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Miraxis Australasia Pty Ltd is a Queensland-based affiliate of Miraxis LLC, a US-based company developing the Miraxis System worldwide. The company has two satellites under development to provide services within the USA. The system represents the new generation of Ka-Band satellite services developed by Enhanced Messaging Service (EMS) Technologies and NASA in the US.

The company provides a fully integrated satellite TV and two-way data communications service optimized for general consumer use, but also capable of supporting business, government, and education-related applications. Employing an advanced, high-capacity space and ground system architecture, it is capable of supporting an unprecedented level of service throughout Australia including rural and remote areas – in the satellite DTH and wireless broadband markets, including:

• up to 100 standard TV and video content channels for nationwide broadcast;

• some 500 standard TV and video content channels providing regional or local content;

• High Definition Television (HDTV) channel capability for selected distribution;

• wireless two-way Web-enabled T-commerce/interactive television applications;

• Australia-wide wireless two-way high-speed Internet access and broadband access;

• VoIP.

The design features a system architecture that enables end-user customers to communicate using a simple desk-top receiver unit combined with a 66cm outdoor dish antenna – a low cost, first- or last-mile wireless solution for television and broadband applications to all regions throughout Australia.

These capabilities and services will be provided through Retail Service Provider partners (RSPs). Miraxis Australasia’s RSPs will ‘own’ the end-user customers, providing them with retail customer support, maintenance services, and retail-level billing; Miraxis will provide second-tier customer support services. The company offers RSP partners a turn-key wholesale managed service, which includes multi-channel video and data transport functionality, as well as value-added capabilities ranging from pay-per-view services to end-user terminal financing, installation and maintenance, training, and other support. Media and content partners can engage Miraxis as a distribution channel for their multi-media products, as well as partnering in the development, distribution, and operation of new multi-media and interactive products, ‘micro-channels,’ ISP/portal/video applications, and other market-specific products and services.

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Annually the telcos spend close to US$200 billion on telecoms investments. This is necessary to fuel the $1.3 trillion industry, which keeps ticking along nicely on a 5% annual growth pattern.

The majority of the investments are actually made by the telcos themselves. Their organisations account for 70% of this expenditure. Over the next decade this will begin to decline as an overall percentage of spend.

Table 1 – Global outsource market $40 billion
Outsourcing services

Management and IT consultancy

Systems integration and facilities management

Education and training

Support services (CRM, billing, call centres)

Roll-out and implementation services

(Source: Paul Budde Communication)

Current changes in a rapidly converging industry will force the telcos to spend more on IT and, as they don’t have the necessary skills in this field, more and more of this will be outsourced. Outsourced services currently constitute around 20% of total spend. The remainder of the money goes into telecoms hardware.

Other interesting changes that are going to take place over the next five years will be investments that are needed to establish a converged telecoms network approach. Over that period NGN investments will account for between $300 and $500 billion.

This transformation is, for many reasons, a slow process. There is a great deal of opposition from within the telcos, as many ivory towers are going to be dismantled in the process. Many people will lose their jobs and it is understandable that such developments create a lot of resistance within organisations.

As a result, spend based on the ‘old world’ art of the telecoms economy could experience a reduction from 72% of total spend to 54 %. Overall spending, however, is unlikely to drop as a result of that, as those savings will most likely be used to move the telcos further and deeper into the converged markets of media, telecoms and IT.

Table 2 – Global telecoms investments 2005, 2010, 2015
US$ billion
Investments
2005
share
2010
share
2015
share

Internal telco
$140
72%
$130
58%
$110
42%

Professional services
$40
21%
$80
35%
$130
50%

Network roll-out
$15
7%
$16
7%
$20
8%

Total
$195
100%
$226
100%
$260
100%

(Source: Paul Budde Communication)

Paul Budde

See also:
Global – Analysis – Markets and Forecasts
Global – Analysis – Telecommunications Industry

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With this chip the cellphone essentially becomes a smartcard with a contactless chip, which needs only to be waved near a machine to be read.

