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Category: Telecom

Retail News Asia is committed to providing both local and global retailers with the latest Telecom & Telco news throughout the Asian market. This on a daily base.

  • RCom cleared to merge with SSTL

    RCom cleared to merge with SSTL

    India’s Reliance Communications (RCom) has secured approval from the Department of Telecom to merge with Sistema Shyam Teleservices (SSTL), operator of the MTS India brand.

    The telecoms ministry has granted final approval for the share swap deal.

    Under the terms of the merger agreement, SSTL shareholders will receive a 10% stake in RCom. RCom will meanwhile take on SSTL’s spectrum installment payment obligations, which amount to 3.9 billion rupees ($59.9 million) per year for eight years.

    RCom will in return acquire around 2 million new customers, as well as 30 MHz of 800-MHz spectrum in eight of India’s 22 telecoms circles including Delhi.

    The operator projects that the merger will contribute additional annual revenue of around 7 billion rupees. RCom reported total revenue of 35.9 billion rupees for the year ending in June, down 33% year-on-year.

    RCom had also been pursuing a merger with Aircel as part of the wave of consolidation sweeping India’s mobile market, but this deal collapsed recently due to regulatory uncertainty and opposition from some of the operator’s creditors. The operator is seeking to reduce its roughly $6.8 billion in debt by around $3 billion, and may pursue an asset fire sale to achieve this goal.

  • Vietnam’s Mobile World plans pharmacy chain

    Vietnam’s Mobile World plans pharmacy chain

    Vietnam’s Mobile World is recruiting pharmacists, with a plan to expand into pharmacy retailing.

    In a job ad on Pharmalink, Mobile World is seeking experienced pharmacists to set up business, train employees and help operate a pharmacy chain.

    Mobile World’s representative confirmed its plan to test new business model without revealing the numbers of stores to be set up.

    In shareholders’ meeting in March, Mobile World’s president Ngo Duc Tai shared the group’s expansion plan by merger and acquisition (M&A) deals in groceries, pharmacy and others, with a budget of US$110 million.

    Ngo revealed that in upcoming years, the group might test medicine retailing via M&A with some pharmacy chains which already has 10-15 stores, and would expand to 500 stores.

    In August, Mobile World finished its first M&A deal with Tran Anh electronics chain.

  • China – the world’s biggest 5G market in 2025?

    China – the world’s biggest 5G market in 2025?

    According a study conducted by GSMA Intelligence and the China Academy of Information and Communications Technology (CAICT), China is set to become the world’s largest 5G mobile market in 2025.

    The China 5G study predicts that 5G connections in China are expected to reach 428 million by 2025, accounting for 39% of the 1.1 billion global 5G connections expected by that point.

    The country’s three major mobile operators – China Mobile, China Unicom, and China Telecom – are stepping up their efforts towards 5G deployment, with plans to run a phased testing period for 5G networks from 2017 to 2019 before launching commercially in 2020.

    China Mobile, for example, early this year started conducting the first phase of its 5G field trials in five major cities across the country with Datang, Huawei, ZTE, Nokia and Ericsson. The first phase of the trial will focus on PoC system field trials this year and the operator will move to pre-commercial trials for interoperability tests in 20 sites or cities next year, said Wang Xiaoyun, general manager of technical department at China Mobile.

    The trial is expected to expand to over 100 sites or cities in 2019, before the rollout proceeds to the commercial launch stage in 2020, Wang told reporters at Mobile World Congress Barcelona in February. China Mobile has also set up what it claims is the world’s largest 5G field trial in Huairou district in northern Beijing, he said.

    Together with these partners, China Mobile has conducted trials of key technologies including massive MIMO on the 3.5GHz band, as well as carried out performance testing of mmWave spectrum on different frequency bands, such as 15GHz, 28GHz and 73GHz, said Wang.

    China Unicom and China Telecom also plans to test capacity and performance across six cities over 2017-2019 before a commercial launch in 2020.

    Chinese cellcos go for “standalone” 5G deployment

    The study further points out that the three Chinese mobile carriers are expected to deploy ‘standalone’ 5G networks, which will require the construction of new base stations to site 5G equipment, backhaul links and a core network.

