Wideband telco subscribers to rise by nearly fourfold by 2014

EL SEGUNDO, USA: Global subscribers to wideband telco services such as Fiber To The Home (FTTH) and VDSL are expected to rise at more than triple the rate of ADSL during the next few years as carriers seek to boost their networks’ performance, according to the broadband market research firm iSuppli Corp.

Wideband telco services subscribers are forecasted to rise to 281 million in 2014, expanding at a Compound Annual Growth Rate (CAGR) of 30.9 percent from 73 million in 2009. In contrast, ADSL subscribers will grow at an 8.4 percent CAGR during the same period, reaching 458 million in 2014, up from 305 million in 2009.

The figure presents iSuppli’s forecast of global telco VDSL and FTTH versus ADSL subscribers.Source: iSuppli, USA.

The telco broadband market is undergoing a seismic shift in technology as technologies like ADSL begin to give way to wideband services like FTTH and VDSL. While ADSL will continue to dominate most telcos’ broadband installed bases for years to come, subscribership has begun to contract in many developed countries such as the United States, Japan, Korea, Canada and Germany.

Rising competition from other industries is compelling the telcos to turn to wideband technology.

Telcos around the world are facing stiff competition from competitive access suppliers, cable providers and wireless operators. This competitive pressure, which has resulted in stagnating revenues and subscribers eroding by as much as 10 percent per year, has caused telephone companies to rethink how they do business in the residential space.

Virtually all carriers, as well as competitive access suppliers, have chosen a strategy of deploying value-added services, such as IPTV, in combination with their core residential business of voice and data in order to stop subscriber erosion and to increase subscriber Average Revenue Per User (ARPU).

Among bandwidth-intensive applications, IPTV is one of the few that has proven to be successful with subscribers. However, telcos plan to offer other services to boost revenue during the next few years, including 3-D HDTV, cloud-based Digital Video Recording (DVR), distance learning, video telephony, home automation and remote home networking management.

ADSL can deliver a downstream rate of up to 24Mbit/Sec. depending on the distance. VDSL can deliver in excess of 100Mbit/Sec., though the rate falls off rapidly after a relatively short distance, measured in hundreds of meters, eventually matching ADSL rates. FTTH can support speeds up to 1Gbit/Sec. or faster over tens of kilometers.

Telcos’ shift toward wideband will generate significant new opportunities for OEMs and component suppliers. VDSL equipment factory revenue is expected to increase at a 32 percent CAGR from 2009 to 2014, while FTTP is expected to grow at a 21 percent CAGR.

However, OEMs and component suppliers face many key questions as they ponder their transition to wideband, including, which technology should investments be made in, when should those investments be made and which regions should they focus on.
Each of these service offerings demands increased bandwidth in the service provider’s access loops.

Telcos now have almost 340 million ADSL loops in service worldwide, most of which cannot support the increased bandwidth required in both downstream and upstream directions to support the potential value added services that telephone companies would like to offer.

The wideband access technology used by each carrier is unique and depends on many factors, such as the bandwidth required, current deployment of fiber in the access network, the availability of conduits or aerial facilities to run fiber in the neighborhood without the need for trench work, greenfield vs. brownfield, length of the carrier’s copper loops and the time to market.

The answer to the bandwidth requirement question varies significantly by region and by country. For the United States, the need will include the simultaneous transmission of multiple HDTV data streams to the home, requiring a very large amount of bandwidth. For some telephone companies in Asia and Europe, the need is to transmit two Standard Definition Television (SDTV) channels. In some cases this requirement can be met by the existing ADSL networks.

Telephone companies have also chosen a strategy to turn around their stagnating revenues and subscriber erosion in the residential segment—a strategy of transformation from being a voice and data service provider to a full-line multimedia service provider. For most telephone companies, this strategy demands that the telcos migrate their installed base of ADSL subscriber to the next-generation, very high-speed broadband access technologies of VDSL2 and FTTH.

Source: iSuppli, USA.

Interop successfully completes 4G interoperability test with ARRIS mobility application server

CTIA Enterprise & Applications 2010, FORT MYERS, USA: Interop Technologies, a provider of core solutions for messaging, device management, and connectivity gateways, has successfully completed testing of its 4G-ready Short Message Service Center (SMSC) 4 Series with the ARRIS Mobility Application Server (MAS).

ARRIS specializes in the design, engineering, and supply of technology supporting triple- and quad-play broadband services worldwide.

