Chanuka Wattegama, Author at LIRNEasia — Page 21 of 23


In yet another blow to the existing GSM operators, the Communication Ministry has decided to auction spectrum for third generation (3G) mobile services and wireless broadband services through technologies such as Wi-Max. The auction will be open to new companies wanting to foray into the telecom sector as well as established foreign telecom players. The existing operators had wanted the auction for 3G services to be limited to the licence holders. The Ministry’s decision to open up the bidding to all players is also a move away from the telecom regulator’s recommendations that it be restricted to existing operators. The move gives a chance to the likes of Deutsche Telecom, AT&T and new Indian players such as Unitech and Hindujas, which may not get spectrum in the 2G band given the huge rush, to enter the high growth telecoms market.
The first phase in a trial of an evolved version of today’s mobile phone radio access technology designed to deliver much higher wireless data rates has proven a success. The LTE / SAE (Long Term Evolution/System Architecture Evolution) Trial Initiative (LSTI) launched in May this year has reported the successful delivery of the first in a series of test results aimed at proving the potential and benefits of LTE, which is being standardized by the Third Generation Partnership Project (3GPP) as a next generation mobile broadband technology. The Initiative was founded by leading telecommunications companies Alcatel-Lucent, Ericsson, France Telecom/Orange, Nokia, Nokia Siemens Networks, Nortel, T-Mobile and Vodafone, and was recently expanded with China Mobile, Huawei, LG Electronics, NTT DoCoMo, Samsung, Signalion, Telecom Italia and ZTE joining as new members. As mobile devices become increasingly sophisticated and handle more and more complex multimedia applications, the LTE/SAE technology is designed to give end users wireless access to growing levels of data throughput on the move.3GPP LTE is specified to enable downlink/uplink peak data rates above 100/50 Mbps in initial deployment configurations.
The simmering tension over spectrum allocation among Indian telecom companies has erupted into a public spat with warring mobile phone operators leaving no stone unturned in their battle to acquire more air waves. The fight is so intense that Vodafone chief executive Arun Sarin too jumped in, dashing off letters to Prime Minister Manmohan Singh and communications minister A Raja, complaining against the stiffer spectrum allocation norms proposed by the Telecommunication Engineering Centre, an arm of the department of telecommunications. Reliance Communications chief Anil Ambani, whose company uses CDMA technology, too wrote to the Prime Minister. He accused some “large GSM players”, a reference to Vodafone and Sunil Mittal’s Bharti Telecom, of spreading “misleading and false propaganda” to block fresh competition in telecom, hoard spectrum and indulge in “anti-consumer practices like cartelisation”. Read the full story in ‘The Times of India’ Other related stories: Anil Ambani takes telecom rivals to PM – Hindustan Times Telcos sweat under spectrum deadlock – Business Standard Telecom tussle engulfs all major players, Ambani writes to PM – The Indian Express quoating PTI

Broadband at the Bottom of Pyramid

Posted on November 7, 2007  /  0 Comments

Not everyone is convinced that Indian telecom market is developing fast. “In Beijing I see everybody having a mobile in hand, male or female, old or young and rich or poor..”. says one Chinese participant at WWRF, “…I do not see Indians using mobiles like that” (He is surprised to learn in South Asia not every user owns a mobile phone!
At Wireless World Research Forum meeting currently held in Chennai, there were two presentations on Mesh Networking. While Chanuka Wattegama of LIRNEasia spoke about the Sri Lankan experience, Sharad Jaiswal of Bell Labs, India presented a similar initiative in Bangalore. There were many similarities between the two on the approach. VillageNet, the Bangalore initiative, is a low cost IEEE 802.11 WiFi based mesh network designed for connecting villages in rural India, providing low-cost broadband Internet access for wide regions.

