ITU Releases Global ICT Pricing and Penetration Data

ITU’s latest report Measuring the Information Society 2011 (PDF) ranks the Republic of Korea as the world’s most advanced ICT economy, followed by Sweden, Iceland, Denmark and Finland. Broadband rates on average dropped 50 per cent between 2008 and 2010, while huge differences in speeds and quality remain between countries.

ITU’s ICT Development Index (IDI) ranks 152 countries according to their level of ICT access, use and skills, and compares 2008 and 2010 scores. Most countries at the top of the ranking are from Europe and Asia Pacific. The United Arab Emirates and Russia rank first within their respective regions and Uruguay ranks highest in South America.

Saudi Arabia, Morocco, Vietnam and Russia were some of the most dynamic countries between 2008 and 2010, with all of them making substantial improvements in their IDI ranks.

All countries included in the IDI improved their scores this year, underlining the increasing pervasiveness of ICTs in today’s global information society.

The report shows that while ICT usage and income levels are closely related, getting the right public policy mix can drive faster take-up and a number of countries, including Australia, Japan, New Zealand and the Republic of Korea have higher IDI levels than their income level would predict.

The spread of mobile networks in developing countries remains buoyant, with 20 per cent growth in mobile subscriptions over the past year and no signs of a slowdown.

In developed countries, on the other hand, mobile cellular penetration has reached saturation, with average penetration now over 100 per cent at end 2010, compared with 70 per cent in developing countries. With more than five billion subscriptions and global population coverage of over 90 per cent, mobile cellular is practically ubiquitous.

Mobile broadband (3G) services are also spreading quickly. By the end of 2010, over 150 economies worldwide had launched 3G networks. Wireless broadband Internet access remains the strongest growth sector in developing countries, with mobile broadband growing by 160 per cent between 2009 and 2010. Countries registering the highest gains in the IDI ‘ICT use’ sub-index are mostly those which have achieved a sizeable increase in mobile broadband subscriptions.

Globally, telecommunication and Internet services are becoming more affordable. According to the 2010 ICT Price Basket (IPB), which spans 165 economies and combines the average cost of fixed telephone, mobile cellular and fixed broadband Internet services, the price of ICT services dropped by 18 per cent globally between 2008 and 2010, with the biggest decrease in fixed broadband Internet services, where average prices have come down by more than 50 per cent.

All economies in the IPB top ten have high GNI per capita, and, with the exception of the United Arab Emirates, all are from Europe and Asia Pacific.

In developed countries, average prices for ICT services correspond to no more than 1.5 per cent of monthly per capita income, compared with 17 per cent in developing countries. But while broadband prices declined sharply worldwide, a high-speed Internet connection remains unaffordable in many low-income countries. For example, in Africa at end 2010, fixed broadband services cost on average the equivalent of 290 per cent of monthly income, down from 650 per cent in 2008.

In addition, the report notes that the actual speed experienced by both fixed and mobile broadband customers is often much lower than the advertised speed, and calls on ICT regulators to take steps to encourage operators to provide consumers with clearer information on coverage, speed and prices.

Download the report or read the full press release.

Source: ITU

UMTS-HSPA Reached 750 Million Subscriptions

BELLEVUE, Wash. – In 2Q 2011, Latin America saw remarkable uptake of mobile broadband with an annual growth rate of more than 90 percent, close to double the number of mobile broadband subscriptions, for UMTS-HSPA, reports 4G Americas, based on subscription data from Informa Telecoms & Media. Compared to a total base of 29.5 million UMTS-HSPA connections reported in the second quarter 2010, there were 56.1 million UMTS-HSPA connections reported at the second quarter of 2011.

Americas
In the Americas region, 3GPP technologies (GSM-UMTS-HSPA-LTE) grew by 19.26 million new subscriptions, of the total (net) 19.4 million mobile subscriptions added in the second quarter 2011 and represent 99.26 percent of the total new connections added in North, Central and South America. The explosion of 3GPP mobile broadband (UMTS-HSPA-LTE) subscriptions, as service providers continue to upgrade their networks to HSPA and HSPA+ and now LTE mobile broadband, demonstrates the increasing demands of mobile users in advanced wireless technology services and applications, and the growing proliferation of smartphones. A huge shift from 2G technologies is evident in the Americas region, with 3GPP mobile broadband subscriptions rising from 92 million at the end of second quarter 2010 up to 145 million as of June 2011.

