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.

  • Korean cellcos may sue govt over subsidy hike

    Korean cellcos may sue govt over subsidy hike

    South Korean mobile operator’s SK Telecom, KT and LG Uplus are considering taking the government to court over an order to increase discounts for new subscribers.

    The operators last week received a formal order to implement a 25% discount rate for regular new subscribers as part of the current government’s objective of reducing telecoms expenses for household.

    The change would represent a five percentage point increase of the current selective discount rate of 20% for regular subscribers, which was itself raised from the previous 12% in 2015.

    But the operators are reportedly considering taking administrative litigation to counter the order, citing a lack of sufficient discussion and consultation about the change as well as a need to prevent further revenue declines and asset depreciation.

    Another potential avenue for challenging the decision involves the way the discount rate was calculated.

    The mobile sector has also expressed concern over the potential for the 25% figure to be raised further in the future – the ICT ministry has proposed to review the discount rate every two years to reflect the average length of a postpaid contract.

    South Korea’s ICT ministry has estimated that the higher discount rate will reduce the country’s mobile costs by around 1 trillion won ($884.6 million) per year.

    Analysts have meanwhile estimated that the cut would lead to a 300 billion won reduction in sales for the three operators if applied to all customers currently benefiting from the selective discount rate, and 600 billion won in losses if it is expanded to apply to all existing subscribers.

  • Myanmar’s startups map past, shape future with virtual reality

    Myanmar’s startups map past, shape future with virtual reality

    Few countries in the world have experienced such rapid discovery of technology than Myanmar.  Gasps echo across the hall as the Myanmar school kids trial virtual reality goggles, marveling at a device that allows some of Asia’s poorest people to walk on the moon or dive beneath the waves.

    “In Myanmar we can’t afford much to bring students to the real world experience,” beamed Hla Hla Win, a teacher and tech entrepreneur taking virtual reality into the classroom.

    “If they’re learning about animals we can’t take them to the zoo… 99 percent of parents don’t have time, don’t have money, don’t have the means,” she added.

    Few countries in the world have experienced such rapid discovery of technology than Myanmar which has leapfrogged from the analogue to the digital era in just a few years.

    During the decades of outright junta rule, which ended in 2011, it was one of the world’s most isolated nations, a place where a mobile phone sim card could cost up to $3,000.

    For half a century its paranoid generals cut off the country, restricting sales of computers, heavily censoring the Internet and blocking access to foreign media reports.

    But today phone towers are springing up around the country and almost 80 percent of the population have access to the Internet through smartphones, according to telecoms giant Telenor.

    Budding startups

    Tech startups are emerging around the commercial capital Yangon, many seeking to improve the lives of rural people, most of whom still live without paved roads or electricity.

    “The increase in activity from last year till now — new startups, more people determined to become entrepreneurs and working in the tech sector in general — is significant,” said Jes Kaliebe Peterson, CEO of community hub Phandeeyar.

    Virtual reality is the latest advance to cause a stir, with a handful of entrepreneurs embracing tech for projects including preserving ancient temple sites to shaping young minds of the future.

    The Phandeeyar incubator works with more than 140 startups. Among them Hla Hla Win’s virtual reality social enterprise 360ed which is using affordable cardboard VR goggles attached to smartphones to break down barriers in Myanmar’s classrooms.

    She founded the non-profit last year after 17 years working in the woefully underfunded education system in a bid to bring learning to life.

    “I see it as an empathy machine where we can teleport ourselves to another place right away,” she told.

    And it’s not just school children who benefit from stepping into places they could only ever dream of visiting.

    360ed has used virtual reality to help Myanmar teachers attend training courses in Japan and Finland and is working on setting up deals with schools in India, Pakistan, China and Bangladesh.

    “With VR there’s no divider, there’s no distance,” Hla Hla Win said.

  • China cloud computing market grew 54% in 2016

    China cloud computing market grew 54% in 2016

    China’s cloud service providers have been urged to beef up their security ecosystem in expectation of managed security services becoming a new growth area in the increasingly challenging area of security.

    IDC’s latest China Cloud Service Provider Security 2017 Vendor Assessment found that the nation’s public cloud computing market expanded 54% in 2016 from a year earlier as more enterprises started to deploy their business to the public cloud.

    However, recently enterprises are increasingly becoming the targets of hackers as the digital transformation boosts their digital asset value, making security a major concern for public cloud service tenants.

    Digital transformation has linked enterprises’ business security closely with IT security, resulting in a big increase in enterprises’ digital asset value. This has also attracted the interest of criminals and hackers, posing a huge threat to enterprises’ digital assets.

