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CommunicAsia 2015 Showdaily - Day4 June5

1. #4, Friday 5 June 2015 Day 1 to 3 CommunicAsia visitors: 19,909, Overseas visitors: 46% live update at Don Sambandaraksa Asia’s telecoms…
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  • 1. #4, Friday 5 June 2015 Day 1 to 3 CommunicAsia visitors: 19,909, Overseas visitors: 46% live update at Don Sambandaraksa Asia’s telecoms regulators are develop- ing a variety of strategies to narrow the broadband digital divide, but with vary- ing success as policies collide with street- level realities. Speaking at the CommunicAsia2015 Summit, Arvind Kumar, advisor to the Telecom Regulatory Authority of India (TRAI), described the regulator’s inter- vention to save the stalled fixed-line busi- ness (in the hopes of kickstarting fixed broadband) by exempting fixed-line pro- viders from termination fees so they can offer unlimited calling bundles. “This may mean a short-term reduc- tion in revenue, but it means saving the subscriber and the long-term health of the fixed-line network,” he said. However, Arvind admitted that one of India’s greatest challenges in develop- ing the fixed-broadband market is right- of-way problems. “The central government cannot in- tervene with the local government, and in many cases the cost of right-of-way is one thousand times the actual cost of lay- ing fiber,” he said. Another challenge, he added, is the Continued page 14 ... John C. Tanner There is a significant opportunity for FTTx rollouts in emerging markets, but only if government regulators shape up their policies and stop protecting in- cumbents. That’s according to Benoit Felten, chief research officer at Diffraction Analysis, who kicked off the Broadband Access track of the CommunicAsia2015 Summit on Thursday saying that there are already some examples of FTTx suc- cess in emerging markets, despite more attention being lavished on mobile as an access technology. But for many emerging markets, he warned, the overall fixed broadband op- portunity is hindered by complex poli- cies, unnecessary regulatory hurdles and discriminatory practices designed to pro- tect the incumbent, such as high transit costs and rights-of-way regulations. “Rights-of-way regulations are a ma- jor barrier in many emerging markets, making it nearly impossible for anyone other the incumbent to deploy fiber,” he said. “In order to unlock this opportunity, we don’t need public money so much as we need enlightened government in- volvement.” The big challenge, of course, is how to convince governments and regulators to back this view – especially if the plan involves public money for facilitating broadband backbone infrastructure. Felten said that there is growing awareness among policymakers of the potential value of fixed broadband, but enormous hurdles remain in many emerging markets. “How do you unleash that value in the face of opposition from the incum- bents and other parties who see it as threatening their turf? Incumbents in Continued page 10 ... PREPARETOLAUNCH:Booth assistants Evangeline Gay (left) and Stella Yeo display the E653 LTE dual-SIM smartphone from Shanghai-based OEM Phicomm. Later in the day after our photographer was unavailable, Phicomm launched the P660, a new midrange dual-SIM LTE smartphone running Android 4.4 that features a 64-bit 1.5GHz Qualcomm Snapdragon 615 octacore processor, a 13MP rear camera and 5MP front camera (with multi-face detection and HDR features). Booth: 1B3-01 Broadband policies often struggle with reality: officials FTTx goldmine in emerging markets hindered by regulators, incumbents Official Mobile Apps Download the official events’ mobile apps from App Store or Google Play to get the latest event highlights and information. Search for ‘CommunicAsia2015’ for the CommunicAsia2015 and EnterpriseIT2015 mobile app, and ‘BroadcastAsia2015’ for the BroadcastAsia2015mobileapp.Alternatively, scan the below QR Codes to download the apps. CommunicAsia2015/ EnterpriseIT2015 BroadcastAsia2015 many emerging markets are still locked in monopoly thinking – they don’t real- ize that what you’re proposing is not tak- ing away their slice of the pie so much as growing the pie.” Felten said that the industry “has to accept that existing players are no longer fit to invest in infrastructure. They are too focused on the short term. These are broadband infrastructure projects we’re talking about, it’s a platform that will last 40 years. It may be bleak for the first five, so of course it will look weak if you analyze a 40-year plan with short-term thinking.” That’s why policymakers are wrong to assume that the incumbent should be the one to take the lead in building broadband infrastructure, he added. “That’s not the way to go – we need inde- pendent pure infrastructure players who are happy with a 15-year plan, whether it happens with public funding or not.” Felten cited Hong Kong Broadband Network (HKBN) as an example of a suc- cessful long-term play.
