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  • China Telecom enters Philippines third telco fray

    China Telecom enters Philippines third telco fray

    China Telecom and Telekom Austria’s Mobiltel have become the latest companies to purchase bid documents for the selection process for the Philippines’ third telco player.

    The operators purchased bid documents from regulator NTC on Saturday.

    The two overseas companies have joined six others, including Norway-based Telenor and fixed line operator Philippine Telegraph and Telephone (PT&T), in purchasing the application documents for the beauty contest style section process.

    China Telecom was approached by Philippines president Rodrigo Duterte last yearwith the opportunity of being awarded the third telco license, before the government elected to hold the selection process instead.

    Any overseas entity winning the third telco license will need to establish a joint venture with local companies in order to comply with the Philippines’ restrictions on foreign ownership in telecoms infrastructure.

    Meanwhile local company NOW Telecom, which has been vying to become the market’s third telco and has been fighting a legal battle to disrupt the selection process, has had its application for a temporary restraining order against the selection process rejected by a Manila court.

    The court reportedly found no basis for the restraining order on the grounds that NOW’s case does not meet the requirements such as a clear right to be protected, or an urgent need for an injunction due to the risk of irreparable injury.

    Bidders will have until early November to submit their bids for the selection process, which will be judged on criteria including guaranteed investment and rollout commitments.

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  • Spark launches flexible pricing broadband plan

    Spark launches flexible pricing broadband plan

    New Zealand operator Spark has moved to differentiate its broadband offerings by launching a new unlimited fiber broadband plan that offers consumers discounts on months they use less data.

    The company’s “Unplan” branded fiber broadband plan offers unlimited bandwidth for NZ$85 ($55.50) per month.

    But on months where consumers use less than 60GB of data this price reduces to NZ$65, and for months where 60GB to 120GB of data is consumed it reduced to NZ$75.

    An entertainment plan is also available for an additional NZ$10 per month that comes with 6 months of free Netflix and a subscription to the Spark-owned Lightbox SVOD service for the life of the plan.

    The offer is also available via Spark’s fixed wireless broadband service, but restrictions will apply on usage of over 300GB of data in a single month of regular usage of 180GB in an average month.

    “We think it’s a fairer way of offering broadband, as it reflects our customers’ needs. This is the first broadband plan in New Zealand that flexes to reflect customers’ data usage – and it has the potential to save our customers a lot of money,” Spark consumer lead Joe Goddard said.

    “It’s also the first plan that’s only available on new generation broadband options of wireless broadband and fiber.”

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  • Telenor, PT&T interested in Philippines third telco bid

    Telenor, PT&T interested in Philippines third telco bid

    At least six companies have purchased the bid documents related to the selection process for the Philippines’ third telco.

    A representative of the nation’s telecoms regulator NTC told local media on Tuesday that Telenor and three local ventures, as well as another company that has asked not to be named, had purchased bid documents for the selection process.

    Local fixed line operator Philippine Telegraph and Telephone (PT&T) has affirmed its interest in joining the fray by purchasing the documents.

    The fixed line operator has evaluated the terms of the bid documents and found them acceptable, and believes it has a strong chance of winning as the only local company that can satisfy the requirements, PT&T’s CEO James Velasquez told the publication.

    More potential applicants may purchase bid documents in the coming days.

    Bidders will have until between November 5 and November 7 to submit their bids for the beauty contest style selection process, and the winning applicant could be announced by as early as the same month.

    Any overseas company winning the license will need to partner with at least one local company to comply with the nation’s limits on foreign ownership of telecoms operations.

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  • China said to insert spy chips into Supermicro servers

    China said to insert spy chips into Supermicro servers

    An explosive report has accused Chinese intelligence agencies of sneaking a tiny chip into servers assembled in China for US chip maker Supermicro that introduced hardware vulnerabilities enabling stealth access to any network using the altered devices.

    US investigators have found evidence of an unprecedented supply chain attack on servers used by companies including Amazon and Apple.

    The allegedly compromised components were used by video streaming company Elemental Technologies for its services compressing video files and optimizing them for different devices.

