Apac broadband subscribers to hit 182 million this year

KUALA LUMPUR, MALAYSIA: Asia-Pacific’s fixed broadband subscribers are likely to grow 17.3 percent to reach 182 million users by the end of 2009, clocking estimated billings of $44.9 billion, a rise of 13.3 percent over 2008.

Even as mobile broadband grows in tandem, Frost & Sullivan industry analyst Adeel Najam expects fixed broadband uptake to continue. He attributes this to the various government initiatives in rolling-out their national broadband ambitions such as Malaysia’s high-speed broadband (HSBB) project, Australia’s national broadband network (NBN) and Singapore’s iN2015 masterplan. He also expects telcos in developing markets to continue deploying basic xDSL (digital subscriber line) infrastructure.

By next year when most of the government-initiated projects are earmarked for full-scale roll-out, broadband users in Asia-Pac are expected to breach the 200-million-mark closing the year 2010 at 212.6 million.

New analysis from Frost & Sullivan, Asia-Pacific Fixed Broadband Market, finds that the broadband subscriber base in the region -- covering 14 Asia-Pac countries including Japan -- will grow at a CAGR of 14.1 percent annually (2009-2014) to reach 342.9 million subscribers by end-2014.

The same year, the region’s household broadband penetration would have risen to 37.2 percent, from only about 18 percent last year, with revenues estimated at close to $69 billion.

“The bulk of bandwidth growth and network roll-outs in the next few years will be driven by fibre-to-the-node deployments aided mainly by government spending on national high-speed broadband projects,” Najam says, adding that xDSL will however remain the dominant platform in developing markets.

According to Najam, “Consumer appetite for broadband will be spurred by the demand for high throughput value-added services such as IPTV and video-on-demand.”

He adds that services such as Web 2.0, social networking, file-sharing, online gaming, as well as falling PC prices and availability of low-cost netbooks have also added impetus towards broadband consumption.

In 2008, the top six Asia-Pac countries with the highest household broadband penetration rates were South Korea -- said to be one of the highest in the world -- at 92.8 percent, Hong Kong -- 85 percent, Singapore -- 78.5 percent, Taiwan -- 66 percent, Australia -- 63.7 percent, and Japan -- 62.7 percent.

The remaining eight markets have household broadband penetration rates of less than 60 percent.

By number of subscribers, in 2008 China had the most fixed broadband users with 83.4 million (53.8 percent of the region’s total subscriber base), followed by Japan with 30 million and South Korea with 15.5 million.

Looking forward, Najam dispels the threat of mobile broadband to fixed broadband services. He believes that both these access services need to co-exist, “In the age of convergence and multi-play services, both wireless and wireline broadband should be viewed as complementing technology to offer subscribers with blended services.

“While mobile broadband has significantly lower throughput than fixed access, it provides residential users with the convenience of ‘on-the-go’connectivity,” he adds.

First 3G watchphone available in France exclusively with Orange

PARIS, FRANCE: Paris, A technological masterpiece is now available from 6 August 2009 onward at orange.fr website.

The LG GD910 is the world’s first 3G touch watchphone. This 3G watchphone from LG Electronics is a masterpiece of miniaturisation and innovation which any new technology and gadget fans will find irresistible.

With its 1.43” tempered glass touchscreen, this slimline –- less than 14mm thick –- elegant watchphone with fold fastening strap has all the features you expect of a watch (world clock, stopwatch and splash resistant -– IPX4 standard). It is 3G/3G+ compatible, giving it excellent compatibility with Orange 3G/3G+ mobile broadband.

A watch with a clean, elegant design, the LG GD910 also boasts the features of the most advanced mobile phones: touchscreen with simple, fluid interface, VGA camera, MP3 player, diary, dictaphone, etc.

Unique mobile for communicating differently
This telephone is worn as a watch and allows the user to call, send and receive SMS, make video calls and be contacted at any time, for example during a sports session or shopping trip.

Bluetooth makes the watchphone practical and comfortable to use (keypad, loudspeaker function or earpiece). It features LG’s most advanced voice recognition and synthesis technologies, which are particularly useful when on the move.

