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Tag: telecom

  • Ooredoo Group and CK Hutchison poised for US$6 billion telecom merger

    Ooredoo Group and CK Hutchison poised for US$6 billion telecom merger

    Ooredoo and CK Hutchison announced the signing of definitive transaction agreements for the proposed merger of their respective telecommunications businesses in Indonesia, PT Indosat Tbk (Indosat Ooredoo) and PT Hutchison 3 Indonesia (H3I). The merged company will be named PT Indosat Ooredoo Hutchison Tbk (Indosat Ooredoo Hutchison).

    The merger of Indosat Ooredoo and H3I will bring together two highly complementary businesses to create a larger, commercially stronger and more competitive world-class digital telecoms and internet company, well placed to deliver more value for all shareholders, customers and for Indonesia.

    Indosat Ooredoo Hutchison will be well-positioned to accelerate Indonesia’s economic growth and transformation into a digital society. It will be the second-largest mobile telecoms company in the country, with an estimated annual revenue of approximately US$3 billion.

    The combined company will have the scale, financial strength, and expertise to compete more effectively. Combining the highly complementary assets and products of Indosat Ooredoo and H3I will drive innovation and network improvements that will enable the delivery of outstanding digital services, as well as a broader product offering, to customers across Indonesia.

    Indosat Ooredoo and H3I own highly complementary infrastructure and the combination of these assets will also enable the merged company to benefit from cost and CAPEX synergies and provide accretive returns to all stakeholders. Annual run-rate pre-tax synergies of approximately US$300-400mm are expected to be realized over 3-5 years.

    In addition, Indosat Ooredoo Hutchison will be able to leverage the experience and expertise of Ooredoo Group and CK Hutchison in networks, technologies, products and services, and benefit from their multinational operations spanning major markets in Europe, the Middle East, North Africa, and Asia Pacific. The merged company will also benefit from their combined strength and economies of scale in functions such as procurement.

    Following the merger, the Indonesian mobile market is expected to retain a healthy level of competition, attractive to long-term investment across the industry.

    Ooredoo Group currently has a controlling 65.0% shareholding in Indosat Ooredoo through Ooredoo Asia, a wholly-owned holding company. The merger of Indosat and H3I will result in CK Hutchison receiving newly issued shares in Indosat Ooredoo amounting to 21.8% and PT Tiga Telekomunikasi Indonesia amounting to 10.8% of the merged Indosat Ooredoo Hutchison business.

    Concurrent with the merger, CK Hutchison will acquire a 50% shareholding in Ooredoo Asia by exchanging its 21.8% shareholdings in Indosat Ooredoo Hutchison for a 33.3% stake in Ooredoo Asia, and will acquire an additional 16.7% stake from Ooredoo Group for a cash consideration of US$387 million. Following the above transactions, the parties will each own 50.0% of Ooredoo Asia, to be renamed Ooredoo Hutchison Asia, which will retain a controlling 65.6% ownership stake in the merged company.

    Upon closing of the transactions, Indosat Ooredoo Hutchison will be jointly controlled by Ooredoo Group and CK Hutchison. It will remain listed on the Indonesian Stock Exchange, with the Government of Indonesia retaining a 9.6% shareholding, PT Tiga Telekomunikasi Indonesia holding a 10.8% shareholding, and other public shareholders holding approximately 14.0%.

    Subject to necessary Indosat Ooredoo shareholder approvals, the parties have agreed to nominate Vikram Sinha as CEO and Nicky Lee as CFO of Indosat Ooredoo Hutchison. Ahmad Al-Neama will remain President Director and CEO of Indosat Ooredoo and Cliff Woo will remain as CEO of H3I until completion of the merger. Upon completion, Ahmad Al-Neama and Cliff Woo will join the Board of Commissioners of the merged company, subject to the necessary Indosat Ooredoo approvals.

    The parties are committed to prioritizing employee welfare during the integration process in adherence with applicable laws and aligned with future business growth opportunities. The combined company is expected to create exciting growth opportunities for employees, as part of a larger, financially stronger, more competitive and innovative technology company.

    Aziz Aluthman Fakhroo, Managing Director of Ooredoo Group, said: “This agreement is a significant step towards our shared vision of creating outstanding value for our customers and shareholders by bringing together two of Indonesia’s leading telecoms brands to create a stronger number two player in Indonesia, backed by two highly committed partners in Ooredoo Group and CK Hutchison. With this agreement in place, we can now turn our attention to closing the transaction and then working closely with CK Hutchison to leverage the combined expertise of our respective global telecoms groups to build a world-class digital telco for Indonesia.

    This merged company will deliver significant value and benefits for all stakeholders including Indosat Ooredoo and Ooredoo Group shareholders, for customers, employees and Indonesia. Through economies of scale and the realization of synergies between these highly complementary businesses, the merged company will be well placed to deliver a higher return on investment for all shareholders and build on the outstanding growth momentum already achieved by Indosat Ooredoo. Importantly, the merger will create a company with the strength and scale to accelerate Indonesia’s digital transformation and improve network performance and customer experience across the country.

    Canning Fok, Group Co-Managing Director of CK Hutchison Holdings Limited, said: “This is a great opportunity to create a stronger and more innovative telco player in Indonesia and will be an accretive transaction for shareholders and other stakeholders alike. Indosat Ooredoo Hutchison will have a critical mass that will enable it to drive network expansion and improvements that will support the Government’s digital agenda and benefit customers and Indonesia as a whole.”

    “With greater scale, expanded spectrum, and a more efficient cost structure, Indosat Ooredoo Hutchison will also be better positioned to extend the rollout of its network and enhance service quality and speed. CK Hutchison invests in and operates telecom businesses in 12 markets around the world, many of which have successfully rolled out 5G networks, and we look forward to expanding innovative 5G services in Indonesia when the time is right.”

    H.E. Sheikh Faisal Bin Thani Al Thani, Chairman of the Board of Directors at Ooredoo Group, concluded: “This merger is a landmark deal for Asia and for Ooredoo Group. It furthers our strategy to drive more value from our portfolio and accelerate digitalization across our global footprint. I look forward to a long and successful partnership with CK Hutchison and to working together to build Indosat Ooredoo Hutchison into a digital champion for Indonesia.”

