Tuesday, July 12, 2011

205m Indian workers will go mobile by 2015

Enterprise Innovation Editors | June 30, 2011
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India’s mobile workforce is slated to grow by an overwhelming 53% in the next four years, despite the fact that enterprise adoption of mobility strategies is still at an infantile stage.
A Springboard Research report states that “With today’s consumers becoming increasingly mobile and well informed, enterprises must follow suit. A mobile enterprise can experience a range of business benefits including operational efficiency and enhanced customer interaction and engagement. The resulting upside in productivity, revenue and market share cannot be ignored by Indian CXOs.”
“We are in the post-PC era where the most important apps are being developed on mobile platforms first. Sales, customer service, marketing, finance, HR – teams need access to real time information to meet the demands of today’s business environment,” said Steve McWhirter, SVP of enterprise sales at Salesforce Asia Pacific.
The new report titled, ‘Moving Towards a Mobile Enterprise – Journey of India Inc.’ suggests a four-phased roadmap for companies embarking on a mobile enterprise strategy.
1. Conventional Mobility: basic apps such as e-mail, messaging, contacts, and calendar.
2. Automated Workforce: critical apps like ERP, CRM and salesforce automation. This allows mobile workers to minimize paperwork, reduce back-to-office visits, improve productivity, and achieve higher sales closing ratio.
3. Always Connected: apps that extend real-time communication and collaboration capabilities to employees anytime, anywhere, and on any device.
4. Pervasive Mobility: apps that integrate function-specific applications to enhance brand image and bring efficiencies in internal operations such as finance and human resources.
“Today's new environment is characterized by social media, smart devices and instant conversations. This changed backdrop demands that we have access to real time data to seize business opportunities on-the-go,” said Essae Technologies managing director Narasimha Subrahmanian.
Enterprise Innovation Editors
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205M Indian workers will be going mobile by 2015

Facebook, Skype, Microsoft Draw Closer Through Video Chat Feature

Facebook made some significant announcements July 6, all important to the company and to the online social networking market. First, Facebook announced that it has surpassed the 750 million-member mark, with a cool 1 billion clearly within reach. The last time Facebook talked about its membership last October, it had just passed 500 million.

Secondly, Facebook started up its group chat feature, one that had been requested by users for a long while. Along with that, Facebook made a few site design changes that will make it easier to use the chat and group-chat functions. Finally, the company revealed a new partnership with Skype, the world's largest peer-to-peer video service which is on track to become the property of Microsoft. Finally,

Facebook launched its long-anticipated video chat service—powered, of course, by Skype. The Facebook, Skype and Microsoft (Skype's future owner) dynamic will be interesting to watch in the coming months and years, since the world's largest software company will have substantial investments in both companies.

(Chris Preimesberger on 2011-07-07)

Tuesday, June 7, 2011

Maxis, Axiata profits fall in Q1

Malaysia-based operators Maxis and Axiata have each reported declines in first quarter profit.
Maxis's Q1 net profit dipped 2% year-on-year to 540 million ringgit from higher finance costs.
The carrier said revenue for the quarter had dipped slightly due to a reduction in takings from voice, interconnect and international gateway services.
The company recorded ebitda of 1.09 billion ringgit, up 0.7% from a year ago. Maxis ended the quarter with 12.7 million subscribers.
Non-voice revenue comprised 42.1% of mobile revenue and grew 22% to 857 million ringgit. Maxis’ wireless broadband subscriptions almost doubled to 602,000 from 313,000 a year ago, with revenue from this segment growing to 115 million ringgit from 59 million ringgit a year ago.
Competitor Axiata reported a 40.5% decline in year-on-year net profit for 548.4 million ringgit for Q1, due to a drop in other operating income to 7.5 million ringgit.
The group said in its quarterly report that the apparently large dip in year-on-year profit was due mainly to a one-off gain from share sales at its Indonesian unit in Q1 last year.
Group revenue grew 3% to 3.94 billion ringgit on the back of improved results from its subsidiaries in Indonesia, Sri Lanka and Bangladesh. However, operating costs at its subsidiaries increased 3.5% to 2.2 billion ringgit.
CEO Datuk Seri Jamaludin said the appreciating ringgit had resulted in a poorer showing for the company.
Source: Telecomasia.net

Bakrie Swings to Q1 Loss

Indonesia-based CDMA operator Bakrie Telecom has reported a 41.12 billion rupiah ($4.8 million) net loss for Q1 this year on rising investment costs.
The results stand in contrast to the 29 billion rupiah net profit the firm reported during the same period last year.
Operating revenue for the quarter stood at 717.94 billion rupiah, a 1.27% increase year-on-year, while operating expenses grew 16.5% to 704.96 billion rupiah, while financing charges had increased 127% to 200.5 billion rupiah.
Ebit therefore fell 87% to 12.96 billion rupiah.
According to Indonesia Today, Bakrie invested $400 million to expand and upgrade its broadband network between 2009 – 2010 period, including an upgrade to 1x-EVDO Rev A. The firm plans to spend $200 million on network upgrades this year.
Bakrie had 13.6 million customers at the end of Q1, a 23.2% year-on-year increase.
Source: Telecomasia.net

Monday, May 30, 2011

The New Realities: Cyber Army and Cyber Warfare

Recent news out of China and the US has driven home the growing threat of cyberwarfare.