3GPP technologies held a market share of 76 percent at June 30 in North, Central and South America, In the second quarter 2011 alone, GSM added almost 5 million new connections, while UMTS-HSPA added more than 13 million new connections and LTE added 1.23 million, for a total of 19.26 million new connections.

Total 3GPP subscriptions in the Americas reached 717 million as of June 2011, an increase of nearly 83 million new subscriptions in the region from June 2010 to June 2011.

“The 3GPP wireless technologies continue to lead the way in the Americas as one of the most prolific technology inventions for society,” stated Chris Pearson, President of 4G Americas. “HSPA and HSPA+ have provided a ubiquitous foundation for fast mobile broadband in North, Central and South America and LTE momentum is beginning to pick up in North America and the rest of the world.”

Latin America & Caribbean
The market share for 3GPP technologies continued to increase in the Latin America and Caribbean region, rising above 94 percent at the end of the second quarter 2011. Total 3GPP subscriptions (GSM-HSPA) equaled 564 million, supported by the addition of 69.6 million new 3GPP technology connections in the one year ending June 2011, of which 26.6 million were UMTS-HSPA mobile broadband connections. As noted, 3GPP mobile broadband subscriptions were close to double the number of subscriptions for the 12 months ending June 2011.

“HSPA and HSPA+ are providing Latin Americans with easy and efficient ways to connect to mobile broadband for work and play,” said Erasmo Rojas, Director of Latin America and the Caribbean at 4G Americas. “With the exciting momentum of HSPA+ deployments throughout the region, subscribers are simultaneously experiencing fast broadband connections for all types of business, enterprise and consumer value-added applications. The success of the HSPA evolution is paving the way for LTE trials and expected launches in many Latin countries during 2012.”

The Latin America and the Caribbean region now offers a large coverage footprint of HSPA+ on 21 networks in 13 countries. This number is due significantly to America Movil launching nine new commercial HSPA+ networks under the Telcel, Comcel and Claro brands in Brazil, Chile, Colombia, Dominican Republic, Ecuador, Mexico, Panama, Peru and Puerto Rico. Additional HSPA+ networks throughout Latin America and the Caribbean include Cellular One and Digicel in Bermuda; Digicel in Dominican Republic; LIME in Jamaica; Cable & Wireless in Panama; AT&T and T-Mobile in Puerto Rico; Movil de Entel in Bolivia; Movistar in Ecuador; and Iusacell in Mexico. In Chile, both Entel and Movistar offer HSPA+ dual carrier at peak theoretical downlink throughput at 42 Mbps.

U.S. and Canada
In the U.S. and Canada, 3GPP technologies added a net 3.1 million new subscribers of the net total 4.7 new subscriptions in the second quarter of 2011. Included in this quarterly number were 6.6 million new mobile broadband (UMTS-HSPA) connections and 1.2 million LTE connections reflecting the customer shift from the second generation GSM and CDMA subscriber base to the next-generation technologies. UMTS-HSPA subscriptions totaled nearly 89 million at the end of second quarter 2011, up 41 percent from one year earlier when UMTS-HSPA subscriptions totaled nearly 63 million.

Today, there are 16 commercially deployed HSPA networks in the U.S. and Canada, including 5 HSPA+ networks, an increase of 5 commercial networks since June 2010.

There are 3 LTE networks in the U.S. and Canada with 8 additional commercial launches expected by the end of 2011. LTE subscriptions achieved almost 2 million worldwide with North American subscriptions representing 93 percent of the global LTE subscriber base.

“With the large North American CDMA operators shifting towards LTE for their next generation networks, we will see an even larger portion of net additions coming from 3GPP technologies, most notably LTE and HSPA, as we move forward,” stated Kristin Paulin, Research Analyst- North America & Caribbean, Informa Telecoms & Media.