    Completion of the transaction will be subject to the approval of Ooredoo Group, CK Hutchison, Indosat Ooredoo shareholders, regulatory approvals and other customary terms and conditions. Assuming all approvals are received, the proposed combination is expected to be completed by the end of 2021.

    JP Morgan is acting as exclusive financial advisor to Ooredoo Group. Goldman Sachs & Co. and HSBC are acting as joint financial advisors to CK Hutchison. Barclays is acting as financial advisor to Indosat Ooredoo.

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  • India announces major telecoms reforms to boost industry

    India announces major telecoms reforms to boost industry

    The Union Cabinet approved on Wednesday several structural and process reforms in a relief package targeting the telecom sector to ensure its healthy growth in a digital era.

    In a move lauded by industry players as a positive step towards promoting the industry and addressing long-standing concerns, the reforms are expected to foster healthy competition, protect the interests of consumers, infuse liquidity, encourage foreign investment and reduce regulatory burden on telecom service providers (TSPs).

    These reformatory measures will fuel the proliferation and penetration of broadband and telecom connectivity, which has witnessed heightened demand against a pandemic backdrop, where activities such as work from home and remote learning have driven an unprecedented surge in data consumption.

    The measures comprise nine structural reforms and five procedural reforms plus relief measures for TSPs. Bringing respite to the industry, all TSPs have a four-year moratorium for payment of adjusted gross revenue (AGR) due. According to minister Ashwini Vaishaw, the moratorium will ensure significant cash flow for telecoms without affecting the government’s revenue. This will help India’s telecom giants address prevailing cash flow issues, enabling them to conserve capital to fund capital expenditure and invest in 5G. Vodafone Idea, for instance, will be able to defer payments of about Rs 96,000 crore.

    To encourage foreign investment, another structural reform includes 100% foreign direct investment (FDI) under automatic route permitted in the telecom sector, though neighbouring countries including Pakistan and China will not be allowed to invest under the automatic route. Previously, only 49% was under the automatic route.

    In addition, spectrum sharing will also be made free, with an additional spectrum usage charge (SUC) of 0.5% for spectrum sharing being scrapped. There will also be no SUC for spectrum required in future spectrum auctions.

    The Cabinet also announced that there is no need for separate KYC to switch from postpaid to prepaid, or vice versa.

    Currently, India is the world’s second-largest telecommunications market with a subscriber base of 1.16 billion. These reforms demonstrate the government’s commitment towards building the nation’s digital future.

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  • Australia opens application for low band 5G spectrum auction

    Australia opens application for low band 5G spectrum auction

    The Australian Communications and Media Authority (ACMA) has opened applications for the upcoming 2021 auction of 5G spectrum in the 850/900 MHz band.

    Low band spectrum forms the backbone of 5G connectivity in Australia. Spectrum in the sub‑1 GHz bands can carry signals across longer distances and is essential to the deployment of wide-area networks, such as mobile services and fixed wireless internet.

    ACMA Chair Nerida O’Loughlin said the allocation of 5G-optimised spectrum in the 850/900 MHz band will support new and existing operators to better deliver services across regional, rural and remote areas of Australia, as well as to major population centres.

    “The spectrum available in this auction will facilitate a wide range of new services that will benefit businesses and consumers across Australia,” Ms O’Loughlin said.

    The ACMA will auction 70 MHz of paired spectrum in the 850/900 MHz band across all of Australia. The application period runs from 1 September 2021 to 21 September 2021 with the spectrum auction scheduled to commence in late November/early December 2021.

    “We encourage all interested parties to apply during this window so they can participate in the auction in late 2021,” Ms O’Loughlin said.

    The spectrum auction is an opportunity for interested parties to bid for spectrum that will accommodate the deployment of 5G services in Australia.

    The ACMA has prepared an applicant information package (AIP) for interested parties, which provides a detailed auction guide, information on the spectrum available and starting prices.

    The auction forms part of the Australian Government’s plan to make 2021 the   Year of 5G. The ACMA auctioned high-band spectrum in the 26 GHz band in April this year for a total revenue of $647 million.

  • Powering 5G and beyond with satellites

    Powering 5G and beyond with satellites

    The development of 5G and its applications in the Internet of Things, where 1.8 billion active 5G connections are estimated by 2025, is generating greater interest in satellite solutions to fulfill the criteria of reduced network latency, increased data volume, and connection density. In areas where terrestrial networks are absent or found lacking, satellites can fill the gap to provide ubiquitous connectivity in an increasingly connected world.

    In powering the next wave of technological innovations, satellites offer coverage that surpasses terrestrial networks, delivering high-powered reliable connectivity and secure global mobility. Satellite connectivity plays a particularly significant role in maritime and aeronautical industries, as well as use in critical disaster relief and emergency response missions.

    Without a doubt, satellites are emerging as integral components in 5G networks to address the unprecedented surge in connectivity demand to ensure that consumers and enterprises have access to data anytime, anywhere. Advances in this field have also been rapid to keep up with the global digital evolution. Satellite connectivity, once synonymous with high costs and high latency, is now viewed in a new light with recent advancements. For instance, low earth orbit (LEO) constellations have gained momentum as a more cost-effective alternative to improve coverage area, improve quality and deliver low-latency connections, particularly for remote populations. Next-generation LEOs are launched to significantly increase bandwidth to benefit all rungs of societies.

    With satellites playing an important role in the global connectivity ecosystem to connect the unconnected and provide backhaul connectivity for mobile network operators, both satellite communications startups and giants are pushing boundaries to deliver innovation and seamless solutions. For instance, UK satellite operator Immarsat recently announced the launch of Orchestra, a new and innovative multi-orbit global narrowband network that combines geostationary (GEO), low earth orbit, highly elliptical orbit (HEO), and terrestrial 5G. Building on existing connectivity capabilities, Immarsat also launched ELERA to accelerate IoT development and support humanitarian missions.

    SES also unveiled its O3b mPOWER constellation of 11 satellites to deliver multi-gigabit connectivity services to industries including telecommunications, aviation and maritime. This system is capable of providing intelligence-driven connectivity services with optimized global bandwidth availability and resiliency.

