Archive for February, 2014

Government commits to all premises having access to 30Mb/s broadband by 2020 in Cyprus

Friday, February 28th, 2014

Cyprus’s telecoms market continues to be dominated by the government-owned incumbent. Nevertheless, improved regulatory conditions, particularly in relation to network interconnection and access, has given competing operators the confidence to invest in network infrastructure, unbundle local loops and launch competing services.

The broadband market remains undeveloped by European standards. DSL is the most popular access platform, with cable broadband restricted to a single operator with a network concentrated in a few key towns. Ongoing investment in DOCSIS3.0 technology may encourage churn from DSL networks in the cable footprint areas, given the relatively slow speed of current DSL options. Alternative DSL operators have taken advantage of regulated wholesale network access, resulting in a steady fall in the incumbent’s broadband market share. Growing broadband usage, supported by government policy, is shaping Cyprus’s emerging internet society.

The Cypriot mobile market is served by two mobile network operators (Cytamobile-Vodafone and MTN Cyprus), which have both launched 3G and HSPA services. A third operator, PrimeTel Mobile, launched operations as an MVNO in mid-2011, and in early 2014 was awarded a multi-spectrum licence. Thus far the operator has only a small market share, but it is expected to invest as an MNO in its own right and place greater competitive pressure on other players. Given the saturated voice market, mobile operators have focussed on lifting ARPU by encouraging prepaid subscribers to migrate to postpaid plans and to take up mobile broadband services and content.

A new BuddeComm report introduces the key aspects of Cyprus’s fixed-line telecoms market, outlining the regulatory environment and major players, and providing relevant operational data and financial statistics for operators and the market as a whole. Cyprus is a divided country, with most of the information in this report concerned with the Greek Cypriot area. The report also provides an overview of the mobile market, covering services offered, regulatory and market developments and a variety of key statistics, as also the broadband and broadcasting sectors, detailing industry developments, key statistics and scenario-based fixed broadband market forecasts to 2020.

For detailed information, table of contents and pricing see:

Cyprus – Telecoms, IP Networks, Digital Media and Forecasts


We invite your comments: Comments Off on Government commits to all premises having access to 30Mb/s broadband by 2020 in Cyprus

Whatsapp and Permission Based Marketing

Thursday, February 27th, 2014

We started the discussion surrounding Permission Based Marketing in the late 1990s, and are reviving it again based on the acquisition of Whatsapp by Facebook for the incredible amount of US$19 billion, in early 2014.

Permission based marketing never really got off the ground as companies such as Google, Facebook and others were able to simply bypass that concept and used the private data of their users to build their own advertising businesses and largely ignored any permission needed from the customers. They simply overcame this by the ‘I agree’ button.

However, so far nobody has been able to crack the ‘mobile advertising nut’ it is very clear that customers will not tolerate the level of advertising that is thrown at them on the Internet websites.

A new model will have to be developed and that’s why we revived this report. Whatsapp delivers daily over 18 billion messages and this might be a key for the developments of a new concept in mobile advertising, a concept where users will be charged, rather than the vendors or their advertising middlemen.

BuddeComm has been promoting the concept of permission-based marketing as the single most important business tool for the Digital Media, since the late 1990s. The principles behind the concept remain as valid as ever. Interactive Digital Media will bring one-to-marketing opportunities based on communications over broadband networks. It is important to realise that the users are at the centre of this concept; they are in control of the messages they want and don’t want to receive.

Our first expectation was that by 2015; 65% of all New Media revenues would be based on permission based marketing. This was clearly wrong, not in its percentage but in its timeframe, perhaps it will be 2020? This time however, it will be driven by the new mobile broadband developments which require new business models that are desperately needed Internet media companies such as Facebook, Google, Yahoo, eBay, Micosoft, Apple and so on in order to break into the mobile market.

Paul Budde

For related information, see separate report: BuddeComm Intelligence Report – WhatsApp and Permission Based Marketing

We invite your comments: Comments Off on Whatsapp and Permission Based Marketing

Market consolidation leaning towards a triopoly of dominant MNOs in Germany

Thursday, February 27th, 2014

Germany has Europe’s largest telecom market, supported by an affluent population of about 82 million. Both the fixed network and broadband markets are dominated by Telekom Deutschland (TD), though a number of significant players including freenet/Debitel, Vodafone, Telefónica and E-Plus have gained market share.

In the broadband market, the dominant DSL platform is being reinvigorated by TD’s focus on vectoring technology, though it continues to invest in fibre. This strategy is aimed at competing with cablcos while also reaching the government’s broadband targets for 2020. The greatly consolidated cable sector has invested in extensive network upgrades, offering widespread 200Mb/s services and the expectation of commercial services offering up to 400Mb/s. Faster broadband services are creating demand for new bundled offers while intense competition has seen prices fall dramatically.

