BuddeBlog

Before, during and after his inaugural speech (January 2009) President Obama spoke of the national benefits of broadband, and the changes which have been set in motion in the US telecoms market that were unheard of even a year ago. During the previous administration the incumbent telcos and cable companies had been given more freedom. As a consequence, innovation and competition dwindled and the US was no longer a leader in telecoms. With the digital economy just around the corner the new administration clearly sees telecoms as a spearhead in its social and economic policies.

However, since that time, the White House has lost some of its initial leadership. Rather than continuing to directly lead the changes as they did before and after the Inauguration, they handed that leadership back to partisan politicians. Congress and Senate are still heavily dominated by the lobbying of the vested interests and a lot of them are more interested in their own political power, which is severely damaging the national interest of America. There is no way that under those out-of-date political arrangements these politicians can lead the country in a democratic way.

The President obviously is very much aware of this, hence his State of the Union address. The current political environment is not particularly conducive to the introduction of the serious changes that the White House are proposing, the President will have to regain leadership and has to come back with innovative policies along the lines that myself and others have been discussing with his advisors in the White House.

These policies need to be developed on a step-by-step basis, rather than just concentrating on the support of Congress – perhaps more time needs to be spent to win the support of the people. The President had and largely still has the people behind him, and he should show leadership to these people, and together with them make these steps. It will be hard for the politicians to continuously keep blocking policies that are clearly supported by the people of America.

Rather than trying to reform Washington, perhaps the White House should, in parallel, work with the people and businesses to get new innovative policies implemented. Leadership is contagious, in Australia the Liberal Opposition behaves exactly like the Republicans in the USA – they vote everything down. However the Government is supported by everybody else, they have even been able to win the support of the incumbent telco, and that will ensure that the NBN will be built in this country, despite the politics. The USA cannot afford to not make changes similar to those that are taking place in other developed telecoms markets.

Paul Budde

We have just written a new report on the current telecommunications situation in the USA:

• USA – Analysis of broadband policy developments in early 2010

Tweet This Post

Brazil’s ambitious broadband plans

With a promising economic outlook and rising prosperity, demand for broadband in Brazil is expected to soar. Telebrasil, the association of telecom operators, estimates that the country will have to invest R$215 billion (US$126 million) over the eight years from 2010, if it wishes to create a universal broadband network capable of meeting the escalating demand.

As a result, Brazil’s government has been drawing up plans to spread broadband across the vast country in one of the world’s largest infrastructure projects. There is a growing awareness that duplication is wasteful, and that it makes more sense to take advantage of existing networks.

Broadband operators have been struggling to keep up with the growing demand, which has lead to problems of system overload. In some cases, due to service faults, users have been unable to access the Internet for days. In 2008-2009, Telesp attracted a flood of user complaints over interruptions in Sao Paulo, so much so that Anatel ended up ordering the operator to suspend sales of its Speedy broadband packages for almost two months from June until August 2009.

Following this incident, the Brazilian government began to consider using the infrastructure of domestic oil firm Petrobras and of power companies Eletrobras and Furnas Centrais Eletricas (Furnas) to operate a broadband network linking Brasilia, Sao Paulo, Rio de Janeiro, and Belo Horizonte. In August 2009, the planning ministry was contemplating the reactivation of state-run telco Telebras, sold to private investors in the late 1990s. The former incumbent would be entrusted with the management of a government-controlled broadband network.

Talks of a state-run network drove some of Brazil’s highly competitive telecom operators to band together in order to reduce the astronomical costs of setting up infrastructure. In October 2009, mobile companies Vivo and Claro and fixed line operator Embratel were rolling out a shared 4,500km fibre-optic network, which would be operational from 2010 and would cover the southern states of Parana, Rio Grande do Sul, and Santa Catarina. Each operator was deploying a 1,500km section, for which it would also ensure administration and maintenance.