It is available exclusively from Orange's website orange.fr, starting from €899 with subscription to an Origami star, first, jet or Origami plus package (12 or 24-month contract).

The LG GD910 is also available for Orange customers as part of the “Changer de Mobile” (Change your Mobile) Program.

Over 100 million LTE mobile broadband subscribers by 2014

HAMPSHIRE, ENGLAND: The number of LTE next generation networks is set to grow significantly with the number of subscribers exceeding 100 million by 2014, according to a new report from Juniper Research.

The LTE report found that these market numbers will be buoyed by the embedding of broadband capabilities within consumer electronics devices such as MP3 players, Netbooks and digital cameras.

Market momentum
Juniper Research forecast that whilst subscribers will largely use handsets such as smart phones, and laptops, consumers will be motivated to connect devices in the home by LTE.

Report author Howard Wilcox commented: "There is intense activity in the LTE market right now, with in excess of 30 network operator commitments. Operators and vendors alike are moving rapidly to jump on the road to LTE, attracted by the connectivity-based opportunities that the technology offers. Sony, for example, announced that network connectivity is one of three top priority actions.”

Uncertainties ahead
However, the report determined that there are still several open issues that need addressing before the market takes off. One of these is the issue of device convergence: what will a smart phone look like, and be capable of, in three years' time?

Further report findings include:
* Whilst early LTE adopters will be enterprise subscribers, consumers will begin to take up LTE based services towards 2012/2013.
* There will be multiple millions of LTE subscribers as early as 2011.
* Embedded LTE chipsets will become the second most popular means of access behind SIM cards by 2014.

Huawei, TeliaSonera achieve world’s first LTE mobile broadband connection

BANGALORE, INDIA: Huawei Technologies Co. Ltd and TeliaSonera/Netcom, announced the world’s first mobile broadband Internet connection over a live commercial LTE network in Oslo, Norway.

This demonstration saw download speeds to mobile devices greater than what is currently available. Based on Huawei’s LTE solution, TeliaSonera’s LTE network will benefit from high quality and extensive capacity to provide end users with the best mobile communication experience.

August Baumann, President of Netcom, a subsidiary of TeliaSonera in Norway, said: "We appreciate the professional implementation from Huawei and we are very pleased to make this world’s first LTE session in Norway. It is a significant step in bringing our customers much closer to real fourth generation mobile broadband service. It is also a milestone in the cooperation between TeliaSonera and Huawei."

"We are proud and excited to support TeliaSonera in completing its mobile broadband connection over the world’s first live LTE network," said James Chen, Managing Director of Huawei Nordic Office. "The first LTE session reflects Huawei’s leadership in the most cutting-edge of technologies and its ability to build LTE networks. We are well positioned to deliver a high quality network that will enable leading operators like TeliaSonera to achieve business success."

The first showcase of the live LTE network in Oslo, between a Laptop PC with a 4G modem and public Internet/Intranet, included downloading of high resolution photos, music, movies and mobile business applications, at a speed much quicker than most available fixed Internet accesses of today.

By adopting the LTE MIMO and OFDM technologies (Multiple Input Multiple Output and Orthogonal Frequency Division Multiplex, key radio technologies of LTE), the download peak data rate can reach 150 Mbps in one LTE cell with multiple terminals.

Top 10 mobile broadband myths

LONDON, UK: Mobile broadband is a luxury in a recession… Or is it? After extensive market research, Top 10 Broadband exposes the most popular misconceptions about mobile broadband.

"With this guide we wanted to put myths surrounding excessive costs and slow speeds to bed. Mobile broadband download costs are down to an all-time low of £1 per Gb and download speeds are coming in at an average of 2.62Mb -– we think it’s time to set the record straight on mobile broadband," Says Jessica McArdle, marketing manager of Top 10 Broadband.

To find out how Top 10 Broadband busted these myths, see the guide: Mobile broadband myths.