The mature mobile market generates the largest proportion of revenue in the sector. In common with most markets the main area of growth is in the fast-developing 4G sector. The market is dominated by TD and Vodafone, though the acquisition of E-Plus by Telefónica, subject to regulatory clearance, would create a triopoly of MNOs with a roughly equal share of subscribers between them. An increasing number of resellers has fuelled competition and placed pressure on tariffs, resulting in lower ARPU. Regulatory pressure on voice roaming as well as termination rates will encourage operators to further step-up their development of data applications to improve profits.

The German mobile data market has enormous potential for growth following massive investments by operators to upgrade networks supporting mobile data services. The regulator anticipated future growth in coming years by auctioning spectrum in the 1.8GHz and 2.6GHz bands, as well as refarming spectrum below 1GHz for use by mobile broadband. Operators have fast-tracked the development of data-rich applications to improve profit margins as voice ARPU continues to fall in response to competition from resellers and regulatory measures on roaming and termination rates.

This report introduces the key aspects of the German telecom market, providing comprehensive data on fixed network infrastructure as well as on key regulatory developments including the status of interconnection, local loop unbundling, number portability, and carrier preselection. It profiles the major operators, and details the development of Next Generation Networks and the battle between the EC, the government and the incumbent on NGN access. The report also provides statistics and analyses on the mobile market, including an overview of the main operators together with 3G subscriber and mobile ARPU forecasts to 2015. It assesses the development of mobile data services and technologies including HSPA and LTE, as well as operator strategies to exploit data revenue in coming years. The fixed-line and wireless broadband markets are assessed, noting the various platforms including vectoring DSL, FttP, powerline broadband, cable wireless broadband, WiFi and internet via satellite. It notes the economic pressures which are encouraging major players to deploy vectoring technologies as an interim measure.

For detailed information, table of contents and pricing see:

Germany – Telecoms, IP Networks, Digital Media and Forecasts

We invite your comments: Comments Off on Market consolidation leaning towards a triopoly of dominant MNOs in Germany

Improving customer analytics with subscriber data management

Wednesday, February 26th, 2014

The competitive telecoms environment is forcing telcos to take a closer look at their subscribers and try to reduce churn while also growing the customer base. Bearing in mind that the cost of acquiring customers is expensive; reducing churn rates can offer significant savings to telcos. In addition lowering roaming charges also encourages goodwill at both a regulatory and consumer level and lessens the chance of bill-shock. If telcos start to concentrate on overall customer experience; it will become easier to differentiate from the competition.

One way to develop effective customer strategies is to utilise the existing information on customers and also analyse the Big Data associated with telco services. Organisations are beginning to recognise the importance of storing and processing data efficiently and also mining this data for commercial benefit.

In 2014 there is a growing interest in Subscriber Data Management (SDM) software and services driven mostly by mobile operators and Big Data developments. SDM are used to consolidate and manage cross-domain subscriber data – such as location, network authentication, access preferences, services, identities and presence – as a single logical profile.

Kylie Wansink

Senior Analyst – Global and Middle Eastern Markets

For related information, see separate reports:

We invite your comments: Comments Off on Improving customer analytics with subscriber data management

Tanzania distributing funds to deliver telecoms to rural areas

Wednesday, February 26th, 2014

In mid-2009 the World Bank agreed to fund improvements in rural and government telecoms infrastructure in Tanzania, contributing $100 million of a total budget of $151 million which also covers two neighbouring countries, Malawi and Mozambique.

The Tanzanian government in late 2013 set up a Universal Communications Services Access Fund (UCSAF) in accordance with the 2006 Universal Communication Access Act. It aims to enhance telecoms services, particularly in rural areas. The National Telecommunication Policy, which is guiding the program, aims to provide every village with telecom services.

To this end, in January 2014, some TZS17.5 billion ($10.8 million) was allocated as an initial measure to improve rural telecom infrastructure, with funds coming from both the government and World Bank loans. The government tendered for contracts to roll out or upgrade networks, with winning bidders being Vodacom, Zantel, Airltel, Tigo and TTCL. Some 869 villages in 152 wards and 29 districts will benefit from the program. In February 2014 TTCL secured a contract worth TZS9.8 billion ($6.1 million) to build networks covering 33 wards.

In conjunction with this development, the mobile network operators (MNOs) volunteered to build towers in remote areas in an additional to 48 wards at their own expense. Each base station is expected to cost about US$200,000 to install. Tigo and Airtel will be concerned with four wards each, while Vodacom will build new infrastructure in 40 wards.

For more details, see Tanzania – Telecoms, Mobile, Broadband and Forecasts

We invite your comments: 1 Comment on Tanzania distributing funds to deliver telecoms to rural areas