    To support intelligent 5G networks, satellite connectivity must be embraced to empower consumers, enterprises, and governments. For communications providers and mobile network operators, this means that satellite solutions are becoming important features to enhanced 5G networks to keep up with increased broadband demand. Satellites will complement terrestrial networks through traffic offloading, harnessing satellite’s multicasting or broadcasting functionality for new uses, enabling verticals such as smart mines, ports, and farms. It also opens up opportunities for the use of cloud in industries such as marine and offshore and fisheries, where activities are conducted predominantly in remote areas.

    However, mobile network operators tend to place emphasis on 5G upgrades in highly-populated cities. Because of this, satellite-based broadband is critical to increasing the reach to often neglected, underserved populations in rural areas, where connectivity can close a digital divide already aggravated by the pandemic to raise overall digital inclusion levels.

    In Asia Pacific, for instance, countries comprising tens of thousands of islands, such as Indonesia and the Philippines, are well-positioned to benefit from satellite as a viable and affordable alternative to connect the country and underserved geographies, as opposed to incurring high economic costs from building terrestrial network infrastructure.

    In the industry, some providers are primarily focused on providing 5G services to smartphone users – serving as mobile roaming partners to offer connections to hard-to-reach precincts. In view of this, 3GPP is currently looking into introducing non-terrestrial networks in 5G standards, to be published in the 3GPP Release 17 in 2022. This could signal new collaboration opportunities between mobile network operators and satellite operators in the near future.

    As countries accelerate digitalization ambitions, connectivity will become the new driver of economic growth and social cohesion. Citing Indonesia as an example, where its digital economy is predicted to triple to US$124 billion by 2025, the government is already looking into launching its largest telecommunications satellite in the near future. Clearly, the rise of satellites can be transformative. It is the vision of many for the region to witness faster digitalization and stronger economies.

  • Tata Communications posts 14.9% YoY PAT

    Tata Communications posts 14.9% YoY PAT

    Tata Communications has announced its financial results for the quarter ended 30 June 2021. Consolidated revenue came in at INR 4,103 Crore (USD 556 Mn), growing 0.7% quarter-on-quarter (QoQ), and decreasing 6.8% year-on-year (YoY). This YoY contraction is primarily due to reduction in Voice business and moderation of Collaboration traffic in the Data segment.

    Consolidated EBITDA stood at INR 986 Crore (USD 134 Mn); a reduction of 5.3% YoY. This quarter, EBITDA has been impacted by a provision of INR 33 Crore on account of license fee on revenue from pure internet services which was allowed as deduction in the definition of Adjusted Gross Revenue (AGR) earlier. Despite this impact EBITDA margin has expanded by 40 BPs YoY. CAPEX for this quarter grew to INR 381 Crore as compared to INR 372 Crore in Q1 FY21.

    Data business revenue came in at INR 3,104 Crore witnessing a growth of 0.6% QoQ and a 2.2% YoY reduction. Data business continues to be affected by COVID related slowdown. Enterprise decisions have been slow due to macroeconomic headwinds leading to longer lead time for deal wins. Service delivery was affected by lockdowns during the 2nd Wave of COVID-19 pandemic. EBITDA for the segment stood at INR 932 Crore; up 0.4% QoQ and decline of 2.4% YoY. EBITDA was affected by provision of license fee made during the quarter and despite this impact EBITDA margin is maintained at 30%.

    In Core Connectivity, there is healthy growth in revenue by 1.7% YoY, and EBITDA increased by 0.3% YoY with margins at 42.6%. Digital Platforms and Services were affected by the moderation of Collaboration traffic which was at its peak in Q1 FY21. Revenue strengthened by 2.9% QoQ but reduced by 12.8% YoY. There are early signs of recovery and an uptake of usage-based services in geographies where economies have opened.

    “In a challenging quarter impacted by the second wave of COVID-19, we have delivered a robust performance,” said A S Lakshminarayanan, Managing Director and CEO, Tata Communications. “The global markets are slowly opening up and we are witnessing greenshoots of demand recovery.”

    He added, “Our focus is to continue investing in developing innovative digital ecosystem solutions driven by customers’ needs. Early demand for our recent launches for live sports on our Media Edge Cloud and IZO™ Financial Cloud is testament that we are moving in the right direction.”

    Commenting on the results, Kabir Ahmed Shakir, Chief Financial Officer, Tata Communications, said, “Our focus on growth and profitability continues to deliver results. A healthy profit and free cash flow is empowering us to innovate and accelerate growth while streamlining processes and bringing in further efficiencies. We are well-poised to enable enterprises make the shift with digitalization playing a pivotal role enabling businesses derive positive growth.”

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  • ZTE receives 2021 Global Server Product Innovation Award by Frost & Sullivan

    ZTE receives 2021 Global Server Product Innovation Award by Frost & Sullivan

    ZTE Corporation has been presented with 2021 Global Server Product Innovation Award by Frost & Sullivan, based on the investigation and analysis of 2021 global server product market, as well as the research and evaluation on mainstream server competitors within the industry.

    This award is to honor ZTE Corporation’s continuous innovation and progress in the global server product market, its technology leadership position in the industry, and its contribution to the overall development of the server industry.The reform of IT infrastructure is the engine of the digital transformation of enterprises. Regarding the rapid increase in data traffic in the era of the digital economy, enterprises’ IT infrastructure requires stronger computing power to deal with the massive data. Meanwhile, due to differences in products and services and different application scenarios, each type of industry has also formed diversified and customized needs.

    Under this background, the opportunities and challenges coexist for the server vendors. In terms of computing power, simply expanding data centers might help in dealing with data, but it also makes the data centers’ structure more complicated and harder to conduct operations and maintenance. Regarding this difficulty, companies and organizations require not only powerful data processing capabilities, but they also want more intelligent operations and maintenance, and simpler deployment methods of IT equipment.

    In terms of differentiated demands, servers, the infrastructure platform for enterprises’ IT systems, are required to respond to a large number of service requests and process services. In addition, companies and organizations in related industries have also proposed more differentiated requirements on performance, reliability, adaptability, and flexibility of servers.

