director ofSAMENA Council, “It has beenan accomplishment for theSAMENA Council and its membershipto have deliberated onthe ITRs issue. Our operatormembers have been very activewith us during this ITRs contributionsubmission process. Ourwork on this issue is not yetover, for there remains muchto accomplish and do up tillthe December WCIT meeting inDubai”.20 www.teletimesinternational.com<strong>June</strong> <strong>2012</strong>


Hartwig Tauber, Director GeneralWhy it's time for operators to say 'bye'FTTH Council Europeto copper and welcome fibre-based broadbandBusinesses, governmentsand consumers everywhereare demanding the opportunitiesoffered by faster access. Sowhy aren't operators offeringthe high-speed, future-prooffibre networks that make thispossible and still invest in upgradingcopper networks?From the operators' point ofview, continuing to invest incopper may seem a logicalchoice. They want to protecttheir legacy networks afterhaving invested in them for decades.Operators have a vestedinterest in harnessing local loopcopper ADSL, as connectionsthat have been earned backsome time ago provide themwith a fixed monthly revenue.Replacing these would requirecostly planning, digging, building,testing and maintenance.Ensuring copper stays in placeallows operators to controlunbundling and, therefore,competition. Furthermore,shareholders expect a fasterreturn than fibre investmentscan provide.However, these are all shorttermarguments. To keep upwith today's demands, coppernetworks require costly upgrades,such as Dslam cabinetsfor advanced multiplexing andhigh Operating Expendituresfor power, service and soon. But the reality is that thistechnology is already outdatedand can hardly meet the NextGeneration Access specificationsof today - let alonetomorrow. While copper maybe keeping shareholders happy- at least, for the time being -the long-term gains of fibre aresignificantly greater. Recentresearch has indicated that theactual cost of rolling out fibre issignificantly lower than earlierestimates imply. In addition,alternative financing models,such as Public-Private Partnershipsand municipality projects,offer significant possibilities forrealising roll-outs without traditionalshareholder involvement.The costs of fibre may seemprohibitive at first. But theonly way to get a really clearpicture of the overall cost isby making a solid businesscase. This should compare theyear-on-year expense of copperupgrade over a decade withan FTTH investment based ona ten-year business case. InGermany, for example, totaloperators investments from1998-2008 amounted to 82.7billion euro, including wireless,3G and fixed upgrades. Aninvestment of this magnitudecould have laid the basis for afibre network - the only alternativethat can guarantee supportfor future bandwidth requirements.All in all, it is hardly surprisingthat today's copper operatorsaren't keen on communicatingthe benefits of higher speedsto their professional and consumerclients. But increasingcompetition, encouraged byEuropean and national governmentbodies, recent legislativedecisions and well-thoughtout National Broadband Plansmay soon be forcing them toreconsider their point of view.Financial stimulus has an importantpart to play in this, withthe European Commission's 7,2billion euro injection acting as atrigger required for operatorsto migrate toward FTTH.Copper supporters may pointout that today's copper networksare no longer the sameas those of decades ago. True,their capacity far exceeds thatof earlier generations. Butthese speeds are still insufficientto keep up with demandwhen all users want the fastestpossible performance at thesame time. When it comes totransmitting high-bandwidthdata such as video contentover long distances, there isno competition. Data loss infibre is exceptionally low andthere's no electrical crosstalkbetween the - passive - cables.In addition, more and moreapplications, such as cloudcomputing, require symmetryof bandwidth, which is an integralproperty of fibre. Coppernetworks just can't upload anddownload at the same highspeed and quality - and thisposes a real threat to the rolloutof healthcare and educationservices which tomorrow'ssociety simply must have inorder to maintain standardsof living for a fast-growing,longer-living population.The demand for new types ofservice and a higher qualityof services continues to rise,along with the number of connecteddevices, both in urbanand rural regions. AlthoughEurope appears to be at anintermediate step on the pathto FTTH, reports indicate thatfibre is growing faster than inprevious years. Uptake doesn'tdepend entirely on what theclient wants, but largely on theoperator's strategy. And withfibre, an average operator cangenerate 46% more AverageRevenue Per User and uptakelevels up to 93% have beenrecorded. There is an undeniable,growing demand for fibre,offering operators an opportunityto significantly boost ARPU- possibly even with the help ofEU funding.Fibre has higher data capacity,is more resistant to pulling,impossible to tap into withoutcausing noticeable attenuation.Fibre takes up less spaceand - although the associatedelectronics are initially costly- it is far cheaper than copper.Really, there's no reason topostpone the inevitable.<strong>June</strong> <strong>2012</strong>www.teletimesinternational.com21


Klaus von den HoffDr. Volker LembergJohn BrennanSeogin ShinLet the shop come to youmCommerce – becomes a businessGame-changing smartphoneapplications in theConsumer Goods and Retailindustry are impacting the wayconsumers shop, communicate,access information, and plantheir time. For retailers, atthe end of the day, it’s abouthow and where the consumerdecides to spend his money.Smart-phones will becomethe most important digitaldevice for the shopper inthe Consumer Goods/Retailtransaction process – andmore so as a sales channel(mobile order) than a paymentchannel (mobile payment).Today, there is a convergenceof industries where successfulretailers need to understandthe dynamics and opportunitiesfrom the TIME industry,including technologicalfeasibility. On the other hand,leading-edge technologicalmCommerce solutions canenable telecom operators todifferentiate themselves vis-àvisthe consumer. They can alsoincrease customer loyalty withtheir large corporate accountsby becoming enablers for newbusiness models.Your mobile phone – neverleave home without itMobile phones are the remotecontrol of our life and willbecome the primary device toaccess the web in the future.We increasingly rely on them tomanage our life as conveniencebecomes paramount.Convenience is anything thatis intended to save resources,such as time and energy, orfrustration. And what deviceis more convenient in thatrespect than the mobile phoneand smart-phone?Today, 80 percent of stationaryinternet users also access theinternet via smart-phones ona daily basis. In 2011, around472 million smart-phones weresold globally, and that numberis expected to increase to astaggering 982 million by 2015.Today, of the 4 billion mobilephones in use worldwide,about 27 percent are alreadysmart-phones.In the Consumer Goods/Retailsphere, there are already avariety of mobile applicationsfocused on convenience:● Extended packaging:Consumer access additionalproduct informationthrough their mobile phone● Mobile coupons and loyaltycards: Mobile phones areused both to capture andredeem coupons and discounts,as well as replace orextend loyalty cards● M-payment solutions,including mobile selfscanningand check-out:Consumers in supermarketsuse their mobile phone,rather than a device suppliedby the supermarket, toscan and check out productsas they do their shopping● Mobile navigation:Consumers can not only finda store in the vicinity, butalso navigate inside a storeto find the right product ontheir mobile shopping list● Mobile commerce:A complete transformationof consumers’ shoppingbehavior, enabling onlinetransactions via the smartphoneto replace a visit in aphysical store.The more value-added serviceor application on the mobile –the more convenient it is forthe end-user, the higher theintensity of usage (see Figure1). This results in a blue print fora retailer’s mobile strategy.Retailers have been somewhathesitant to accept and adaptthe mobile as a businesschannel. Perhaps they stillrecall the first on-line grocerybusiness, Webvan, whichwas named by CNET in <strong>June</strong>22 www.teletimesinternational.com<strong>June</strong> <strong>2012</strong>


2008 the largest dot-com flopin history. Why didn’t foodretailing via the internet takeoff as expected? From theconsumer perspective, it didnot provide the necessaryconvenience because theyneeded to be online in orderto use it, it was impractical tocarry a computer around tocheck the fridge or pantry, andit was not easily done duringdowntime, while waiting for atrain or in an airport (note: weare intentionally leaving outhandling/delivery cost in thisequation).Game changers in modernfood retailingSome retailers have realizedthat the smart-phone isa superior device to offerconsumers convenience whengrocery shopping. For example,Amazon has entered the onlinegrocery business, and recentlystarted to take advantage ofthe mobile channel by choosingto debut its new AmazonFreshgrocery-shopping app on theWindows Phone 7 platform. InSwitzerland, Le Shop, daughterof retail giant Migros andleader in online grocery sales, ishoping to significantly increaseits sales by offering their fullcatalogue as an app that worksoffline on iPhones and Androidsmart-phones. Carrefourrecently announced its launchof “mes courses” (my groceryshopping) app and is alsoentering the mobile commercearea.Other more entrepreneurialcompanies are already tappinginto consumers’ desire to haveshopping at their fingertips,by entering a new era ofonline retailing – the virtualstore concept. The UK-basedNow available on> App StoreFind out more about the newversion of Ocado on the Gogrocer, Ocado, was foundedin 2002 and originally startedas an online grocery channel.In 2009, it became the firstUK grocery retailer to releaseiPhone and iPod touch apps.Orders made using iPad andAndroid mobile devices withmobile checkout now accountfor 15 percent of total orders.There are several reasons forOcado’s success:● Price matching of leadingcompetitors (namely Tesco)on over 7,200 SKUs, sellingover 21,000 SKUs● 27 delivery slots daily in 1hour windows; 95 percentof orders on time and 99percent complete● Complete offline catalogueavailable via app (see Figure2)Today, Ocado continues itsleadership in modern groceryVoice Search on Android OnlyDownload fromAndroid Marketor, scan the barcode usingyour device's barcode reader todownload fromAndroid Marketplaceretailing innovation, and isat the forefront of mobilecommerce with the launch of agroundbreaking store conceptat the One New Changeshopping centre in centralLondon in August 2011 (seeFigure 3).Using an innovative, integratedwindow display, the ‘virtualpop-up shop’ allows a customerto browse through productsin-store, scan their barcode andthen have them delivered totheir door. All customers needto shop at the virtual store isan iPhone or Android devicethat supports barcode scanningand the Ocado On-The-Goapp, which is available for freefrom the App Store or AndroidMarket.Interestingly, Ocado’scompetitor in the UK, Tesco,has experimented with a similarconcept abroad by launchingHomeplus in Korea – an awardwinning concept at this year’sCannes Lions Award Ceremony.The Homeplus discount chain isa joint venture between Tesco,with a 94 percent share, andSamsung. The concept behindHomeplus is to make groceryshopping more convenientfor busy, time-stressed urbanresidents in what has becomeone of the most work-focusedcountries in the world (seeFigure 4).In Germany, Europe’s largestgrocery retailing market,companies are trying to meetthe public’s demand fortransparency with new appsthat couple smart-phones’barcode reading abilitieswith more information aboutproducts on the market.Consumers can find stores,<strong>June</strong> <strong>2012</strong>www.teletimesinternational.com23


create virtual shopping listsand even have a virtual dietcoach control calorie intake.Currently, however, there is nocompany offering a shoppingexperience via apps connecteddirectly to the retailer or viavirtual stores.Lessons learned from modernfood retailingThere are several lessons tobe learned from the successstories in food retailing. First, itworks! Companies like LeShopand Ocado have proven thatmobile commerce solutions canwork in consumer goods retailingand that sustainable businessmodels can be created.Second, business models needto be continuously adapted tonew technological solutions.For companies like Tesco andOcado, the future is alreadybeyond the smart-phone-basedapp to a new virtual shoppingexperience.Third, in order for the mobilesolution to work, market playersneed to develop a mobilestrategy (Figure 1), integratingsome principles that all our successfulexamples share:● The solution has to work inharmony and in-sync with arange of tools and devices(internet, tablet, smartphone)● The app should be ableto work offline, with thecatalogue available on themobile device, acknowledginghow consumers dotheir mobile selection andpurchase● Enable same-day deliveryand customer-friendlydelivery windows. In manycountries, grocery shoppingis still done at least 2-3 timesper week, sometimes evendaily. Mobile solutions needto function as close to thereal world as possibleConclusion – quo vadis?In the 1990s, the focus ofconsumer retailers was ondeveloping an online presencefor the sharing of informationbetween consumers andthe retailer. The early yearsof 21st century were aboutcopying and pasting the brick& mortar store into the onlineworld, which was not an easytask (see example of theleading European media andentertainment retailer, MediaMarkt). Today, the smart-phoneis a game changer for modernconsumer goods retailing. Thesmart-phone has thereforedriven a convergence betweenthe fast-moving consumergoods and telecommunicationsindustries – and both can profitfrom it!For the retailer, the focusshould be on what new technologiesenable them to offertheir time-starved consumers;retailers need to be at theforefront and create storeloyalty. The traditional conceptof store loyalty and the internetperformance indicator of stickinessholds true for the mobileworld, as well. If a consumer issatisfied with one mobile retailingsolution, he will think twicebefore using alternatives. Howdifficult and expensive wouldit be for Coop in Switzerland tochallenge Le Shops’ dominantposition? Or for Tesco tochallenge Ocado in the UK?Where are the leading Germanretailers?There are a number of issuesand critical questions a retailerhas to address when initiating amove into mobile commerce:● Develop your businessmodel and test it: Whichcustomer segments will betargeted? How to handlesmall drop sizes, returns andperishable goods throughyour supply chain? Whatwill be the assortment andpricing strategy vis-à-visthe brick & mortar business(mark-ups, handling cost,minimum orders, etc.)? Howto handle payments (in advance,via EC-/Credit cards,cash upon delivery, etc.)?● Create a comprehensivelearning experience (for theretailer and its customers):What is the best city for atrial? How to combine themobile commerce strategywith intelligent use of socialmedia to create customertrust, loyalty and an armyof ambassadors? How tocomplete your mobilecommerce strategy withvirtual stores (static viaclassical signage à la Ströeror JC Lacroix or using activedigital signage with flexiblecontent solutions)?● Partner with telecomoperators: They are at theforefront of technology andinterested in being associatedwith such a revolutionaryconcept, such as of modernretailingFor the telecom operator,mCommerce enables a newconcept of business relationswith both end-users andcorporate accounts. Being atthe forefront of technologicalsolutions can improve thecompetitive position of atelecom operator – even ifthere is limited reach – and givethe end-user additional reasonsto buy rather than engaging inprice wars.24 www.teletimesinternational.com<strong>June</strong> <strong>2012</strong>


Wi-Fi traffic already exceedscellular traffic and isexpected to grow to 5x the rateof cellular traffic from 2011–2015.Wi-Fi is a strategic solution toaddress the data growth on mobilenetworks. However, it is nota panacea; it also comes withits own challenges, especiallyin the area of backhaul, whichmust be addressed.It is right to keep talking aboutthe explosion of data on ourmobile networks, but thecontinued growth and theimpact on the networks remainissues for the operators. 4G willaccelerate the problem; it isexpected that by 2015 the 6% ofglobal users who are on 4G willgenerate 36% of the total traffic,according to the Cisco VNI.With little spectrum available,operators are turning to Wi-Fi asa strategic option.This is especially true as usersspend 70% of their time indoors(and 80% of their data usageoccurs indoors), but operatorsneed to understand its limitations.Today, Wi-Fi is rarely a seamlessexperience for users: there aresome well-known providerssuch as AT&T, Boingo, Swisscom,T-Mobile and others, buttoo often the provider is nota known quantity, and performanceand security are highlyvariable. We’ve all experiencedsituations in hotels, airports andespecially at business conventionswhere the Wi-Fi networksrequired a separate login or anadditional payment, or werenot able to keep up with theSP Wi-Fi coming to ahotspot near youdemand.SP Wi-Fi arrivesThe Wireless Broadband Alliance’s(WBA) will address theseissues by defining Service ProviderWi-Fi (SP Wi-Fi) specifications,bridging the cellular andWi-Fi networks to seamlesslyprovide high performance,security and service manageabilitywith 3G and especially4G mobile networks. Using802.11 standards and requirementsdefined by the WBA,Next Generation Hotspot (NGH)and HotSpot 2.0 specifications,SP Wi-Fi vendors can createproducts supporting serviceproviderquality, performanceand standards, for operatorssuch as Shaw in Canada, AT&Tin the US, BT OpenZone in theUK, Swisscom across Europe,T-Mobile-US and Europe andPCCW in Hong Kong.Points to ponderA big question regarding SP Wi-Fi success is the backhaul connectionfrom the access point tothe network. Mobile operatorsfound that backhaul upgradesto their 3G cell sites in advanceof 4G deployments significantlyincreased service performanceand improved the overall userexperience. This lesson must beapplied to Service Provider Wi-Fias well. Smartphone usercellular connectionspeeds aresteadily increasing from anaverage of approximately1.3Mbps to over 5Mbps by2016. But US LTE networks areconsistently delivering 5Mbpstoday, with download speeds inthe 20-30Mbps range regularlyexperienced. This sets the userexpectation of a level of experiencesimilar to that of homeWi-Fi. With proper engineering,operators should be able todeliver a seamless and consistentexperience with their SPWiFi service bridging their LTEcellular service.However the second key challengeis coverage, which comesat a scale that underscores thebackhaul problem. A businesscase study by ACG Researchfor SP Wi-Fi determined thatthe number of Wi-Fi accesspoints it would take to cover ametropolitan area the size ofChicago (approximately 250square miles) ranged from10,000 to 25,000 depending onthe characteristics of the accesspoint, the geographic area andcoverage depth.Operators do have backhaul options— fiber, radio/microwaveand copper — and it islikely that theywill useChris Nicoll, ACGall three, but we expect the bulkof the backhaul connections tobe packet optical/connectionorientedEthernet connections.These options provide bandwidthscalability and capacity,as well as support the necessaryQoS mechanisms for next-generationmobile services.The answer is cellular + SP Wi-Fiand enhanced backhaulUsers are spending more timeand are using more data ontheir Wi-Fi connections. In orderto bridge the carefully managedcellular service with theunlicensed nature of Wi-Fi, Wi-Fiis bringing carrier-grade engineering,traffic and spectrummanagement to wireless users.Many operators are highlightingtheir support for SP Wi-Fi as thecatalyst for their Wi-Fi deploymentsin the next few years.Wi-Fi is not just a “nice to have”for the mobile operators, but itis becoming a strategic part oftheir wireless strategies.<strong>June</strong> <strong>2012</strong>www.teletimesinternational.com25


