Six million lines now unbundled in U.K.
The progress of unbundling telephone lines in the UK has reached a significant milestone with six million lines now out of BT's hands. Local Loop Unbundling (LLU) is a process that gives other communications providers the ability to use BT's copper telephone lines to offer broadband and telephone services without having to pay wholesale charges to BT. This means that ISPs such as Sky and TalkTalk can offer packages with significantly reduced line rental charges, for example, and higher speeds than BT or BT-based services. Ed Richards, Ofcom's chief executive, said: "In just four years unbundling has gone from a flicker on the dial to a major competitive force in telecoms. This has delivered the dual benefits of driving up broadband take-up and driving down prices." Ofcom reckons that consumers were paying on average £23.30 a month, excluding VAT, for a broadband service delivered over a copper phone line in the last quarter of 2005, but since the introduction of LLU, that figure is now closer to £13.61 excluding VAT. BT set up a division known as Openreach to look after LLU in 2005, but the Office of the Telecoms Adjudicator (OTA), the body tasked with overseeing the process, was recently critical of Openreach's progress. According to the Office of the Telecoms Adjudicator (OTA) "a number of issues remain outstanding that should have been closed down some time ago", despite the landmark figure having been reached.
11 Ağu 2009
How the Mobile Internet can be Realized through New Technologies & Applications
How the Mobile Internet can be Realized through New Technologies & Applications
Siavash(Intel) asks, "Mobile WiMAX is available today, why not use it"? He concludes, "When LTE becomes available, Intel will definitely embrace it, but we will not wait for that at the expense of WiMAX since this will only delay mobile Internet further into the future."
Introduction
Siavash Alamouti(Intel) has stated that mobile broadband needs to evolve from its current primitive state (a packet overlay of a cellular TDM network), to a wireless broadband network that can accommodate much higher bandwidth per user and overall traffic capacity.
A network optimized for mobile voice cannot be "upgraded" to handle high numbers of high bandwidth mobile Internet users that access rich multi-media content or are uploading/ downloading large video and multi-media files. The following graphic depicts the mismatch between requirements of today's voice oriented mobile networks and tomorrow's mobile broadband Internet.To achieve acceptable service levels, more spectrum is needed along with higher capacity backhaul and a different network architecture. Alamouti believes that the mobile Internet requires a technology revolution to accommodate multi-Mbps subscriber connections from many simultaneous users. Clearly, the more bandwidth available per user, the more people benefit from the mobile internet, assuming of course that the service is reasonably priced (which it's not on 3G networks).To obtain a low cost per bit, a much higher level of spectrum efficiency is needed than can be achieved by 3G or 3.5G networks.
All operators are now in agreement that 4G networks will be characterized by OFDM, MIMO, and all IP architecture. Mobile WiMAX has these features now; LTE will once it's deployed. Here's an illustration of the timeline envisioned for the mobile broadband Internet to be realized:
New 4G Applications & Services Attract More Subscribers
Here are some examples of new innovative mobile Internet applications and value added services (mobile network providers collaborating with application service providers):- A smart camera uploads photos to FLICKR via a mobile broadband network just after the photos are taken. FLICKR then manages the on-line photo album for designated friends or family members that were permitted access. The mobile network operator and FLICKR would share revenue equitably so that pricing would be attractive to the subscriber. - Location Based Service (LBS) combined with GPS. In this scenario, a subscriber searches the Internet for a leather jacket. The Mobile Internet Device (MID) advertises its location to retail merchants that stock that type of garment. Retail merchants receiving the broadcasted message have previously agreed to a revenue sharing arrangement with the mobile network operator. The merchants nearby that have the garment in stock are seen on the MID's display in order of closest distance. - A pager messenger service. In this case, the network maintains a list of the people permitted to send electronic messages to a mobile subscriber. When any of those people send a message to the subscriber, the network "wakes up" the MID and displays the message title, providing a richer service than SMS with more efficiency than contemporary Internet services using Yahoo Messenger on a MID.- Subscription based mobile video.
A user interested in a particular news program or TV channel subscribes via the mobile operator, who guarantees QOS for that channel or program.These are only some obvious examples, with many other applications and value added services that haven't even been conceived. According to Siavash, once the mobile Internet is enabled, these applications will become pervasive.Editors Note: To read about more innovative and disruptive 4G applications, please see interview part II with Jose Puthenkulam of Intel.Major Performance & Feature Upgrades Require New 4G TechnologiesSiavash lists the following key performance characteristics and features for 4G networks:- Higher peak rates and average sector throughput - Lower access and handover latency (<10> 4x better cell edge throughput) - Higher mobility (up to 500 km/hr) - Better coverage area with no signal drop- outs- Larger VoIP capacity - Enhanced broadcast and multicast services - Enhanced location based services - Deployment flexibility Technology Enablers for the Mobile Internet include:- Higher order single and multi user MIMO Techniques (4x4)- Integrated Relay- Interference management- Standards-based techniques for multi-radio coexistence- Multi-carrier (multi-channel) support- Self organization and optimization, AKA as Self Organizing Networks (SON)While most of these technology enablers are well beyond the scope and depth of this article, we'll briefly describe a few of them.1. Interference ProblemMobile WiMAX and other mobile broadband technologies support single frequency reuse throughout a given geographical area. All cells/sectors operate on one frequency channel to maximize spectrum utilization. There is often heavy interference in common frequency reuse, resulting in users at the cell edge to suffer from low connection quality. High power interferers characterize the Downlink (DL), with a limited number of interferers, e.g. maximum of eight in the IEEE 802.16m draft standard. Interference estimation- using DL preambles - may be an effective control mechanism. There are more potential interferers on the Uplink (UL) - on the order of 100s. These are low power interferers, where interference estimation is harder and must be dynamic. 2. Multi-radio co-existenceA wide variety of different radio types may exist in a given geographical area and these must co-exist without interfering with one another. This is depicted in the graphic below:3. Multi-carrier supportNetwork operators have spectrum in different frequency bands with different bandwidths. Next generation broadband wireless systems should provide flexibility to aggregate physically non-contiguous and non-uniform channels into a single radio bearer channel. This will aid in achieving efficient use of spectrum and incremental scaling of the system bandwidth. The resulting system bandwidth would no longer be limited by the size of a single radio channel. The figure below illustrates what layers and protocols are needed to achieve multi-carrier support:4. Self Organization and OptimizationIn addition to the visible features and technology upgrades required for 4G, Siavash sees several internal network control mechanisms that will be required. These will not likely be subject to standardization, but will have to be worked out between the mobile operator and network infrastructure equipment vendors. He says 4G networks should support:- Real plug and play installation of network nodes- Self-configuration of the initial installation, including the update of neighbor nodes and neighbor cells - Fast reconfiguration and compensation in failure cases- Support automated or autonomous optimization of network performance - Self-optimization of service availability, QoS, network efficiency and throughputIs LTE the Holy Grail?With the cellular industry now strongly backing LTE, Siavash asserts that LTE is a positive development but the timing is too late. He believes the cellular industry is using LTE as a way of slowing down Mobile WiMAX and is not committed to providing the capabilities of the technology near-term - even the name itself is an indication. How can we expect a technology called "Long-Term" be available in short-term? Would you deposit your savings in a long-term account when you know you need to access it today? Of course not! That is why the Mobile WiMAX industry is not stopping its work and waiting for LTE. As a result, Siavash believes that LTE will be much "Longer Term" for deployment than most pundits expect. Another important issue is that LTE is not an Evolution, but rather a "forklift upgrade" - with a new RAN, new Base Stations, new backhaul, new packet core, new network management equipment, and new spectrum all required for deployment. Mobile operators are spending billions of dollars on HSPA development today and it is unlikely that they will start investing in new spectrum and infrastructure to deploy LTE in the near future. With the exception of Verizon in the US, there are no firm dates given by mobile operators on availability of LTE services - and Verizon's end of 2010 date is for fixed LTE service- not for mobile LTE deployment.LTE modem pricing may also be an issue, if one extrapolates from already expensive 3G modem pricing. 3G-HSPA modems are priced two to three times higher than a Mobile WiMAX modems, but only deliver a peak rate of 14 M bit/sec vs. 40 M bit/sec for WiMAX. (HSPA's average throughput per sector was said to be 3-5 Mbit/sec by Alamouti). With LTE offering much higher peak rates than 3G, LTE modems will likely cost quite a bit more and therefore will be unaffordable for many potential mobile Internet subscribers.The cellular industry has always underestimated future data rate requirement. That's why 3G only targeted 100's of Kbits/sec data rate. "It's a stagnant view of user demand for mobile broadband," says Siavash.
Conclusions
Alamouti states, "As necessity is the mother of invention, WiMAX is the father of LTE." Mobile WiMAX is the first deployable wireless broadband technology based on OFDMA and MIMO. It also features a flat, all IP networks that includes technology ingredients to enable a new service paradigms and business models for truly open Internet. He believes the cellular industry has not delivered to the pent up consumer demand for mobile Internet. "We require a short-term revolution not a long-term evolution". He believes the battle between radio technologies need to end and the industry needs to bring affordable Internet access to the consumer in order to stimulate the economy globally. Siavash asks, "Mobile WiMAX is available today, why not use it"? He concludes, "When LTE becomes available, Intel will definitely embrace it, but we will not wait for that at the expense of WiMAX since this will only delay mobile Internet further into the future."
Siavash(Intel) asks, "Mobile WiMAX is available today, why not use it"? He concludes, "When LTE becomes available, Intel will definitely embrace it, but we will not wait for that at the expense of WiMAX since this will only delay mobile Internet further into the future."
Introduction
Siavash Alamouti(Intel) has stated that mobile broadband needs to evolve from its current primitive state (a packet overlay of a cellular TDM network), to a wireless broadband network that can accommodate much higher bandwidth per user and overall traffic capacity.
A network optimized for mobile voice cannot be "upgraded" to handle high numbers of high bandwidth mobile Internet users that access rich multi-media content or are uploading/ downloading large video and multi-media files. The following graphic depicts the mismatch between requirements of today's voice oriented mobile networks and tomorrow's mobile broadband Internet.To achieve acceptable service levels, more spectrum is needed along with higher capacity backhaul and a different network architecture. Alamouti believes that the mobile Internet requires a technology revolution to accommodate multi-Mbps subscriber connections from many simultaneous users. Clearly, the more bandwidth available per user, the more people benefit from the mobile internet, assuming of course that the service is reasonably priced (which it's not on 3G networks).To obtain a low cost per bit, a much higher level of spectrum efficiency is needed than can be achieved by 3G or 3.5G networks.
All operators are now in agreement that 4G networks will be characterized by OFDM, MIMO, and all IP architecture. Mobile WiMAX has these features now; LTE will once it's deployed. Here's an illustration of the timeline envisioned for the mobile broadband Internet to be realized:
New 4G Applications & Services Attract More Subscribers
Here are some examples of new innovative mobile Internet applications and value added services (mobile network providers collaborating with application service providers):- A smart camera uploads photos to FLICKR via a mobile broadband network just after the photos are taken. FLICKR then manages the on-line photo album for designated friends or family members that were permitted access. The mobile network operator and FLICKR would share revenue equitably so that pricing would be attractive to the subscriber. - Location Based Service (LBS) combined with GPS. In this scenario, a subscriber searches the Internet for a leather jacket. The Mobile Internet Device (MID) advertises its location to retail merchants that stock that type of garment. Retail merchants receiving the broadcasted message have previously agreed to a revenue sharing arrangement with the mobile network operator. The merchants nearby that have the garment in stock are seen on the MID's display in order of closest distance. - A pager messenger service. In this case, the network maintains a list of the people permitted to send electronic messages to a mobile subscriber. When any of those people send a message to the subscriber, the network "wakes up" the MID and displays the message title, providing a richer service than SMS with more efficiency than contemporary Internet services using Yahoo Messenger on a MID.- Subscription based mobile video.
A user interested in a particular news program or TV channel subscribes via the mobile operator, who guarantees QOS for that channel or program.These are only some obvious examples, with many other applications and value added services that haven't even been conceived. According to Siavash, once the mobile Internet is enabled, these applications will become pervasive.Editors Note: To read about more innovative and disruptive 4G applications, please see interview part II with Jose Puthenkulam of Intel.Major Performance & Feature Upgrades Require New 4G TechnologiesSiavash lists the following key performance characteristics and features for 4G networks:- Higher peak rates and average sector throughput - Lower access and handover latency (<10> 4x better cell edge throughput) - Higher mobility (up to 500 km/hr) - Better coverage area with no signal drop- outs- Larger VoIP capacity - Enhanced broadcast and multicast services - Enhanced location based services - Deployment flexibility Technology Enablers for the Mobile Internet include:- Higher order single and multi user MIMO Techniques (4x4)- Integrated Relay- Interference management- Standards-based techniques for multi-radio coexistence- Multi-carrier (multi-channel) support- Self organization and optimization, AKA as Self Organizing Networks (SON)While most of these technology enablers are well beyond the scope and depth of this article, we'll briefly describe a few of them.1. Interference ProblemMobile WiMAX and other mobile broadband technologies support single frequency reuse throughout a given geographical area. All cells/sectors operate on one frequency channel to maximize spectrum utilization. There is often heavy interference in common frequency reuse, resulting in users at the cell edge to suffer from low connection quality. High power interferers characterize the Downlink (DL), with a limited number of interferers, e.g. maximum of eight in the IEEE 802.16m draft standard. Interference estimation- using DL preambles - may be an effective control mechanism. There are more potential interferers on the Uplink (UL) - on the order of 100s. These are low power interferers, where interference estimation is harder and must be dynamic. 2. Multi-radio co-existenceA wide variety of different radio types may exist in a given geographical area and these must co-exist without interfering with one another. This is depicted in the graphic below:3. Multi-carrier supportNetwork operators have spectrum in different frequency bands with different bandwidths. Next generation broadband wireless systems should provide flexibility to aggregate physically non-contiguous and non-uniform channels into a single radio bearer channel. This will aid in achieving efficient use of spectrum and incremental scaling of the system bandwidth. The resulting system bandwidth would no longer be limited by the size of a single radio channel. The figure below illustrates what layers and protocols are needed to achieve multi-carrier support:4. Self Organization and OptimizationIn addition to the visible features and technology upgrades required for 4G, Siavash sees several internal network control mechanisms that will be required. These will not likely be subject to standardization, but will have to be worked out between the mobile operator and network infrastructure equipment vendors. He says 4G networks should support:- Real plug and play installation of network nodes- Self-configuration of the initial installation, including the update of neighbor nodes and neighbor cells - Fast reconfiguration and compensation in failure cases- Support automated or autonomous optimization of network performance - Self-optimization of service availability, QoS, network efficiency and throughputIs LTE the Holy Grail?With the cellular industry now strongly backing LTE, Siavash asserts that LTE is a positive development but the timing is too late. He believes the cellular industry is using LTE as a way of slowing down Mobile WiMAX and is not committed to providing the capabilities of the technology near-term - even the name itself is an indication. How can we expect a technology called "Long-Term" be available in short-term? Would you deposit your savings in a long-term account when you know you need to access it today? Of course not! That is why the Mobile WiMAX industry is not stopping its work and waiting for LTE. As a result, Siavash believes that LTE will be much "Longer Term" for deployment than most pundits expect. Another important issue is that LTE is not an Evolution, but rather a "forklift upgrade" - with a new RAN, new Base Stations, new backhaul, new packet core, new network management equipment, and new spectrum all required for deployment. Mobile operators are spending billions of dollars on HSPA development today and it is unlikely that they will start investing in new spectrum and infrastructure to deploy LTE in the near future. With the exception of Verizon in the US, there are no firm dates given by mobile operators on availability of LTE services - and Verizon's end of 2010 date is for fixed LTE service- not for mobile LTE deployment.LTE modem pricing may also be an issue, if one extrapolates from already expensive 3G modem pricing. 3G-HSPA modems are priced two to three times higher than a Mobile WiMAX modems, but only deliver a peak rate of 14 M bit/sec vs. 40 M bit/sec for WiMAX. (HSPA's average throughput per sector was said to be 3-5 Mbit/sec by Alamouti). With LTE offering much higher peak rates than 3G, LTE modems will likely cost quite a bit more and therefore will be unaffordable for many potential mobile Internet subscribers.The cellular industry has always underestimated future data rate requirement. That's why 3G only targeted 100's of Kbits/sec data rate. "It's a stagnant view of user demand for mobile broadband," says Siavash.