In January 2010, the Brazilian government won the legal right to use an existing fibre-optic network formerly administered by electricity firm Eletronet (a subsidiary of Eletrobras). Eletronet entered bankruptcy proceedings in 2005 and became involved in a judicial battle with the government over the use of its assets. The Eletronet network is about 17,000km long. The government’s idea is to create an intranet network connecting public databases at federal, state, and municipal level, serve schools, city halls, police, public banks, and other bodies.

In November 2009, the Economic Commission for Latin America and the Caribbean (ECLAC) outlined an ambitious project to reduce the digital gap in the region by making broadband a public good guaranteed by each state. The Brazilian government, however, has stressed that it does not want to take the place of private enterprise, but it does want broadband to be made available throughout Brazil. For this purpose, it will step in where needed, while at the same time, it invites private companies to observe the country’s huge potential broadband market and take advantage of this promising investment opportunity.

See also: Brazil – Internet and Broadband Market – Overview, Statistics & Forecasts

Tweet This Post

The government of Laos and a Chinese business group have signed a Memorandum of Understanding

(MoU) to invest in a satellite business joint venture in Laos. The proposed joint venture, which aims to launch the satellite into orbit by 2013, is between the Lao National Authority for Science and Technology (NAST) and the China Asia Pacific Mobile Communications Company Limited (China- APMT). The project, which will see Laos’ first ever satellite launched, is expected to cost about US$250 million. The construction of the satellite will be carried out by China-APMT and funded by loans from the Chinese government.

As part of the agreement, a ground control station will be built in the Lao capital Vientiane, while tracking and transmission stations will be constructed in some northern, central, and southern provinces to ensure that satellite signals reach every part of the country as well as linking it with the rest of the world.

Also see:

Laos – Telecoms Market Overview, Statistics & Forecasts

Tweet This Post

Thailand’s planned auction of 3G mobile service licences will be delayed indefinitely until four new nominees to the National Telecommunications Commission (NTC) have royal endorsement. The Bureau of the Royal Household has returned the names of the nominees to the Cabinet Secretariat for further review, causing the delay. One nominee, Col. Natee Sukolrat, is currently under investigation by the National Anti-Corruption Commission. The seven-member NTC board had hoped to auction the 3G licences in the first quarter of 2010, although the industry had already been expecting an even longer delay. Thailand will be among the last countries in Southeast Asia to fully adopt 3G technology.

Also see:

Thailand – Mobile Communications – Market Overview;

Thailand – Mobile Communications – Major Operators;

Thailand – Key Statistics, Telecommunications Market and Regulatory Overview.

Tweet This Post

Thailand’s leading mobile phone operator, Advanced Info Service plans to invest US$335 million to expand its network in 2010. With Thailand’s telecoms industry expected to grow by 3-5% this year, roughly in line with growth in the Thai economy, total mobile phone subscriptions are forecast to increase by around four million. AIS is targetting 1.5 million net new subscribers, similar to its 2009 increase. At the end of 2009, AIS had 28.5 million subscribers.

In the meantime, AIS has revised its 3G investment plans after repeated delays in the timetable for the proposed auction for 3G licences; however, it said it would join with state-owned TOT to launch a 3G service in certain parts of the country in February. TOT is presently the only operator with a licence to operate a 3G service. Private operators are waiting for the industry regulator to issue new licences.

Also see:

Thailand – Mobile Communications – Market Overview;

Thailand – Mobile Communications – Major Operators;

Thailand – Key Statistics, Telecommunications Market and Regulatory Overview.

Tweet This Post

Infonetics Research has published two unified communication reports, one a worldwide and regional market share and forecast report, the other a survey of North American companies and their plans for deploying unified communication equipment and services, as well as their ratings of leading unified communication vendors.

The first report, ‘Unified Communication and IP Contact Center Market Share, Size, and Forecasts’, shows that worldwide revenue from unified messaging platforms and communicator software clients is expected to drop by 4% in 2009, a relatively mild decrease compared to the decrease in overall enterprise telephony spending.

The related ‘Unified Communication Deployment Strategies and Vendor Ratings: North American Enterprise Survey’ focuses on end-user perceptions and plans, and names Microsoft, Cisco and AT&T the top communication providers.

