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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.

  • Axiata to book non-cash loss on Idea Cellular-Vodafone Idea merger

    Axiata to book non-cash loss on Idea Cellular-Vodafone Idea merger

    Axiata Group said it is likely to book a RM1.5 billion to RM3 billion non-cash financial loss from the merger of 16.33% owned Idea Cellular and Vodafone Idea Ltd, which will make it the largest carrier in India by subscribers and revenue market share.

    Together, Axiata Group said in a statement, Vodafone Idea will serve a customer base of 440 million, representing 39% of the total market share while its revenue market share is estimated to be at 37.5%. Its revenue is forecasted to be in excess of US$10 billion (RM40.6 billion).

    The group said, the non-cash financial loss is due to applicable accounting standards from the dilution of Axiata Group’s shareholding in the merged enlarged Idea-Vodafone entity from 16.33% to 8.17%, upon completion of the merger which will result in the loss of certain shareholder’s rights as provided under the subscription agreement dated June 25, 2008 between, inter-alia, Axiata Group and Idea in relation to subscription by Axiata Group of shares in Idea.

    The estimated loss above is expected to have a material impact on the financial quarter ended June 30, 2018. The actual impact on de-recognition from the reclassification of Idea will be provided upon completion of the merger. Being a non-cash item, the financial impact above will have no bearing to Axiata Group’s current or future cash position.

    In a separate statement issued last Friday, the group said its cash balance is strong at RM5.7 billion as of end March 2018 with debts well within covenant and will not be a factor to impact Axiata’s dividend policy and payment for 2018.

  • India Reliance to borrow US$2.5 billion to refinance debt

    India Reliance to borrow US$2.5 billion to refinance debt

    Owned by India’s richest man Mukesh Ambani, Reliance is negotiating with more than a dozen banks to arrange the loans in single or multiple tranches as it rolls out an optical-fiber network and sets up more retail stores.

    This loans are to refinance existing offshore debt raised about two and a half years ago and would reduce average borrowing costs or extend maturities, the daily added.

    The conglomerate, whose interests range from petroleum to retail stores, has an ambitious plan to roll out its fixed-line broadband service Jio GigaFiber for 1,100 cities of India.

    Meanwhile India’s leading telecom service provider and Reliance rival Bharti Airtel is also looking to raise $1 billion overseas to refinance its high-cost debt.

    It wants to expand its fourth-generation (4G) mobile-phone technology network in order to face stiff competition posed by Reliance Jio.

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  • China leads the world in mobile payments

    China leads the world in mobile payments

    In China, with just a mobile phone in your hand, you can hop on the subway or bus, shop in a supermarket or convenience store, pay for needed supplies while on campus or settle a traffic fine via the mobile Quick Pass function.

    This is now part and parcel of the daily routine for many people in China.

    Today, mobile payments have seamlessly penetrated into every person’s daily activities and has had a profound effect on their lives. All eyes are on China, as the world’s most populous country has rapidly taken the lead into the era of mobile payment.

    Ahead of the rest of the world

    A survey of 18,000 consumers across 23 countries and regions by Ipsos, an international market research firm, shows that 77% of all Chinese use mobile payment services, ranking the country first in the world. The penetration rate of mobile payment in the US and Japan has so far only reached 48% and 27% respectively.

    Given the size of the Chinese population, the difference is remarkable.

    Taking the daily movement of its population as an example, dramatic changes have been observed in the way Chinese commuters and travelers pay when they board a bus or subway or drive a car to get where they are going, all of which has been made possible by the popularity of mobile payments.

    Using UnionPay mobile payment to settle all fees that occur while in transit is now the commonly accepted way to get from point A to point B in more than 400 counties and cities across China, with the highest percentages of the population already doing so located in Shanghai, Guangzhou, Tianjin, Hangzhou, Fuzhou and Jinan.

    To cite Hubei province as just one example, car owners who have added their vehicle information to the UnionPay app and set up their UnionPay payment function as the default payment option can drive through any toll plaza along the highway without stopping, and the system will automatically recognize the license plate and submit the highway toll.

    Convenient mobile payment service for all payment scenarios

    With the goal of improving the quality of life through service enhancements that benefit every person resident in China, a project to evidence the convenience of mobile payments under the aegis of China’s central bank named the “mobile payment convenience demonstration project” targets areas that are most likely to touch on every person’s life, including what are referred to as the 10 major payment scenarios:

    • Travel by bus or subway
    • Food market and other local convenience shopping
    • Restaurant dining
    • Supermarket shopping
    • Use of public services
    • Self-service vending machines
    • On-campus activities
    • College or university cafeteria
    • Healthcare
    • Settlement of traffic fines
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  • Axiata to sell loss-making Pakistan unit

    Axiata to sell loss-making Pakistan unit

    Axiata Group Bhd is planning to sell its entire 89% stake in Multinet Pakistan (Private) Ltd for a sum of US$1 on a cash-free and debt-free basis.

