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Tag: mobile-operators

  • AIRCOM Reveals the Economic Reality of LTE Migration

    AIRCOM International, the network planning and optimisation consultancy, revealed the economic reality of LTE migration facing mobile operators around the world – as much as US$1.78 billion for a tier one US operator in the first year.

    As the economic downturn puts pressure on credit markets, and mobile operators attempt to limit significant CAPEX commitments, AIRCOM says they believe that innovative approaches to LTE network roll out, network sharing for example, will be essential in ensuring the profitable delivery of future mobile services.

    LTE investments vary by region, the legacy equipment operators have in place and the spectrum they have available. However, AIRCOM estimates the total CAPEX investment facing a tier one mobile operator in the first year of roll out to be as follows:

    "With an all IP-based network infrastructure, LTE requires completely new thinking compared to previous mobile technologies. Mobile operators around the world face very different challenges in embracing LTE, which will have serious implications on the levels of finance they need to raise," said Margaret Rice-Jones, CEO at AIRCOM International.

    While raising capital in today’s volatile global financial markets continues to prove difficult, operators and supporting infrastructure vendors are struggling to find the necessary credit to support the necessary enhancements to their radio network, backhaul and core network infrastructures.

    Rice-Jones continues: "Very few operators have the available resources or shareholder freedom to meet these costs. This means that innovation within the mobile industry needs to be redefined. It has been traditionally tied to finding the next "killer application". The economic reality of the mobile industry now means that true innovation is finding technology that will enable operators to deliver services more cost effectively."

    AIRCOM believes mobile operators can embrace innovation in a variety of different ways. Most significantly, operators must accept that the techniques used to drive efficiencies and revenues with previous technologies will not be applicable to LTE.

    Mobile operators must therefore find new business models to monetise LTE, compared to subsidising handsets and offering free voice minutes in return for fixed-term contacts.

    The significant investment required for LTE deployment could also see mobile operators globally embracing network sharing as a means of reducing CAPEX and OPEX. Other innovative ways of lowering costs include the automation of key optimisation processes through the roll out of self-organising networks (SON) and the deployment of femtocells within a network to cost-effectively provide macro network offload capabilities as well as indoor coverage solutions.

    "Despite the financial commitment required, there can be no doubting the tremendous potential of LTE technology in taking mobile services to the next level," added Rice-Jones.

    "LTE represents a major evolution and mobile operators must take an intelligent approach to network migration. With careful planning however, LTE will deliver sufficient network capacity and data speeds to further enhance the delivery of high bandwidth services to consumers globally."

  • Apple Expected to Extend iPhone To Multiple Carriers


    Apple will almost certainly break with its exclusive AT&T agreement and allow other carriers to support the iPhone, according to analysts.

    Citigroup’s research firm say that while the arrangement with AT&T has benefitted Apple, the company is likely to open its smartphone to more US operators within the next two years.

    Analyst Richard Gardner cites a number of reasons for this, including the fact Apple is in a strong position and so can have its demands met by carriers.

    These extend to generous data plans, a lack of co-branding and an absence of revenue sharing at the App Store.

    What is also likely to be a major issue for Apple is the potentially dwindling pool of new iPhone users at AT&T.

    It is estimated that rivals Sprint, Verizon and T-Mobile combined could offer a target market of up to 150 million subscribers by 2010 (although only around 20 per cent are likely to become iPhone owners).

    While it has been suggested that AT&T is interested in paying to extend exclusivity, the cost to do so might be prohibitive.

    As Gardner points it would need to be high since the revenues offered by going with multiple carriers are large.

  • Bharti Telesoft Renamed "Comviva" In Market Drive


    Bharti Telesoft has been renamed Comviva Technologies Limited as part of a company-wide re-branding initiative.

    Sunil Bharti Mittal, chairman and managing director of the Bharti Group, said the name change also signals its intent to be the leading integrated VAS solution provider for mobile operators in emerging markets.

    "The company has grown rapidly to achieve stature and scale," he said.