Contactless chips, with as little as 16 kb of memory are used in passports and have become common replacements for tickets on urban transport systems around the world. This tiny removable computer chip is used in the world’s 1½ billion GSM phones to store user and account information.

In South Korea and Japan, carriers are putting advanced payment functions on the SIM. In Europe, Orange is testing a SIM with 128 megabytes of memory, 1000 times as much as the 128 kilobyte cards in use, to hold music and other digital files.

Telecom Italia has developed a SIM card for secure payment that can also remotely control television set-top boxes and other electronic devices. The card developed in Telecom Italia’s laboratories is expected to be in use by the end of 2006. The company says the Z-SIM will have 128kb of memory and be able to turn lights on or off, start washing machines, program the heater and buy television programs from a pay TV service. The appliances would have their own SIM cards that would allow them to recognise the Z-SIM and carry out the function.

Although South Korean carriers had a headstart in some of the newer functions being put directly on the SIM, France, Italy and other west European countries already had some advanced functions on the SIM as did operators in Brazil and Mexico.

Nokia this year released a phone that has a slot for a second card that can make payments, including at vending machines. There are three main areas in which work is being done to increase the utility of the SIM card: making the SIM hold the phone’s digital media files and applications; allowing the card to store large amounts of contact information so that information could be moved easily from one phone to another and using the SIM to help carriers create the same look and feel of their network regardless of the brand of phone.

All three areas require more memory and adding memory raises the price of a SIM card, which costs between US$1.20 and US$4.80 ($1.60 and $6.50) each, depending on the memory, applications and security.

See also: Global – Mobile Data

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In December 2005, Mexican local exchange carrier Axtel signed agreements with Intel and the Federal Electricity Commission – Comisión Federal de Electricidad (CFE) – to develop WiMAX and Broadband over Power Lines (BPL), respectively. These technologies would complement and strengthen Axtel’s portfolio of services, by allowing it to provide broadband solutions in a multi-service approach. The company also said it was considering acquiring one or both of its rivals, Avantel or Alestra.

Formerly known as Teléfonìa Inalambrica Del Norte (Telinor), Axtel is Mexico’s second largest local fixed-line operator after Telmex. Based in Monterrey, Axtel provides a variety of local and long-distance voice services, Internet access, and data communications.

Axtel is approximately 58% Mexican owned. The remaining 42% is held by foreign investors, the major ones being: AIG-GE Capital American Infrastructure Fund (LAIF); AIG Latin American Equity Partners; Blackstone Group; American International Underwriters Overseas; and Soros Group.

Axtel announced, in November 2005, that it planned to hold an IPO with the aim of raising US$345 million on the Mexican and the US stock exchanges. It began trading publicly on the Mexican Stock Exchange in December 2005.

In 1996, Axtel received Mexico’s first competitive licence for both local and long-distance services. It entered the long-distance and international call markets in 1997. Then, in 1998, it won 50MHz of nationwide bandwidth in the 3.4GHz band, to provide fixed-wireless local service in nine regions of Mexico. It launched Fixed Wireless Access (FWA) local telephony in Monterrey in October 1999, in Guadalajara in February 2000, and in Mexico City three months later. It added León, Puebla, and Toluca in 2001. In 2004, it installed fixed wireless networks and launched services in six additional cities: Querétaro, San Luis Potosí, Tijuana, Ciudad Juárez, Aguascalientes, and Saltillo. In January 2006, it announced plans to expand its services to another five cities: Chihuahua and Torreón in the north, and Irapuato, Celaya, and Veracruz in central Mexico

Axtel’s 100% digital network is a mixture of access technologies, including FWA, point-to-point and point-to-multipoint radio links, and a fibre optic backbone. Axtel has one of the largest Wireless Local Loop (WLL) networks, offering residential and corporate solutions. It launched Internet access using wireless technology in 2000, and introduced a VPN offering in December 2003.

