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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.

  • Global public cloud spend to 17.5% in 2019

    Global public cloud spend to 17.5% in 2019

    Gartner forecasts worldwide public cloud services market will grow 17.5% in 2019 to reach a total of $214.3 billion, up from $182.4 billion in 2018.

    Cloud system infrastructure services, or infrastructure as a service (IaaS) is forecast to grow 27.5% in 2019 and reach $38.9 billion, up from $30.5 billion in 2018 (see Table 1). The second-highest growth rate of 21.8% will be achieved by cloud application infrastructure services, or platform as a service (PaaS).

    Gartner research vice president, Sig Nag, says “we know of no vendor or service provider today whose business model offerings and revenue growth are not influenced by the increasing adoption of cloud-first strategies in organizations. What we see now is only the beginning, though. Through 2022, Gartner projects the market size and growth of the cloud services industry at nearly three time the growth of overall IT services.”

    Gartner expects that by the end of 2019, more than 30% of technology providers’ new software investments will shift from cloud-first to cloud-only. This means that license-based software consumption will further plummet, while SaaS and subscription-based cloud consumption models continue their rise.

    “Organizations need cloud-related services to get onboarded onto public clouds and to transform their operations as they adopt public cloud services,” said Nag. Currently almost 19% of cloud budgets are spent on cloud-related services, such as cloud consulting, implementation, migration and managed services, and Gartner expects that this rate will increase to 28% by 2022.

    “As cloud continues to become mainstream within most organizations, technology product managers for cloud related service offerings will need to focus on delivering solutions that combine experience and execution with hyperscale providers’ offerings,” said Nag.

    He sees the complementary approach as driving both transformation and optimization of an organization’s infrastructure and operations.

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  • Indonesia’s FiberStar extends collaboration with Huawei

    Indonesia’s FiberStar extends collaboration with Huawei

    Indonesia’s FiberStar has signed an agreement with Huawei to jointly expand high-speed fiber network services in the market.

    FiberStar recently partnered with Huawei to build a 1Tbps backbone DWDM network linking Jakarta with Surabaya. The network consists of submarine and terrestrial cables that form a ring network with a total length of more than 3000 kilometers.

    Building on this cooperation, the companies signed a memorandum of understanding at the Huawei ISP Summit Asia Pacific 2019 in Bali to strengthen collaboration in the field of fixed networks and data centers.

    FiberStar co-founder and director Thomas Dragono said Huawei shares the company’s vision for the digital transformation of Indonesia.

    “Being the pioneer of Indonesia’s neutral infrastructure service, and considering Huawei’s advancement in the optical communications field, we have both decided to explore a deeper and stronger partnership,” he said.

    “The consensus on the advantages of optical network technologies and evolution trends are the basis of cooperation between both parties. We will leverage the advanced DWDM and MPLS technology to expand the coverage of networks in Indonesia, and further facilitate the growth of the digital economy in Indonesia.”

    FiberStar was established in 2014 as a subsidiary of Indonesia’s biggest conglomerate the Salim Group.

    The company is Indonesia’s biggest carrier-neutral infrastructure provider, offering coverage to 92 Indonesian cities across the nation’s main islands including Sumatra, Java, Bali, Kalimantan, and Sulawesi.

  • Nepal to shut down CDMA from 2022

    Nepal to shut down CDMA from 2022

    The Nepal Telecommunications Authority (NTA) has reportedly decided to switch off CDMA services in Nepal from 2022.

    The regulator’s Radiofrequency Policy Determination Committee has decided on a policy of CDMA network shutdowns in order to pave the way for refarming spectrum in the 800-MHz band.

    Currently only Nepal Telecom operates an active CDMA service, under the brand Sky. The service is currently available in most areas of the country, but the user base is low due to the preference for GSM services in the market.

    Nepal Telecom had decided in 2017 to stop investing further in both CDMA and Wimax, but has not currently set a date for the network shutdown.

    The operator plans to return its 6 MHz of 800-MHz spectrum to the regulator after the network shutdown.