    Manoranjan (Mao) Mohapatra, CEO of Comviva

    "With a strong reputation in the market and a new vision reflecting its ambitions, it is the right time to adopt a new and unique identity."

    Manoranjan (Mao) Mohapatra, CEO of Comviva Technologies Limited, said the need for a powerful brand that resonates with customers globally has grown as the company extended its reach.

    It now has 100 plus customers across over 80 countries.

  • Sagem Embeds GPS Receiver into SIM Cards


    Smartcard vendor, Sagem Orga has formed a partnership with BlueSky Positioning to integrate its A-GPS positioning technology onto conventional SIM cards.

    A GPS receiver and proprietary antenna are integrated into the SIM card, which the companies say then enables mobile operators to deploy applications without the need for software or hardware changes.

    The A-GPS provides accurate positioning information for the phone to emergency services in case of an emergency call as required by E112 and E911 legislation in the EU and the US respectively.

    It can also support generic location-based services such as navigation, "find a place or person" services, location-aware games, and many more.

    Navigations solutions are increasingly availabile on smartphones and mobile phones.

    Sagem Orga and BlueSky Positioning say the two broad technical approaches that can deliver the accuracy required for these services demand either significant investment in networks by the mobile operator or the purchase of new handsets by the end user.

    In a statement, they said the A-GPS SIM would allow mobile operators to significantly increase the cost effectiveness of their services and size of their marketing target when launching new LBS.

    François Blanchard, global account marketing manager at Sagem Orga, said the technology would help the mobile industry overcome the "key stumbling block" to the success of location-based services – affordable, accurate positioning technology.

    "The SIM is entering a new era where it can now be considered as a real service platform and a valuable device; the A-GPS enabled SIM card will reshape the way SIM card are perceived by MNOs and end-users," he said.

  • EU Investigating Mobile Operators Blocking VoIP


    An inquiry has been launched by the European Union into whether blocks on VoIP service by Europe’s mobile phone operators are in breach of competition laws.

    The EU’s antitrust authority has written to every mobile phone operators how they deal with internet based voice calls.

    The deadline for responding to the letter was Wednesday.

    Several phone operators have clauses in their contracts which either block VoIP services over their 3G networks, or exclude VoIP traffic from monthly data bundles included with the tariffs.

    Some operators have also tried to block the VoIP over Wi-Fi capabilities in some handsets.

    Last year, VoIP provider, TruePhone threatened to sue Vodafone after the operator was alleged to be blocking calls over its VoIP network.

  • Vyke Says Mobile Operators Risk Being Leap-frogged in Evolving Market


    VoIP provider, Vyke, has warned that mobile operators are poorly positioned to cope with latest industry developments.

    Aaron Powers, head of business development at Vyke, said the operators are failing to spearhead new innovations – leaving them open to greater than ever competition from a new breed of rivals.

    "Metro WiFi networks are springing up everywhere; there’s one in Singapore – a whole country covered by WiFi," he said.

    "At the same time handsets are advancing to a stage where they are becoming the access point for services installed by the consumer, meaning they don’t need network-provided services anymore, and this goes straight to the core of mobile operators’ revenues.

    "That leaves them poorly positioned in a rapidly evolving market. They need to be the ones directing these changes in a way that benefits them or they’ll get leap-frogged."

    Powers also criticised telecoms operators for opposing the European Commission’s proposal to cap mobile data roaming rates.

    European telecoms commissioner Viviane Reding is set to recommend restrictions on data roaming fees this autumn.

    She has also made clear she intends to impose caps on SMS roaming charges and mobile termination rates, proposals which have drawn widespread criticism from a number of European telcos.

    Citing a recent GSMA report, Powers claimed that the rising uptake of mobile data services was boosted by a 25 per cent fall in roaming rates in the year to April 2008.

    "Actually when you look at it, a small reduction in roaming rates has led to operators making a lot more money off data by volume of usage," he said.

    "Yet all of a sudden there’s uproar when the EU tries to set a cap – mobile providers have taken a head in the sand point of view."