Cisco offers $10m network innovation prize

Cisco offers $10m network innovation prize

Cisco Systems has announced the launch of the Cisco I-Prize which offers up to $10m to global entrepreneurs with commercially viable network technology business ideas. The winning team could have the opportunity to join Cisco as founders of a new emerging technology business unit. Depending on the value of the idea, Cisco may also invest a further $10m over three years to fund the new business unit.

Cisco said that it hopes to find new business ideas from around the world, and that it will take advantage of emerging collaboration processes and tools. "There are large parts of the world where inventors and entrepreneurs do not have ready access to venture capital or other means of funding, but have excellent ideas," said Marthin De Beer, senior vice president of Cisco's Emerging Technologies Group.

"We want to give those innovators an outlet and a means to develop their dream. The emergence of collaboration technologies and the growth of the network are driving a rapid evolution in the way we work."Cisco believes that we can open up new idea pipelines by closing those geographical gaps and at the same time infuse new ideas into Cisco's culture of innovation."The Cisco I-Prize was announced by De Beer at the opening of Cisco's Globalisation Centre East in Bangalore.

The prize is open to individuals aged 18 and older and entries will be evaluated in much the same way that Cisco assesses new internal business ideas for its Emerging Technologies Group.Judges will consider the technology innovation as well as the business opportunity behind the idea.Ideas should have the potential to bring in at least $1bn revenue to Cisco over a five to seven year period, and submissions must use the IP network as a platform.In later rounds, contestants may be provided with access to a variety of Cisco collaboration tools and the opportunity to use the company's TelePresence meeting rooms in locations around the world.

Qualcomm's New Go-Anywhere Chip

Qualcomm's New Go-Anywhere Chip

This month, Qualcomm announced a new wireless chip. The company is calling this chip Gobi, coined from Go and Be, symbolic of travel, expedition and vast coverage, suggesting access anywhere and ultimate mobility.

Even if you don't care for the name, the idea should appeal to you. You will be able to purchase a notebook computer with embedded wireless broadband (and a global positioning system, GPS), and no matter where you are in the world (with the exception of Japan, for now), you can turn it on, register on a network and have instant access to wireless broadband Internet.

This is an amazing chipset, designed from the ground up, for notebooks, other portable devices called Ultra-Mobile Devices (UMDs) and consumer devices. It's not just a chipset adapted from a mobile phone. It employs a software modem, and its radio technology enables sharing components between the radios.

In terms of wireless frequencies, it provides coverage on 850, 900, 1800, 1900 and 2100-megahertz bands and supports the appropriate technologies on each band: CDMA 1x/EV-DO/EV-DO Rev A and GSM/GPRS/EDGE/HSDPA/HSUPA. There is also a separate GPS receiver.

Such a chip has been long discussed. Sprint and Intel have been saying WiMAX chipsets will begin appearing not only in notebook computers, but also in UMDs and consumer devices. It is logical, they say, to include WiMAX in these devices to drive the adoption of the technology worldwide.

While many thought Intel would be the first to offer this chip, I've long said someone else would offer a universal chipset based on providing GSM/UMTS and CDMA/EV-DO on a number of different radio bands. I also said that this would enable notebook, UMD and consumer companies to build in a single chipset to have broadband wireless capabilities. I further stated that even if this universal chipset cost a little more than a WiMAX chipset, it would be favored by vendors because it would enable them to build a single device, sell it anywhere in the world and let customers activate it on any commercial wireless network that supports GSM/UMTS or CDMA/EV-DO.

If you put all that on a chart, you will see that the various combinations of radio coverage and technologies virtually blanket the world.

As far as the price differential goes, Qualcomm is not yet talking about pricing, at least to the analyst community. But I believe that if there is a delta between a WiMAX chipset and the Gobi chipset, it won't be significant. In fact, under certain circumstances, the Gobi solution may actually make the notebook vendor more money in the long run.

According to numbers I am hearing, notebook companies really like selling notebooks with wide-area broadband wireless, because the amount of money they make from the activation is more than they make for selling five notebooks. If this is correct, it doesn't take a math wizard to understand that having a single radio module that works virtually anywhere means notebook vendors can build a single model of a product and ship it anywhere in the world, knowing it can be activated on any of today's commercial networks.

The Gobi chipset is slated for a 2008 release, which, I believe, is sooner than Intel is planning to release its WiMAX chipset--although there are other companies with WiMAX or near-WiMAX chips already in the market. And as we add the Advanced Wireless Services (AWS) spectrum, 700-MHz spectrum, LTE and UMB to the mix, I expect the Gobi chipset to keep up and provide for these new bands and capabilities, as well as full backward compatibility.

Let's take a look at the notebook business today. The numbers I am using were provided by Qualcomm, but I am confident they are accurate, at least from a Qualcomm chipset perspective. In July 2006, there were 45 different notebook models with embedded broadband--either EV-DO or UMTS modules--from nine notebook companies, and only seven networks had approved embedded wireless for notebooks. In July 2007, there were 157 models from eighteen vendors, and the number of networks with approved embedded wireless for notebooks has risen to 20, based on Qualcomm's and network operators' figures.

The notebook market will never be as big as the handset market, but it's a different marketplace. Notebooks include a wireless module, antenna system and software--and are not designed around the wireless components. Further, the module cost in the overall bill of materials is a much smaller percentage in a notebook when compared to a handset. As for pricing of the modules, Wi-Fi began to be built in when the cost of the module dropped below $40. When it dropped below $30, it became a standard in most notebooks. Will the module including the Gobi chipset achieve similar prices? Qualcomm's not saying--but because notebook vendors are paid for each activation, which is sometimes more than they make on the notebook, you have to believe they might be willing to be creative in their pricing, and the cost of a module, which I suspect will be higher to start, will not be a significant a factor.

Starting next year, chances are pretty good we'll see a wide variety of notebook models that contain this worldwide broadband module. When you purchase a notebook, as the machine is being set up, it will walk you through the setup for the wireless portion, help you decide on a network and assist you with network sign-up and registration. You will be able to sign up as part of a corporate account, as a small company or an individual for unlimited service at the going rate (depending on the length of the contract you sign) or on a per-day basis.

According to the network operators I talked with, there is a high probability of a per-day customer signing up for monthly service after a few days of use. Also, having the daily rate available means I could be a Verizon customer and use EV-DO Rev A in the U.S. on an unlimited (within reason) data package, and when I travel to the U.K., I could sign up for daily use of UMTS/HSPA from one of the network operators there--which I'm willing to bet would be cheaper than paying roaming charges. The universal wireless modem would make this possible--my current notebook would not normally work on UMTS.

The Gobi is also an indication that Qualcomm and other companies understand that notebooks are only the first of many devices that can benefit from this type of world chipset. There are also UMDs and, of course, consumer appliances. I still have a problem with the principle of these smaller devices providing us with the same Internet we have on our desktop, but at least they will have a universal broadband chipset in them.