    According to the report, a third party company hired by AWS to scrutinize Elemental’s security in advance of Amazon’s potential acquisition of the company discovered a tiny microchip in a sample server that was not part of the original design. Apple was also reportedly a major Supermicro customer, using its components for a global network of data centers, the report adds.

    This chip allegedly allows for the creation of a stealth doorway into any network using the altered servers. The investigation reportedly subsequently found evidence that the chips had been inserted by four subcontractors of Supermicro’s primary manufacturers for its motherboards, which are based in Shanghai and Taiwan.

    Interactions between Chinese officials, manufacturers and middlemen in China intercepted by investigators suggest that middlemen offered bribes and threats to coerce the subcontractors to insert the chips on behalf of a PLA unit specializing in hardware attacks, the report claims.

    But Amazon, Apple and Supermicro have all subsequently released statements challenging the report. Apple has been particularly firm in its denial of the report, stating that the company has repeatedly found “absolutely no evidence” to support Bloomberg’s claims, and has consistently provided statements refuting almost all aspects of the story as it relates to Apple.

    Supermicro has also stated that it is unaware of any investigation and has not been contacted by the government, while China’s Ministry of Foreign Affairs has insisted that the nation “is a resolute defender of cybersecurity” and that supply chain security is a concern of all governments.

  • Telenor Myanmar launches Asia 9 roaming package

    Telenor Myanmar launches Asia 9 roaming package

    Telenor Myanmar has launched a new international roaming package offering data roaming at local rates in nine Asian markets.

    The new Asia 9 plan offers data roaming at 9 kyats ($0.0058) per MB in Vietnam, Thailand, Malaysia, China, Singapore, Cambodia, Bangladesh, Pakistan and Indonesia.

    Aimed at prepaid and postpaid customers traveling to or working in the markets, the new plan has a weekly subscription fee of 900 kyats.

    Standard data rates in the nine countries start at 500 per MB. During a promotional period which will last until further notice, Telenor Myamnar will offer customers not subscribing to the new roaming package data roaming in the nine markets at 14 kyat per MB.

    “Telenor possesses one of the best data networks in the region and taking the best out of it, we created this new ‘ASIA 9’ promotion. Telenor customers in Myanmar can now browse the internet as if they are in their own country while they are traveling or working in those 9 Asian countries,” Telenor Myanmar CMO Amaresh Kumar said.

    “This would create the best chance for our customers to stay connected with their friends, families and even to run a virtual office. To offer the customers with the most affordable and innovative services that suit their needs is always on top of our priorities and we will continue to do so.”

  • StarHub to cut jobs in efficiency drive

    StarHub to cut jobs in efficiency drive

    Singapore’s StarHub has announced plans to cut around 300 jobs and pursue other cost-cutting measures as part of a plan to respond to intense competition and shrinking core telecoms revenues.

    The strategic transformation plan will also see the operator invest in growing new digital businesses such as its recently created cyber-security company Ensign InfoSecurity, in the development of ICT solutions for enterprise customers, and in digitalization initiatives aimed at improving the customer experience.

    StarHub’s planned headcount reductions will concentrate on non-customer facing functions, the operator revealed. The company also plans to make additional roles redundant through natural attrition and tighter management of contractor roles.

    Affected employees will be notified by no later than the end of the month. StarHub will take a $25 million one-off charge to fund restructuring costs including the provision of support for laid off employees.

    Through the headcount reductions and planned improved operational efficiencies, StarHub aims to generate S$210 million ($152.1 million) in savings over the three years from 2019.

    The operator is targeting savings in areas including procurement activities, leasing costs, maintenance and sales and distribution expenses, but plans to funnel a portion of these savings into the investments in new growth areas.

    “The intense competitive ferocity right across the market, new entrants, lower voice revenues, thinning margins for fixed broadband services, high content costs for Pay TV operations and high market penetration for mobile and fixed services, has necessitated efficiency optimization initiatives as part of the strategic transformation plan,” StarHub CEO Peter Kaliaropoulos said.

    “Technological innovation and competition are redefining how we deliver services to our customers and we at StarHub need to transform our operating model, otherwise we will face greater risks in the future. Our revised operating structure will be best placed to meet our strategic intent, enhance customer experience, increase accountability and effectiveness and improve competitiveness and agility.”