Conclusions
Alamouti states, "As necessity is the mother of invention, WiMAX is the father of LTE." Mobile WiMAX is the first deployable wireless broadband technology based on OFDMA and MIMO. It also features a flat, all IP networks that includes technology ingredients to enable a new service paradigms and business models for truly open Internet. He believes the cellular industry has not delivered to the pent up consumer demand for mobile Internet. "We require a short-term revolution not a long-term evolution". He believes the battle between radio technologies need to end and the industry needs to bring affordable Internet access to the consumer in order to stimulate the economy globally. Siavash asks, "Mobile WiMAX is available today, why not use it"? He concludes, "When LTE becomes available, Intel will definitely embrace it, but we will not wait for that at the expense of WiMAX since this will only delay mobile Internet further into the future."
Google Voice coming to iPhone as web app
Google Voice coming to iPhone as web app
by Marin Perez
Apple iPhone users may soon have an official way to use Google Voice, as Google is working on a Web application for its calling service, according to an unconfirmed report on David Pogue's blog on The New York Times's Web site.
Google Voice enables users to funnel multiple numbers to a single number, send free text messages, and make inexpensive long-distance calls. The service is not a VOIP app like Skype for iPhone, so users still have to use cellular minutes to make and receive calls.
Apple pulled a Google Voice app from the App Store a few weeks ago, saying the service duplicated functionalities of the iPhone, which is against Apple's developer policies. The move garnered the attention of the Federal Communications Commission, which sent letters to AT&T, Apple, and Google seeking an explanation for why the app was blocked.
Google has not confirmed it is working on a Web app version, but the Times report indicates Google Voice for iPhone will be a specialized Web page that should retain the functionality of a native app. The Web app will enable users to send SMS messages, as well as make and receive calls from their Google Voice number. Users will also be able to add a Google Voice bookmark to their home screen, so it will look and feel like a native app, the report said.
"Apple did not approve the Google Voice application we submitted six weeks ago to the Apple App Store," a Google spokesperson said in an e-mailed statement. "We will continue to work to bring our services to iPhone users, for example by taking advantage of advances in mobile browsers." Google did something similar with its location-sharing Google Latitude service, which was rejected from the App Store in order to avoid confusion with Maps on the iPhone. Google released Latitude for the iPhone as a Web app in July, but some users have complained the Web version is not as good as the native version for competing platforms like Android, Blackberry, S60, and Windows Mobile.
by Marin Perez
Apple iPhone users may soon have an official way to use Google Voice, as Google is working on a Web application for its calling service, according to an unconfirmed report on David Pogue's blog on The New York Times's Web site.
Google Voice enables users to funnel multiple numbers to a single number, send free text messages, and make inexpensive long-distance calls. The service is not a VOIP app like Skype for iPhone, so users still have to use cellular minutes to make and receive calls.
Apple pulled a Google Voice app from the App Store a few weeks ago, saying the service duplicated functionalities of the iPhone, which is against Apple's developer policies. The move garnered the attention of the Federal Communications Commission, which sent letters to AT&T, Apple, and Google seeking an explanation for why the app was blocked.
Google has not confirmed it is working on a Web app version, but the Times report indicates Google Voice for iPhone will be a specialized Web page that should retain the functionality of a native app. The Web app will enable users to send SMS messages, as well as make and receive calls from their Google Voice number. Users will also be able to add a Google Voice bookmark to their home screen, so it will look and feel like a native app, the report said.
"Apple did not approve the Google Voice application we submitted six weeks ago to the Apple App Store," a Google spokesperson said in an e-mailed statement. "We will continue to work to bring our services to iPhone users, for example by taking advantage of advances in mobile browsers." Google did something similar with its location-sharing Google Latitude service, which was rejected from the App Store in order to avoid confusion with Maps on the iPhone. Google released Latitude for the iPhone as a Web app in July, but some users have complained the Web version is not as good as the native version for competing platforms like Android, Blackberry, S60, and Windows Mobile.
Alcatel-Lucent Shanghai Reduces Work Days Alcatel-Lucent's China company
Alcatel-Lucent Shanghai Reduces Work Days Alcatel-Lucent's China company
Alcatel-Lucent Shanghai Bell announced last Thursday that it will add two additional non-paid holidays to the work calendar every month for the rest of 2009, reports ChinaByte. According to the report, salaries will now be calculated on a basis of 19.75 paid work days per month, down from 21.75 days, for all employees including executives
Alcatel-Lucent Shanghai Bell announced last Thursday that it will add two additional non-paid holidays to the work calendar every month for the rest of 2009, reports ChinaByte. According to the report, salaries will now be calculated on a basis of 19.75 paid work days per month, down from 21.75 days, for all employees including executives
114-year-old Nortel’s CEO Zafirovski Resigns as Asset Sales Near End
114-year-old Nortel’s CEO Zafirovski Resigns as Asset Sales Near End
by Kelly Riddell and Hugo Miller
Nortel Networks Corp., the Canadian phone-equipment maker in bankruptcy protection, said Chief Executive Officer Mike Zafirovski stepped down today as efforts to sell off the company’s businesses wind down. The company’s business units will now report to Chief Restructuring Officer Pavi Binning, Nortel said today in a statement.
Zafirovski, 55, who joined Toronto-based Nortel in November 2005, worked to cut costs and shift its focus to new technologies. He had to cope with slumping telecommunications spending and the loss of customers to competitors such as Cisco Systems Inc. Nortel filed for Chapter 11 bankruptcy protection in January after losses of almost $7 billion over two years.
“He inherited a difficult situation,” said Ashok Kumar, an analyst at Collins Stewart LLC in San Francisco. “It’s probably the optimal outcome: finding the right home for the assets and employees, and moving on.”
The company also reported its second-quarter loss widened to $274 million, or 55 cents a share, from $113 million, or 23 cents, a year earlier. The loss included reorganization costs of $130 million. Sales fell 25 percent to $1.97 billion.
Nortel was little changed at 5 cents in over-the-counter trading today. It has lost almost all of its value in the past year.
Asset Sales
The company plans to give accounting firm Ernst & Young LLP, its Canadian monitor during bankruptcy proceedings, an enhanced oversight role. It will also name a principal officer for the U.S., who will work with a committee of Nortel’s creditors. Both are subject to court approval.
The 114-year-old company won approval last month to sell its primary wireless carrier business for $1.13 billion to Ericsson AB, the world’s largest maker of wireless networks.
Nortel’s biggest customers, including Verizon Wireless, forced the sale of the unit after voicing concerns about buying new technology because of Nortel’s financial troubles, Chief Strategy Officer George Riedel said in June.
Earlier this month, Nortel got court permission to sell its enterprise solutions unit at a Sept. 11 auction. Phone-equipment maker Avaya Inc. plans to make the opening bid of $475 million. Customers of the unit, which has about 7,800 employees, include retailers and health-care providers. Nortel has at least three bidders lined up, Zafirovski said today in a phone interview.
The company said today it plans to give accounting firm Ernst & Young LLP, its Canadian monitor during the bankruptcy proceedings, an enhanced oversight role. Nortel will name a principal officer in the U.S., who will work with its creditors there. Both appointments are subject to court approval.
Turnaround Guy
Zafirovski joined Nortel after accounting fraud led to the ouster of 10 executives including former CEO Frank Dunn. Zafirovski built his reputation as a turnaround guy at Motorola Inc., where as president and chief operating officer he helped revive its wireless unit with the top-selling Razr phone.
“Mike made a commitment to see the process through the stabilization of the company, sale of its largest assets and the right plans and people to continue operating our business,” Chairman Harry Pearce said in the statement. “He has done so.”
Nortel’s gear is largely based on code division multiple access, or CDMA, networks, which are found mostly in the U.S. and Canada. Demand dropped as customers moved to faster systems available more broadly around the world. Carriers are now testing 4G, or fourth-generation, standards such as LTE, or long-term evolution.
The company was denied aid from the Canadian government that may have helped avert bankruptcy and safeguard severance pay and pensions, Zafirovski told Canadian lawmakers in June.
Zafirovski said in the interview today Nortel expects to have bidding arrangements in place for all its businesses by the end of September.
by Kelly Riddell and Hugo Miller
Nortel Networks Corp., the Canadian phone-equipment maker in bankruptcy protection, said Chief Executive Officer Mike Zafirovski stepped down today as efforts to sell off the company’s businesses wind down. The company’s business units will now report to Chief Restructuring Officer Pavi Binning, Nortel said today in a statement.
Zafirovski, 55, who joined Toronto-based Nortel in November 2005, worked to cut costs and shift its focus to new technologies. He had to cope with slumping telecommunications spending and the loss of customers to competitors such as Cisco Systems Inc. Nortel filed for Chapter 11 bankruptcy protection in January after losses of almost $7 billion over two years.
“He inherited a difficult situation,” said Ashok Kumar, an analyst at Collins Stewart LLC in San Francisco. “It’s probably the optimal outcome: finding the right home for the assets and employees, and moving on.”
The company also reported its second-quarter loss widened to $274 million, or 55 cents a share, from $113 million, or 23 cents, a year earlier. The loss included reorganization costs of $130 million. Sales fell 25 percent to $1.97 billion.
Nortel was little changed at 5 cents in over-the-counter trading today. It has lost almost all of its value in the past year.
Asset Sales
The company plans to give accounting firm Ernst & Young LLP, its Canadian monitor during bankruptcy proceedings, an enhanced oversight role. It will also name a principal officer for the U.S., who will work with a committee of Nortel’s creditors. Both are subject to court approval.
The 114-year-old company won approval last month to sell its primary wireless carrier business for $1.13 billion to Ericsson AB, the world’s largest maker of wireless networks.
Nortel’s biggest customers, including Verizon Wireless, forced the sale of the unit after voicing concerns about buying new technology because of Nortel’s financial troubles, Chief Strategy Officer George Riedel said in June.
Earlier this month, Nortel got court permission to sell its enterprise solutions unit at a Sept. 11 auction. Phone-equipment maker Avaya Inc. plans to make the opening bid of $475 million. Customers of the unit, which has about 7,800 employees, include retailers and health-care providers. Nortel has at least three bidders lined up, Zafirovski said today in a phone interview.
The company said today it plans to give accounting firm Ernst & Young LLP, its Canadian monitor during the bankruptcy proceedings, an enhanced oversight role. Nortel will name a principal officer in the U.S., who will work with its creditors there. Both appointments are subject to court approval.
Turnaround Guy
Zafirovski joined Nortel after accounting fraud led to the ouster of 10 executives including former CEO Frank Dunn. Zafirovski built his reputation as a turnaround guy at Motorola Inc., where as president and chief operating officer he helped revive its wireless unit with the top-selling Razr phone.
“Mike made a commitment to see the process through the stabilization of the company, sale of its largest assets and the right plans and people to continue operating our business,” Chairman Harry Pearce said in the statement. “He has done so.”
Nortel’s gear is largely based on code division multiple access, or CDMA, networks, which are found mostly in the U.S. and Canada. Demand dropped as customers moved to faster systems available more broadly around the world. Carriers are now testing 4G, or fourth-generation, standards such as LTE, or long-term evolution.
The company was denied aid from the Canadian government that may have helped avert bankruptcy and safeguard severance pay and pensions, Zafirovski told Canadian lawmakers in June.
Zafirovski said in the interview today Nortel expects to have bidding arrangements in place for all its businesses by the end of September.
6 Ağu 2009
Google buys video technology firm
Google buys video technology firm
Google has announced a deal to buy On2 Technologies, which provides technology that should help improve video quality on the internet search engine. The deal for $106.5m (£62.7) should be concluded later this year, subject to On2 shareholder approval. On2's technology helps shrink video files, allowing high definition images to be delivered over the internet. "We believe high quality video should be part of the web platform," said Sundar Pichai at Google. "We are committed to innovation in video quality on the web, and we believe that On2's team and technology will help us further that goal," he added. Current On2 customers include Adobe, Skype, Nokia and Sony. Google is the undisputed leader in internet search engines. Last week, technology giant Microsoft and website Yahoo announced a tie-up designed to break Google's stranglehold.
Google has announced a deal to buy On2 Technologies, which provides technology that should help improve video quality on the internet search engine. The deal for $106.5m (£62.7) should be concluded later this year, subject to On2 shareholder approval. On2's technology helps shrink video files, allowing high definition images to be delivered over the internet. "We believe high quality video should be part of the web platform," said Sundar Pichai at Google. "We are committed to innovation in video quality on the web, and we believe that On2's team and technology will help us further that goal," he added. Current On2 customers include Adobe, Skype, Nokia and Sony. Google is the undisputed leader in internet search engines. Last week, technology giant Microsoft and website Yahoo announced a tie-up designed to break Google's stranglehold.
Cisco reports a 46% drop in quarterly profit
Cisco reports a 46% drop in quarterly profit
Cisco reported a fiscal fourth-quarter profit of $1.1 billion, or 19 cents a share, compared with a profit of $2 billion, or 33 cents a share for the year-earlier period. Revenue was $8.5 billion, down from $10.4 billion for the same quarter last year. Adjusted income was 31 cents a share. Analysts had expected the San Jose, Calif.-based networking gear maker to report earnings of 29 cents a share, on revenue of $8.5 billion, according to data from FactSet Reseach.
Cisco reported a fiscal fourth-quarter profit of $1.1 billion, or 19 cents a share, compared with a profit of $2 billion, or 33 cents a share for the year-earlier period. Revenue was $8.5 billion, down from $10.4 billion for the same quarter last year. Adjusted income was 31 cents a share. Analysts had expected the San Jose, Calif.-based networking gear maker to report earnings of 29 cents a share, on revenue of $8.5 billion, according to data from FactSet Reseach.
Turkcell Belarus unit receives 3G frequencies
Turkcell Belarus unit receives 3G frequencies
Turkcell's Belarussian unit has been allocated frequencies to use for its third generation technology and expects to receive a 3G licence from the government soon, a spokeswoman said on Friday. Turkcell is the first mobile phone operator in Belarus to receive 3G frequencies. It entered the Belarussian market last year, with the purchase of BEST for $500 million. Telekom Austria also operates in Belarus. "We should now expect to receive the relevant licences and after that we can start work. If the regulator approves it, we expect to receive the licence by the end of September," a Turkcell spokeswoman said. Turkcell is the third largest operator in Belarus with just over half a million subscribers from a population of 10 million. MTS, half-owned by Russia's MTS, is the largest operator, followed by Telekom Austrua.
Turkcell's Belarussian unit has been allocated frequencies to use for its third generation technology and expects to receive a 3G licence from the government soon, a spokeswoman said on Friday. Turkcell is the first mobile phone operator in Belarus to receive 3G frequencies. It entered the Belarussian market last year, with the purchase of BEST for $500 million. Telekom Austria also operates in Belarus. "We should now expect to receive the relevant licences and after that we can start work. If the regulator approves it, we expect to receive the licence by the end of September," a Turkcell spokeswoman said. Turkcell is the third largest operator in Belarus with just over half a million subscribers from a population of 10 million. MTS, half-owned by Russia's MTS, is the largest operator, followed by Telekom Austrua.
Turkcell Q2 revenue up 1.1%, EBITDA down 10% y-o-y
Turkcell Q2 revenue up 1.1%, EBITDA down 10% y-o-y
by Alexandra Hudson
Turkcell, Turkey's leading mobile phone company on Thursday: * posts Q2 net profit of $245.8 million down 42 pct * posts Q2 revenue of $1.398 billion, down 20 pct * posts Q2 EBITDA of $448.8 million, down 30 pct * Net profit was seen at $320 million according to the average forecast in a Reuters poll of 9 analysts.
Mobile phone operator Turkcell posted a 42 percent fall in second-quarter net profit to $245.8 million, blaming a weaker lira and provisions set aside for litigation which impacted net profit by 123 million lira ($84.4 million).
The average forecast in a Reuters poll of nine analysts was for net profit of $320 million, on sales of $1.389 billion.
Turkey's telecoms operators have challenged each other through the courts, amid a competitive environment, and have also challenged legislative changes.
The provisions had been made for pending legal cases relating to the period 2003-2005, the company said.
Sales amounted to $1.398 billion, Turkcell said in a statement early on Thursday, slightly beating forecasts and posting a rise of 9 percent from the first three months of 2009, although they were down 20 percent on the year.
ARPU (average monthly revenue per user), rose to $11.8 in the second quarter, up from $10.4 in the previous quarter and slightly above a consensus forecast for $11.6.