    That said, 5G investment in China will follow a more gradual path compared to elsewhere in Asia and over a longer timeframe than 4G, roughly seven years, from 2018 to 2025-with capex not expected to account for more than 25% of operator revenue prior to commercial launch.

    The rate of 5G network deployment and adoption in China is also expected to be slower than it was for 4G, which Chinese operators were able to deploy rapidly earlier this decade within a mature 4G ecosystem. In their early phase, 5G networks will concentrate on boosting the capacity of 4G networks to support rising cellular data traffic demands.

    Though some services will require devices with new form factors, the smartphone is expected to remain the principal 5G interface at launch. Enterprise is considered to offer operators the largest incremental revenue opportunity. Key vertical markets for 5G applications include automotive and transport, logistics, energy and utilities monitoring, security, finance, healthcare, industrial and agriculture.

  • SKT unveils Wi-Fi tech with 5G speeds

    SKT unveils Wi-Fi tech with 5G speeds

    SK Telecom has unveiled a self-developed Wi-Fi technology capable of delivering speeds of up to 4.8Gbps.

    The Wi-Fi technology and access point  is based on the new IEEE 802.11ax standard. It can deliver speeds nearly four times faster than the 1.3Gbps achievable with 802.11ac gigabit Wi-Fi

    The technology uses four antennas to transmit data over 160 MHz of bandwidth – twice that of 802.11ac, operating in both the 2.4-GHz and 5-GHz frequency bands.

    In addition, the Wi-Fi technology supports orthogonal frequency-division multiple access (OFMDA), multi-user MIMO (MU-MIMO) and dynamic sensitivity control (DSC) technology to improve the efficiency of the network.

    SK Telecom plans to start deploying access points for the next generation Wi-Fi next year, concentrating on high traffic density areas. Handsets with chipsets compatible with 802.11ax will be able to benefit from the technology.

    The operator has constructed a Wi-Fi testbed within its R&D center in Bundang to test performance of the technology in various deployment scenarios, and is working on upgrading access points to be commercially deployable by the end of 2017.

    SK Telecom SVP and head of network R&D Park Jin-hyo said the next-generation Wi-Fi technology is expected to be an important complement to 5G networks.

    “By introducing the technology for the next generation Wi-Fi that can deliver as fast as 5G technology, we at SK Telecom have successfully laid foundation to offer better mobile services,” he said.

    “We are thrilled to work on the preparation on commercializing the technology and continue to innovate our capabilities to provide differentiated services to our customers.”

  • Myanmar to launch own satellite in 2019

    Myanmar to launch own satellite in 2019

    The Myanmar government plans to launch its own communications satellite in June 2019 at a cost of $155.7 million.

    MyanmarSat 2 will have six C-band transponders and six KU-Band transponders with 864MHz of total bandwidth.

    The satellite will be at least partly owned by the government, unlike the MyanmarSat 1 which is being used under a lease model.

    The government is considering three potential ownership models – paying to lease a condosat transponder from another country, a joint ownership model or total ownership of the system. The joint ownership model has been favored by the Union Minister of Transport and Communications.

    Because the project would be most effective if all the capacity of the satellite is being utilized, the government is also exploring co-operation with the private sector. State-owned MPT has already proposed to lease 72MHz of the satellite’s total capacity.

    News of the Myanmar project came days after the Cambodian government announced plans to launch its first communications satellite by as early as 2021. This project also has an estimated budget of around $150 million.

  • SAP uses machine learning to optimize shop experience

    SAP uses machine learning to optimize shop experience

    SAP this week introduced new technologies ranging from facial recognition, machine learning and IoT to enable targeted marketing campaigns and help consumers optimize their shopping experience.

    Offered through SAP Hybris Marketing Cloud, the new capabilities encompass an array of solutions to help companies ensure they use the right messages to target key customers, while ensuring that customers’ data and privacy are protected.

    One notable component would be the SAP Leonardo digital innovation system which offers facial recognition technology to help retailers engage in-store shoppers. Using facial analysis, the software connects shoppers’ genders and ages to a company or store’s available inventory and stock, enabling personalized product recommendations presented on large displays.

