China Telecom, China’s largest fixed-line phone provider, has announced plans to buy regional phone operator Beijing Telecom for $793m. The government-controlled former monopoly, which still owns about 70 per cent of China’s fixed telephone lines, has struggled to cope with a rapidly evolving market and competition from mobile phone operators. “Due to intensifying mobile substitution, China Telecom experienced negative growth in access lines in service for the first time [in 2007], and voice business revenue decreased by 7.9 per cent from 2006,” the company said in a statement. Charice Wang, an analyst at research firm Ovum, explained that China Telecom has been facing strong competition from China Mobile as customers switch to mobile services under increasing fixed-mobile substitution.
Indo-Asian News Service (IANS) Indian telecom giant Bharti Airtel, which had announced its entry into the Sri Lankan mobile phone sector with much fanfare last year, is experiencing delays and may well be re-drawing its investment plans for the island country, says a Sri Lankan telecommunication expert. Rohan Samarajeewa, former head of Sri Lanka’s Telecommunication Regulatory Commission (TRC), told IANS that while there was no doubt that Bharti Airtel was committed to operating in Sri Lanka, it had altered its timetable and could well be scaling down its original investment plans. The reasons for the delay in starting the operations were in the realm of speculation, Samarajeewa said. But he did point to a possibility of difficulties in getting frequencies from the TRC, as it is generally recognized that the allotment of frequencies tends to be “highly politicised” in Sri Lanka. The parent company in India could also be changing its priorities as regards capital allocations, in the context of the growing challenges in the more lucrative Indian domestic market, Samarajeewa said.
Broadband Access Data Mischief — SSRC There is clear consensus that our nation’s ability to compete in the high speed broadband world is essential to our economic future. Unfortunately, the Administration and the Federal Communications Commission continue to rely upon inadequate, highly-flawed data to assess the marketplace for high-speed Internet access. The Administration’s “mission Accomplished” rhetoric does not match reality: * According to a September 2007 Pew Internet & American Life Project phone survey, roughly half of all Americans don’t have broadband at home. Half is far from universal. * Fewer than 25% of New Yorkers in rural areas have access to broadband service and nearly two-thirds of people living in New York City lack access to affordable, high-speed broadband.
It is well known that China polices the Internet content that its citizens can access. The story below talks about a growing movement within China that seeks to challenge these arbitrary restrictions on simple information retrieval and publishing actions. A 17-year old girl’s comment “I don’t know if it’s better to speak out or keep silent, but if everyone keeps silent, the truth will be buried,” seems particularly powerful to me and motivated me to write this post. Several months ago, the government of Sri Lanka blocked access to Tamil Net, a website used by many, including almost all the important journalists, to find out the other side of our one-sided news stories on the war. Of course, this was easily circumvented by those who wanted to.
This past Saturday at a conference organized by the Sri Lanka Institute of Marketing Harsha de Silva chaired a session with Hans Wijayasuriya of Dialog Telekom, Rohan Samarajiva of LIRNEasia and Keith Modder of Virtusa that addressed issues such as this. One point that ran through the discussion was the need for companies to develop self-regulation to safeguard the trust of their customers. China’s mobile network: a big brother surveillance tool? – LANKA BUSINESS ONLINE “We know who you are, but also where you are,” said the CEO of China Mobile Communications Corporation, Wang Jianzhou, whose company adds six million new customers to its network each month and is already the biggest mobile group in the world by users. He was explaining how the company could use the personal data of its customers to sell advertising and services to them based on knowledge of where they were and what they were doing.
China on Tuesday started a public hearing to discuss lowering domestic mobile roaming charges, state media said, to address complaints from users. Hosted by the National Development and Reform Commission, China’s top economic planner, the hearing discussed two proposed plans for roaming charges, the official Xinhua News Agency reported. Both proposals involve cancelling the existing roaming service fee of 0.2 yuan per minute, which users have criticized as being too high, according to local media reports. China’s mobile operators, China Mobile and China Unicom collect domestic roaming fees if the subscriber leaves the local service area.