    The group told the stock exchange that its unit Axiata Investments (Labuan) Ltd (AIL) had entered into a share purchase agreement with Adnan Asdar Ali, who currently holds the remaining 11% stake in Multinet.

    It noted that Multinet’s financial performance has been declining for the last few years with accumulated losses of PKR754 million (RM25.64 million) for the financial year ended Dec 31, 2017.

    Accordingly, the group said Multinet’s contribution to its financial and business performance is immaterial.

    Axiata assured that the exercise will not have any material effect on the group’s consolidated net assets, gearing and consolidated earnings for the financial year ending Dec 31, 2018.

    Multinet is engaged in the business of providing telecommunication and electronic media services including internet services, design, development, implementation of networks including a wide range of non-mobile telecommunications services with a focus on the business-to-business (B2B) segment of the market.

    Axiata gained 2.7% or 11 sen at RM4.17 with 5.75 million shares being traded.

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  • KT triples the Wi-Fi speed at 3 Seoul Starbucks branches

    KT triples the Wi-Fi speed at 3 Seoul Starbucks branches

    KT will triple the speed of the internet at some Starbucks Korea branches starting today.

    The company announced Monday that it will offer 10 GiGA Wi-Fi services at three Starbucks Korea branches. The cafes are in the Jongro Tower in central Seoul and COEX and Kyobo Tower in Gangnam District, southern Seoul.

    According to KT, the 10 GiGA Wi-Fi will enable consumers to use the internet at a speed of 4.8 gigabits per second (Gbps). This is three times the speed previously offered by the coffee chain, which topped out at 1.7 Gbps.

    The upgraded speed is meant to ensure the internet is still smooth and fast when multiple users are connected at once. In the past, customers complained about the internet slowing down when many users tried to connect at once.

    KT plans to expand the service to all of Starbucks’ premium Reserve stores in Korea by September.

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  • 4G investments impacting ratings of APAC telcos

    4G investments impacting ratings of APAC telcos

    Half of the companies covered in Fitch’s APAC Telecommunications – Peer Comparison report now have limited rating headroom based on our downgrade guidelines, after investments to roll out 4G networks and, in most cases, higher dividend commitments caused net leverage to rise in recent years.

    The ratings agency noted that only PT Telkom achieved high rating headroom, while PLDT, Telekom Malaysia, SK Telecom and Singtel have the least.

    Some companies have gained temporary relief through cost management, asset disposals and dividend reduction, which also reflect their commitment towards deleveraging. PLDT and Advanced Info Service Public Company reduced dividends to manage their cash flows.

    Rating triggers are typically less stringent for companies with strong business fundamentals and supportive market structures, which present a lower business risk profile.

    Fitch considers competitive position and financial structure as key differentiating factors for APAC telcos, attaching high importance to these two sub-factors.

    Competitive position captures the significance of scale benefits, strong market position and low competitive intensity in driving a robust business risk profile. Meanwhile, an issuer’s capital allocation and debt capacity underpin its financial structure.

  • Facebook scandal creates opportunity for cellcos

    Facebook scandal creates opportunity for cellcos

    The Facebook and Cambridge Analytica data harvesting scandal has eroded trust in digital service companies, which has opened a window of opportunity for mobile operators, according to new research from Openet.

    A survey of consumers in the Philippines, the UK, US and Brazil found that more than 50% of consumers are now less likely to share personal data with digital services companies.

    Consumers now see their mobile operator as more trustworthy than both social media platforms and digital services companies such as Netflix, Spotify and Skype.

    More than nine in ten (92%) consumers would be happy to consider mobile operator delivered digital services as an alternative.

    In addition, 66% would now prefer to pay for services if it means more control over their data, which could even signal the beginning of the end of the Freemium era, Openet said.

    Openet CEO Niall Norton noted that despite having an abundance of subscriber data, mobile operators have traditionally had a much more conservative approach to making use of this data compared to digital service providers.

    “For a long time, this conservative approach to data use has been used as an unfavorable measure for operators’ digital efforts, especially in comparison to other digital-first companies. But times are changing and it’s clear that consumers expect more if they are to hand over personal data in exchange for services,” he said.

    “Mobile operators have earned the right to answer this call. But to be successful, they must learn from the mistakes made by social media and digital service companies alike. Transparency around data collection and opt-in processes are now top priorities for consumers. Operators must bear this in mind when seizing new digital opportunities.”

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  • Telstra, Ericsson, Intel claim another 5G first

    Telstra, Ericsson, Intel claim another 5G first

    Australian operator Telstra, Ericsson and Intel announced they have jointly completed the first end-to-end 3GPP non-standalone 5G data call on a commercial network in a multi-vendor setup.