Future without wires

Posted on November 6, 2007  /  2 Comments

Chennai, Nov 6. Perhaps not surprisingly, the messages from most of the speakers are the same at the Wireless World Research Forum, currently held here. Asian telecom markets are booming; (Where else you see one country adding 7 million new mobile customers per month?) this is the right time to take ICTs to rural and less privileges sections of the society; affordability too, not just technology is a key issue, and wireless, not wired  is perhaps the sure solution that can make the transformation. More or less, that is the bottom-line emerging.
Royal Bank of Canada and Visa Canada announced Thursday (Nov 1) they are testing technology that would allow people to use their cellphones as electronic wallets. The bank and credit card company said they are launching an Ontario-based pilot project, to be conducted in three stages in 2008, that would allow consumers to simply swipe their phone in front of a scanner to make simple purchases. The pilot program will begin with laboratory testing followed by two trials, one for RBC employees in early 2008 and another, larger trial later in the year with consumers. Read the full story in ‘CBC News’
Reliance Communications took the competition in domestic telecom head-on as it reported operating margins similar to bigger rival Bharti Airtel in the July-September quarter. RCom’s robust performance was aided by higher growth in its wireless and broadband services along with increased operating efficiency. Net profit has surged 86% to Rs 1,305 crore (USD 330 mil) year-on-year backed by 30% rise in sales to Rs 4,579 crore (USD 1,166 mil). Operating profit has grown 46% while revenue from wireless business grew 45% and the broadband segment 61%.  Read the full story in ‘The Economic Times’ Meanwhile India’s largest wireless operator Bharti Airtel on Wednesday announced a 73% increase in second quarter net profit at Rs 1,617 crore (USD 412 mil) , compared to Rs 934 crore (USD 238 mil) for the quarter ended September 2006.
India’s mobile phone market has become the fastest growing in the world, with Indians adding nearly six million new connections every month. As Anjana Pasricha of VoA reports from New Delhi, much of the growth is among low-income consumers. Telecom companies are going all out to woo such customers, offering them deals that make cell phones affordable for even those who earn as little as $125 a month. Handsets are available for $45. Users can buy new pre-paid phone cards for less than 50 cents.
New Delhi, (PTI): Cellular operators in the country have asked the Government to go slow on devising regulations on Mobile TV, saying that the technology is “nascent” and the customer behaviour still uncertain. “This is a nascent business and therefore, no decision should be taken which will restrict the development of the market or foreclose technological options,” the Cellular Operators Association of India (COAI) has told the telecom and broadcast regulator TRAI. The Telecom Regulatory Authority of India (TRAI) had last month issued a consultation paper for the stakeholders on issues relating to mobile television. “Various technology solutions are being tested in the global marketplace. It is also important to recognise that customer behaviour and demands are also evolving,” the operators said.
Foreign telecom investors, who hold significant stake in India telecom companies, are exploring the possibility of joining hands and initiating an arbitration proceeding against the government of India and department of telecom (DoT) in foreign courts against the new telecom policy. The move comes as some of the foreign investors say the that the new policy announced last week, which allows dual technology “favoured only CDMA players, especially, Reliance Communications”. Besides, the new policy has also enhanced subscriber-linked criterion for spectrum allocation by multiple times – this implies, operators such as Bharti Airtel, Vodafone, Idea Cellular cannot get additional spectrum in their existing circles unless they increase their subscriber base between two-six times, a process that will take anywhere between 18-48 months. This has also led to the pending applications of all GSM players being disqualified. The new norms, if implemented, will hit the expansion plans of all telcos and also lead to a heavy increase in the capex for the next couple of years.
The Bangladesh Telegraph and Telephone Board (BTTB) Thursday announced cut in call tariffs, line rent, and transfer fees for the board’s land phones effective from November 1, said a telephone board release on Thursday. The nationwide dialling charge has been halved to Tk 1.5 a minute on 30-second pulses; peak and off-peak hour billing has been withdrawn. The new system has also withdrawn the distance factor for call charges. Calls between upazilas of a district will now be treated as local calls.
Rural BPO at Mahavilachchiya received wide publicity yesterday, with several local newspapers prominently highlighting the to-be-success story like Sunday Times did below in a first page half page article, and a finance editorial. BPO in the Anuradhapura backwoods IT rumble in the jungle What puzzles us is why some of these articles (Not the Sunday Times story) referred to the venture as a ‘corporate responsibility’ (an euphemism for ‘charity’) of John Keels Holdings (JKH), a top business conglomerate in Sri Lanka. When Indian Tobacco Company (ITC) launched e-Choupal chain in India, nobody branded it ‘corporate responsibility’. It was an online window for its rural suppliers of first tobacco and later other agricultural/aquaculture produce like soya, coffee, and prawns, to interact directly with the company. It was part of ITC business and definitely not charity.
Mobile phones are about to become the simplest and quickest way to transfer money across borders, under a deal announced yesterday by Western Union and GSM Association, the main mobile phone operators’ body. The agreement could have a big impact on global cross-border remittances, worth an estimated $500bn a year, and provide a springboard for mobile carriers and Western Union to offer other mobile banking services using “mobile wallet” technology. Cross-border money transfers valued at up to $100 in countries such as India, the Philippines, Mexico and China – which have large volumes of remittances from migrant workers – will be an early priority of the deal. Thirty-five mobile operators with 800m customers in more than 100 countries have signed up to take part in the GSMA Mobile Money Transfer pilot scheme led by Sunil Mittal, managing director of Bharti Airtel. Other participants include MTN, Orange, Orascom, Smart, Telenor and VimpelCom.
The 2007 Nobel Prize in Economics was awarded to Leonid Hurwicz, Eric Maskin, and Roger Myerson “for having laid the foundations of mechanism design theory”. But what on earth is “mechanism design theory”? Adam Smith’s classical metaphor of the invisible hand refers to how the market, under ideal conditions, ensures an efficient allocation of scarce resources. But in practice conditions are usually not ideal; for example, competition is not completely free, consumers are not perfectly informed and privately desirable production and consumption may generate social costs and benefits. Furthermore, many transactions do not take place in open markets but within firms, in bargaining between individuals or interest groups and under a host of other institutional arrangements.
THE distribution of computing skills across Europe shows a clear pattern according to a recent report from the European Union. The inhabitants of southern and eastern Europe are the least adept at using computers and the internet. Computer whizzes are more likely to be found in a wedge running from Germany up to the Nordic countries. Bulgarians seem a little baffled by the online revolution. But IT skills correlate closely with long-standing access to computers, broadband penetration and the like.