On the handset side, we are also seeing an uptick in world phone products. Research In Motion's BlackBerry CDMA/GSM devices are selling very well, and other vendors that had been ignoring this market are starting to take another look. It still amazes me that some handset makers only build phones on the "world standard" GSM/UMTS, because, as they say, that represents 70% of the total networks in the world. I contend that the other 30% are pretty important--and now, with these new chipsets, we should be seeing more device choices on the market in the next year or so.

Another benefit is that these world chipsets will give network operators new freedom when making future decisions about technology (where the technology is not mandated by the government) and they will make things easier for operators with networks on both technologies.

Qualcomm, Intel and most of the companies involved in mobile computing and wireless all agree on one thing: Embedded wide-area broadband is the way to go for notebooks, UMDs and consumer appliances. Where they differ relates to what will be included on the chip--multiple technologies on multiple bands that can be used on virtually 100% of today's commercial networks, or a single technology for a limited number of networks.

Lawsuit filed over Ericsson warning

Lawsuit filed over Ericsson warning

Ericsson is being sued in the US for allegedly misleading the market after issuing a profit warning on October 15 that wiped out a quarter of its market value - about $15bn - in about one day. A US law firm has alleged the company and its senior managers knew Ericsson's earnings were bad well before they told the market. Coughlin Stoia Geller Rudman & Robbins also alleges Ericsson was aware of its problems when it held a conference for investors just three weeks earlier in London on September 11.

It is seeking compensation for anyone who bought shares between September 11 and October 15. If successful, the suit could cost Ericsson millions of dollars. The class-action suit has been filed and Coughlin Stoia is seeking shareholders to join the action. Ericsson, the world's largest telecommunications equipment company, issued the profit warning after learning that operating income would drop 39 per cent to SKr5.6bn ($878m) in the third quarter compared with the previous quarter. The company attributed the decline in earnings to "a shortfall in sales in mobile network upgrades and expansions which resulted in an unfavourable business mix that also negatively affected margins".

According to the complaint, Ericsson and its chief executive, Carl Henric Svanberg, and former chief financial officer, Karl-Henrik Sundström, who resigned after the warning, "issued materially false and misleading statements regarding the company's business and financial results". Ericsson said in a statement: "We are very sorry to hear about this class-action suit. We follow the rules as stated by the stock exchange as well as in our stock exchange contract. At the moment we are reviewing the class-action suit and any further comment will be decided upon later."

Alcatel-Lucent loses EUR 258 mln, cuts jobs, replaces CFO

Alcatel-Lucent loses EUR 258 mln, cuts jobs, replaces CFO

Alcatel-Lucent SA, the world's biggest maker of telecommunications equipment, will cut a further 4,000 jobs and Chief Financial Officer Jean-Pascal Beaufret will resign after the company reported a third straight quarterly loss and reduced its sales forecast.

The elimination of another 5 percent of the workforce will help save 400 million euros ($577 million) by the end of 2009, Paris-based Alcatel-Lucent said in a statement today. The company said in February it would cut 12,500 workers.

Chief Executive Officer Patricia Russo said the collapse of the U.S. housing market has hurt demand for broadband gear, at a time when the industry already faced a drop in wireless orders. Alcatel-Lucent shares have lost 38 percent in 2007, the biggest drop in France's CAC 40 Index, as Alcatel SA's purchase of Lucent Technologies Inc. failed to stem customer losses.

``We'll see if this suffices,'' said Frederic Hamm, who helps manage the equivalent of $217 million at Agilis Gestion in Paris and doesn't own Alcatel-Lucent shares. ``It will take several months before we see the effect, but it will have to be fast. The margins won't stop falling.''

The third-quarter adjusted net loss was 258 million euros, compared with profit of 532 million euros a year earlier. Sales fell 11 percent to 4.35 billion, hurt by lower investments in wireless networks in the U.S.

20 Percent

The 16,500 jobs to be eliminated equal about 20 percent of the company's workforce, which stood at 80,508 at the start of the year. Alcatel-Lucent hasn't specified where the cuts will occur, just that they will be across the board. The company has eliminated 5,000 of the jobs this year.

Analysts predicted a loss of 129.4 million euros, the average of nine estimates compiled by Bloomberg. Estimates ranged from a loss of 348 million euros to profit of 9 million euros.

Alcatel-Lucent shares rose 10 cents, or 1.5 percent, to 6.73 euros as of 2:15 p.m. in Paris. Before today, the stock had dropped 34 percent since Alcatel bought Murray Hill, New Jersey- based Lucent in November for $11.6 billion. The decline erased $11.7 billion in market value.

Beaufret said on a conference call with reporters he's leaving ``in the coming weeks,'' and will be replaced by Hubert de Pesquidoux, who heads the company's enterprise business. Beaufret is leaving ``to pursue other opportunities,'' the company said.

Disappointment

``The CFO dismissal or resignation is a mild disappointment as investors would probably prefer Russo to pay the price of the warnings over Beaufret, who did a decent job under very difficult circumstances,'' said Jesper Kruger, who helps manage about $64 billion at ATP in Copenhagen.

Sales this year will be about unchanged from 2006, at constant exchange rates, the company said. Alcatel-Lucent previously had said sales would be ``flat or slightly up.''

``We're seeing a bit of a slowdown in spending now in the wireline part of the market, particularly in North America,'' Russo said on the conference call. ``Some of that is related to the housing issue, and new lines and new homes.''

Competitors also are suffering. Shares of Ericsson AB, the world's largest maker of wireless networks, plunged 24 percent on Oct. 16 after the Stockholm-based company said profit and sales trailed its forecasts. Lower demand for network upgrades in North America and Europe hurt profit margins, the company said.

Alcatel-Lucent's third-quarter sales in the wireline unit, which supplies optical networks and broadband-Internet access equipment, rose 5 percent to 1.52 billion euros.

`Lackluster' Businesses

``The one part that was doing well is now also suffering,'' Hamm said. ``All of Alcatel's businesses are lackluster. That's also the case for all the competitors. It's not unique to Alcatel-Lucent.''

In the wireless division, which supplies equipment such as base stations for mobile networks, sales slumped 24 percent to 1.28 billion euros.

Alcatel-Lucent said it will create two regional groups --one to run the Americas and the other for Europe, the Middle East, Africa and Asia -- down from three currently. Christian Reinaudo, head of Alcatel-Lucent's Europe and North region, will leave the company.

The company also is creating a seven-member management committee to oversee strategy. The members include Pesquidoux; Cindy Christy, head of the Americas; Etienne Fouques, who oversees research, strategy and corporate marketing; John Meyer, head of services; Claire Pedini, head of human resources and communications; Michel Rahier, head of the carrier business group; and Frederic Rose, head of Europe, the Middle East, Africa and Asia.