The top 10 mobile broadband myths in the guide are about:

1. Download allowances
2. Slow speeds
3. Rip-off laptop deals
4. Long contracts
5. Expensive data charges
6. Needing a dongle to connect
7. Overseas usage charges
8. Cost efficacy of deals
9. Dongle design
10. Home usage

Top 10 Broadband is the UK's most popular dedicated broadband
comparison site. The website offers a range of comparison tools, allowing users to make quick and easy broadband buying decisions.

Mobile broadband evolution maintains 24 percent rise in data revenues in 2008

UK: Over 15 percent of revenues generated by mobile operators globally came from non-voice services in 2008. According to the latest data made available by Informa Telecoms & Media’s World Cellular Data Metrics report, actual revenues comprising data services, reached $188.7bn in 2008, representing a 24 percent year-on-year increase.

“This is an important finding” commented Informa Telecoms & Media principal analyst, Nick Jotischky, “as non-voice services are becoming a central plank to mobile operator strategies at a time of increasingly high penetration rates, low voice tariffs and intense competition. Not only can data services help to keep the offerings of mobile operators more relevant and distinct from their competitors, but they can also help to raise ARPU levels and generate new customers.”

Looked at regionally, there is a considerable disparity in the significance of non-voice revenues –- at the top end, just over a fifth of the total $192.8bn revenues generated by mobile operators in North America in 2008 comes now from non-voice services as opposed to 5% of the $71.1bn revenues from mobile operators in Africa.

The majority of the $188.7bn of non-voice revenues are still SMS-based, but at the end of 2008, $75.1bn (40 percent) of this revenue was from non-SMS services. The deployment of advanced technologies (such as HSPA) and the growing demand for data-optimised devices such as Apple’s iPhone have helped to accelerate the level of non-SMS spend.

The advance of mobile broadband has been a key feature of the telecom industry in the past year with Informa putting the total number of subscriptions at 178.2m at the end of 2008. This represents extraordinary growth given that Verizon, the largest operator in terms of mobile broadband subscriber numbers (24.245m), only registered its first such subscribers at the end of 2004.

Given that it took the best part of 15 years to register the first 178m mobile subscribers globally, this represents a rapid evolution path for mobile broadband.

There are some warning signs, however, for the global mobile industry. There appears to have been a slowdown in data revenues reported by operators during the fourth quarter of 2008. Whilst, some of this can be explained away by currency fluctuations, there is a question over whether the global economic downturn has left its mark.

“Globally, data revenues remained flat in the fourth quarter at just below $49bn”, Jotischky comments, “and the fear is that global macroeconomic conditions have had an impact on discretionary consumer spend, and especially in North America and parts of Europe. If this trend continues into 2009, there is a real danger that any slowdown in non-voice usage will have an impact on mobile operator business strategies.”

Informa also publishes for the first time information on broadcast mobile TV networks. By the end of 2008, there were 26 live networks in deployment with the total number of subscribers reaching 27.718m at the end of 2008, of which over 21m subscribed to Japan’s 1Seg network, available on NTT DoCoMo, KDDI and Softbank networks.

Top 10 telecom predictions for 2009: Deloitte

Deloitte recently came out with its TMT (telecom, media and technology) predictions for 2009. Here are some bits from the telecom predictions for 2009. May I also take this opportunity to thank V. Srikumar, partner, Deloitte Haskins & Sells, for sharing this study. Thank you, sir!

1. Smart phones: how to stay clever in the downturn.
Mobile phone manufacturers should focus on developing smart phones features consumers want to use and are willing to pay for. They should work closely with operators to create easy-to-use services based on specific functionality that users value, says Deloitte. Smart phone manufacturers could also consider selling devices as price-competitive replacements for laptops. For some workers a smart phone may address all their communications, connectivity and applications requirements.

2. Data ascends from the basement to the boardroom.
Indeed! Data on customer information has been residing with telcos since ages. It is time now for the telcos to recognize that the data or information assets could become as significant to value creation as physical assets. Deloitte recommends that this customer information be integrated, and not appended or archived. It suggests that telcos should consider how to structure their activities to utilize their full spectrum of information. Having a CIO on the top management team and further, implementing a data governance framework, may become essential.

