According to The Edge Daily, Malaysian cellco DiGi Telecommunications will set aside up to MYR150 million (USD42.4 million) of its total capital expenditure over the next three years for investment in its HSPA network and services in the Sabah and Penang regions. The plans were unveiled following the official launch of the operator’s 3G broadband services in the two regions. DiGi noted that at launch it had coverage of 44% and 31% of the population in the Kota Kinabalu region and the island of Penang respectively.
However, the cellco currently only offers HSPA-based internet services via a datacard option, with Johan Dennelind, CEO of DiGi, noting: ‘While our broadband service is only available on PC and laptops for now, we look forward to start offering 3G voice and data services on mobile phones as soon as we have expanded our 3G coverage in our bid to capture our fair share of the broadband market in Malaysia’.
According to TeleGeography’s GlobalComms database, DiGi has forecast CAPEX for 2009 to exceed MYR1.1 billion and had earmarked around 30% of that for 3G infrastructure development. Mr Dennelind indicated that the expansion to Sabah and Penang comes following the high level of demand in the Klang Valley, where the operator launched UMTS services two month ago. DiGi aims to offer its mobile broadband services in more than 1,000 zones by the end of 2009, and the cellco will initially focus on deployment in urban areas.
Monday, May 18, 2009
Verizon Wireless sharpens LTE roadmap
Verizon Wireless this week provided further details on timescale for deployment of its LTE network. In a conference call Wednesday, chief executive Lowell McAdam said the network will launch commercially in 20-30 markets in the second half of 2010, with nationwide buildout complete in late 2013 to early 2014. Meanwhile, PC Mag reports that a small group of Verizon testers will get access to LTE this year, with the operator turning on one "pre-commercial" network on the east coast and one on the west coast during 2009.
Verizon also said it expects average speeds on the network to be between 8Mb/s and 12Mb/s downstream, faster than Sprint's WiMAX network but much lower than the 'theoretical peak' speeds previously touted for the network. Earlier this week Verizon Wireless said it will use Gemalto's over-the-air platform and microprocessor smart card to manage customer information exchanges on the LTE network, and also selected Giesecke & Devrient to provide Java-based SIM cards for devices. Verizon could become the first commercial LTE operator in the world. US rivals AT&T and MetroPCS are planning to launch LTE networks, in 2011 and 2010, respectively.
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Verizon also said it expects average speeds on the network to be between 8Mb/s and 12Mb/s downstream, faster than Sprint's WiMAX network but much lower than the 'theoretical peak' speeds previously touted for the network. Earlier this week Verizon Wireless said it will use Gemalto's over-the-air platform and microprocessor smart card to manage customer information exchanges on the LTE network, and also selected Giesecke & Devrient to provide Java-based SIM cards for devices. Verizon could become the first commercial LTE operator in the world. US rivals AT&T and MetroPCS are planning to launch LTE networks, in 2011 and 2010, respectively.
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Friday, May 15, 2009
UK plans deal on mobile broadband spectrum
The UK has unveiled plans to potentially settle a long-running dispute between its mobile operators regarding the re-farming of 900MHz 2G spectrum for mobile broadband use. Reuters reports today that the UK's Independent Spectrum Broker has proposed that operators be given a spectrum cap, meaning that they could hold onto the spectrum they own but would need to sell it before buying any more. The development is effectively a compromise that would allow the UK government to pursue its 'Digital Britain' broadband initiative without forcing some operators to hand over spectrum to competitors. The dispute stretches back to a proposal by UK regulator Ofcom in 2007 that ordered O2 UK and Vodafone UK to transfer some of their 900MHz spectrum to rivals, a plan reportedly strongly opposed by the two operators. Ofcom proposed at the time that the 900MHz spectrum could be auctioned off to their competitors, Orange UK, T-Mobile UK and 3 UK, for mobile broadband use.