Turkcell had warned early in 2009 its performance would be adversely affected by the poor macroeconomic environment in Turkey, where the economy contracted a record 13.8 percent in the first quarter of the year, and is seen falling around 5 percent in 2009 as a whole.
Turkcell's Ukrainian unit Astelit and betting business Inteltek reported weaker results that weighed on performance. Astelit was hit by a gross domestic product drop in Ukraine of 20 percent and by devaluation, while Inteltek faced an excess payout.
Turkey's economic downturn, which has seen people drastically reduce their phone use, and multiple SIM users discard extra cards in favour of one operator, has coincided with a period of new market liberalisation in Turkey, intensifying competition to an unprecedented degree.
The company said this intensified in the second quarter and mobile penetration in Turkey fell to 88 percent in the period down from 90 percent in the second quarter.
But Turkcell said it had a net subscriber loss of only 42,750 whereas the market contracted by approximately 800,000.
Turkcell is the country's market leader with a subscriber share of some 56 percent, but it has needed increasingly aggressive pricing and marketing to defend its position.
Analysts are hopeful that new 3G services launched in the country in July will see mobile phone operators ease their price war, to compete on new technology instead.
Of 10 analysts that cover Turkcell, six rate it a "hold," one an "underperform," and three a "buy" or an "outperform."
Turkcell shares have rallied since the start of August as investors snapped up companies which had lagged huge gains in the Istanbul index , which is up 60 percent since the start of the year. By contrast Turkcell stock has risen only 18 percent since the start of 2009.
In Turkish lira terms Turkcell's net profit fell 26.2 percent on the year.
by Alexandra Hudson
Turkcell, Turkey's leading mobile phone company on Thursday: * posts Q2 net profit of $245.8 million down 42 pct * posts Q2 revenue of $1.398 billion, down 20 pct * posts Q2 EBITDA of $448.8 million, down 30 pct * Net profit was seen at $320 million according to the average forecast in a Reuters poll of 9 analysts.
Mobile phone operator Turkcell posted a 42 percent fall in second-quarter net profit to $245.8 million, blaming a weaker lira and provisions set aside for litigation which impacted net profit by 123 million lira ($84.4 million).
The average forecast in a Reuters poll of nine analysts was for net profit of $320 million, on sales of $1.389 billion.
Turkey's telecoms operators have challenged each other through the courts, amid a competitive environment, and have also challenged legislative changes.
The provisions had been made for pending legal cases relating to the period 2003-2005, the company said.
Sales amounted to $1.398 billion, Turkcell said in a statement early on Thursday, slightly beating forecasts and posting a rise of 9 percent from the first three months of 2009, although they were down 20 percent on the year.
ARPU (average monthly revenue per user), rose to $11.8 in the second quarter, up from $10.4 in the previous quarter and slightly above a consensus forecast for $11.6.
Turkcell had warned early in 2009 its performance would be adversely affected by the poor macroeconomic environment in Turkey, where the economy contracted a record 13.8 percent in the first quarter of the year, and is seen falling around 5 percent in 2009 as a whole.
Turkcell's Ukrainian unit Astelit and betting business Inteltek reported weaker results that weighed on performance. Astelit was hit by a gross domestic product drop in Ukraine of 20 percent and by devaluation, while Inteltek faced an excess payout.
Turkey's economic downturn, which has seen people drastically reduce their phone use, and multiple SIM users discard extra cards in favour of one operator, has coincided with a period of new market liberalisation in Turkey, intensifying competition to an unprecedented degree.
The company said this intensified in the second quarter and mobile penetration in Turkey fell to 88 percent in the period down from 90 percent in the second quarter.
But Turkcell said it had a net subscriber loss of only 42,750 whereas the market contracted by approximately 800,000.
Turkcell is the country's market leader with a subscriber share of some 56 percent, but it has needed increasingly aggressive pricing and marketing to defend its position.
Analysts are hopeful that new 3G services launched in the country in July will see mobile phone operators ease their price war, to compete on new technology instead.
Of 10 analysts that cover Turkcell, six rate it a "hold," one an "underperform," and three a "buy" or an "outperform."
Turkcell shares have rallied since the start of August as investors snapped up companies which had lagged huge gains in the Istanbul index , which is up 60 percent since the start of the year. By contrast Turkcell stock has risen only 18 percent since the start of 2009.
In Turkish lira terms Turkcell's net profit fell 26.2 percent on the year.
6 Tem 2009
Turkey says no Turk Telekom offering under way
Turkey says no Turk Telekom offering under way
* Privatisation body says no offering process under way
* 15 percent stake to be offered by Q1 2010 - newspapers
ISTANBUL, July 3 (Reuters) - Turkey's privatisation body has not begun the process of selling a second tranche of state-owned shares in Turk Telekom, it said on Friday after reports an offering was planned for 2010.
Two Turkish newspapers said Turkey's Privatisation Administration was planning to sell a 15 percent stake in Turk Telecom, which is also active in the internet service provider and mobile sectors, by the first quarter of next year.
"No process has been recently started for the privatisation of any shares in Turk Telekom owned by the Treasury," the administration said in a statement.
Shares in Turk Telekom traded down further at 2.9 percent at 4.64 lira after a suspension on the shares was lifted, pending an announcement from the sell-off body.
Selection of an investment bank to advise on the process was expected to take place by September, the Star daily reported.
Turk Telekom, controlled by Dubai-based Oger Telecom, was listed on the Istanbul bourse in May 2008 when the government cut its stake to 30 percent by listing a 15 percent holding. Shares in Turk Telekom have risen some 50 percent this year.
Turk Telekom was privatised in 2005 with a 55 percent block sale bought by Oger Telecom.
The company, which has said it was targeting 8-10 percent growth in 2009, is looking to invest as much as $1 billion in acquisitions this year. Its first-quarter net profit fell 27 percent to 291 million lira ($190 million). (Editing by Hans Peters and Mariam Karouny) ($1 = 1.528 Turkish lira)
* Privatisation body says no offering process under way
* 15 percent stake to be offered by Q1 2010 - newspapers
ISTANBUL, July 3 (Reuters) - Turkey's privatisation body has not begun the process of selling a second tranche of state-owned shares in Turk Telekom, it said on Friday after reports an offering was planned for 2010.
Two Turkish newspapers said Turkey's Privatisation Administration was planning to sell a 15 percent stake in Turk Telecom, which is also active in the internet service provider and mobile sectors, by the first quarter of next year.
"No process has been recently started for the privatisation of any shares in Turk Telekom owned by the Treasury," the administration said in a statement.
Shares in Turk Telekom traded down further at 2.9 percent at 4.64 lira after a suspension on the shares was lifted, pending an announcement from the sell-off body.
Selection of an investment bank to advise on the process was expected to take place by September, the Star daily reported.
Turk Telekom, controlled by Dubai-based Oger Telecom, was listed on the Istanbul bourse in May 2008 when the government cut its stake to 30 percent by listing a 15 percent holding. Shares in Turk Telekom have risen some 50 percent this year.
Turk Telekom was privatised in 2005 with a 55 percent block sale bought by Oger Telecom.
The company, which has said it was targeting 8-10 percent growth in 2009, is looking to invest as much as $1 billion in acquisitions this year. Its first-quarter net profit fell 27 percent to 291 million lira ($190 million). (Editing by Hans Peters and Mariam Karouny) ($1 = 1.528 Turkish lira)
Vodafone's Turkish gambit in T-Mobile talks with Deutsche Telekom
Vodafone's Turkish gambit in T-Mobile talks with Deutsche Telekom
By James Ashton
Vodafone has discussed offering its struggling Turkish subsidiary in part-exchange for T-Mobile UK, which is expected to be sold later this year by Deutsche Telekom.
The German phone group is this weekend considering approaches from Vodafone, O2 and Orange, who are all keen to consolidate their position in Britain's highly-competitive mobile market.
Sources said there was “no rush” to decide the future of T-Mobile, the No4 operator with 14% of mobile revenues, which has appointed investment bank JP Morgan to consider its options.
Vodafone chief executive Vittorio Colao is keen to trade assets rather than spend heavily like his predecessors. The company paid £2.6 billion to enter Turkey in 2006 but has written down its investment after losing ground to the market leader. It could contribute up to half the value in a £3 billion deal for T-Mobile.
By James Ashton
Vodafone has discussed offering its struggling Turkish subsidiary in part-exchange for T-Mobile UK, which is expected to be sold later this year by Deutsche Telekom.
The German phone group is this weekend considering approaches from Vodafone, O2 and Orange, who are all keen to consolidate their position in Britain's highly-competitive mobile market.
Sources said there was “no rush” to decide the future of T-Mobile, the No4 operator with 14% of mobile revenues, which has appointed investment bank JP Morgan to consider its options.
Vodafone chief executive Vittorio Colao is keen to trade assets rather than spend heavily like his predecessors. The company paid £2.6 billion to enter Turkey in 2006 but has written down its investment after losing ground to the market leader. It could contribute up to half the value in a £3 billion deal for T-Mobile.
Vodafone: LTE viable competitor to fixed broadband
Vodafone: LTE viable competitor to fixed broadband
By Lynnette Luna
Long Term Evolution (LTE) technology will be a viable competitor to fixed broadband links, said Professor Michael Walker, group R&D director with Vodafone at the Wireless 2.0 conference in the UK. He noted that the 100 Mbps of FTTH (fiber to the home) is the same as the theoretical maximum throughput of LTE, with wireless Internet providing a better and richer experience. That statement may give some hints as to how Vodafone might position the technology in the market.
With LTE capacity on 20 megahertz of spectrum being an order of magnitude higher than today's HSPA networks, Walker said the first real field trials are showing downlink speeds of 15Mbit/s, with 4.5 spectral efficiency. the center of the LTE cell delivered 20Mbit/s in the field trial with the edge of the cell delivering 1.3Mbit/s.
Vodafone is learning from its disappointments with 3G, said Walker. Having been stung by the experience of paying billions for spectrum in the 3G auctions and then seeing the technology fail to achieve the promised performance, Walker said Vodafone would ensure LTE worked as advertised before committing to deployment time frames or acquiring new spectrum
"3G was going to give 1Mbit/s but in some places you were lucky to get 300Kbit/s. It's not going to be like that with LTE," he said.
By Lynnette Luna
Long Term Evolution (LTE) technology will be a viable competitor to fixed broadband links, said Professor Michael Walker, group R&D director with Vodafone at the Wireless 2.0 conference in the UK. He noted that the 100 Mbps of FTTH (fiber to the home) is the same as the theoretical maximum throughput of LTE, with wireless Internet providing a better and richer experience. That statement may give some hints as to how Vodafone might position the technology in the market.
With LTE capacity on 20 megahertz of spectrum being an order of magnitude higher than today's HSPA networks, Walker said the first real field trials are showing downlink speeds of 15Mbit/s, with 4.5 spectral efficiency. the center of the LTE cell delivered 20Mbit/s in the field trial with the edge of the cell delivering 1.3Mbit/s.
Vodafone is learning from its disappointments with 3G, said Walker. Having been stung by the experience of paying billions for spectrum in the 3G auctions and then seeing the technology fail to achieve the promised performance, Walker said Vodafone would ensure LTE worked as advertised before committing to deployment time frames or acquiring new spectrum
"3G was going to give 1Mbit/s but in some places you were lucky to get 300Kbit/s. It's not going to be like that with LTE," he said.
2 Tem 2009
Alcatel-Lucent intros VDSL2 bonding, sleeping modems
by Ed Gubbins
Alcatel-Lucent today announced two new innovations in its DSL product line to be available in next year’s first quarter, including support for VDSL2 bonding and modems that power down when not in use to save energy, green modems.
Release 4.0 of the vendor’s Intelligent Services Access Manager platform includes support for bonding VDSL2 lines, a technique it says could double bandwidth speeds for some customers, depending on their proximity, potentially allowing 50-megabit-per-second downstream speeds.
Alcatel-Lucent’s biggest VDSL2 customer, AT&T, has talked about the promise of line bonding for some time while repeatedly pushing back its timetable for deploying the technology. And though the carrier initially talked about the bandwidth-boosting powers of line-bonding, it has more recently emphasized its potential to extend broadband over longer distances instead.
For example, AT&T has talked about offering 37 Mb/s over distances of 3,000 feet. And this month a Telephony reader and AT&T customer reported being told by a sales rep that the carrier was doing VDSL2 bonding today for distances up to 3200 feet.
“Pair bonding isn't necessary for all customers, nor are things like two [high-definition video] streams or faster Internet tiers dependent on pair bonding,” an AT&T spokesperson said last December. “Rather, we'll use pair bonding where needed as a way to expand our U-verse service area to customers at longer loop lengths. It will allow us to reach a broader customer base.”
Alcatel-Lucent said its line cards could be used to deliver 20 Mb/s up to 1400 meters (or nearly 4600 feet).
In an interview last year, Pieter Poll, chief technology officer for Qwest Communications, which is trialing VDSL2 gear now, called 2009 “probably the right time frame” to deploy bonded lines. Alcatel-Lucent said it is shipping its gear to select customers now and more generally in next year’s first quarter.
By several accounts, the main gating factor on the deployment of VDSL2 bonding is the availability of customer premises equipment (CPE) that supports it. In fact, Alcatel-Lucent said its gear has supported VDSL2 bonding for several months and that it is now testing the first CPE for the North American market – starting with two modems in its own CellPipe portfolio.
Some have attributed the lack of CPE support to a lack of demand for VDSL2 bonding in the market. When asked this month why Zhone Technologies doesn’t sell bonded VDSL2 gear, Steven Glapa, the vendor’s vice president of marketing and product management, said, “We haven’t seen anyone looking for it.”
The technology is limited by a few factors, including the simple requirement for extra pairs of existing copper. Thus far, most residential DSL bonding has involved ADSL2+. For example, last fall, SureWest Communications launched 10-Mb/s and 6-Mb/s broadband services over a bonded ADSL2+ network in its incumbent territory.
In addition to VDSL2 bonding, Alcatel-Lucent also announced a new ADSL modem that switches into low-power mode when not in use. When traffic levels drop, the modem automatically lowers its bit rate and cuts its power consumption by 25%. The technique is based on industry standards but hasn’t been widely employed, the vendor said, because re-activating the modems from low-power mode can cause power fluctuations, leading to crosstalk and destabilizing the network. Alcatel-Lucent is offering the products now because it has overcome those issues, the company said.
by Ed Gubbins
Alcatel-Lucent today announced two new innovations in its DSL product line to be available in next year’s first quarter, including support for VDSL2 bonding and modems that power down when not in use to save energy, green modems.
Release 4.0 of the vendor’s Intelligent Services Access Manager platform includes support for bonding VDSL2 lines, a technique it says could double bandwidth speeds for some customers, depending on their proximity, potentially allowing 50-megabit-per-second downstream speeds.
Alcatel-Lucent’s biggest VDSL2 customer, AT&T, has talked about the promise of line bonding for some time while repeatedly pushing back its timetable for deploying the technology. And though the carrier initially talked about the bandwidth-boosting powers of line-bonding, it has more recently emphasized its potential to extend broadband over longer distances instead.
For example, AT&T has talked about offering 37 Mb/s over distances of 3,000 feet. And this month a Telephony reader and AT&T customer reported being told by a sales rep that the carrier was doing VDSL2 bonding today for distances up to 3200 feet.
“Pair bonding isn't necessary for all customers, nor are things like two [high-definition video] streams or faster Internet tiers dependent on pair bonding,” an AT&T spokesperson said last December. “Rather, we'll use pair bonding where needed as a way to expand our U-verse service area to customers at longer loop lengths. It will allow us to reach a broader customer base.”
Alcatel-Lucent said its line cards could be used to deliver 20 Mb/s up to 1400 meters (or nearly 4600 feet).
In an interview last year, Pieter Poll, chief technology officer for Qwest Communications, which is trialing VDSL2 gear now, called 2009 “probably the right time frame” to deploy bonded lines. Alcatel-Lucent said it is shipping its gear to select customers now and more generally in next year’s first quarter.
By several accounts, the main gating factor on the deployment of VDSL2 bonding is the availability of customer premises equipment (CPE) that supports it. In fact, Alcatel-Lucent said its gear has supported VDSL2 bonding for several months and that it is now testing the first CPE for the North American market – starting with two modems in its own CellPipe portfolio.
Some have attributed the lack of CPE support to a lack of demand for VDSL2 bonding in the market. When asked this month why Zhone Technologies doesn’t sell bonded VDSL2 gear, Steven Glapa, the vendor’s vice president of marketing and product management, said, “We haven’t seen anyone looking for it.”