    The SAP Hybris Customer Attribution meanwhile provides marketers with accurate measurements of marketing campaigns and activities that lead to a customer purchase. Data is collected across all touch points of the customer journey, giving insight into what’s driving customer conversions and where to reallocate activities and budget in real time.

    With a nod towards the growing influence of the Chinese social media application WeChat, SAP also announced WeChat integration for SAP Hybris to help marketers expand their global footprint to more than 889 million users across China.

    The need for ensuring customers’ data and privacy is not an unimportant capability too. According to the 2017 SAP Hybris Consumer Insights Report, SAP found that the fastest way to lose customers is to share their data without their knowledge.

    On the other hand, the survey of 20,000 shoppers worldwide found that the easiest way to keep customers happy is to be responsive; nine out of 10 customers (89%) expect an answer to their query within 24 hours.

    On the most part, brands should not shy away from seeking more information about their customers: Four out of five shoppers (80%) are willing to share some of their customer data with brands, with Colombia and India being the most inclined (92%) and with Japan being the least inclined (52%).

    Respondents from all countries, except Russia, are willing to share their e-mail addresses, but only half of Middle East-based consumers want to share their mobile phone numbers.

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  • Dtac profit falls 8.8% in Q3

    Dtac profit falls 8.8% in Q3

    Thailand’s Dtac has reported an 8.8% year-on-year decrease in net profit for the third quarter of 2017 as a result of declining revenue and costs associated with network investment.

    The operator reported a profit for the quarter of 601 million baht ($18.1 million), from 3.7% lower revenue of 18.81 billion baht. Service revenue fell 1.5% year-on-year to 15.96 billion baht.

    Voice revenue fell 36% year-on-year to 3.52 billion baht due to ongoing voice to data substitution, while data revenue increased 19% year-on-year to 11.15 billion baht. Handset and starter kit sales meanwhile fell 6% year-on-year due to controls on handset subsidies.

    Dtac’s total customer base meanwhile fell 6.9% year-on-year to 23.1 million, with postpaid net additions reaching 134,000 while prepaid subscribers fell by 642,000.

    The operator’s bottom line was also impacted by higher network opex and depreciation costs associated with its network rollout. Total cost of services increased 3.4% year-on-year to 10.97 billion baht and network opex grew 9% over the same period to 1.69 billion baht.

    For the full year, Dtac has maintained its outlook of flat service revenues and an ebtida at least as high as in 2016. The company expects its total capex for the year to be in the range of 17 billion to 20 billion baht.

    “Market competition is expected to remain intense. Attractive handset offerings continue to be employed to attract high value customers, and prepaid handset subsidies are expected to persist although at a less aggressive level,” Dtac said in its third quarter report.

    “Data services remain a growth driver thanks to higher demand from the growth of streaming services and superior 4G experience… We aim to gain consumers’ confidence with improving data network, digital products and services, and value for money position, and become [the top] digital brand in Thailand by 2020.”

  • LG U+, Huawei validate 4G-5G dual connectivity

    LG U+, Huawei validate 4G-5G dual connectivity

    South Korea’s LG U+ has collaborated with Huawei to complete technology verification for 4G-5G dual-connectivity technology.

    The field test involved linking a 3.5-GHz base station with a 28-GHz base station to allow terminals to simultaneously connect to both, achieving a peak downlink rate of around 20Gbps.

    It involved the use of two base stations at a LG U+ 5G testbed in Seoul. The operator had already verified the technology in a laboratory environment.

    LG U+ director of 5G strategy Kim Dae Hee said dual connectivity technology will provide the foundation for 4G-5G heterogeneous networks.

    “By demonstrating ‘Dual-Connectivity’ technology, which will play a key role in multi-operation of 4G and 5G wireless base stations, we will develop various next-generation technologies to provide a 5G service.”

    LG U+ and Huawei have been collaborating on 5G development since the two companies signed a 5G collaboration agreement in July 2015. Last month, the companies completed the first phase of an urban field test of 5G over the 28-GHz band.

    The companies pledged to continue to carry out 5G technical cooperation and verification activities in advance of the planned commercial deployment of the technology in time for the 2018 Winter Olympics in PyeongChang.

