BuddeBlog

The broadband arena is currently being contested by two technologies – DSL (digital subscriber line) and cable modems. Residential customers are the major users of cable modems, while both businesses and consumers mainly use DSL. However, the advantage of cable, speed of download, could soon be lost with the introduction of G.SHDSL – one of several new versions of DSL high-speed Internet access.

G.SHDSL could be capable of delivering data two to three times faster and over a greater distance than the earlier DSL technologies. It is already being used on a limited basis in Europe and is being considered for trial next year by some of the largest American service providers.

Until now DSL has experienced problems because signals typically degrade over distance, limiting the speed of download for remote users.

The new technology, which has been approved by the International Telecommunication Union, is a standard for DSL which is capable of speeds of 2.3mb/s or even up to 4.6mb/s. Data-transfer speeds are symmetric – in other words, information can be downloaded and uploaded at the same speed. In fact, some versions offer faster downloads than uploads.

As well as this, by using repeaters to boost the signal over distances, high-speed service will in the future be available to consumers and businesses beyond the previous three mile limit.

Some experts believe that this new technology will eventually take the place of the DSL options that are currently available in the industry. But others take the view that, despite the obvious advantages of G.SHDSL, the current ADSL standard will remain popular with residential users because of its high ‘downstream’ speed (8mb/s).

Japan’s Nomura Research Institute Ltd predicts that by the end of 2006, about 50% of Japanese households will have broadband Internet access. A target of 10 million broadband subscribers by 2005 has been set by the Japanese government.

By the end 2006 the domestic broadband market is predicted to increase to over 22 million households from almost 3.5 million in 2001.

Predicted number of connections by category – 2006 (e)

Category Number (million)

Fibre optic connections 6.4

Digital subscriber lines 5.5

Cable subscribers 5.4

Fibre-wired apartment blocks 2.6

Fixed wireless Internet access customers 2.3

(Source: Nomura Research Institute Ltd)

Value by market – 2001 and 2006 (e)

Market 2001 2006 (e)

Domestic broadband Internet ¥80 billion ¥475 billion

(US$667 million) (US$4 billion)

Internet service provider ¥588 billion ¥745 billion

(US$4.9) (US$6.2 billion)

ASP ¥6 billion ¥57 billion

(US$50 million) (US$5 million)

Online advertising ¥76 billion ¥588 billion

(US$633 million) (US$4.7 billion)

(Source: Nomura Research Institute Ltd)

Oxford Industry Analysts, an independent telecom and IT consultancy group, published a report, Health and 3G Rollout, arguing that the potential health issues surrounding mobile telephony could greatly affect the already beleaguered telecom markets.

It is suggested that with the rollout of the so-called 3G networks, in which many more base stations will be needed over the next couple of years, public support could shift on the basis of the perceived health risks. Already at a regional level many local authorities are tightening up on the siting of base stations. This is a trend that could delay the already deferred rollout and raise the costs of an already over-priced strategy.

The research company emphasise that there have been no reported substantiated links between the use of mobile telephones, the necessary infrastructure, and detrimental health affects. What is in question is the industry’s ability to anticipate and confront potentially crippling challenges.

The report points out that recent moves by the EU to curb roaming revenues highlight the industry’s failure to confront the issues that shape its future. ‘The failure to act on roaming will prove costly in terms of increased scrutiny and regulation,’ suggests the report. ‘The failure to act on health and other threats to its business case could set the wireless industry back years.’

For more info: www.oxford-industry-analysts.com

The New Zealand Government has announced that it has set aside NZ$300,000 to bring high-speed Internet connections to rural communities.

The money is to be allocated to groups in Northland, Taranaki, southern Waikato, the East Cape, Wairarapa, and Southland, who have projects underway to make broadband access commercially viable for rural communities.

The Government wants all communities to have access to broadband technology by the end of 2003.

See Web report: New Zealand – High Speed Internet and Broadband Services

Vivendi Universal and Deutsche Telekom (DT) have been involved in a battle to gain control of Polish alternative telecoms operator Elektrim and its 51% share of Eastern Europe’s largest mobile operator, PTC of Poland.

Elektrim also owned fixed line local operators El-Net and TV Tel and had 99% ownership of Telefonia Regionalna. Its subsidiary Elektrim Telekomunikacja (ET), of which Vivendi owned a 49% share, owned Telefonia Polska-Zachod (TPZ) and Bresnan International Partners, Poland’s second largest cable TV company. El-Net has five local licences, including a licence for Warsaw to compete against TP SA which it won in December 1998.

The other major shareholder with Elektrim in PTC is DT with a 45% stake. The purchase by Elektrim of 15.8% of PTC shares in August 1999, and a plan to transfer shares to ET ownership (and therefore to Vivendi co-ownership), led to a dispute with DT, which had a right of first refusal of 3% of the shares. This was initially resolved by a preliminary agreement in December 2000 for Elektrim to sell controlling stakes in its fixed-line and data communications companies to DT but this plan fell through in May 2001.

By early 2001, in addition to its 49% share of ET, Vivendi had built up its holding in Elektrim to over 10%. Vivendi attempted to prevent the conclusion of the fixed line sale to DT through legal action in an international arbitration court, alleging that Elektrim had breached a 1999 pact which stipulated that if the firms reached a deadlock over the running of ET, Elektrim would be forced to buy out Vivendi. However, if Elektrim were forced to buy back Vivendi’s share of ET, Elektrim would be bankrupt.

DT then offered US$400 million for control of PTC. On the same day that the board were due to consider the DT proposal, Vivendi put forward a plan to merge Elektrim with ET in exchange for new shares that would give Vivendi control of Elektrim.

Finally, in early September 2001, Elektrim completed negotiations to sell its telecom related assets to Vivendi for E491 million. The deal includes Elektrim’s three fixed line operators, El-Net, TV Tel and Telefonia Regionalna, and mobile operator PTC. The assets will be transferred into ET, which will be majority owned by Vivendi with Elektrim retaining 49%. The deal does not include Elektrim’s three Internet units. Vivendi said it plans to float ET on the Warsaw Stock Exchange within the next year and a half and will pay for the transaction by 2 January 2002.

For more information see web reports Poland – Key Statistics, Telecommunications Market and Major Players and Poland – Internet, Wireless Communications and Broadcasting.