    For instance, the financial enterprises rely on servers, storage and cloud operating systems to build a stable and reliable financial cloud platform; the telecom enterprises need to effectively assist customers in the reform of “network moving with the cloud” and “cloud and network integration”. The power enterprises require to ensure the power market safety and under control, and provide a stable and smooth operation environment for the national grid information system, etc. Products or services that can better meet the differentiated needs of various industries will stand out under the change.

    In the new era of servers becoming high performance, high reliability and diverse computing power, coupled with companies in related industries put forward higher requirements on the server performance, reliability, adaptability and flexibility. ZTE keeps up with the trends, constantly innovating technology and launching new products to meet new requirements:

    In the aspect of data processing, The G4X server newly introduced by ZTE uses 2 Intel Xeon third-generation extensible processors (Ice Lake) with a single processor up to 40 cores. Its performance is at the top level of the industry, providing an efficient engine for enterprises in the process of digital transformation.

    In the aspect of meeting the needs of multiple industries, ZTE G4X server boasts four to eight built-in heterogeneous and intelligent computing acceleration engines, which can satisfy the requirements of various scenarios of artificial intelligence, image processing and industrial control, etc.

    In the aspect of server reliability, ZTE G4X server can effectively meet the server reliability requirements of government, finance, railway, power grid and other enterprises. For instance, all ZTE servers are designed and produced based on telecom equipment standards. The reliability of the products is also verified by telecom product requirements, and can be efficiently adapted to the business environment of enterprises.

    In the aspect of environmental adaptation, ZTE adopts stringent standards for verification from R&D and design to producing and manufacturing. For example, to verify and improve ZTE G4X server’s reliability under high-stress environmental conditions, the server is tested at high and low temperatures ranging from 0 to 50 degrees. Moreover, to improve the protection capability of ZTE’s products in complex environments, ZTE uses a higher level of 6-8kV test standards. Furthermore, to identify extreme working conditions of products and continuously improve the product design, ZTE also conducts a HALT (High Accelerated Life Test) test.

    In the aspect of flexibility, ZTE G4X server realizes a flexible combination of “1 product, 2 chassis and 7 models” through modular design, effectively reducing O&M costs and deployment time for enterprise customers. It even refreshes world records of SPEC CPU performance tests, setting new world records in floating-point calculation and integer calculation performance tests.

    Overall, ZTE G4X server features ultimate performance, flexible expansion, high reliability and efficient O&M, providing new momentum for the digital transformation of various industries.

    Frost & Sullivan Best Practices awards recognize companies in a variety of regional and global markets for demonstrating outstanding achievement and superior performance in areas such as product revenue, technological innovation, customer service and strategic product development. Industry analysts compare market participants and measure performance through in-depth interviews, analysis, and extensive secondary research to identify best practices in the industry.

    Frost & Sullivan’s analysts and consultants continuously research a wide range of markets across multiple sectors and geographies. As part of this ongoing research, it identifies companies that have successfully introduced new and innovative products into their markets, with emphasis on product innovation and customer value. This involves extensive primary and secondary research across the entire value chain of specific products. Against the backdrop of this research, Frost & Sullivan is pleased to recognize ZTE Corporation for 2021 Global Server Product Innovation Award.

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  • Nokia secures first 5G contract in China

    Nokia secures first 5G contract in China

    Nokia secured a 5G RAN contract for China Mobile on Monday, making this the company’s first 5G contract in the country.

    Nokia was awarded a 10% share in one of three contracts tendered by China Mobile, while Ericsson obtained 9.6% of another contract. The total tender for all three contracts reached about $6 billion, with Nokia being awarded 4% of the overall tender. Comparatively, Ericsson was awarded 2%, dropping from about 11% last year.

    Together, Huawei and ZTE won the majority share in all three contracts to build 5G 700 MHz base stations for China Mobile and China Broadcasting Network. This is followed by a smaller local company Datang Corporation.

    China Telecom and China Unicom will also be disclosing awards of their respective 5G contracts.

    Currently, China is ahead of other countries in 5G deployments. According to data from the Ministry of Industry and Information Technology, China had deployed 820,000 5G base stations by the end of March.

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  • Comviva’s customer value management platform drives breakthrough growth for Indosat Ooredoo

    Comviva’s customer value management platform drives breakthrough growth for Indosat Ooredoo

    Fueled by an intensely competitive operating environment in Indonesia’s mobile sector, Indosat Ooredoo partnered with Comviva in delivering a front-to-end real-time marketing management platform, as well as subscribers’ loyalty and rewards program to yield increased customer retention and revenue within months from implementation.

    In a country where 98% of mobile phone users fall back on prepaid subscriptions, telecommunications operators in Indonesia’s competitive mobile market face the gargantuan challenge of retaining customers. In a heterogeneous market already characterized by low loyalty and high churn rates, matters are made worst when high costs deter telecommunications operators from reaching out to and acquiring new subscribers in under-served populations in far-flung areas.Indosat Ooredoo taps on Comviva’s expertise in innovation-driven growth marketing

    It is costlier to replace churned customers than retaining them. Amid intense competition and dismal financials, Indosat Ooredoo recognized that the path to profitable growth is an improved customer value management (CVM) platform that manages customer lifecycle holistically to uncover customer insights and drive meaningful engagements.

    Having collaborated on other deployments with much success, Indosat appointed Comviva, a global leader in mobile solutions for telecommunication operators, as a strategic partner to spearhead its Big Data CVM 2.0 program in April 2019.

    Aimed at improving customer lifetime value to achieve incremental revenue, Comviva developed a three year digital roadmap with front-to-end digital strategies. The suite of solutions spans different stages from implementing, operating, optimizing and providing timely, in-depth post-implementation analysis to transforming customer experiences critical to the success of the program.

    Overcoming key challenges with technology

    Before partnering with Comviva, Indosat Ooredoo was missing out on opportunities to influence customers’ micro-moments at critical junctures in the customer journey. To maximize the value of individual customers and micro-moments of interactions, Comviva’s first step was adding real-time capabilities to the operator’s CVM platform.

    A machine learning (ML), real-time interaction management platform, Comviva’s MobiLytixTM Real Time Marketing capitalizes on actionable analytics to steer CVM excellence. It integrates data across multiple sources to build intelligence and act on real-time events to orchestrate engagements with customers.