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  • Mobitel to invest $50m in 5G this year

    Mobitel to invest $50m in 5G this year

    Sri Lankan national mobile service provider Mobitel has revealed plans to invest $50 million this year to deploy a 5G network and upgrade its network infrastructure.

    The operator, a wholly-owned subsidiary of Sri Lanka Telecom, has commenced 5G trials ahead of a planned rollout.

    While Sri Lanka was the first country in South Asia to introduce 3G and 3.5G technology, Mobitel does not expect it to be the first to introduce 5G, the report states.

    Meanwhile Mobitel has been investing heavily to upgrade its 3G network to 4G, having spent around $100 million to convert around 100 3G base stations. The operator plans to continue the 4G upgrade, with plans to soon switch off its 3G network.

    Mobitel has now invested around $600 million over its 25 year history. But despite heavy investments and foreign exchange losses, the company managed to increase its revenue by around 10% last year.

    Mobitel is the second largest mobile operator in Sri Lanka after Dialog Axiata, with around 22.6% market share.

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  • Carriers to account for 20% of digital content sales

    Carriers to account for 20% of digital content sales

    The proportion of worldwide digital content paid for via carrier billing is expected to nearly double over the next 5 years, said Juniper Research.

    The study, Direct Carrier Billing: Forecasts, Player Strategies & Emerging Opportunities 2019-2024, revealed that with most leading app stores and content providers now seeking to enable carrier billing as an option, consumer spend via the mechanism is expected to rise from $28 billion last year to nearly $90 billion by 2024.

    It claimed that carrier billing deployments would benefit both operators and content publishers; allowing the former to generate a revenue stream from content while enabling the latter to gain subscribers by using carrier marketing channels.

    Juniper claimed that the convenience and growing availability of carrier billing would see it increasingly used for content subscriptions as well as impulse purchases.

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  • Singtel extends VIA mobile wallet alliance

    Singtel extends VIA mobile wallet alliance

    Singtel has announced a further expansion of its emerging cross-border mobile payment alliance via an arrangement with Singapore Changi Airport.

    Subscribers to Thailand’s AIS will soon be able to use their AIS GLOBAL Pay mobile wallets to make payments across all four Changi Airport terminals in their home currency.

    AIS, one of Singtel’s regional mobile affiliates, is the first international member of the VIA Alliance, which launched in October. Other member mobile wallets to be added later this year include K Plus from Thailand’s Kasikorbank and Axiata Digital’s Boost Malaysia.

    Singtel also recently arranged to allow users of mobile wallets within the VIA Alliance to make payments in Japan through a partnership with Tokyo-based NETSTARS.

    Singtel plans to progressively expand the VIA alliance to include its other regional associates Airtel in India, Globe in the Philippines, Telkomsel in Indonesia, as well as more non-operator entities.

    “With Singapore welcoming over half a million visitors from Thailand every year, we are excited to enhance the retail experience for them with the ease, familiarity and convenience of seamless transactions,” Singtel International VP of business Soon Sze Meng said.

    “Having the many merchants in Changi Airport on board VIA will enable Thai travelers to enjoy a wide range of cashless dining and retail options from the moment they touch down, while these merchants will capture new customers and revenue.”

  • China Mobile, ZTE launch maritime broadband solution

    China Mobile, ZTE launch maritime broadband solution

    ZTE and the Zhejiang branch of China Mobile have jointly launched commercial trials of a new maritime broadband satellite solution.

    The solution, Heweitong, is designed to help solve common problems of maritime communication, such as poor coverage, slow data rate, and high cost.

    It will allow people at sea to communicate and access the internet by merely installing a mobile app on their smartphones.

    During the trial period, China Mobile and ZTE are offering the solution for free. Once commercially launched, the companies expect the cost to be 90% lower than traditional marine communications solutions.

    Heweitong has already undergone verification testing involving more than 50 ships and nearly 300 users in the Bohai Sea, the East China Sea and the South China Sea.

    The project forms part of China Mobile’s goal of offering ubiquitous connectivity via an integrated space, sky and land based communications solution.