Global
Worldwide, there are 412 commercial networks in 157 countries that offer HSPA, including 163 HSPA+ commercial networks in 80 countries. These HSPA+ networks are at varying levels of technical enhancements: 112 networks at peak theoretical download throughput rates of 21 Mbps; 10 networks at peak theoretical download throughput rates of 28 Mbps; and 41 networks at peak theoretical download throughput rates of 42 Mbps.

The 3GPP technology roadmap continues to progress with its evolution to LTE. There are currently 28 commercial networks in 20 countries with a total of 50 commercial LTE deployments expected by the end of 2011. LTE will be the next-generation OFDMA-based global technology standard for GSM, CDMA, Greenfield and even WiMAX operators with commitments regarding future deployments by more than 250 operators worldwide.

Statistical Charts

For more information and to view a variety of statistical charts on the 3GPP family of technologies, visit www.4gamericas.org

About 4G Americas: Unifying the Americas through Mobile Broadband Technology

4G Americas is an industry trade organization composed of leading telecommunications service providers and manufacturers. The organization's mission is to promote, facilitate and advocate for the deployment and adoption of the 3GPP family of technologies throughout the Americas. 4G Americas contributes to the successful commercial rollout of 3GPP mobile broadband technologies across the Americas and their place as the No. 1 technology family in the region. The organization aims to develop the expansive wireless ecosystem of networks, devices, and applications enabled by GSM and its evolution to LTE. 4G Americas is headquartered in Bellevue, Wash., with an office for Latin America and the Caribbean in Dallas. More information is available at www.4gamericas.org.

Telework in 10 Years from Now

Chris Knotts is vice president of technology and innovation at Force 3, an IT services provider for government agencies.

I have good news for government agencies wrestling with how to implement and maintain effective telework policies and procedures: In 10 years, the word “telework” will feel as outdated as a rotary phone.

Knowledge workers won’t telework. They’ll simply work in whatever location makes the most sense. As I look out at the evolving technology landscape, I have 10 predictions for what the future holds.

1. Wireless carriers will increase to wired speed. The next evolution of mobile technology will bring the speed of wireless carriers in line with wired networks. Along the way, a security breakthrough will occur that will change the way we access information and ease hacking concerns dramatically.

2. We’ll be online all the time. The idea of “getting online” will seem antiquated. There will be no more hot spots or network connections. The network will simply be there — and we’ll be on it.

3. Tablets will replace desktop and laptop PCs. Desktop and laptop PCs will be supplanted by tablet PCs that are micro-thin and foldable. Picture a foldable smart phone that expands to a 20-, 30- or 50-inch screen. The new devices will have an on/off button but no more fans or moving parts. Because we’ll be accessing more information and applications in the cloud, the need to store data on the devices will decrease dramatically.

4. Everything will move to the cloud. Every application that we access will be in the cloud, and people will no longer store anything locally. In other words, you will have a hard drive, but it won’t be part of your computer.

5. There will be no more boxed software. What got the big software vendors to 2011 will not get them to 2021. I believe all software will transition to a service-based approach.

6. Text messaging is here to stay. Text messaging fits the way we work and live incredibly well. Therefore, even as networks and devices evolve, the practice of sending short text messages will endure.

7. 3-D video will become the norm. 3-D technology is mainly seen as a novelty now, but in 10 years, most teleconferences will be conducted with 3-D video. Imagine working from a home office and taking part in a 3-D video conference with colleagues and partners from around the globe. Workers are going to have to shower and dress for that one!

8. There will be no more Bluetooth. The image of someone walking around with a Bluetooth device sticking out of his or her ear will feel outdated by 2021. Those gadgets will be replaced by embedded audio in or on our ears (or somewhere else on our body).

9. Holdouts will proliferate. Not everyone will want to be on the grid all the time. I believe we’ll see a growing subculture of people who reject technology and form niche communities or companies.

10. The generation gap will get bigger. Previous generations will struggle more than younger generations as the workplace of the future evolves. The next generation of employees will not see the workplace as a focal point of social interaction. Being able to work will suffice, and they won’t feel that they need to be in the same place as their co-workers.

Right now, what’s holding many agencies back from telework are issues of control and trust in their employees. But as technology and human expectations evolve, telework will simply become “work,” with a greater responsibility placed on the individual to manage the balance between personal and professional time.