    Adding complexity to critical decision-making was the lack of federated data across Indosat Ooredoo’s various departments. To get to the root of this problem, Comviva developed a big data Hadoop-based centralized management system that effectively captures over 800 attributes about Indosat Ooredoo’s prepaid and post-paid subscribers to create a single view of its subscribers. This system brings focus to descriptive, predictive and prescriptive attributes of subscribers to serve as a unified customer data system accessible to the operator’s campaign management, business and applications teams.

    Comviva also identified the absence of a pervasive artificial intelligence (AI) technology to measure campaign effectiveness as another shortfall. To this end, Comviva developed models founded on AI and ML to accurately predict customers’ behaviors.

    Finally, Indosat introduced imPoin, a loyalty and rewards program to extend instant gratification to loyal customers and reward loyal customers preferentially. Powered by Comiva’s MobiLytixTM Loyalty and Rewards Platform, this program allows Indosat Ooredoo to predict customer engagement activities and positively influence customer behavior through reward-based engagements. To yield the best outcomes, a framework was developed to measure, monitor, and optimize the program.

    Comprising a 4-tier membership model – namely Red, Silver, Gold and Platinum, with Platinum being the highest tier – better benefits are rolled out for higher tiers. Members are motivated to earn benefits for all their engagements, which can be accumulated and redeemed via the myIM3 mobile app. Members can look forward to receiving a mix of lifestyle and experiential rewards such as fuel, shopping, dining as well as gaming vouchers.  

  • India’s software market revenue projected to reach US$7.6 billion by year end

    India’s software market revenue projected to reach US$7.6 billion by year end

    According to the International Data Corporation (IDC) Worldwide Semiannual Software Tracker 2H20 (July–December), the India software market is estimated to reach US$7.6 billion by the end of 2021. The India software market was pegged at US$7.0 billion in 2020, registering a growth of 13.4% year-over-year (YoY) compared with that in 2019. India accounted for 17.5% share of the overall Asia/Pacific (excluding Japan and China) (APEJC) region software market in 2020. Microsoft, Oracle, and SAP maintained their leadership positions in the India market during the same year. 

    Shweta Baidya, Senior Research Manager for Software and IT Services at IDC India says, “Although the pandemic had a minor impact on the overall growth of the India software market, it acted as a catalyst for strong growth across some of the software segments as enterprises reevaluated their IT strategies and took concrete steps to move toward digital business models. Digitally matured enterprises were able to smoothly navigate through the crisis and maintain business continuity and operational resilience. However, enterprises with traditional business models charted out new strategies to leverage cloud and digital to stay relevant and consistent. Investment in collaborative platforms, network transformation, and security re-architecture witnessed a spike during the last few quarters.”

    IDC classifies the software market into three primary categories: applications, application development and deployment (AD&D), and systems infrastructure (SI) software. Applications contributed 60.4% to the overall market revenue, followed by AD&D and SI software with shares of 21.6% and 18.0%, respectively, in 2020.

    As per IDC’s current estimates, engineering applications, collaborative applications, customer relationship management (CRM) applications, enterprise resource management (ERM) applications, and content workflow and management applications are the leading software segments in terms of revenue. The collaborative applications market witnessed the highest growth of 36.7% in 2020, followed by artificial intelligence (AI) platforms and system and service management software at 30.9% and 24.8%, respectively.

    India Market Forecast

    IDC estimates India’s overall software market to grow at a compound annual growth rate (CAGR) of 11.6% from 2020 to 2025. India enterprises will continue to invest in technologies that will help them spur innovation to improve operational efficiency and employee productivity, and in turn, maintain business momentum. IDC expects acceleration in demand for technologies, such as robotic process automation (RPA) software, conferencing and collaborative applications, AI platforms, digital commerce applications, and IT service management (ITSM) software, among others. Additionally, cloud is also becoming one of the critical elements of enterprises’ digital strategy. IDC expects the contribution of platform-as-a-service (PaaS) and software-as-a-service (SaaS) markets to the overall software market to increase from 36.8% in 2020 to 57.1% in 2025.

    “In spite of the adverse impact of the pandemic, India continued to be one of the most resilient markets across the APEJC region. India software market registered a growth of 13.4%, which was the highest in the region. Enterprise sentiments improved during the second half of the year and investments were ramped up quickly on digital work models to enable smooth transition to a remote work environment. IT budgets were re-apportioned and allocated in accordance with the increased spending on emerging technologies. Software vendors have been aggressively acquiring customers by supporting them in the digital journey with flexible and scalable options,” adds Baidya.

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  • ZTE reveals innovative 5G devices at MWC 2021

    ZTE reveals innovative 5G devices at MWC 2021

    ZTE Corporation, a major international provider of telecommunications, enterprise, and consumer technology solutions for the mobile internet, today has revealed its next-generation 5G Indoor CPE MC8020, and shared its plans for the next under-display camera smartphone at Mobile World Congress 2021. Also, ZTE’s much-awaited devices can be seen at Mobile World Congress from 28 June through 1 July 2021 at 3F30, Hall 3, FIRA GRAN VIA.

    ZTE is integrating its capabilities and expertise across handsets, mobile broadband, terminal chipset modules, and peripheral products to create a smarter 5G ecosystem. A variety of 5G products will be applied into four major application scenarios, specifically health, travel, education and entertainment.

    During Mobile World Congress, attendees can experience the connected 5G ecosystem through products on display, including the ZTE 5G Portable CPE MU5001, ZTE 5G Indoor CPE MC8020, ZTE Watch GT, ZTE LiveBuds and more.

    ZTE is globally recognized for industry-leading 5G terminal devices and technical innovations such as its flagship smartphone ZTE Axon Series.

    The newly launched ZTE Axon 30 Ultra ushers in the next era of mobile imaging technology with its Trinity Camera System, consisting of three 64MP cameras and an 8MP periscope zoom camera. Its high-powered system leverages the triple cameras to achieve new possibilities, such as capturing simultaneous shots for narrative-level storytelling, taking full-focus photos from long, medium, and close-up distance with one click.

    Soon, ZTE will unveil the second-generation under-display camera smartphone, marking another breakthrough in under-display technologies that aims to enhance the display experience.