The technology is limited by a few factors, including the simple requirement for extra pairs of existing copper. Thus far, most residential DSL bonding has involved ADSL2+. For example, last fall, SureWest Communications launched 10-Mb/s and 6-Mb/s broadband services over a bonded ADSL2+ network in its incumbent territory.
In addition to VDSL2 bonding, Alcatel-Lucent also announced a new ADSL modem that switches into low-power mode when not in use. When traffic levels drop, the modem automatically lowers its bit rate and cuts its power consumption by 25%. The technique is based on industry standards but hasn’t been widely employed, the vendor said, because re-activating the modems from low-power mode can cause power fluctuations, leading to crosstalk and destabilizing the network. Alcatel-Lucent is offering the products now because it has overcome those issues, the company said.
Juniper Rolls VoIP Into Routers to Cut Latency
Juniper Rolls VoIP Into Routers to Cut Latency
Convergence goes a level deeper in a bid to improve voice latency and security.
By Sean Michael Kerner
VoIP is often thought of as technology that runs on top of routing equipment as a means for converging voice traffic onto IP networks. A new approach from Juniper Networks is taking VoIP convergence a layer deeper, rolling VoIP and its associated security needs directly into routing gear.
Juniper's approach could potentially have a significant impact on reducing VoIP latency, which is critical to improving voice quality on a network. A recent survey from Apparent Networks found that latency was a key concern hindering enterprise VoIP rollouts.
The Juniper solution involves deploying a card called the Integrated Multiservice Gateway (IMSG) into a Juniper M or MX router for packet processing and security. According to Juniper, the IMSG could reduce latency by removing as many as four out of the five hops associated with threading a VoIP call through multiple external appliances like firewalls and switches.
By doing so, Juniper could potentially reduce as much as 80 percent of the latency caused by interchassis connectivity and processing, it said.
A key part of the IMSG is the inclusion of a session border controller (SBC) (define), which provides VoIP traffic control functions.
"SBCs are now distributed in the network and sit side-by-side with routers," Tom DiMicelli, senior product marketing manager at Juniper, told InternetNews.com. "There is another approach that takes the SBC and integrates it with the routing function."
DiMicelli noted that by removing devices from the network and converging services on existing routers, service providers can reduce cost and latency. He added that since the IMSG has its own processing power, VoIP services can be implemented without sharing the existing router resources, which could potentially limit network performance.
The new IMSG solution builds on Juniper's Intelligent Services Edge strategy first announced in October 2008, and which includes integrated security. With the IMSG, DiMicelli explained that a service provider now has a full security stack for VoIP as well.
"We can identity, detect and mitigate about 150 VoIP attack protocols, in addition to all the other malware that exists out in the network," DiMicelli said. "So we could screen the traffic and make sure that no application layer attack is coming to the actual VoIP service."
According to DiMicelli, it is more difficult to do full VoIP security when standalone appliances are in play since the devices are not always functionally integrated. With the IMSG, he said that if the IPS (define) detects an attack, it can instruct the firewall to stop or block the packet flow from the network.
By converging VoIP services, overall network scalability for securing VoIP can be improved as well.
"If I had an external firewall, I would have to put all my traffic through that firewall," DiMicelli said. "In this case, I can employ the firewall to protect the specific resources that I want to protect and not impact the performance or need massive firewall capacity for all the traffic. So it's a very clean evolution that happens when you can decouple the network interface from the processing power that resides behind it."
For Juniper, the launch represents a way to continue capitalizing on the proliferation of VoIP, which today is deployed by most major service providers in the U.S. and globally. Despite its widespread use, DiMicelli sees the opportunity for continued growth in the years ahead.
"I think in terms of the raw number of VoIP subscribers versus the total number of voice subscribers, I think we're still in the early days of broad carrier-scale deployments," DiMicelli said. "We still see growth in the access market and the enterprise, and we feel there are plenty of opportunities."
Convergence goes a level deeper in a bid to improve voice latency and security.
By Sean Michael Kerner
VoIP is often thought of as technology that runs on top of routing equipment as a means for converging voice traffic onto IP networks. A new approach from Juniper Networks is taking VoIP convergence a layer deeper, rolling VoIP and its associated security needs directly into routing gear.
Juniper's approach could potentially have a significant impact on reducing VoIP latency, which is critical to improving voice quality on a network. A recent survey from Apparent Networks found that latency was a key concern hindering enterprise VoIP rollouts.
The Juniper solution involves deploying a card called the Integrated Multiservice Gateway (IMSG) into a Juniper M or MX router for packet processing and security. According to Juniper, the IMSG could reduce latency by removing as many as four out of the five hops associated with threading a VoIP call through multiple external appliances like firewalls and switches.
By doing so, Juniper could potentially reduce as much as 80 percent of the latency caused by interchassis connectivity and processing, it said.
A key part of the IMSG is the inclusion of a session border controller (SBC) (define), which provides VoIP traffic control functions.
"SBCs are now distributed in the network and sit side-by-side with routers," Tom DiMicelli, senior product marketing manager at Juniper, told InternetNews.com. "There is another approach that takes the SBC and integrates it with the routing function."
DiMicelli noted that by removing devices from the network and converging services on existing routers, service providers can reduce cost and latency. He added that since the IMSG has its own processing power, VoIP services can be implemented without sharing the existing router resources, which could potentially limit network performance.
The new IMSG solution builds on Juniper's Intelligent Services Edge strategy first announced in October 2008, and which includes integrated security. With the IMSG, DiMicelli explained that a service provider now has a full security stack for VoIP as well.
"We can identity, detect and mitigate about 150 VoIP attack protocols, in addition to all the other malware that exists out in the network," DiMicelli said. "So we could screen the traffic and make sure that no application layer attack is coming to the actual VoIP service."
According to DiMicelli, it is more difficult to do full VoIP security when standalone appliances are in play since the devices are not always functionally integrated. With the IMSG, he said that if the IPS (define) detects an attack, it can instruct the firewall to stop or block the packet flow from the network.
By converging VoIP services, overall network scalability for securing VoIP can be improved as well.
"If I had an external firewall, I would have to put all my traffic through that firewall," DiMicelli said. "In this case, I can employ the firewall to protect the specific resources that I want to protect and not impact the performance or need massive firewall capacity for all the traffic. So it's a very clean evolution that happens when you can decouple the network interface from the processing power that resides behind it."
For Juniper, the launch represents a way to continue capitalizing on the proliferation of VoIP, which today is deployed by most major service providers in the U.S. and globally. Despite its widespread use, DiMicelli sees the opportunity for continued growth in the years ahead.
"I think in terms of the raw number of VoIP subscribers versus the total number of voice subscribers, I think we're still in the early days of broad carrier-scale deployments," DiMicelli said. "We still see growth in the access market and the enterprise, and we feel there are plenty of opportunities."
Vodafone Launches Home 3G Femtocell In The UK
Vodafone Launches Home 3G Femtocell In The UK
by Peter Judge
Vodafone has launched the first commercial 3G femtocell in Europe, designed to boost signals indoors and offload traffic from the mobile network
The Vodafone Access Gateway can be ordered from Vodafone shops or online from 1 July.
Looking like a home router, femtocells give 3G coverage indoors, and use home broadband to connect calls across the Internet to the mobile network. The Vodafone device, announced at the Femtocells World Summit in London, this is believed to be the first full commercial launch of a 3G femtocell in Europe - and possibly the world, depending how you define 3G.
The device is understood to be a femtocell built by Alcatel Lucent using silicon from femto specialist picoChip, and will be available on different price plans - from outright purchase at £160, to bundling with contracts around £15 per month.
Update: Vodafone clarified these price plans. (Essentially, the femto is free to anyone on a £30 contract, and £5 otherwise - including dongle customers).
"This is very much an early stage rollout, specifically aimed at coverage, and focussing on voice, not data" long-time femto watcher Dean Bubley of Disruptive Analysis. Femtos will first be deployed to offer better indoor coverage and keep customer loyalty, he said. This is similar to Sprint's femto deployed in the US, which supports CDMA2000, not universally defined as a 3G network. After that, operators will attempt to offload traffic from their networks, and and then deliver new applications on the devices.
"It's certainly the first of its kind in Europe, and I see Vodafone says it will work over every home broadband line," said Bubley. "But are all the broadband lines good enough? And it means they are at the mercy of ISP's usage policies."
The device will support up to four voice calls, and users will register the handsets they want to use it on the web. The announcement makes no mention of using dongles or data, noted Bubley: "It's focussed around voice, so it looks like they are trying to create a low impact service initially."
The Alcatel-Lucent device believed to be in Vodafone's offering is well capable of data traffic, supporting HSPA at more than 7Mbps, so the gateway should work well with laptops. It is possible that Vodafone is not marketing that heavily, to avoid complaints from fixed operators. BT has recently objected to carrying content for the BBC iPlayer without extra payment, and ISPs could object to supporting a rival mobile player in this way, said Bubley.
Vodafone did not address the issue of any agreements with ISPs in its presentation.
"The Vodafone Access Gateway will boost indoor mobile phone coverage for customers who today, find they need to move around the rooms in their home to get a consistent signal strength,” said Ian Shepherd, consumer director, Vodafone UK. “We are committed to delivering the best, most reliable network and this is another step towards maintaining a seamless service.”
"The most telling thing is that the announcement was made by a marketing head," said Paul Callahan, vice president of business development at femto maker Airvana. "You can have a huge disconnect between the technology dreamers and the marketing guys who have to sell the device. It seems Vodafone is going to run with this."
Tha announcement should address requests from the budding femto industry for operator backing. Yesterday, Keith Day of femto maker Ubiquisys said: "What the industry needs is an operator that does the full promotional package on a femtocell." picoChip was unable to confirm its involvement but Rupert Baines, vice president of marketing was at the conference and said: "This is exciting news. It's a full national retail launch, and the first launch of an HSPA femto."
by Peter Judge
Vodafone has launched the first commercial 3G femtocell in Europe, designed to boost signals indoors and offload traffic from the mobile network
The Vodafone Access Gateway can be ordered from Vodafone shops or online from 1 July.
Looking like a home router, femtocells give 3G coverage indoors, and use home broadband to connect calls across the Internet to the mobile network. The Vodafone device, announced at the Femtocells World Summit in London, this is believed to be the first full commercial launch of a 3G femtocell in Europe - and possibly the world, depending how you define 3G.
The device is understood to be a femtocell built by Alcatel Lucent using silicon from femto specialist picoChip, and will be available on different price plans - from outright purchase at £160, to bundling with contracts around £15 per month.
Update: Vodafone clarified these price plans. (Essentially, the femto is free to anyone on a £30 contract, and £5 otherwise - including dongle customers).
"This is very much an early stage rollout, specifically aimed at coverage, and focussing on voice, not data" long-time femto watcher Dean Bubley of Disruptive Analysis. Femtos will first be deployed to offer better indoor coverage and keep customer loyalty, he said. This is similar to Sprint's femto deployed in the US, which supports CDMA2000, not universally defined as a 3G network. After that, operators will attempt to offload traffic from their networks, and and then deliver new applications on the devices.
"It's certainly the first of its kind in Europe, and I see Vodafone says it will work over every home broadband line," said Bubley. "But are all the broadband lines good enough? And it means they are at the mercy of ISP's usage policies."
The device will support up to four voice calls, and users will register the handsets they want to use it on the web. The announcement makes no mention of using dongles or data, noted Bubley: "It's focussed around voice, so it looks like they are trying to create a low impact service initially."
The Alcatel-Lucent device believed to be in Vodafone's offering is well capable of data traffic, supporting HSPA at more than 7Mbps, so the gateway should work well with laptops. It is possible that Vodafone is not marketing that heavily, to avoid complaints from fixed operators. BT has recently objected to carrying content for the BBC iPlayer without extra payment, and ISPs could object to supporting a rival mobile player in this way, said Bubley.
Vodafone did not address the issue of any agreements with ISPs in its presentation.
"The Vodafone Access Gateway will boost indoor mobile phone coverage for customers who today, find they need to move around the rooms in their home to get a consistent signal strength,” said Ian Shepherd, consumer director, Vodafone UK. “We are committed to delivering the best, most reliable network and this is another step towards maintaining a seamless service.”
"The most telling thing is that the announcement was made by a marketing head," said Paul Callahan, vice president of business development at femto maker Airvana. "You can have a huge disconnect between the technology dreamers and the marketing guys who have to sell the device. It seems Vodafone is going to run with this."
Tha announcement should address requests from the budding femto industry for operator backing. Yesterday, Keith Day of femto maker Ubiquisys said: "What the industry needs is an operator that does the full promotional package on a femtocell." picoChip was unable to confirm its involvement but Rupert Baines, vice president of marketing was at the conference and said: "This is exciting news. It's a full national retail launch, and the first launch of an HSPA femto."
8 Haz 2009
High Definition Voice telephony to come U.S. with VoIP
High Definition Voice telephony to come U.S. with VoIP
Optimum Lightpath this month becomes the first U.S. service provider to roll out High-Definition voice services as part of its hosted VoIP offering, and the Cablevision subsidiary is offering this new feature at no extra charge, beyond a one-time fee for the enhanced phone set required.
HD VoIP enables a higher sound quality by using uses voice energy that lies outside the 3 kilohertz frequency of traditional telephone calls, to create much richer voice quality based on Session Initiation Protocol (SIP) technology and the G.722 wideband codec standard. Optimum Lightpath already has G.722 wideband codes deployed in its network, said Glenn Calafati, director of Product Marketing at Optimum Lightpath, so the only upgrade required to offer the service is deployment of an HD phone set at the customers’ premises.
There is no one application driving HD voice deployment, other than the general demand for higher quality VoIP, said John Macario, senior vice president, Product Strategy and Management, for Optimum Lightpath.
“We have a significant number of high-end clients in our location – financial services companies, hospitals, educational institutions – and we have heard interest in this across the board,” Macario said. “If two traders are talking in a relatively noisy environment important they heard each other clearly and concisely. Doctors, same thing. The driving application is just voice. Our view here is that this is an advance in technology that is made possible by IP and in this case, hosted IP, and we want to offer it to our customers.”
Optimum Lightpath uses an all-fiber, all Ethernet infrastructure to deliver its data and hosted voice services. Optimum Lightpath chose not to charge for the additional quality because its standard approach to upgrades has been to offer them without additional cost, Macario said.
“We’ve added HD voice to the equation as just another feature, and we are not going to start charging people on another feature,” Macario said. “HD handsets are more expensive so there is a small non-reccuring charge that they will pay based on the number of the latest Cisco handsets they want to buy. That covers the cost differential between those handsets and the standard IP phones. That charge will vary depending on how many HD phones you want. That’s how we handle any upgrade to the phone.”
As part of the Optimum Lightpath Hosted Voice service, Optimum Lightpath handles all installation and upgrades, along with equipment maintenance and 24-7 customer support, Marcario said.
Optimum Lightpath this month becomes the first U.S. service provider to roll out High-Definition voice services as part of its hosted VoIP offering, and the Cablevision subsidiary is offering this new feature at no extra charge, beyond a one-time fee for the enhanced phone set required.
HD VoIP enables a higher sound quality by using uses voice energy that lies outside the 3 kilohertz frequency of traditional telephone calls, to create much richer voice quality based on Session Initiation Protocol (SIP) technology and the G.722 wideband codec standard. Optimum Lightpath already has G.722 wideband codes deployed in its network, said Glenn Calafati, director of Product Marketing at Optimum Lightpath, so the only upgrade required to offer the service is deployment of an HD phone set at the customers’ premises.
There is no one application driving HD voice deployment, other than the general demand for higher quality VoIP, said John Macario, senior vice president, Product Strategy and Management, for Optimum Lightpath.
“We have a significant number of high-end clients in our location – financial services companies, hospitals, educational institutions – and we have heard interest in this across the board,” Macario said. “If two traders are talking in a relatively noisy environment important they heard each other clearly and concisely. Doctors, same thing. The driving application is just voice. Our view here is that this is an advance in technology that is made possible by IP and in this case, hosted IP, and we want to offer it to our customers.”
Optimum Lightpath uses an all-fiber, all Ethernet infrastructure to deliver its data and hosted voice services. Optimum Lightpath chose not to charge for the additional quality because its standard approach to upgrades has been to offer them without additional cost, Macario said.