Princess Sumaya bint El Hassan inauguratedArab Advisors Group 9th Convergence Summit in AmmanLeen HammadMore than 500 delegatesgathered at Arab AdvisorsGroup 9th ConvergenceSummit <strong>2012</strong> which was held atThe Four Seasons Hotel in Amman.Attendees represented200 regional & global TMTcompanies.Addressed by 48 visionaryexecutives and industry leaders,the 9th Convergence Summitbrought into discussion topicsthat play active roles in shapingup the industry.The Convergence Summit witnessedgreat support from itsMain Sponsor “Saudi TelecomCompany”. "The industry isundergoing transformationalchanges, probably the largestsince the invention of mobiletelephony, coinciding with aprolonged economic downturn.This calls for a right angle turnin the way we operate in orderto energize the engine for thenext wave of growth. We areglad to be sponsoring the ArabAdvisors Group Summit in Ammanand trust that the discussionswill be as always insightfuland constructive". Mr. GhassanHasbani, CEO of STC Internationalsaid. The annual summitalso received the support andsponsorships from Motorola,Orange, Umniah, Qualcomm,Zain and Ericsson."Convergence dynamics andthe rise of cloud-based servicesare markedly impacting the regionalTMT landscape. Startupsare mushrooming in many Arabmarkets to leverage the newopportunities. We are pleasedto have availed some regionalstartups a voice at the summitand thank our sponsors andspeakers for their continuedsupport". Mr. Jawad Jalal Abbassi,Founder and GM of ArabAdvisors Group said."The Arab Advisors GroupAnnual Convergence Summitpresents an important opportunityto engage with the region'sindustry leaders to discuss andshare views on future opportunities.We look forward todiscuss how Motorola Mobilityis driving the evolution of TVand why the time is right foroperators to capitalise on theconvergence of the mobile,media and telecoms worlds,"said Mr. Alper Turken, Directorof Sales for Southern Europe,Middle East & Africa, MotorolaHome Business.Orange Jordan's CEO Ms. NaylaKhawam underscored JordanTelecom Group and OrangeJordan's commitment to participateon an annual basis in thismonumental event, which constitutesa golden opportunityfor sharing experiences, knowledgeand viewpoints betweenkey representatives of the local,regional and global ICT landscapes.This, she explained, isessential for reaching effectiverecommendations that addressthe most pressing challengesfacing the industry.Ms. Khawam showcasedOrange Jordan's achievementsduring 2011, both froma corporate perspective andthe measurable benefits thecompany delivered to the dailylives of the Kingdom's citizens.She stressed that the companyintends to continue building onits outstanding legacy in <strong>2012</strong> bycontinuing to invest in varioussectors and various segmentsof the community and byforging more effective partnerships,with the long-termobjective being the cultivationof a knowledge-based community.This approach, she added,will guarantee the company'scontinued growth and contributionto the evolution of theKingdom's ICT sector.Mr. Ihab Hinnawi, the CEO ofUmniah commented: "Thesuccess of the "ConvergenceSummit" in the previous yearshas proven to be an instrumentalcatalyst contributing to thedevelopment of the industry.Umniah's partnership with therenowned Arab Advisors Groupmirrors a pivotal collaborationaimed at adding value, bothlocally and regionally. Thissummit, over the course of nineconsecutive years, has createdan effective platform bringingtogether key leaders anddecision makers while offeringan exceptional networkingopportunity tapping on thelatest developments." Hinnawiadded that "Umniah's supportof the conference is in line withthe company's philosophy ofbelonging to innovation andentrepreneurship"."The Middle East telecomsmarket is growingexponentially, creating newbusiness opportunities forboth established and upstartcompanies," said Mr. JihadSrage, President of Qualcomm'sMiddle East, Africa and CentralAsia operations. "The ArabAdvisors Group ConvergenceSummit is one of the region'sleading venues for sharinginformation on market trendsand meeting new partners.The relationships forged atArab Advisors Group Summithelp pave the way for the26 www.teletimesinternational.com<strong>June</strong> <strong>2012</strong>


Ghassan Hasbani Ross Cormack Nayla Khawamnext generation of mobile andtelecom services. Qualcomm isproud to sponsor this importantevent."For his part, Zain Jordan ChiefExecutive Officer Mr. AhmadHanandeh commented thatZain's sponsorship reinforcesthe importance of the roleplayed by the telecom sectorthat affects all other sectors,especially media. He addedthat Zain looks forward toexchange expertise andopportunities generated bythe massive developmentin the Arab telecom market.Hanandeh said: "Zain was thefirst to seize the opportunityof establishing a convenientinfrastructure for mergingmedia and telecommunications.We maintained our leadingposition in the telecom marketby implementing cuttingedge technology that meetswith international standards,in order to keep up with therapid evolution of the telecommarket. Zain will be alwaysin the lead, by providingadvanced technologies andcomprehensive solutions".Mr. Tarek Saadi, Presidentand Head of Ericsson NorthMiddle East also commented onEricsson's participation at theevent, "Arab Advisors Groupevent presents us with theperfect opportunity to sharewith our customers and themarket our vision of NetworkedSociety and its implementationaround the region. TheMiddle East region still holdsJawad Abbasihuge potential and growthopportunities in developing thetelecom sector, and we trustthat the Arab Advisors GroupSummit will enable us to takeanother step forward in thesevery important areas."Over the summit's two days,delegates interacted with an impressivearray of speakers thatinclude Mr. Ghassan Hasbani(CEO, STC International), Mr.Ross Cormack (CEO, Nawras),Mr. Ahmad Hanandeh (CEO,Zain Jordan), Mr. Ihab Hinnawi(CEO, Umniah), Ms. NaylaKhawam (CEO, Jordan TelecomGroup - Orange), Mr. HakamKanafani (CEO, Turk Telecom),Mr. Jay Srage (President ofQualcomm's Middle East, Africaand Central Asia operations),Mr. Anders Lindblad (Presidentand Head of Region Middle Eastand North-East Africa Ericsson),Dr. Bassam Hannoun (CEO,Wataniya Palestine), Mr. SamBarnett (CEO, MBC Group),Mr. Mohammad Youssif (CEO,Yahlive), Mr. Didier Lelievreo(Chief Information Technologyand Networks Officer, JordanTelecom Group - Orange), Mr.Yousef Mutawe (CTO, ZainJordan), Dr. Ismaeel MakdisiAnders Lindblad(VP - Corporate Affairs, Intigral),Mr. Mohammad MounirGhannamm(CEO, DAMAMAX),Mr. Haif Bannayan (CEO,Jordan Education Initiative),Mr. Mustafa Hasan (GeneralManager, Hulul), Mr. TarekSaadi (President EricssonNorth Middle East), Dr. NabeelFayoumi (Vice President , RSS-Testing, Technology, & Quality)Mr. Roy Zakka (Founder & CEO,Ubanquity Systems), Mr. AlperTurken (Director of Sales forSouthern Europe, ME & Africa,Motorola Home Business), Mr.Sami Smeirat (VP President OrangeJordan / CEO Jordan DataCommunication Company), Mr.Ziad Matar (Sr. Director - Headof the Middle East & CentralAsia, Qualcomm), Mr. JeremyFoster (Head of Marketing, Governmentand Industry Relations- Ericsson Region Middle East),Mr. Nayef Hijazi (Head of Products,nPario), Mr. Zakaria Nabil(Head of Products & Solutions,Vodafone), Mr. Hosam El Sokkari(Head of Audience, Yahoo!Middle East, Yahoo Inc.),Mr. Peter Lyons (Director ofSpectrum Policy - Africa andMiddle East, GSMA),Mr. Emmanuel Durou (Director,TMT consulting, Deloitte & Touche(M.E.), Mr. Khalid Abdalla(Head Of Business DevelopmentMiddle East & West Asia,BBC World Service),Mr. Fayez Abu Awad (EVP,Boost), Mr. Saeed Habash(Economic and social commissionfor western Asia (ESCWA),ESCWA Technology Centre), Mr.Tom Erskine (Director of SmartDevices, Nokia), Mr. ArnaudBassi (Distribution DirectorMENA, France 24),Mr. Vinton Cerf (Vice Presidentand Chief Internet Evangelist,Google), Mr. Santino Saguto(Partner Consulting, Deloitte &Touche (M.E.), Mr. Latif Ladid(President, Ipv6 Forum), Mr.Philippe Vogeleer (Executive- External Affairs, VodafoneGroup), Mr. Ahmed Ossama (VPTelephony & Home, TelecomEgypt), Prof. Ibrahim Kadi (ICTconsultant), Mr. Athanas Jamo(Strategic Marketing Manager,France 24),Mr. Mohammad Al Alawneh(Enterprise and Data SolutionsManager, Umniah),Ms. Julia Hildebrand (Social MediaManager, DW), Mr. BassamHajhamad (Principal, Booz &Company), Mr. Omar Christidis(Founder & CEO, Arabnet) andMr. Jawad Abbassi (Founderand General Manager, ArabAdvisors Group).Summit exhibitors includedFrance24, YahLive and DeutscheWelle, it was also supportedby El Hassan Science City aswell as GSMA. The Summit’s13 Media Partners coveredThe 9th Convergence Summit,through Social Media, including<strong>Teletimes</strong> press releases, and amobile application.Arab Advisors Group startedpreparing for the upcomingevent “The 2nd Smart HandheldSummit” which will take placein Dubai on November 26 &27, <strong>2012</strong> at The Address DubaiMarina.<strong>June</strong> <strong>2012</strong>www.teletimesinternational.com27


challenges. So, I would sayI hope it is going to be anopportunity but it is toopremature at this point oftime before we enter intothe seeing the real licensingregime. However, to answerthe question, of coursewe all operators knowthe opportunities the3G brought in otherparts of the world.Definitely it willlead to wider 3Gwireless broadband servicing inthe country.Gulraiz: Ok.So, now thelicensing isbeing done.Do you thinkauctioning is thebest way to giveout the licensingbecause you knowkeeping in view of thevery low mobile datapenetrated market?Mr. Walid: Well if they want togo for auctioning or somethingelse, what will be the betterwhen we see the price? Theprice will tell this is the way togo to the auction or otherwise.We have to see what has to bethe licensing fee an operatorhas to pay to enter into this.Gulraiz: Do you expectthe auctioning to be asintense as it was inUK or India or asfor 2G in Pakistanor do you thinkthe players willbe rational inthe bidding?Mr. Walid: Well!You see firstof all for the 3Glicensing, I thinkno body will comefrom outside andsay I want to be theonly 3G operator. That willnot be the case anyway. Thepeople can’t come to3G if theyhave at least started theoperation in Pakistan and have3Gcannot comeat a sweet spot inyour industry. In othercountries people whohave launched 3G arefacing challenges andtough challenges.seen the market potential inPakistan. I see moreintensecompetition will be fromlocal operators rather thanfrom outside operators. It willbe difficult at this point in timefor a third operator to come toPakistan and start of with 3Gservice only.Gulraiz: So, once thelicensing is done whatwould be the safe timefor the 3G auctionwinners to roll outtheir services in themarket?Mr. Walid: You seehere we are talkingabout our case weare talking of 6 monthto 1 year. Most of theequipment are already built tocope with 3G. I think it wouldtake about fairly one year andthe operators will start rollingout commercial 3G services.Gulraiz: So, for the last 3 to 4years we have been observingmassive competition, pricewars and tariff wars. Doyou think this will be thesame case for the 3G?Mr. Walid: I hopethat the operatorshave learned thelesson. We havelearnt this lessonthe hard wayand we willavoid this pricecut and warswhich leadsto disruptivemarket anddestroyingmarket values,for us and for theconsumers by theway, because yousee a consumer has toget quality service moreso on the 3G. If destroythe quality of service by justkilling the price this will not beprudent for us, the operatorsand to the consumer.So I would expect that theprice war, the intense price30 www.teletimesinternational.com<strong>June</strong> <strong>2012</strong>


Top du official to deal withcustomer complaintsdu is giving customersthe opportunityto take their grievanceto the top by openingup access to its ChiefCommercial Officer.The telecom operator,which competes withEtisalat in the UAE, saidthe move was part of its efforts to improvecustomer care. It said in a statement thatcustomers who have not had their "troubletickets" resolved within du's service-levelagreement - which is 48 hours for non-billingissues and seven days for billing-relatedissues - can share their issues directly withFarid Faraidooni, to receive his personalattention.The disputes can be forwarded to the CCO,whether it is related to du's TV, internet orlandline services, du added.Trouble tickets are issued when theAs the region’s innovationdriven telecom serviceprovider, we believe in servicesthat can impact and improvepatient care and lead to betterhealthcare outcomes, throughthe judicious use of secure andreliable networks and technology.In partnership with MobileDoctors 24-7 International LLC,licensed by Dubai HealthcareCity, we offer a unique 24-7Physician Helpline – the latestaddition to the roster of SmartHealth services. This affordablearound-the-clock phone serviceprovides indispensable supportto you and your customers bygiving them access to licensedand experienced medicalprofessionals at any time - dayor night.customer calls du'sCustomer Care to firstreport their problem.Faraidooni said: "I am veryexcited to have openedthis new channel ofcommunication, as I have apersonal interest in lookingafter the issues that ourcustomers may face."We are making every effort to continuouslyimprove our customer care services, and it ismy intention to dedicate my time to ensurethat any issue not resolved within a timelymanner will be dealt with in the quickest,most satisfying way for our customers." Thenew channel is open exclusively to homecustomers with trouble tickets that have notbeen resolved within the SLA period. Theservice will be extended to other segmentsin due course taking into consideration thefeedback received, du said.du introduces Smart Health –24-7 Physician Helpline Service● As a resident of UAE, youand your family deserveaccess to the best healthcareat affordable rates andassured quality.● As a corporate institutionyou want to bring the bestin differentiated and neededhealthcare services to youremployees and loyal customerswhile, controlling costsand enhancing wellnessprograms.● As a provider of healthcareservices in UAE, you areinterested controlling costs,delivering new benefitsand creating a competitiveUAE mobilephone costs setto fall - du CEOUAE telco du has said competitionwith larger rival Etisalat will lead toa gradual decline in the cost of mobilephoneservices in the Emirates, CEOOsman Sultan was quoted. Market leaderEtisalat has already begun to cut servicesand earlier this month announced itwas to slash the price of its broadbandpackages by 50 percent, while alsoreducing the cost of calls to India and thePhilippines by up to 30 percent.differentiation by extendingyour reach to your patientsand customers.We invite you to experiencethis scalable array of healthcare services designed toprovide timely access to coordinatedcare reinforcing wellnessand integrated healthcare.32 www.teletimesinternational.com<strong>June</strong> <strong>2012</strong>


Bharti Airtel buys 49% stake in US Qualcomm's 4G businessBharti Airtel, India's biggesttelecom company, hassaid it had reached a deal tobuy a 49 percent stake in USchip-maker Qualcomm's 4Gbusiness in India for Rs. 923crore ($165 million), and wouldcompletely own the venturewithin the next two years.The acquisition gives Bharti Airtelthe opportunity to quicklylaunch services in four zones,including the key markets ofDelhi and Mumbai, where itdoes not have 4G licences,making it a serious competitorto Reliance Industries-ownedInfotel Broadband, the onlycompany with pan-India permitsto offer high-speed dataservices on mobiles, tabletsand computers. At present,Bharti Airtel owns 4G licencesin four markets - Kolkata,Karnataka, Punjab and Maharashtra.Bharti Airtel shares rose nearly7 percent after the announcement,eventually closing at Rs.297.80, up 5.6 percent.The Indian telco will buy outQualcomm's local partnersTulip Telecom Ltd and GlobalHolding Corp, each of whomhold 13 per cent in the jointventure, and will acquire anadditional 23 percent stakethrough purchase of freshshares in Qualcomm's Indiaentities. The US company willcontinue to hold 51 percent tillit exits India in the next twoyears.Qualcomm had bagged licencesfor Delhi and Mumbai in thebroadband wireless auctionsof 2010 for Rs. 4,900 crore andsubsequently sold a 26 percentstake to its local partners, tocomply with Indian rules, forRs. 280 crore.While the deal values the equitycomponent of Qualcomm'sIndia business at Rs. 1,850crore, it pegs the enterprisevalue at around Rs. 5,850 crore.Bharti Airtel will take Qualcomm'sRs. 4,000-crore debton its books when it acquires100 percent stake in the venturein 2014, said an executivedirectly involved in the transaction.Another executive saidover the next two years, BhartiAirtel would stand guaranteeto the debt."This partnership will combinethe strength of Bharti'snational telecom footprintand Qualcomm's technologicalleadership in the LTE TDDspace. With a broadband-readynetwork across India, BhartiAirtel is well positioned to leadthe next phase of India's telecomrevolution," said BhartiAirtel Chairman and ManagingDirector Sunil Mittal.ET had first reported on April 11that Bharti Airtel and Qualcommwere close to finalisethe deal.Discussions Began in October2010The Indian telco and the USchip maker had begun discussionsas early as October 2010,but had to put their talks onhold after the telecom departmentcancelled Qualcomm'smobile broadband permits lastyear. But in March this year, theTelecom Disputes Settlement& Appellate Tribunal (TDSAT)ruled in favour of Qualcomm'sIndia unit and the companyfinally received spectrum lastmonth, paving the way for discussionsto be revived and thetransaction to go ahead.Bharti Airtel has alreadylaunched 4G services in Kolkataand Bangalore, and analystsexpect the company to quicklyroll out its networks in Delhiand Mumbai to get a head-startover Reliance's Infotel Broadband,which is tipped to beginoperations by the year-end."This deal was critical becausea company cannot have a datastrategy without being presentin Delhi and Mumbai. I expectBharti Airtel to move fast withrollouts in these cities. At thispoint, the lack of a pan-India4G footprint is not a setback.Delhi, Mumbai, Bangalore arethe low-hanging fruits andBharti is in a position to tapinto all of them," said Shiv Putcha,principal analyst in OvumConsulting's emerging marketsteam.Mahendra Kumar SinghIndian Cabinet ends up roaming charges countrywideThe government of India hasends up to mobile roamingwithin the country and usher ina country-wide number portabilityscheme along with fasterbroadband speed proposed inthe New Telecom Policy.The New Telecom Policy,which has replaced a 13-yearoldstatement, along with aunified licence regime for alltelecom services. The unifiedand class licences proposed bythe telecom regulator alongwith migration of existingones is different from what thegovernment had planned to doin 2003.With the Communications ConvergenceBill having lapsed, thegovernment has now decidedto keep broadcast services outof the ambit of the proposedunified licence regime. It may,however, come into conflictwith the New Telecom Policy'sproposal for a one nation-onelicence plan.But the industry, which isseeking a lower spectrum fee,is watching the New TelecomPolicy keenly as it has suggesteda simpler licensing regimealong with new tools such asspectrum polling and sharingand even permitting trading ata later stage.For customers, the new policywill mean that they do not haveto shell out a higher amounton roaming charges, althoughtariffs have come down significantlyover the last few years.In addition, it would soon bepossible for subscribers to retaintheir mobile numbers evenif they relocate to another city.The biggest change will be asharp increase in broadbandconnectivity as the governmentplans to set the minimumspeed at 2 mbps compared tothe existing 256 kbps. The planis to move into higher gearfrom 2015.There may be some bad newsin store for foreign telecomequipment manufacturers asthe government intends to providepreference to domesticallymanufactured goods. While theprescription may help developlocal manufacturing facilities, the move comes at a timewhen India is under pressurefrom the US on local contentrequirements in renewableenergy projects.34 www.teletimesinternational.com<strong>June</strong> <strong>2012</strong>