    In May 2017, the WannaCry blackmail virus once again sounded the alarm bell, attesting to the fact that a considerable number of enterprises urgently need to improve the security of their IT systems.

    As public cloud tenants generally lack the ability to build security in a cloud environment, therefore cloud service providers have an unshakable responsibility to safeguard their cloud tenants’ business security. Thus, cloud service providers are facing unprecedented security challenges.

    IT security systems must be built with the strong support and close supervision of the government. The Chinese government has elevated the importance of cyberspace security to the level of national security, though cloud service providers also bear an unprecedented level of responsibility when it comes to security.

    It is essential that cloud service providers play the role of managed security service provider (MSSP) to help their tenants build secure IT systems.

    For cloud tenants, the only way to foster their strengths, circumvent their weaknesses, and use the capabilities provided by cloud service providers to strengthen the security of their IT systems is to raise their own security awareness and forge in-depth cooperation with cloud service providers.

    It is widely known that the security capabilities offered by cloud service providers have much room for improvement. In order to learn from others’ strong points to bolster their own weak links and win tenants’ unanimous recognition of their security strength, cloud service providers must engage in in-depth cooperation and close collaboration with professional IT security vendors through security ecosystem building.

    Building a complete security ecosystem will provide more reliable technical support for cloud service providers and their tenants.

    “Implementation of the Cyberspace Security Law of the People’s Republic of China means that cloud service providers now bear even greater security responsibilities. Cloud security capability enhancement will become one of the important strategies for cloud service providers in the future,”  IDC China senior research manager James Wang said.

    “In addition, as enterprises generally lack security planning and building abilities, they will have an urgent need for managed security service in building next-generation security systems. Globally, the managed security service model has been widely accepted by enterprises, while China’s managed security service market is still in its early stages.”

    Drawing upon their sound security ecosystem and rich security experience, public cloud service providers in China can provide managed security services to their large number of cloud tenants. Consequently, cloud service providers will be most likely to become the best practitioners of managed security services.

    Since China set up the Central Leading Group for Network Affairs in 2014, the importance of cyberspace security has risen to the height of national strategy. Following the release of Cyberspace Security Law of the People’s Republic of China, the National Cyberspace Security Strategy and other related laws, regulations and policies in recent years, security and trustworthiness have become key to enterprise-level users’ IT system building.

    For important sectors and fields such as public communications, information services, energy, transportation, water conservancy, finance, public service and e-government, it is more important to ensure a secure and trustworthy key information infrastructure. As a result, enterprise security building standards in China feature distinctive Chinese characteristics.

  • China Telecom 1H17 profit grows 7.4%

    China Telecom 1H17 profit grows 7.4%

    China Telecom has reported a 7.4% growth in net profit for the six months ending in June, even amid an intensifying competitive environment.

    Net profit for the half-year period reached 12.54 billion yuan ($1.88 billion), on the back of a 4.1% year-on-year increase in revenue to 184.12 billion yuan.

    Service revenues grew 6.8% over the same period – surpassing the industry average growth rate – to 165.85 billion yuan. Mobile revenues were up 12.2% to 75.7 billion yuan as the company completed the deployment of its full coverage 4G network incorporating its refarmed 800-MHz spectrum.

    China Telecom’s total mobile subscriber base grew by 14.85 million during the six month period to reach 230 million, with 4G handset users up 30.15 million to 152 million.

    On the fixed line side, China Telecom’s fiber coverage reached 92% as its FTTH subscriber base increased by 11.24 million to 117 million.

    During the period China Telecom also made progress with its planned Transformation 3.0 strategy, which is focused on “network intelligentization, service ecologicalization and operation

    intellectualization.” The company plans to continue with this strategy in the coming quarters.

    Despite the results, China Telecom’s board has elected not to pay an interim shareholder dividend for the period citing its capital requirements for future development.

  • ECI launches hybrid virtualization platform

    ECI launches hybrid virtualization platform

    ECI has launched its Hybrid Virtualization Platform that designed to support multiple network functions virtualization (NFV)-based use cases to help communication service providers can simplify operations, increase agility, reduce opex and provide better SLAs.

    Featuring ECI’s vE-CPE family, the Hybrid Virtualization Platform combines hardware with management and orchestration (MANO), providing a platform as a service (PaaS) to organize different virtual network functions (VNFs).

    The platform leverages multi-access edge computing (MEC) capabilities to alleviate the workload of core networks. It encompasses ECI’s Mercury NFVi platform, ETSI-compliant MANO and a library of VNFs.