New Blood

``The company is trying to add some new blood,'' said Clemence Bounaix, an analyst at Richelieu Finance in Paris, which oversees $5 billion. ``The cost cuts should add color to the operating margin, but it's too early to buy the shares.''

The company has decided for now not to exit any major businesses, Russo said.

Alcatel-Lucent said Sept. 13 that sales growth may stall in 2007, third-quarter profit excluding items would be ``around break-even'' and margins will shrink. The company cited declining orders for mobile-phone networks and falling prices.

Russo repeated a forecast for gross operating profit as a percentage of sales ``in the high 30s'' and an operating margin of ``10 percent plus'' from 2010 onwards.

`Pinch of Salt'

``We take the statement with a pinch of salt,'' said Per Lindberg, an analyst at Dresdner Kleinwort, in a note to investors. He forecasts operating profit to be 7 percent to 8 percent of sales ``in the long run.'' Lindberg, who recommends buying Alcatel-Lucent shares, said in a report last month that the company should cut 30,000 jobs.

The company's unions said they oppose new job cuts. One union, Confederation Generale du Travail, blamed the merger with Lucent for the company's woes.

``To say that the American dream is a fiasco would be a mild euphemism,'' the union said in an e-mailed statement. ``The merger with Lucent, without being the only cause, is revealing itself as a key factor in the company's descent into hell.''

Bakan Binali Yıldırım: Numara taşıma artık çözülsün

Yıldırım: Numara taşıma artık çözülsün

Ulaştırma Bakanı Binali Yıldırım, cep telefonu operatörleri arasında numara taşınabilirliğinin mümkün hale getirilmesi isteyerek, “Teknolojiler geliştikçe belimizde su matarası gibi aletleri sıralamayalım. Bir aletle her şeyi yapar hale gelelim. Tek numaramız olacak, her işi yapacağız. Bunu da özellikle işletmelerden istirham ediyorum. Bu konuda tutuculuğu bırakalım. Bir araya gelelim" dedi. Telekomünikasyon Kurumu (TK) Başkanı Tayfun Acarer de iletişim sektöründe vergilerin düşürülmesinin son derece önemli olduğunu söyledi.

Global Bilgi istihdam rekoruna koşuyor

Global Bilgi istihdam rekoruna koşuyor

Türkiye'de çağrı merkezi sektörünün dev ismi Global Bilgi 10 bin metrekarelik yeni binasını İstanbul Ümraniye'de açtı.

Türkiye’nin lider Avrupa’nın sayılı müşteri ilişkileri yönetim merkezi Global Bilgi yeni hizmet binasını İstanbul Ümraniye’de açtı. Bu binayla birlikte 9 ayrı lokasyonda hizmet vermeye başlayan şirketin ana santral sayısı Halkalı ve İzmir’den sonra üçe çıktı.

Türkiye’nin önde gelen markalarına hizmet veren, müşterilerine ihtiyaçları doğrultusunda anahtar teslim uçtan-uca çözümler sunan Global Bilgi, yeni yatırımlarla istihdam yaratmaya ve sektörün gelişimine katkıda bulunmaya devam ediyor.

İstanbul Ümraniye’de faaliyete giren Global Bilgi’nin yeni hizmet binası Turkcell Genel Müdürü Süreyya Ciliv’in katılımıyla 26 Ekim 2007 tarihinde açıldı.

Bir Turkcell şirketi olan Global Bilgi yeni hizmet binasıyla, günlük çağrı kapasitesini 300 binden 400 bine; saatteki çağrı kapasitesini ise 35 binden 45 bine yükseltti. Global Bilgi, Ümraniye binasıyla toplamda 3300 olan masa sayısını 4000’e, hizmet alanını da 19 bin m2’den 29 bin m2’ye çıkardı.

Global Bilgi, sektöründe en ileri teknolojileri kullanan VoIP tabanlı çağrı merkezi altyapısıyla Türkiye’nin en büyük, Avrupa’nın da önde gelen teknolojilerinden birine sahip. Müşteri ilişkileri yönetim merkezi konseptine uygun olarak dizayn edilen yeni Ümraniye binasında ise çalışanlar için her şey düşünüldü. Kafeteryalar, kuaför ve spor salonu gibi detaylar çalışanların çalışma zamanı dışında vakit geçirebilmeleri için tasarlandı.

Global Bilgi Genel Müdürü Bahadır Pekkan yaptığı konuşmada, “Çağrı Merkezi” olmaktan çıkıp bir Müşteri İlişkileri Yönetim Merkezine dönüşerek çağrı merkezi kavramına yepyeni bir boyut kazandırdıklarını vurguladı. Pekkan, “Müşteri ilişkileri yönetiminde insan ve süreçlere büyük önem veriyoruz. Ancak bunların iyi performans elde edebilmesi için ihtiyaç duyulan teknolojik altyapıya da yatırıma devam edeceğiz” diye konuştu.

Turkcell Genel Müdürü Süreyya Ciliv, “Sekiz yıl önce yüzde yüz Turkcell sermayesiyle kurulan bu şirket, katlanarak büyüdü ve önemli bir işveren haline geldi. Global Bilgi, Turkcell gibi sektörünü yönlendiriyor ve en kaliteli servis ve ürünleri ilk önce ve uygun koşullarda müşterilerine ulaştırıyor” diyerek Global Bilgi’nin misyonuna verdikleri önemi ifade etti.

Global Bilgi sadece soruları cevaplayan bir çağrı merkezi değil, kaliteli müşteri deneyimi yaşatan bir müşteri ilişkileri yönetim merkezidir. 5000’in üzerinde genç çalışan sermayesini, dünya standartlarında teknolojik know how ile birleştirip fark yaratan Global Bilgi kurumsal müşterilerine akıllı dış kaynak çözümleri sunan, stratejik iş ortağıdır.

Avea selects Alcatel-Lucent's IP/MPLS solution for mobile network

Turkish mobile operator Avea selects Alcatel-Lucent’s IP/MPLS solution for mobile network transformation

Alcatel-Lucent today announced that it has been selected by Avea, Turkey’s fast growing mobile operator with over nine million subscribers, to start migrating voice, signaling and networking services onto a highly reliable IP/MPLS-based network utilizing Alcatel-Lucent’s solution. The converged network will be able to support voice, broadband data services (GPRS, Edge and 3G), signaling and billing traffic, 2G/3G voice traffic as well as future multimedia services. Alcatel-Lucent’s solution is part of its Mobile Evolution Transport Architecture (META), a comprehensive vision for the evolution of mobile networks from TDM to all-IP.