3. Digital communication loses its message.
In 2009, employees are likely to communicate digitally with each other in more ways, and in greater volumes, than ever before, says Deloitte. However, email may become obscure. The success of instant messaging was based on its greater immediacy and lesser formality. Growth of services like text messaging, has been driven by similar benefits. Companies should consider discouraging email for one day a week. Even not making indiscriminate use of the ‘reply-all’ function could save them time and money. Also, social networks may find that the best approach is to offer ‘white-label’ solutions to corporations, advises Deloitte.

4. The joys of disintermediation: why operators should embrace the application store.
According to Deloitte, in 2009, mobile phone users are likely to download over 10 billion applications to their mobile phones. A majority of applications are likely to be sourced from sites managed by mobile device manufacturers, consumer electronics firms and software houses. Although some operators may launch their own application stores38, the majority are likely to see no alternative to allowing their customers to access third parties’ stores. As the consumer awareness of mobile applications increases, the number of voice subscribers that add data subscriptions may well rise, boosting revenues. Applications could be used to drive operator loyalty and reduce retention costs.

5. Integration unleashes mobile phone convergence, finally.
Deloitte advises that while mobile handset manufacturers are getting better at convergence, they would still need to proceed with care. They should not assume that the mere addition of more features would guarantee success. Operators should study the consumers’ use of converged products in detail. It may help them identify revenue opportunities relating to converged functionality. The mobile phone may soon come to be regarded as the most successful converged product of all time.

6. Farewell mobile phone, welcome the wireless device.
All players in the mobile industry should understand how they are affected, for better or worse, by the emergence of the low-cost, multiple-standard chipset. The business case for the integration of wireless technology into a range of devices may be stronger. Mobile operators should consider their positioning -- whether to remain focused on the provision of long-range cellular mobile standards, or to become the aggregators of multiple wireless standards. Similarly, companies in other sectors should consider what low-cost integrated chipsets could enable.

7. The mobile broadband accident in slow motion.
As per Deloitte's study, data now exceeds voice volume on some mobile networks68, and with data traffic growing by several hundred percent on others, the cost of carrying data traffic could rapidly erode margins. Where possible, operators should try to divert heavy data traffic from cellular networks, and route it via other networks, such as WiFi-hotspots or home-broadband connections, at structured data tariffs. The operators need to focus marketing attention on managing customer expectations. They should examine the business model for mobile broadband carefully as well. With PC manufacturers increasingly integrating mobile broadband connectivity into their devices, diversification may soon be necessary.

8. The third screen goes dark: mobile television loses its reception
Deloite's study points out that everyone involved in the mobile TV industry -- an operator, a handset developer or a creative -- should take a long, hard, look at the demand for mobile television so far. The downturn could be a perfect opportunity to call time on a format that has too many fundamental challenges to work. It does not mean there's no space for mobile TV! Mobile telephony could provide an efficient payment mechanism for VoD -– delivered to the home set-top box, particularly for smaller VoD players. They can also be used to control the DVR. TV broadcasters can use mobile as part of their CRM strategies. Lots can be done, actually!

9. One for all and all for one: fiber networks change the shape of competition.
Shared ownership may reduce fiber's cost and risk, but may also require a new, unfamiliar approach to competition. Telcos and other companies should determine which skills they may need to hire to be able to compete on basis of services, or service levels, alone. Also, fiber-to-the-node (FTTN) or street-side cabinets may provide more than enough capacity for consumer and small business broadband, at a quarter of the cost of fiber-to-the-home (FTTH). Further, governments should complement their commitment to fiber deployment with campaigns to encourage adoption.

10. Mobile termination rates in Europe: a cut too far or a cut too fast?
Mobile operators in Europe, especially, have acknowledged that mobile termination rates (MTRs) must decline. However, 2009 is likely to see them push for a less drastic descent than the EC proposes. Consumer groups should monitor progress very carefully. Operators' knee-jerk reactions to sudden cuts could disadvantage millions of consumers, particularly those on low incomes. It may be better to call for a more moderate approach, from both operators and regulators. The local regulators should consider developing MTR glide paths that respect operators’ costs and market conditions.