    By bringing service agility closer to the network edge, ECI said the platform can accommodate future demands of IoT networks and 5G.

    “Carriers need to get everything they can out of their current network assets. Virtualization at the edge can help unlock all the potential hidden in their current infrastructure, and create additional value on top of current assets,” said Erez Zelikovitz, VP SDN/NFV Solutions Global Portfolio at ECI.

    “Virtualization at the edge can help unlock all the potential hidden in their current infrastructure, and create additional value on top of current assets. We are giving our customers a cost-effective, future proof and easy-to-implement solution, which they can use now to improve service agility, and for the demands of future IoT and 5G networks on the same open and flexible platform.”

    The platform is based on open industry standard architecture, which allows CSPs to easily integrate it into current operations, enjoy end-to-end orchestration and incorporate third-party software.

    It is available on a “pay-as-you-grow” subscription model, and intended to reduce opex and shorten time to market, ECI added.

  • Cambodia’s Smart Axiata launches 4.5G

    Cambodia’s Smart Axiata launches 4.5G

    Cambodia’s Smart Axiata has launched 4.5G mobile connectivity in the country in collaboration with Huawei.

    The launch supports speeds 10 times faster than those available over normal 4G, the companies said.

    Smart Axiata will also potentially be able to use the technology to introduce new services including wireless home broadband and IoT services for residential and business customers. The deployment also marks part of Smart Axiata’s evolution to 5G.

    “I’m very pleased that together with Smart, we are able to build a better connected Cambodia through accelerating the mobile broadband development,” Huawei Cambodia CEO Margaret Hu said.

    “With increasing demand for personalized and diversified services, emerging markets represent tremendous new opportunities for the telecom operators. Huawei is committed to supporting operators seize new opportunities by driving sustainable development in emerging markets.”

    Smart Axiata is Cambodia’s top mobile operator with a market share of an estimated 57% as of last year. The company recently secured a $66 million investment from Japanese conglomerate Mitsui & Co and an affiliate, which secured a 10% stake in return. But Smart Axiata’s parent company Axiata Group has committed to maintaining a majority stake in the venture.

  • Cisco to buy Springpath for $320m

    Cisco to buy Springpath for $320m

    Cisco and Springpath have apparently been working together for a while, and this will let Cisco bring those teams in-house rather than having to build them from scratch.

    Springpath’s specialty is hyperconvergence, and it has developed a distributed file system aimed at enabling server-based storage services.

    Hyperconvergence is a term I’m still coming to grips with. Basically, it seems to entail taking all the virtual stuff we’ve seen driving the cloud revolution, and combining it back with the hardware again to condense everything back down into a one-stop-shop appliance that retains the virtualization flexibility provided by the hypervisor and such despite looking more and more like, well, a mainframe…

    But I digress. Cisco’s move is another step down the path toward generating value from the software more than from the hardware, and $320 million is of course petty cash for them. The deal is expected to close in Cisco’s fiscal Q1/2018, which I believe would be by the end of October 2017.

  • Ericsson suing Wiko over patent infringement

    Ericsson suing Wiko over patent infringement

    Ericsson is suing French smartphone maker Wiko in Germany, accusing the company of infringing Ericsson patents essential to 2G, 3G and 4G cellular technology.

    In a statement, Ericsson said Wiko has been infringing on its intellectual property rights without any license or compensation for years.

    Ericsson chief intellectual property officer Gustav Bismark said the company has tried to negotiate a license agreement with Wiko on fair, reasonable and non-discriminatory (FRAND) terms since May 2013, but has not succeeded throughout the years of discussions. The company decided to take Wiko to court as a last resort, he said.

    “Global sharing of technology and open standards are the force behind the smartphone revolution and have allowed new entrants, such as Wiko, to quickly build successful businesses,” Bismark said.

    “This ICT ecosystem only works, however, if all market players respect the basic rules of FRAND licensing. It is unfair for Wiko to benefit from our substantial R&D investment without paying a reasonable license fee for our patented technology.”

    Ericsson has one of the telecommunications industry’s largest IP portfolios, spanning more than 42,000 patents worldwide. These cover 2G, 3G and LTE technologies and technologies that are likely to incorporate part of the 5G standard.

  • 5G connections to reach 1.4b by 2025: Juniper Research

    5G connections to reach 1.4b by 2025: Juniper Research

    5G connections are forecast to reach 1.4 billion by 2025, an increase from just one million in 2019, the anticipated first year of commercial launch, according to Juniper Research.

    In a new research, Juniper warned that to be successful, 5G fixed wireless broadband would need to meet expectations in real-world scenarios to compete with fiber broadband.