Axtel reported annual revenues of Mex$4.967 billion (US$468.8 million) for 2005, a 25% increase compared with the previous year. Local services accounted for Mex$3.567 billion, whilst long-distance revenues contributed Mex$451.9 million. The company closed 2005 with 605,900 lines in service, a 34% increase over 2004, but still far behind Telmex which boasts 18.1 million lines.

See also:
Mexico – Key Statistics, Telecom Market and Regulatory Overview.
Mexico – Fixed-Line Market and Infrastructure – Overview and Statistics;
Mexico – Convergence, Broadband and Internet market.

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I read with interest Macquarie’s research report on Telecom New Zealand, which consisted basically of that company accusing the critics of the current NZ telecoms situation of making misleading and incorrect statements.

For the rest, the report mainly points to different broadband speeds and prices between Australia and New Zealand.

In a debate like this it is inevitable for things to become confused and for the wrong interpretations to be made. As Macquarie states, Telecom has missed the opportunity to lead that debate and it has constantly found itself on the back foot.

The incumbents in other countries are in the same position. They fight rearguard battles rather than taking up a position of offence. For years I have argued that Telecom should become more proactive, but this hasn’t happened.

I feel it is a bit harsh for Macquarie to claim that any criticism made by those on the other side of the debate, or by the media, is false. I believe that Telstra is now losing the battle because it did not take an industry leadership role in the first place.

Furthermore I see, unlike Macquarie, the irrefutable factual key issues to be:
Low broadband penetration in New Zealand in comparison with its trading partners;
Low level of competition in New Zealand in relation to its trading partners.

I would like to see some factual information from Macquarie as to why these analyses are lies, incorrect or misleading.

The reason for the two key problems, unfortunately, is a mixture of issues and it is not easy to exactly pinpoint one single problem area. But the problematic issues will always involve the following:
Lack of a proper wholesale regime (which should allow competitors to build their own services – LLU). This would create more competition, more transparent end-user prices, and better customer services, including speeds;
The incumbent’s aim is to milk their old assets for as long as possible, and there is no competitive pressure to force it to be more responsive to market demand;
Lack of new technologies – in order to increase shareholders value, investments are kept at a minimum, or spread out over a long period (eg NGN);
Around the world it has been proved that it is not economically viable to replicate national infrastructure; therefore on-net competition needs to be established to tackle the natural monopoly (structural separation will eventually be unavoidable);
The continuing conflict of interest between shareholders value and the national interest will forever see the government involved in telecoms infrastructure;
Because of the complex mix of these elements it is very easy for either side of the debate to lift one or other factor out of whole and construct arguments to their advantage.

Comparisons with Australia alone are faulty, as Australia is also clearly lagging behind the rest of the world, especially in broadband speed. One needs to look at benchmark countries such as Korea, Japan, Netherlands, Scandinavian countries or Canada. When compared with this group Telecom’s speeds and prices are well below international benchmarks (see also OECD reports).

In general terms the Prime Minister was on the mark in her address in Parliament. What Macquarie has done is to turn this around and say that the situation is not as bad as she claims, if one compares it with the situation in Australia.

But New Zealand should be comparing itself with the best, not the worst, performers.

It is very important for our decision-makers to develop policies on that higher strategic level and leave the nitty gritty to be sorted out by the players – or, failing that, by the regulator. Trying to micro-regulate individual prices or speeds would be futile. High level political decisions are required on:
A true wholesale regime, based on, for example, LLU;
Operational separation between Telecom Retail and Telecom wholesale/network.

Macquarie, of course, has a vested interest in high share prices and the most secure way to get high share prices is to try and leave monopolistic structures in place for as long as possible. Telecommunications, however, is more than simply shareholders value, and it is the national interest issues that are now becoming important. Macquarie reveals its own position when it indicates that it is confident that the current low level regulations will stay in place and will therefore lead to a positive share reaction. Macquarie complains about biased commentators, but I think it should consider its own position in this respect.

And, like the New Zealand PM, I also very much welcome Telecom’s ongoing price reductions and speeds increases. But why does it have to be such a difficult road? Why is this happening three to five years later than in other countries?