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  • Public cloud demand to drive data center infra market

    Public cloud demand to drive data center infra market

    Synergy Research Group (SRG) revealed that over the last 24 months, quarterly spend on data center hardware and software has grown by 28%, driven by burgeoning demand for cloud services and increased prices for more fully featured servers.

    The main beneficiaries have been vendors supplying public cloud infrastructure, who have seen a 54% growth in revenues over the period. Growth for enterprise data center infrastructure has been much lower and spending was actually in slow decline until the recent spike in server demand and pricing gave vendor revenues a boost.

    Within the enterprise it is private cloud infrastructure that is driving spending with a 45% increase since the second quarter of 2016. In terms of market share, ODMs in aggregate account for the largest portion of the public cloud market, with Dell EMC being the leading individual vendor, followed by Cisco and HPE. The Q2 market leader in private cloud was Dell EMC, followed by Microsoft and HPE. The same three vendors led in the non-cloud data center market, though with a different ranking.

    Total data center infrastructure equipment revenues, including cloud and non-cloud, hardware and software, were $38 billion in the second quarter, with public cloud infrastructure accounting for a third of the total. Private cloud or cloud-enabled infrastructure accounted for over a third of the total. Servers, OS, storage, networking and virtualization software combined accounted for 96% of the Q2 data center infrastructure market, with the balance comprising network security and management software.

    Dell EMC leads in both server and storage revenues, while Cisco dominates the networking segment. Microsoft features heavily in the rankings due to its position in server OS and virtualization applications. Outside of these three, the other leading vendors in the market are HPE, IBM, VMware, Lenovo, Huawei, Inspur and NetApp.

    “We are seeing cloud service revenues continuing to grow by 50% per year, enterprise SaaS revenues growing by over 30%, search/social networking revenues growing by over 25%, and e-commerce revenues growing by over 40%, all of which are driving big increases in spending on public cloud infrastructure,” said John Dinsdale, a Chief Analyst at Synergy Research Group.

    “That is not a new phenomenon. But what has been different over the last three quarters is that enterprise spending on data center infrastructure has really jumped, driven primarily by hybrid cloud requirements, increased server functionality and higher component costs,” concluded Dinsdale.

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  • NEC completes construction of SACS cable

    NEC completes construction of SACS cable

    Japanese vendor NEC has announced it has completed the construction of the first subsea cable crossing the south Atlantic ocean for Angola Cables.

    The South Atlantic Cable System (SACS) has been deployed and is now ready for commercial service. The cable system spans between Angola with Brazil, connecting the African continent to Latin America directly for the first time.

    The system uses a four fiber pair configuration to deliver an initial design capacity of 40Tbps. In Angola, it will land at the existing Sangano cable landing station, while in Brazil it will land in a newly constructed data center constructed for SACS and another cable system connecting Brazil with the US.

    SACS was partly funded through a loan provided by the Japan Bank for International Cooperation to Angola state-owned development bank the Banco de Desenvolvimento de Angola.

    “NEC is honored to have been selected as a partner for SACS, the world’s first optical submarine cable system crossing the South Atlantic, directly connecting two Portuguese speaking nations of Angola and Brazil,” NEC GM for submarine networks Toru Kawauchi said in a statement issued on Monday.

    “Yesterday, all communication between the two continents had to go up north and cross the North Atlantic. From today, this new cable will bring information at the speed of light, improving the connectivity between the two nations and two continents.”

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  • Singapore telcos expect partner ecosystem boom

    Singapore telcos expect partner ecosystem boom

    Half of communications service providers in Singapore expect to improve revenue by at least 16% in just two years by leveraging partner ecosystems, according to a new study from BearingPoint.

    Over 80% believe that partner ecosystems can help them remain competitive and 70% expect that ecosystems can improve the customer experience.

    But most operators are yet to embark on the execution of ecosystem strategies due to a series of technological challenges, including lacking  the right technology in place to manage monetization across the partner ecosystem.

    Other significant challenges include overcoming complex IT environments that may not be able to support minimum viable products and having the right technology to manage the partner ecosystem.