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  • Openet names Regan marketing development VP for APAC

    Openet names Regan marketing development VP for APAC

    Openet has appointed Tony Regan as vice president of market development for the APAC region, the BSS firm announced earlier this week.

    In his new role, Regan will run Openet’s market development team in APAC, working closely with regional sales VP and sales team to drive the company’s continued expansion in the region, the company said.

    Prior to joining Openet in 2016, Regan held various senior roles within the Telefonica group in Ireland, Spain and Latin America. In his previous role at Openet, Regan ran the company’s consulting division, advising operators on strategy development and execution.

    Regan will be based in Openet’s APAC headquarters in Kuala Lumpur, Malaysia.

    Openet was established in Kuala Lumpur in 2006 and has grown to provide regional service and support, managed services and software development for all of Openet’s APAC customers. The company employs over 180 people in Malaysia.

    Eric Updyke to take helms at Spirent Communications

    Spirent Communications has appointed a new chief executive officer. Eric Updyke, a former Amdocs executive, has started working for the company on April 1, and will take up the CEO role on May 1.

    Updyke will succeed retiring CEO Eric Hutchinson, who will step down on May 1. The company had announced last November that Hutchison planned to retire after 37 years of working for Spirent. He has held the CEO position since being appointed in 2013.

    In a statement, Spirent said Updyke “has extensive experience in international business management with a strong technical understanding of the markets in which Spirent operates.”

    He has worked in various sections of the industry over the last 30 years and has led transformative growth programs on a global scale.

    Updyke joins Spirent from Amdocs, where he most recently served as president of the company’s services group, with responsibility for its managed services, testing and system integration businesses.

    Prior to joining Amdocs, Updyke held executive roles at Nokia Siemens Networks and AT&T.

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  • Autotalks trials C-V2X on Chinese road

    Autotalks trials C-V2X on Chinese road

    Israeli vehicle-to-everything (V2X) communications solutions provider Autotalks has announced the successful completion of cellular V2X field trials in China.

    The trials on a public road, conducted in collaboration with an unnamed large Chinese technology company, validated Autotalks’ C-V2X capabilities, including a communication range of over 2km with a nominal range of around 1.5km.

    The successful field test involved the use of hardware compliant with standards body 3GPP’s Release 15 for V2C communications improvements.

    Autotalks has been building momentum in China in a bid to target the large local market, growing its partner ecosystem and increasing staff.

    The company is a member of the government’s IMT-2020 (5G) Promotion Group, as well as the China Industry Innovation Alliance for the Intelligent and Connected Vehicles (CAICV) and China ITS (intelligent transport systems) Industry Alliance.

    In November, Autotalks recruited former Ceragon Networks country manager Yang Xiaobing to lead up its Chinese business development efforts out of its branch in Beijing.

    In February, Autotalks partnered with Taiwanese fabless semiconductor company MediaTek for a project focused on cooperating on integrating V2X and telematics technologies.

    Autotalks also recently launched the first global V2X solution supporting both C-V2X and dedicated short range communications (DSRC) technologies, the two main connected vehicle standards being adopted by car manufacturers.

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  • Global fixed broadband subs to reach 1b by year-end

    Global fixed broadband subs to reach 1b by year-end

    The global fixed broadband market is on track to reach 1 billion subscribers by the end of 2019, driven by unprecedented growth of fiber connections in Asia Pacific, particularly China, according to Kagan.

    At the end of 2018, broadband subscriptions reached 974.7 million while broadband household penetration reached 45.5%, up from 43.2% in 2017. However, household penetration is projected to remain under 50% until 2025, the S&P Global Market Intelligence research unit said.

    Kagan: Global broadband subscirbers 2018-2023

    Source: Kagan

    China and US remain by far the largest fixed-broadband markets, together accounting for half (50.7%) of the global total in 2018. China alone claims 40.1% of the global total and 74.4% of Asian broadband subs due to large-scale fiber deployments as part of the country’s national Broadband China project.

    Singapore maintains the highest fixed-broadband household penetration in the world, at over 100%.