The successful outcome of the integration testing ensures that any mobile network operator running the ARRIS MAS and the Interop Technologies SMSC 4 Series can support IP-based messaging protocols as well as SS7-based, legacy messaging.

The ARRIS MAS provides full SIP-based Dual Mode Fixed Mobile Convergence (FMC) with support for seamless roaming and handover between circuit-switched and IP networks. Offloading voice, messaging, and data services to IP networks reduces operators’ costs and provides opportunities to offer competitive service packages.

Operators running the ARRIS MAS and the Interop Technologies SMSC 4 Series have the added assurance that all messages will be delivered. If, for any reason, mobile services are not available via the 4G/Wi-Fi network, message traffic can successfully fall back to the SS7 network.

“Integration testing has proven that the Interop Technologies SMSC 4 Series is a viable messaging solution for operators running our MAS. Together, the technologies will provide operators with a powerful network and message delivery system,” said Jay Bestermann, senior director of Product Development, ARRIS.

“Interop Technologies is looking forward to working with ARRIS on upcoming implementations. This successful integration test reinforces our commitment to provide clients with best-in-class solutions,” said Steve Zitnik, Senior Vice president of Technology and New Ventures, Interop Technologies.

Due to the complexities involved with implementing different technologies, integration testing is key for operators launching crucial revenue-generating services, such as messaging. By ensuring that existing and future messaging technologies work together, Interop can help operators reduce implementation costs and more quickly realize a return on their investments.

Asia-Pacific mobile payments to double in five years

MALAYSIA: Mobile payments (m-payments) in Asia-Pacific are expected to record transactions worth more than two-fold from 2009 revenues of $1.6 billion, in five years. In 2015, Frost & Sullivan estimates that m-payments could exceed billings of $3.6 billion, at a CAGR of 14.8 percent (2010-2015).

Frost & Sullivan industry analyst Shaker Amin attributes this growth to technology innovations and operators’ initiatives - particularly with NFC (Near Field Communication) - as well as rising consumer demand in both the developed and emerging markets.

New analysis from Frost & Sullivan, 2010 Asia-Pacific Mobile Payments Outlook - 18 Asia-Pac nations including Japan - finds that contactless payments via the NFC channel will increase in popularity to account for 23 percent of all m-payments in 2015, from only 12 percent last year.

The SMS method which accounted for nearly 82 percent of total transactions in 2009 will likely remain the dominant mobile payment channel till 2015, albeit dropping to about 67 percent by then.

Other payment channels such as WAP (Wireless Application Protocol) and DMB (Direct Mobile Billing) contributed small fractions to m-payments in 2009, with adoption levels not expected to rise through to 2015.

“Having one of the most advanced mobile cultures in the world, Japan and South Korea lead the region in the adoption of mobile payments,” Amin says.

He adds that the relatively less developed mobile markets such as China, India, Indonesia and the Philippines, where access to traditional banking services is highly skewed against the rural mass population, are showing rapid take-up of mobile banking services including person-to-person (P2P) transfers and remittances.

“Even in emerging markets such as Bangladesh, Pakistan and Sri Lanka - although limited to mostly SMS-based bill payments and micro credit transfers - m-payments services are increasingly becoming popular,” he continues.

Amin explains that these [emerging] markets also have good potential for mobile remittance services due to the large population of workers residing in other countries - Malaysia for example.

“International remittance sent out from the significant migrant worker population in Malaysia is a lucrative business. This is significant for Malaysian operators as this segment of the population also has high mobile penetration; more than 90 percent of all migrant groups have mobile devices,” he says.

He adds that operators’ initiatives in enabling remittance services - along with m-wallet and top-up/transfer services - have helped the mobile payments market in Malaysia, which, until recently, remained tepid and limited to bill payments.

According to Amin: “In sharp contrast, despite having one of the highest mobile penetrations in the region, Hong Kong, Singapore and Taiwan have shown little adoption of m-payments todate. Contactless payments in these markets are primarily driven by the use of smart cards as opposed to m-payments.” NFC will fast change this, Amin believes.

“NFC will find wide popularity, and quickly too, in developed markets where mobile penetration rates and the use of smart cards for contactless payments are already high, and rallying the supporting infrastructure is relatively easier (than in developing countries),” he says.

However, Amin says, “The mobile payment value chain is quite often embattled with issues of which vested party plays the bigger role - and hence, takes a bigger revenue share - and infrastructure interoperability issues between the banks’, application service providers’ and mobile operators’ platforms.