Alcatel-Lucent will enable Avea to evolve its networks to a converged, next-generation infrastructure. Supporting all services on a single network, Avea will maximize its investment, reduce operational expenditures while accelerating the launch of new advanced and convergent services to the market.

With the Alcatel-Lucent IP/MPLS solution, Avea is optimizing the use of bandwidth in its IP core network which will dynamically be adapted to bandwidth needs depending on the volume of data and the type of traffic transmitted. Additionally, its intelligent service management capabilities will allow the operator to guarantee reliability and end-to-end quality, and to diversify its offering by establishing differentiated QoS based on the type of client or use of the network. This is a significant advantage for high bandwidth multimedia services which are very demanding in terms of network performance.

“Mobile operators are demanding service assurance capabilities and network performance that enable a predictable subscriber experience for ‘Always-On’ IP/MPLS services,” Olivier Picard, President of Alcatel-Lucent’s activities in Europe and South (global). “Providing such services requires that Avea relies on the reliability, performance and flexibility of a converged network architecture. The unique high availability features in our service routers are ideally geared toward delivering mobile voice services over an IP/MPLS network.”

Alcatel-Lucent is providing Avea with an IP/MPLS core and edge network solution based on its next generation Alcatel-Lucent 7750 Service Router along with the Alcatel-Lucent 5620 Service Aware Manager.

Avea joins a growing number of forward looking mobile operators around the world that are deploying IP/MPLS in their core transport networks including Vodafone Portugal, Verizon Wireless and China Mobile. Alcatel-Lucent IP solutions have been selected by over 180 service providers in more than 70 countries. During the second quarter of 2007, Alcatel-Lucent reinforced its #2 position in IP/MPLS edge garnering 21% of the market according to Ovum-RHK.

3 and Skype launch VoIP mobile calls

3 and Skype launch VoIP mobile calls

Mobile operator 3 has launched the 3 Skypephone, a mobile phone capable of making VoIP calls over its mobile network. Due to hit the UK market this Friday, the device has Skype built-in and can use 3's 3G network to make normal mobile phone calls and send texts.

Ovum's principal analyst, John Delaney, pointed out that the rival mobile operators, such as Vodafone, T-Mobile and Orange, have all taken flak recently for alleged hostility towards customers using VoIP on their networks. "Now here comes 3, not only encouraging its customers to use VoIP, but bending over backwards to make it easy for them," he added.

Delaney said that the initiative being taken by 3 is no coincidence. "As the smallest and newest of the UK mobile operators, 3’s best hope for growth is to disrupt the status quo wherever it can,” he argued.

The Skypephone was developed through a partnership between Skype and 3, with communications chipset manufacturer Qualcomm using its binary runtime environment for wireless (BREW) platform to let Skype access core handset features, such as address book and messaging. The 86g device comes with a two megapixel camera, Bluetooth support and a 256MB microSD card as standard.

Worldwide Base Stations to Pass 3 Million by Year-End

Worldwide Base Stations to Pass 3 Million by Year-End

For the first time, the number of active base stations worldwide is set to pass 3 million units by the end of 2007. A new study published by IMS Research is looking, among other topics, at the worldwide installed base of base stations. This is expected to jump from just above 2.7 million in 2006 to nearly 3.1 million in 2007.

One of the main findings of the report is that GSM still accounts for the vast majority of base stations worldwide and is set to retain significant market share in the following years. The number of the GSM base stations is growing worldwide, with the exception being Europe where there is a greater migration from GSM to more efficient UMTS networks.

Matia Grossi, lead analyst for infrastructure, says "The explosive growth in number of cellular users, especially in developing countries, is driving the growth in the number of cellular base stations being installed". Grossi goes on "Operators in these developing countries are choosing GSM because (among other reasons) of the availability of cheaper infrastructure equipment that the technology can offer".

"On the other hand in developed countries, continuous technological innovation, increased competition in the market and aging networks, means that the replacement market starts to play an increasingly determinant role. The growth of the number of base stations installed in these regions is going to be very low, with rollouts of new networks being a rare event in the next 2-3 years, and operators relying heavily on software upgrades to increase the capacity of their networks" Grossi comments.

Datang says WiMAX fails to meet 3G standards

Datang says WiMAX fails to meet 3G standards

WiMax, which was approved as a third generation (3G) standard by the International Telecommunication Union (ITU), fails to meet third generation standards actually, the Beijing Morning Post today cited a supporter of China's homegrown 3G wireless standard TD-SCDMA as saying. "WiMax, based on the IEEE 802.16 standard, is unable to support seamless handover, and can't meet mainstream 3G standards," said Chen Shanzhi, vice chief engineer of Datang Telecom Group, one of China's leading TD-SCDMA vendors. "In addition, the industrialization of WiMax is immature and many key technologies still need further testing," Chen added. He also said that WiMax is a solution for wireless broadband access, but the Chinese government has organized experts to discuss the technology, finding it is not a good solution for mobile communication. On October 19, WiMAX was approved as a 3G standard by the ITU, a United Nations agency that allocates radio frequencies for commercial use among its member countries, after the WCDMA, CDMA2000, and TD-SCDMA. Chen also stressed that TD-SCDMA is indubitably an independently-developed technology and Datang holds key intellectual property right to TD-SCDMA.

Africa mobile firms to invest $50 bln over 5 years

Africa mobile firms to invest $50 bln over 5 years

Sub-Saharan Africa's GSM mobile industry plans to invest $50 billion over five years to expand networks and upgrade services, an industry official said on Monday. "That puts Africa probably at the very front of the investment league in mobile," Tom Phillips, the chief government and regulatory affairs officer for industry body GSM Association (GSMA) told Reuters in an interview."The investment will bring sub-Saharan Africa broadly in line with the developed world in terms of mobile coverage ... it will be truly connected to the mobile broadband global network."

The continent's service providers have spent about $5 billion a year since 2000, he said. Researchers estimate that mobile operators worldwide have spent more than $234 billion building GSM and 3GSM networks over the last five years.Nearly 70 percent of sub-Saharan Africans are covered by mobile networks today, but that number would rise to about 90 percent following the new investment, Phillips said. Much of the planned new money will go not only on expanding coverage for voice calls, but also on boosting the capability of networks to deliver high-speed internet access. Only 26 percent of Africans currently use mobile services, spending $13.60 on average each month, mostly on text and voice calls, according to GSMA figures.

MORE SPECTRUM, MORE CONNECTIONS

Phillips was speaking ahead of a meeting of African government leaders and telecoms industry officials in Rwanda that hopes to come up with major new commitments to connect the unconnected on the continent. African governments needed to remove obstacles like charges for accessing telecoms spectrum to reduce connection costs to fixed-line operators -- usually state-owned monopolies -- to further mobile expansion, he said. "Charges made by government to access spectrum just take money out of the investment part rather than support it."