    Only 30% of operators in Singapore have embarked on partner system execution, while 40% are about to do so, 10% are analyzing their options and 20% are at the very start of their journey, the survey found.

    “Based on our research, companies leveraging digital platform-based business models have already doubled their growth rate compared to businesses that have stayed stagnant in their CSP transformation efforts,” BearingPoint Asia Pacific senior representative Dr Chris Stephenson said.

    “That only a fifth of CSPs appear to be in the initial stage is a matter of concern.  A lot of CSPs today continue to rely on rapid product commoditization rather than proactively taking steps to create new more compelling products that will drive profits now and in the future.”

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  • Juniper Networks unveils 5G-ready routing platform

    Juniper Networks unveils 5G-ready routing platform

    Juniper Networks has announced plans to launch a 5G and IoT ready routing platform to help operators, cloud providers and enterprise customers manage the growing complexity of next-generation service delivery.

    The MX Series 5G Universal Routing Platform will support extensive feature programmability, as well as hardware accelerated 5G control and user plane separation (CUPS) functionality.

    The 3GPP CUPS standard is designed to allow customers to separate the evolved packet core user plane and control plane to allow operators to scale each independently as needed.

    Juniper’s new Penta Silicon chipset will power the new platform. The company said the new chipset supports both MACsec and an IPsec cryptography engine, and can originate and terminate thousands of IPSec sessions without sacrificing performance.

    According to Juniper Networks chief product officer Manoj Leelanivas, research from the company found that operators consider the cost and complexity of orchestrating a distributed network to be among the top challenges associated with being able to offer 5G and other next-generation network services.

    “Cloud is eating the world, 5G is ramping up, IoT is presenting a host of new challenges and security teams simply can’t keep up with the sheer volume of cyber attacks on today’s network,” Leelanivas said.

    “One thing service providers should not have to worry about among all this is the unknown of what lies ahead. That’s why we’ve continued innovating our flagship MX platform to deliver more speed, flexibility, programmability and security capabilities, giving our customers the peace of mind they need as a variety of demands continue to put pressure on the network.”

    The first router products powered by the new platform are expected to launch during the second half of the year.

  • Vietnam poised to build on IT outsourcing gains

    Vietnam poised to build on IT outsourcing gains

    Apart from skills and adaptability, low staff turnover in the sector makes the country more attractive to tech giants.

    Vietnam continues to be a favored outsourcing destination for multinational companies even as the current leader, India, experiences some hiccups.

    A recent article in the Forbes magazine said in its title that Vietnam was a “small but mighty powerhouse” for IT outsourcing.

    It said giant technology companies like Intel, IBM, Samsung Display, Nokia, and Microsoft continue to invest in Vietnam’s growing tech workforce.

    The author of the article, Anna Frazzetto, Chief Digital Officer and Senior Vice President at Harvey Nash, which has a decade plus of outsourcing experience in Vietnam, said, “technology specialists in Vietnam are comfortable with quickly becoming a natural extension of global clients, ready to challenge norms and bring innovative ideas to the table.”

    Another major factor that makes Vietnam attractive is the tendency of people to stay on in the country, unlike IT professionals in India, Malaysia and other countries who are ready to move to other countries for jobs that pay well.

    While the relative lack of fluency in English is a growth constraining factor, Vietnam’s investment in education, and the extra attention it pays to nurturing knowledge and talent in science and math is a positive aspect that will help Vietnam build on its outsourcing potential, she said.

    These positive factors have meant that business process outsourcing (BPO) is growing fast in Vietnam. In 2017, consulting firm PricewaterhouseCoopers (PwC)’s “Spotlight on Vietnam” report also indicated that BPO was among the country’s most five promising sectors to invest in.

    Also last year, the Vietnam Software and IT Services Association (VINASA) said the country’s BPO industry has grown 20 to 35 percent annually over a decade.

    A Global Services Location Index report in 2017 by A.T Kearney consulting firm said Vietnam has jumped five places to sixth for countries with great financial attractiveness, availability of highly skilled people and good business environment. The five countries above Vietnam were India, China, Malaysia, Indonesia and Brazil.