“Nevertheless, in all instances, the benefits are enormous - for mobile operators, it provides a means to add value to their commercial offerings with new services enabling new revenue streams; for banks, it helps in reducing cash handling and costs; for merchants, it helps to speed-up transaction time and generate more transactions,” he adds.

Dominant payment service providers have already begun providing contactless payment services via mobile phones, while banks are also showing keen interest to jump on the NFC bandwagon, with trials underway.

“Ultimately, strong government support is going to be instrumental in driving uptake and making NFC and a cashless society a reality,” Amin says. He cites Singapore’s IDA (Infocomm Development Authority) as one such advocate; in February 2009, Singapore became the first country to give the go-ahead for the creation of a central Trusted Third Party (TTP) designed to deliver a fully interoperable, multi-application national NFC ecosystem.

Later, in April 2009, IDA announced the availability of funding to help grow the installed base of contactless terminals in food courts, coffee shops, fast food outlets, convenience stores, vending machines, and so on. In the early stages of NFC adoption, IDA expects the annual revenue from NFC mobile payments and advertising to amount to US$43 million for Singapore.

SouthernLINC Wireless deploys Interop's hosted MMSC solution

FORT MYERS, USA: Interop Technologies, a provider of core wireless solutions, is furnishing multimedia messaging solutions to SouthernLINC Wireless, a Southern company.

Delivering messaging, device management and connectivity gateways, Interop develops and builds technology solutions for the wireless and telecommunications industries. SouthernLINC Wireless, a regional wireless carrier serving the southeastern US, recently deployed Interop Technologies’ hosted Multimedia Message Service Center (MMSC) solution to extend MMS capability, including inter-carrier connectivity for MMS traffic, to its subscribers for the first time.

“We are pleased to help SouthernLINC Wireless expand its offerings by providing our MMSC, as well as inter-carrier connectivity, to support the company’s iDEN technology,” said Fred Farrell, vice president sales, North America, for Interop Technologies. “Our solutions will help SouthernLINC Wireless further increase its competitive edge and capture available MMS revenue.”

The world’s most scalable MMSC, the Interop Technologies solution supports huge volume, enabling SouthernLINC Wireless to accommodate fast, dramatic growth for its MMS business. The new SouthernLINC Wireless service, Unlimited Picture Messaging , gives customers the ability to exchange multimedia files with wireless users on most other networks using their phones.

SouthernLINC Wireless selected Interop’s technology to support its MMS offerings after conducting a successful technology trial of the product. The Interop MMSC supports all 3GPP/3GPP2 audio-video formats and MMS-capable handsets in CDMA, GSM, iDEN and mixed technology environments.

“With Interop’s technology, SouthernLINC Wireless customers can now experience the latest multimedia messaging capabilities on their phones through our Unlimited Picture Messaging service,” said Rodney Johnson, vice president of sales and distribution for SouthernLINC Wireless. “SouthernLINC Wireless built its reputation on bundling multiple communications options into one device, and picture messaging is a welcomed addition to the company’s value-added service offerings.”

OnMobile acquires Dilithium Networks’ leading 3G video technology

BANGALORE, INDIA: OnMobile Global Ltd, India's largest telecom value-added services (VAS) player, today acquired the leading 3G video technology and mobile solutions developed over eight years by Silicon Valley-based Dilithium Networks Inc.

Dilithium pioneered mobile video, authored the global standard for 3G video telephony, and is the largest customer validated 3G video solution for mobile operators globally.

This acquisition enables OnMobile to deploy Dilithium’s leadership technology in the rapidly expanding mobile video solutions space, piggybacking on OnMobile’s 2G and 2.5G VAS platforms embedded into the world’s leading telecom operators, and hence accelerating the launch of 3G VAS services.

The acquisition also provides OnMobile with Dilithium’s extensive patent portfolio - over 175 patents in the world’s most advanced video technologies. Dilithium’s technology enables the delivery of novel 3G value-added services by offering superior quality and scale to the creation, adaptation and distribution of all types of multimedia assets.

Arvind Rao, co-founder, CEO and MD, OnMobile, said: “Over the past 10 years, OnMobile has pioneered and built a global leadership position in 2G and 2.5G Value Added Services. For our leading customers we have delivered an unmatched 90+ percent CAGR in OnMobile-powered and managed VAS revenues over the past six to eight years of VAS partnerships. Now with Dilithium’s 3G-patented technologies we will continue this momentum with a wide range of rich 3G video mobile VAS services that are carrier-grade, field-tested, proven, competitively superior and spectrum cost efficient.