Symphonet secures RM1.359bil guarantor

KUALA LUMPUR: Although it has yet to secure financiers, Symphonet Sdn Bhd announced that it has a guarantor for US$453mil (RM1.359bil) to fund its three large projects.

Chief executive officer Datuk Baharum Salleh said the three projects an e-commerce trading platform, and two submarine fibre optic cable systems, namely the Johor-Jakarta Cable System (JJCS) and Terengganu-Vietnam Cable System (TVNCS) were financially backed by Indonesia's PT Saras TLP Investment (Saras Group).

“Saras Group will be the guarantor for all those projects. We're still negotiating to secure financing. We've not decided yet... whichever bank that can give you a good deal,” Baharum said at a briefing after a signing ceremony between Symphonet and Saras Group, PT Interkoneksi Internet Indonesia (3i) and Vietnam Hi Technology Development and Investment Joint Stock Company (VITEDI).

Baharum declined to disclose which bank would provide the financing. “We hope to secure the funds as soon as possible subject to the discussion taking place,” he added.

On the cost of the projects, he said about US$300mil would be required for the e-commerce platform, US$100mil for JJCS and US$60mil for TVNCS.

The JJCS will link Iskandar Malaysia in Johor to Jakarta, while the TVNCS is from Kertih, Terengganu, to Vung Tau in Vietnam. The e-commerce project belongs to the Saras Group and would be carried out by Symphonet.

The Indonesian group will also fund the e-commerce project, which will cover at least 480 sites in Indonesia. Baharum said the details of the investment and ownership structure of the underseas cable projects were, however, still being discussed.

Symphonet had earlier announced its joint venture (JV) with 3i on the 1,300km JJCS. Yesterday's event formalised the setting up of the JV company, Malindo Cable Network Pte Ltd. At the same time, Symphonet signed a consortium agreement with VITEDI for the 800km TVNCS.

The TVNCS is meant to serve as the Eastern international gateway into the Indochina markets, while the JJCS was positioned as the Southern gateway that would extend its customers to India, the Middle East, Europe and the United States through strategic partnerships.

When asked on the expected revenue from the projects, Baharum said all three would have recurring income, with the JJCS expected to generate the most.

Without disclosing details, he added that Symphonet and the Saras Group would be announcing four more projects in the near future, including two in Malaysia.

Source: the Star Online 24 August 2011

Symponet bags US$300m deal to set up e-commerce in Indonesia

KUALA LUMPUR: Little known company Symponet Sdn Bhd has bagged a US$300 million deal from
Indonesia's PT Saras TLP Investment Group to establish an e-commerce platform in Indonesia.
Symponet, established only three years ago, has been given the job to integrate 480 outlets across islands of
Indonesia.
Symponet managing director Datuk Baharum Salleh said that the e-commerce platform will also have two
data centres and network operations centres - one each in Jakarta and Kuala Lumpur. It will also have a data
recovery centre in Malaysia.
Baharum was speaking to reporters following the signing of three documents, one of which was an
memorandum of understanding for the e-commerce platform.
The Saras Group, which is described as providing international financial services, is also acting as guarantor
for two other submarine cable projects - a 1,300km cable from Iskandar Johor Bahru to Jakarta with an
estimated cost of US$100 million and a 800km from Kerteh in Terengganu to Vung Tau in Vietnam worth
US$60 million.
Symponet is yet to secure any funding for these projects, but Baharum said it is in talks with several
institutions to see who can offer the best deal.
However, initial work on the Johor-Jakarta Cable (JJC) has commenced with the likely date for completion set
for end-2012, at the latest.
Symponet also formalised the joint venture with PT Interkoneksi Internet Indonesia called Malindo Cable
Network Pte Ltd for the JJC yesterday.
Another agreement was for the setting up of a consortium with Vietnamese broadband service provider
Vietnam Hi Technology Development and Investment Joint Stock Company (Vitedi).
The equity structure of both cable projects are yet to be determined. Baharum said that there could be as many
as four partners in each project.
The Saras Group financing instrument arrangement is to the tune of US$453 million encompassing a total of
seven projects, two of which are yet to be announced.
The group was represented by its executive chairman Arya Widjaya.
Source: Business Times 2011/08/24

England Riots: Hackers hit BlackBerry Site over Police Help

A hacker group has attacked Blackberry's website after the company said it would assist police investigating riots in the UK.