    In terms of access technology, 51.4% of the global fixed broadband subscribers are using fiber-to-the-premises (FTTP), which overtook DSL in 2016 to become the largest fixed-broadband platform on a global scale.

    FTTP remains the fastest-growing fixed-broadband platform, growing by 13.8% year over year in 2018.

    According to Kagan, fiber subscriptions have overtaken DSL in Asia and Eastern Europe, with China, Japan, Russia, South Korea and US being the five largest fiber-optic markets in the world.

    Western Europe, the Middle East and Africa are still in favor of using DSL, making it the dominant multichannel platform in these continents, while cable leads in North America and Latin America.

  • Telin Singapore secures OSPAR certification

    Telin Singapore secures OSPAR certification

    Indonesia’s PT Telkom has announced that its subsidiary in Singapore has secured certification that will allow it to serve a wider range of clients in the financial sector.

    Telin Singapore has completed an Outsourced Service Provider Audit Review (OSPAR) report signifying its compliance with the Association of Banks In Singapore (ABS) guidelines.

    The certification will allow the company to increase its client base in the financial sector, as local financial sector companies require technology service providers to be in compliance with ABS guidelines.

    An independent audit is a part of this certification process, and OSPAR meets this requirement.

    In addition, Telin Singapore has achieved Payment Card Industry Data Security Standard Compliance (PCI DSS) for companies that handle branded credit cards from the major providers.

    “The OSPAR proves that our controls and processes are secure and robust. Through obtaining OSPAR, our financial services clients could rest assured that their data is securely stored according to the highest security standards in our data centers,” Telin Singapore CEO Andreuw Th.A.F said.

    “A loss or breach of customer confidential data and disruption to banking services will result in reputational and financial damage to the financial institutions.”

  • Changing of guard at Spark

    Changing of guard at Spark

    New Zealand incumbent Spark announced that its managing director Simon Moutter (pictured) has resigned from the telco. Moutter will leave the positions of MD and a director of the company from July 1. Jolie Hodson, currently customer director at Spark, will take over as chief executive.

    Spark chair Justine Smyth said the company has been undertaken succession plan from within the business by giving potential internal candidates opportunities over time to demonstrate they have the right leadership capabilities.

    “Jolie is an accomplished leader with a strong record of delivering results and managing complex business units and to be able to appoint an executive of Jolie’s calibre and experience is a testament to the quality of the talent within the company,” she said.

    She has led major programmes related to Spark’s business transformation and has been a key driver of the company’s growth strategies in business cloud and IT services. Her most recent role has been customer director, with responsibilities across Spark’s consumer and retail operations, large corporate and government customers, and cloud services businesses.

    Previously, she was CEO of the former Spark Digital unit and chief financial officer.

    Smyth said Moutter became MD in 2012 and had done so in the expectation of a likely five- to seven-year tenure.

    “In almost every respect, Spark today is a vastly different company to the one that Simon re-joined in 2012. We are New Zealand’s leader in wireless communications, with a rejuvenated mobile business across both Spark and Skinny brands, a promising IoT business and a determination to be at the forefront of 5G,” she said.

    In 2014, Moutter led the transition of Spark changing its name from Telecom. He had helped the telco transform in many other ways including improving diversity and inclusion in the workplace, Smyth said.

    Moutter has also recently driven an “agile” restructure of Spark and an aggressive drive into sports content and streaming.

    This will be the second time Moutter has left the telco.

    Moutter served as chief operating officer between 2003 and 2008 before leaving to become chief executive of Auckland Airport.

    Moutter returned to Spark in 2012 to take the top job with the expectation that he help turn around the company after a demerger of Chorus in 2011.

    “I’ve given my absolute best to putting Spark onto a positive track over the last seven years, so the company can fully deliver on its purpose to ‘help all of New Zealand win big in a digital world,” he said.

    “I feel it’s the right time to pass the leadership baton on.”

    Moutter said he hadn’t made any decision about what he will do after he finish at Spark, other than spend the first couple of months with his family.