Defense contractor Lockheed Martin and the US Department of Homeland Security on Saturday confirmed that the company had come under a cyber attack, Priyo said.

On Sunday, CFO Sondra Barbour revealed the company was a frequent target of attacks from around the world, stating that this had become “the new reality.”

But the company, the Pentagon's main supplier, stated it had responded immediately to the latest attack, and that no customer, program or employee data was lost.

The confirmation comes after reports on Friday that Lockheed Martin systems were experiencing a major disruption due to a network security issue.

Also last week, China acknowledged the existence of a cyber security squad, described as an Online Blue Army, to defend state systems from online attacks.

The organization, which has a budget running into the tens of millions of yuan, is believed to have existed for at least two years. It employs 30 staff with advanced security training.

China Post points out that while the unit has been portrayed as primarily defensive, the news could increase tensions with foreign governments such as the US, Australia and Germany, which have already alleged that Chinese hackers are carrying out systematic attacks on foreign governments.

China already raised eyebrows in the US this month by unveiling a video game designed as a recruiting tool for the PLA, which appears to pit the player against US troops.

While no state was involved, Sony was also taken to task by a security expert last week for not taking seriously threats that the company would be targeted in a cyber war of revenge from hacker collective Anonymous.

Monday, May 16, 2011

Western Australia to get 16Tbps cable to Singapore

It’s been a long time coming but a second cable connecting Australia’s west coast to South East Asia is
finally getting built. Following the aborted plans by Matrix and Ochre to build a similar cable from Perth to Indonesia and Singapore, Leighton Contractors Telecommunications and its subsidiary Australia-Singapore Cable (International) Ltd, has finally announced concrete plans to construct a Western Australia to Singapore
cable.

Leighton announced this week that it has contracted Alcatel-Lucent to build the 4,800km cable that
will now become the second link between South East Asia and Australia. The new cable will bring online up to 16Tbps of capacity to a route currently served by the legacy Sea-Me-We 3 cable with 960Gbps of design capacity. According to Leighton, ASC will initially be built with two fibre pairs supporting 80 wavelengths operating at 40Gbps for an initial design capacity of 6.4Tbps.

With a 100Gbps upgrade option, the system will eventually be able to support more than 16Tbps, the
company said. The design, survey and planning phase of the project is already underway, with commercial services expected to go live in 2013. During the initial phase of the contract, Alcatel has dispatched its own survey ships to check the planned route.

In the construction phase, slated to start in the first quarter of next year, the vendor will manufacture
the cable itself in France, along with the dry-land electronics; it will then deploy its cable- laying vessels to
install the link itself. Once the cable lands, ASC will take over with a separate contract to connect it to
data centres in Perth and Singapore; the firm has already secured the land for the Perth facility, and an-
other Leightons Telecoms company – Metronode – is pushing ahead with its construction.

ASC chairman and Leighton Telecommunications executive GM Peter McGrath told CommsDay that
the firm was in productive discussions with potential customers. “At this stage, we have a strong level of interest in terms of pre-commitments from key customers, both domestic and international,” he said. “We’ll look at funding in terms of the levels of pre-commitment that we can get, and that involves customers saying that they’ll pay for an Indefeasible Right of Use... so they pay upfront and they get to use the capacity for, say, sixteen years. That’s an important source of funding, and to the extent that we do need additional funding, we will obviously look at our current providers.”

“The capacity that’s been built in recent years has mainly been linking into the US... there really hasn’t
been any significant capacity built out of the West coast since Sea-Me-We 3 was put in, and that’s proba-
bly fifteen years ago,” he added. “We identified demand for a cable off the West coast of Australia proba-
bly two years ago... we initially looked at doing a partnering arrangement, [but] in the end our customers
were telling us that they’d like to go to Singapore on one cable.”

McGrath also noted that the new cable, combined with terrestrial Australian infrastructure operated
by ASC’s Leighton Telecoms stable mate Nextgen Networks, would provide “the lowest latency, highest
capacity... connection from Singapore to Sydney.”

“The big international telcos do need redundant paths through Asia; most of their paths today go
through Singapore, Hong Kong, across to Japan. And what they’ve been looking for is a southern route
to provide redundancy in the case of earthquakes and the like,” he said.

While the Australian telecoms community has focused on building international cables out of Syd-
ney – including Pipe Networks’ PPC-1 system to Guam, Telstra’s own Endeavour cable to the US, and
more recently, Pacific Fibre’s trans-Pacific system connecting Australia, New Zealand to the US – the
route for the new ASC system gives it a unique path to the rest of Asia. More importantly perhaps, the
construction of the new system correlates with the influx of bandwidth within Asia, enabling it to tap
into onward connectivity from intra-Asia systems such as the Google-backed, Singapore Japan Cable, as
well as the Asia Submarine-cable Express, being jointly built by a NTT Communications-led consortium
as well as Telekom Malaysia.