Team Poison defaced the official Blackberry blog, posting a message that threatened the firm with retaliation if it handed user data to authorities.

Blackberry's instant messaging service is believed to have been used by some looters to plan their movements.

The firm has promised to co-operate with police and the Home Office.

In its statement, Team Poison said that it did not condone innocent people or small businesses being attacked in the riots.

However, it added: "We are all for the rioters that are engaging in attacks on the police and government."

The group argued that if Blackberry gave subscriber information to police, it could lead to the wrong people being targeted.

"Innocent members of the public who were at the wrong place at the wrong time and owned a Blackberry will get charged for no reason at all," said Team Poison's statement.

It threatened to release employee information, including names, addresses and phone numbers of Blackberry staff.

UK laws mean police can request data from individuals' mobile phones when that information relates to criminal activity.

The procedure is governed by the Regulation of Investigatory Powers Act.

Partner or Perish

By Joseph Waring, Telecom Asia

"What do my customers want?" While it may seem like a simple question, it is shocking how many operators really don't have a clear picture. Traditional telcos are still focused on the technology - bringing down the cost per bit and delivering the fastest speeds. The marketing guys are mostly left out of the equation.

That's the "old" school. A roundtable of telco and media executives moderated by group editor Joseph Waring recently discussed how operators have to open up, give up some control and accept they are now the servant of the user.

The days of pushing ahead alone in segments that aren't their core competencies, such as music and entertainment, are over. The new model is partnerships, in various forms, and increasingly dealerships.

Softbank senior executive VP Ted Matsumoto said that in the past business executives were motivated by egos - they wanted to control the market by having others use their technology or products. "But today no one can do everything so it's a mixture of many people putting together components. In this new world, once you accept that the customer is the top priority, your life becomes easier. To be successful we have to get user support - no one will argue with that."

But he notes there is always the tendency for a company to want to "be the guy who sells to the users, but actually it has to be a mixture," citing the example of the winning package of iPhone hardware, Apple App Store and the operator's network and services.

When you realize you are the servant of the user, Matsumoto said it breaks down any reluctance to tie up with others. He said Softbank's exclusivity for the iPhone has given it differentiation and is the secret to its success.

Blyk co-founder Antti Ohrling pointed out the distinction between partnerships and dealerships, which need to be exclusive to have value. He said he's sure there are big players out there that will never give exclusivity because they don't need to.

"But on the other hand, operators sit on that gold dust of knowing their customers better than anybody else. By combining that intelligence from the network with Blyk's intelligence about what people say they like and don't like, it's a staggering picture you start to develop."
He said that is a level of intelligence that is not available from the over-the-top players, noting it gives operators a chance in a specific geographical area.

But having access to customer data and using it are two very different things. Nucleus Connect CEO David Storrie expressed surprise at how little some telcos know about what their users want.

"As a wholesaler, our whole business is based on partnering with the service providers. When we sit down with potential service providers, the first thing I do is ask them what they are trying to deliver to end-users, and you'd be amazed at how many blank faces there are on the other side of the table," he said.

Loo Yew Ming, Universal Music's VP for digital & business development, noted that the issue is that telcos try to work in a space that's not their core competencies. "Take music for example - a lot of operators try to sell music when the guys running those divisions know nothing about music. That's where they can definitely benefit from a partnership. Music marketing is our core competency and you guys run the network and know the customers best."

Dialogic CEO Nick Jensen said, “You’re spot on. A traditional telco is a technologist's playground - the marketers are the minority. With an MVNO the marketers are the majority because they don't care about the network infrastructure."

But partnerships come in many forms and benefit telcos differently. Ohrling explained that operators need social networks like Facebook more than they need operators. "If that is the case, they aren't paying you, you are paying them - because if you don't have them you're not as good in the marketplace as your competitor. The consumer wants that more and they don't care where they get it.