    The third-generation ZTE 5G Indoor CPE MC8020 supports both 5G SA and NSA modes, as well as Sub-6GHz and mmWave spectrum bands. Featuring the exclusive zlink Boost technology, the device enables dual-path convergence of 5G and wired broadband, allowing dual gigabit access.

    Additionally, the ZTE 5G Indoor CPE MC8020 employs the latest Wi-Fi 6 AX5400 access technology, delivering 200 percent faster access speed than that of the previous generation. The four-way omnidirectional high-gain antenna provides a high-speed 5G network for up to 128 Wi-Fi users simultaneously.

    Since the official appointment of Ni Fei as the new CEO of ZTE Mobile Devices, ZTE has gathered customer and industry insights to address pain points and ride big industry trends, accelerating the rollouts of innovative and highly-recognized products.

    ZTE also integrated its three major smartphone brands, ZTE, Nubia and RedMagic. The integration brought the Nubia Z30 back to market with its heritage of innovation. Furthermore, in partnership with Tencent, ZTE has rolled out the new RedMagic 6, one of the most powerful gaming smartphones in the market.

    ZTE has been investing in its brand with an eye set on next generation and the use of 5G. Most recently, ZTE has collaborated with the Director Zhang Yimou to produce high-quality television spots and appointed the famed Liu Haocun as ZTE’s new brand ambassador.

    ZTE plans to strengthen its direct-to-consumer relationships through offline retail sites. The company is stepping up construction of offline channels with plans to build 5,000 retail sites by the end of 2021. ZTE has completed construction of 3,000 ones to date. Shoppers can visit ZTE’s first 5G experience store in Shenzhen this summer.

    In Q1 2021 , ZTE’s consumer business has achieved year-on-year revenue growth of more than 60% largely driven by the integration of brand, product, and channel – a reply to ZTE’s strategic return to the terminal market.

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  • Rakuten Mobile partners Cisco to advance network for 5G and IoT services

    Rakuten Mobile partners Cisco to advance network for 5G and IoT services

    Cisco and Rakuten Mobile, Inc. today announced a major milestone for Rakuten Mobile’s network infrastructure in support of efforts to build a better, more inclusive internet for the future.

    Rakuten Mobile operates the world first’s fully cloud-native mobile network. It launched 4G service in Japan in April 2020, and launched 5G non-standalone (NSA) services in September 2020 in record time. With four million subscribers today, Rakuten Mobile continues to advance and scale its network to support new demands driven by the growth of remote and mobile workers.

    With the implementation of Segment Routing over IPv6 (SRv6) and Cisco Routed Optical Networking, Rakuten Mobile plans to expand its capabilities to support enterprise customers with 5G and IoT services. To support its future 5G SA services with network slicing capabilities, Rakuten Mobile will introduce SRv6 micro-segments, an extension to the SRv6 network programming model that is key to addressing multi-domain 5G deployments across its network. Cisco Customer Experience (CX) will plan and implement the overall architecture and design.

    Transitioning to SRv6 will help Rakuten Mobile increase network resiliency and support a wider range of Service Level Agreements (SLAs) that are foundational for upcoming 5G and IoT services. With Cisco Routed Optical Networking, Rakuten Mobile can consolidate coherent pluggable optics into a router, making the entire network more automated to deploy services faster (from 100 days down to 40), reduce power consumption by nearly 30 percent, and increase profitability through high-quality services at a competitive price.

    “Reimagining mobile networking is at the very heart of Rakuten Mobile’s strategy, and our decision to go full-speed ahead on SRv6 and Cisco Routed Optical Networking demonstrates our effort to take advantage of technology innovation at every layer of the stack,” said Tareq Amin, Chief Technology Officer, Rakuten Mobile. “We knew that Cisco would walk in lock-step with us as we worked through each phase needed to implement this new technology and align it to our business goals.”

    “Cisco and Rakuten Mobile are on a path to profoundly change the way network infrastructure is built, in order to connect as many people as possible to quality internet services,” said Jonathan Davidson, Executive Vice President and General Manager, Mass-Scale Infrastructure Group, Cisco. “Rakuten Mobile continues to mark important milestones to take its network to the next-level, and together we are showcasing the blueprint for the internet for the future to support our world of wireless and cloud- powered experiences.”

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  • The role of telecoms in a growing big data analytics market

    The role of telecoms in a growing big data analytics market

    In today’s data-driven world, more organizations are investing in big data analytics to improve business performance and build business resiliency as the world experiences unprecedented digitalization.

    According to IDC, big data and analytics (BDA) spending in the Asia-Pacific region, has been on the rise. In 2020, revenue for BDA solutions reached US$22.6 billion, representing a growth of 12% from the preceding year. IDC predicts that this revenue will grow with a five-year CAGR of 15.6% for the period from 2019 to 2024.

    Banking is the top vertical leading the overall BDA market, followed by the telecommunications sector, where big data analytics has been applied to predictive customer churn analysis, for instance.

    Since telecom operators handle billions of records every day, the use of big data converts raw data into meaningful insights that are valuable to enterprises and the government.

    In the region, China accounts for the largest share of the BDA solutions market, driven by banking and state and local government. Even Chinese factories have turned to big data to focus on the domestic market when exports were disrupted last year. When overseas demand dropped and China was at the height of the pandemic, factories turned to e-commerce giants like Alibaba and JD.com to track consumer behaviors. Within just three months, Alibaba successfully helped 300,000 Chinese export factories to focus on local consumers.

    To secure tech supremacy, China is investing heavily in emerging innovations. Last month, China’s state media announced a US$3 billion plan to build a supercomputing center to analyze data obtained from space by the end of the year. The center will provide big data services for industries such as the aerospace and marine sectors as early as next year.

    Taking cues from the central government, companies are also investing in big data. Last month, tech giant Tencent and venture capital firm Sequoia China led a US$25 million funding round in a Chinese big data startup to capitalize on global digitalization efforts.

    In Malaysia, where big data analysis is still in its early stages, IDC has forecasted that the BDA market will grow from US$1.1 billion in 2021 to US$1.9 billion in 2025. In this research commissioned by Malaysia Digital Economy Corporation (MDEC), findings show that the services sector will dominate the BDA market, contributing 64% of total spending, followed by banking and telecommunications, with both contributing to a third.