    Dinh Thi Quynh Van, general director of PwC Vietnam, said in a Voice of Vietnam report earlier this year that Vietnam’s BPO was following a similar growth trajectory to that of India and the Philippines.

    But she said Vietnam’s BPO workforce should stay innovative to meet ever-increasing demand in the market.

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  • Japan’s KDDI sets sights on extended reality

    Japan’s KDDI sets sights on extended reality

    KDDI is branching out into the emerging world of extended reality (XR) – which includes virtual reality, augmented reality and mixed reality – by forging partnership with US-based Osterhout Design Group (ODG) to jointly plan and develop XR-based smartglasses for the Japanese market.

    The Japanese operator is also teaming with various partners to conduct business trials and create XR services as the company moves toward developing new business operations using virtual characters and other XR technologies to create new business models for the coming era of widespread 5G use.

    The partnership with ODG, announced last week, will see KDDI help with the development of domestic Japanese products using the R-9 smartglasses developed by ODG. The operator will help optimize the potential of smartglasses for the Japanese domestic market through practical testing.

    According to KDDI, the R-9 smartglasses to be used in future verification tests are equipped with the Qualcomm’s Snapdragon 835 chipset and compatible with an AR/VR app that enables stand-alone position tracking for users.

    The R-9 smartglasses will feature a wide 50° viewing angle, and will be compatible with wide-screen displays using 22:9 and 16:9 aspect ratios. The R-9 smartglasses will also include dual stereo cameras; front camera with 13-megapixel resolution; and simultaneous Localization and Mapping (SLAM) compatibility.

    KDDI and ODG also plan to work with Qualcomm toward equipping future models with a modem function to bring cellular communications capability to smartglasses in addition to existing Wi-Fi functionality.

    KDDI and various partner companies, such as Japan Airlines, plan to begin practical testing of smartglasses in Japan in June.

    Collaborating with partners to create virtual characters and XR services

    In a separate announcement, KDDI said it is planning to start conducting business trials on the XR technologies with various partner companies beginning this month.

    Through business trials with various partner firms and applications of this technology, KDDI aims to create worlds in which people and virtual characters can communicate interactively.

    So far KDDI has worked with Crypton Future Media for the development of the Miku☆Sampo AR application. Moving forward, the operator plans to expand the AR presentation developed through Miku☆Sampo to enable users to communicate more naturally with the character.

    This will be accomplished through virtual character development capabilities unique to AI, which enable the character to recognize and understand objects and sounds, etc., in the surrounding environment, KDDI said.

    In addition, this project will include a real-time image recognition engine provided by Couger. Couger will also cooperate with virtual character AI-related technology.

    KDDI’s announcements signal the increased interests from telecoms operators in VR/AR. According to GlobalData, telecoms operators – who have a key role in enabling VR/AR services as providers of broadband and mobile network services – are exploring  revenue opportunities in VR/AR that are beyond 5G data and connectivity.

  • PT Telkom profit falls 14% in Q1

    PT Telkom profit falls 14% in Q1

    Indonesia’s PT Telkom has reported a 14% decline in first quarter profit to 5.73 trillion rupiah ($410.8 million), partly as a result of stricter competition.

    Revenue for the quarter grew 4.3% to 32.3 trillion rupiah, but tighter competition and the ongoing decline in revenue from legacy voice and SMS revenue impeded further growth.

    Data, internet and IT services revenue by comparison grew a strong 23.3% to 15.9 trillion rupiah due to increasing demand as a result of the growing use of smartphones.

    Mobile broadband subscribers grew 21.3% to 108.73 million subscribers, with mobile subsidiary Telkomsel reporting a net profit of 6.4 trillion rupiah and revenue of 21.9 trillion rupiah.

    On the fixed line front, consumer broadband revenue grew to 3.1 billion rupees with enterprise revenue increasing to 8.63 trillion rupees. Subscribers to Telkom’s IndiHome fiber broadband service nearly doubled to 5.74 million.

    Telkom’s capex for the quarter reached 6.13 trillion rupees, up from 6.06 trillion the year earlier, the report adds.