“We’ve added HD voice to the equation as just another feature, and we are not going to start charging people on another feature,” Macario said. “HD handsets are more expensive so there is a small non-reccuring charge that they will pay based on the number of the latest Cisco handsets they want to buy. That covers the cost differential between those handsets and the standard IP phones. That charge will vary depending on how many HD phones you want. That’s how we handle any upgrade to the phone.”
As part of the Optimum Lightpath Hosted Voice service, Optimum Lightpath handles all installation and upgrades, along with equipment maintenance and 24-7 customer support, Marcario said.
Gartner SaaS revenue projections, mega trends in 2009
SaaS revenue projections, mega trends in 2009
Software as a service (SaaS) is forecast to reach $8 billion in sales in 2009, a 21.9 percent increase from 2008 revenue of $6.6 billion, according to a recent report from Gartner, Inc., and will experience a 19.4 percent compound annual growth rate through 2013. In a challenging economy, SaaS represents a leaner alternative, but it will continue to change and evolve within Platform as a Service (PaaS) strategies that companies like Microsoft and IBM are developing. These strategies will invite developers and integrate SaaS with their software. And there may be a Cloud on the horizon.
SaaS adoption is strong in select markets, but it has limited potential in other markets and subsegments. Segments of the SaaS market that will drive growth for the next three years include procurement, human capital management, and customer relations management, Gartner reports. SaaS accounted for more than 18 percent of the customer relations management market overall in 2008.
Perception of SaaS has changed. Greater competition and focus by megavendors reinforce the legitimacy of on-demand solutions, according to Sharon Mertz, research director at Gartner. "Many enterprises are further encouraged by the fact that with SaaS, responsibility for continuous operation backups, updates and infrastructure maintenance shift risk and resource requirements from internal IT to vendors or service providers," she said.
Market researcher IDC projects an even higher rate of growth for SaaS - 40.5 percent over 2008 due in part to the cost advantage at least in the short run of Saas. "Buyers are more interested in the easy-to use subscription services which meter current use and vendors will look for new products and recurring revenue streams," IDC reports.
"SaaS services have benefited by the perception that they are tactical fixes, which allow for relatively easy expansions during hard times," according to Robert Mahowald, director of On-Demand and SaaS research at IDC in a recent report entitled Economic Crisis Response: Worldwide Software as a Service Forecast Update.
IDC says that SaaS growth could be constrained by the cash flow problems of potential clients who also have difficulty finding credit to scale up.
The Gartner report says that several factors that can impede adoption of SaaS, include: concerns about data security, a perceived lack of competitive differentiation, increasing concerns about scalability, questions about vendor longevity, and the fact that existing investments in applications capital and organizational expertise limit SaaS growth.
Platform as a Service
Intuit, which initiated its Platform as a Service (PaaS), the Intuit Partner Platform, just one year ago, is one example of the rapidly changing landscape for SaaS. Within weeks of its acquisition of PayCycle for $170 million, it announced on June 3 that the Partner Platform will support third party development.
The Intuit Partner Web site gets right to the point. Through the Platform, SaaS providers and developers will be able to sell to millions of businesses already using Intuit's Quickbooks program and "Federate" existing SaaS applications. The Platform will permit users to:
• Rapidly build and deploy rich SaaS applications capable of seamless integration with QuickBooks data.
• Federate existing SaaS applications.
• Reach a potential market of nearly 25 million users within the 4 million small businesses using QuickBooks.
And Tim Berry, writing for smallbusiness.com, sees SaaS developers, large and small, everywhere. "Not just big companies in India working with big companies in the U.S., but individual programmers all over the world contracting with companies of every size, also all over the world."
SaaS and Cloud Computing
Bloggers debate whether SaaS applications will evolve on their own or whether new development will "leapfrog" SaaS into the new world of PaaS/Cloud computing. One view, expressed by Chris Morace, Jive Software's senior vice president, is that, "Multi tenancy SaaS is too limited. The idea of a federated hybrid cloud approach will enable flexibility in the deployment.... I think the enterprise will adopt around virtualized clouds."
Andre Conry-Murray disagrees. In an informationweek.com post, he writes that Salesforce.com, Workday, and others have demonstrated that enterprises will adopt SaaS, despite concerns over security and privacy. He asks "whether the architectural differences between SaaS and the Cloud will affect SaaS vendors in the future if private/public federation catches on," but questions if they will catch on.
Software as a service (SaaS) is forecast to reach $8 billion in sales in 2009, a 21.9 percent increase from 2008 revenue of $6.6 billion, according to a recent report from Gartner, Inc., and will experience a 19.4 percent compound annual growth rate through 2013. In a challenging economy, SaaS represents a leaner alternative, but it will continue to change and evolve within Platform as a Service (PaaS) strategies that companies like Microsoft and IBM are developing. These strategies will invite developers and integrate SaaS with their software. And there may be a Cloud on the horizon.
SaaS adoption is strong in select markets, but it has limited potential in other markets and subsegments. Segments of the SaaS market that will drive growth for the next three years include procurement, human capital management, and customer relations management, Gartner reports. SaaS accounted for more than 18 percent of the customer relations management market overall in 2008.
Perception of SaaS has changed. Greater competition and focus by megavendors reinforce the legitimacy of on-demand solutions, according to Sharon Mertz, research director at Gartner. "Many enterprises are further encouraged by the fact that with SaaS, responsibility for continuous operation backups, updates and infrastructure maintenance shift risk and resource requirements from internal IT to vendors or service providers," she said.
Market researcher IDC projects an even higher rate of growth for SaaS - 40.5 percent over 2008 due in part to the cost advantage at least in the short run of Saas. "Buyers are more interested in the easy-to use subscription services which meter current use and vendors will look for new products and recurring revenue streams," IDC reports.
"SaaS services have benefited by the perception that they are tactical fixes, which allow for relatively easy expansions during hard times," according to Robert Mahowald, director of On-Demand and SaaS research at IDC in a recent report entitled Economic Crisis Response: Worldwide Software as a Service Forecast Update.
IDC says that SaaS growth could be constrained by the cash flow problems of potential clients who also have difficulty finding credit to scale up.
The Gartner report says that several factors that can impede adoption of SaaS, include: concerns about data security, a perceived lack of competitive differentiation, increasing concerns about scalability, questions about vendor longevity, and the fact that existing investments in applications capital and organizational expertise limit SaaS growth.
Platform as a Service
Intuit, which initiated its Platform as a Service (PaaS), the Intuit Partner Platform, just one year ago, is one example of the rapidly changing landscape for SaaS. Within weeks of its acquisition of PayCycle for $170 million, it announced on June 3 that the Partner Platform will support third party development.
The Intuit Partner Web site gets right to the point. Through the Platform, SaaS providers and developers will be able to sell to millions of businesses already using Intuit's Quickbooks program and "Federate" existing SaaS applications. The Platform will permit users to:
• Rapidly build and deploy rich SaaS applications capable of seamless integration with QuickBooks data.
• Federate existing SaaS applications.
• Reach a potential market of nearly 25 million users within the 4 million small businesses using QuickBooks.
And Tim Berry, writing for smallbusiness.com, sees SaaS developers, large and small, everywhere. "Not just big companies in India working with big companies in the U.S., but individual programmers all over the world contracting with companies of every size, also all over the world."
SaaS and Cloud Computing
Bloggers debate whether SaaS applications will evolve on their own or whether new development will "leapfrog" SaaS into the new world of PaaS/Cloud computing. One view, expressed by Chris Morace, Jive Software's senior vice president, is that, "Multi tenancy SaaS is too limited. The idea of a federated hybrid cloud approach will enable flexibility in the deployment.... I think the enterprise will adopt around virtualized clouds."
Andre Conry-Murray disagrees. In an informationweek.com post, he writes that Salesforce.com, Workday, and others have demonstrated that enterprises will adopt SaaS, despite concerns over security and privacy. He asks "whether the architectural differences between SaaS and the Cloud will affect SaaS vendors in the future if private/public federation catches on," but questions if they will catch on.
Intel Invests $43 Million in Japanese WiMax Carrier
Intel Invests $43 Million in Japanese WiMax Carrier
by Martyn Williams
Intel's venture capital arm is investing US$43 million in a Tokyo-based WiMax operator that plans to launch the world's fastest WiMax service in July. The investment, from Intel Capital, will help UQ Communications to build-out its network, which is now under test in Tokyo. The service offers download speeds of up to 40Mbps and uploads at up to 10Mbps. It will be formally launched on July 1. The network currently covers Tokyo and the nearby cities of Kawasaki and Yokohama and will expand to cover additional cities later this year. UQ plans to offer coverage of over 90 percent of the population by 2012. Intel has backed the company from the time it applied to the Japanese government to launch service. UQ Communications is also backed by KDDI, Japan's number two cellular carrier, JR East, the major railway operator in Eastern Japan, Kyocera, Daiwa Securities and Tokyo Mitsubishi Bank.
UQ enters the Japanese market at a time of increased competition in the data transmission market. While Japanese cellular carriers were ahead of the world in offering mobile Internet service to cell phone users, they lagged in providing similar services to PC users. That market was kicked off by the emergence of E-Mobile, a data-focused carrier that offered the country's first flat-rate HSDPA (high-speed downlink packet access) service. Other cellular carriers are now offering their own competing services and NTT DoCoMo, Japan's leading cellular carrier, plans to offer an HSUPA service with uploads as fast as 5.7Mbps later this year. Download speeds are also due to be increased to 14Mbps later this year. While slower than UQ's data offering, the service is more widely available.
by Martyn Williams
Intel's venture capital arm is investing US$43 million in a Tokyo-based WiMax operator that plans to launch the world's fastest WiMax service in July. The investment, from Intel Capital, will help UQ Communications to build-out its network, which is now under test in Tokyo. The service offers download speeds of up to 40Mbps and uploads at up to 10Mbps. It will be formally launched on July 1. The network currently covers Tokyo and the nearby cities of Kawasaki and Yokohama and will expand to cover additional cities later this year. UQ plans to offer coverage of over 90 percent of the population by 2012. Intel has backed the company from the time it applied to the Japanese government to launch service. UQ Communications is also backed by KDDI, Japan's number two cellular carrier, JR East, the major railway operator in Eastern Japan, Kyocera, Daiwa Securities and Tokyo Mitsubishi Bank.
UQ enters the Japanese market at a time of increased competition in the data transmission market. While Japanese cellular carriers were ahead of the world in offering mobile Internet service to cell phone users, they lagged in providing similar services to PC users. That market was kicked off by the emergence of E-Mobile, a data-focused carrier that offered the country's first flat-rate HSDPA (high-speed downlink packet access) service. Other cellular carriers are now offering their own competing services and NTT DoCoMo, Japan's leading cellular carrier, plans to offer an HSUPA service with uploads as fast as 5.7Mbps later this year. Download speeds are also due to be increased to 14Mbps later this year. While slower than UQ's data offering, the service is more widely available.
Turkcell Chairman Worried About Shareholding - Turkcell to Start Mobile Wallet Trials
Turkcell Chairman Worried About Shareholding - Turkcell to Start Mobile Wallet Trials
Turkcell's Chairman Mehmet Emin Karamehmet has warned that his shareholding in the company has fallen to a "critical level" which could result in a change of ownership control. His Cukurova Group owns about 14 percent of Turkcell after recent sales of shares to fund debt repayments.
TeliaSonera has been in a long legal fight with Cukurova over control of Turkcell. In January 2007, the International Chamber of Commerce issued an award finding that a binding share purchase agreement was concluded between TeliaSonera and Cukurova in 2005, calling for Cukurova to sell all its shares in Turkcell Holding to TeliaSonera. The award results from an arbitration proceeding in Geneva that TeliaSonera commenced in May 2005 against Cukurova, after Cukurova withdrew from the transaction and entered into another transaction with Russia's Alfa.
As at last July, Turkcell's shareholder structure was as follows: 51% held by Turkcell Holding, 4.15% by Cukurova Holding, 13.07% by Sonera Holding, 2.32% by MV Holding and the free float is 29.38%. Cukurova Group controls the company despite holding only 18% of the share capital, due to a complicated shareholding/voting structure.
TeliaSonera owns 47 percent of the shares in Turkcell Holding. TeliaSonera also owns 13 percent of the shares in Turkcell, giving TeliaSonera a direct and indirect ownership of 37 percent in Turkcell.
In related news, Turkey's Turkcell is planning to launch a Mobile Wallet service before the end of next year, said Altuğ Acar, Turkcell's head of business development.
"We are currently working on a new system that will transfer the functions of credit cards along with an integrated municipal toll and transit application," he told Today's Zaman, noting that the system has passed the tests so far.
"If a user loses their smart card or if it is stolen, then they will easily be able to cancel their accounts and open a new one via our call centers," he added. As for the new cell phones that will use the Mobile Wallet system, Acar said they have been conducting infrastructure studies to design a new generation of phones.
Turkcell's Chairman Mehmet Emin Karamehmet has warned that his shareholding in the company has fallen to a "critical level" which could result in a change of ownership control. His Cukurova Group owns about 14 percent of Turkcell after recent sales of shares to fund debt repayments.
TeliaSonera has been in a long legal fight with Cukurova over control of Turkcell. In January 2007, the International Chamber of Commerce issued an award finding that a binding share purchase agreement was concluded between TeliaSonera and Cukurova in 2005, calling for Cukurova to sell all its shares in Turkcell Holding to TeliaSonera. The award results from an arbitration proceeding in Geneva that TeliaSonera commenced in May 2005 against Cukurova, after Cukurova withdrew from the transaction and entered into another transaction with Russia's Alfa.
As at last July, Turkcell's shareholder structure was as follows: 51% held by Turkcell Holding, 4.15% by Cukurova Holding, 13.07% by Sonera Holding, 2.32% by MV Holding and the free float is 29.38%. Cukurova Group controls the company despite holding only 18% of the share capital, due to a complicated shareholding/voting structure.
TeliaSonera owns 47 percent of the shares in Turkcell Holding. TeliaSonera also owns 13 percent of the shares in Turkcell, giving TeliaSonera a direct and indirect ownership of 37 percent in Turkcell.
In related news, Turkey's Turkcell is planning to launch a Mobile Wallet service before the end of next year, said Altuğ Acar, Turkcell's head of business development.
"We are currently working on a new system that will transfer the functions of credit cards along with an integrated municipal toll and transit application," he told Today's Zaman, noting that the system has passed the tests so far.
"If a user loses their smart card or if it is stolen, then they will easily be able to cancel their accounts and open a new one via our call centers," he added. As for the new cell phones that will use the Mobile Wallet system, Acar said they have been conducting infrastructure studies to design a new generation of phones.
27 May 2009
Avea embraces hi-tech with the launch of new Teknopark
Avea embraces hi-tech with the launch of new Teknopark
Avea, one of Turkey’s leading mobile phone networks, launched "Avea Teknopark," its new technology center, at a press conference held Tuesday.
Speaking at the conference, Avea chief executive Cüneyt Türktan said the firm had invested $18 million in the project. "With this Teknopark, we have not only developed our technologic facilities, but also our infrastructure," he said.
The building contains a research and development center, network centers, information technology services and added value departments. Türktan said the building was environmentally friendly, thanks to special systems working in accordance with the different seasons.
"Thanks to this feature, we can also economize," he said, adding that the Teknopark would support innovation in the industry. The center currently employs 550 people, but the figure is expected to rise.
"In this building we have a surveillance center from which we can observe closely all the base stations and Turkish networks," said Kemal Erman, director of Avea Network.
"This system helps us to understand and follow the problems in the networks," he said. "We have created new costing and billing systems for our clients," Türktan said.
"Apart from delivering quality communication, with our infrastructure and advantageous billing systems we have become the most preferred operator in Turkey."
Noting that Avea was trying to support the communications sector in Turkey, Erman said the firm had recently created new tariffs and used a package-based approach. "Right now we are readying our infrastructure for development," he told Hürriyet Daily News & Economic Review. "We are trying to improve our infrastructure further and Turkey has a good international record in this area."
Avea, one of Turkey’s leading mobile phone networks, launched "Avea Teknopark," its new technology center, at a press conference held Tuesday.
Speaking at the conference, Avea chief executive Cüneyt Türktan said the firm had invested $18 million in the project. "With this Teknopark, we have not only developed our technologic facilities, but also our infrastructure," he said.
The building contains a research and development center, network centers, information technology services and added value departments. Türktan said the building was environmentally friendly, thanks to special systems working in accordance with the different seasons.