A United Nations survey of global e-government readiness has found that many Asian countries are sliding down the rankings. Just one Asian country—South Korea—made the top ten coming in at sixth, with Japan next on 11th. The next highest was Singapore at a surprisingly low 23rd, and Malaysia at 34th. The top 35 countries are otherwise dominated by Europe, Australasia and North America. The biggest revelation was that most Asian countries are sliding down the rankings.
LANKA BUSINESS ONLINE – LBO Although seen as India’s greatest challenger in terms of its potential scale, China fared poorly for language skills, Gartner said. China, India and Singapore all had strong government support for the promotion of their country as an offshore services location. The political and economic environment remains a concern for many companies when moving work to offshore locations and so Pakistan, the Philippines, Sri Lanka and Vietnam rated poorly, Gartner said. Powered by ScribeFire.
India’s Bharti Airtel, China Mobile and PT Telekomunikasi Indonesia are UBS’s top three telecom investment picks in Asia for 2008, as their home markets enjoy strong growth rates. “Growth features such as rising consumption, elasticity of demand and economies of scale will continue to be the main themes for the growth markets, including China, India and Indonesia, which are still under-appreciated by investors, in our view,” UBS said in a report. India and China, the world’s fastest-growing mobile markets, added around 8 million mobile phone subscribers in October, taking their user base to approximately 217 million and 531 million, respectively. Read the full story in Forbes.com
China Mobile Ltd., the world’s biggest wireless-phone carrier by number of users, added record subscribers in October as China Telecom Corp., the nation’s largest fixed- line carrier, lost customers for the third straight month. About 6.6 million people signed up for China Mobile’s services last month, compared with its previous high of 6.
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.
Can dinosaurs dance? Oct 11th 2007 | From The Economist print edition Responding to the Asian challenge ARE consumers in India and China too poor to afford high-quality Western goods? That used to be the old idea of doing business in these countries as firms offered watered-down versions of their products at reduced prices. Mr van Houten, of chipmaker NXP, says Indian and Chinese consumers are forcing multinationals to design sophisticated products that more closely meet their needs, and this is making firms operating in Asia better innovators. By recruiting ingenious local engineers and designers in places like Bangalore and Beijing, and paying close attention to trends and practices in the market, firms are coming up with products and services that can be sold in other parts of the world too.
The military rulers of Burma are planning to open a cyber city, based on Malaysia’s Multimedia Super Corridor, in January 2008. The following report states that the announced starting tenants are made up. TelecomTV – TelecomTV One – News Now, it just so happens that I was tracking a story on the junta’s plans for its very own cyber city just before the protests began. There have been quite a few reports across Asia recently that the Burmese “government” is building its 10,000-acre (4,050 hectare) “Yadanabon cyber city” project about 70 kilometres east of Mandalay, Burma’s second largest city.
BANGALORE, India (AFP) — India remains the favoured technology outsourcing destination, an industry report said Sunday, amid concerns a rising rupee and soaring wages would blunt the country’s competitive edge. A study by industry publication Global Services and investment advisory firm Tholons put the Indian cities of Chennai, Hyderabad and Pune at the top of a list of 15 emerging outsourcing destinations for global companies. Kolkata at number five and Chandigarh at number nine were the other two Indian locations on the list, which contained three Chinese and two Vietnamese cities as well.
Business Process Outsourcing (BPO) at the Bottom of Pyramid (BOP) level is still not too common. Prof. Ashok Jhunjhunwala accompanied by a LIRNEasia team made a visit to Mahawilachchiya to have a close look at the first (still emerging) rural BPO there recently. On the same day, The Economic Times of India quoted Prof. Jhunjhunwala saying: ““Like manufacturing grew in China, services and manufacturing should grow in rural India.
World now has 4b phone lines, says UN | Sep 05, 2007 | telecomasia.net (Associated Press via NewsEdge) Largely because of the mobile phone boom in developing countries, telephone service has quadrupled in the past decade to 4 billion lines worldwide, according to a report from the UN telecommunications agency.