Phillips said if mobile operators were to connect as many people as possible in the future, they would need more spectrum, adding that some radio frequencies currently used for analogue television should be handed over for cell phone use. African operators currently get spectrum bands at between 900 and 1800 megahertz, but are asking for bands at about 110 megahertz, he said. East African governments also needed to stop squabbling over plans for an undersea telecoms cable linking the region with the rest of the world, he added. Countries on Africa's east coast currently have no cable links and rely on expensive satellite connections that drive up bandwidth connection costs. The GSMA also urged governments to cut taxes, which it said would in turn increase usage and taxes collected. "A lot of governments continue to tax mobile services almost as if they were luxury items," Phillips said. "With high levels of tax, it is difficult for operators to invest as much as they would have done."

Taiwan market: 3.5G more advantageous than WiMAX over next 2-3 years, says Taiwan Mobile

Taiwan market: 3.5G more advantageous than WiMAX over next 2-3 years, says Taiwan Mobile

HSDPA (high-speed downlink packet access), commonly referred to as 3.5G, is expected to gain the upper hand over WiMAX during the next two to three years in terms of commercial operations in Taiwan, according to chief business officer Cliff Lai for Taiwan Mobile (TWM).

In terms of technological development, 3.5G is mature relative to WiMAX, Lai explained. Although WiMAX offers quicker access to the Internet than 3.5G, demand for mobile access to the Internet at such speeds is lower than that for fixed-line access, Lai pointed out. In addition, WiMAX incurs much higher base station deployment costs than that of 3.5G, Lai indicated.

TWM will extend its 3.5G infrastructure from northern Taiwan to the central and southern regions by the end of 2007 to extend 3.5G service around Taiwan by the end of 2008, Lai said.

While failing to obtain a regional WiMAX operation license in June 2007, TWM may compete for two island-wide WiMAX licenses to be issued in 2009, Lai indicated, noting that WiMAX operations will be more mature to some extent then and costs of COE (central office equipment) and CPE (customer premises equipment) are expected to be lower, Lai pointed out.

In related news, TWM and Yahoo! Kimo (Yahoo! Taiwan) on October 25 jointly announced the launch of the first traditional Chinese-language version of Yahoo! oneSearch for mobile online search services on TWM's value-added service platform Catch, with TWM being the exclusive partner.

VoIP Still Lags Traditional Telephone Networks in Call Quality

VoIP Still Lags Traditional Telephone Networks in Call Quality

VoIP users in the U.S. are still experiencing significant sound quality and audio delay problems, according to a recent study by performance monitoring firm, Keynote Systems. The study measured twelve major VoIP and digital phone providers in terms of service availability, call completion rates, and audio delay, and determined that although these services have improved in recent years, they continue to lag behind traditional landline carriers like Verizon and AT&T.

“Our key finding here is that there has been significant improvement for VoIP services, but there is still a difference in terms of quality of calls,” commented Keynote’s VoIP manager, Rajeev Kutty.

Most cable phone services now have audio delay times of less than 150-milliseconds, according Keynote, rendering them more or less unnoticeable. Non-cable VoIP providers measure delays of between 149- and 279-milliseconds, however, and most have call disconnection rates of more than 1%.

The study was carried out by placing more than 125,000 calls between New York and San Francisco over a period of one month. It is Keynote’s fourth study comparing VoIP providers with Public Switched Telephone Networks in terms of call quality.

Network Equipment to buy Quintum for $41M

Network Equipment to buy Quintum for $41M

Network Equipment Technologies Inc. said Friday it agreed to acquire Quintum Technologies Inc. for $41 million. Fremont-based Network Equipment said the payment will comprise $20.5 million in cash and $20.5 million in stock. Network Equipment will also assume about $2 million in debt for Eatontown, N.J.-based Quintum.

Privately-owned Quintum focuses on VoIP access. The company has about 75 employees and also has offices in Schaumberg, Hong Kong, Taipei and Shanghai. Its products will continue to be sold through the Quintum brand. Network Equipment is a provider of multi-service network exchange solutions for enterprise and government customers.

Deloitte - en hızlı büyüyen 50 teknoloji şirketi

Deloitte’ın en hızlı büyüyen elli teknoloji şirketi sonuçlarında ilk üç:

1- Parkyeri (3432,95% büyüme)

2- Borusan Telekom (1559,59% büyüme)

3- Defne (1419,85% büyüme)

http://www.deloitte.com.tr/links/section/fast50_2007/TeknolojiFast50presentations.pdf

Broadband access in the EU: situation at 1 July 2007

Broadband access in the EU: situation at 1 July 2007

UK Openreach ile altyapı işletmeciliği işinin British Telecom’dan ayrıdıktan sonra nihayet hedefini yakaladı ve broandband penetrasyonda Almanya ve Fransayı geçti.

AB’nin Avrupanın bilgi çağında geri kalmaması için yerleşik/devlet telekom operatorlerinin pazardaki payinin azaltilmasi ve rekabetin arttirilmasina yonelik adimlr devam ediyor, her gecen yil paylari biraz daha dusuyor ve rekabet kizisip tuketiciler kazaniyor.

devamı : http://ec.europa.eu/information_society/policy/ecomm/doc/implementation_enforcement/broadband_access/Broadband_data_july07_final.pdf

Paul Doany Uluslararası Sendikalar Ağı'na (Global Union) Cevap Verdi

Paul Doany Uluslararası Sendikalar Ağı’na (Global Union) Cevap Verdi

Türk Telekom Yönetim Kurulu Başkan Paul Doany, Uluslararası Sendikalar Ağı'nın (Global Union) Türk Telekom’da 10.gününe ulaşan grev konusunda gönderdiği mektuba verdiği yanıtta, yetkin ve sorumlu bir yönetimin sınırları dahilinde verilebilecek en makul teklifi vermek için ellerinden geleni yapmalarına rağmen sendikanın yapılan adil hiçbir teklifi kabul etmediğini ve grev kararı aldığını söyledi.

Türk Telekom Yönetim Kurulu Başkan Paul Doany, Communications Workers
Union Genel Sekreter Yardımcısı Terry Delany'e yazdığı cevapta, toplu iş sözleşmesi görüşmelerinde, Türk Telekom yönetiminin bayram öncesi mutabakata varabilecekleri konusunda ümitli olduklarını, ancak bayram sonrasında da bunun gerçekleşemediğini söyledi. Doany mektubunda şunları belirtti :

Sendika temsilcilerinin adil olmayan sürekli saldırılarına ve o zaman asla kamuoyuna açıklanmayan üç uluslararası fiber kablonun kasti olarak kesilmesi olaylarına rağmen şirketimiz ümitli beklentileriyle ilgili olumlu kamuoyu açıklamaları yaptı. Bu olaylardan kimin sorumlu olduğu konusunda bir suçlamada bulunmuyoruz. Sadece, mutabakata varmak için önümüzde daha on gün varken, sendikanın grev hazırlığı yaptığını ilk defa açıkladığı gün olan 5 Ekim 2007 tarihinde üç kablo kesme vakası yaşandığını belirtiyoruz.