  • 2. O3b Networks has signed a deal to provide trunking servic- es to SpeedCast for its customer Christmas Island Internet Ad- ministration Limited (CIIA), the only ISP on Christmas Is- land. Under the agreement, SpeedCast will provide CIIA with broadband internet con- nectivity, enabling what it says is “the first broadband Internet access experienced on the is- land.” Up to this point, communi- ty-owned, non-profit CIIA has been relying on geostationary satellite connectivity (also pro- vided by SpeedCast) for inter- net access, Using O3b’s broadband- enabled MEO satellites will re- duce latency, increase internet speed and improve voice and video quality. CIIA will use O3b’s IP trunking solution, O3bTrunk, that boosts existing link capaci- ties to rival the throughput and latency of terrestrial fiber, while avoiding the prohibitive cost of laying an undersea cable to the APNIC is at CommunicA- sia2015 to highlight oncoming IPv4 exhaustion. Their target audience: telcos and broadband ISPs who must begin their IPv6 transition, as well as large cor- porates. Vivek Nigam, member ser- vices manager at APNIC, said that many corporates may not re- alize the benefits of having their own portable IP addresses and how they can implement load island, said Imran Malik, VP Asia for O3b Networks. “Because Christmas Island does not have an undersea ca- ble, but relies completely on satellite for communication, only O3b can provide the throughput needed to bring true broadband to subscribers,” Malik said. SpeedCast CEO Pierre-Jean Beylier said the company an- ticipates “a dramatic improve- ment in performance with a threefold increase in capacity and a 75% reduction in latency.” The SpeedCast/CIIA win is the latest feather in O3b’s cap, which has signed up around 25 active customers to date – half of them in Asia, which accounts for 40% of O3b’s busi- ness, according to O3b CEO Steve Collar. “That’s pretty good after just nine months of commercial service,” Collar said. Collar told the Show Daily that business is so good his firm’s next immediate step is to “get approval to buy more satel- lites. The demand is incredibly balancing and multi-home their IP blocks. “Our role is the even distri- bution of IP and AS numbers, and to explain to people how our membership works,” said Nigam. Paul Wilson, director-general of APNIC, said that the current rate of IPv4 depletion will reach a critical turning point shortly. ARIN, APNIC’s North American counterpart, has al- strong, we’re ahead of our plan and we see that we’re going to run out of capacity if we don’t build more.” One key factor behind that demand, Collar explained, is that once a customer gets con- nected in a given market, de- mand for more capacity esca- lates pretty quickly. “In East Timor, for example, our customer there started off with 200 Mbps, which was what they had over GEO, and it was stable for a couple of years, but now they’ve already increased that to 650 Mbps – a threefold increase – because of demand from their users. They like that their service isn’t limited by the 600-ms latency that you get with GEOsat, so it’s a better ex- perience. And we’re seeing that pattern in other markets we’ve gone into.” O3b currently has 12 satel- lites in orbit. Collar says he will look to order another eight in the relative short term. 3 O3b: L3, Heliconia 3401B SpeedCast: Booth 1U2-01 ready run out of IPv4 numbers and Wilson expects that one day – probably in weeks – the day will arrive when they will just say “no” to requests for the wait-list. IPv4 numbers won’t run out but will move to a secondary transfer market. Prices will quickly rise to the point where the cost of addresses will be a major factor to anyone rolling out a new net- work, according to APNIC. 3 Booth BN5-01 SEA, Oceania smartphone subs pegged to triple by 2020 Smartphone subscriptions in South East Asia and Oceania are on track to triple by 2020 as mobile traffic in the region expands ninefold, according to Ericsson’s latest Mobility Report.The company forecasts that by 2020 smartphone subscriptions in the region will grow to 800 million, with LTE constituting nearly 25% of mobile subscriptions and 3G accounting for 70%.Total mobile data traffic is meanwhile predicted to climb to three exabytes per month. During the first quarter of 2015, Myanmar, Indonesia, Bangladesh and Vietnam ranked among the top countries globally for mobile net additions. India’s SSTL looking to jump from 2G to 4G India’s Systema Shyam Teleservices (SSTL) is seeking to transition from 2G CDMA technology to LTE, and is aiming to negotiate 4G spectrum sharing arrangements once the government publishes its rules on spectrum sharing and trading. SSTL CEO Dmitry Shukov told the Economic Times that the timing of the company’s transition to 4G will hinge on factors including the new spectrum sharing policy and the government’s new M&A policy. Sistema Shyam is the Indian subsidiary of Russia’s Sistema, and operates services under the MTS India brand. Liberty