It is obvious that Telecom has been waiting for more decisive government action and it is good to see that the government is now rising to this challenge.

Paul Budde

See also:
New Zealand – Broadband Market – Overview and Providers;
New Zealand – Broadband Market – Wireless Broadband;
New Zealand – Broadband Market – Analysis.

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Under recent changes to the Trade Practices Act 1974, flowing on from the new T3 legislation, the ACCC was provided with the broad power to make written rules that set out the procedures to apply in connection with matters arising under Part XIC of the Act. These rules can modify or displace some procedures currently set out in the Act.

For example, the ACCC may make procedural rules to:
Allow minor modifications to undertakings or exemption applications currently under consideration by the ACCC without the need to restart full public consultation processes
Allow it to specify the form and content of applications, undertakings, variations and other documents given to the ACCC under Part XIC
Allow it to specify modifications to the current procedures for dealing with confidential information, and
Allow it to specify a time limit by which parties must respond to requests from the ACCC for further information.

See also: Australia – Regulations – Developments in 2005-2006

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BinFone Telecom, an American wholesale VoIP provider, has introduced a new service called ‘MorningMonkeys.com’. The service, using a Web-based system, provides automated telephone wake-up and reminder calls. When clients answer their phone, they are woken up, or reminded of appointments, by the sound of noisy monkeys.

MorningMonkeys.com is offering a two-week free trial. Several plans and packages are available for 5, 10 or 30 calls per months. Clients register online and select reminder call times online. www.morningmonkeys.com

See also: Global – Convergence and Digital Media

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In early 2006 ABC TV and the Australian Film Commission launched an initiative for young documentary makers. Under the jtv docs initiative, a $300,000 fund will be created to finance several one-hour or half-hour documentaries in 2006.

jtv docs will be part of the ABC’s planned cross platform jtv brand, due for roll out mid 2006. jtv is a massive expansion of the triple j brand. For the first time, content directed at ABC’s younger audience will be broadcast across multiple platforms, including ABC TV, ABC 2, ABC Online and ABC Broadband,
incorporating iPod downloads and mobile phone SMS technology.

The projects need to be innovative in terms of their style and focus on subjects which young Australians will relate to.

More info: www.abc.net.au/jtv or www.afc.gov.au/jtvdocs
See also: Convergence and Digital Media

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Mobile prices in New Zealand remain very high according to a recent report by the Ministry of Economic Development. The report found that in general, New Zealand’s relative cellular service pricing performance ranked in the bottom half of the OECD for pricing. For cellular usage greater than about 30 call minutes per week, New Zealand’s relative performance ranking was amongst the poorest in the OECD. The per annum spend for medium users was NZ$1086 per month, which was 172% of the OECD average.

See also:
New Zealand – Mobile Communications – Statistical Overview and Major Operators;
New Zealand – Mobile Communications – Market Overview & Analyses;
New Zealand – Mobile Communications – Spectrum.

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The Indonesian government has awarded 3G licences to three operators. The operators are:
PT Indonesian Satellite (Indosat);
PT Excelcomindo Pratama (Excelcom);
PT Telekomunikasi Selular (Telkomsel).

In announcing the results of the recent tender, the Ministry of Communications and Information Technology (MICT) said that the minimum bid was set at 100 billion rupiah.

The bids lodged by the successful operators were: Indosat 160 billion rupiah, Telkomsel 218 billion rupiah; Excelcom 188 billion rupiah. Five companies had bid, the unsuccessful bidders being PT Telekomunikasi Indonesia (Telkom) and PT Bakrie Telecom.

The licences are valid for ten years.

Indonesia has already granted two 3G licences. PT Cyber Access communications, 60% owned by Hutchinson Telecommunications International Ltd, was awarded its licence in 2003. PT Natrindo Telepon Seluler, 51% owned by Malaysia’s Maxis Communications Bhd, was awarded a licence in 2004.

Neither of these two earlier licensees has commenced offering their 3G services and network infrastructure has yet to be put in place.

See also:
Indonesia – Mobile Communications – Market Overview;
Indonesia.

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