Ayrıca şunu da belirtmek isteriz ki grevin başladığı 16 Ekim 2007 tarihinden beri stratejik bölgelerde şebekemize ve kablolarımıza yapılan 159 kasti saldırıyla mağdur edildik ve bu saldırıların failleri yerel emniyet güçleri tarafından soruşturulmaktadır. Bu saldırıların 15'inin müzakerelerin mutabakat ile sonuçlanmayacağının açıklığa kavuşmasından iki saat sonra, yani gece 02.00'den sonra gerçekleştirilmiş olması manidardır.

Mektubunuzda şirketin, sendikalı çalışanlarının maaşlarını azaltmaya çalıştığına ilişkin endişelerinizi dile getiriyorsunuz. Bu bilgi doğru değildir çünkü şirketin teklifi, tüm sendikalı çalışanlarımız için 2007-2008 yıllarını kapsayan iki yıllık süre için geçerli olacak enflasyon oranının üzerinde maaş artışını içermektedir. Bu açıklamanız muhtemelen, başlangıçta önermiş olduğumuz, yılda 52 gün ikramiye ödemesinin kaldırılmasıyla ilişkili azalmadan kaynaklanmaktadır ve söz konusu ikramiyenin 1 Mart 2007'de kaldırılması 2005 yılında (özelleştirme öncesinde) kararlaştırılmıştır. 2005 yılında aksi yönde mutabık kalınmasına rağmen iyi niyetle bu ikramiye ödemesinin devam etmesi için sendikalı çalışanlarımıza ikramiyeyi tekrar teklif ettik. Dolayısıyla, hiçbir çalışanın maaşı azalmayacak; tam tersi, herkese enflasyonun üzerinde net bir maaş artışı yapılacaktır.

Türk Telekom Yönetim Kurulu Başkan Paul Doany, sendika üyelerinin maaşlarının aynı pozisyonlardaki kapsam dışı personelin maaşlarıyla eşitlenmesi talebi konusunda da şunları belirtti :

Bu, sendikanın talebinin esasen 26 bin üyenin 6 ila 7 bin üyesini (bu rakam, maaşları arasında az fark olanlarla birlikte 10 ila 12 bine çıkıyor ve biz bu dengesizliği gidermeyi de teklif ettik) kapsadığı dikkate alındığında görüşmeler sırasında karşılaşılan en büyük zorluktu.

Sendikanın bu konuda aşırı taahhütte bulunmaları, maaşı halihazırda iyi olan ve maaş farklılığı olmayan 12 binden fazla çalışan için, enflasyon yüzde 8 olmasına rağmen, ilk yıl için yüzde 14 artış istemeleriyle sonuçlandı. Bu çalışanlarımızın maaşları piyasa koşullarının yaklaşık ortalama yüzde 59 üzerindedir ve tek bir pozisyon için bile maaş düzeltmesine yönelik artışlara ihtiyaç duyulduğunun iddia edilemeyeceğini kesin olarak söyleyebiliriz.

Buna rağmen, sendika bu yüksek talebini muhafaza etmiş daha sonra ilk yıl için taleplerini yüzde 10'a düşürmüş ancak ikinci yıl için kabul edilemeyecek koşullar öne sürmüştür: Yani Yüzde 4 artı 4 maaş artışı. Maaşların eşitlenmesi ile ilgili olarak ve iyi niyetle, 1 Mart 2008'den itibaren maaş zammı olarak ödenmek üzere maaş eşitsizliklerini dengelemeye yetecek miktardan da fazlasını karşılayan bir bütçe önerdik. Şirket, sendika ve bağımsız hakemden oluşan bir komisyonun, her bir pozisyona verilecek maaşlar üzerinde çalışmasını teklif ettik.

Paul Doany, tarafların makul koşullar altında mutabakata varacakları konusundaki ümidi koruduklarını dile getirdi.

Maalesef sendika, bu şirket hala devletin sahip olduğu bir tekelmiş gibi müzakere etmekte ve hatta görüşmeler sırasında, maaşları devletin yaptığı maaş artışları ile kıyaslamak suretiyle (bu artışlar çok az maaş alan devlet memurları için uygulanmış olsa da) bu iddiaları dillendirmektedir.

Doany, sendikaya üzerinde mutabık kalınan bir tahkim sürecinin hemen başlatılmasını ve bunun nihai bir neticeye tabi olan böylece söz konusu sürecin sonuçlarının nihai ve her iki taraf için de bağlayıcı olduğu bir çerçevede yapılmasını teklif ettiklerini de söyleyerek, şunları söyledi :

Bu durumun çok uzun süremeyeceğine inanıyor ve sağduyunun kazanacağını ya da en kötü ihtimalle üzerinde mutabık kalınan bağımsız yasal bir tahkim sürecine müracaat edileceğini umut ediyoruz.

Never mind that '4G' stuff, Sprint now says

Never mind that '4G' stuff, Sprint now says

Now that WiMax has been certified as a form of 3G (third-generation) mobile data infrastructure, Sprint Nextel Corp. is changing its tune about the WiMax network it plans to launch commercially in April.

Last year when Sprint was shopping around for a "4G" technology, it had a lot to say about how 4G would do something 3G networks couldn't. WiMax won out as its 4G network of choice. But in a keynote address Thursday at CTIA Wireless I.T. & Entertainment in San Francisco, an executive of Sprint's WiMax business, Xohm, sang a different tune.

"I think we spend entirely too much time talking about the Gs," said Atish Gude, senior vice president of mobile broadband operations at Sprint. Last week, the Radiocommunication Sector of the International Telecommunication Union certified WiMax as a 3G technology, providing a seal of approval many governments require for carriers to deploy it. Wider deployment generally means lower equipment prices, which helps service providers.

That's not to say the carrier no longer wants to differentiate WiMax. In his presentation, Gude played up the wide band of spectrum Xohm will be able to use, which he said will cut down on delays for individual users the same way a multilane freeway can move faster than a two-lane highway even when the speed limit is the same. In the real world, a lot of people want to use the network at the same time, he said.

But more important is the business model of the two networks, Gude said, characterizing the traditional cellular business as more closed and controlled, while Xohm's business will tap into the dynamics of the open Internet. The company is opening itself up to partners for application development as well as connected devices, he said. The best known of these deals, announced in July, was an agreement with Google Inc. to develop a variety of Internet-based services.