India approvesNational Telecommunication Policy <strong>2012</strong>The government of Indiahas approved its NationalTelecom Policy <strong>2012</strong>. The corecrunch of which is stated as‘abolition of mobile roamingcharges across the country andnation-wide number portability’to facilitate consumers.This new policy will enable ‘AllIndia Free Roaming’ regimewhereby no roaming chargeswill be levied on mobile callsmade from one circle toanother and also mobile userswould be allowed to retaintheir existing numbers if theymove from one circle or zoneto another. It is important tonote that no definite date forsuch implementation has beengiven by the Government.The policy, which is going toreplace the decade-old normsalso aims at simplifying thelicensing policy and delinklicenses from airwaves. Thisnew policy will also allowsharing of spectrum amongthe operators and facilitatemarket consolidation. Pricingof spectrum has not beenaddressed in the policy,however it states thatspectrum will be sold throughan open auction process. Thepolicy will allow operators toprovide services based on anytechnology by using spectrumnot restricting them to use itfor any particular service underany specific frequency band.The Cabinet under thispolicy has also approvedintroduction of the unifiedlicensing as Department ofTelecom (DoT) is authorizedto finalize the new unifiedlicensing regime. The NationalTelecommunication Policy<strong>2012</strong> also announces toincrease broadband speed toa minimum of two megabitper second (2mbps) withimmediate effect.An official statement issuedafter this approval said: “Thepolicy envisions providingsecure, reliable, affordableand high quality convergedtelecommunication servicesanytime, anywhere for anaccelerated inclusive socioeconomicdevelopment.”The operators on the other sideare of the view that this newroaming and number portabilityregime would decrease theirearnings upto 10 percent.It may be noted that thepresent government has seenits reputation at stake by aseries of corruption scams overtelecommunication issues. Thisnew policy may help in bridgingthe concerns from a userprospective.Government plans to ask mobile phone companiesto pay market rate for 2G wavesThe government of Indiaplans to ask all mobilephone companies to payauction-discovered price forthe 2G spectrum they hold forthe remaining period of theirlicences, as it seeks to createa level playing field, said a toptelecom ministry official.The move will sendshockwaves among existingoperators as back-of-theenvelopecalculations suggestthese companies will have toshell out several thousands ofcrores if the Cabinet approvesthe policy change proposed bythe communications ministry."Telecom companies thatlost permits following theSupreme Court order mustpay a minimum of Rs 3,622crore for every unit of 2Gairwaves in the upcomingauctions if the telecomregulator's pricing is acceptedby the Group of Ministers.But the operators whosepermits were not quashedhave not been subject to anymarket-determined fee for theairwaves they currently hold.The method we are proposingwill ensure all operators paythe same price for airwaves,"the official added.This official further saidincumbents such as BhartiAirtel, Vodafone and Idea, anddual-technology players suchas Reliance Communicationsand Tata Teleservices couldpay the auction-determinedprice for the entire spectrumthey have in the 1800 MHzband and extend the validityof their licences by 20 years."But this is not applicableto the 2G spectrum held byincumbents in the 900 MHzband. Here, they have to paythe auction-determined priceonly for the remaining tenureof the licence.This band will be refarmed(redistributed to all companiesthrough an auction process)when mobile permits come upfor renewal beginning 2014,"said the official.Incumbents such as BhartiAirtel, Vodafone and Idea hold2G spectrum in the 1800 MHzband in more than half thecountry.In the remaining regions,these companies haveairwaves in the 900 MHzband.All 2G airwaves held byReliance Communications andTata Teleservices are in the1800 MHz band.The DoT has asked theTelecom Regulatory Authorityof India to study the impactthis proposal will have ontariffs. This is part of theseven-point reference madeby the department to TRAI.Previously the TelecomCommission had failed toreach a verdict on the reserveprice recommended by TRAI.The commission decided toask the Cabinet on spectrumauction, headed by FinanceMinister Pranab Mukherjee, tofix the reserve price.TRAI Told to Study ImpactIt also decided to ask TRAIdo a cost analysis of theimpact its spectrum-pricingproposals will have oncustomers, companies andthe government's revenues,and present it to the panel ofministers so they can take adecision, Telecom Secretary RChandrasekhar had told ET.<strong>June</strong> <strong>2012</strong>www.teletimesinternational.com35


Indian Telecom commission wants detailed studyon airwaves auction priceTelecom Commission of Indiawill ask the sector regulatorto analyse the potential impactof a proposed airwaves auctionbase price that is seen as toohigh and has drawn protestsfrom carriers. The Commissionhowever endorsed a separateregulatory proposal to auctionby <strong>June</strong> next year airwavesin another band, TelecomsSecretary R. Chandrashekharhas said. That band currentlyused by older operators and willbe taken back from them in theso-called airwave refarming.The sector regulator had lastmonth suggested an auctionstarting price that is nearly 10times that paid by carriers in a2008 state grant process for thebasic 1800 mega hertz (MHz)band airwaves.The auction, due by August,follows a Supreme Court orderto revoke a total 122 zonaltelecom permits awarded ina scandal-tainted state grantprocess in 2008.The Telecom Commission, thehighest decision-making bodywithin the telecoms ministry,feels there is need of a detailedanalysis of the impact of theproposed auction price on calltariffs and carriers' investmentsbefore a decision is taken,Chandrashekhar, who chairs theCommission, said."For example, what is theimpact of this spectrum price onthe tariffs if this entire impactis passed on. And on the otherside, if this entire impact isabsorbed, what is the impact onthe investments, viability andthe return on the investments,"he said after a meeting of theTelenormay participate inre-auction of licencesSigve Brekke, the head ofTelenor’s Asia business, hassaid in an interview that theNorwegian company may stillbe willing to participate in theeventual re-auction of India’sGSM licences, provided proposedmodifications to the auction areimplemented. Telenor’s local jointventure with Unitech, Uninor,lost all of its licences earlier thisyear, and the telco had said itwould not be participating inthe re-auction due to high pricesand limited spectrum availability.However, Telenor is encouragedby the recent news that theTelecom Commission, the highestdecision-making body within thecountry’s telecoms ministry, is toask the sectorregulator,the TRAI, toconduct adetailed studyon the baseprice for theproposed airwaves auction andthe amount of spectrum to bemade available. ‘We are happy[the Telecom Commission] haveopposed the stringent rolloutobligations specified by the TRAI,’Brekke said. ‘The commissionhas also not approved thereserve price proposed by theTRAI, and this is positive for usbecause there may be someconsiderations in the governmentto reduce the minimum price.’Commission.The industry has criticised thehigh base price and limitednumber of slots proposed bythe regulator and says theregulatory changes will costthem billions of dollars more,hurting profits, and will forcethem to increase tariffs forcustomers.The Commission had earlier saidit wants a higher number ofslots to be auctioned than whatwas suggested by the regulator.The auction is the last chancefor carriers including Norway'sTelenor and Russia's Sistema towin back their permits that areset to be revoked after the courtorder.Telenor and Sistema havethreatened to pull out of Indiaif the government goes aheadwith the proposed rules. A panelof ministers has the final sayon the auction rules includingpricing.Spectrum RefarmingOlder carriers such as BhartiAirtel and Vodafone are alsofighting another regulatoryproposal to refarm, orswitch, their superior-qualityairwaves in the 900 MHz bandwith relatively-inferior 1800MHz at the time of renewal oftheir permits starting in 2014.The carriers have the optionto buy back in a separate auctionthe superior quality 900MHz airwaves, although theproposed starting price for itis twice that of the lowerqualityband. If they switch tothe 1800 MHz band, networkcosts will increase significantly.Spectrum tenure may be halvedto 10 years to reduce upfrontairwaves cost for companiesMobile phonecompanies may toshell out significantly loweramounts for airwaves inthe upcoming auctions ifthe panel of ministers onspectrum sale accepts aproposal to sell this scarceresource for a 10-yearperiod. According to thenew Telecom policy theTelecom Commission mayhalve the airwaves tenure to10 years. Currently, airwavessold through auctions, oreven those that were issuedto companies bundled withtheir mobile permits arevalid for a 20-year period.A reduced tenure will bringdown the reserve price orthe minimum price of theairwaves in the upcomingsale process. Last month,sector regulator Trai hadproposed that mobile phonecompanies that lost theirpermits after the SupremeCourt cancelled licencesawarded in the scandaltainted2008 sale, as well asincumbents, pay a minimumof Rs 3622 for every unitof 2G spectrum in the 1800MHz band. All operators hadslammed the regulator andtermed the reserve priceas being 'exorbitantly high'while also warning that thesteep increase in spectrumcosts could lead to a 100%hike in tariffs.36 www.teletimesinternational.com<strong>June</strong> <strong>2012</strong>


At home in the cloudResidential consumers aredemanding more and morecloud computing services andstorage, and the volume of datathey want to store in the cloudis substantial. Given how muchmultimedia data the typicalfamily maintains, the dormantdemand for cloud storage isalready between 2-5 terabytesof data, and it will likely increaseby a factor of 10 within the nextfive years.Emerging DemandBusiness and consumer interestin cloud IT services has increasedover the past year. Despite theoccasional security and continuitysetbacks, cloud IT offerings—whether through publicly accessibleservices, privately gatedservices, or hybrids—are on therise, particularly for corporatecustomers.On the consumer side, thisdevelopment has just begun.Companies are creating moreand more services—some assimple as basic file storage—tosatisfy the rising demand fromresidential customers for cloudservices. Most prominently,Apple recently launched itsiCloud offering with a huge burstof marketing.These efforts are geared towardmeeting consumers’ risingdemand for space to store andshare their growing amounts ofdata and to be able to accessthat data across an ever widervariety of devices.Most smartphones currently provide16 to 64GB of data storage,enough to hold the great majorityof most consumers’ music,pictures, and application data,along with a reasonable numberof video clips. As the amountof content owned by consumerscontinues to multiply, theirstorage demands will also grow,as will the storage capacity oftheir devices. By 2020, individualsmartphones will most likelyoffer as much as several hundredgigabytes of storage.Unsurprisingly, consumers arealready demanding the rightto consume all of their mediaacross all of their devices, fromanywhere and as seamlessly aspossible. But the sheer amountof data they hope to store andshare will make it increasinglydifficult to maintain identical setsof data across all devices.“Merely synchronising the manydevices each household ownswill become hopelessly impractical.Already, the dormantdemand for cloud storage is 2to 5 terabytes, and it will likelyincrease 10-fold over the next 10years,” said Bahjat El-Darwiche,partner with Booz & Company.“If that exponential growth continues,consumers will seek oneof two solutions: keeping fileson devices at home, with all thecost and complexity of maintainingthe necessary hardware, ormoving them to outside, cloudbasedservers, which would beeasier to maintain, and probablymore cost-effective.”In the long run, the only viablealternative will be the cloud—both for storing all this data andfor making it available on themany devices on which peopleexpect to be able to access it,from anywhere, at any time.To be sure, the cloud solution requiresthat a broadband networkis available and that the datacan be stored on a reasonablyreliable and secure cloud service.But that’s exactly where the opportunityfor telecom operatorslies.Given the level of demand, andthe sheer volume of data thatwill need to be stored and sentaround, the market for lowcostconsumer cloud storagewill explode in the next severalyears. We expect that managingthis data volume across multipledevices and networks willsubstantially affect the entirestructure of the whole communicationsindustry—not justthe storage infrastructure butthe broadband data networks aswell. What will this new marketlook like, and who is most likelyto benefit?A Range of Service ProvidersUntil recently, the primarymarket for cloud computingwas the corporate world, wheredata centers and cloud serviceshave already become relativelycommon. In 2010 and 2011, cloudservices began to proliferate forconsumers, starting with sitesfor posting and sharing videosBahjat El-Darwicheand photographs, and then movingto documents and projects(including places for children topost and collaborate on schoolwork).These services are evolvingrapidly now, as a variety ofcompanies—large players likeApple, Microsoft, and Google,and smaller, niche firms suchas Dropbox—begin to offerconsumers a range of onlineservices. Consumers looking justfor storage solutions can createtheir own private cloud at home,through one of several possiblehardware options.Previously reserved for high-endmarkets, Network-AttachedStorage (NAS) systems havebecome increasingly common,particularly as consumers migratefrom desktop PCs to notebooksand tablets, since withouta desktop computer, there is nonatural place for large amountsof storage at home.The simplest options involvehard drives attached directlyto the router that distributesbroadband throughout thehome. Installing and provisioninga full-fledged stand-aloneNAS system, however, is likelynot an option for most customers.Such systems require additionalbackup in case of failure,and accessing the data whennot at home requires a robusthousehold broadband connectionand relatively complexsetup procedures.Some consumer-oriented companiesprovide solutions; for example,Apple’s Time Capsule andvideo-sharing programs, builtinto its operating system, automaticallymaintain a hard-drive<strong>June</strong> <strong>2012</strong>www.teletimesinternational.com37


ackup and device-to-devicesynchronisation, keeping trackof terabytes of data with minimalattention. But Time Capsule,too, requires some knowledgeto set up. Moreover, as computers,tablets, and smartphonesproliferate, many consumers willlack the skill and time requiredto maintain, in effect, a complexhome-based data server systemfor their families. And just thepower needed by a NAS systemmay cost as much as $200 a year.Local Versus Global DeliveryThe market dynamics of cloudinfrastructure, the network ofhardware and connections thatgives people access to storage,are quite different from those ofcloud services—the range of servicesand software that peopleuse when online. Thus, the raceto provide consumer-orientedcloud infrastructure and serviceswill lead to a separation of thetwo and a restructuring of theentire cloud computing industry.“This separation can be traced tothe essentially different meansby which services and infrastructurewill need to be scaled up.Cloud service providers primarilyoffer the software that is visibleto consumers as they managetheir use of the cloud, withthe underlying infrastructuretypically hidden,” said Dany Sammour,senior associate with Booz& Company. “Because softwareby nature can scale up quicklyand globally, these providers canoperate in very specific niche environments,offering specialisedservices to relatively narrowgroups of consumers livingaround the world—and maintainquite profitable businesses as aresult.”Cloud infrastructure providersface a very different challenge.As the demand for cloud storagerises, and the business becomesincreasingly commoditised,prices will drop quickly. Companieshoping to compete in thecloud storage market will needto massively and rapidly scale uptheir data centers to maintain acompetitive cost structure.Among the requirements will beoptimised data centers greaterthan 10,000 square metreseach, dedicated solely to lowcoststorage, and co-locatedwith the broadband networkinfrastructure for maximumperformance. Providers must beable to continually expand andoptimise every aspect of theiroperations, from manpower andmaintenance to the sourcing ofequipment, space, and power.As storage increases, capitalexpenditure will continue togrow, totaling several hundredsof millions of dollars for a typicalmidsised operator.In this environment, a criticalquestion arises: Which playerswill be able to scale up their infrastructureofferings to the sizerequired, and will it be a local orglobal scale game?Operators’ Right to Win“Should operators enter thecloud infrastructure space? Theanswer is largely dependenton whether they can define forthemselves a clearly articulatedway to play and defend theirright to win by developing astrongly differentiated set ofkey capabilities in this domain,”said Sammour. “Already, someoperators have demonstratedthat they can combine theirnetwork transport capabilitieswith cloud service provisioningto differentiate themselves fromcloud infrastructure and serviceproviders that operate independentlyof the networks.”In addition to their technologicaladvantages in combining theirnetworks and cloud infrastructuresto offer higher quality at alower cost, operators could alsobring to bear their deep understandingof the local market andcustomer base.They have an established billingrelationship with their customers,allowing them to adapt theirofferings to different segmentsto secure customer satisfactionand retention. Indeed, operatorstypically know how to segmentand address their customers,they have a good reputationfor managing large-scale secureinfrastructure, and they can flexiblyadapt to local legislation andregulation.Overall, the combination ofcloud and network infrastructuremanagement with a goodunderstanding of the customerand the local market situationgives operators a clear right towin in offering consumer-centriccloud infrastructure.Executing the Way to PlayNetwork operators need tomove fast and be decisive indefining their optimal way toplay in the cloud. How they doso will ultimately depend ontheir market footprint, geography,network infrastructure, andcustomer base.“They must also be specific indefining a way to play that givesthem a clearly articulated rightto win. The way to play for anincumbent national operator willdiffer from that of a mobile lowcostchallenger. The value lies inbuilding a coherent, differentiatedset of capabilities and gettingthe timing of the scale-upright, a choice that will dependgreatly on how well a playerunderstands its local markets,”El-Darwiche said.Key Tips for CloudOperators should begin byassuming that very few cloudservice providers will be willingor able to take the risk to scaleup their own cloud infrastructuresto the degree required.They need to take a three- tofive-year perspective in buildingtheir scalable cloud infrastructure.Then they have to be readyto open this cloud infrastructureand operating model to thirdparties based on well-definedopen interfaces.Operators must also clearly differentiatetheir consumer cloudofferings from any corporatepublic cloud services.Operators must invest in upsellingcapabilities for their cloudinfrastructure that will enablethem to add revenue per monthto their existing revenue basefor some 10-20% of their keycustomers, while selling moreincremental services to theremaining customer base.Operators need to be ready toscale up their offerings to terabytesof storage for millions ofusers, if required, while maintainingan attractive cost structurethroughout the scale-up. Thiswill require investing in substantialoperational capabilities inscaling up cloud infrastructure.Operators need to get the timingof the scale-up right. Thenthey must make sure they havethe strategic suppliers in placeto ensure access to additionalhardware, space, power, andthe like.To gain a clear right to winin the residential cloudspace, operators mustcombine their cloud andnetwork infrastructures ina differentiating way andwith a focus on their specificgeography, markets, and relatedcustomer segments. They mustdevelop clear answers to thefollowing questions:● When should I invest incloud infrastructure, and towhat extent?● How can I best leverage networkinfrastructure togetherwith the cloud?● On which segments should Ifocus initially, and in the longrun?● Which services should I provideon my own, and withwhom should I partner?● Which do I need to invest inand develop?38 www.teletimesinternational.com<strong>June</strong> <strong>2012</strong>