Market share report highlights

• Shipments of communicator clients grew almost 1,000% between the first half of 2008 (1H08) and the first half of 2009 (1H09), reaching 5.4 million, with revenue nearly tripling, mainly due to aggressive bundling of communicator clients with core telephony system sales
• In 1H09, Avaya shot to the top vendor spot for communicator licenses after running an aggressive One X upgrade promotion
• The IP contact center and unified communication markets are forecast to return to strong double-digit annual growth once the world’s economies recover, with sales surpassing $1 billion by 2012 and 2013, respectively

Survey highlights

• Microsoft and Cisco are the most widely deployed unified communication suppliers among survey respondents, enjoying high buyer awareness and receiving high marks from buyers on the most important buying criteria
• AT&T and Cisco lead the list of VoIP equipment and services providers
• Cost, complexity, and network capabilities are the leading barriers to deploying unified communication
• The focus of unified communication is transitioning to mobility, multimedia, and collaboration, with respondents looking to integrate cell phones, IM, video, and conferencing

See also:  Global – Messaging Services – SMS, IM, UC, MMS & Email

Tweet This Post

A Siemens research project has recently broken the record for wirelessly transmitting data, by making use of white LEDs (light-emitting diodes) instead of traditional radio waves. Siemens researchers have been able to transmit data at 500Mbps, beating the previous record of 200Mbps.

The researchers used Ostar LEDs, one of the brightest LEDs on the market. The lights are modulated at a frequency that allows for high-speed data transfers. On the other end is a photodetector that receives the light signals and converts them into electrical pulses.

This method of transmitting data is referred to as VLC (Visible Light Communication). It could be used to help boost the performance of wireless networks. For example, if you live in an apartment building where WiFi networks interfere with each other, VLC could be an alternative since visible light isn’t currently used to carry data, so there would be significantly less interference.

Also VLC data transfer is more secure than radio signals, since the receiving end must have a photodetector and a simple curtain is enough to stop potential eavesdroppers.

Other applications suggested are in transportation, where LED stoplights can transmit information to trains and cars. Siemens confirmed that they combined five LEDs to transfer data over “longer distances” at rates up to 100Mbit/s, but did not mention how long these distances were.

See also:

Technology – Wireless – Broadband 1 – RFID, Near Field and 802-15 ZigBee

Technology – Wireless – Broadband 2 – Bluetooth

Technology – Wireless – Broadband 3 – Ultra-Wideband-&-WirelessHD-60GHz

Technology – Wireless – Broadband 4 – 802-11 & HiperLAN

Technology – Wireless – Broadband 5 – 802-11 QoS, MIMO & Propagation

Technology – Wireless – Broadband 6 – 802-11 Applications & VoWLAN

Technology – Wireless – Broadband 7 – Mesh & UHF White Space Rural Networks

Technology – Wireless – Broadband 8 – 802-16 WiMAX PHY

Technology – Wireless – Broadband 9 – 802-16 WiMAX MAC

Tweet This Post

VSAT connects remote PNG islands

The 500 people of Nihon Island outside Lorengau in Manus Province appear to be happy with the introduction of telephone and EFTPOS since the introduction in January 2010. The Very Small Aperture Terminal (VSAT) system installed by Telikom PNG Ltd in late 2009. Before the connection the resident of the islands had to travel by boat to Lorengau to make phone calls. The cost of fuel alone for the trip was more than $300 (PNK750).

The service has allowed telephone calls and access to banking with EFTPOS. Nihon was the first island village in PNG to receive these services. Other local islands close to Manus Island such as Kali, Bipi, Salian, Andricon, Lessau, Harangan, Korojih, Jowan One and Two, Likum, Nydah, Sori, Bundrahei and Buke are also benefitting from the new telecoms services. The facilities are also being used by aid workers, public servants, schools and health centres

Telikom PNG’s VSAT allows six lines only for telephones and internet services but to power up the EFTPOS an additional six lines were needed. The EFTPOS uses software by Sky Edge enabling broadband IP access directly from the satellites.