Sprint hopes a wide range of devices, including cameras, media players and in-car electronics, ultimately will connect to the WiMax network. Instead of Sprint stores, they will be sold in the most logical places for their device types, such as consumer electronics stores. The first devices to come for Xohm next year will be wireless cards for notebook PCs, which Gude expects to be sold in the computer departments of electronics stores.

The company will also have open APIs (application programming interfaces) for third parties to develop services to run on the network. As an example, Gude envisioned a video portal that users could navigate using the five buttons traditionally found on video players. Xohm will probably charge for some of what it offers to third parties, but its aim is not to stifle innovation, he said.

Sprint isn't getting out of its cellular business now that it's starting Xohm -- which it expects to reach 100 million U.S. residents by the end of 2008 -- but seems to be looking at it in a different light now.

"We are a content distribution industry," Gude said. It's just that for most of cellular's history, all the content has been user-generated and consisted of talking.

Norway Launches Turbo-3G

Norway Launches Turbo-3G

By launching Turbo-3G, Telenor is now strengthening its focus on Mobilt Bredbånd (Mobile Broadband). As early as by November, Norway's four largest cities will be covered - soon to be followed by six other cities. "Telenor's Turbo-3G will distinguish itself as having the best coverage, quality, and capacity", says Berit Kjøll, Division Director at Telenor.

From November on, Telenor will also offer Turbo-3G at the largest winter sport centres in Norway. Customers who use Telenor's Mobilt Bredbånd will also, in addition to Turbo-3G, have access to a growing number of Telenor Trådløse Soner (Telenor Wireless Zones).

"With Telenor's solutions for Mobilt Bredbånd, it is easy to use Internet services. When you use Internet services on your computer, you are automatically connected to the fastest network, whether it is via Turbo-3G or in a Trådløs Sone", says Berit Kjøll.

Turbo-3G provides speeds close to broadband level through the mobile network, making it easier and faster to surf the Internet and check your e-mail. From as early as January next year, Turbo-3G will be available in 10 cities.

With Mobilt Bredbånd you can watch TV, download music and audio books, use video conferences or surf Facebook - all on your mobile phone. You can also be online on your computer outside the home or whenever you are not at the office. Until now, when using their mobile network to connect to the Internet, people have often had to deal with slow downloading when wanting to use a simple service such as reading the newspaper online.

"Now, more and more people will find the quality and speed of the mobile network to be so good that you can take your broadband experience along wherever you go. Mobilt Bredbånd is an excellent supplement to your regular broadband connection. We are now in a new era of Mobilt Bredbånd, with better accessibility and user friendliness", says Berit Kjøll.
Turbo-3G is up to 10 times faster than regular 3G. With a USB modem and simple software, you are online with only a single click.

Turbo-3G can reach speeds of up to 3.6 Mbit/s, but the normal speed will be around 0.5-1.5 Mbit/S.

Telenor's new software for Mobilt Bredbånd (for business customers) includes functionality for seamless transitions between cable network, Trådløs Sone and the mobile network, without the customer having to turn the connection on or off. It also provides automatic reconnection if the connection is lost, for instance when driving through a tunnel or moving from one Trådløs Sone to another. Telenor is the only company in the market to offer this.

Telenor will first of all launch Turbo-3G in Oslo, Bergen, Stavanger (including Sandnes) and Trondheim, along with various winter sport centres in southern Norway. More than 17 winter sport centres will have access to Turbo-3G by November.

In the last few years, Norwegian people's computer habits have changed. Eight of ten PCs sold today are laptops, and all of these have built-in WLAN. More and more people use wireless networks and bring their computers along when they travel. Also on the increase is the use of network services such as blogging and MSN. Therefore, the importance of a proper broadband service for people constantly on the move has never been greater.

Ericsson Names Vestberg as Chief Financial Officer

Ericsson Names Vestberg as Chief Financial Officer

Ericsson AB, the world's largest maker of wireless networks, named Hans Vestberg chief financial officer to replace Karl-Henrik Sundstroem, nine days after saying profit and sales trailed its forecasts.

Vestberg, head of the global services unit, will take the position immediately, Ericsson said in a statement. Stockholm- based Ericsson said today net income fell 36 percent to 3.97 billion kronor ($619 million), the lowest in 3 1/2 years.

Ericsson shares tumbled 24 percent on Oct. 16 after Chief Executive Officer Carl-Henric Svanberg said earnings were hurt by lower demand for network upgrades in North America and Europe, and fourth-quarter revenue may decline. Svanberg had told investors last month that industry growth was ``strong.''

``This clearly illustrates the shortcomings in the internal reporting,'' said Thomas Langer, an analyst at WestLB in Dusseldorf, who has a ``hold'' rating on Ericsson shares. ``The management's swift reaction will work as a healthy shock to the organization. People will now realize that there were real internal problems.''

Ericsson shares fell as much as 0.48 krona, or 2.5 percent, to 18.68 kronor and traded at 18.90 kronor as of 3:27 p.m. in Stockholm.

``It will take some quarters of solid performance to get investors back and to improve the sentiment of the stock,'' said Jacob Pedersen, an analyst at Aabenraa, Denmark-based Sydbank who gives the shares a ``neutral'' recommendation.

Sundstroem's Departure

Svanberg said at the company's press conference today that Sundstroem had approached him asking to step down. ``He was disappointed with the third quarter. We can only regret that he steps down.'' Vestberg ``was a very natural choice,'' Svanberg said in an interview.

Vestberg, who will remain as head of the global services unit a replacement is found, has held various positions at Ericsson in China, Sweden, Chile and Brazil since 1991. He was the head of Ericsson Mexico between 2002 and 2003, and CFO North America and controller for the Americas from 2000 to 2002.

The executive was born in Hudiksvall, Sweden, in 1965 and is married with two children. Vestberg has a degree in business administration from the University of Uppsala, Sweden. He is also a member of the board of the Swedish handball association.

`Investor Credibility'

``We believe he is a suitable appointment with investor credibility,'' Kulbinder Garcha, an analyst at Credit Suisse in London, wrote in a note to investors. ``A new CFO, improving provisions disclosure, a less aggressive market share strategy as well as a commitment to improving forecasting trends are without doubt positives on a long-time view.''

Ericsson didn't get expected orders to upgrade AT&T Inc.'s wireless network in the U.S., Svanberg said last week.

``It will increase, but not this year,'' he said today about the U.S. order intake.

The company has won contracts for new networks in China and India that carry lower profit margins than upgrading existing networks in Europe and North America.

``So far we haven't lost any market share in China,'' Svanberg told analysts and investors on a conference call today.

Ericsson's announcement last week wiped out $14 billion of market value in one day, costing it the title of Sweden's largest publicly traded company, as clothing retailer Hennes & Mauritz AB overtook the network maker in terms of market value for the first time since July 2003. The slide in Ericsson's stock was the biggest in at least 17 years and it fell back to a level last seen in April 2005.