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  • Philippines’ House to hold common tower hearing

    Philippines’ House to hold common tower hearing

    A Philippines’ House of Representatives committee will next week hold a hearing on the government’s common tower policy to address the industry opposition and potential legal hurdles of the proposal.

    The House Committee on ICT will look into the status of the Department of ICT’s common tower policy during a hearing scheduled for Monday, committee chairman Victor Yap told.

    Representatives of Globe Telecom and PLDT, the National Telecommunications Commission, the Department of ICT and the Philippines Competition Commission are all expected to attend.

    Under the proposed policy, tower companies will be allowed to build and operate common telecom towers that can be leased to operators. The DICT has signed agreements with a number of tower companies ahead of the introduction of the policy.

    As well as helping to improve the Philippines’ telecommunications infrastructure, the common tower policy is aimed at allowing the market’s upcoming third operator Mislatel more quickly deploy a mobile network.

    But Globe and PLDT have objected to the draft terms, which had proposed that the number of cell site builders be restricted to two registered tower providers.

    According to the operators, this could lead to an infringement of the rights to own and establish cell sites that is stipulated in their legislative franchises.

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  • V2X apps to drive $1.2b market by 2022

    V2X apps to drive $1.2b market by 2022

    The latest SNS Telecom & IT research, V2X (Vehicle-to-Everything) Communications Ecosystem: 2019 – 2030 – Opportunities, Challenges, Strategies & Forecasts, suggests that global spending on V2X (Vehicle-to-Everything) communications technology – based on both IEEE 802.11p and C-V2X (Cellular V2X) standards – will reach $1.2 billion annually by the end of 2022.

    V2X communications technology allows vehicles to directly communicate with each other, roadside infrastructure, and other road users to deliver an array of benefits in the form of road safety, traffic efficiency, smart mobility, environmental sustainability, and driver convenience.

    V2X is also helping pave the way for fully autonomous driving through its unique non line-of-sight sensing capability which allows vehicles to detect potential hazards, traffic, and road conditions from longer distances and sooner than other in-vehicle sensors such as cameras, radar, and LiDAR (Light Detection and Ranging).

    Adoption on track

    Although legacy V2I (Vehicle-to-Infrastructure) technologies are currently in operational use worldwide for ETC (Electronic Toll Collection) and relatively simple V2I applications, advanced V2X systems – capable of supporting V2V (Vehicle-to-Vehicle), V2I and other forms of V2X communications – are beginning to gain broad commercial acceptance with two competing technologies vying for the attention of automakers and regulators. These are the commercially mature IEEE 802.11p/DSRC (Dedicated Short Range Communications) standard, and the relatively new 3GPP-defined C-V2X (Cellular V2X) technology which has a forward evolutionary path towards 5G.

    With an initial focus on road safety and traffic efficiency applications, Toyota and General Motors (GM) have already equipped some of their vehicle models with IEEE 802.11p-based V2X technology in Japan and North America.

    Volkswagen will begin deploying IEEE 802.11p on volume models in Europe starting from 2019, while Geely and Ford plan to integrate C-V2X in their new vehicles by 2021 and 2022 respectively.

    Luxury automakers – including BMW, Daimler, Volkswagen’s subsidiary Audi, and Volvo Cars – already deliver certain V2X-type applications through wide-area cellular connectivity and supporting infrastructure such as appropriately equipped roadwork trailers.

    Challenges ahead

    Despite the ongoing 802.11p/DSRC versus C-V2X debate, regulatory uncertainty and other challenges, global spending on V2X communications technology is expected to grow at a CAGR of more than 170% between 2019 and 2022. SNS Telecom & IT predicts that by the end of 2022, V2X will account for a market worth $1.2 billion, with an installed base of nearly 6 Million V2X-equipped vehicles worldwide.

    The report noted that despite the ongoing 802.11p/DSRC versus C-V2X debate, regulatory uncertainty and other challenges, global spending on V2X communications technology is expected to grow at a CAGR of more than 170% between 2019 and 2022. SNS Telecom & IT predicts that by the end of 2022, V2X will account for a market worth $1.2 billion, with an installed base of nearly 6 Million V2X-equipped vehicles worldwide.