"Thanks to this feature, we can also economize," he said, adding that the Teknopark would support innovation in the industry. The center currently employs 550 people, but the figure is expected to rise.
"In this building we have a surveillance center from which we can observe closely all the base stations and Turkish networks," said Kemal Erman, director of Avea Network.
"This system helps us to understand and follow the problems in the networks," he said. "We have created new costing and billing systems for our clients," Türktan said.
"Apart from delivering quality communication, with our infrastructure and advantageous billing systems we have become the most preferred operator in Turkey."
Noting that Avea was trying to support the communications sector in Turkey, Erman said the firm had recently created new tariffs and used a package-based approach. "Right now we are readying our infrastructure for development," he told Hürriyet Daily News & Economic Review. "We are trying to improve our infrastructure further and Turkey has a good international record in this area."
26 May 2009
Turkcell - Decline in Customers As Churn Hits All-time High
Turkcell - Decline in Customers As Churn Hits All-time High
¬The first quarter of the year is traditionally the weakest for growth for Turkcell, Turkey's market leader, but Q1 09 was a particularly poor quarter. The quarterly loss of 0.6m customers was only the second ever suffered by the company, with the first being in Q1 08 (-0.3m). In both Q1 08 and Q1 09, it was the prepaid base which suffered the entire loss. In fact, the contract base has grown with remarkable consistency, adding 0.3m in the past four quarters, although it is worth mentioning that Turkcell only reports numbers to the nearest 0.1m. At the end of Q1 09, the prepaid base stood at 28.6m . unchanged year on year . while the contract base was up 18.2% to 7.8m. Total customer growth stood at 3.7%, down from 9.0% a year earlier.
Turkcell's KPIs present a mixed bag. Churn hit an all-time high of 8.2% per quarter, up from 7.2% in Q1 08. However, blended ARPU was up 8.9% to TRY17.1 and prepaid was up 15.2% to TRY10.6. Contract was still down, however, a 7.0% fall taking the Q1 09 figure to TRY41.4.
Turkcell also holds stakes in Astelit, Ukraine's third largest operator, and Fintur, which operates networks in Kazakhstan, Azerbaijan, Moldova and Georgia. Astelit saw a 22.3% rise in registered customers to 11.5m, but active customers grew by 37.9% to 8.0m. Both registered and active ARPUs fell, however, the former dropping 30.3% to USD2.30 and the latter falling 35.2% to USD3.50. Meanwhile, Moldcell of Moldova appeared to perform the best of the Fintur operations with 20% annual growth; however, more detailed figures from TeliaSonera, Fintur's joint owner, show that the operation grew by just 4.8% from 0.54m to 0.57m (rather than 0.5m to 0.6m, as Turkcell portrayed it).
The fastest growing operator was in fact Georgia's Geocell, which was up 14.4% to just under 1.6m. Azercell (Azerbaijan) grew 13.4% to 3.58m and K-Cell (Kazakhstan) was up 9.0% to 7.06m.
Turkcell's total revenue was up 12.3% to TRY2,103m and EBITDA grew 12.6% to TRY774m. Both Fintur and Astelit saw declines in revenue, although since both are reported in dollars, currency fluctuations do have a part to play here.
¬The first quarter of the year is traditionally the weakest for growth for Turkcell, Turkey's market leader, but Q1 09 was a particularly poor quarter. The quarterly loss of 0.6m customers was only the second ever suffered by the company, with the first being in Q1 08 (-0.3m). In both Q1 08 and Q1 09, it was the prepaid base which suffered the entire loss. In fact, the contract base has grown with remarkable consistency, adding 0.3m in the past four quarters, although it is worth mentioning that Turkcell only reports numbers to the nearest 0.1m. At the end of Q1 09, the prepaid base stood at 28.6m . unchanged year on year . while the contract base was up 18.2% to 7.8m. Total customer growth stood at 3.7%, down from 9.0% a year earlier.
Turkcell's KPIs present a mixed bag. Churn hit an all-time high of 8.2% per quarter, up from 7.2% in Q1 08. However, blended ARPU was up 8.9% to TRY17.1 and prepaid was up 15.2% to TRY10.6. Contract was still down, however, a 7.0% fall taking the Q1 09 figure to TRY41.4.
Turkcell also holds stakes in Astelit, Ukraine's third largest operator, and Fintur, which operates networks in Kazakhstan, Azerbaijan, Moldova and Georgia. Astelit saw a 22.3% rise in registered customers to 11.5m, but active customers grew by 37.9% to 8.0m. Both registered and active ARPUs fell, however, the former dropping 30.3% to USD2.30 and the latter falling 35.2% to USD3.50. Meanwhile, Moldcell of Moldova appeared to perform the best of the Fintur operations with 20% annual growth; however, more detailed figures from TeliaSonera, Fintur's joint owner, show that the operation grew by just 4.8% from 0.54m to 0.57m (rather than 0.5m to 0.6m, as Turkcell portrayed it).
The fastest growing operator was in fact Georgia's Geocell, which was up 14.4% to just under 1.6m. Azercell (Azerbaijan) grew 13.4% to 3.58m and K-Cell (Kazakhstan) was up 9.0% to 7.06m.
Turkcell's total revenue was up 12.3% to TRY2,103m and EBITDA grew 12.6% to TRY774m. Both Fintur and Astelit saw declines in revenue, although since both are reported in dollars, currency fluctuations do have a part to play here.
Turkcell may seek legal action against regulator
Turkcell may seek legal action against regulator
reuters.com
Turkcell, Turkey's biggest mobile phone operator, is considering taking legal action against the state regulator because of its policies on retail prices, the company said on Tuesday. Turkcell didn't specify in its filing with the Istanbul Stock Exchange to which actions by the Ankara-based Information and Communication Technologies Authorities (BTK) it was referring. The BTK on May 1 lowered the call-termination fees Turkcell applies to competitors by 28 percent after Turk Telekom, the landline monopoly, opened a case. "We believe that some of the BTK decisions amount to interference in our retail prices and the decisions may not be in line with licence agreements and the rules of fair competition," Turkcell said in the filing. "Therefore we are considering using legal means to protect our rights," it said, without elaborating.
reuters.com
Turkcell, Turkey's biggest mobile phone operator, is considering taking legal action against the state regulator because of its policies on retail prices, the company said on Tuesday. Turkcell didn't specify in its filing with the Istanbul Stock Exchange to which actions by the Ankara-based Information and Communication Technologies Authorities (BTK) it was referring. The BTK on May 1 lowered the call-termination fees Turkcell applies to competitors by 28 percent after Turk Telekom, the landline monopoly, opened a case. "We believe that some of the BTK decisions amount to interference in our retail prices and the decisions may not be in line with licence agreements and the rules of fair competition," Turkcell said in the filing. "Therefore we are considering using legal means to protect our rights," it said, without elaborating.
25 May 2009
Google yeni patenti ile neyi hedefliyor?
Google yeni patenti ile neyi hedefliyor?
chip.com.tr
Google'ın netteyken bilgilerinizi topladığını mı düşünüyorsunuz? Öyleyse bu habere sinirleneceksiniz.
Google, pek çok aracı sayesinde internet üzerinde kullanıcıların ne yaptıklarını ve farklı konudaki eğilimlerinin ne yönde olduğunu takip edebiliyor. Fakat dev firmanın aldığı yeni bir patent artık internette olmadığını zamanları da takip etmeye hazırlandığını gösteriyor.
Akıllı telefonlar için geliştirilen pek çok uygulama aslında pek çok ilginç özellik sağlıyor. Bunlar arasında gelen aramaları saate göre farklı bir telefona yönlendirerek iş saati dışında aramaları kabul etmemeyi sağlama, GPS ile bulunduğunuz nokta tespit edilerek telefon ayarlarını otomatik değiştirme gibi uygulamalar da var. Fakat Google'ın Android işletim sistemi ile kullanılmasını düşündüğü proje biraz daha farklı.
Detaylarına ABD patent ofisinin ilgili sayfasından ulaşabileceğiniz Google'ın yeni projesi, cep telefonunuzun hareketlerinden o anda ne yapmakta olduğunuzu anlamayı planlıyor. Google bir hızölçer ile cep telefonunun hareketlerini tespit etmeyi ve buna göre farklı işlemler gerçekleştirmeyi hedefliyor. Her ne kadar hızölçerler şu an için sınırlı yeteneklere sahip olsa da, zaman içerisinde çok daha farklı becerilere kavuşacakları sağlanıyor. Google'ın şu anda hızölçer ile tespit edilebilecek farklı hareketleri tanımlayacak bir veri tabanı oluşturmak üzerinde çalıştığı da söyleniyor.
Fakat bu şu an için sadece bir patent ve Google'ın tam olarak neyi hedeflediğini net bir şekilde açıklamıyor. Yine de Google gibi veri toplamayı seven bir firmanın bu topladığı veriler için çok ilginç kullanım yöntemleri bulacağına şüphe yok.
chip.com.tr
Google'ın netteyken bilgilerinizi topladığını mı düşünüyorsunuz? Öyleyse bu habere sinirleneceksiniz.
Google, pek çok aracı sayesinde internet üzerinde kullanıcıların ne yaptıklarını ve farklı konudaki eğilimlerinin ne yönde olduğunu takip edebiliyor. Fakat dev firmanın aldığı yeni bir patent artık internette olmadığını zamanları da takip etmeye hazırlandığını gösteriyor.
Akıllı telefonlar için geliştirilen pek çok uygulama aslında pek çok ilginç özellik sağlıyor. Bunlar arasında gelen aramaları saate göre farklı bir telefona yönlendirerek iş saati dışında aramaları kabul etmemeyi sağlama, GPS ile bulunduğunuz nokta tespit edilerek telefon ayarlarını otomatik değiştirme gibi uygulamalar da var. Fakat Google'ın Android işletim sistemi ile kullanılmasını düşündüğü proje biraz daha farklı.
Detaylarına ABD patent ofisinin ilgili sayfasından ulaşabileceğiniz Google'ın yeni projesi, cep telefonunuzun hareketlerinden o anda ne yapmakta olduğunuzu anlamayı planlıyor. Google bir hızölçer ile cep telefonunun hareketlerini tespit etmeyi ve buna göre farklı işlemler gerçekleştirmeyi hedefliyor. Her ne kadar hızölçerler şu an için sınırlı yeteneklere sahip olsa da, zaman içerisinde çok daha farklı becerilere kavuşacakları sağlanıyor. Google'ın şu anda hızölçer ile tespit edilebilecek farklı hareketleri tanımlayacak bir veri tabanı oluşturmak üzerinde çalıştığı da söyleniyor.
Fakat bu şu an için sadece bir patent ve Google'ın tam olarak neyi hedeflediğini net bir şekilde açıklamıyor. Yine de Google gibi veri toplamayı seven bir firmanın bu topladığı veriler için çok ilginç kullanım yöntemleri bulacağına şüphe yok.
Alcatel jumps into Mobile Ad with Location Based Services
Alcatel jumps into Mobile Ad with Location Based Services
By SARA SILVER and EMILY STEEL
Alcatel-Lucent is entering the much-hyped market for mobile advertising with a service that will let cellphone carriers offer their customers tailored alerts about a sale at a favorite store or a bank's closest ATM.
The new service, which the big French telecom-equipment maker plans to announce Thursday, will be managed by 1020 Placecast, a San Francisco-based developer of cellphone and online ads tied to a user's location. The closely held firm's clients include Hyatt, FedEx and Avis Rent A Car System.
Alcatel-Lucent's technology identifies cellphone users within a specified distance of an advertiser's nearest outlet and notifies them of the address and phone number. The ad can also include a link to a coupon or other promotion.
The service might be programmed to reach drivers within five miles of a Walnut Creek, Calif., bank or pedestrians within a five-minute walk of a Manhattan shoe store.
The service's debut comes as phone-gear makers are turning to developing services to make up for declining profits from selling equipment. Last fall, Nokia started selling mobile display ads targeted to consumers in 10 metro areas in the U.S. Navteq, a digital-map data company owned by Nokia, has started selling targeted mobile ads based on a consumer's location.
Wireless carriers, meanwhile, are seeking a cut of the revenues from these services.
"This is a vehicle that lets [carriers] extend their network assets" and "grab a share of the revenues that would normally be outside of their reach," says Gani Nayak, president of Alcatel's Rich Communications business. Alcatel will host the new service, testing revenue-sharing models.
Alcatel's service differs from most mobile-ad set-ups because its ads will be beamed only to cellular customers who sign up for them. They can specify when and how frequently they want to receive ads, and from which vendors. A customer could elect to get retail announcements at lunchtime and movie promotions on evenings and weekends.
Amid privacy concerns, marketers are under increasing pressure to limit their digital ads to customers who "opt in," and to make their ads more relevant to those customers. "If [consumers] opt out, the odds that you hear from them ever again are low," says Phuc Truong, managing director at Mobext, a mobile-marketing network of French ad company Havas. "You have one shot to do things right."
In recent years, dozens of companies have raised capital on the premise that advertisers are eager to reach cellphone consumers, whether through text messages or mobile Web sites. If such advertising is targeted to a specific location, rather than citywide, consumers there are three to 10 times as likely to click through the ads, according to Michael Boland, program director of research firm Kelsey Group.
"I call it marketing as a service, not marketing as an intrusion," says Alistair Goodman, chief executive of 1020 Placecast, which uses such factors as neighborhood demographics and the weather to target its ads.
Alcatel and 1020 Placecast hope the service can overcome some of the barriers that have kept mobile advertising a minuscule, though fast-growing, slice of the online-ad market. U.S. mobile ad spending this year is expected to grow 17% from a year earlier to $760 million, according to research firm eMarketer. That compares with a projected $24.5 billion for the U.S. online-ad market.
The spread of high-speed wireless networks and devices with global-positioning chips that pinpoint a user's location hold the promise of creating enough of an audience to justify location-based ad spending. And the popularity of applications running on Apple's iPhone, Research in Motion's BlackBerry devices and other smartphones shows that consumers are accessing mobile information in droves.
For now, however, the technology for location-based ads is running ahead of demand. Ad executives say they need to see more research on how targeting ads based on location translates into sales.
"The question is always the same: Can we drive more sales?" says Alexandre Mars, head of mobile advertising at ad holding company Publicis Groupe and chief executive of its Phonevalley mobile-marketing agency.
Alcatel-Lucent says it is in talks with carriers to start trials this summer, but it declined to identify them. Placecast is also seeking initial advertisers through ad agencies such as AKQA, which runs mobile campaigns for Target, Gap and Diageo's Smirnoff vodka.
By SARA SILVER and EMILY STEEL
Alcatel-Lucent is entering the much-hyped market for mobile advertising with a service that will let cellphone carriers offer their customers tailored alerts about a sale at a favorite store or a bank's closest ATM.
The new service, which the big French telecom-equipment maker plans to announce Thursday, will be managed by 1020 Placecast, a San Francisco-based developer of cellphone and online ads tied to a user's location. The closely held firm's clients include Hyatt, FedEx and Avis Rent A Car System.
Alcatel-Lucent's technology identifies cellphone users within a specified distance of an advertiser's nearest outlet and notifies them of the address and phone number. The ad can also include a link to a coupon or other promotion.
The service might be programmed to reach drivers within five miles of a Walnut Creek, Calif., bank or pedestrians within a five-minute walk of a Manhattan shoe store.
The service's debut comes as phone-gear makers are turning to developing services to make up for declining profits from selling equipment. Last fall, Nokia started selling mobile display ads targeted to consumers in 10 metro areas in the U.S. Navteq, a digital-map data company owned by Nokia, has started selling targeted mobile ads based on a consumer's location.
Wireless carriers, meanwhile, are seeking a cut of the revenues from these services.
"This is a vehicle that lets [carriers] extend their network assets" and "grab a share of the revenues that would normally be outside of their reach," says Gani Nayak, president of Alcatel's Rich Communications business. Alcatel will host the new service, testing revenue-sharing models.
Alcatel's service differs from most mobile-ad set-ups because its ads will be beamed only to cellular customers who sign up for them. They can specify when and how frequently they want to receive ads, and from which vendors. A customer could elect to get retail announcements at lunchtime and movie promotions on evenings and weekends.
Amid privacy concerns, marketers are under increasing pressure to limit their digital ads to customers who "opt in," and to make their ads more relevant to those customers. "If [consumers] opt out, the odds that you hear from them ever again are low," says Phuc Truong, managing director at Mobext, a mobile-marketing network of French ad company Havas. "You have one shot to do things right."