    Malaysia has plans to become a regional data hub leader, with capabilities such as big data, IoT and AI. Last month, Microsoft announced that it is establishing its first data center in Malaysia’s Greater Kuala Lumpur area. Estimated to cost US$1 billion, this investment is expected to create 19,000 jobs and generate US$4.6 billion in revenue for Malaysia.

    New revenue sources across sectors
    Amid big data growth and advances in big data analytics, global telecom operators are well-positioned to take advantage to compete. Apart from transforming customer experiences within to reduce customer churn and improve operational efficiency, the telecommunications industry is in a unique position to mine the sheer volume of data for other sectors as data becomes a key differentiator to stand out among competition.

    Insights into big data present telecom operators monetization opportunities when offered to organizations across increasing industries that are recognizing its perks. Such industries include logistics and shipping, as well as the retail industry.

    In the logistics industry, for instance, historic data and pattern analysis that take into consideration seasons and cycles can be used for predictive analytics. Insights from data can be used to predict future volumes, route planning using real-time analytics on weather and traffic conditions for route optimization, and more efficient dispatch of transportation vehicles to prevent delays. Predictive analysis also enables robotic systems to scale inventory management in warehouses as needed. Essentially, big data analytics offers visibility and transparency throughout the supply chain so that firms can better respond to immediate real-time information for smoother operations.

    Big data also promotes client segmentation and target marketing to attract and retain existing clients in the retail sector. For example, telecom operators can run analytics on consumer data that are sought after by retailers to enhance existing targeted marketing campaigns. More specifically, behavior analytics carried out by telecom operators can help retailers connect with their buyers both online and offline and decide if it is worthwhile opening a store or franchise in a particular precinct.

    Given that the telecommunications industry is inextricably linked to organizations in today’s digital age, data-driven insights are an important driver for the continued relevance and prosperity of organizations across diverse sectors. The onus is on telecommunications operators to tap on this growth area.

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  • Inmarsat joins effort for telecommunications and navigation systems for lunar missions

    Inmarsat joins effort for telecommunications and navigation systems for lunar missions

    Inmarsat, the world leader in global, mobile satellite communications, will be a key member of a new consortium led by Telespazio to study the development of a satellite navigation and communications network that supports future missions to the Moon. Funded by the European Space Agency (ESA), this project will explore creating a single system that would serve all lunar missions, drastically reducing the cost of each trip that would no longer need its own infrastructure to be developed. The system would provide connectivity and navigation to both crewed and uncrewed missions.

    Project Moonlight is ESA’s program to explore, with industry, how to develop telecommunications and navigation systems to support future planned lunar missions. An industry consortium will study how a future Lunar Communications and Navigation Satellite (LCNS) constellation could work. This study will research demand from potential users and build a business case for future development of the system. The study will also provide a technical concept for the LCNS that fits within this overall business case.

    Within the consortium, Inmarsat will be responsible for researching and collating the requirements from potential users of the system, in both the public and private sectors, who have lunar ambitions. In addition, Inmarsat will design the LCNS ground segment.

    “Providing communication and navigation capabilities around the Moon is a major challenge, both technically and commercially,” said Yasrine Ibnyahya, Senior Director, Advanced Concepts and Technologies at Inmarsat. “But I strongly believe that the expertise and assets from Inmarsat and our partners can solve this challenge in the most efficient and cost-effective way. Communications and navigation are both core capabilities of Inmarsat’s Earth operations in orbit and on the ground, so it is only natural that we expand our reach and leverage our know-how beyond our planet to the Moon.

    “This lunar project is only the first step to unlock future opportunities. It can become the hub to facilitate human space exploration, further technology developments and perhaps access to new resources.”

    Because missions could rely on this dedicated telecommunications and navigation service, they would also be lighter. This would create space to allow more scientific instruments or other cargo to be carried.

    Science Minister Amanda Solloway said: “People all over the world will be hugely excited by the upcoming missions to the Moon – and I’m proud that it is UK space companies who are leading the way in making these become a reality. Britain’s expertise in navigation and telecommunications is second to none and this first of its kind commercial service – spearheaded by some of the UK’s most innovative businesses – demonstrates our ambition for the UK to become a world- leading space nation.”

    An accurate and reliable telecommunications and navigation service would also enable missions to land anywhere on the Moon. Rovers and other lunar installations could be operated from Earth. Radio astronomers could set up observatories on the far side of the Moon.

    Nick Shave, Vice President of Strategic Programmes for Inmarsat Global Government, said: “Project Moonlight opens up multiple possibilities to accelerate and diversify lunar exploration. It’s not inconceivable that, alongside vital operational uses, this satellite network could also provide a critical welfare service, such as allowing astronauts to relax by sending WhatsApp messages home from the Moon or even catching up on Netflix in orbit. The Inmarsat team is very excited to get to work engaging with potential users of the system, to use their insights and our expertise to deliver a strong recommendation to ESA so that this once in a lifetime opportunity can be delivered for all humankind.”

    ESA has awarded funding to the consortium to cover the next stage of project development over 17 months and industry has also contributed to the project.

    Large mission integrator Telespazio is the prime for this project with TAS the nominated satellite manufacturer.

    Inmarsat participated in the initial phase 0 of this project in 2018 and 2019, performing a preliminary feasibility analysis of a Lunar Communication and Navigation System with ESA and partners. The company is now involved in the deeper analysis as part of the Moonlight initiative.

    Upon completion of this 17 month study phase, ESA will then review the study to inform how to implement the next stage, including satellite and ground segment procurement, in late 2022.

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  • The role of telecoms in a growing big data analytics market

    The role of telecoms in a growing big data analytics market

    In today’s data-driven world, more organizations are investing in big data analytics to improve business performance and build business resiliency as the world experiences unprecedented digitalization.

    According to IDC, big data and analytics (BDA) spending in the Asia-Pacific region, has been on the rise. In 2020, revenue for BDA solutions reached US$22.6 billion, representing a growth of 12% from the preceding year. IDC predicts that this revenue will grow with a five-year CAGR of 15.6% for the period from 2019 to 2024.

    Banking is the top vertical leading the overall BDA market, followed by the telecommunications sector, where big data analytics has been applied to predictive customer churn analysis, for instance.