It also positions the new cable in close proximity to new India to Europe systems such as EIG and
IMEWE.

While there is a still a dearth of capacity between Singapore and India to support this utilisation
model, the situation may change in the near future. Already industry insiders have told CommsDay of
at least one proposal by a regional operator to build a new cable system spanning the Bay of Bengal to
Malaysia and Singapore.

HIGH-CAPACITY TECH: Meanwhile, Alcatel won the turnkey contract for ASC after a competitive
tender; McGrath said that the vendor clinched the deal on pricing, scale, and their commitment to lat-
est-generation technology – including the exclusive use of D+ fibre.

“ It’s a type of glass which has what’s called positive dispersion... which means that coherent transmis-
sion technology works particularly well,” explained Leighton Telecommunications CTO Phil Martell.
“Traditional cables use a cocktail of positive and negative dispersion fibres that balance out the disper-
sion over the route; in a coherent system you don’t need to do that, and therefore you can use a D+ fi-
bre which can achieve lower losses across the whole route.”

That helps to make possible the upgrade to 100Gbps wavelengths, and although this is not sched-
uled to take place until some time after the cable’s planned commercial launch in 2013, ASC is posi-
tioning the upgrade as a key advantage of the new link. “It’s our understanding that this is the only ca-
ble to be announced globally with that capacity,” said McGrath. “When you’re looking at the potential
growth from, say, the NBN... when you look at what the large corporate and multinationals are demand-
ing... we’re seeing strong growth in demand over time, and at some point we’ll move to the 100Gbps
transmission.”

“So it’s future-proof; whereas virtually all of the cables being built today, with the D+ and D- [fibres],
will not allow that.”

The two companies are staying tight-lipped on the value of the deal, which has been estimated in the
millions of dollars, but expect to reveal more details once the construction phase gets underway.
(source:Petroc Wilton and Tony Chan)

Saturday, May 14, 2011

WiFi Gaining Traction in India

Wi-Fi is becoming steadily more popular in India, thanks to the falling cost of devices and the immaturity of alternative technologies in the market.
Prices of data-capable smartphones have dropped steeply in the region to about 3000 rupees ($67) today, while a large number of Indian mobile handset brands such as Olive, Karbonn, Micromax, Lava and others are unleashing more smartphone choices for less.

On the upper end of the device spectrum, Samsung Galaxy Tab now retails its new version 2 for only 24,000 rupees, down from 29,000 rupees just four months ago, and is flying off the shelves.

From the networks side, you will notice that the stars are aligning for a perfect take off of Wi-Fi. As of May 2011, it will be a full year that the 3G / BWA spectrum auctions and its infamous investigation aftermath were initiated and not a single BWA network has seen the light of day, let alone launch of service.

While 3G licensees have attempted to light up select towns with 3G, there is no single new service the user can connect with and claim a high quality experience which was otherwise not available. In this vacuum Wi-Fi appears to be a great alternative.
Wi-Fi service providers are therefore scrambling to expand coverage. Thus Ozone, Zylog, Tikona and MetaMax have stepped on the gas and are enhancing build-out adding more POPs, expanding coverage and increasing footprint.
Ozone is exploring to tie up with Vodafone and Idea while a technology collaboration agreement with Alcatel-Lucent is already in place.

Down south, Zylog’s Wi5 is making waves with a 100% pre-paid model which has a combined subscriber base of over 30,000. Tonse believes that Zylog probably has cracked the Wi-Fi base station pricing model better than anyone else and is able to setup a POP at the lowest cost per subscriber, using a combination of own software plus third party hardware.

Zylog has even penetrated tier 2 towns and if offering fail-safe Wi-Fi in over 150 locations. Plans are afoot to grow to 179 locations and 100,00 subscribers by year end. Zylog Wi-Fi generated a top line of about $5.15 million.

Indian cellular operators have suddenly more respect for the relatively smaller Wi-Fi counterparts. While initially these free-to-air spectrum operators were considered yet another enterprise customer who would buy bulk bandwidth, the relationship is now more symbiotic.

Wi-Fi ISPs are now more likely to carry access traffic from larger captive Wi-Fi base than pricey data plans from cellular operators. Besides, retail outlets are willing to make room for Wi-Fi gear as the added attraction of offering Wi-Fi soon becomes a ‘must have’.

But perhaps an even bigger opportunity lies shrouded under clouds: wholesale Wi-Fi offload. Instead of creating multiple small regional Wi-Fi PoPs and creating several bilateral relationships with individual mobile operators, a large scale, carrier-class wholesale Wi-Fi model should emerge in India.

With only a fraction of 3G sites just lit up, none of the TD-LTE / BWA offerings live and mobile data traffic beginning to grow in volume, it is but a matter of months before a large scale data explosion becomes a reality.

If a large nationwide Wi-Fi network is built out and a ‘LightSquared-like’ wholesale model is launched, it should have plenty of takers.
After a BWA spectrum auction that generated billions in revenues to the government a business model around unlicensed spectrum that is non-retail suddenly seems lot more appealing for this bandwidth hungry nation.

Sridhar Pai runs wireless research & consulting businessTonse Telecom from Bengaluru, India