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  • ZTE launches total pre 5G solution

    ZTE launches total pre 5G solution

    ZTE has announced the launch of what the vendor is calling a total pre5G solution designed to allow existing 4G subscribers to experience 5G-like services.

    The solution combines 5G enabling technologies and architectures including pre5G massive multiple input multiple output (MIMO) and 4×4 MIMO.

    The pre5G portfolio also includes ZTE’s Cloud ServCore, a cloud native NFV-based 5G network functions management solution and its Cloud RAN product.

    In addition, 5G-oriented service applications including high data rate services such as ultra HD and virtual reality streaming and massive IoT applications based on narrowband IoT and enhanced machine-type communications (eMTC).

    Announcing the new offering, ZTE said 4G is expected to continue to dominate the market for up to a decade even as 5G deployments get underway. As a result, 4G network evolution and 5G rollouts will continue in tandem, so pre5G configurations will likely co-exist with full 5G deployments.

    The company said its pre5G related products and solutions have so far been deployed in more than 60 networks across more than 40 countries, including China, Japan, Austria, Belgium, Spain, Singapore, Malaysia, Thailand and Indonesia.

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  • GTT deploys new low latency routes

    GTT deploys new low latency routes

    Yesterday, GTT Communications announced a series of new low latency routes around the globe, and simultaneously launched a new time  synchronization service.

    The new low latency routes include Hong Kong to Tokyo, Hong Kong to Singapore, Mumbai to Singapore, New York City-Mexico City and Johannesburg to London. They bring the company’s total low-latency portfolio to more than 60 routes connecting over 130 financial exchanges.

    Meanwhile GTT’s time synchronization service aims to give financial customers a single source of time across their global trading footprints.

    This answers the question of what one gets when one combine’s Hibernia Networks’ financial business and transatlantic cable with the international network relationships that GTT acquired with the earlier deal for the Inteliquent/Tinet backbone.

    GTT’s more recent M&A moves have been in the US with the acquisition of Global Capacity and pending purchase of Transbeam. However, I wonder whether the next targets might come from overseas.

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  • Myanmar internet-led models yet to scale but heading towards transactional phase

    Myanmar internet-led models yet to scale but heading towards transactional phase

    New internet-enabled businesses are making an appearance in frontier Myanmar, which is witnessing a telecom boom period with operators putting their might on expanding network infrastructure to meet the growing demand for data services.

    While e-commerce and consumer internet startups are yet to scale, they are slowly heading towards the “transactional” phase and launching new models borrowing from successful regional ideas but adapting them to the local market.

    Consider these developments: In the new office in Mingalar Taung Nyunt township of local content creator Myanmar Online Creations (MOC), an employee at  Onlyinburma.com, targeted to be a destination point for locals, and Langyaung.com, a local business directory, is busy uploading content for the sites.

    The company has got five apps running since its launch late last year and it is already looking to roll out a few more to touch 10 apps by the end of 2017. MOC, led by Win Ohn, also the CEO and president of Canada-based MediaNation, aims to bring new dotcom technology in Myanmar language.

    Meanwhile, in mid-August, an online wedding gift service platform named MingalarLetPhwet.com was launched to address the issue of unwanted and repetitive wedding gifts. The site has brought together suppliers of over 5,000 wedding gift related products while it is free to use for customers.

    In July, Swiss media group Ringier and Myanmar-based Information Matrix Co Ltd joined hands for their ventures, marry.com.mm (based on popular Vietnamese model marry.vn) and parenting platform kalay.com.mm. Revenue model for these engines are built around wedding fairs and workshops.

    The market also saw the launch of Flair Eyes, which allows local photographers to upload photos and video clips for use through a subscription or per piece basis.

    Ecosystem enablers

    The development of such business oriented platforms indicate the improved contribution from different stakeholders in the ecosystem in Myanmar since the military ceded power in 2011.

    The expansion of the telecom market, since the approval of foreign telecom operators, Telenor and Ooredoo, has by May 2016 reached a coverage of 43.72 million compared to the country’s total population of 54 million. Also compare the current SIM card cost K1500 ($1.3) to the previaling rates of  a staggering K4000,000 ($3,412) in 2006.