Telecoms may lease towers The Philippines’ Liberty Telecoms Holdings is evaluating whether to lease out some of its telecom assets, including its towers, to raise funds to its existing operations. The company is exploring ways to generate new revenue streams and maximize its existing telco assets, and leasing out towers is one scenario being considered, Liberty Telecoms CEO Bienvenido Bañas told ABS-CBN News. Liberty Telecoms recently emerged from a court-ordered debt rehabilitation program following the suspension of its operations in 2005 due to a lack of capital.The rehabilitation program was completed 20 months ahead of schedule. Globe taps Aviat for LTE expansion Globe Telecom has contracted Aviat Networks to supply equipment for the Philippine operator’s aggressive LTE footprint expansion. Under the deal, Aviat will provide its microwave networking technology to help Globe increase the capacity of its backhaul network. Globe is using TDD and FDD access technologies with the network rollout, and deploying both LTE and LTE-Advanced. Globe chief technical advisor Robert Tan said the LTE rollout will allow the operator to “continue to empower our almost 50 million mobile customers with their unique digital lifestyle.” Telenor to switch off 3G before 2G Telenor has revealed plans to switch off its 3G network in Norway in 2020, but keep its 2G network operational until at least 2025. Speaking at the company’s investor day, CTO Magnus Zetterberg revealed that the company thinks it’s preferable to retain 2G rather than 3G because devices today all are still embedded with 2G, and 2G technology is still important for applications including M2M. By contrast 4G is rapidly overtaking 3G as the preferred mobile data standard in Norway, now accounting for 60% of mobile data traffic. The operator also aims to expand its LTE network to cover 99% of the population by the end of 2016. SpeedCast taps O3b to boost broadband for Christmas Islands APNIC talks IPv4 depletion and IPv6 replacement OVERNIGHT wIRE 5 JunE 2015 LATEST NEWS 3 MANAGING DIRECTOR Jonathan Bigelow, GROUP PUBLISHER Gigi Chan, EDITOR Stefan Hammond JOURNALISTS John C.Tanner, Don Sambandaraksa, Fiona Chau ART DIRECTOR Dick wong © 2015 Questex Media Group LLC All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording, or any information storage or retrieval system, without permission in writing from the publisher. The editorial content is not necessarily the opinion of the event’s organizer. Provider of the Official Daily Newspaper and Online News Service An Event Organised by
  • 3. Telcos constantly seek to expand their income base as traditional revenue sources dwindle. This obsession to iden- tify new opportunities has driven some telcos onto the turf of credit card com- panies, banks, and insurers. When Canada’s largest telco, Rogers Communications, decided to enter the local credit card market in 2013, it did so knowing that business is dominated by large institutions – including six banks, two retailers, and financial services sub- sidiaries. Rogers had 9.4 million mobile sub- scribers in Q2 2013, a cable TV net- work with 2.2 million subscribers, and 1.9 million Internet customers. Market researcher Catalyst estimates the Cana- dian smartphone market grew 24% with a penetration of 68% in 2014. Christie Christelis of Technology Strategies Inter- national was quoted by Mobile Payments Today: “Even a two percent increase in mobile, TV and Internet subscribers from marketing the [credit] card would be very profitable for Rogers.” WhiletheverdictonRogers’creditcard business is still uncertain, other telcos are making their own foray into a payments market valued by McKinsey at $2.3 trillion by 2018. The growth of the smartphone market raises great interest as retailers dis- cover the power of social media to convert consumers into customers. In Asia, where mobile growth far ex- ceeds industry expectations, there’s op- portunity for governments and regula- tors to finally bring financial inclusion to Asia’s unbanked individuals and SMEs – who for a variety of reasons are unable to use local banking services. Takehiko Nakao, president of the Asian Development Bank, wrote in an article on that only 27% of people in developing Asia are banked, 10% below the global me- dian. In Cambodia, fewer than 5% of people have bank accounts. Only a third of developing Asia’s companies have a line of credit or loan from a financial institution, and 16% of companies don’t have a checking or sav- ings account. Michael Yeo, senior market analyst at IDC Financial Insights, says telcos have become alternatives in places where the existing financial infrastructure is viewed as deficient in terms of services provided. “Telcos have [begun] offering money remittance and deposits to those who are unable to access a bank, and by offering services superior in convenience to banks’ existing offerings. The main pull factor for using telcos has always been the simplicity of getting started: A mobile phone has generally