    The trial at Telstra’s 5G Innovation Centre on the Gold Coast used licensed 3.5-GHz spectrum, and Ericsson 5G new radio, baseband and packet core solution, a Telstra SIM and the Intel 5G Mobile Trial Platform.

    The trial involved a network connection to an Ericsson virtualized 5G packet core running on Ericsson’s network functions virtualization infrastructure. The 5G slice was then connected into the existing Telstra mobile network.

    Ericsson and Intel jointly completed the first lab-based end-to-end non-standalone 5G data call earlier this month, and the live demonstration builds on this milestone.

    Demonstrating this 5G data call end-to-end using my own personal SIM card on Telstra’s mobile network is the closest any provider has come to making a ’true’ 5G call in the real world-environment, and marks another 5G first for Telstra,” Telstra group managing director for networks Mike Wright said.

    Previous 5G firsts have included the first 5G data call over 26-GHz spectrum, Australia’s first 5G connected vehicle trial and its first 5G mobile gaming demonstration.

    “We continue to work with global technology companies Ericsson and Intel as well as global standards bodies to advance the deployment of commercial 5G capability in Australia,” Wright concluded.

  • Telekom Malaysia launches cheaper broadband plans, says more to come

    Telekom Malaysia launches cheaper broadband plans, says more to come

    Telekom Malaysia Bhd (TM) unveiled new broadband plans Thursday and pledged that it will continue to come up with more packages in line with the government’s aspiration for cheaper services by year-end.

    “We will continue, of course. This is the continuation of giving better and better (plans) to our customers, be they households or businesses. We started back in 2010 (launched unifi), then we had the upgrades in 2016 and 2017. So it is a continuation,” said acting group CEO Datuk Bazlan Osman.

    Speaking at a briefing on the new plans, Bazlan said it will consider feedback from customers, stakeholders and the government, and will continue to come up with more packages, based on demand.

    TM unveiled unifi Basic, a broadband-only plan at 30Mbps with a 60GB monthly usage quota for RM79 per month. This plan is only for households with monthly income of RM4,500 and below.

    The RM79 per month is 56% lower than the current 30Mbps unifi Home plan, which is priced at RM179 per month. Unifi Basic is available starting Aug 15 and pre-orders open on July 15.

    TM will provide upgrades of up to 800Mbps for existing unifi Home customers under its unifi turbo plan. Starting Aug 15, they will be upgraded in phases up to 10 times the current broadband speed, for the same price.

    For example, an existing 30Mbps unifi Home customer will be upgraded up to 300Mbps while a 100Mbps unifi Home customer will be upgraded up to 800Mbps. New customers who subscribe to any existing unifi plan before Dec 31 will also enjoy the speed upgrade in phases, beginning 2019.

    In addition, TM will upgrade over 340,000 Streamyx customers in unifi coverage areas to unifi while those who are not in unifi coverage areas will have double the speed they get now.

    Executive vice-president Imri Mokhtar said TM will continuously invest in fixed and wireless technologies to bring high speed broadband to its customers with more than 350,000 Streamyx customers expected to enjoy faster broadband soon.

    “Though the broadband plans unveiled today are primarily for home customers, we certainly have not forgotten our SME customers,” he said, adding that new plans for its business/SME customers will be announced in the next few months.

    Meanwhile, the unlimited unifi Mobile postpaid plan was announced today at a promotional price of RM99 per month, available from July 15 exclusively for its existing broadband customers.

    “These new plans mark our commitment to bring better affordability/price, speed and coverage for all Malaysians to enjoy a seamless digital experience with unifi. We expect the new broadband plans to place Malaysia alongside the top broadband nations in the region,” said Bazlan.

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  • Weaker Q2 earnings expected for major carriers

    Weaker Q2 earnings expected for major carriers

    Two of Korea’s three major telecom carriers are presumed to have posted weaker earnings for the April-June period from a year earlier, industry watchers said Sunday, apparently on increased mobile user discounts and changed financial reporting standards.

    According to the data compiled by market tracker FnGuide, SK Telecom, the country’s largest telecom network operator, is expected to report 366.2 billion won ($328 million) in operating profit in the second quarter, down 13.5 percent on-year. Its sales are forecast to decrease 1.6 percent to 4.278 trillion won.

    KT likely posted an operating profit of 387.8 billion won, down 13.3 percent, with sales largely unchanged at 5.87 trillion won.

    The operating profit of the third carrier and the smallest, LG U+ is forecast to grow 3.7 percent to 215.7 billion won on 3.04 trillion won in sales, up 1 percent.

    Analysts said the cut in SK Telecom’s and KT’s revenues is attributable to the increased number of users who signed up for monthly discounts of 25 percent.