In recent years, dozens of companies have raised capital on the premise that advertisers are eager to reach cellphone consumers, whether through text messages or mobile Web sites. If such advertising is targeted to a specific location, rather than citywide, consumers there are three to 10 times as likely to click through the ads, according to Michael Boland, program director of research firm Kelsey Group.
"I call it marketing as a service, not marketing as an intrusion," says Alistair Goodman, chief executive of 1020 Placecast, which uses such factors as neighborhood demographics and the weather to target its ads.
Alcatel and 1020 Placecast hope the service can overcome some of the barriers that have kept mobile advertising a minuscule, though fast-growing, slice of the online-ad market. U.S. mobile ad spending this year is expected to grow 17% from a year earlier to $760 million, according to research firm eMarketer. That compares with a projected $24.5 billion for the U.S. online-ad market.
The spread of high-speed wireless networks and devices with global-positioning chips that pinpoint a user's location hold the promise of creating enough of an audience to justify location-based ad spending. And the popularity of applications running on Apple's iPhone, Research in Motion's BlackBerry devices and other smartphones shows that consumers are accessing mobile information in droves.
For now, however, the technology for location-based ads is running ahead of demand. Ad executives say they need to see more research on how targeting ads based on location translates into sales.
"The question is always the same: Can we drive more sales?" says Alexandre Mars, head of mobile advertising at ad holding company Publicis Groupe and chief executive of its Phonevalley mobile-marketing agency.
Alcatel-Lucent says it is in talks with carriers to start trials this summer, but it declined to identify them. Placecast is also seeking initial advertisers through ad agencies such as AKQA, which runs mobile campaigns for Target, Gap and Diageo's Smirnoff vodka.
WiMAX to Act as DSL Substitute, Says Juniper
WiMAX to Act as DSL Substitute, Says Juniper
Juniper reports that up to 12% of the global DSL installed base will be substituted by WiMAX by 2013. The Far East will lead with over one fifth of the 47m subscribers in 2013.
A region by region analysis by Juniper Research found that there is a significant opportunity now for WiMAX as a DSL substitute technology. The study explored how WiMAX is well suited to rapid deployment in the many underserved areas, not only in developing areas, but also in developed countries.
Report author Howard Wilcox said: "WiMAX will be an attractive offer in areas where there are no wired networks, and in areas where the existing DSL speed is suboptimal. WiMAX will solve the broadband access problem for users located at the fringes of DSL coverage. This is in fact the case in a number of developed nations such as UK, USA, Ireland and Scandinavia, and WiMAX network operators are deploying networks to address this market need. Additionally in developing countries - such as India - network operators are aiming to provide basic connectivity."
The vast majority of the WiMAX 802.16e trials and network contracts which are being announced almost daily will begin by providing fixed broadband. Mobile usage will develop after initial demand for fixed and portable services - this will be an added benefit for subscribers.
Highlights from the report include:
• The annual fixed WiMAX global market size will exceed 13m subscribers by 2013
• The WiMAX device market - comprising CPE, chipsets, minicards, and USB dongles - will approach $6bn pa by 2013
• The top 3 regions (Far East, N. America and W. Europe) will represent over 60% of the $20bn p.a. global WiMAX service revenues by 2013
However, Howard Wilcox cautioned: "Brand identification and service differentiation are major marketing challenges facing new WiMAX operators. Many of the existing broadband providers are household names that already have widespread market presence and recognition. WiMAX operators will need to identify and promote their USPs, whilst avoiding entering the market on the basis of price."
The report provides five year regional forecasts for WiMAX 802.16e as a 'local loop' technology, providing data on subscribers, service revenues and devices as well as detailed deployment tables and case studies. Juniper Research interviewed senior executives across a wide range of vendors and operators.
Juniper reports that up to 12% of the global DSL installed base will be substituted by WiMAX by 2013. The Far East will lead with over one fifth of the 47m subscribers in 2013.
A region by region analysis by Juniper Research found that there is a significant opportunity now for WiMAX as a DSL substitute technology. The study explored how WiMAX is well suited to rapid deployment in the many underserved areas, not only in developing areas, but also in developed countries.
Report author Howard Wilcox said: "WiMAX will be an attractive offer in areas where there are no wired networks, and in areas where the existing DSL speed is suboptimal. WiMAX will solve the broadband access problem for users located at the fringes of DSL coverage. This is in fact the case in a number of developed nations such as UK, USA, Ireland and Scandinavia, and WiMAX network operators are deploying networks to address this market need. Additionally in developing countries - such as India - network operators are aiming to provide basic connectivity."
The vast majority of the WiMAX 802.16e trials and network contracts which are being announced almost daily will begin by providing fixed broadband. Mobile usage will develop after initial demand for fixed and portable services - this will be an added benefit for subscribers.
Highlights from the report include:
• The annual fixed WiMAX global market size will exceed 13m subscribers by 2013
• The WiMAX device market - comprising CPE, chipsets, minicards, and USB dongles - will approach $6bn pa by 2013
• The top 3 regions (Far East, N. America and W. Europe) will represent over 60% of the $20bn p.a. global WiMAX service revenues by 2013
However, Howard Wilcox cautioned: "Brand identification and service differentiation are major marketing challenges facing new WiMAX operators. Many of the existing broadband providers are household names that already have widespread market presence and recognition. WiMAX operators will need to identify and promote their USPs, whilst avoiding entering the market on the basis of price."
The report provides five year regional forecasts for WiMAX 802.16e as a 'local loop' technology, providing data on subscribers, service revenues and devices as well as detailed deployment tables and case studies. Juniper Research interviewed senior executives across a wide range of vendors and operators.
World's first commercial 4G/LTE site unveiled in Sweden by Ericsson and TeliaSonera
World's first commercial 4G/LTE site unveiled in Sweden by Ericsson and TeliaSonera
Ericsson and TeliaSonera have unveiled the world's first commercial Long-Term Evolution (LTE) site in Stockholm, Sweden - an important milestone in making the mobile digital highway a reality. LTE will transform the mobile-broadband user experience, providing the ultra-high data speeds needed for services such as internet TV, mobile video blogging, on-line video games and the mobile office environment.
The site will be part of a commercial network scheduled to go live in 2010, bringing data rates far above what is possible in today's mobile broadband networks and allowing Stockholmers to stay connected and enjoy seamless, high-quality, online services even while on the move. Ulf Ewaldsson, Vice President and Head of Product Area Radio at Ericsson, says: "The unveiling of this site shows that LTE is no longer the story of the future; it is the story of today. Ericsson, as a leader in LTE development, is proud to work with TeliaSonera to bring a commercial LTE network to life."
Erik Hallberg, Senior Vice President and Head of TeliaSonera Mobility Services in Sweden, says: "Being at the forefront of broadband evolution means our customers will be the first to benefit from this groundbreaking technology. This first LTE site is a key step towards further enhancing Sweden's fastest mobile broadband network." LTE enables unprecedented performance in terms of peak data rates, spectrum efficiency and delay. Ericsson has already demonstrated peak rates of 160Mbps. LTE can be deployed both in new and existing frequency bands and is designed to minimize the cost of network operation and maintenance. The evolution of mobile broadband is an integral factor in building sustainable cities that minimize the use of energy and reduce CO2 emissions.
Ericsson and TeliaSonera have unveiled the world's first commercial Long-Term Evolution (LTE) site in Stockholm, Sweden - an important milestone in making the mobile digital highway a reality. LTE will transform the mobile-broadband user experience, providing the ultra-high data speeds needed for services such as internet TV, mobile video blogging, on-line video games and the mobile office environment.
The site will be part of a commercial network scheduled to go live in 2010, bringing data rates far above what is possible in today's mobile broadband networks and allowing Stockholmers to stay connected and enjoy seamless, high-quality, online services even while on the move. Ulf Ewaldsson, Vice President and Head of Product Area Radio at Ericsson, says: "The unveiling of this site shows that LTE is no longer the story of the future; it is the story of today. Ericsson, as a leader in LTE development, is proud to work with TeliaSonera to bring a commercial LTE network to life."
Erik Hallberg, Senior Vice President and Head of TeliaSonera Mobility Services in Sweden, says: "Being at the forefront of broadband evolution means our customers will be the first to benefit from this groundbreaking technology. This first LTE site is a key step towards further enhancing Sweden's fastest mobile broadband network." LTE enables unprecedented performance in terms of peak data rates, spectrum efficiency and delay. Ericsson has already demonstrated peak rates of 160Mbps. LTE can be deployed both in new and existing frequency bands and is designed to minimize the cost of network operation and maintenance. The evolution of mobile broadband is an integral factor in building sustainable cities that minimize the use of energy and reduce CO2 emissions.
22 May 2009
Kyivstar & MTS continue to lose ground to Turkcell-controlled Astelit in Ukraine
Ukraine mobile users drop 261,000 in April
By Will Bland
Subscribers fall to 55.17m as Kyivstar, MTS continue to lose ground to Astelit. The number of Ukrainian mobile phone subscribers fell by 261,000 in April to 55.17 million, consultants Advanced Communications & Media said Monday.
The country's two biggest operators, Kyivstar, controlled by Norway's Telenor ASA and OAO Mobile TeleSystems, continued to lose market share to Turkcell-controlled Astelit.
AC&M gave the following breakdown of the largest operators' subscriber numbers in the country.
By Will Bland
Subscribers fall to 55.17m as Kyivstar, MTS continue to lose ground to Astelit. The number of Ukrainian mobile phone subscribers fell by 261,000 in April to 55.17 million, consultants Advanced Communications & Media said Monday.
The country's two biggest operators, Kyivstar, controlled by Norway's Telenor ASA and OAO Mobile TeleSystems, continued to lose market share to Turkcell-controlled Astelit.
AC&M gave the following breakdown of the largest operators' subscriber numbers in the country.
Operator March April
Kyivstar 23.05m 22.85m
MTS 17.94m 17.82m
Astelit 11.48m 11.52m
VimpelCom 1.89m 1.88m
Broadband Around the World
Broadband Around the World
By Catherine Rampell
The Organization for Economic Cooperation and Development today released its latest data on broadband access. For broadband penetration, the United States is in the middle of the pack, slightly above average for O.E.C.D. member countries:
By Catherine Rampell
The Organization for Economic Cooperation and Development today released its latest data on broadband access. For broadband penetration, the United States is in the middle of the pack, slightly above average for O.E.C.D. member countries:
Source: O.E.C.D.
But perhaps this makes sense, given that the United States is in and of itself an unevenly developed country. As for affordability, the United States has monthly broadband subscription fees that are slightly more expensive than the average for the O.E.C.D.:
But perhaps this makes sense, given that the United States is in and of itself an unevenly developed country. As for affordability, the United States has monthly broadband subscription fees that are slightly more expensive than the average for the O.E.C.D.:
Source O.E.C.D
19 May 2009
Vodafone & T-Mobile plan mobile VoIP tariffs, instead of blocking
Vodafone & T-Mobile plan mobile VoIP tariffs, instead of blocking
Vodafone Germany and T-Mobile Germany are retreating from their position that they would not sell Nokia devices with Skype included, according to reports in the German press. Both operators have said that they are looking into offering special tariffs for mobile VoIP use instead of blocking all VoIP services for their mobile internet customers.
Vodafone Germany and T-Mobile Germany are retreating from their position that they would not sell Nokia devices with Skype included, according to reports in the German press. Both operators have said that they are looking into offering special tariffs for mobile VoIP use instead of blocking all VoIP services for their mobile internet customers.
18 May 2009
Turk Telekom eyes $1 bln expansion in Eastern Europe
Turk Telekom eyes $1 bln expansion in Eastern Europe
By Moira Sidoti and John Irish
Turkish fixed-line telephone operator Turk Telekom has its sights set on Eastern Europe as it looks to invest as much as $1 billion in acquisitions, an executive from its majority shareholder said.
Oger Telecom chief business development officer Hakam Kanafani told Reuters Financial Television on Saturday that Turk Telekom was studying possible opportunities coming up in Kosovo, Kazakhstan, Romania and Bulgaria.
"In the CIS nations, Asia and the Middle East in general, this is where the growth will happen on the telecommunication and internet side," Kanafani said on the sidelines of the World Economic Forum at the Dead Sea, Jordan.
"Turk Telekom is looking to expand in regions around Turkey." Earlier this year, Turk Telekom's general assembly mandated the management board to make up to $1 billion in acquisitions in 2009. In March, the company submitted a preliminary, non-binding bid for Macedonian mobile phone operator Cosmofon.
Purchase plans coincide with a sharp slowdown in the Turkish economy due to the global financial crisis which has resulted in companies scaling back their investment plans.
Turkish unemployment jumped to a record high of 16.1 percent in the January-March period due to a sharp contraction in the economy.
"I'm not sure whether it will be spent or not but these are sort of opportunities we're looking at in 2009 and 2010," Kanafani said. He said investments could happen once the banking system is "back on its feet."
"There are six million subscribers of ADSL (internet) and based on that that's where we'll be based geographically."
Saudi Telecom Co 7010.SE bought a 35 percent stake in Oger Telecom for about $2.56 billion last year as the former monopoly operator sought to expand into new markets.
Kanafani said Oger was not planning to sell a further stake.
Turk Telekom, controlled by Dubai-based Oger, was listed on the Istanbul bourse in May 2008 when the government reduced its stake to 30 percent by listing a 15 percent holding.
By Moira Sidoti and John Irish
Turkish fixed-line telephone operator Turk Telekom has its sights set on Eastern Europe as it looks to invest as much as $1 billion in acquisitions, an executive from its majority shareholder said.
Oger Telecom chief business development officer Hakam Kanafani told Reuters Financial Television on Saturday that Turk Telekom was studying possible opportunities coming up in Kosovo, Kazakhstan, Romania and Bulgaria.
"In the CIS nations, Asia and the Middle East in general, this is where the growth will happen on the telecommunication and internet side," Kanafani said on the sidelines of the World Economic Forum at the Dead Sea, Jordan.
"Turk Telekom is looking to expand in regions around Turkey." Earlier this year, Turk Telekom's general assembly mandated the management board to make up to $1 billion in acquisitions in 2009. In March, the company submitted a preliminary, non-binding bid for Macedonian mobile phone operator Cosmofon.
Purchase plans coincide with a sharp slowdown in the Turkish economy due to the global financial crisis which has resulted in companies scaling back their investment plans.
Turkish unemployment jumped to a record high of 16.1 percent in the January-March period due to a sharp contraction in the economy.
"I'm not sure whether it will be spent or not but these are sort of opportunities we're looking at in 2009 and 2010," Kanafani said. He said investments could happen once the banking system is "back on its feet."
"There are six million subscribers of ADSL (internet) and based on that that's where we'll be based geographically."
Saudi Telecom Co 7010.SE bought a 35 percent stake in Oger Telecom for about $2.56 billion last year as the former monopoly operator sought to expand into new markets.
Kanafani said Oger was not planning to sell a further stake.
Turk Telekom, controlled by Dubai-based Oger, was listed on the Istanbul bourse in May 2008 when the government reduced its stake to 30 percent by listing a 15 percent holding.
AT&T to offer cloud-based storage as a service
AT&T to offer cloud-based storage as a service
by Jim Finkle
AT&T Inc, the biggest U.S. telephone company, plans to offer Web-based data storage services for corporations using "cloud computing" technologies developed by data storage equipment maker EMC Corp.
The telecommunications giant will join International Business Machines Corp, Amazon.com Inc, Symantec Corp, Iron Mountain Inc and others in offering storage as a service product, which allow companies to use the Internet to transfer information to remote storage facilities. AT&T said on Monday it will initially run the service from two data centers in the United states, although the company intends to expand overseas.
It is still early days for the industry. Market researcher Gartner forecasts that revenue from cloud-based storage and backup services will rise 22 percent this year to about $400 million. Cloud-based storage services charge companies for space as they use it at an agreed rate per gigabyte per month, rather than requiring them to purchase storage equipment in advance or pay for maintaining that gear.
by Jim Finkle
AT&T Inc, the biggest U.S. telephone company, plans to offer Web-based data storage services for corporations using "cloud computing" technologies developed by data storage equipment maker EMC Corp.
The telecommunications giant will join International Business Machines Corp, Amazon.com Inc, Symantec Corp, Iron Mountain Inc and others in offering storage as a service product, which allow companies to use the Internet to transfer information to remote storage facilities. AT&T said on Monday it will initially run the service from two data centers in the United states, although the company intends to expand overseas.