"There's this dynamic happening as well, it's not just a matter of being a partner or a dealer, but someone paying a 'market tax' which is eating up the playing field, like in the cable TV industry."

CSL CMO Mark Liversidge said it's a question of helping the end-user use Android and Apple devices for all the things they want and have a good experience on the social networks of their choice. "Our focus is how do we provide this in a packaged way that makes it easy for them to access."

CSL recently launched a social media program called Tribes, which builds social comment on Apple and Android.

The market reality, Jensen said, is that "if you have Apple, the other guy has Apple. If you have over-the-top play, the other guy has it. Everyone has Facebook and everyone will have LTE."

He said carriers are saying they don't just want to be the pass-through guy or the middleman who doesn't add value on the content side. "They want to own content because they have to compete with the guy around the corner that has the same devices, the same spectrum and the same network equipment. I can't differentiate there, so I have to differentiate on being hip and providing content the others can't."

He asks operators: "What do you want to do? Because you can't all do the same thing. If you all do the same thing, there is no differentiation and it becomes a commodity."

Jensen, explaining the benefits of blasting an announcement of say a Lady Gaga concert that is available to your video subscribers, said such a promotion drives sales of high-end handsets and generates transaction-based revenue from users who watch the concert on their handsets.

"Over time you build profiles and then you can add advertisements. That's how you make money so you don't have give it to Apple or give it to Google because you control it. You become hip because it happens on your network."

Ohrling said, from Blyk's experience, any information you gather is negative unless the subject knows you're doing it. "It's about transparency. People are willing to share an incredible amount of information if you tell them why. When you become a master of your subscribers' information, then the question of partnership or dealership becomes less important because you are the best channel to any individual in that market."

He said he found the Universal Music approach of working with mobile operators on a revenue sharing basis refreshing. "With the type of exclusive partnerships you can get much more intimate. You can build IPR that your partners can have and use."

Loo from Universal Music said that is the key driver of its partnership with SingTel. "The only way to go to a promoted concert for free is to sign up with SingTel and buy a device."

Nucleus Connect's Storrie pointed out that some offers to customers, such as LBS in-store promotions, are powerful only when they reach the majority of the market.

He gave an example of a retail chain in Singapore sending special offers to customers by SMS. "It didn't take off because they really needed to have all the operators working together so everybody in the store got the message, not just the StarHub customers."

Jensen said the challenges of the carriers are very different from market to market because of huge variations in monthly spend, the amount of fiber available and the bandwidth available.

Carriers have a choice – they can be an enabler of bandwidth and let people pass through and collect payment. "It's a great business model and will work for some markets if you're good at taking the costs down. But operators in developing markets like India and Bangladesh with low ARPU don't have that luxury - they don't even have customers that can afford to by an iPhone. Activity is transaction based."

He said the users still want a smartphone, so the operators have to think differently. Because content is king, he encourages them to have exclusive access to content, like Airtel, which owns the rights to Premier League Cricket and Manchester United content.

The operator's model is for users to make per-game or per-minute downloads and time shift to make a purchase of say a ManU jersey on the Airtel site and go back to the game.
Softbank's Matsumoto raised the point that many times business people are too impatient and try to make money very quick. "I think it's a mistake. If you sell devices capable of supporting certain services, users shouldn't have to always calculate how much they'll have to pay in total. But if they buy an expensive device and all the services are free, they will make a decision. To start with it should be free."

CSL's Liversidge said the industry needs to throw out the old model of looking at the number of connections. “It's the out old-fashioned way of looking at things. We need to shift our thinking to the context of 'we have a network, it's a sunken cost, how do I fill it?' I have to think like an airline now. If that jumbo flies half full, I can't take seats off and put them on the next one; it's wasted inventory."

He said CSL is shifting its focus to the end-user and moving away from the standard operator model of a single user, with a single device on a single plan. "This is why we've got into position where we're obsessed with the big device vendors that have been in control."
Because more consumers are carrying multiple devices, CSL has to cater to that change. "It's more important for us to build service support and delivery of content and apps to devices, which is were we see our value and where we'll take our profitability from."

He said CSL is getting out of the game of giving away devices with massive subsidies.