    Apart from the favourable macro indicators, the region is also beginning to see action surrounding funding of startups. Ride hailing platforms like Uber and Grab’s announcement of $100 million investment in Myanmar has captured the attention of investors.

    Recent startup funding developments include freelancing platform Chate Sat and comic application White Merak raising a six-digit investment each. JobNet.com.mm, a job website under the umbrella of MMOne Online Co Ltd, also raised a seven digit investment this year. Prior to that, their sister company, ShweProperty.com raised a six digit sum from some institutional investors.

    Other significant updates from the startup world include MyPlay’s acquisition by ASX-listed iSentric and Malaysian movie streaming company iflix establishing presence in Myanmar.

    Sumit Jasoria, MD, shop.com.mm feels, “the mindset has changed after global players came in. Local investors are also looking at the right team.”

    Ohn says, what is currently hurting e-commerce adoption and growth is lack of universal gateway. However, online retailers and users have seemingly found a way around it by relying on cash on delivery option. “It is a ‘a very creative way and a grassroot step as we evolve into e-commerce shopping and buying. I forsee a lot of solutions addressing the universal online banking credit card payment solution,” said Ohn.

    Meanwhile, a lot of payment solutions are appearing to address the issue of online payments such as Wave Money, a financial service provider of Telenor and Yoma Bank; Ooredoo’s mobile wallet M-Pitesan and 1-Stop, a partnership between Singapore-based payment service 2C2P and Myanma Awba.

    Popular retail platforms like Rocket Internet’s shop.com.mm is experimenting with offering more discounts on usage of card payments. “The idea is to create an ecosystem which helps consumers to also try cards,” said Sumit Jasoria, managing director of shop.com.mm, which has been in Myanmar for three years.

    He argues that 70 per cent of businesses in neighboring Asian countries are still using cash on delivery while the number for Myanmar is just higher, making about 90 per cent. “I think it is catching up, soon it will change for sure,” said Jasoria.

    Internet models, local twist

    Jes Kaliebe Petersen, CEO of Phandeeyar a leading Innovation Lab in Myanmar, says, the next wave of startups will be targeting a much broader audience, people present outside the city, and the new generation of smart phone users. The majority of those residing outside large cities in Myanmar use data only for Facebook and Viber.

    “The business that will emerge as the leaders in the area (online business platforms) are those who manage to handle the logistics and payments issues in a reliable manner and get people not just to buy on Facebook but also from their own apps,” said Petersen.

    A recent survey by MyanZen – the winner of Telenor Myanmar’s first accelerate program that allows social sellers to effectively sell on social network – shows that there are over 3,500 Facebook stalls involved in online shopping business in Myanmar.

    While the emergence of new business ideas are keeping up, Ohn says, it is encouraging to see a lot of companies like them starting to build the platforms and grow the awareness of the general public.

    Business ideas, that are successful in neighbouring countries, find favour in Myanmar.

    “We will always encourage the people in our accelerator to look at what’s going on elsewhere and use that as an inspiration for what can be done in Myanmar,” said Petersen.

    Shop.com.mm is also starting to replicate models of Daraz’ work in other countries and introducing fashion related products from Korea and Thailand on their platform after evaluating the consumer preference in Myanmar.

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  • PT Telkom adopts Palo Alto firewalls

    PT Telkom adopts Palo Alto firewalls

    Indonesia’s PT Telkom has moved to strengthen its security capabilities by adopting Palo Alto Networks’ next-generation firewalls.

    The operator will deploy Palo Alto’s Next Generation Security Platform for its security operations center to support its global expansion plans. Telkom aims to become one of the five largest telecoms operators in Southeast Asia.

    Telkom has replaced its legacy firewall systems with eight Palo Alto firewalls, as well as its network security management solution Panorama and its contextual threat intelligence service AutoFocus.

    Panorama provides  static rules and dynamic security updates to simplify the management of a changing threat landscape.

    “Palo Alto Networks has enabled us to take our security operations to a higher level. I now have complete visibility of threats, the team has become more skilled, and we’re better able to focus on the development of new services,” Telkom Indonesia VP of IT strategy and governance Sihmirmo Adi said.