    Smartphone users here are allowed to choose between a one-off discount and the sharp monthly cut in rates. The government policy aims to provide more affordable telecom services for local households and ban mobile network operators from rolling out excessive discounts on devices to lure each other’s clients.

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  • China, Japan and Korea enter 5G alliance

    China, Japan and Korea enter 5G alliance

    The ICT ministers of South Korea, Japan and China have jointly agreed to collaborate on the standardization of 5G technology.

    Korean minister for science and ICT Yoo Young-min, Chinese minister for industry and information technology Miao Wei and Japanese minister for internal affairs and communications Yoo Young-min convened last week to discuss ways to promote cooperation in communications policies and regulations.

    The meeting marked the first ministerial meeting between the three countries in seven years, and the sixth overall.

    The ministers agreed to collaborate on accelerating the commercialization of 5G technology, reducing roaming fees between the three countries and facilitating the deployment of 5G and other advanced technologies for the 2020 Summer Olympics in Tokyo and the 2022 Winter Olympics in Beijing.

    At the summit, more than 200 government and business leaders from the three countries also agreed to cooperate on the development of emerging technologies including 5G, IoT and AI.

    Meanwhile Korea’s ICT ministry has set today as the deadline for applications to participate in South Korea’s first 5G auction.

    The nation’s three mobile operators SK Telecom, KT and LG Uplus are expected to all apply to participate in the auction, which is scheduled to commence next Friday. Spectrum in both the 3.5-GHz and 28-GHz bands will be put on the block.

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  • Telstra launches mobile satellite small cell

    Telstra launches mobile satellite small cell

    Australia’s Telstra has launched a new offering providing satellite-based small cell solutions for remote areas, and has signed on the first customer for the service.

    The Mobile Satellite Small Cell product offering is designed to provide most of the benefits of Telstra’s LTE-Advanced services at a lower cost.

    People and organizations in remote areas will be able to use the service to extend coverage in underserved remote areas.

    According to Telstra, the service can support voice, email, messaging and internet browsing but is not intended to support data-heavy applications such as video streaming or calling.

    The operator is targeting the offering at local councils, tourist attractions, agricultural businesses and other organizations seeking to extend coverage where none exists.

    Telstra aims to sell up to 500 satellite small cells over the next three years after having tested the technology for the last 12 months. The first two small cells will be deployed for Queensland’s Winton Shire Council.

    “The Telstra 4GX-lite Mobile Satellite Small Cell is a way to bridge the gap between what customers want and what is financially viable. This solution gives consumers, businesses and local councils more control over where they can get mobile coverage, making them part of the decision making process,” Telstra group managing director for networks Mike Wright said.

    “We’ll continue to look for innovative ways to expand our network across the country so that all Australians can have access to the latest technology and stay connected to the things they love.”

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  • Kakao’s technical glitches cause disruptions Monday

    Kakao’s technical glitches cause disruptions Monday

    Korea’s top mobile messenger Kakaotalk resumed normal services after experiencing disruptions around 5 p.m., its operator Kakao said Monday.

    Kakao said the messenger suffered problems for around an hour before being normalized at 5:48 p.m. It claimed there seems to have been some sort of error while the system was being updated.

    Earlier in the day, deliveries of messages on its platform were delayed, and the personal computer version of the program was also not working properly.

    The company said the service is now fully normalized.

    KakaoTalk is the most popular mobile messenger app in Korea, boasting a whopping 40 million users.

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  • Naver to invest $134 million on overseas comics business

    Naver to invest $134 million on overseas comics business

    Korea’s top portal operator Naver said Monday it will invest 150 billion won in its online comic platform to better penetrate into overseas markets.

    Naver said it will make the investment through a paid-in capital increase program and acquire 300,000 additional shares in its wholly-owned affiliate, Naver Webtoon.

    Naver Webtoon said it plans to use the cash to expand its presence in foreign markets like the United States and Japan.

    The portal operator has been making various efforts to beef up its comic business, also investing some 60 billion won in January in its affiliate.

    Naver said it currently has some 5 million active users in the United States, claiming the investment will help Naver Webtoon achieve further growth going forward.

  • Telekom Malaysia tumbles 12% in early trade on news of lower broadband prices by year-end

    Telekom Malaysia tumbles 12% in early trade on news of lower broadband prices by year-end

    Shares of Telekom Malaysia Bhd slumped as much as 12.1% this morning to a low of RM3.19 in anticipation of a drop of at least 25% in broadband prices by year-end.

    At the noon break, the stock fell 39 sen or 10.7% to RM3.24 on 39.82 million shares done.

    Multimedia and Communications Minister Gobind Singh Deo said yesterday that discussions by relevant parties on the final charges are expected to conclude by August, after which lower priced broadband packages are expected to be offered.