The hidden costs of cloudDave PauldingAnalysts forecast that overthe next three to five yearsthe market for cloud-basedcontact centre solutions willgrow at a rate of about 18%to 20%. Compare that to thegrowth of premise solutions,which is in the low single digitsand forecast to plateau or evendiminish over the same period.It is therefore essential to beaware of what is hidden behindthe cloud cover.When cloud computing firstmoved on to the IT horizon,many of the headlines focusedon how this future hostingoption would save businessesmoney. Experts and vendorsalike touted the potentialsavings that cloud solutionscould offer to companies.However, as with most thingsin IT, the picture became lessclear the closer you got to it.In fact, as many businesseshave since discovered therecan potentially be a numberof hidden costs to cloudcomputing that may lead to anoverall increase in expenditure.Cloud computing certainlyhas far less costs than thetraditional way of acquiringtechnology – for a start, itremoves the range of expensesassociated with on premiseand IT communicationssystems. However, to reapthe significant cost savingsthat cloud solutions can bring,businesses need to adopta cautious approach whenchoosing a provider and beclear about every upfront andongoing cost associated withit. Choosing the right service isvital to not only save costs, butalso to improve their visibilityand predictability.When a company signs up fora cloud computing service,the most common contractsare for a set cost per user permonth, for a fixed duration.Ideally, any so-called ‘hiddencosts’ that might be expectedfrom a service should beincluded in this rate.Having a fixed manageablecost is a very attractiveproposition for CFOs, thebudget visibility makes it veryeasy for companies to predicttheir monthly IT spend and isideal for today’s cost consciousbusinesses.The industry’s most successfulcloud computing providersare flourishing, not onlybecause of the benefits oftheir products but becausethey offer a fixed financialmodel for organisations to takeadvantage of. The key is thatproviders still provide a knownfixed price for any bespokework.This is one of the areas wheremany of the cost ‘surprises’tend to creep in - when acompany wants to changeits contract, whether it ismoving premises or increasingor decreasing the numberof users, or expanding andadding more services. It’s notabout the usage costs – thehidden costs come in with anyintegration or developmentwhich may be required, in fact,any kind of customisation ofthe solution.Some providers are not clearabout such costs and thesecould be ongoing dependingon the nature of the solution.True cloud based applicationsshould allow the user tomanage and administer anychanges to cut out the neverendingdeveloping, integrationand adaptation costs.One way of doing this is forvendors to limit the amount ofcustomizations and changes tothe system to keep costs downand therefore ensure that thecost passed on to the customeris lower. It makes it easier tomaintain multiple customers onthe same hosted platform. Ifthey’ve all got different, uniquerequirements it is inevitablymore complex and costly tomanage.Other common hiddencosts which can fall outsideof the normal monthlysubscription fees could rangefrom something as simpleas telephone costs, whichare determined by how thesystem is designed and howthe business connects to thesolution, to data retrieval, orto something more significantlike purchasing additionalbandwidth to increase internettraffic.Cloud services obviously relyon fast and reliable broadbandconnectivity. A slow servicecould have a huge impact onproductivity if employees arenot able to access applicationsas quickly as they need to.Likewise, if connectivity islost, then work is likely tocome to a standstill. Both ofthese scenarios have to beconsidered carefully whenlooking at the service offeredby an ISP and what they chargefor the bandwidth required touse the cloud.So clearly, the hidden coststhat businesses need to beaware of are not just aboutproviders offering transparentpricing, it is just as important toconsider the impact the cloudservice can have upon businessoperations. Not all clouds arethe same and businesses needto examine how a service isdelivered, as this can have agreat impact on control, whichin itself is costly.As cloud applications andtheir underlying architecturalplatforms become morerobust, so too will discussionsaround the ‘true’ costs ofthe business systems thatincorporate them. CIOs andC- level executives involved inthe decision to migrate to thecloud need to make sure theyfully understand the up frontand ongoing costs involved.The fixed monthly or yearlycosts may be black andwhite but the cost for setup, implementation andcustomization is still largely agrey area for several providers.Businesses don’t need thisadditional financial black cloudhanging over them, everysingle cost should be fullydocumented and understoodso there are no hiddensurprises.<strong>June</strong> <strong>2012</strong>www.teletimesinternational.com39


IT set to sparkle with synthetic diamondsThe synthetic-diamondproducer Element Six hasopened its first manufacturingfacility in Silicon Valley. Thecompany, which is part of theDe Beers group, said that thefacility has been constructed indirect response to a growingdemand in the United Statesfor synthetic diamonds to beused in advanced technologyapplications.The plant, which is in SantaClara, will serve Silicon Valley'sgrowing information technology(IT) industry. Synthetic diamondshave thermal conductivityand electrical properties thatwill enable what Element Sixbelieves will be a "step change"in semiconductor efficiency,allowing the creation of a wholenew generation of consumer ITdevices.The heat generated by siliconsemiconductor chips is a majorlimitation on the design andfunctionality of today's smartphones,laptops and computertablets. For example, much ofthe battery power and weightof many of today's high-endand low-end laptop computersis accounted for by the coolingsystems needed for siliconsemiconductors.In addition to powering a newrange of consumer devices,semiconductors using diamondswill provide additional technologybenefits. Diamond semiconductorscan, for example,be used to power applicationsusing extremely complex quantummathematics to generateencryption codes. These can beused to create mobile communicationsthat could be effectivelyimmune to eavesdropping.This application is likely to havegreat appeal not only for militaryuse but also for the businessmarket. Much to the chagrin ofthe IT industry, some companieshave become increasingly waryof using mobile communicationsnetworks to convey financialor other sensitive information,owing to the growing problemsof cyber fraud and industrialespionage. Quantum encryptioncould reassure them.According to a report onthe global diamond industryproduced by the internationalbusiness consulting firm Bain &Company, the key advantage ofsynthetic over natural diamondsis that manufacturers cancontrol their properties of hardness,thermal conductivity andelectron mobility.However, so far, many majorfirms of IT analysts, still firmlyfocused on Facebook's recentcontroversial public listing, arefailing to take account of someof the major changes about todisrupt the global technologyindustry.Other innovative applications ofsynthetic diamonds' propertiesinclude environmentally friendlywater-treatment systems. Asmall electrical current passingthrough a diamond can generateozone in water, which cleansmore powerfully than bleachbut is regarded as completelyenvironmentally friendly.Synthetic diamonds can evenhelp the blind to see.A diamond electrode in a semiconductorcan be implanted onthe retina of a damaged eye totranslate images from a cameraon a special pair of glasses intoelectrical impulses stimulatingYash Pandey, a business manager at Element Six, displays asynthetic-diamond tweeter used in the Bowers & Wilkins 800Series Diamond loudspeakers at the company's syntheticdiamondmanufacturing facility in Santa Clara, California.the optical nerve. Other medicaluses could include portablemagnetic resonance imagingscanners for remote or developingregions.Element Six's1,858-square-metrefacility is capable of duplicatingone of the world's mostprecious compounds. Naturaldiamonds are produced overmillions years by the pressurewithin the Earth.But the new Element Six plantcreates pressure artificially. Thesynthetic diamond producercompares the process to turningthe Eiffel Tower in Paris on itshead to apply its vast weight toa cola can.Already a world leader inthe production of industrialdiamonds, Element Six, whichhas an annual turnover ofUS$500,000 (Dh1.8 million),is understood to be settingaside 7 percent of its revenuefor research and developmentinto new uses for syntheticdiamonds.The company has also announcedthe construction ofwhat it claims will be the world'slargest and most sophisticatedsynthetic-diamond research anddevelopment facility, in Oxford,England.Analysts should pay close attentionto the fact that Element Sixis part of the De Beers group ofcompanies. De Beers dominatesthe world market in natural diamondsand has traditionally hada vested interest in opposingthe acceleration of developmentof synthetic diamonds. But,by trying to stake out a majorchunk of the synthetic-diamondmarket early on, De Beers haseffectively admitted that themarket for synthetic diamondsis set to grow as IT manufacturersembrace the new supermaterial.Diamonds can be manufacturedartificially in great quantity.However, as yet there has beenno consumer-led demand forsynthetic diamonds as today theprice of a synthetic diamond canbe many times that of a naturalgem. But according to Bain &Company, as the price of syntheticdiamonds comes down,a new generation of consumersmay come to accept the newproduct.Before this happens, the diamondswill, however, be usedextensively in mobile devices.As the IT industry starts toevolve from the silicon to thediamond age, analysts shouldalso pay closer attention to theprogress being made by DeBeers' competitors in this field.These include Sumitomo Electricin Japan and Henan HuangheWhirlwind and Zhengzhou Sino-Crystal Diamond in China andApollo Diamonds in the US.40 www.teletimesinternational.com<strong>June</strong> <strong>2012</strong>


Joan EngebretsonDriving MobileBackhaul inLatin AmericaTellabs is a cornerstoneof Telegonica's LACmobile backhaulnetworkIn addition to being thedominant service providerin Spain, Telefonica is astrong player in numerousother markets, includingLatin America, where it hasextensive wireless and wirelineoperations.In Latin America, Telefonicahas rolled out 3G service inall of its properties. As partof that process the carrierneeded to upgrade its backhaulinfrastructure, which previouslyrelied on TDM circuits, basingthe network instead on amixture of TDM and Ethernetconnectivity.A key element of Telefonica’sbackhaul infrastructure is theTellabs® 8600 Managed EdgeSystem, which is based onIP/MPLS/Ethernet. Tellabs isone of two mobile backhaulplatform suppliers in Peru,where Telefonica deployed3G beginning in 2008. Tellabs’backhaul solution plays asignificant role as it providesbackhaul infrastructure forQuito, the capital of Ecuador.In Argentina, where the Tellabsequipment was deployed in2009, Tellabs backhaul elementsare present in Buenos Aires aswell as other provincial regions.More recently, Tellabs againwon a bid for backhaul networkinfrastructure from Telefonica,this time in Brazil, where Tellabswas one of three vendorschosen to provide backhaulinfrastructure for the largemarket. That project beganin 2011 and has now beencompleted.Telefonica chose Tellabs inlarge part because of theflexibility of the Tellabs 8600system, including its ability tosupport both TDM and Ethernetconnectivity. Telefonica wantedto use Ethernet to support dataservices on its 3G network.Ethernet would enable thecompany to be able to quicklyupgrade bandwidth to individualcell sites to support heavy datausage where needed.“A heavy user can [generate]90% of the traffic at a singlebase station,” says CayetanoCarbajo, Director of Technologyand Planning — Transport,Core, Service Platforms andMobile Devices for TelefonicaCorporation. “You have to reactto this increase in traffic in somecells and not others.”The Tellabs 8600 systemis well-suited to meet thisrequirement because it providesa high degree of flexibility, Mr.Carbajo said. “You can changemost [parameters] remotelyand configure the network indifferent ways,” he explained.Telefonica couldn’t relytotally on Ethernet becauseits pre-existing 2G networkwas designed specifically towork over TDM. Also, thecarrier had deployed differentversions of the 3G standardsin different markets — asituation that occurred in partbecause Telefonica acquired theoperations with very different<strong>June</strong> <strong>2012</strong>www.teletimesinternational.com41


legacy.In some markets, the companyneeded to support the R99version of the 3GPP standard,where all Node B base stationsare based on ATM. In othermarkets the carrier needed tosupport the R4 or R5 versions of3GPP. With R4, voice is deliveredvia ATM but data is in Ethernetform, while with R5, data andvoice are both Ethernet.“God built the world in sevendays because he had no legacy,”joked Mr. Carbajo. “ATM will beneeded in our backhaul networkfor a while, although the needwill be smaller [over time].”In this environment, Telefonicahas found the Tellabs 8600system to be a suitable platformbecause of its flexibility intransmission methods andinterfaces, and because Tellabsprovides an advanced endto-endnetwork manager,the Tellabs® 8000 IntelligentNetwork Manager. Mr. Carbajosaid the Tellabs 8600 system,together with the Tellabs 8000INM, provide interoperabilitywith many wireless equipmentproviders, which enablesTelefonica to have a wirelessmultivendor ecosystem. Thisincludes 2G, 3G and, in thefuture, LTE providers as wellas equipment vendors forPDH, SDH, Ethernet and IPconnectivity.A strong local organizationTelefonica likes the capabilitiesof the Tellabs 8000 INM, whichis used to monitor and controlthe Tellabs 8600 network.“One of the key advantagesof Tellabs is the capability ofits management system,” saidMr. Carbajo. “Not only canit manage different networkelements, it can monitor thetransmission between theelements.”That capability, Mr. Carbajosaid, is useful “not only wherethe network is [owned andoperated by] Telefonica butalso where we need to useservice from another carrier.”Telefonica has service levelagreements with these othercarriers, and the Tellabs 8000INM enables the company toconfirm whether the underlyingcarriers are meeting their SLArequirements.Before making the decision touse the Tellabs 8600 system,Telefonica put the productthrough a wide range oflaboratory and field tests.Because Tellabs had a stronglocal presence, the carrier wascomfortable that Tellabs wouldbe able to address any issues"Telefonica couldn’t rely totally onEthernet because its pre-existing 2Gnetwork was designed specifically towork over TDM."that might arise.“You have to have a powerfulpartner with the right localorganization to deal with anyissues we have in the field,and Tellabs has a strong localorganization,” Mr. Carbajo said.Moving forwardTelefonica’s next step inLatin America will be LTE, buthow soon that technology isdeployed will vary from onemarket to another.“First you have to have maturityin all of the elements — networkand devices — and youhave to have the market need,”said Mr. Carbajo. “Some of ourmarkets are more ready thanothers. And in Latin America wehave no spectrum to deploy LTEin some of our operations.”When it is deployed, LTE will putadditional demands on Telefonica’sbackhaul network. AsMr. Carbajo noted, a high-speedbackhaul network can help differentiatea carrier’s offering byenabling the carrier to supporthigher speeds to end users.“The impact of backhaul will behuge and our needs will grow,”said Mr. Carbajo.For LTE backhaul networks tomeet their full potential, however,they will need to supportquality-of-service capabilities— a requirement that doesn’texist at present. “In backhaulnetworks today, you have noend-to-end quality of service,”Mr. Carbajo said. But in the future,he said, that capability willbe a key element.In the future, Mr. Carbajo envisionsopportunities to expandTelefonica’s use of Tellabs equipmentto support other networkinitiatives. “Tellabs could bea credible supplier for otherareas,” said Mr. Carbajo. “Theyhave a global portfolio andthere could be advantages touse the same provider in severallayers.”42 www.teletimesinternational.com<strong>June</strong> <strong>2012</strong>


Winners of European IT ExcellenceAwards <strong>2012</strong> announcedIT Europa, the leading EuropeanIT publisher and marketintelligence organisation hasannounced the winners of theEuropean IT Excellence Awards<strong>2012</strong> - the pan-Europeanawards event for IT and Telecomschannels. The finalistswere honoured at a celebrationdinner at the SheratonPark Lane Hotel, London.The European IT ExcellenceAwards are the only pan-Europeanawards which recognisethe crucial role that SolutionProviders and Systems Integratorsplay in the delivery of realworld solutions, and attractedentries from 23 countries.Entries were submitted by thesolution providers themselvesdescribing the solution providedand each had to be supportedby an endorsement bythe client. 49 companies from17 countries made the finals.The winners were selected byan independent panel of consultantsand editors.The most successful companyat the awards was Siveco Romaniawho scooped both theCitizen Engagement Solutionof the Year and the IT InnovationSolution of the Year, bothin the Government sectionof the awards. The award forEuropean Distributor of theyear went to InfoQuest Technologiesfrom Greece, ServiceProvider of the Year to IntY,European Hardware Vendor ofthe year was awarded to Delland Software Vendor of theYear to AvePoint.“The quality of all the entrieswas extremely high and thejudges had a tough job decidingon the winners,” statedJohn Chapman, Editorial Directorat IT Europa. “Each yearwe are encouraged by thetremendous enthusiasm fromthe channel for such an awardsevent and by the real skill andingenuity demonstrated in developingand implementing themost innovative of solutions.”The awards categories weredivided into two main groups:the Solution Provider categorieswere for complete solutionsprovided by the channelfor SMBs, Enterprise sizedorganisations and governmentagencies as well as specialcategories for mobility andmanaged services. The suppliercategories for which channelcompanies nominated theirdistributors, service providersand vendors for the supportprovided through their channelprograms.In congratulating the winners,Alan Norman, ManagingDirector of IT Europa said: “theoverall quality of entries wasextremely high and demonstratedthe depth of talent inthe channel community acrossEurope. I congratulate all thewinners and wish them and allthe finalists every success inthe year ahead.”<strong>June</strong> <strong>2012</strong>www.teletimesinternational.com43