been all that is needed in terms of equipment.” With only 5,000 bank branches serv- ing a rural population of 851 million Vodafone launched its M-Pesa mobile banking service in 2013 aimed squarely at India’s 700 million unbanked. Car- ried out in partnership with ICICI Bank, Phase One will serve 220 million people in India’s eastern areas, where 8,300 M- Pesa agents will help promote the service and assist users. “This market is still at a nascent stage,” says Yeo. “While efforts to launch mobile money systems in the region have met with some success, they’re limited to users with one specific telco subscription partnered with one spe- cific bank – which narrows the potential userbase. Recent efforts put great em- phasis on cooperation between telcos and banks for brand-agnostic solutions which are more likely to reach critical mass,” said Yeo. India will be the market to watch as Bharti Airtel recently applied for a spe- cial banking license there. Further de- velopments in the Philippines and Indo- nesia will also be interesting as these are prime markets for mobile payments. The Philippines with its strong cul- ture of using mobile phones for pay- ments should be able to make the crosso- ver relatively easily. According to Nakao, the number of e-money accounts (which provide holders with access to a stored value of “electronic money”) in the Phil- ippines grew by a third over two years to 27 million in 2013. 3 Respondents who used mobile ‘money’ apps to check bank balances and make online purchases Source: Deloitte Global Mobile Consumer Survey Allan Tan Bank your money with your favorite telco 5 JunE 2015 OPINION4 STAT SNAP
  • 4. Connected to Asia’s Telcos PUBLICATIONS In-depth analysis and insight into Asia’s telco industry from Telecom Asia’s targeted media channels ONLINE • WEBINAR • VIDEO • EVENT • RESEARCH • CUSTOM CONTENT NEWSLETTERS *Telecom Asia Daily *Tuesday Takeaways *China Edition <亚洲电信> *B/OSS Asia *Telco Analytics *SDN Cloud *Telecom & IT Vietnam EVENTS TelcoStrategies • Client event • Conference • Road show Free Subscription, please visit us at booth # BT3-01
  • 5. 5 JunE 2015 NEWS & ANALYSIS 5 Mark Newman, Ovum Telecoms & Media The telco industry tends to focus on the consumer market for digital services and applications. But as ICPs build out their networks to better deliver their own services, they become a growing influence on the future direction of tel- ecoms networks and technology. Will future telecoms networks look Yesterday at CommunicAsia2015, Pana- sonic launched a rugged handheld tablet designed specifically for mission-critical mobile workers in Asia Pacific. The Android-powered Toughpad FZ-X1 is fully sealed against dust and is submersible in up to 1.5 meters of wa- ter for up to 30 minutes, and boasts an operating temperature range of -20°C to +60°C. It is also tested for resistance to impact, shock, vibration, altitude and extreme humidity. Other key features include 14-hour hot-swappable batteries, a built-in bar- code scanner and sunlight-readable HD touchscreens that work even in pouring rain. The device offers optional voice connectivity, a micro-SIM slot, and 4G LTE/3G data. “With the expanding mobile work- force and growing infrastructure in- Global Invacom Group has announced plans to acquire Skyware Global, a US- based manufacturer of satellite terminals manufacturer, for US$11.6 million. Global Invacom will be issuing ap- proximately US$6.6 million in treasury shares and entering into a cash earn-out model to pay Skyware up to a maximum of US$5 million. The transaction, Global Invacom’s largest to date, is pending for regulatory approval. The acquisition will see Global In- vacom add Skyware as its US manufac- turing presence to its existing satcomms production footprint in Asia (China and Malaysia) and Europe (UK and Israel). North Carolina-based Skyware devel- ops, designs and manufacturers Very Small Aperture Terminals (VSAT). Following the acquisition, Global Invacom will be the world’s only full- service outdoor unit supplier, providing an extensive portfolio of products from antennas and electronics to accessories. The companies will target geogra- phies include pockets of South America and Europe and large areas of emerging markets where connectivity often relies on high-speed internet being delivered via satellite, instead of fiber or cable. Post-acquisition, Global Invacom will seek to improve Skyware’s internal efficiencies at a time when a major cus- tomer is expected to launch two new sat- ellites in 2016, which will lift the demand for VSAT terminals. 3 Booth: 1V3-01 more like Internet companies’ net- works? What about the commercial re- lationship between telcos and Internet companies in terms of the buying and selling of network capabilities and tech- nology? The telecoms industry tries in vain to play catch up with the giants of the Internet. Will attempts to follow their network strategies suffer the same fate as their atte
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