    The funds were primarily used to finance the construction of new base stations, expand access network and backbone infrastructure and develop the operator’s Sea Cable Communication System that supports its fixed and mobile broadband businesses.

     

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  • uCloudlink launches innovative mobile data service GlocalMe Inside

    uCloudlink launches innovative mobile data service GlocalMe Inside

    uCloudlink, the global innovative mobile data solution provider, has today launched GlocalMe® Inside, a powerful data service designed for frequent and business travelers. GlocalMe® Inside service provides network coverage in 100+ countries and regions, enabled by CloudSIM technology and delivered through extensive carrier partnerships that ensure fair local data charges for its customers. This move marks the introduction of a new era of positive disruption for cross-border business, bringing expense management, convenience, flexibility and robust global network coverage for reliability of service.

    Alongside this new service innovation, uCloudlink also introduces two models of the brand new GlocalMe® Inside World Phone, in which the service has been pre-installed.

    As of April 2018, the new GlocalMe® Inside service has been rolled out in Hong Kong in collaboration with Hong Kong Broadband. The company is also in active conversations with potential customers and partners across key markets in Asia and North America, discussing the launch of GlocalMe® Inside service’s forthcoming global footprint in the near future.

    Mr. Simon Tan, Co-Founder and Chief Marketing Officer, uCloudlink says, “uCloudlink is dedicated to continuous mobile data solution innovation. Our vision is to offer the utmost accessibility of mobile data for everyone in the world. The new service and our new phone products are a reflection of our commitment to improve global mobility by enhancing and sharing CloudSIM technologies with the world. This will achieve true global connectivity and sharing without limitations. We hope this service innovation can turn many silent roamers into active ones, addressing one of the most pressing challenges facing the entire industry.”

    Elitek is the first phone brand to be launched with the service embedded. uCloudlink is expecting to see increasingly rapid collaboration with more third-party phone brands in the future for which the GlocalMe Inside mobile data service will be available, making them the first true World Phone.

    Mr. Bill Zhang, General Manager of the Smart Devices Business, uCloudlink, explains, “We are very excited about this service innovation which represents a significant breakthrough for business users and other mobile data service users who travel extensively. GlocalMe® Inside overhauls the current mobile data package fee and contracting model, and therefore is a massively positive disruption to the telecommunications industry in this regard. For too long, service users have been subject to high rates, non-transparent pricing models and data roaming which often costs well beyond what was expected; the GlocalMe® Inside revolution changes all that. We have for a long time now been inspired by the truly disruptive players who have changed the way the world works, from social media and accommodation booking services to app-based technology and changes to the media industry by disruptive communication. This is what uCloudlink GlocalMe® Inside is all about”.

    Global roaming revenue was not significantly increased with the growth of international travelers and smartphone users as was expected by the carriers. The main reason is the user’s fear of high data roaming charges. “Our disruptive technology and innovations built on customer convenience and genuine cost management changes all of this”, he concludes.

  • Vocus Group scraps plans to sell NZ business

    Vocus Group scraps plans to sell NZ business

    Australian enterprise-focused fixed line operator Vocus Group has abandoned plans to sell its New Zealand business, ending negotiations with all interested parties.

    In a statement, Vocus Group said none of the multiple offers it had received for the New Zealand business appropriately reflected the strategic value of the operation.

    The offers also did not provide the required certainty of funding and execution, according to Vocus Group chairman Bob Mansfield.

    As a result, Vocus Group now plans to “continue to invest in and grow Vocus NZ to enable that business to realise its strategic potential for shareholders.”

    Vocus Group first revealed it was seeking a buyer for its New Zealand operations in October 2017, and had originally planned to complete the sale by June this year.

    The company meanwhile announced that it is in the process of finalizing the appointment of several banks to arrange a full refinancing of its existing debt facilities, which will include an upsizing of the facilities. Vocus expects to complete its debt refinancing by the end of June.

    “The board would like to thank our bank group for their strong support shown to date,” Mansfield said.

    “We are comfortable that the increased financial capacity and covenants that will be sought through the refinancing will provide sufficient financial flexibility for the company to complete its strategic and transformation initiatives over the next few years.”