Ericsson and ZTE add "anti-dumping" statementsEricsson and ZTE have providedstatements followingreports that the EC is to investigatewhether Chinese telecomsvendors are benefiting fromstate subsidies to "dump" telcoequipment at below cost withinthe 27 member states of the EU.This is a tricky area for theEuropean vendors, who don'tappear to have much appetiteto be seen lining up on one sideof a trade battle against a keyexport market.Ericsson calls for open and fairexport financing, and for the EUbodies to join international effortsto establish internatiobnalguidelines. It's a statement thatleaves room for an interpretationthat it does desire greaterclarity over export guarantees- but it makes it clear it wants tosee that from all parties and inno way mentions the Chinesevendors, or even the supposedEC investigation.Ericsson ramps up NFC appmanagement serviceTeams up with Aconite tohelp banks and other customersget their wallets insideNFC-enabled phones. Paymentsgiant Ericsson wants to be akey intermediary between operators– who provide a 'secureelement' in their SIMs for NFCpayments – and the financialorganisations that want theirapps to be located there. It'sset up a 'Trusted Service Manager'service to do just this.The deal with Aconitewas signed to beef up theproposition. Aconite makessoftware for managingbusiness apps on chips in smartcards, tokens or mobiles. Now,its Aconite Mobile ApplicationManager will be integratedinto the Trusted ServiceManager offering. The partnerssay banks are the primarytarget, along with firms withapps based around access, ID,loyalty, ticketing and proximitymarketing.They claim their solution enablesan issuer to create a securitydomain within the secureelement of a NFC handset andto load, personalize, update ordelete applets on that domain.Richard Anell, head of Ericsson'sIPX business, said: "TheEricsson TSM platform lowersthe barriers of entry to the contactlessecosystem for issuers.We feel this collaboration is awinning combination and lookforward to meet financial institutions'requirements in themobile payments space".Swedish telecommunicationsequipment and Aservices provider, Ericsson, hasdecided to set up an office inYangon, Myanmar this month.With an estimated populationof over 60 million, only onemillion enjoy the use of mobilephones and around 400,000people have internet access,no one can deny that there’sa future business potential fortelecommunications sector inMyanmar.According to Nomura Securities,with only 4 percent wirelesspenetration and 3 percentfixed, Myanmar is consideredone of the last untapped telecommunicationmarkets in theAsia Pacific region. However, anew telecom law which couldallow up to 5 licenses of director indirect foreign operatorsZTE's statement answers themain charge in its final sentence,and also makes mention of itsstatus as a listed company, asit tends to do when challengedover any possible issues ofcorporate governance. (Huaweiis privately owned)In the interests of fairness,please note that Ericsson didrespond to our request forcomment - which was just toolate for our initial publicaiton.We have held its statement overfor this follow-up.Ericsson's statement:“Ericsson, the global leader inthe mobile communicationsbusiness, believes trade differencesshould be discussed andhandled in a spirit of mutualrespect and equality.Officially supported exportcredits play an important rolein the global telecoms equipmentmarket, often required bybuyers. To ensure non-discriminatoryglobal competition it istherefore key that Governmentsof telecom vendor countriesfully align their export creditregimes to international norms,primarily the WTO rules and theOECD Consensus Agreement.Our policy is for open, free andunrestricted trade and globalsupply chains, benefitting endusersand societies. The recentagreement between USA andChina to seek to establish trulyinternational guidelines onthe provision of official exportfinancing is a welcome step.Ericsson encourages also otherGovernments, including theEuropean Union, to join thisinternational effort to secure alegislation that does not harmEuropean industry sectorsincluding telecoms, competitiveness,consumers and society.Otherwise there is a risk thatEurope’s trade relationship witha major trading partner is damaged.”ZTE statement ever the issue:"We are aware of the recentmedia report mention that theEU is preparing to start a tradecase against ZTE and Huawei,however we have not beencontacted by any authorityabout this. As a public companylisted on both the HongKong and Shenzhen stockexchanges, ZTE is committedto transparent operationsand being in full conformitywith trading regulations ofthe WTO and local markets.Moreover, ZTE has been successfulin global markets withits innovative design, qualityservice and its ability to customiseproducts for clients atshort notice. ZTE receives noillegal or hidden subsidies, nordoes it dump products in anymarkets where it operates."Ericsson to expand in Myanmarparticipation, is currently in afinal stage of drafting. The telecomsector in Myanmar, thus,is likely to be on the radar formost telecos for incrementalinvestment.The government is nowtargeting 50 percent wirelesspenetration by 2015, implying a50 percent Compound AnnualGrowth Rate (CAGR). At themoment, there is no foreign operatorin Myanmar. A few Thaiand Chinese companies such asHuawei and ZTE provide telecom/satellite equipment. Thesize of Myanmar's population isclose to Thailand's, where thecombined market cap of thetop-3 operators is US$23 billion."Telecommunications is on topof the agenda in Myanmar inorder attract the much neededforeign investment.44 www.teletimesinternational.com<strong>June</strong> <strong>2012</strong>


Arab Advisors Group Report -Remote banking services adoptionin KSAnew report from the ArabA Advisors Group analyzesthe remote banking servicesof the 18 registered commercialbanks in Saudi Arabia. Theanalysis revealed that 15 banksoffer Internet banking services,5 banks offer mobile bankingservices and 15 out of the 18registered commercial banks inSaudi Arabia offer SMS bankingservices.The analysis of the remotebanking services in Saudi Arabiarevealed that banks in SaudiArabia offer 31 Internet bankingservices, 13 mobile bankingservices and 15 SMS bankingservices.The Arab Advisors Groupanalyzed the remote bankingservices offered by the all of the18 registered commercial banksin Saudi Arabia: Al Rajhi Bank,Banque Saudi Fransi, SambaFinancial Group, Bank AlBilad,Bank Aljazira, National CommercialBank, Saudi British Bank,Saudi Investment Bank, AlinmaBank, Riyad Bank, Saudi HollandiBank, Arab National Bank,Emirates NBD, Muscat Bank,National Bank of Kuwait, StateBank of India, National Bankof Pakistan and T.C.ZIRRATBANKASI A.S..This new report on, “Remotebanking services in Saudi Arabia”was released to the ArabAdvisors Group’s TelecomsStrategic Research Servicesubscribers in April. This reportcan be purchased from theArab Advisors Group for onlyUS$ 950. The 36-page report,which has 44 detailed exhibits,provides a comprehensiveanalysis of the remote bankingservices offered by the 18registered commercial banks inSaudi Arabia. Mr. Anas Elayyan,Arab Advisors Group ResearchAnalyst commented.“View / download accountstatements and Funds transfersservices were provided by the15 banks that offered Internetbanking services, while onlyView / download account statementsservice was offered bythe 5 banks that offered mobilebanking services. SMS notificationsservice was offered by 15out of the 18 studied banks.”Mr. Elayyan added.Any investment in this reportwill count towards attendingArab Advisors' "The 2nd SmartHandheld Summit <strong>2012</strong>" onNovember 26 & 27, <strong>2012</strong> at TheAddress Dubai Marina Hotelin Dubai - UAE. Telecom andMedia operators can send up to2 delegates at no charge. Pressmembers can also attend at nocharge.The Arab Advisors Group’steam of analysts in the regionhas produced close to 2,950reports on the Arab World’scommunications and mediamarkets. To date, Arab AdvisorsGroup has served 665 globaland regional companies byproviding reliable researchanalysis and forecasts of Arabcommunications markets tothese clients.Global LTE subs to surge past 40m in <strong>2012</strong>Global LTE subscriptionsare expected to exceed40 million by the end of <strong>2012</strong>,representing a fourfold increaseover the nine million global LTEsubscriptions in 2011.The wide range of expectedLTE smart-phone launches in<strong>2012</strong> from major OEMs such asNokia, Samsung, and Apple,as well as the surge in dataconsumption, are the maincauses behind the rise in LTEsubscriptions.Currently, the North Americanregion accounts for 60% of totalLTE subscriptions, followed bythe Asia-Pacific region at 37%.However, Asia-Pacific LTEsubscriptions are expectedto overtake North Americaby 2014, primarily driven byadoption in China, India, Japan,and South Korea.“South Korea and Japanare witnessing amazing LTEsubscription growth due tothe availability of high-qualitycontent, enabling the countriesto be the next largest LTEmarkets after the US,” said YingKang Tan, research associate,ABI Research . “Having LTE dataplans priced on par with 3Gdata plans were a major factorthat accelerated the migrationover to LTE.”The Asia-Pacific will also be themain growth engine for TD-LTE.Global TD-LTE subscriptionnumbers will grow from onemillion subscriptions at theend of <strong>2012</strong> to 139 millionsubscriptions by 2017. China,India, and Japan are collectivelyforecasted to account for 92million TD-LTE subscriptions.However, Dan Shey, mobileservices practice director, ABIResearch, added that spectrumfragmentation remains themain obstacle preventingLTE subscribership in theAsia-Pacific region “to go fullthrottle”.“With LTE deployed in morethan five spectrum bands, itcreates additional costs forhandset OEMs to developan LTE smartphone for everyband,” he said.ABI Research’s “MobileSubscriber Market Data,Global” is part of a quarterlymarket data series that trackskey worldwide subscriptiontrends by quarter, by operator,for 120 markets.<strong>June</strong> <strong>2012</strong>www.teletimesinternational.com45


Thuraya enhances IP services in Asiavia Point Of Presence in SingaporeThuraya TelecommunicationsCompany, the leadinginternational mobile satelliteoperator has announced that ithas established a Point Of Presence(POP) and Meet Me Point(MMP) in Singapore, enhancingthe performance of its highspeedbroadband terminal,Thuraya IP, in the region. ThePOP guarantees IP consumers,especially mediabroadcasters, faster andcost effective streamingservices from the remotestlocation to newsroomsand data centers anywherein Asia.Thuraya has deployed theinfrastructure to allowits Asian consumers tostreamline and relay encrypteddata to end destinations withguaranteed service quality.“We have installed directleased lines from our PrimaryGateway in the United ArabHuawei has announced atthe <strong>2012</strong> LTE World Summita new company vision,"BON" (Business, Operationand Network), for focusing onmobile broadband (MBB) userexperience.BON was introduced in aspeech given by Xu Weizhong,Huawei President of PacketCore Networks for the WirelessNetwork Business Unit.He said:"The biggest value ofLTE networks are the improvementsthey bring to end userexperience. The EPC (EvolvedPacket Core) is the key point ofloading and managing all LTEEmirates to Singapore,” confirmedThuraya’s Chief ExecutiveOfficer, Mr. Samer Halawi.“Now streaming traffic fromAsia will be routed to our SingaporePOP, which has dedicatedend-to-end links, enablingfaster streaming and betterupload and download speeds.This facility together with theAsymmetric Streaming capabilitymakes Thuraya’s IP servicesextremely cost effective, sinceour customers pay only for thelast mile connectivity to thePOP from their studios in theregion,” he concluded.At just half the size of a laptop,Thuraya IP is the smallest andmost powerful satellite dataterminal in the world, deliveringan ideal 384 kbps streamingand 444 kbps standardIP. It guarantees instant live,store and forward video/audiostreaming when teamedwith media IP applicationssuch as Quicklink,Streambox andLivewire.Thuraya IP’s AsymmetricStreaming functionalityenables mediateams to adjust speedsaccording to bandwidthusage, ensuring instantsavings of up to 40% incomparison with other broadbandsolutions. In addition,Thuraya offers flexible pricingoptions as part of its Shareplanpackage that permit sharingof airtime allowances under aHuawei, announces 'BON' to builduser experience-centric LTE networkservices and ensuring end-toenduser experience." Huaweicreated BON to help builduser experience-centric LTEnetworks and help operatorssuccessfully deploy new futureorientatedtechnologies.For the "Business" part of BON,the idea is to build up open networksand open services. As anexample, by opening networkinfo to the end user, like networkspeeds, network availability(for GPRS, UMTS, LTE andWiFi) as well as subscriptionstatus, users are free to monitornetwork quality themselves,and potentially buy specificSamer Halawisingle subscription across allThuraya voice and data devices,further reducing costs.Packing the power of a largeOB van and a technician ina single A-5 sized terminal,Thuraya IP removes the needto book large chunks of unneededsatellite capacity inadvance. It is equipped witha built-in antenna and can befitted with multiple externalantennas – fixed, vehicular andmaritime – depending on userrequirements. Journalists needonly point Thuraya IP towardsthe satellite, wait for the networkacquisition signal, whichhappens in seconds, and plugwirelessly into their laptop tocommence operations.Xu Weizhongsubscription packages based onusage needs and wants. Huaweidemonstrated its Networkersolution based on the SingleEPCnetwork solution during the<strong>2012</strong> Mobile World Congressto realize the aforementionedrequirements to definitivelyimprove user experience.For the "Operation" part ofBON, Huawei created modelsfor KPIs (Key PerformanceIndicator) and CEIs (CustomerExperience Indicator) to improveuser experience. Forthe "Network" part of BON,Huawei is committed to deploysolutions that support ultrabroadband,zero-waiting andubiquitous connectivity to easenetwork bandwidth bottlenecksand ensure end-to-enduser experience.46 www.teletimesinternational.com<strong>June</strong> <strong>2012</strong>


Hadi Raad and Mahmoud MakkiReinventing TVGulf residents are pioneersof an important change intelevision watching, one thatcould redefine the medium andpose tremendous challenges tocommunications and entertainmentcompanies.Instead of settling for what TVhas to offer, Gulf residents aredemanding more and gettingit through Over-The-Topvideo (OTTv), which involvesusing the internet to streamcontent directly to handhelddevices, game consoles, andTVs connected to broadband.For consumers in the region,this means options are almostunlimited. For companies, thisrequires new ways of lookingat how content is packaged,delivered and profited from.Internet subscribers in theMiddle East rank numberone when it comes to digitalvideo consumption, based onYouTube viewings. Improvingconnection speeds and theability to pull content directlyonto devices has fueled this.Indeed, recent surveys indicatethat watching online videoin the region is becoming ascommon as sending email.Saudi Arabia famously hasthe world’s largest amountof YouTube downloads ontomobile devices. IDC, the ICTmarket research firm, hasfound that roughly half ofall internet users worldwidehave plans to buy a tabletin the near-future, furthercontributing the popularity ofOver-The-Top video.Overall, OTTv could growfrom using around 30% ofglobal consumer broadbandtraffic to over 50% by 2014,with the ratio in the Gulfeven exceeding 60%. Thisdoesn’t mean that televisionis dead. What consumerswant is interaction, not areplacement for existing TVservices. Thanks to the cultureof multi-tasking, consumersare supplementing theircurrent viewing. Most OTTvconsumers still spend the bulkof their media time in front ofthe TV. However, accordingto a recent survey, more than30% of them go online whilewatching, whether to accesson-demand content, to searchfor their favorite titles, writerecommendations, commenton live TV shows with theirfriends on social networks, orto upload their own content tothe internet.With all these choices at theirfingertips, Gulf consumersare challenging content andservice providers in five keyways. First, selected audiencesegments and communitiesneed targeted, relevantcontent. Second, consumersneed defined platforms,such as scheduled videoplayback, on-demand, or acombination. Third, consumerswant content they can accessacross their range of devices,including gaming consoles,Internet-connected TVs, smartphones, and tablets. Fourth,spoilt for choice, consumersneed companies to identifythe relevant content andgenres—such as premium,back catalogue, or niche. Fifth,given how easily consumerscan access content, operatorswill have to carefully pickthe business model that fitsbest with market demand:ad-sponsored, pay-per-view,subscription, or hybrid.Companies that meet thesechallenges will have somethingto offer Gulf consumers.Already Hulu in the USprovides an example of how toplay in the OTTv market. Huluhas a value proposition thatoffers HD movies and TV serieswith targeted advertising ofonly two minutes per show—compared to eight minuteson traditional TV channels.The company suppliescontent mainly throughPCs and laptops. It offers ahybrid “freemium” model ofadvertisement-based accessand an upgrade subscriptionmodel. Hulu had 31 millionunique viewers per month byFebruary <strong>2012</strong>, each consumingan average of 227 minutesof content, and has beenprofitable since late 2009.Gulf consumers, however,will not make it easy forproviders. Many consumerswant OTTv cheap or evenfree, especially as they canget rich content from piracyor from the region’s “free toair” TV channels that are easilyaccessible. On the other hand,while high-speed broadbandavailability remains limited,most operators are quicklydeploying next generationnetworks that will boostbroadband penetration. Asbroadband is the backbone forInternet TV and OTTv, theseinvestments will lay the groundfor further OTTv growth.Similarly the use of creditcards is still relatively low inthe region, as is spending onads, which combined can makeit difficult for providers togenerate ROI.Companies can surmountthese challenges and can turncontent hungry consumersinto paying customers. Tosucceed, they will have toattract traffic in entry marketand build scale with freecontent before they cangenerate profits throughinnovative business models.In the meantime, betweenbroadcast television andbroadband streaming, there’sa lot to keep viewers happy.<strong>June</strong> <strong>2012</strong>www.teletimesinternational.com47


Comptel plans to open new office in RiyadhComptel has announcedplans to open a new officein Riyadh, Kingdom of SaudiArabia, continuing its expansioninto the Middle East and Africato fulfill skyrocketing demandfor telecommunications servicesin the region.In particular, Saudi Arabia isDragonWave has announcedseveral structural adjustmentsto reflect its integrationplan for the recently-completedacquisition of Nokia SiemensNetworks' microwave transportbusiness.The company will also bemaking 68 redundancies inCanada and Israel. DragonWaveexpects to save approximatelyUS$6 million in annual operatingexpenses as a result of thisstaff reduction. DragonWaveanticipates restructuringcharges in the first quarterfiscal year 2013 as a result of theelimination of these positionsquickly becoming a central hubfor communications servicesproviders (CSP), as the regionalsubscribers are exceptionallyreceptive to advanced services.While Comptel is already wellestablishedthroughout EMEA,this expansion will make its CustomerEngagement solutionsto be approximately US$0.8million, and a one-time cashusage in the second quarter offiscal year 2013 of approximatelyUS$1.5 million.In order to support theanticipated increase inbreadth of end-customersand volumes of shipmentsresulting from the combinationof the DragonWave andNokia Siemens Networks'microwave businesses,DragonWave has established adistribution capability in Venray,Netherlands to complement itsexisting logistics capabilities inCanada and Malaysia.and its implementation andprofessional services even moreaccessible to regional CSPs,helping them meet subscriberdemands.These solutions enable CSPsto provide personalisedsubscriber interaction,build customer loyalty,DragonWave announces redundanciesfollowing NSN Microwave acquisitionIn order to better support itsexpanded global footprintDragonWave is staffing newregional subsidiaries in Mexicoand Brazil and will increasethe staff levels in certainother regional offices. Thisglobal presence will augmentthe previously-announcedservices arrangement betweenDragonWave and Nokia SiemensNetworks in Italy, and an interimservices agreement betweenthe same parties that hasbeen entered into pending thecompletion of the acquisitionof Nokia Siemens Networks'microwave transport operationscompetitive differentiation, andgenerate revenue and upsellopportunities.Comptel is announcing thisdecision just one month afteropening a new office in Egypt ,further reinforcing the rising demandfor telecommunicationsservices in EMEA.Peter Allenin China."The thrust of the actions wehave announced is to positionourselves properly to serveour global customer set, tosupport our expanded productportfolio, to accelerate therate of innovation, and toreduce costs," said Peter Allen,DragonWave's President andCEO.GlassHouse Technologies completes sale of Turkey subsidiaryAnother step in company’s strategic direction to focus on core competenciesGlassHouse Technologies, aglobal provider of vendorindependent data center consultingand managed services,has announced the completionof the sale of its Turkey subsidiary.The subsidiary has beenacquired by Emre Pekar, whohas been serving as GeneralManager of GlassHouse Turkeyprior to this transaction.“We continue to aggressivelyexecute on our stated plansPatrick Scannellto focus GlassHouse on ourcore consulting and managedservice offerings and improvingoperating margins, andthis divestiture is anothersignificant step towardsthat objective,” said PatrickScannell, President and CEOof GlassHouse Technologies.“It is exciting that Emre andthe GlassHouse Turkey teamwill continue to serve ourclients in that region, providingGeorgina Heaumecontinuity for both our clientsand our team members.”For enterprise customerschallenged by escalating datasecurity threats, cost pressureand end-user demands on theirIT environments, GlassHouse’svendor independent objectiveexpertise provides clarityamidst tremendous vendorhype for cloud, virtualisationand other infrastructuretechnologies.48 www.teletimesinternational.com<strong>June</strong> <strong>2012</strong>