“These include video calls, video RBT, multi-screen video streaming on demand, IVVR,
video optimization, etc. We will back this with our time tested Managed Services delivery model and innovative financial pricing models, delivering yet another home run for our telecom operator customers.”

This acquisition – OnMobile’s third in four years – will reinforce OnMobile’s growing dominance in the value-added services industry globally. Dilithium’s extensive customer base spanned 120 service providers and operators in more than 60 countries, and comprised over 1.5 billion subscribers.

Dilithium’s CTO and co-founder, Marwan Jabri said: “We are very pleased and excited in being part of OnMobile, the leader in mobile value added services. The Dilithium technologies and know-how will spark a new era where operators in partnership with OnMobile can offer novel and cutting edge revenue-generating video services powered by the Dilithium video technologies. The tested and proven technology is validated by leading global customers like China Mobile, China Unicom, Vodafone, Yahoo, BSNL, France Telecom, Etisalat, Zain, HTC and Qualcomm.”

Dr. Jabri will head OnMobile’s new Video Business Unit, reporting into Sanjay Uppal, president and COO.

As operators are increasingly turning to managed VAS to drive efficiencies and improve the mobile user experience, - the combination of OnMobile’s VAS experience and track record via the Managed Service business model and Dilithium’s market-leading technology will rapidly expand the reach of 3G multimedia services to consumers worldwide.

Exponential growth rates in mobile payments market

PADERBORN, GERMANY: The communications industry is changing rapidly - the worldwide mobile payments market, for example, has experienced sustainable growth within the last five years.

Today's mobile handsets, being equipped to be used for a variety of payment-related transactions out of the box, are one reason for the growth in the mobile payment sector.

Orga Systems' mobile payments solutions are enabling true convergent services in the area of prepaid airtime distribution and mobile money, offering the option to sell "bundled" products in the area of voice, data and financial transactions and enabling reliable and speedy customer communication. Being well established in most advanced mobile markets, the mobile payments segment is now expanding into emerging markets as well.

Worldwide mobile purchasing
Orga Systems' real-time product portfolio includes products for mobile recharge and voucher management applications, innovative payment options as well as customer self-care applications.

Considering that the worldwide value of purchase via mobile phones is estimated to grow from $68.7 billion in 2009 to $633.4 billion in 2014, the importance of mobile payment options cannot be overestimated. When the number of subscribers purchasing goods and services via their mobile is assessed to increase from 81.3 million to 490 million - this is a 600 percent increase - importance is further underlined.

Orga Systems' solutions offer superior operational benefits to launch, monitor and control dedicated payment strategies. In addition, they provide comprehensive functionality for all aspects of sales and channel management in real time, making Orga Systems the first choice for MNOs introducing platforms and applications for mobile payments.

Wynncom launches elegant slim series: Y90 and Y99 phones

NEW DELHI, INDIA: Wynncom mobiles have added two new slim & sleek models to their portfolio; Y90 and Y99. “Style has a new name” is the Wynncom mantra this time with the launch of these models.

The Y99 and Y90 are perfect fashion accessories for the young and stylish generation. Its svelte body and elegant casing can slip into a suit pocket, clutch bag or just about anything, with ease.

Equipped with features like big speakers and long lasting battery life, it is evident that these models are high on the entertainment value. The phones have FM radio recording feature that helps one to keep track of favorite radio programs missed, by simply scheduling a record for the program.

Arvind R Vohra, co-founder and MD, Wynn Telecom said: “These models were developed keeping the trendy, young and enthusiastic generation in mind, for whom mobile phone is a fashion statement. We have tried to include all the necessary features at an affordable rate so as to eliminate the second thought of purchase. As value for money has always been our prime aim, we have given the best at a reasonable pricing.”

These models primarily target the consumers which prefer to have an economical phone, long lasting battery backup along with full multimedia features.

There is a lot more in store for the customers with regard to these phones.

Y90: A very attractive feature of this handset is the “motion sensor” which helps to change wall papers and songs just by shaking. The phone also has Schedule SMS facility, Indian calendar and Background noise changer, Inbuilt torch, Answering machine, FM Alarm, Power Save Setting for long time battery backup.

Y99: This phone comes with a preinstalled mobile application developed by160by2.com , one of India’s largest free SMS service providers. This unique application enables mobile phone users to send free SMS to any mobile not only in India but also to UAE, Kuwait, Saudi Arabia, Singapore, Malaysia and Philippines.