    While Toyota and other Dedicated Short Range Communications (DSRC) proponents are pushing ahead with their plans to roll out IEEE 802.11p in North America, Europe and Japan, pre-commercial C-V2X deployments have recently gained considerable momentum, spearheaded by cellular industry giants such as Qualcomm and Huawei – with support from automakers including Ford, BMW, Daimler, Groupe PSA, SAIC, Geely, Volkswagen’s luxury brand Audi, and Jaguar Land Rover (JLR).

    Regional markets are also visibly divided with the Chinese Government backing C-V2X, Europe leaning towards IEEE 802.11p through its recently published delegated act on C-ITS (Cooperative Intelligent Transport Systems), and heated debates ensuing in the United States as a result of the 5GAA’s waiver request to allow C-V2X deployments in the 5.9-GHz band.

    Betting on the future

    As a result, a number of automotive OEMs are beginning to adopt a flexible approach by choosing to deploy different technologies in different regions as they commit to V2X. For example, although GM has equipped its Cadillac CTS sedan vehicles with IEEE 802.11p in North America, the automaker is actively working with business partners to prepare for C-V2X deployment in China.

    Besides becoming a standard safety feature on an increasing number of vehicles, V2X communications technology – through its unique non line-of-sight sensing capability – will play a critical role in ensuring the safe and efficient operation of autonomous driving systems, particularly with the commercialization of next-generation V2X standards, specifically 5G-V2X and IEEE 802.11bd.

    The globally harmonized 5.9-GHz band continues to remain the preferred spectrum for V2X communications technology, with the exception of Japan – where the national regulator has allocated a single 9 MHz channel in the frequency range 755.5 – 764.5 MHz for safety-related applications based on V2V and V2I communications.

    Early discussions are ongoing for the potential use of new bands, most notably in the 3.4 – 3.8 GHz and 5.9 – 7.2 GHz frequency ranges, as well as millimeter wave spectrum for LOS (Line-of-Sight) and high data rate V2X applications. Recent field trials using 39-GHz spectrum in the United States have demonstrated that millimeter propagations for V2V communications can work well in the distance range of 100 meters, without advanced beamforming techniques.

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  • Telcos to use AI to fight SMS fraud and drive A2P messaging revenue

    Telcos to use AI to fight SMS fraud and drive A2P messaging revenue

    Juniper Research is forecasting that total operator revenues from A2P (Application-to-Person) messaging services will reach $62 billion by 2023, up from $43 billion in 2019.  This represents a growth of 42% over the next 4 years.

    The research firm also claimed that revenue growth will be driven by operator efforts in mitigating messaging fraud over grey routes, alongside the emergence of rich-media messaging technologies including RCS (Rich Communications Suite).

    The Juniper research, A2P Messaging: SMS, RCS & OTT Business Messaging 2019-2023, also found that increased investment in SMS firewalls and AI (Artificial Intelligence) will drive down operator loss due to grey route SMS messages to $4 billion by 2023. This represents a fall from $10 billion in 2019, further contributing to operators’ messaging revenue growth over the next four years.

    Grey route SMS includes A2P messages disguised as P2P (Peer-to-Peer) traffic to exploit the lower costs compared to directly connected A2P SMS. Juniper estimates that 24% of A2P SMS messages will be delivered via grey routes in 2019, however efforts in improving SMS firewall capabilities will drive this down to below 10% by 2023.

    Meanwhile, RCS business messaging will account for under 10% of operators’ A2P messaging revenue by 2023. However, the research claimed that RCS business users will continue to use SMS for simple notifications, such as OTPs (One Time Passwords) owing to the low cost and simplicity. The research identified the integration of mobile payment capabilities directly into the RCS client to provide a differentiation point to SMS and increase RCS traffic.

    Research author Sam Barker added “RCS will provide operators with additional revenue opportunities beyond simple message termination. Operators must explore the advertising ecosystem and mobile payments over RCS to exploit their substantial subscriber bases to generate fresh revenue streams.”

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