Qtel to operate Pearl-Qatar networkQtel and United DevelopmentCompany (UDC),master developer of The Pearl-Qatar has signed an agreementthat will see Qtel acquire the fullcommunications infrastructureof The Pearl-Qatar, which waspreviously wholly-owned byUDC.Qtel will own and operate thenetwork, enabling residentsto enjoy voice, high-speedBroadband Internet and MozaicTV Entertainment services intheir homes and offices.With the advancedinfrastructure in place on ThePearl-Qatar, customers willbenefit from more choice andgreat value from Qtel, as thecompany continues to expandQatar’s most reliable networkacross the nation.Sheikh Saud Bin Nasser AlThani, Chief Executive Officer ofQtel Qatar, said: “ agreementwill mark another importantstep forward for Qtel and forresidents across Qatar, as westrive to offer the highest levelof service, and most advancedtechnology. Our ambition is towork to make Qatar one of thebest-connected countries inthe world, and infrastructureacquisition agreements withMTN Ghana raises funds for expansionMTN Ghana has raised asyndicated loan worth$276 million to expand itsnetwork and deploy mobilebroadband, according to areport.Michael Ikpoki, ManagingDirector of MTN Ghana, saidthat about 16 local banks, ledby Stanbic Bank Ghana, wouldprovide 410 million cedis ($215.8Michael Ikpokimillion), in addition to $60million from four foreign banks,the report added.“It was a successful syndication- the first of its kind and proofthat we do not have to bealways looking outside to raisefunds for investments,” Ikpokiwas quoted as saying.The cedi syndication wasoversubscribed by 35% whileVodafone announces low cost Android smart-phoneVodafone has announcedthe launch of what itis calling a breakthroughsmartphone for the massmarket, the Smart II handset.The Vodafone Smart II hastwice the processing powerof the most expensive andsought-after smartphonesavailable just three years ago,but at a fraction of the price.The smartphone is poweredby a Broadcom 21552with 832MHz processorand 512MB of RAM - thecomputing power of high-endsmartphones 3 years ago;It also comes with a 3.2megapixel camera with whiteLED flash, supports HSPA andWi-Fi connectivity and comeswith A-GPS for location tracking.Patrick Chomet, GroupTerminals Director said: "TheSmart II is one of the mostimportant devices we haveever introduced. It deliversa level of performance,functionality and quality thatis traditionally the preserveof high-end smartphones butat an exceptionally affordableprice. We believe the Smartpioneering developers like UDCare a key part of that process.”“Residents of The Pearl-Qatarcan be assured that Qtel willprovide them with the higheststandards of service, and widestrange of choices, so that theyenjoy communication to aworld-class standard,he added.Ebrahim Mubarak Al-Sulaiti,CEO, UDC, said: “A great dealof time and careful planningsupports this new agreement,which will provide importantadded-value for our residentsand visitors. We are pleased toconclude this agreement, andbelieve that Qtel will deliver thehighest quality of services toresidents at The Pearl-Qatar.the dollar syndication wasoversubscribed by more than90%,” Ikpoki added.Ghana is home to one of Africa’smost competitive telecomsectors with six operators. MTNGhana, a subsidiary of SouthAfrica’s MTN Group, competeswith operators includingVodafone, Millicom (Tigo) andAirtel.II could represent a tippingpoint in the evolution of themarket, bringing a new waveof consumers to the supermobileworld for the first time."The Smart II will be availableacross Vodafone markets andpartner markets this summerand will be priced under€99, launching first in the UKpriced at £70.<strong>June</strong> <strong>2012</strong>www.teletimesinternational.com49


While organizations arejudiciously deployingtheir mobile applicationstrategy, there are 10 majormistakes that cause mobilecustomer service failure,according to Gartner."The desire of many organizationsto extend their customerservice to the mobile platformmarket has led to the misconceptionthat any good applicationcan also make a goodmobile application," said JohanJacobs, research director atGartner. "IT leaders should notassume that, because all smartphoneshave browser and webaccess, their content is ready formobile devices. They need toplan for content with productsand services that are specificallysuited to the mobile channel, orusers will be left with an indifferentor poor experience."Gartner said organizationsshould develop a mobileapplication strategy thatenables them to capitalizeon the unique opportunitiespresented by mobiletechnology. There are fourareas that need to be addressedwhen developing this strategy:• Demand. What do customerswant, what does thebusiness need, what devicesand habits do customershave, and what will thecompetition do?• Supply. Innovation is a majorchallenge, demanding thatorganizations go beyond"me too" mobile applications.What staff and skillswill be needed to manageexternal partners, and howwill they be obtained? Whatservices and partners shouldbe used?Gartner identifies mistakes that leadto mobile customer service failure• Control. Who owns andmanages the strategy?How will the strategybe managed? Whatmeasurements will be usedto track it?• Risks/issues. What risks andissues are raised by mobility?What could derail thestrategy, what other factorswill impact it?"If done well, mobile solutionscan expand the channels ofcommunication with customers,employees and business partners,and can result in bettercustomer retention, increasedsales, improved employee productivity,and more," said Mr.Jacobs. "Done poorly, mobilesolutions can very easily destroyyour customer service reputation."Gartner has identified 10 majormistakes that lead to the failureof an organization's mobilecustomer service:1. Violation of the "three-click/tap/press" rule. Applicationsmust not use more thanthree key strokes to get tothe required functionality.Each additional keystroketypically adds complexityand often stops the userfrom returning to theapplication.2. Difficulty with ergonomics,especially text input. Justbecause your web contentfits onto a laptop browserscreen, this does not meanit is suitable for a mobiledevice. Mobile contentneeds to be simplified andrepurposed for each userdevice.3. Not reusing learned behaviors-- such as soft keys,navigation. Mobile applicationsneed to pick up theuser's habits on the phone.For example, if "autocomplete"was switched off onthe phone settings thendon't use that option in yourmobile application -- becausethe user clearly dislikes thatfunctionality.4. Violating "security 101." Aswith laptop and desktopapplications, mobileapplications need to complywith security requirements.Authentication, encryptionand secure login shouldall be part of any mobileapplication architecture.5. Difficulty with navigation.Standard Web pagesdisplayed on a mobiledevice often have contentdisappearing to the rightand off the bottom of thescreen. To navigate, usershave to scroll left-right andup-down to try and find basicfunctionality such as the"back" button. Ensure thatnavigation buttons can beeasily accessible at all times.6. Burying most importantfunctions. Due to thelimited screen real estate,mobile application designersmust ensure that the mostimportant functionalityis right at the start ofthe navigation journey,as opposed to layeringfunctionality deep down inthe application.7. Incorrect or illegible displayof text or graphics. Manymobile devices are still notsmartphones and havelimited graphics processingcapability. Pushing largegraphical images and videotext to the mobile devicecould result in a very poorquality experience for theuser.8. Inability to revise mistakes.Few things are as frustratingon a mobile device astrying to get the cursor tothe middle of a word orWeb address to correct atyping error. Always havetwo "back" buttons -- onethat erases text and onethat does not erase textbut will allow the user theopportunity to correct typedmistakes.9. Content visibility. Sunlight isone of the worst enemies ofmobile applications, becauseit often makes the text onthe screen illegible. Employthe best practice of "bolding"the most importantpieces of information on thescreen.10. Resource inefficiency-- draining the battery,excessive network roundtrips. Mobile applicationsmust have a stop-startcapability to allow the userto stop an activity or dataentry and then return to thesame point without havingto re-enter all the content.This capability is neededwhen the device has tobe switched off mid waythrough a transaction -- forexample, when flying orwhen the battery runs out."Capitalizing on the mobileopportunity demands that theorganization looks beyondtechnology. It must also takea strategic view and ensurethat its mobile investmentsalign with, and advance, theorganization's business strategyand goals," said Mr. Jacobs.50 www.teletimesinternational.com<strong>June</strong> <strong>2012</strong>


SingTel most respected local brand: SurveyRanked fifth overall, SingTeledged local rival StarHub(in 9th place) in the BusinessSuperbrands survey. SingaporeAirlines (6th) is the only otherSingapore homegrown brandto make it to the top 10 list ofthe survey which is dominatedby technology brands.The top three brands inSingapore, according to thesurvey, are all technologynames with SAP, IBM andMicrosoft ranked first, secondand third respectively. Canon,HP and Fuji Xerox are rankedfourth, seventh and eighthrespectively, resulting intechnology companies makingup 80 percent, or 8 out of 10,of the top 10 list of the surveycommissioned by Superbrandsand conducted by BDRC Asia."The ranking of SAP asSingapore's most respectedbusiness brand reflects itsincreasing brand value inSingapore, and in today's world,it's not so surprising to see thelist dominated by technologyrelated brands," said MarkPointer, Chief Executive Officer,Business Superbrands inSingapore."Strong B2B brands sharecommon traits: they deliver thevalue that their customers wantand expect from them, andthey fulfil their business needs,"he said. "Additionally, buildingstrong business brands helpsto shorten the buyer decisionmakingprocess and alsohelps to maintain the desiredperception of the brand overtime. So investing in building astrong brand is a very importantpart of the equation that B2Bcompanies must understand."The latest findings fromBusiness Superbrands identifiedover 200 of Singapore's mostwell-known and respectedbusiness brands across 23different product and servicescategories.The brands were then rankedaccording to the number ofbusiness decision- makersidentifying the brand as beingwell-known and respectedwithin its field and recognisedas having achieved the highestlevel of excellence.The panel making the rankingsconsisted of over 500 businesspeople identified as keydecision-makers or influencersresponsible for evaluating,purchasing or using businessservices or suppliers. Thesurvey covered a broad rangeof organisations with 13 percent of respondents workingfor the public sector, 20 percent from large Singaporeancorporations, 24 percent fromlarge foreign corporationsand 42 percent from small andmedium enterprises, whichbroadly reflects the nature ofemployment in Singapore."Within the survey, we foundthat the business peopleinfluence purchase decisionswith, on average, 3.9 differentproduct categories in theirorganisation; the most commonbeing office equipment,software, IT and telecoms. WithSingapore being a hub for theregion, business people arein contact with and influencepurchase decisions on a rangeof transport and travel relatedB2B categories," Piers Lee,Managing Director of BDRCAsia, commented."Business people also influencea range of business supportservices ranging from financialservices, HR, and businessinformation services," hesaid. "Singapore is thereforean excellent centre for B2Bproduct and service providersto build the reputations of theirbrands".SingTel user base climbed by 11%According to the latest figuresquoted by SingaporeTelecommunications Ltd (Sing-Tel), its total mobile subscriberbase grew by 11%, or 42.9 millionusers, during first quarter of<strong>2012</strong>, passing the 445 millioncustomer mark. Till March 31,<strong>2012</strong>, SingTel and its affiliatesin Asia and Africa counted 445million mobile subscribers, upfrom around 402.5 million anyear earlier. SingTel is South-EastAsia’s biggest telecoms groupby revenues and users, operatingin eight major markets in theregion – Australia, Bangladesh,India, Indonesia, Pakistan, thePhilippines, Singapore andThailand.SingTel said the strong growthin contract users was driven byincreased demand for smartphones and data SIMs forintegrated mobile broadbandbundles. Meanwhile, the unit’spre-paid base also rose by 6.7%to 1.63 million on the back of risingsales of 3G products – suchas 3G SIM, data and BlackBerryValue Added Services (VAS).SingTel’s 32%-owned Indianventure, Bharti Airtel, reporteda 14% year-on-year rise in mobilecustomers in Asia and Africa toreach 241 million as of 31 March2011. The SingTel’s Indonesianasset Telkomsel added 10.5million net new users in last oneyear (from 1Q11) for a total of110 million, while AIS Thailand,in which SingTel holds 21%,reported y-o-y growth of 6%to 34.14 million. Other positiveperformances were registeredin the Philippines GlobeTelecom (Philippines) with31.03 million (27.32 million in Q12011). Whereas in case of WaridPakistan the subscriber basefell from 17.81 million to 14.40million in an year time.<strong>June</strong> <strong>2012</strong>www.teletimesinternational.com51


SingTel acquires HungryGoWhere to re-shapeculinary experiences across AsiaTelecommunications Limited(SingTel) has announcedthat it has signed an agreementto acquire 100 percent ofGTW Holdings Private Limited(GTW), the owners of Hungry-GoWhere, Singapore’s mostpopular food website, for asum of S$12 million.Restaurant review portal HungryGoWhere.comis the leadingfood portal in Singapore, withadditional online presence inHong Kong, Malaysia, Vietnam,Cambodia and Australia.Under the agreement, GTW willbecome a wholly-owned subsidiaryof SingTel. Its operationswill be merged with inSing.com– also a subsidiary of SingTel- Singapore’s leading lifestyleand local search site.Optus is leveraging parentcompany Singtel’s cloudservices with its expandedcloud offerings for theAustralian market in what aleading market analyst says isa clear indication of Singtel’sintentions to roll out a uniformregional cloud offer and toboost its pan-Asian position inthe cloud computing market.In its latest market report,Ovum says Optus Business’addition of a new storagesolution and more pricingand access options with itsenterprise cloud servicesoffering are bring brought tomarket under the same brand– PowerON – used by SingTeland include cloud consultingservices from NCS, SingTel’s ITservices company.“These might sound like smallchanges, but they clearlyillustrate SingTel’s intention toThe combination of these toplifestyle sites will change thegame by creating an audienceof two million customers - thelargest food and lifestyle audiencein Singapore. By combiningHungryGoWhere withinSing.com’s food channel,SingTel will be the leading digitalexpert on food and culinaryestablishments and will serveover 70 percent of the visitorswho rely on mobile and onlinemeans for food and restaurantadvice.SingTel will extend this modelbeyond Singapore because thefood vertical is critical in Asia.In addition SingTel will addautomated restaurant reservationsand use the expertise toexpand overseas across Asia.roll out a uniform regional cloudoffer, observes Claudio Castelli,Ovum senior analyst, enterprisetelecoms.“SingTel has a leader position incloud computing in Singapore.It entered the market early andon multiple fronts, and has asignificant number of customersand partnerships with manyindependent software vendorsfor developing applications. Thechallenge has always been tobuild on its momentum in thedomestic market and turn it intopan-Asian success, and takingOptus on board will certainlyhelp SingTel to build a regionalproposition,” Castelli said.Advertisers and restaurantowners can gain access to anunsurpassed audience size,while leveraging new integratedmarketing tools andsolutions, including advertis-Allen Lewing, business listings, dealsand instant real-time on-linerestaurant reservations.Mr. Allen Lew, CEO GroupDigital L!fe, SingTel said, “Weare delighted to announce thisdeal. The talented HungryGoWhereteam has built a muchlovedbrand which has becomethe go-to site for restaurantreviews and information,delivering a great experiencearound one of Singapore’sfavourite pastimes.”Mr. Dennis Goh, Founder andManaging Director of HungryGoWheresaid, “We aredelighted to be joining the inSing.comand SingTel family. Thisdeal allows our award-winningcontent to be seen by evenmore people in the region andwill accelerate the investmentand distribution of our newonline restaurant reservationsystem.”Optus cloud offerings leverage Singtel plansHe said that SingTel can useOptus’s “valuable knowledgeand experience in cloudcomputing and deeperrelationships with vendorssuch as VMware” to help buildits own proposition in theAustralian market. “Joiningforces can also contributeto Optus’s cost-efficiencyprogram. Working togetheracross the group is a moreefficient way to roll out newservices, but investments,especially in delivery capacity,will still be necessary to matchcompetitors’ offerings. Telstra,for example, committed anA$800m investment over fiveyears just to strengthen itscloud capabilities.”Castelli also makes the pointthat SingTel is not alone in itsambitions, and expects the companyto face strong competitionfrom other regional competitorswith similar aims, as well as“global service providers withaggressive cloud services plansand established relationshipswith multinational corporations.”Ovum also observes thatenterprises in the Asia-Pacificregion are asking for combinedtechnology solutions that cantake advantage of fixed wirelessnetworks and innovations inapplications management, and,as Castelli said, “they also needend-to-end SLAs for these.”“The trick for SingTel and Optus,and indeed any managed serviceprovider in region, will beto combine telemetry solutions(M2M) and wireless broadbandtransmission with data collectionand hosting and fixedinternational backhaul, andto provide end-user networkmonitoring across all of theseservices,” Castelli concludes.52 www.teletimesinternational.com<strong>June</strong> <strong>2012</strong>