The dispute escalated following the introduction of the 'Digital Britain' initiative earlier this year, which is aiming for every UK household to have access to broadband by 2012 and proposes the use of mobile broadband to connect rural areas. The 900MHz spectrum is deemed more suitable for mobile broadband than 1800MHz spectrum - the other frequency band used for 2G services - as the lower frequencies travel further and need fewer base stations and masts. However, while this week's development means that O2 UK and Vodafone UK could hold onto their existing 900MHz spectrum, they would need to sell some in order to buy new spectrum freed-up by the switchover from analogue to digital TV. According to Reuters, the UK plans to auction new spectrum - in the 800MHz and 2.6GHz frequency bands - next year.
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The dispute escalated following the introduction of the 'Digital Britain' initiative earlier this year, which is aiming for every UK household to have access to broadband by 2012 and proposes the use of mobile broadband to connect rural areas. The 900MHz spectrum is deemed more suitable for mobile broadband than 1800MHz spectrum - the other frequency band used for 2G services - as the lower frequencies travel further and need fewer base stations and masts. However, while this week's development means that O2 UK and Vodafone UK could hold onto their existing 900MHz spectrum, they would need to sell some in order to buy new spectrum freed-up by the switchover from analogue to digital TV. According to Reuters, the UK plans to auction new spectrum - in the 800MHz and 2.6GHz frequency bands - next year.
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New Zealand to get third mobile network in August
New Zealand's mobile market is to gain a long-awaited third operator with the launch of NZ Communications' new network in August. Rebranded 2degrees, the company aims to provide 2G GSM and 3G HSPA technology to 97 percent of New Zealanders and will cut prices to challenge the sector's two dominant players, Vodafone and Telecom New Zealand. "Most markets in the world have at least three network operators and quite a number have more," said 2degrees CEO Mike Reynolds in a statement. "There is no other comparable country that has to suffer such poor value in the mobile market and that can be attributed to a lack of a vibrant competitive environment... Kiwis are tired of being locked into lengthy contracts and being stung with high prices to call friends on competing networks. They want to take back control of how much they spend and who they call."
The launch of the new network was initially expected last October but reportedly suffered delays due to problems with striking co-location deals with its rivals for the installation of network equipment. However, today's statement says the operator "has committed over NZD250 million (US$151 million) and is building a 2G and 3G network that is HSPA+ capable." China's Huawei is the network equipment supplier. The operator has also signed a national roaming agreement with Vodafone for areas where it does not have its own mobile network coverage. New Zealand's mobile market is a duopoly, with market-leader Vodafone controlling 52 percent market share. Total mobile subscriber count in the country stands at 4.8 million, according to Wireless Intelligence. Although 3G WCDMA technology only accounts for 25 percent of connections, recent aggressive expansion plans from Telecom NZ and Vodafone (as well as the new launch of 2degrees) look set to make the country a hotbed of future mobile broadband activity.
Read more.
The launch of the new network was initially expected last October but reportedly suffered delays due to problems with striking co-location deals with its rivals for the installation of network equipment. However, today's statement says the operator "has committed over NZD250 million (US$151 million) and is building a 2G and 3G network that is HSPA+ capable." China's Huawei is the network equipment supplier. The operator has also signed a national roaming agreement with Vodafone for areas where it does not have its own mobile network coverage. New Zealand's mobile market is a duopoly, with market-leader Vodafone controlling 52 percent market share. Total mobile subscriber count in the country stands at 4.8 million, according to Wireless Intelligence. Although 3G WCDMA technology only accounts for 25 percent of connections, recent aggressive expansion plans from Telecom NZ and Vodafone (as well as the new launch of 2degrees) look set to make the country a hotbed of future mobile broadband activity.