    The research forecasts that China, US and Japan will have the highest number of 5G connections by 2025. Together these three countries will have 55% of all 5G connections by 2025.

    The US alone will account for over 30% of global 5G IoT connections by 2025, with the highest number of 5G connections for fixed wireless broadband and automotive services.

    However, in terms of commercial IoT revenues, Juniper forecast that the ARPC (average revenue per connection) would be disappointing, including smart cities and digital health. This was due to low data requirements and nominal duty-cycles.

    The research urged operators to develop new business models to minimize network operating costs, including software-based solutions to manage the diverse requirements of individual 5G IoT connections.

    Furthermore, Juniper advised that maximizing connectivity revenues through 5G fixed wireless broadband would prove crucial to offset this disappointment, with ARPC forecast to remain above $50 until 2025.

    “Operators and vendors must test their networks in a real-world environment at scale, ensuring speeds can compete with fiber services,” said research author Sam Barker.

    “Networks that can deliver the highest speeds and greatest reliability will command the highest ARPCs, hastening an operators’ return on 5G investment,” said Barker.

  • BT, Dell EMC explore new way to manage traffic

    BT, Dell EMC explore new way to manage traffic

    BT and Dell EMC have entered a research collaboration  dedicated to exploring a new way of managing network traffic using agile, programmable telecoms networks.

    The proof-of-concept trial, which is taking place at the BT Labs in Adastral Park, Suffolk, will explore how disaggregated switching can create flexible networks which are more responsive to customer needs by using standard open network switches commonly found in data centers, coupled with specialist switching software.

    In contrast to the traditional integrated network switches currently used by operators and enterprises around the world, disaggregated switching uses merchant silicon based switching systems combined with either commercially available or open source system software.

    This represents a significant shift architecturally, based on server-like principles to the delivery of dynamic network services over fixed-line and wireless networks.

    BT is evaluating the performance of Dell EMC disaggregated switches against traditional integrated switching hardware to test the performance, economics and programmability of this new, virtualized approach, which is important as customers increasingly require more flexible, agile networks.

    Disaggregated switches have several potential advantages over traditional network switches, as they can be managed flexibly using Netconf protocol and YANG models. This makes the entire system inherently programmable and allows the switches to be operated in tandem to provide new network services or make configuration changes rapidly.

    BT will work with Dell EMC to look at a number of potential use cases as part of the trial as the company evolves its network strategy to maximize the benefits of SDN (software-defined networks), NFV (network functions virtualization) and programmable silicon. These include the instant activation of Ethernet circuits from a third party (such as an enterprise), and the ability of the system to deliver real-time network operational data.

  • AIS launches 1Gbps Next G mobile service

    AIS launches 1Gbps Next G mobile service

    Thailand’s AIS has launched a new mobile service offering connection speeds of up to 1Gbps by combining 4G and Wi-Fi connectivity.

    AIS’ Next G branded service is now available on supported handsets via a firmware upgrade.

    The service has been developed in collaboration with Samsung and Korea Telecom. It uses Multipath CTP technology to integrate AIS LTE-Advanced and Super Wi-Fi frequencies, providing speeds of up to 1Gbps in areas where both networks are available.

    Next G is currently compatible with Samsung Galaxy S series handsets of S7 and newer, with more handsets supporting the technology expected to be rolled out in the future.

    The upgrade forms part of AIS’ evolution to 5G, and is now available in major provinces nationwide.

    AIS currently has around 49,000 4G base stations and 80,000 Wi-Fi hotspots throughout Thailand. The operator’s 4G customer base meanwhile reached 15.8 million by the end of the second quarter.

    Concurrently with the launch, AIS is aiming to improve the customer experience, and has recently upgraded one of its major customer service shops with a new Digital Gallery concept displaying innovations from major smartphone makers and other device brands.

  • Spark profit grows 13% in FY17

    Spark profit grows 13% in FY17

    New Zealand’s Spark has reported a 13% increase in net profit for the financial year ended in June as a result of one-off gains and improved mobile performance.

    Net profit grew to NZ$418 million ($305.7 million), with revenue increasing 3.3% to NZ$3.61 billion. Mobile revenue grew 5.6% due to a 4.1% increase in high margin service revenue and a 4.3% growth in total connections.

    Spark also increased its wireless broadband subscriber base by nearly 17% to 84,000, while the company increased its fiber broadband subscriber base by nearly 74% to 172,000.

    The company has to date migrated more than a third of its customers off its legacy copper network and on to wireless broadband as well as fiber services via the state-led Ultrafast Broadband national fiber network project.