Changes couldbring Internet under international control:McDowellWashington takes a secondlook at proposed changesto the governance of theInternet. The CommunicationsSubcommittee of the HouseEnergy Committee, chairedby Rep. Greg Walden (R-OR),reviews the possible results ofthe upcoming World Conferenceon International Telecommunications,scheduled for nextDecember in Dubai.Russia and China, amongother member nationsof the InternationalTelecommunicationsRobert McDowellUnion (ITU), are calling forchanges in the InternationalTelecommunicationsRegulations (ITRs) that wouldbring the Internet underinternational control. Currently,the Internet is outside of thescope of the ITRs.Federal CommunicationsCommissioner RobertMcDowell, who spoke at panelhosted by The Free StateFoundation, recently publishedby Wall Street Journal criticizingthe proposed changes.“A top-down, centralized,international regulatory overlayis antithetical to the architectureof the Net, which is a globalnetwork of networks withoutborders,” he wrote. McDowellappears on the first panel ofhearing with Philip Verveer,Deputy Assistant Secretary ofState and US Coordinator forInternational Communicationsand Information Policy.The second panel includes:David A. Gross, former USCoordinator for InternationalCommunications andInformation Policy, StateDepartment; Sally ShipmanWentworth, Senior Manager ofPublic Policy, Internet Society;and Vinton Cerf, Vice presidentand Chief Internet Evangelist,Google.ITU launches 2nd IPTV Application ChallengeThemed, “Better Qualityof Life”, ITU’s secondIPTV Application Challengeis inviting innovative IPTVsolutions from individuals,Small-to-Medium sizedEnterprises (SMEs) andcorporations to improvesocial welfare throughservices in fields such ase-health, e-government,e-learning, ICT accessibilityand all aspects of SmartLiving.The winning application inthe individual/SME categorywill be awarded a cashprize of 3,000 USD. Thereis a separate category forcorporate entries. Winnerswill be announced at thefor Smart Living SolutionsWorld TelecommunicationStandardization Assembly(WTSA-12), in Dubai 20-29 November. WTSA is aquadrennial event gatheringaround 1000 representativesof the ICT industry’s mostinfluential policy makers,regulators and private-sectorenterprises. The winning andmost promising applicationswill be showcased at this andmany subsequent ITU events,maximizing global visibilityand attracting investment intheir development.Dr. Hamadoun Touré, Secretary-General,ITU said: “ITU’sIPTV standards are providingsecure end-to-end solutionsfor broadcasters and serviceproviders around the world.These application challengesare a proven platform to driveinnovative use of the mediumand tapping into the minds ofengineers around the world.I look forward to some excellentresults.”Following a very successfulChallenge in 2011, the 2ndChallenge will add furtherfuel to an already vibrant IPTVmarket today serving over60 million IPTV subscribers.Supported by deploymentsof high-speed broadbandnetworks, the industry isgrowing at roughly 25 percentannually. Additionally, theaverage revenue per useris increasing, signalling abetter monetization of IPTVservices and tremendousrevenue opportunities tothe companies serving amarket expected to doublein size within the 2011-2014timeframe.ITU’s standardized solutionsare already implemented inthe IPTV global marketplace,and increased adoption of thestandards will provide furtherstimulus to the market’sgrowth. The standardizedplatforms provided by ITUIPTV Recommendationsare more cost-effective andflexible than proprietarysolutions, and critically grantapplications and services aglobal reach.<strong>June</strong> <strong>2012</strong>www.teletimesinternational.com53


Etisalat Nigeria vows $1 billioninvestment over next two yearsEtisalat Nigeria has said it iscommitted to spend $1 billionon its telecoms infrastructureover the next two years,despite getting slapped with aban by the local regulator dueto poor quality of service, itschief executive said.“We have invested $2 billionsince we entered the marketin Nigeria over the past fouryears, and we are investinganother $500 million in infrastructurethis year,” StevenEvans said. “We are going toinvest another $500 millionnext year.”According to an Etisalat Nigeriaspokeswoman, the regulatorwarned it would charge anadditional $15,630 daily untilit received the payment $2.25An Etisalat Nigeria poster shows the theme as the compnay saysit will challenge a penalty imposed by the country's telecomregulator over bad servicemillion.Earlier this month, Nigeria’stelecoms watchdog handeddown fines to etisalat Nigeriaciting the poor service qualityof operators, along with India’sBharti Airtel, local operatorGlobacom and South Africa’sMTN.Etisalat said the performancetargets set by the regulator areunclear and seem willing to riskmounting penalties to put theircase. Reports said all operatorsare yet to pay the fines.“It’s very important for ourshareholders, who are investingthis money, to feel thatthe regime as far as quality ofservices, is very clear and verywell documented. Taking intoaccount the challenges we facedue to lack of power,” Evanssaid adding the company’sother major shareholder isMubadala, an Abu Dhabi governmentowned investmentfund, which holds a 30% stake.The rest of the company is controlledby Nigerian investors.Inmarsat launchesFleetBroadband Multi-voiceUK-based satellite operatorInmarsat has launched anew service that allows up tonine simultaneous telephonecalls to be made through asingle FleetBroadband terminal.The service, which is calledMulti-voice, is an enhancementto Inmarsat’s existing Fleet-Broadband (FB) service, and willallow vessel owners and managersto separate crew communicationsfrom operational use.It will also provide crew withmore privacy, making it easierto make personal low-cost callsaway from the bridge.The new capability is targetedat any vessel with the need tomanage separate voice calls,particularly the merchantmaritime market, but alsoother vessels that have similarcrew or passenger communicationsrequirements, such assuperyachts or deep-sea fishingvessels.FleetBroadband Multi-voice isintegrated into Inmarsat's corenetwork and terminated intopublic telephone networks,ensuring a high-quality voiceservice. There are two levelsof FleetBroadband Multivoiceavailable: Standard,which supports up to foursimultaneous calls from aFleetBroadband 150, 250 or500 terminal; and Enhanced,which supports up to ninesimultaneous calls on an FB250or FB500 terminal.Frank Coles, president, InmarsatMaritime, said that the service is“far superior” to internet callingsolutions, and is cheaper thanaccessing multiple voice calls ona standard VSAT.Etisalat’s eLife TV to broadcast LIVEEuro <strong>2012</strong> coverageAs football fever soars highamongst fans in the UAE,Etisalat announces LIVE broadcastof all EURO <strong>2012</strong> matchesin high definition (HD), availablein the eLife Al Jazeera Sportspackage. Started 8 <strong>June</strong> to 1July, eLife customers can enjoyan entire month of fantasticfootball action – exciting gamesfeaturing favourite footballersand national teams. As part ofthe service value-add, customersalso get to enjoy additionalgames in full HD. The Al JazeeraSports package is available atAED 39 per month. ExistingeLife TV (triple play) customerscan choose to subscribeto ‘Al Jazeera Sports Package’through the ‘A La Carte’ option.eLife double play and newcustomers can subscribe toeLife triple play and the Sportspackage by calling 101 or 800101.Newly subscribed customersbenefit from free installationand can choose to get theHD set-top and Recorder box(Personal Video Recording). TheHD set-top box enhances theoverall experience for customersviewing an HD channel ontheir HD TV sets. Through therecorder, customers can enjoythe “instant replay” featureto rewind and view a captivatingmoment during the gameinnumerable number of times.They can also schedule andrecord the matches to watchthem later as per their convenience.Commenting on the livebroadcast of EURO <strong>2012</strong>, RashedMajed Alabbar, Vice President– Home Product Marketing atEtisalat, said, “Etisalat’s eLifeTV has always worked towardsproviding a great entertainmentexperience.54 www.teletimesinternational.com<strong>June</strong> <strong>2012</strong>


Huawei and ZTE face possiblesanctions over illegal state aidChina's Huawei and ZTEcould be about to face thethreat of European sanctionsafter an investigation by theEuropean Commission hasreportedly found evidence ofstate subsidies from the Chinesegovernment.Both companies have longdenied receiving any form ofstate-aid, although Chinesebanks are particularly generousin financing vendor loans forclients of the two firms.This is not the first time that EUofficials have investigated theSweden's trade minister,Ewa Bjorling has said thata probe by the EuropeanCommission into allegationsof illegal state subsidies bythe Chinese government forHuawei and ZTE could harmEuropean manufacturers. Shetwo companies.Last year a report was said tohave found evidence of "significantChinese governmentsupport" for both Huawei andZTE, including "massive" linesof credit from state-controlledbanks.ZTE's lines of credit amount toUS$25 billion, which is exceptionallyhigh for a company withannual sales of US$8 billion.Huawei is also understood tohave benefited from large creditlines, including a $30 billionfacility from China DevelopmentBank.IT is that representatives fromthe EU's 27 member countrieswere informed of the resultsof the latest investigation ata closed meeting earlier thismonth.The Commission is said to have"very sold evidence" that thetwo companies had been ableto sell goods below cost in Europedue to the state subsidies.Such dumping activity is bannedunder World Trade Organisationrules, which China is party to.The final report is expectedSweden wants to avoid European sanctionsagainst Huawei and ZTEsaid that she is concernedthat there could be retaliatorymeasures taken by the Chinesegovernment if the EU imposestariffs on Huawei and ZTEimports, which would hurtSweden based Ericsson."While Chinese companies'share of the EU's wirelessequipment market is 30%, onehas to remember that theEU's share of China's wirelessequipment market is 45%. So ifChina were to hit us back withsimilar measures, it would hurtus more than what it wouldto be announced next month,and if the two firms are foundto have benefited, then the EUmay impose punitive tariffs ontheir imports into Europe.However, far from welcomingthe report, it is reported thatrival manufacturers are moreworried about a political backlashin China if the EU pressesahead with sanctions. Theloss of revenue in the matureEuropean market seeminglybeing less of a concern than thepotential gains from access tothe Chinese market.hurt them," she told Dow JonesNewswire. It was reportedover the weekend that anEU investigation had foundevidence of state subsidiesfor the two Chinese firms,although they strongly deniedthe allegations.ZTE Cikey wins'Best LTE Device/Handset Award' at LTE World Summit <strong>2012</strong>ZTE Corporation (“ZTE”)has announced that at theLTE World Summit <strong>2012</strong> heldin Barcelona, the ZTE Cikey(Converged intelligent key), amultiple access terminal, haswon the “Best LTE Device/Handset” award for its powerfuluser access functions andimprovement of the mobilecustomer experience. TheAward demonstrates thesuccess of ZTE’s efforts topromote the developmentof the LTE industry and ZTE’send-to-end LTE solutions. Thesedevelopments include the Cikeyand the WLAN+LTE networksolution which uses ZTE MAB(Mutiple Access Binding)technology to seamlesslyoffload data traffic ontoalternative networks to deliverthe best possible quality ofservice to end users.In the LTE era, users are facedwith the choice of a varietyof network access methods,and need to select the mosteconomical mobile networkaccess without impactingtheir mobile device experience.ZTE’s MAB solution helpsoperators better coordinate theco-development of LTE, 2G/3Gand WLAN networks, provideshigher bandwidth through theaggregation of hybrid wirelessnetworks, reduces operators’network investment costs andenables users to experience thebest possible communicationsin the mobile data era.“In response to the explosivegrowth of data services, ZTEhas introduced these innovativeMAB solutions, which can helpoperators to leverage existingnetwork resources to provideusers with better data servicesexperience and enhance thecompetition force of the operatorsin the LTE era of mobiledata services,” said Mr. Liu JianHua, President of Core NetworkProducts, ZTE.LTE World Summit <strong>2012</strong> broughtglobal industry leaders togetherto talk about industry innovationand progress, and the LTEAwards <strong>2012</strong> acknowledgeindustry enterprises for theiroutstanding contributions toLTE technology. The Best LTEHandset/Device award won byZTE is one of the most prestigiousin the industry, as it isselected by representatives ofleading service operators includingBritish Telecom, Telefonica,AT&T, France Telecom andDeutsche Telecom.<strong>June</strong> <strong>2012</strong>www.teletimesinternational.com55


Federal Minister-IT, Raja Perviaz Ashraflaunches USF telecom services projects in Balochistan at a value of PKR 3.15 BillionRaja Pervaiz Asharaf, FederalMinister for InformationTechnology in a statement saidthat USF has recently awardedprojects for providing basictelephony and data services inMastung Lot (Balochistan) andbroadband services in SouthernTelecom Region-V (Sindh).He further said that throughthe Rural Telecom Project inMastung, basic telephony anddata services will be providedto a population of 74,831people which resides in 102 unservedmuzas of Balochistan.This Lot consists of Mastung,Nushki and Ziarat Districts.He praised the USF team forfollowing Public ProcurementRegulatory Authority (PPRA)rules throughout the biddingprocess.He also stated that UniversalService Fund has been veryactively running projects forproviding ICT related servicesin Balochistan as well as restof the provinces. So far, ruraltelecom projects for Pishin,Nasirabad and Mastung Lotwhich aim to provide basictelephony and data services inaround 1,062 unserved muzasare benefitting a populationof 791 thousand. Similarlyunder another programme, 44unserved tehsil headquartersalong with 29 towns will beconnected through opticalfiber cable benefitting morethan 5 million population.During chairing the 28th USFBoard Meeting, Minister ITalso approved launch of 5 NewProjects of rural telecom fornext fiscal year <strong>2012</strong>-13, namelyKech, Kalat, Panjgoor, Sibiand Zhob Lots in Balochistanprovince. He also approvedlaunch of three new projectsPTCL Senior Executive Vice President Corporate Development, Sikandar Naqi (L)and CEO USF, Riaz Asher Siddiqui (R) signing the agreement of Rural Telecom Services Project,Mastung Lot (Balochistan) in the presence of Federal Minister-IT, Raja Perviaz Ashrafof Broadband programmefor Western Telecom Region(Balochistan), Northern TelecomRegion I and II (KPK), andlastly he also approved thelaunch of optical fiber cableproject for KPK Province.USF has made immenseprogress under the presentGovernment. In Rural TelecomProgramme, USF has providedbasic telephony and dataservices in more than 3,600unserved muzas.Broadband services have beenprovided in 256 new 2nd and3rd tier cities/towns alongwith providing more than400,000 broadband connectionswhile establishingmore than 1000 EducationalBroadband centers (EBCs) and300 community Broadbandcenters (CBCs). Under OpticFiber Programme, more than4,200 kms of new optic fibercable has been laid to connect58 un-served tehsils andtowns. To take broadbandinternet to the villages, USFhas launched another Programnamely establishment ofUniversal Tele Centers (UTCs).With these achievements, USFhas created a success story forthe public-private partnershipentities nationally and internationally.Later, while briefing the media,Federal Minister said thatduring the present government’stenure, telecom sectorhas achieved unparalleledsuccess and its benefits are beingpassed on to the people ofPakistan. He also mentionedthat the business centricpolicies, which take into accountthe market demandsand challenges, are open andconsistent, and have createdan encouraging environmentfor healthy business activitiesin the sector. He further saidthat the success of telecomsector in our country is nowrecognized all over the worldand Pakistan has emerged asan example for other emergingtelecom markets. He alsoemphasized that it was nowessential to pursue a futuristicapproach to achieve sustainablegrowth for the sector.He lauded the efforts madeby Universal Service Fundfor proliferation of telecomservices in the country.He was of the view thatthe prime objective of thegovernment to allocate fundsout of Universal ServiceFund, which consists ofcontributions of licensedtelecom service providers,is to provide most modernservices to the Pakistanisliving in smaller towns andcities where this facility wouldnot have come for another3 to 5 years is being perusedwell. He explained that itwas the endeavor of thegovernment to bring all partsof the country at par witheach other. He added that itwas part of the same effortthat thousands of kilometersof Optic Fiber Cables werebeing laid all over the countrywhich is going to be followedby deployment of Broadbandnetworks there also.56 www.teletimesinternational.com<strong>June</strong> <strong>2012</strong>


Muhammad Amir MalikEffect of Spectrum Managementon 3G TechnologyGovernment regulatorsgrant licenses to cellularoperators to use spectrum.Regulatory authorities aimto encourage economicdevelopment throughtelecommunication andsecondarily to earn revenuefrom spectrum licensing.How licenses are awardedand conditions placed on thelicensee, in addition to countryspecific demographic factors,influence the short term andlong term adoption of cellulartechnology. Three key findingshave been highlighted whileexamining how spectrumpolicy decisions haveinfluenced the adoption of 3Gcellular technology.1 Mandating singletechnology Standard:Countries reach 50%penetration (peak adoptionrate) more quickly whenthey mandate a 3G singletechnology.2 Band neutrality: Limiting3G to a single frequencyband promotes faster rollout, but in the long run canslow down the growth.3 Auctions: Using auctionsrather than other methodsto allocate spectrum helpscountries to reach 50%penetration earlier.Regulators can either mandatea technology for a specificgeneration of cellular serviceor let the operators decide.Compatibility resulting froma single standard can leadto economies of scale foroperators and equipmentvendors. Early diffusion istherefore slower in countrieswith multiple standards.Hence countries withmultiple standards for atelecom generation wereabout 9 months later toreach the 50% penetrationrate than the counties withsingle standards althoughthe growth rate in multiplestandards country is higherthan the single standardcounterparts. It can be arguedthat single standard can hinderdevelopment of alternativetechnologies. However,stimulating new technologydevelopment may be lessimportant than reachinghigh penetration in countrieswithout an indigenous cellularinfrastructure-manufacturingsector.Regulators can eithermandate a specific band fora specific technology or letthe operators upgrade orrefarm their already acquiredbands. It is commonlyargued that a band mandateenhances global roaming andensures economies of scale.Nonetheless, it forces theoperators to go through thespectrum award process tointroduce new technologyeven though they mightbe capable of reusing theirexisting spectrum. Thereforemandating the band helps thecountries to reach the peakadoption rate earlier. This isbecause the operators canuse the new band for the newtechnology while serving theexisting customers with olderspectrum.Regulators in generalprefer auctions to any otherspectrum award methods.Auctions are faster incomparison with hearings,Contd. on Page 58<strong>June</strong> <strong>2012</strong>www.teletimesinternational.com57


