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A new report from Portico Research reveals that over half of the population of the entire world will have a mobile phone by 2008. The study predicts that the global mobile penetration rate will pass the 50 per cent mark next year, with a further 1.5 billion new mobile phone subscribers expected to join their ranks over the next four years.   Portico Research says global mobile penetration rate will be at 75 per cent by 2011.  It is now believed that some 65 per cent of these “new-to-the-world” users will come from the Asia Pacific region, rather than from Africa as has previously been though most likely, with the majority being from rural regions in countries such as India and Pakistan.
The United States is starting to look like a slowpoke on the Internet. What’s less clear is how badly the country that gave birth to the Internet is doing, and whether the government needs to step in and do something about it. To get a clearer picture of where the US stands, the House Energy and Commerce Committee approved legislation that would develop an annual inventory of existing broadband services — including the types, advertised speeds and actual number of subscribers — available to households and businesses nationwide. The bill, introduced by Rep. Ed Markey, D-Mass.
Does Sri Lanka have a comparative advantage in tuition? Hello, India? I Need Help With My Math – New York Times A leading candidate to watch, according to analysts, is TutorVista, a tutoring service founded two years ago by Krishnan Ganesh, a 45-year-old Indian entrepreneur and a pioneer of offshore call centers. Concerns about the quality of K-12 education in America and the increased emphasis on standardized tests is driving the tutoring business in general. Traditional classroom tutoring services like Kaplan and Sylvan are doing well and offer online features.
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.

Friedman on rural outsourcing

Posted on October 31, 2007  /  9 Comments

If I.T. Merged With E.T. – New York Times To appreciate that potential, look at how much is being done with just car batteries, backup diesel generators and India’s creaky rural electricity grid.
The Lakbima newspaper (30 October 2007) reports that Central Environmental Authority Chairman and Jatika Hela Urumaya politician Udaya Gammanpila is advocating a “green tax” on mobile phones, tyres, electronic equipment and asbestos. It appears that the JHU has a vendetta against the 6 million plus mobile users in Sri Lanka. They originated the idea of taxing mobiles to pay for government expenses (an amended law to this effect was enacted in September 2007); and now they want to impose another tax, this time in the name of the environment. Why not on fixed phones? On computers?
In internal discussions, I had expressed skepticism about Facebook/Linked In type services for anything other than social interactions.  But it looks like I am being slowly proven wrong! In India, Poverty Inspires Technology Workers to Altruism – New York Times Manohar Lakshmipathi does not own a computer. In fact, in India workmen like Mr. Manohar, a house painter, are usually forbidden to touch clients’ computers.
 LIRNEasia Research Fellow and Associate Professor of Law at Lahore University of Management Sciences (LUMS) , Joseph Wilson, Ph.D., has been nominated to be a member of the Competition Commission of Pakistan (CCP). For more information, see news item in Daily Times, Pakistan
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.

The Chinese are coming

Posted on October 27, 2007  /  1 Comments

The stunning impact of the Chinese telecom equipment manufacturers observed in South Asia in as early as 2005 is now being observed in the balance sheets of the old established equipment suppliers.   Telecoms-equipment makers | Toughing it out | Economist.com First, the market for wireless networks is beginning to mature. After years of bumper profits, telecoms operators are facing more competition and are having to cut costs. In America carriers have delayed purchases, which explains much of what went wrong for Alcatel-Lucent.
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.
India’s finance minister Palaniappan Chidambaram said Monday in Washington, “Regulation must stay one step ahead of innovation”.  He said the developed countries’ financial authorities are not keeping up with the new and complex financial market instruments that lay behind recent credit market turmoil.  “Thanks to the present crisis which originated in the advanced economies … I think developed economies will listen more to the developing economies’ point of view,” Chidambaram remarked.  “In the name of innovation, regulators or governments in the advanced economies have fallen behind the curve.” The time has come for the developed world to attend to its own problems, and stop lecturing emerging economies about what is right and what is wrong, he said.
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.
Bangladesh Telecommunication Regulatory Commission (BTRC) will auction licenses to operate two interconnection exchanges (ICX) and three International Gateway (IGW) facilities on November 22. Outbound PSTN and mobile calls will first terminate in the ICX. Then the calls will be processed in the IGW followed by getting routed to overseas via BTTB’s submarine cable station. Similar path will be followed for the inbound overseas calls. Foreign investments and joint ventures are strictly prohibited.