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Cisco gives mobile WiMAX backing to Clearwire
US WiMAX operator Clearwire received a major fillip yesterday, announcing that networking giant Cisco is to be its national IP NGN core infrastructure provider and will also supply mobile WiMAX devices targeting consumers and enterprises. Cisco's move marks its first major push into the WiMAX space. Cisco's pledge to develop WiMAX devices is of particular significance to the market, as the world's largest handset vendor, Nokia, recently pulled the plug on its sole WiMAX device. Clearwire currently offers mobile WiMAX services in Baltimore and Portland and is aiming to extend this to more than 80 markets across the US by the end of 2010. Cisco and Clearwire are not strangers, having previously announced plans to work together on development of a WiMAX network in Silicon Valley aimed at encouraging software developers in the region to create new applications for the technology. No mention was made yesterday of specific investment from Cisco in Clearwire, although the WiMAX operator has already received a US$3.2 billion cash injection from Comcast, Intel, Time Warner Cable, Google and Bright House Networks. With the majority of the world's mobile operators and vendors appearing to move towards LTE as their technology of choice for next-generation mobile communications, the support of Cisco could prove timely to the mobile WiMAX community. However, Clearwire remains bullish on its plans to create a national mobile WiMAX network in the US. It intends to spend up to US$1.9 billion on extending its network this year, and has made a number of high-profile executive recruitments. Ex-Vodafone Europe CEO, Bill Morrow, was named new Clearwire CEO in March, whilst the company yesterday announced new appointments in the positions of Chief Commercial Officer, Chief Information Officer, and Chief People Officer. Also yesterday, the company announced its first-quarter 2009 results. Clearwire posted a loss of US$71.1 million in the period, or US$0.38 a share, compared with a loss of US$76.4 million, or US$0.41, from a year ago. Sales rose 21 percent to US$62.1 million, with ARPU coming in at US$39.52. Clearwire hit 500,000 subscribers during the first-quarter.
SingTel hit by strong local currency, eyes Asia deals
Singapore's SingTel has hinted at making further acquisitions in Asia to offset slowing growth in its core markets. "SingTel continues to look for new investments in Asia and emerging adjacent markets and will be financially disciplined in its evaluation of these opportunities," said CEO Chua Sock Koong in a statement today announcing the group's fiscal fourth-quarter earnings (ended 31 March 2009). The group reported a 17 percent decline in net profit to SGD903 million (US$618 million), its biggest decline in two years. The results were negatively impacted by the strength of the Singapore dollar against currencies in other markets where it operates, notably in Australia where SingTel controls the country's second-placed operator, Optus. While revenue in local currency terms increased 8.7 percent in Australia and 13 percent in Singapore, the group's operating revenue in the quarter fell 5.1 percent to SGD3.57 billion as a result of the steep 21 percent decline in the Australian dollar against the Singapore dollar from a year ago.
In its two wholly-owned markets, SingTel added 34,000 mobile customers in the quarter in Singapore, reaching 2.98 million mobile customers in total, while 652,000 were added in Australia (Optus) to reach 7.79 million in total. The star performer in its Regional Mobile Associates unit - which includes its stakes in various other markets - was India's Bharti (in which SingTel owns a 34 percent stake), which added 31.9 million new mobile customers from a year ago and recorded an 18 percent rise in pre-tax ordinary profit in Indian rupee terms and a 1.4 percent rise in Singapore dollar terms to SGD225 million. However, profits at Indonesia's Telkomsel (a 35 percent stake) fell to SGD163 million, a 40.6 million decline in Singapore dollar terms and a 30.6 percent decline in local currency terms. SingTel gave no specific information on its acquisition targets but hinted that market consolidation was expected in Pakistan, where it owns 30 percent of the country's fourth-largest mobile operator, Warid.
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In its two wholly-owned markets, SingTel added 34,000 mobile customers in the quarter in Singapore, reaching 2.98 million mobile customers in total, while 652,000 were added in Australia (Optus) to reach 7.79 million in total. The star performer in its Regional Mobile Associates unit - which includes its stakes in various other markets - was India's Bharti (in which SingTel owns a 34 percent stake), which added 31.9 million new mobile customers from a year ago and recorded an 18 percent rise in pre-tax ordinary profit in Indian rupee terms and a 1.4 percent rise in Singapore dollar terms to SGD225 million. However, profits at Indonesia's Telkomsel (a 35 percent stake) fell to SGD163 million, a 40.6 million decline in Singapore dollar terms and a 30.6 percent decline in local currency terms. SingTel gave no specific information on its acquisition targets but hinted that market consolidation was expected in Pakistan, where it owns 30 percent of the country's fourth-largest mobile operator, Warid.
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