It is still early days for the industry. Market researcher Gartner forecasts that revenue from cloud-based storage and backup services will rise 22 percent this year to about $400 million. Cloud-based storage services charge companies for space as they use it at an agreed rate per gigabyte per month, rather than requiring them to purchase storage equipment in advance or pay for maintaining that gear.
Bharti Airtel Crosses 100 Million Customers Mark
Bharti Airtel Crosses 100 Million Customers Mark
Over the last decade the Indian Telecom sector has grown by leaps and bounds, this is due to its services being very affordable as compared to that of any other country. As a result it is not surprising that Bharti Airtel, India's largest mobile operator has crossed the 100 million customers mark. With this Bharti Airtel becomes the third largest single country mobile services operator and sixth largest in-country integrated telecom operator in the world.
Having reached this milestone, Bharti Airtel has announced a series of network augmentation and customer service initiatives. On the network front, Airtel will roll out 100,000 BTS sites by this year end to set up wider and deeper network coverage across the country. The company is also planning to transform its entire fixed line network to IP/Broadband over a phased manner, which will enable it to offer advanced services like High-speed internet, Triple Play, Media-rich VAS, MPLS, VPN for both Retail and Business customers.
On the customer service front, Airtel has started a set of initiatives to empower the customer and currently it's Self Service Option over SMS. As around 60% of Airtel's customer additions come from rural areas, Airtel has already set up 14,000 Airtel Service Centers and going forward the company is looking at having over 100,000 such centers across the country by March 2010.
Over the last decade the Indian Telecom sector has grown by leaps and bounds, this is due to its services being very affordable as compared to that of any other country. As a result it is not surprising that Bharti Airtel, India's largest mobile operator has crossed the 100 million customers mark. With this Bharti Airtel becomes the third largest single country mobile services operator and sixth largest in-country integrated telecom operator in the world.
Having reached this milestone, Bharti Airtel has announced a series of network augmentation and customer service initiatives. On the network front, Airtel will roll out 100,000 BTS sites by this year end to set up wider and deeper network coverage across the country. The company is also planning to transform its entire fixed line network to IP/Broadband over a phased manner, which will enable it to offer advanced services like High-speed internet, Triple Play, Media-rich VAS, MPLS, VPN for both Retail and Business customers.
On the customer service front, Airtel has started a set of initiatives to empower the customer and currently it's Self Service Option over SMS. As around 60% of Airtel's customer additions come from rural areas, Airtel has already set up 14,000 Airtel Service Centers and going forward the company is looking at having over 100,000 such centers across the country by March 2010.
11 May 2009
Verizon MiFi - Pocket-sized 3G to WiFi Gateway
Verizon Wireless MiFi Lets Wi-Fi Devices Tap 3G Connectivity
by Geoff Duncan
Verizon's forthcoming MiFi 2200 lets up to five Wi-Fi devices - like laptops, phones, media players, gaming devices, and cameras - tap into Verizon's 3G network.
If you've ever been out and about with your Wi-Fi enabled gear, you've probably thought to yourself that it would be cool if you could tap into a mobile 3G network instead of having to hunt around for an open Wi-Fi hotspot. Verizon Wireless has been thinking the same thing, and has just announced its forthcoming MiFi 2200 Intelligent Mobile Hotspot, a small, portable device that enables up to five nearby Wi-Fi gadgets to tap into Verizon's 3G mobile network to upload photos and video, check email, surf the Web, or tap into digital media. But, of course, all this convenience comes with a price: a two-year contract and bandwidth caps, or paying full price and then $15 every time you want 24 hours' access to Verizon's 3G network.
Developed by Novatel Wireless, the MiFi 2200 is designed to be small enough to fit in a pocket or bag, and features integrated Wi-Fi and CDMA antennas—one for connecting to local Wi-Fi devices, and the other for tapping into Verizon's 3G network. The MiFi 2200 sports a rechargeable battery that Verizon Wireless says can offer up to four hours of connectivity on a single charge and up to 40 hours of standby time.
However, for all its convenience, using the MiFi 2200 won't necessarily come cheap: Verizon Wireless plans to offer it for $99.99 after a $50 mail-in rebate…and that's only if customers sign up for a two-year service contract, just like a mobile phone. Options include paying $39.99 a month for 250 MB of data transfer (plus $0.10 for every megabyte over the limit), or paying $59.99 a month for up to 5 GB of data transfer plus $0.05 for every megabyte over the limit. Leaving out taxes and fees, the MiFi 2200 comes in at over $1,000 over two years—or over $1,500 for two years on the 5 GB data plan. Folks who balk at that price can opt to pay "full retail price" for the MiF 2200—Verizon Wireless hasn't said what that might be—then pay Verizon $15 every time they want to access Verizon's 3G network for a 24-hour period.
The MiFi 2200 is scheduled to go on sale May 17.
by Geoff Duncan
Verizon's forthcoming MiFi 2200 lets up to five Wi-Fi devices - like laptops, phones, media players, gaming devices, and cameras - tap into Verizon's 3G network.
If you've ever been out and about with your Wi-Fi enabled gear, you've probably thought to yourself that it would be cool if you could tap into a mobile 3G network instead of having to hunt around for an open Wi-Fi hotspot. Verizon Wireless has been thinking the same thing, and has just announced its forthcoming MiFi 2200 Intelligent Mobile Hotspot, a small, portable device that enables up to five nearby Wi-Fi gadgets to tap into Verizon's 3G mobile network to upload photos and video, check email, surf the Web, or tap into digital media. But, of course, all this convenience comes with a price: a two-year contract and bandwidth caps, or paying full price and then $15 every time you want 24 hours' access to Verizon's 3G network.
Developed by Novatel Wireless, the MiFi 2200 is designed to be small enough to fit in a pocket or bag, and features integrated Wi-Fi and CDMA antennas—one for connecting to local Wi-Fi devices, and the other for tapping into Verizon's 3G network. The MiFi 2200 sports a rechargeable battery that Verizon Wireless says can offer up to four hours of connectivity on a single charge and up to 40 hours of standby time.
However, for all its convenience, using the MiFi 2200 won't necessarily come cheap: Verizon Wireless plans to offer it for $99.99 after a $50 mail-in rebate…and that's only if customers sign up for a two-year service contract, just like a mobile phone. Options include paying $39.99 a month for 250 MB of data transfer (plus $0.10 for every megabyte over the limit), or paying $59.99 a month for up to 5 GB of data transfer plus $0.05 for every megabyte over the limit. Leaving out taxes and fees, the MiFi 2200 comes in at over $1,000 over two years—or over $1,500 for two years on the 5 GB data plan. Folks who balk at that price can opt to pay "full retail price" for the MiF 2200—Verizon Wireless hasn't said what that might be—then pay Verizon $15 every time they want to access Verizon's 3G network for a 24-hour period.
The MiFi 2200 is scheduled to go on sale May 17.
Ericsson: No plans for 3G femtocell
Ericsson: No plans for 3G femtocell
Ericsson said it doesn't understand the business case for 3G femtocells. The infrastructure giant released a GSM femtocell in 2007, but said it would wait to see how the market develops in 2009 to see whether it would follow up with 3G version. With 2009 now here, Ericsson said it still is unconvinced, executives said during the company's Capital Markets Day event in Boston last week.
Ericsson SVP and head of business unit networks Johan Wibergh told Unstrung that at this point, WiFi is solving the problem of improving data coverage in the home, while 2G femtocells serve to improve voice coverage. Ericsson also believes there may be interference problems when users install femtocells in dense areas where 3G networks are already running. Wibergh added that 3G femtocells "might be suitable for rural deployments."
While Ericsson isn't planning on developing any 3G femtocells, Wibergh said the vendor will work with carriers to make other vendors' equipment work with Ericsson infrastructure.
However, Airvana recently released the results of a performance test of the company's HubBub CDMA femtocell that revealed the product can significantly improve indoor 3G coverage and broadband performance when compared with an existing macro-cellular network alone. Airvana said a side-by-side test showed a typical HubBub user can expect to achieve broadband data rates throughout the house of about five times that of the existing wireless macro network.
Signals Research Group has also pointed to considerable cost savings associated with offloading data traffic onto femtocells. The firm's recent study finds the costs savings associated with offloading as little as 1.4 GB of HSPA data or 1.3 GB of EV-DO Rev. A data per month onto a femtocell justifies an operator offering a customer a free femtocell.
Ericsson said it doesn't understand the business case for 3G femtocells. The infrastructure giant released a GSM femtocell in 2007, but said it would wait to see how the market develops in 2009 to see whether it would follow up with 3G version. With 2009 now here, Ericsson said it still is unconvinced, executives said during the company's Capital Markets Day event in Boston last week.
Ericsson SVP and head of business unit networks Johan Wibergh told Unstrung that at this point, WiFi is solving the problem of improving data coverage in the home, while 2G femtocells serve to improve voice coverage. Ericsson also believes there may be interference problems when users install femtocells in dense areas where 3G networks are already running. Wibergh added that 3G femtocells "might be suitable for rural deployments."
While Ericsson isn't planning on developing any 3G femtocells, Wibergh said the vendor will work with carriers to make other vendors' equipment work with Ericsson infrastructure.
However, Airvana recently released the results of a performance test of the company's HubBub CDMA femtocell that revealed the product can significantly improve indoor 3G coverage and broadband performance when compared with an existing macro-cellular network alone. Airvana said a side-by-side test showed a typical HubBub user can expect to achieve broadband data rates throughout the house of about five times that of the existing wireless macro network.
Signals Research Group has also pointed to considerable cost savings associated with offloading data traffic onto femtocells. The firm's recent study finds the costs savings associated with offloading as little as 1.4 GB of HSPA data or 1.3 GB of EV-DO Rev. A data per month onto a femtocell justifies an operator offering a customer a free femtocell.
6 May 2009
Gartner: Mobile VoIP Is Coming, Slowly
Gartner: Mobile VoIP Is Coming, Slowly
Richard Martin
Mobile VoIP services will eventually make up more than half of total mobile voice traffic, according to new research from Gartner – but it’s going to take a decade to reach that point.
“Ten years from now, more than half of mobile voice traffic will be carried end-to-end using VoIP,” said Akshay Sharma, a Gartner research director, in a statement.
The obstacles to more rapid adoption of mobile VoIP include the slow roll out of 4G broadband networks, due in part to the current recession, and the carriers’ hub-and-spoke model of deploying 4G in major metro areas and spreading out from there.
Thus while non-network-based competitors using VoIP will pose a “huge and direct” challenge to the carriers’ nearly $700 billion global voice market, they have plenty of time to adapt if they begin now, says the research firm’s new report, “Emerging Technology Analysis: Mobile VoIP, Global Consumer Communications Services.”
“Mass-scale adoption of end-to-end mobile VoIP calling will not happen until fourth-generation (4G) networks are fully implemented in 2017,” said Tole Hart, research director at Gartner.
Some of the twists and turns that the adoption of mobile VoIP faces were highlighted by a pair of related news developments. In its new set of guidelines for the forthcoming Windows Market for Mobile application store, Microsoft has banned “applications that enable VoIP (Voice over IP) services over a mobile operator network.” Officials of the European Union, meanwhile, have indicated that they will force mobile operators to allow VoIP calls on handsets.
At any rate, voice service may become less paramount over the coming years: “The biggest competitors to mobile VoIP may be text messaging and e-mail,” Gartner stated, because text-based communications are easier, faster, and “less emotional.”
Richard Martin
Mobile VoIP services will eventually make up more than half of total mobile voice traffic, according to new research from Gartner – but it’s going to take a decade to reach that point.
“Ten years from now, more than half of mobile voice traffic will be carried end-to-end using VoIP,” said Akshay Sharma, a Gartner research director, in a statement.
The obstacles to more rapid adoption of mobile VoIP include the slow roll out of 4G broadband networks, due in part to the current recession, and the carriers’ hub-and-spoke model of deploying 4G in major metro areas and spreading out from there.
Thus while non-network-based competitors using VoIP will pose a “huge and direct” challenge to the carriers’ nearly $700 billion global voice market, they have plenty of time to adapt if they begin now, says the research firm’s new report, “Emerging Technology Analysis: Mobile VoIP, Global Consumer Communications Services.”
“Mass-scale adoption of end-to-end mobile VoIP calling will not happen until fourth-generation (4G) networks are fully implemented in 2017,” said Tole Hart, research director at Gartner.
Some of the twists and turns that the adoption of mobile VoIP faces were highlighted by a pair of related news developments. In its new set of guidelines for the forthcoming Windows Market for Mobile application store, Microsoft has banned “applications that enable VoIP (Voice over IP) services over a mobile operator network.” Officials of the European Union, meanwhile, have indicated that they will force mobile operators to allow VoIP calls on handsets.
At any rate, voice service may become less paramount over the coming years: “The biggest competitors to mobile VoIP may be text messaging and e-mail,” Gartner stated, because text-based communications are easier, faster, and “less emotional.”
Alcatel Confident Despite Loss
Alcatel Confident Despite Loss
Though he had to report a $536.6 million loss for the quarter, Alcatel-Lucent chief executive Ben Verwaayen assured investors that his cost-cutting and restructuring plans will continue apace. Investors were heartened by his outlook and shares in the company rose in late trading.
Shares of Alcatel-Lucent rose 0.2%, to 1.96 euros ($2.62), during late trading in Paris on Tuesday, recovering from an early-morning loss of around 6.0%. The stock is still up 36.9% since Feb. 5, buoyed by improved market sentiment surrounding technology companies like Ericsson and Nokia.
On a conference call to announce the results, Verwaayen called 2009 a "transition year" and said it would present a foundation on which to produce much better results. He said that the unsatisfactory quarterly performance would not change the company's 2009 guidance.
"There was nothing new on the call, but the company was confident of being able to reach its goals," said Roland Pitz, an analyst with Unicredit.
Alcatel-Lucent hopes to break even this year on an adjusted operating-profit level, which would exclude restructuring costs, asset write-downs, one-off gains and the knock-on effects of the merger that created the company in the first place. France's Alcatel bought American company Lucent Technologies in 2006, in an all-share deal worth more than $13.0 billion.
The company reported a double-digit decline in North American sales in the first quarter, and said that product mix and volumes had knocked 4.7 percentage points off its gross margin over the year. CEO Verwaayen is trying to slim the company down by slashing management positions and contractors--Alcatel has cut 290 management positions out of a planned 1,000, along with 770 contractors out of a planned 5,000--but he will need to play more cards to fully regain investor confidence.
Sal. Oppenheim analyst Nicolas von Stackelberg said that Alcatel's cash burn over the quarter was a concern, with net debt doubling to 841 million euros ($1.1 billion) in three months--but the company's sale of its stake in Thales should offset the need for more capital.
Though he had to report a $536.6 million loss for the quarter, Alcatel-Lucent chief executive Ben Verwaayen assured investors that his cost-cutting and restructuring plans will continue apace. Investors were heartened by his outlook and shares in the company rose in late trading.
Shares of Alcatel-Lucent rose 0.2%, to 1.96 euros ($2.62), during late trading in Paris on Tuesday, recovering from an early-morning loss of around 6.0%. The stock is still up 36.9% since Feb. 5, buoyed by improved market sentiment surrounding technology companies like Ericsson and Nokia.
On a conference call to announce the results, Verwaayen called 2009 a "transition year" and said it would present a foundation on which to produce much better results. He said that the unsatisfactory quarterly performance would not change the company's 2009 guidance.
"There was nothing new on the call, but the company was confident of being able to reach its goals," said Roland Pitz, an analyst with Unicredit.
Alcatel-Lucent hopes to break even this year on an adjusted operating-profit level, which would exclude restructuring costs, asset write-downs, one-off gains and the knock-on effects of the merger that created the company in the first place. France's Alcatel bought American company Lucent Technologies in 2006, in an all-share deal worth more than $13.0 billion.
The company reported a double-digit decline in North American sales in the first quarter, and said that product mix and volumes had knocked 4.7 percentage points off its gross margin over the year. CEO Verwaayen is trying to slim the company down by slashing management positions and contractors--Alcatel has cut 290 management positions out of a planned 1,000, along with 770 contractors out of a planned 5,000--but he will need to play more cards to fully regain investor confidence.
Sal. Oppenheim analyst Nicolas von Stackelberg said that Alcatel's cash burn over the quarter was a concern, with net debt doubling to 841 million euros ($1.1 billion) in three months--but the company's sale of its stake in Thales should offset the need for more capital.
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