    Fixed voice and managed data revenues meanwhile fell 12% to NZ$104 million due to ongoing substitution. Part of this substitution involves the migration of 11,000 voice only connections on Spark’s VoLTE service.

    For the current year, Spark is anticipating a 0-2% increase in both revenue and ebitda, and a slightly lower capex spend of NZ$410 million.

    The operator said it plans to increase its emphasis on wireless services and investment, and to develop its multi-brand strategy to better serve the low end of the market.

  • Sydney Trains taps Ciena for OTN upgrade

    Sydney Trains taps Ciena for OTN upgrade

    Sydney Trains has contracted Ciena to help upgrade its network to a packet optical platform to improve public services across its transportation system with a faster, low latency and reliable data network.

    The deployment will support critical passenger safety measures that ensure trains in the Australian city operate at safe distances.

    By investing in both 100G transport and OTN switching solutions, Sydney Trains aims to build a network that enhances support of customer safety and critical train operations.

    The network upgrade will also help the transportation provider transition from an SDH legacy network, and lays the foundation required to support future high capacity service requirements.

    Sydney Trains has various sites along its network that have different traffic requirements. The flexibility of the platform supports these end-to-end services and various system configurations, including deployments over long distances and fiber types such as aerial.

    “For transportation providers, migrating their communication networks by deploying Packet-optical technologies is key to continually improving safety measures and optimizing passenger services,” Ciena VP and GM for APAC Anthony McLachlan said.

  • Vinaphone debuts carrier billing on Google Play

    Vinaphone debuts carrier billing on Google Play

    Vietnam’s Vinaphone has become the fourth and last of the nation’s four major mobile operators to launch carrier billing over Google Play using the Fortumo payments platform.

    The operator’s 20 million subscribers will be able to use the Fortumo platform to pay for apps and in-app content using their airtime balance.

    With the launch, 95% of the population of Vietnam can now make payments on Google Play through Fortumo – significant for a country with smartphone penetration of 40% but credit card ownership of below 2%.

    Fortumo will also provide Vinaphone with access to its Fortumo Insight statistics and data analytics platform, which helps operators analyze the performance of Google Play and use the data to make improvements to their payment infrastructure and marketing campaigns using the platform.

    “Vietnam is one of Asia’s fastest growing markets for mobile services. Vinaphone has been able to successfully capitalize on this expansion and enabling Google Play for carrier billing is the logical step for Vinaphone to accelerate the growth further,” Forumo chief business officer Gerri Kodres said.

    “Fortumo has established itself as the provider of choice for carriers in Asia and we are proud to help Vinaphone make Google Play payments available to millions of their users.”

  • Telstra expects $2.36b ebitda hit from NBN

    Telstra expects $2.36b ebitda hit from NBN

    Shares in Australia’s Telstra slumped 10.6% to a five-year low of A$3.87 yesterday after the company warned it expects to take an A$3 billion ($2.36 billion) hit to its ebtida as a result of the rollout of the National Broadband Network (NBN).

    Telstra cut its planned dividend for the current financial year by 29% to A$0.22 per share after revealing that it expects the impact of the NBN rollout to be at the top end of its projected $2 billion to $3 billion ebitda decline.

    The incumbent operator announced the plan along with its financial results for the 12 months ending in June. Revenue for the year grew 4.3% to A$28.2 billion.

    Net profit fell 33.8% to A$3.9 billion, but excluding the impact of the sale of its Autohome Chinese classifieds business for A$2.1 billion to Ping An Insurance Group in the prior year, profit from continuing operations grew 1.1%.

    Telstra reported mobile net additions of 218,000 and domestic retail fixed broadband net additions of 132,000 during the year. Customers served by Telstra over the NBN meanwhile more than doubled to 1.18 million, representing a total market share of 52% of the non-satellite services over the national wholesale network.

    But Telstra CEO Andrew Penn said the company is facing competitive pressures in both the mobile and fixed segments, including the introduction of new rivals in both.

    “Digital disruption is continuing to accelerate, not just for us but also for our customers, and we are entering a significant point in the transformation of the telecommunications market with the nbn rollout reaching scale,” Telstra CEO Andrew Penn said.
    “It is against the backdrop of these market dynamics that we announced during the year our intention to invest up to A$3 billion over the next three years to achieve a further step change in our strategic positioning to deliver economic benefits of more than A$500 million of ebitda by 2021.”

    Telstra also plans to bring forward its target of achieving A$1 billion in efficiencies by FY21 and seek to deliver more than A$1.5 billion in net productivity gains by FY22.