    He said the operator expects the platform to help it save billions of rupiahs in future capex and spend significantly less time managing its network.

  • SKT expanding use of TANGO AI platform

    SKT expanding use of TANGO AI platform

    SK Telecom is expanding the use of its AI-assisted network operation system TANGO to all its telecommunications networks.

    The operator has already been using TANGO (the T advanced next generation operational supporting system) to help manage its fixed line network, and is now extending the application of the system to the mobile network.

    TANGO uses machine learning to automate the optimization of network operation based on network traffic information broken down by area and period.

    The system is also designed to enhance the accuracy of network management by measuring the quality of network operations delivered to customers, and incorporates virtualization capabilities to help mobile operators adopt new network capabilities including IoT and 5G.

    Last month, SK Telecom entered an agreement to provide the TANGO platform to India’s largest operator Bharti Airtel.

    “The AI-assisted network operation technology based on big data analytics will be essential in the 5G era,” SK Telecom SVP and head of network technology R&D Park Jin-hyo commented.

    “SK Telecom will continue to improve the functionality of TANGO aiming at providing the best-performing network for customers to enjoy.”

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  • China Unicom 9M17 profit grows 155%

    China Unicom 9M17 profit grows 155%

    China Unicom has announced it expects to report a strong 155% increase in net profit for the first nine months of the year, driven by robust service revenue growth and lower expenses.

    The operator’s preliminary results estimate that net profit reached 4.1 billion yuan ($618.6 million) for the period, with service revenue up 4.1% to 187.9 billion.

    China Unicom also reduced its selling and marketing expenses and handset subsidy spending as part of its new Focus Strategy.

    But the company still added over 13 million new mobile customers during the nine month period, taking its total to 277 million.

    Total 4G net additions were 55.7 million, with the operator’s total 4G customer base growing to 160 million. In September alone, Unicom gained 3.82 million new mobile customers and 7.56 million new 4G customers – a company record for both metrics.

    Despite the strong results, Unicom warned that the recent regulator-mandated abolishment of domestic long-distance and roaming fees – coupled with a cyclical increase in market competition – is expected to place increasing pressure on the company’s financial performance in the fourth quarter.

    “Going forward, the Group will actively address challenges, continue to deepen Focus Strategy and earnestly capitalise on the implementation of mixed-ownership reform to raise efficiency and returns,” China Unicom said in a statement.

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  • Alibaba Cloud teams up with Red Hat

    Alibaba Cloud teams up with Red Hat

    Alibaba Cloud and Red Hat are joining forces to bring Red Hat’s open source solutions to Alibaba Cloud’s customers around the globe.

    Alibaba Cloud is now part of the Red Hat Certified Cloud and Service Provider program, joining a group of technology industry leaders who offer Red Hat-tested and validated solutions that extend the functionality of Red Hat’s broad portfolio of open source cloud solutions.

    The partnership extends the reach of Red Hat’s offerings across the top public clouds globally, providing a scalable destination for cloud computing and reiterating Red Hat’s commitment to providing greater choice in the cloud.

    In the coming months, Red Hat solutions will be available directly to Alibaba Cloud customers, enabling them to take advantage of the full value of Red Hat’s broad portfolio of open source cloud solutions. Alibaba Cloud intends to offer Red Hat Enterprise Linux in a pay-as-you-go model in the Alibaba Cloud Marketplace.

    Launched in 2009, the Red Hat Certified Cloud and Service Provider Program is designed to assemble the solutions cloud providers need to plan, build, manage and offer hosted cloud solutions and Red Hat technologies to customers.

    The Certified Cloud Provider designation is awarded to Red Hat partners following validation by Red Hat. Each provider meets testing and certification requirements to demonstrate that they can deliver a safe, scalable, supported and consistent environment for enterprise cloud deployments.

    In the coming months, Red Hat customers will also be able to move eligible, unused Red Hat subscriptions from their data center to Alibaba Cloud. Red Hat Cloud Access is an innovative “bring-your-own-subscription” offering that enables customers to move eligible Red Hat subscriptions from on-premise to public clouds.

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