For more information on telecoms on Papua New Guinea, see separate report: Papua New Guinea – Telecoms Market Overview & Statistics.

Tweet This Post

A survey by the OECD published in August 2009 found that Finland, the Netherlands and Sweden had the lowest mobile service packages amongst OECD countries and Canada, Spain and the United States had the highest (based on data from August 2008).

Table 1 – Comparison of charges for mobile services baskets – selected OECD countries – 2008

(Source: BuddeComm based on OECD data, 2008)

Notes: Based on OECD data, August 2008. Also based on medium services baskets of 780 voice calls, 600 short texts (SMS), and eight multimedia (MMS) messages per month.

For further information, see separate report: Global – Mobile – Revenue, ARPU, Call Charges.

Tweet This Post

Ireland’s telecom market has suffered from poor broadband take-up, underinvestment and mismanagement among some of the key operators. Falling GDP since the beginning of 2008 has been compounded by the effects of the financial crisis and recession. This has hit the incumbent operator eircom particularly hard, with its parent company facing bankruptcy and eircom itself being sold to STT in January 2010. These factors will continue to have dire implications for the government’s efforts to improve Ireland’s telecom infrastructure into 2010.

Overall telecom market revenue fell by about 12% in 2009, year-on-year, dragged down by the poorly performing fixed-line, mobile and broadcasting sectors, the effects of the recession and also the lower consumer cost derived from a plethora of bundled products. There will be little relief for operators in 2010 or 2011 as the continuing effects of the economic crisis dampen consumer spend.

Nevertheless, the sector offers some hope of resilience in coming years, aided by government investment as well as the impending auction of 1800MHz and 900MHz spectrum aimed at stimulating the mobile broadband sector. The competitive nature of Ireland’s telecom market – with some 450 licensed operators – also bodes well for consumer pricing.

Fixed-line penetration has fallen steadily in recent years while mobile penetration has increased to the degree that by early 2010 about a quarter of households had a mobile but no fixed-line telephone service.

The number of broadband subscribers continues to climb steadily, but consumers are hampered by poor delivery and some of the slowest access speeds in Europe. This has also restricted consumer uptake of high-end services such as IPTV and VoD. Few advances are to be expected during the next few years, as little commercial investment has been allocated to fibre networks, leaving the principal fibre infrastructure to lie in backhaul.

Ireland – key telecom parameters – 2008, 2010

(Source: BuddeComm)

Key Highlights

• The mobile sector share in overall revenue has fallen steadily in recent years, reaching less than 45% by early 2010. This share is likely to drop further in coming years in response to regulated measures affecting roaming and interconnection tariffs, as well as competition among the triopoly of providers and the small number of MVNOs.
• LLU for broadband access has grown slowly compared to other markets. Shared access has generally been favoured over full LLU. This trend may reverse during 2010 following the regulator’s decision to cut shared access wholesale line charges to less than a Euro (among the cheapest in Europe).
• In common with EC policies, the regulator hoped to rejuvenate the mobile data sector by aiming to liberalise the current 900MHz and 1800MHz bands, making them available for 3G or compatible wireless services. Two of the MNOs’ licences expire in 2011 while the third expires in 2015. New licences to be awarded on a liberalised basis will provide operators with greater flexibility in their use of spectrum.
• Mobile broadband subscribers using operators’ HSPA networks have been the largest contributor to overall broadband growth since the beginning of 2008. By early 2010 about 15% of all mobile subscribers were on HSPA networks. Although mobile broadband has earned a place in promoting broadband access, the pricing structure of mobile data services needs to be reduced in coming years to make them more attractive to consumers.

BuddeComm’s annual publication, Ireland – Telecoms, IP Networks, Digital Media and Forecasts, provides a comprehensive overview of the trends and developments in the telecommunications and digital media markets in Ireland.

For more information see: Ireland – Telecoms, IP Networks, Digital Media and Forecasts

Tweet This Post