`Humble, Concerned and Disappointed.'

On the day, Svanberg said he was ``humble, concerned and disappointed.'' Today he said the first quarter next year could be the low-point in the current cycle of fewer orders to upgrade and expand networks.

The announcement followed a lowered sales forecast from Alcatel-Lucent SA, the biggest maker of telecommunications equipment. Alcatel-Lucent last month cut its 2007 sales estimate on fewer-than-anticipated orders in North America. Siemens AG has also said it's not satisfied with the performance of a telecommunications-equipment venture with Nokia Oyj.

``We will do more analysis of our business so that we better understand the dynamics,'' Svanberg said today. He declined to give more details.

Ericsson said sales gained 6 percent to 43.5 billion kronor in the third quarter. Analysts had predicted sales of 45.3 billion kronor, the average of 22 estimates before last week's announcement. Earnings per share fell to 0.25 krona from 0.39 krona a year earlier.

Cost Reductions

Svanberg became CEO in April 2003 and stepped up the pace of cost reductions, pulling the company back from near bankruptcy. Ericsson, founded in 1876 when Lars Magnus Ericsson opened a repair shop for telegraph equipment, slashed more than half its workforce between the end of 2000 and mid-2004 as customers reined in spending.

Under Svanberg, Ericsson has reorganized into three business divisions that sell fixed networks, wireless networks and multimedia applications such as Web-based television broadcasting.

VoIP Test Solutions Provider Empirix Unveils Hammer G5

VoIP Test Solutions Provider Empirix Unveils Hammer G5

VoIP network test solutions provider Empirix Inc. has announced availability of its Hammer G5 test platform, a new tool which combines the company’s Hammer FX and Hammer NXT products in a single solution used for testing the quality of IP-based voice signals traveling over fixed and mobile networks.

This software based test solution is used by service providers for testing network readiness as well as ongoing quality monitoring. Existing Hammer FX-IP and Hammer NXT-IP customers can upgrade to this new version seamlessly.

Among its many features the tool offers wideband codec support for VoIP, whether in fixed and wireless applications; full IMS SIP user equipment emulations; emulation packages for SIP, H.323, MGCP, NCS, Cisco Skinny, and QSIG; signaling and media transport over IPv4 and IPv6; signaling transport over TCP and UDP, as well as TLS for secure transport; dynamic call rate control for characterization of the system under test; and testing of Open Mobile Alliance Push to Talk (OMA PoC)-based applications; plus it is scalable from very low density feature tests to ultra-high density stackable load test scenarios.

"The Hammer G5 is Empirix's most significant test offering this year, and certainly the most impactful solution we have introduced in the last two years," said Duane Sword, vice president of product management at Empirix, in a press release. "By packaging functional and load testing into one unit with an easy-to-use interface, our customers will benefit from being able to switch from feature to performance testing seamlessly, and can execute a mix of complex features while applying realistic background load. The launch of Hammer G5 comes right at a time when the service providers are particularly concerned with service integrity and the impact of scale on quality, security and interoperability, and we're happy to be the company that, yet again, is leading the way on product advancements for specific customer needs."

Empirix, which has shipped well in excess of four million test ports, reports that it is planning to offer future upgrade packages for customers varying from software-only to hardware-accelerated for performance test, with no impact to any scripting and automation packages.

Empirix made news on TMCnet earlier this month when it announced that it had landed a major deal with Global Crossing, which has decided to use Empirix’s Hammer XMS to monitor and test the VoIP traffic on its impressive multi-continent VPN.

"This is a particularly exciting opportunity to see our partnership with Global Crossing enable yet another successful Hammer XMS implementation," Sword said in a press release. "Global Crossing understands the tremendous impact that consistent service quality can have worldwide. By applying our VoIP monitoring solution, the company has taken a strong, proactive approach to ensuring its customers' quality needs are always met by solving issues before the customer is even aware."

Alfa Group buys AFM's 51.9 percent shares

Alfa Group buys AFM’s 51.9 percent shares

Turkish cinema company AFM sold more than 50 percent of its shares to the Velios Ltd., a subsidiary of Russian Alfa Group Consortium Tuesday evening. The consortium is known in Turkey for its investment on Turkish GSM operator Turkcell. The estimated price of the shares is to be around $28.5 million, however, the final price will be set after closing. This led the previous owners of the company, Akdemir family and AIG Blue Voyage Fund L.P., to sell all their shares except for the 10 percent belonging to Ahmet Adnan Akdemir, AFM founder. A statement made to the Istanbul Stock Exchange (IMKB) said that 51.9 percent of AFM shares (owned by AIG Blue Voyage Fund L.P., Yalçın Selgur, Mehmet Berent Akdemir, M. Sedat Akdemir, Fatma Füsun Akdemir, Ahmet Adnan Akdemir and Yusuf Agah Tansev) were sold to Velios Ltd. for $28.5 million.

Company's market value

“The market value of the company is around $59 million but for the deal we calculated it to be $55 million. $28.5 million is not the final price, it may change after closing agreements,” CEO Akdemir said yesterday. Ahmet Adnan Akdemir remained a shareholder of the company with 10 percent. “I am also going to remain in his position as the CEO of AFM Sinemacılık for at least two more years,” he added.

The deal also included an optional arrangement providing that Ahmet Adnan Akdemir's remaining shares will not be able to purchased within a year but later they will also be open to a sales agreement between two parties.

Alfa Group is a Russian consortium that is operating on many different business areas, including financial services, oil and gas production, technology, retail trade, telecommunications and media. The consortium is known in Turkey for its investment on Turkish GSM operator Turkcell. As of April 2007, the group together with its telecommunications subsidiary Altimo holds 27 percent of Turkcell shares.

AFM is Turkey's nationwide largest cinema circuit with 183 screens around the country and the first and only entertainment company listed in İMKB since October 2004. Close to 38 percent of the company shares are offered publicly and 90 percent of these publicly offered shares are owned by foreign firms such as Morgan Stanley.BOX BOX BOX

AFM to invest more in Turkey

AFM opened its latest cinema hall in İstinye Park yesterday. Built in six months the hall cost $7 million. “İstinye Park AFM is the only cinema hall in the world that includes high definition THX, three dimensional IMAX and very high resolution Sony 4K technologies at the same time. We spent $10 million in total to build the hall and bring these technologies to Turkey,” said Ahmet Adnan Akdemir, CEO of the AFM Uluslararası Film Prodüksiyon. "The financing of the investment was provided by bank loans, leasing agreements and the fixed assets of our company. We're expecting the return of this $10 million in five years," he added.

“We'll change the understanding of cinema in Turkey,” Akdemir said. “Our second plan is to air sports games and big concerts on our cinema screens.” AFM is to continue investing in both renewing its existing facilities and in opening new halls around Turkey.