    Since telecom operators handle billions of records every day, the use of big data converts raw data into meaningful insights that are valuable to enterprises and the government.

    In the region, China accounts for the largest share of the BDA solutions market, driven by banking and state and local government. Even Chinese factories have turned to big data to focus on the domestic market when exports were disrupted last year. When overseas demand dropped and China was at the height of the pandemic, factories turned to e-commerce giants like Alibaba and JD.com to track consumer behaviors. Within just three months, Alibaba successfully helped 300,000 Chinese export factories to focus on local consumers.

    To secure tech supremacy, China is investing heavily in emerging innovations. Last month, China’s state media announced a US$3 billion plan to build a supercomputing center to analyze data obtained from space by the end of the year. The center will provide big data services for industries such as the aerospace and marine sectors as early as next year.

    Taking cues from the central government, companies are also investing in big data. Last month, tech giant Tencent and venture capital firm Sequoia China led a US$25 million funding round in a Chinese big data startup to capitalize on global digitalization efforts.

    In Malaysia, where big data analysis is still in its early stages, IDC has forecasted that the BDA market will grow from US$1.1 billion in 2021 to US$1.9 billion in 2025. In this research commissioned by Malaysia Digital Economy Corporation (MDEC), findings show that the services sector will dominate the BDA market, contributing 64% of total spending, followed by banking and telecommunications, with both contributing to a third.

    Malaysia has plans to become a regional data hub leader, with capabilities such as big data, IoT and AI. Last month, Microsoft announced that it is establishing its first data center in Malaysia’s Greater Kuala Lumpur area. Estimated to cost US$1 billion, this investment is expected to create 19,000 jobs and generate US$4.6 billion in revenue for Malaysia.

    New revenue sources across sectors
    Amid big data growth and advances in big data analytics, global telecom operators are well-positioned to take advantage to compete. Apart from transforming customer experiences within to reduce customer churn and improve operational efficiency, the telecommunications industry is in a unique position to mine the sheer volume of data for other sectors as data becomes a key differentiator to stand out among the competition.

    Insights into big data present telecom operators’ monetization opportunities when offered to organizations across increasing industries that are recognizing its perks. Such industries include logistics and shipping, as well as the retail industry.

    In the logistics industry, for instance, historic data and pattern analysis that take into consideration seasons and cycles can be used for predictive analytics. Insights from data can be used to predict future volumes, route planning using real-time analytics on weather and traffic conditions for route optimization, and more efficient dispatch of transportation vehicles to prevent delays. Predictive analysis also enables robotic systems to scale inventory management in warehouses as needed. Essentially, big data analytics offers visibility and transparency throughout the supply chain so that firms can better respond to immediate real-time information for smoother operations.

    Big data also promotes client segmentation and target marketing to attract and retain existing clients in the retail sector. For example, telecom operators can run analytics on consumer data that are sought after by retailers to enhance existing targeted marketing campaigns. More specifically, behavior analytics carried out by telecom operators can help retailers connect with their buyers both online and offline and decide if it is worthwhile opening a store or franchise in a particular precinct.

    Given that the telecommunications industry is inextricably linked to organizations in today’s digital age, data-driven insights are an important driver for the continued relevance and prosperity of organizations across diverse sectors. The onus is on telecommunications operators to tap on this growth area.

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  • Growth plateaued for global telecommunications market in 2020

    Growth plateaued for global telecommunications market in 2020

    Worldwide Telecommunications Services and Pay TV Services revenues totaled $1.53 trillion in 2020, representing flat year-over-year growth, according to the International Data Corporation (IDC) Worldwide Semiannual Telecom Services Tracker.

    Services revenue for the Asia-Pacific region totaled at $482 billion in 2020, equalling the amount in 2019. IDC expects worldwide spending to increase by 0.7% in 2021 reaching a total of $1.54 trillion.

    The COVID-19 pandemic was unquestionably the most important factor influencing the telco market in 2020. In the first six months of the year, the pandemic brought a notable decline to the market in the form of decreased subscriber numbers and lower services spending. This was caused by the strict lockdowns imposed by governments as well as the widespread pessimism and anxiety that forced people to cut spending on nonessential products and services. In the second half of the year, the demand recovered, fueled by economic stimulus measures and the progress in vaccine development. The renewed optimism helped the global and regional markets to cover the losses recorded in the first half of the year and come close to equaling the prior year’s results.

    Although the revenue outcome in 2020 was neutral, the pandemic drastically changed the trends that have shaped the global telco market for a long time. Consumer fixed data services have suddenly become the most important type of connectivity, enabling home-bound people to work and entertain. Business fixed data services have temporarily lost momentum due to the migration of traffic to the consumer segment, but most of these connections were preserved as they were protected by long-term contracts. Fixed voice services saw a slight increase in dropout rates because some companies within the small business segments went bankrupt and more residential clients gave up their connections for cost-cutting purposes. Mobile services spending also declined slightly due to slower renewal of contract agreements, reduction of out-of-bundle spending, and a sharp decrease in roaming revenues due to travel restrictions. In the Pay TV segment, the migration from traditional Pay TV to Over the Top (OTT) services accelerated during the COVID-19 crisis, driven by increased consumption of video content and new OTT service launches.

    IDC believes that connectivity will become an even more critical asset for households and businesses after the pandemic, as some of the habits adopted during the crisis (remote working, collaboration, online media consumption) are expected to become part of everyday life. The migration toward FttP access is expected to accelerate in most of the country markets, while the business fixed data market will recover in the longer term as the economic recovery drives increased investments in the cloudification of enterprise business activities. Revenue growth in the mobile services space will be buoyed to a degree by 5G adoption, which will invite users to deploy more advanced data capabilities and uptake the content and services dependent on high-speed data connectivity.

    The global telco market was put to a serious test in 2020 and it successfully passed. IDC believes that the lessons learned last year will help the industry to secure stable growth in the coming period. “The COVID-19 pandemic demonstrates the resilience and value of the telecoms industry,” said Chris Barnard, vice president, European Infrastructure and Telecoms. “New ways of working will persist beyond the pandemic, shaping future revenue opportunities, while the network-centricity of consumers will drive bandwidth requirements in that segment as well.”

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