Muhammad Amir Malikm-learning - Mobility is causingyet another paradigm shiftEvery decade or so, learningand human performancetechnology gets a new boost—a new medium through which itcan inform, communicate, interact,empower, and enlighten. Inthe late 80s and early 90s, CD-ROMs lead the wave of learningtechnologies. The late 90s andearly part of this decade saw adeluge of Web-based training,virtual conferences and classrooms,e-learning standards,and so forth. It seems thatlearning is getting poised tomake yet another rush forwardinto the era of mobile and wirelesslearning. To be sure, nearlyeveryone can benefit frommobile Internet technologies,but certain industries and jobsseem to be a natural fit for mobilelearning and performancesupport.Every new generation oftechnology challenges ourworld view and paradigms. Aparadigm shift occurred whenpeople went from listening tothe radio to watching televisionprograms. Another example iswhen people shifted from usingstand-alone personal computersto accessing the Internet.Indeed, mobile consumerand business applications areflourishing. Mobile and wirelesstechnology is being usedin supply-chain management,sale force automation, inventorymanagement, facilitiesmanagement, point-of-careadministration and scientificdata collection applications.So, the real questions are; willlearning transform by aligning,linking, and embedding itselfinto business applications andworkflow? and can corporatetraining learn from mobileconsumer applications?There’s a difference between“being mobile” and “goingwireless.” Mobile computingrelates to the ability tointeract with the device fromanywhere, whereas wirelessaccess defines the communicationbetween computers ordevices. Nonetheless, mobilecomputing and wireless accessare extremely complimentary.The problem for most peoplelies less in the technology andmore with becoming comfortablewith numerous types ofdevices and form factors. Toadd to the perplexity, thereseem to be many choices andpersonal preferences witheach device. Form factors,interfaces, and primary usesof different mobile appliancesdepend on the evolution orbackground of the device.Once you have the device orappliance selected, you need todetermine how to make an Internetconnection. Again, thereare many options; primaryselection criteria include cost,telecommunication carrier coverage,and most importantlybandwidth.Mapping or squeezing anexisting application or learningcontent into a mobileinteractive application may beprohibitively expensive. In fact,some efforts may cost morethan developing a mobile applicationfrom scratch. Mobilelearning and performancesupport can occur in either connectedmode (ranging betweenalways-on to occasionally-connected)or disconnected mode.With mobile learning andperformance support, deliveringand enabling content foruse in off-line mode becomesa necessity rather than a sidefunction.The world of mobile and wirelesscomputing is evolving fast.However, in order to fully leveragethe mobile Internet forlearning, the e-learning communityneeds to think in terms ofperformance and productivityrather than traditional lecturestyle training or courseware.Once we untether ourselvesfrom traditional coursewareparadigm, we’ll discover thatthe mobile and wireless worldhas a lot to offer and the gameis just beginning!Contd. from Page 57Effect of Spectrum Management on 3G Technologywhich might take months oryears. They largely ensuretransparency and ensure that theparty that values the spectrummost gets the spectrum. This hasa significant effect on ensuringhigh adoption rate. The capitaldebt caused by auctions mightact as an incentive for fast rolloutto earn revenue to cover thedebt. Consequently the auctionsas the award process do helpthe countries to reach peakadoption rate faster affirming thehypothesis.The countries that conductedauctions were at least 7 monthsearlier than their counterparts to reach 50% penetrationrate. Still the estimationdoes not find the effect ofaward process significanton growth parameter. Thefinding indirectly supports thehypotheses that auction bidprices are “sunk-cost” and havelittle effect on the ultimaterollout of the technology.58 www.teletimesinternational.com<strong>June</strong> <strong>2012</strong>


CyberNet launchesPakistan’s first Cloud Computing serviceIn its simple definition, Cloudcomputing is a service foron-demand network and handyaccess to a shared pool of configurablecomputing resources(networks, servers, storage,applications, and services) thatcan be deployed rapidly withminimal management effort.Governments, enterprises andbusinesses around the world aremoving towards cloud computingand hosting services. As amatter of fact personal cloudcomputing services such asGmail and Google Docs havealready made their popularityfor end users.The Cloud Computing offers thepromise of massive cost savingscombined with increased IT agility.It is considered critical thatgovernment and industry beginadoption of this technology inresponse to difficult economicconstraints.Recently, Cybernet a local ISPfrom Pakistan unveiled ‘Rapid-Compute’ as Pakistan’s firstcloud computing service. Theintroduction of RapidComputemarks an important step inCybernet’s strategic focus onapplication infrastructure andservices. Speaking at the occasionMr Shahid A Khan CEOCybernet said ”We are certainthat tomorrow’s customers willdemand more than just basicdata and Internet products andwe, as service providers, muststrive for higher levels of qualityand for a multitude of importantservices.”Cloud computing can helporganizations cut down theirinfrastructure and maintenancecosts almost immediately. Withfeatures like increased scalabilityand reduction of latencyup to 90% it promises to be anoffering that no company can dowithout.Without the added pressures ofmaintaining servers, Cloud computingfrees up organizationsto concentrate on their corebusiness. The RapidComputedivision will also leverage Cybernet’syears of experience in providingsystem and applicationlevel support for online servicessuch as databases, web, emailand other hosted applications.The advantage of having suchan experienced team on-groundand ready to assist will providelocal software developers andorganizations the confidence todeploy their applications withinPakistan.At the unveiling ceremony,Cybernet Corporate Sales VicePresident Imran Khan explainedthat cloud computing leads toan almost immediate reductionin initial and running costs; ininstallation and managementtimes; while the increasedscalability and flexibility makesit ideal for big businesses thatwant to focus more on theircore product and less on servermaintenance.Khan said cloud computing eliminatesthe need for a companyto maintain its own servers,leaving maintenance, updates,and the addition of server spaceup to the service provider. Theservice is essentially disasterproofas the servers are spreadout, slashing expenditure onbacking up most information.Also, clouds help avoid obsolescenceas the provider handlessoftware and hardware updates,with hardware redundancybuilt-in. Although “only a fewclicks are needed to set up” acompany’s network, clouds arehighly fault tolerant, while physicalhardware is not.The service is believed to bringa whole set of opportunities forenterprises in Pakistan wishingto offer their business platformsover the clouds.aged to cut across the youthsegment of their target audience.Moreover, it allowed forthe integration of the customers,making them not only feelpart of Wateen but act as theirrepresentatives as well. Socialmediums like Facebook andYouTube were also used for thepromotion of the campaigns,allowing the company to expandtheir mode of communication.Later, a non-branded video fora song was also shot to give ‘JoChaho’ a life of itself. Due to thegrowing popularity of the jingle,a music video has been createdWateen gets another mark at Pakistan Advertising Society Awardsthat goes beyond the corporateattachment and extends intoa persona of its own. This wascreated as an ‘art-piece’ and embodiesthe positivity of achievingyour dreams and potential byfollowing your heart.The ResultWateen's re-launch in 2011 didn'tjust get the customers talking. Itcreated a buzz among advertisingpundits and peers alike. On18 May <strong>2012</strong>, Wateen took homethe 'best advertising campaign'prize at the Annual PAS Awardsin the Computer and InternetService Providers category. PakistanAdvertisers Society is oneof the very few organizations inPakistan that not only acknowledgeand encourage effectiveand efficient communication butreward it as well.The biggest challenge perhapswas reestablishing Wateen as adependable company pillaredon quality and trust. In order toimprove its services, Wateenrelocated over 200 sites to areasof congestion and potential, aswell as installing a caching solutionto improve the browsingexperience for customers. Thisled to Wateen being ranked the#1 wireless broadband serviceprovider for quality of serviceand also winning the ConsumerChoice Award for the best internetservice provider.After the re-launch, the grosssales were tripled which istestament to the success of thecampaign. The advertisementrecall nearly doubled afterthe launch as well, improvingfrom 29% to 53%, with the TOMincreasing from 24% to 36%. Thecampaign placed Wateen backon the digital map, reinstatingconfidence and loyalty in itscustomers.60 www.teletimesinternational.com<strong>June</strong> <strong>2012</strong>


PTCL wins prestigious ESRI Special Achievementin GIS Award <strong>2012</strong>Pakistan TelecommunicationCompany Limited(PTCL) has been honored bythe prestigious U.S.-basedEnvironment Systems ResearchInstitute (ESRI) with the “ESRISpecial Achievement in GISAward <strong>2012</strong>” for its outstandingachievements and organizationalperformance in geographicinformation systems (GIS) andprograms.“PTCL’s GIS program stoodout from amongst more than100,000 others worldwide forits outstanding use of GIS technologyin the existing network,”said Founder & President ESRI,Jack Danger on the occasion.Pakistan TelecommunicationCompany Limited (PTCL)has introduced fabulous new“Mega Volume Downloads”prepaid packages for its premierbrand EVO, bringing anelevated connectivity experienceto its customers.EVO Wireless Broadband trulyhas something for everyone,from daily usage Daypass packagestarting as low as Rs.100/day and going up to Rs.2000with EVO Max’s UnlimitedInbox Business Technologieshas announced thesuccessful completion ofOracle Enterprise ResourcePlanning (ERP) Applicationproject at Maldives AirportCompany Limited (MACL).MACL faced major challengesin keeping up with therapidly changing economicenvironment while workingto build an efficient andproductive business model.Jack Danger“We have selected PTCL for thisyear’s award on the basis of itsinnovative applications of GIStechnology in Pakistan.”PTCL has been recognized byESRI for its expert deploymentof GIS in Islamabad regiondownloads for a month.EVO’s new GO 5GB & Lite 10GBpackages offer customers thebiggest volume boost ever, givingfive times the volume at themost economic prices and thelowest ever additional usagecharges of just 10Paisa/Mb.Whether casual Internetsurfing, live streaming or anHD movie download, EVOprepaid packages are designedto suit customers’ lifestyle anddiverse recharge options toThe Oracle E-Business Suiteanswered many challengesbased on ESRI’s ArcGIS platformwith telecom intelligence addedthrough Telcordia’s NE softwarefor purposes of access networkplanning and documentation.Building further on its work,the telecom giant’s pipelineinitiatives will be geared tocreate a geographical commonoperating picture for multipleapplications. “This is yetanother global recognition ofPTCL’s technological edge andprowess in a competitive field,”said PTCL President & CEO,Walid Irshaid, on the occasion.“My heartiest congratulationsand thanks go to all PTCLemployees for their hardEVO brings fabulous new mega downloads packagesgive them absolute freedom ofconnectivity. EVO 3G customerscan avail the new packagesby calling 1236 or visiting thenearest PTCL OSS center.“PTCL continues it legacy ofproviding most innovative andaffordable telecommunicationpackages to its customers,”said PTCL Senior Executive VicePresident Commercial, NaveedSaeed. “The new EVO MegaVolume Downloads packageswill enhance our customerMaldives Airport Company adapts Oracle ERP Solution by Inboxthat MACL was facing. Theseamless flow of informationacross the organizationprovided better visibilityof critical financial, humanresource and supply chaindetails in real time to supportkey decision making.The end-to-end businesssolution aimed at leveragingautomation had an immediateeffect as MACL was now ableto reduce additional overheadswork and commitment, whichcontinue to bring accolades forour Company.”“The ESRI GIS Award 2102highlights our Company’s talentand fortifies our resolve to takePTCL to new heights,” saidPTCL Chief Technical Officer,Muhammad Nasrullah, whilecongratulating his team onthe occasion. The U.S.-basedESRI is the world’s largest GISorganization with more than0.35 million affiliates and morethan one million users. It is theonly global company with a GISportfolio covering all sectorsof life starting from health totelecommunications.segmentation and reinforcePTCL’s image as the onlyintegrated telecommunicationcustomer-centric serviceprovider.”“PTCL’s top priority is tofacilitate our customers to themaximum,” said Executive VicePresident Wireless Business,Omar Khalid. “The launch ofour new EVO packages willgo a long way in ensuringPTCL’s competitive edge in theBroadband market.”such as the manpower costin the reconciliation andauditing process. With promptavailability of key informationand an eye across the diverseportfolio of MACL, the solutionalso enhanced management’sproductivity and efficiency,allowing them to keep upwith the competitive market’sgrowing needs and meetcustomer expectations to thefullest.<strong>June</strong> <strong>2012</strong>www.teletimesinternational.com61


<strong>June</strong>Global Telecom events <strong>2012</strong>3rd TMT Finance & Investment Africa7 <strong>June</strong> - LondonGEM Forum for CEE, SEE and CIS07 - 08 <strong>June</strong> - Prague, Czech RepublicWorld Wireless Congress11 - 12 <strong>June</strong> - Stanford/Palo Alto, CaliforniaThe <strong>2012</strong> Mobile Money Forum13 - 14 <strong>June</strong> - Montreal, CanadaWest & Central AfricaCom13 - 14 <strong>June</strong> - Dakar, SenegalInfocomm13 - 15 <strong>June</strong> - Nevada, USAMobile Network Optimisation India <strong>2012</strong>14 - 15 <strong>June</strong> - New Delhi, IndiaMobile Device Congress <strong>2012</strong>15 <strong>June</strong> - New Delhi, IndiaWDM & Next Generation Optical Networking18 - 21 <strong>June</strong> - MonacoGlobal Messaging World Congress19 - 20 <strong>June</strong> - London, UKDigital Home World Summit <strong>2012</strong>19 - 20 <strong>June</strong> - LondonSIMposium Global19 - 20 <strong>June</strong> - Berlin, GermanyBroadcastAsia19 - 22 <strong>June</strong> - SingaporeCommunicAsia19 - 22 <strong>June</strong> - Marina Bay Sands, SingaporeGSMA Mobile Asia Expo20 - 22 <strong>June</strong> - Shanghai, ChinaTri-State TCI Technology Conference24 - 26 <strong>June</strong> - Charleston, SCMobile Transactions & Commerce26 - 27 <strong>June</strong> - Toronto, Ontario, CanadaDigital Asset Management26 - 27 <strong>June</strong> - London, UKJulyTelecoms Loyalty & Churn <strong>2012</strong>02 - 05 Jul - Novotel CannesVas Africa <strong>2012</strong>03 - 04 July - Sandton Sun, South AfricaNTCA Region 7, 8 & 10 Meeting08 - 10 July - San Antonio, TXChina Telematics & Wireless Tech Forum <strong>2012</strong>12 - 13 July - Shanghai, ChinaOPASTCO's 49th Annual Summer Convention & Tradeshow14 - 18 July - Minneapolis, MNNTCA Regions 1, 2 & 3 Meeting15 - 17 July - Hilton Head, SCConnected Health Asia <strong>2012</strong>16 - 19 July - Grand Copthorne Waterfront Hotel, SingaporeAugustOffice Expo - Delhi04 - 06 Aug - New Delhi, IndiaMontana Telecomm Association Annual Meeting06 - 08 Aug - Whitefish, MTNTCA Regions 4 & 5 Meeting12 - 14 Aug - Milwaukee, WISeptemberAutomation Mumbai07 - 10 Sep - Mumbai, IndiaComPulse <strong>2012</strong>11 - 13 Sep - Grand Rapids, MITC3 <strong>2012</strong>: Telecom Council Carrier Connections12 - 14 Sep - Sunnyvale, North AmericaTurkmentel <strong>2012</strong>17 - 18 Sep - Ashgabat, TurkmenistanProfessional Mobile Radio <strong>2012</strong>17 - 19 Sep - Barcelona, SpainTelecom Asia - Telco Cloud Strategies Summit <strong>2012</strong>12 13 Sep - Singapore62 www.teletimesinternational.com<strong>June</strong> <strong>2012</strong>


SeptemberLTE Asia18 - 19 Sep - Suntec, SingaporeMVNOs Industry Summit Africa <strong>2012</strong>18 - 19 Sep - Cape Town, South AfricaTM Forum’s Africa Summit <strong>2012</strong>18 -19 Sep - AfricaNigeria Com18 - 19 Sep - Nigeria, AfricaTelecom & Mobility18 - 19 Sep - Oslo, NorwaySIMposium Asia18 - 19 Sep - Marina Bay Sands, SingaporePT/EXPO COMM CHINA <strong>2012</strong>18 - 22 Sep - Bejing, ChinaService Delivery Platforms (SDP) Global Summit19 - 20 Sep - Berlin, GermanyCloud Middle East24 - 25 Sep - Westin Mina Seyahi, Dubai, UAEBusiness Analysis Conference Europe <strong>2012</strong>24 - 26 Sep - Radisson Blu Portman Hotel, LondonManaged Services World Congress <strong>2012</strong>25 - 26 Sep - Jumeirah Beach Hotel, DubaiSIBTELECOM & IT25 - 28 Sep - Novosibirsk, RussiaOctoberTelecom World Middle East <strong>2012</strong>02 - 03 Oct - Dubai, UAE3rd Annual Self Organising Networks03 - 4 Oct - London, United KingdomTCA Region 9 Meeting07 - 09 Oct - Big Sky, MTCOMPTEL Plus Fall07 - 10 Oct - Dallas, TXNECA Expo <strong>2012</strong>07 - 11 Oct - Bellevue, WASmall Cells World Congress09 - 10 Oct - Berlin, GermanyMidwest Telecom Expo09 - 11 Oct - Fort Wayne, INGitex Technology Week <strong>2012</strong>14 - 18 Oct - Dubai, UAEITU Telecom World <strong>2012</strong>14 - 18 Oct - Dubai, UAEMVNOs Industry Summit Asia <strong>2012</strong>16 - 17 Oct - Kuala Lumpur, MalaysiaCloud Computing World Forum India <strong>2012</strong>16 - 17 Oct - Mumbai, IndiaBroadband World Forum16 - 18 Oct - Amsterdam, The Netherlands5th Annual FTTx MEGNA Summit29 - 30 Oct - Dubai, UAEDigital TV Middle East <strong>2012</strong>30 - 31 OCt - Jumeirah Beach Hotel, DubaiNovember5th Annual Rich Communication06 - 7 Nov - Munich, GermanyMobile Roaming World Summit <strong>2012</strong>13 - 15 Nov - London, UKAfrica Com14 - 15 Nov - Cape Town, South Africa4G Latin America Conference & Expo <strong>2012</strong>14 - 15 Nov - Bogota, ColombiaDecemberTelecoms Cost Allocation and Profitability03 - 06 Dec - London, UKCloud Middle East04 - 05 Dec - Dubai, UAEMiddle East Com04 - 05 Dec - Marriot Magquis Hotel, DubaiService Delivery Platforms (SDP) Global Summit15 Nov - Berlin, Germany3G World Congress15 - 19 Nov - Hong Kong, ChinaArab Advisors Group - 2nd Smart Handheld Summit <strong>2012</strong>26 - 27 Nov - Dubai Marina Hotel, UAEDigital TV Summit <strong>2012</strong>04 - 05 Dec - London, United KingdomMVNO Industry Summit Middle East04 - 05 Dec - Dubai, UAETelecom Review Summit “It is all About Networking”Dec - Beirut, Lebanon<strong>June</strong> <strong>2012</strong>www.teletimesinternational.com63


Teletoons64 www.teletimesinternational.com<strong>June</strong> <strong>2012</strong>

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